Trinity Investments' Japanese Asset Management Arm Takes On Local Partners

Tuesday, July 12, 2005

Zecs, Kyokuto Securities To Get Into Real Estate Asset Mgt

TOKYO (Nikkei)--Real estate firm Zecs Co. (8913) and Kyokuto Securities Co. (8706) plan to enter the real estate asset management business.
The firms intend to take a stake in an asset management subsidiary of U.S. real estate investment fund Trinity Investment Trust LLC. The partners will develop a business for researching properties for investment and managing real estate investment trusts (REITs) and other such investments, hoping to list it in the future.
Zecs and Kyokuto will invest 400 million yen in Tozai Asset Management Co. through the purchase of new shares. Following the cash injection, Zecs will hold a 30% stake, Kyokuto will have a 10% interest, and Trinity's share will be diluted to 51% from more than 80%.
The companies will dispatch one executive each to Tozai Asset. Besides REITs, the asset management firm will also be involved in the formation of privately held real estate funds. Tozai Asset's staff will be increased from the current 15 to 25 this year.
Zecs is a developer of health care facilities for the elderly and housing with nursing care services.

(The Nikkei Financial Daily Tuesday edition)

FYI:
Trinity had previously formed an asset management subsidiary called Tozai Asset Management, and owns 44% of aTokyo-listeed REIT, United Urban Investment Corporation.
http://www.trinityinvestments.com/japan.html