June 24, 2022
Real Estate Investment Trust Unit Issuer:
TOKYU REIT, Inc.
1-12-1, Dogenzaka,
Shibuya-ku, Tokyo, 150-0043, Japan
Kazuyoshi Kashiwazaki
Executive Director
(Securities Code: 8957)
Investment Management Company:
Tokyu Real Estate Investment Management Inc.
Representative:
Kazuyoshi Kashiwazaki
Representative Director & President, Chief Executive Officer
Inquiries:
Yuji Shimizu
General Manager, Finance and IR
TEL: +81-3-5428-5828
Notice Concerning Change of Property Management Company
TOKYU REIT, Inc. ("TOKYU REIT") today announced that its investment management company, Tokyu Real Estate Investment Management Inc. ("Tokyu REIM"), had decided to change the property management company (the "PM Company"). Brief details are as follows.
1. Overview of the Change
TOKYU REIT plans to change the PM Company for the 23 properties in its assets under management on August 1, 2022, as follows.
Property Name | PM Company | ||
Before | After | ||
QFRONT | |||
TOKYU REIT Shibuya Udagawa-cho Square | |||
cocoti | |||
CONZE Ebisu | |||
TOKYU REIT Shimokitazawa Square | |||
TOKYU REIT Jiyugaoka Square | |||
Tokyu Nampeidai-cho Building | |||
Tokyu Sakuragaoka-cho Building | |||
TOKYU REIT Kamata Building | |||
TOKYU REIT Toranomon Building | |||
Tokyu Ikejiri-ohashi Building | Tokyu Property Management | ||
TOKYU REIT Shinjuku Building | Tokyu Corporation | ||
Co., Ltd. | |||
Tokyu Ginza 2-chome Building | |||
TOKYU REIT Shibuya R Building | |||
Tokyu Toranomon Building | |||
TOKYU REIT Shinjuku 2 Building | |||
Tokyu Bancho Building | |||
TOKYU REIT Ebisu Building | |||
Shibuya Dogenzaka Sky Building | |||
TOKYU REIT Shibuya Miyashita Koen Building | |||
Aoyama Oval Building | |||
Meguro Higashiyama Building | |||
STYLIO FIT Musashikosugi |
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- Rationale
TOKYU REIT had received an offer from Tokyu Corporation to which it entrusts the PM business of its assets under management to the effect that it would sequentially transfer the PM business it is entrusted with to Tokyu Property Management Co., Ltd. starting from April 2021 with an aim to improve the quality of services through integrated development of real estate operation business and real estate management business. As a result, with the consent of TOKYU REIT, Tokyu Corporation re-entrusted the PM business to Tokyu Property Management Co., Ltd. on its own responsibility from August 2021.
TOKYU REIT will change the property management company to Tokyu Property Management Co., Ltd. in August 2022 to directly entrust the PM business to the company as it has judged that it is possible for the company to execute business at the same level as Tokyu Corporation, which is the current property management company, based on the actual results of the PM business of Tokyu Property Management Co., Ltd. and the evaluation of its PM business capability by external organizations. - Overview of the New Property Management Company
Tokyu Property Management Co., Ltd.
4-10-2, Yoga, Setagaya-ku, Tokyo
Tsuneo Kihara, Representative Director & President
Operation and management of buildings, structures and attached facilities
Sale, mediation and consulting of products related to energy saving and environmental measures, and electric appliances
Contracting of design, construction and supervision of construction and equipment installation work
Operation, management, transaction, leasing, brokerage and mediation of land and buildings and assumption of entrustment thereof
¥100 million (as of March 31, 2022)
October 11, 1961
Relationship between the Investment Corporation or its Investment Management Company and the Company
The Company is a wholly owned subsidiary of Tokyu Corporation, the parent company of Capital Relationship Tokyu REIM. Tokyu Corporation holds 5.01% of the total number of investment units of
TOKYU REIT issued and outstanding as of January 31, 2022.
Personnel | There is no personnel relationship to state between TOKYU REIT or its investment | |
Relationship | management company and the Company. | |
The Company falls under the category of subcontractor of PM business and maintenance | ||
Business | business of TOKYU REIT's assets under management and the party to which repair work | |
Relationship | is outsourced. It also falls under the category of lessee of Setagaya Business Square which | |
was disposed by TOKYU REIT on December 1, 2021. | ||
Status of | Tokyu Corporation, the parent company of the Company, is the parent company of Tokyu | |
Classification | REIM, and the Company falls under the category of related party of TOKYU REIT and | |
as Related Party | Tokyu REIM. |
4. Transactions with Interested Persons, Etc.
Tokyu Property Management Co., Ltd. falls under the category of Related Party (Note), to which the self-imposed rules "Rules on Related-Party Transactions" of Tokyu REIM are applied, upon implementing the procedures in accordance with the Rules on Related-Party Transactions, TOKYU REIT shall enter into a property management agreement. As for the property management fees, a written opinion has been acquired from Urban Research Institute Corporation that confirms that the compensation is in line with the general level of fees paid by other investment corporations, etc., listed on the Tokyo Stock Exchange.
With respect to the transaction with a related party, etc., outlined above, multiple checks have been conducted based on the Rules on Related-Party Transactions, and based on the above results, they have been approved by TOKYU REIT's board of directors
(Note) Related Party includes Interested Persons, etc., as defined in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations, as well as any entity that falls under the following (1) to (3):
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-
Tokyu Corporation and its subsidiaries (any entity that falls under the following); ・ Tokyu Corporation;
・ A consolidated subsidiary of Tokyu Corporation;
- A tokutei mokuteki kaisha (TMK) or special purpose entity (SPE) that was established based on the intention of Tokyu Corporation or a consolidated subsidiary of Tokyu Corporation and where the share of investment by silent partnership or other investment shares in that entity by the respective company exceeds 50%;
- Affiliates within the scope of consolidation of Tokyu Corporation;
-
Tokyu Fudosan Holdings Corporation and its subsidiaries (any entity that falls under the following); ・ Tokyu Fudosan Holdings Corporation ("Tokyu Fudosan Holdings");
・ A consolidated subsidiary of Tokyu Fudosan Holdings;
- A tokutei mokuteki kaisha (TMK) or special purpose company (SPC) that was established based on the intention of Tokyu Fudosan Holdings or a consolidated subsidiary of Tokyu Fudosan Holdings and where the share of investment by silent partnership or other investment shares in that entity by the respective company exceeds 50%.
5. Outlook
The above change in PM Company will have a minimal effect on the operating conditions for the fiscal period ending January 2023, and thus there will be no change to the forecasts.
This notice may contain forward-looking statements, such as current plans, strategies, and future performance. These forward-looking statements are based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materially from those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, fluctuations of the real estate market in Japan, general conditions of the Japanese economy, competitive pressure, and relevant regulations.
This notice is a translation of the original document in Japanese and is prepared solely for the convenience of non-Japanese speakers. There is no assurance as to the accuracy of the English translation. The original Japanese notice shall prevail in the event of any discrepancies between the translation and the Japanese original.
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Tokyu REIT Inc. published this content on 24 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2022 06:25:04 UTC.