Fukuoka City Gets High Marks for Urban Development Posted On 03-09-2019

Fukuoka Asian Urban Research Center released a report on urban competitiveness of eight cities around the world, and Fukuoka was named as a city with the most progress in ‘urban development.’ The study examined ‘growth’ and ‘quality of life’ in the cities of Barcelona, Seattle, Vancouver, Melbourne, Munich, Stockholm, Helsinki, Busan, and Fukuoka using 62 criteria. Compared to four years ago, Fukuoka saw a leap in its scores for museums, theaters and sightseeing resources. The organization analyses commented that further improvements in airport and port facilities would further increase the international competitiveness of the city. Source: Fukuoka Asian Urban Research Center

Global funds set sights on Japan property market Posted On 01-09-2019

TOKYO -- Overseas investment firms are diving into the Japanese real estate market, with major British and American funds joining the fray as ultralow borrowing costs offer enticing returns.

U.K. asset manager Aberdeen Standard Investments is looking to develop housing for seniors, while U.S. private equity firm KKR plans to combine private equity and real estate investments.

The influx of deep-pocketed foreign players, enticed by the Bank of Japan's ultralow interest rates that allow for fundraising on the cheap, indicates that the property boom here is unlikely to lose steam anytime soon.

ASI, mainly known as an asset manager, also holds a global real estate portfolio worth roughly $60 billion, centering on Europe. Having been cleared to set up a real estate investment fund in Japan, it plans to work with the Japan team of Orion Partners, a Hong Kong-based firm whose purchase it announced in February.

As a first step, the British firm plans as early as this year to start investing in housing for the elderly -- a field expected to see stable demand as Japan's population ages. Options include acquiring existing properties and developing new ones. Sumitomo Mitsui Trust Bank announced in June that it will team up with ASI to establish a rental housing investment fund. ASI expects to manage a portfolio worth as much as 100 billion yen ($940 million).

KKR, meanwhile, is recruiting specialists from major real estate investment funds ahead of its full plunge into the Japanese property market. It has dabbled in real estate via sales of the idle properties of companies it has invested in. Having its own real estate department will enable KKR to redevelop properties and sell them at higher prices.

"We aim to tap our wealth of knowledge in corporate investment in order to invest from a unique perspective," said KKR investment representative Daisuke Hiramoto.

In recent years, KKR has made a number of major real estate investments in such Asian markets as Hong Kong and South Korea. In Japan, on top of standard targets like office and residential buildings, it will also focus on investing in major companies' real estate arms.

Major property deals are taking place across the globe, with the total value of deals rising 4% from the previous quarter to $174 billion worldwide for April to June, according to real estate services firm JLL. As the U.S.-China trade war clouds outlooks, real estate has been drawing more attention for stable and relatively high yields.

Japan's property market is drawing particular interest because of the BOJ's negative-rate policy. Even if investment returns decline, investors can generate profit if they can procure funds at low costs. Prime Tokyo office buildings offer a 2.9 percentage point yield spread -- the investment yield minus long-term interest rates -- compared with the mid-2 range in London and 1-something in New York, according to JLL.

A wave of property sales by Japanese companies has also drawn overseas investment firms' attention. In March, Takeda Pharmaceutical sold 21 assets including its Osaka headquarters for about 50 billion yen to U.S. real estate investment firm GreenOak.

In July, Japan Tobacco said it would sell its headquarters in Tokyo's Minato Ward. The property is expected to fetch more than 100 billion yen, and a number of investment funds have expressed interest.

Norway's Government Pension Fund Global, one of the world's largest sovereign wealth funds, purchased five Tokyo commercial properties in late 2017. After a lull in 2018, foreign funds' Japan purchases have resurged this year, with Blackstone acquiring 100 billion yen of logistics facilities this July. (Source from Nikkei Asian Reivew)

https://asia.nikkei.com/Business/Markets/Property/Global-funds-set-sights-on-Japan-property-market

Fukuoka City Sets New Record For Tax Collection Posted On 30-08-2019

Fukuoka City expects record high tax revenues for fiscal year 2018. The estimated tax income of the city exceeded ¥332 billion, up 13.4% from the year before. The significant part of the raise attributes to an increased number of population, while good business performances of local companies were seen as another key factor. The city’s tax income has broken records for six consecutive years. Source: The Sankei News, 7/31/2019

https://www.fukuoka-now.com/en/news/fukuoka-city-sets-new-record-for-tax-collection/

Nagasaki’s Goto City Tagged For Offshore wind plant Posted On 30-08-2019

On July 30, the Ministry of Economy, Trade, and Industry announced four locations for consideration of future offshore wind plants and Goto City in Nagasaki Prefecture was included. Geological research will begin for each location, and if the country and the local organizations such as fishery associations reach an agreement, the sites will be officially appointed as a “promotional district.” The ministry aims to decide on those districts by the end of the fiscal year of 2019 and seek bids from construction companies. Souce: Yomiuri Shimbun, 7/30/2019

https://www.fukuoka-now.com/en/news/nagasakis-goto-city-tagged-for-offshore-wind-plant/

Restaurant Last-minute Cancellation Losses to be Minimized with App from Fukuoka Posted On 30-08-2019

A Fukuoka-based startup, Kuki LLC, will release a smartphone application to save restaurants from the losses caused by last-minute cancellations. Using the app, Dotacampaign, restaurants can post information such as seat vacancies, available food, and discounted prices in the event of last-minute cancellations. Customers can then call the restaurant and make a booking. According to a report by the Ministry of Economy, Trade, and Industry, losses of no-shows and last-minute cancellations at restaurant business amasses to ¥1.6 trillion annually, and Kuki aims to minimize such damages. The launch of the application is scheduled in September. Source: Dotacampaign

https://www.fukuoka-now.com/en/news/restaurant-last-minute-cancellation-losses-to-be-minimized-with-app-from-fukuoka/