1. Home
  2. Press release
Sep 13, 2017 11:56 JST

Source: Mitsubishi Corporation

Mitsubishi Corporation Takes on Brand New Venture Renovating and Developing Large-Scale Industrial Facilities
- Joins up with subsidiary to support companies' CRE strategies -

TOKYO, Sep 13, 2017 - (JCN Newswire) - Mitsubishi Corporation (MC) and its wholly owned subsidiary Mitsubishi Corporation Urban Development (MCUD) are pleased to announce their joint entry into a new business segment focused on the renovation and development of large-scale industrial facilities for leasing. MCUD's recent acquisition and development of two facilities located in Ichikawa City in Chiba Prefecture, Japan signaled their first move. The facilities were primarily used as temperature controlled warehouses and processing centers which, upon renovation, are leased to companies engaged in operations that need such facilities. The total cost for developing the two facilities (including investments tenants made in equipment and internal structures as required for their operations) is around 10 billion yen. Projects involving the development of large-scale industrial facilities for specific purposes such as temperature controlled warehouses and processing centers is a first for MC and also a unique business proposition within the real estate industry.

Project 1 (Leasing Continued by Original Tenant)
 

Project 2 (Renovation for New Tenant)
 

Outline of the Renovated Facilities
 


MCUD was able to acquire the first facility, an old industrial complex that was constructed more than 25 years ago, although the owner at the time was initially reluctant, and managed to upgrade the equipment and renovate the complex without interrupting the tenant's operations, while ultimately facilitating improved operational efficiency and reducing operational costs. The second facility was only over 15 years old, but came with less flexibility in term of layout. However, MCUD was able to successfully attract a new tenant by making major interior and layout changes that would cater adequately to the tenant's needs after renovation.

Operational facilities run by companies from a range of industries currently account for around 430 trillion yen, or 20%, of Japan's 2.52 quadrillion yen domestic real estate market(1). However, an increasing number of these companies are turning to a corporate real estate (CRE) management strategy due to changes in the business environment such as the spread of ROA/ROE based management, and basic restructuring needs caused by industry consolidation and streamlining of operations.

MC and MCUD are seeking to actively support the CRE strategies of companies who need these kinds of facilities for their operations with the aim of providing optimal solutions to the challenges they faced in the owning or leasing of real estate. MC is in a particularly good position to provide this kind of support by drawing on its broad networks across a variety of industries, project management skills, expertise in construction and engineering, and real estate consultation capabilities. MC has in the past completed real estate development projects for a wide range of assets including retail facilities, logistics facilities, and condominiums. MC intends to further expand its real estate business by providing support for the CRE strategies of other companies as one of its core businesses, while leveraging its strengths as a global integrated business enterprise.

(1) Referred by "Action Plans for the Real Estate Investment's Market Growth" by MLIT June 21, 2017

Outline of the Renovated Facilities
http://www.acnnewswire.com/topimg/Low_MitsubishiRenovatedFacilities.jpg

Scheme Outline

http://www.acnnewswire.com/topimg/Low_Mitsubishi91317Project1.jpg
Project 1 (Leasing Continued by Original Tenant)

http://www.acnnewswire.com/topimg/Low_Mitsubishi91317Project2.jpg
Project 2 (Renovation for New Tenant)

Contact:
Mitsubishi Corporation
Telephone: +81 3 3210 2171 
Facsimile: +81 3 5252 7705
Source: Mitsubishi Corporation
Sectors: Engineering

Copyright ©2024 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release

Mitsubishi Corporation Announces Participation in a DAC Project in Louisiana, USA
April 16 2024 13:36 JST
 
Mitsubishi Corporation Announces Completion of Capital Raise by Nexamp
April 11 2024 12:07 JST
 
Mitsubishi Corporation: Sale of BMA Coal Assets in Queensland Completed
April 03 2024 18:05 JST
 
Fujitsu signs MoU with Mitsubishi UFJ Financial Group, Inc. to drive nature positive actions
April 01 2024 15:17 JST
 
Mitsubishi Corporation and 7 large international companies join forces to sponsor the creation of a global e-NG coalition
March 19 2024 15:40 JST
 
Nissan and Mitsubishi Corporation agree to explore new business in next-generation-mobility and energy-related services utilizing EVs
March 18 2024 16:29 JST
 
Mitsubishi Corp to invest in TIER IV: Transforming regional mobility with autonomous driving
March 15 2024 11:36 JST
 
Mitsubishi Corporation: Participation in PAK Lithium Project in Canada
March 05 2024 15:57 JST
 
Mitsubishi Corporation Expands its Data Center Presence with Entry into US
March 04 2024 14:27 JST
 
Mitsubishi Corporation's Sale of Exportadora de Sal, S.A. de C.V., a Salt Production Company in Mexico
February 26 2024 13:29 JST
 
More Press release >>

Latest Press Release


Fujitsu SX Survey reveals key success factors for sustainability
Apr 23, 2024 10:25 JST

Fujitsu and METRON collaborate to drive ESG success: slashing energy costs, boosting productivity with new manufacturing industry solutions
Apr 22, 2024 16:09 JST

NEC Strengthens Commitment to Space Industry with Investment in Seraphim Space Venture Fund II
Apr 22, 2024 15:09 JST

Soft Space Launches the First and Only JCB Payment Gateway in Malaysia
Apr 22, 2024 15:00 JST

TOYOTA GAZOO Racing takes a one-two in Croatian thriller
Apr 22, 2024 10:47 JST

First-ever Mazda CX-80 Crossover SUV Unveiled in Europe
Apr 19, 2024 13:50 JST

Fujitsu develops technology to convert corporate digital identity credentials, enabling participation of non-European companies in European data spaces
Apr 19, 2024 10:17 JST

Mitsubishi Heavy Industries and NGK to Jointly Develop Hydrogen Purification System from Ammonia Cracking Gas
Apr 18, 2024 17:01 JST

Toyota Launches All-New Land Cruiser "250" Series in Japan
Apr 18, 2024 13:39 JST

Fujitsu and Oracle collaborate to deliver sovereign cloud and AI capabilities in Japan
Apr 18, 2024 11:14 JST

Eisai: Research on Treatments for Alzheimer's Disease Based on Its Pathological Mechanisms Recieves Award for Science and Technology (Research Category)
Apr 18, 2024 10:53 JST

All-New Triton Confirmed as First Double-Cab Pickup Truck to Achieve 2024 Five-Star ANCAP Safety Rating
Apr 18, 2024 09:22 JST

Eisai's Antiepileptic Drug Fycompa Injection Formulation Launched In Japan
Apr 17, 2024 16:17 JST

Honda Unveils Next-generation EV Series for China
Apr 17, 2024 12:15 JST

Lexus presents Time at the 2024 Milan Design Week
Apr 16, 2024 18:49 JST

Mitsubishi Corporation Announces Participation in a DAC Project in Louisiana, USA
Apr 16, 2024 14:36 JST

New circuit challenge for TOYOTA GAZOO Racing
Apr 15, 2024 17:21 JST

TOYOTA GAZOO Racing back on asphalt for Croatian challenge
Apr 12, 2024 19:36 JST

Heidelberg Materials North America Announces Latest Milestone in Edmonton CCUS Project
Apr 12, 2024 14:39 JST

MHIAEL Completes Expansion of the its Nagasaki Plant for Manufacture of Aero Engine Combustors
Apr 11, 2024 18:08 JST
 More Latest Release >>