Mizuho's Real Estate Arm To Set Up REIT with Sekisui, Morgan Stanley

July 29, 2005
Kowa Real Estate To Enter REIT Ops With Sekisui, Others

TOKYO (Nikkei)--Kowa Real Estate Co. said Thursday that it will jointly enter real estate investment trust (REIT) operations with Dai-ichi Mutual Life Insurance Co., Sekisui House Ltd. and Morgan Stanley Properties Japan KK. Kowa Real Estate is an affiliate of the Mizuho Financial Group Inc.
The firms aim to acquire office buildings and other properties through a joint asset management company and list an investment corporation sometime in the first half of fiscal 2006.
Each partner is to take a stake in a Kowa Real Estate asset management subsidiary by purchasing a private placement of shares on Friday. The partners plan to contribute real estate that they own in addition to acquiring properties from others.
When the investment corporation goes public, it plans to own 10 or more buildings with total assets of 100 billion yen. This is to be expanded to 300 billion yen eventually.
After the investment corporation boosts its capital, Kowa Real Estate expects to hold a 40% stake, while Dai-ichi Mutual will own 20% interest, Sekisui House a 15% stake and the Morgan Stanley unit will have a 5% share. Interests of 5% are to be held by four others.

(The Nihon Keizai Shimbun Friday morning edition)

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