Profile of Sponsor: Profile of Marimo
- Marimo is a company that started as a design office. Marimo has been operating mainly in major regional cities across Japan since its commencement of marketing of independently developed for-sale condominiums in 1990. Marimo has achieved surplus for 45 consecutive fiscal years since its establishment. In addition, on top of the real estate related businesses in Japan with real estate development and for-sale condominium businesses at the core, Marimo has recently also been proactively expanding its operations overseas.
Profile of Marimo Co., Ltd.
|Company name||Marimo Co., Ltd.|
|Representative||Makoto Fukagawa, President|
|Head office location||1-17-23 Kogokita, Nishi-ku, Hiroshima-shi, Hiroshima|
|Lines of business (Note)||Planning, development, design, supervision and marketing of for-sale residential properties, real estate securitization business, and overseas condominium sales business|
|Link to website||http://www.marimo-ai.co.jp/english/|
|(Note)||Including subsidiaries’ lines of business and area coverage.|
Abundant track record in real estate development in regional areas
|(Note 1)||Marimo’s track record is presented for reference purposes only and there are no plans for acquisition of the properties above by marimo REIT. In addition, the for-sale condominiums are also not intended for future acquisition by marimo REIT.|
|(Note 2)||Even when properties are developed through joint investment with third parties, all buildings and all units are counted in the track record in for-sale condominium development.|
|(Note 3)||The track record in urban redevelopment of 11 buildings or 795 units is counted in the track record in for-sale condominium development of 356 buildings or 22,734 units.|
Marimo’s Regional Revitalization Initiatives—Promotion of Urban Redevelopment Business—
marimo REIT believes that Marimo’s urban redevelopment business can add vitality to cities and regions. marimo REIT believes that the synergistic effects of Marimo and marimo REIT from Marimo promoting sale and marketing of the residential portions of redevelopment properties and marimo REIT holding the retail, residential, office, hotel and other portions developed in Marimo’s urban redevelopment business can promote urban redevelopment in regional cities and even play a role in compact city development (Note 1).
Conceptual image of urban redevelopment (Note 2)
|(Note 1)||“Compact city development” refers to the development of towns with high population density by concentrating living and various functions in city centers.|
|(Note 2)||This is a conceptual image of the case where Marimo engages in an urban redevelopment project and marimo REIT acquires the property developed in such project. Accordingly, actual cases may differ. There is no guarantee that acquisition of the retail and residential portions will be made by marimo REIT and there may be cases where urban redevelopment takes place in a form different from the above.|
|(Note 3)||There are no plans for acquisition of any of the properties by marimo REIT.|
Marimo’s Income-Producing Real Estate Business Track Record
Marimo engages in development, operation and value enhancement of income-producing real estate not limited to housing but matching needs that vary by region and asset type by utilizing the experience and array of expertise accumulated in the for-sale condominium business over the years. A core business of this is the “ArtizA” series of rental condominiums, some of which was acquired by marimo REIT upon its IPO.
Pursuit of Enhancement of Property Value
As part of the real estate securitization business (Note 1), Marimo engages in the business of enhancing the intrinsic value of real estate through renovation according to the area characteristics, needs, etc. for real estate that have deteriorated asset value. marimo REIT pursues enhancement of property value by utilizing the expertise in value enhancement that Marimo has accumulated in such business.
|(Note 1)||“Real estate securitization business” refers to the business of purchasing used condominium, office and retail properties that have deteriorated asset value and renovating to enhance the value of the real estate according to the area characteristics and needs and thereby enhancing the intrinsic value of the real estate.|
|(Note 2)||There are no plans for acquisition by marimo REIT.|
Marimo’s Comprehensive Strengths
Marimo has accumulated “expertise in information sourcing and analysis,” “expertise in real estate development” and “expertise in value enhancement” concerning the real estate market in regional areas through abundant track record in the real estate development business and real estate securitization business, boosting Marimo’s comprehensive strengths.
|Expertise in information sourcing and analysis|
|Marimo sources a wide variety of real estate information gathered from all over Japan, which exceeds 10,000 cases each year, and analyzes the competitiveness and potential of investment real estate based on a consideration of various factors, such as the deep insight of well-experienced members familiar with real estate investment and management operations in regional areas, evaluation of the location, survey of the demand-supply balance, and building specifications, structure and facilities/equipment.|
|Expertise in real estate development|
|Planning strengths||In regional areas, where other companies in the same industry find it difficult to envision doing business, Marimo conducts various planning that would draw out the potential of real estate by maximizing the real estate’s potential value with the wide variety of real estate information gathered from all over Japan, leveraging experience accumulated through its operations over the years.|
|Marimo conducts attracting of tenants according to the area and property characteristics of the target real estate based on relationships with local real estate companies all over Japan built through its operations over the years, enabling it to approach tenants of a wide variety of industries for leasing.|
|Development strengths||Marimo started off as a design company. Based on plans prepared after frequent discussion within the company, Marimo completes projects following a series of scrutiny of plans, review of costs, etc. and under thorough supervision.|
|Expertise in value enhancement|
|Marimo draws out the potential of the property by realizing real estate value enhancement through such means as planning and executing renovation work (exclusive area portions and common area portions) according to the characteristics of the region, location and real estate that leads to rise in occupancy rate and rise in rent, which was accumulated through track record in condominium design across Japan.|
Case example of regional revitalization demonstrating Marimo’s comprehensive strengths: Polestar Matsuyama Forest City (Note)
|Project summary||Winning the bid for the former site of a JT plant in Matsuyama City, Ehime Prefecture of approximately 10,000 tsubos, Marimo executed a plan for development as a mixed-use special zone comprising not only its independently developed for-sale condominium but also construction by each company that took over land from Marimo totally produced by Marimo as an office and medical mixed-use special zone.|
|Constructed a small town pursuing convenience in terms of daily living along with apartments mainly targeting family households given the convenient access and location adjacent to an elementary school. Realized also “creation of employment” by enriching retail and medical functions that tend to be lacking in urban areas and attracting an office building.|
|(Note)||There are no plans for acquisition by marimo REIT.|