Editors' Note
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06.27.2011
'Nicofarre,' revival of legendary disco club in Roppongi
Niwango, the company that operates the internet video sharing website Nico Nico Douga, announced that it will open Nicofarre, a disco club, in Roppongi of Minato-ku, Tokyo. The name seemed to ring a bell, and I was reminded of Velfarre, the notorious large-scale disco club that used to be located in Roppongi. Nicofarre will in fact occupy the first basement floor of the building constructed on the former site of Velfarre.Velfarre was a clubbing destination representative of the late 90s and served as a driving force for the “Para Para” dance boom in which clubbers would dance in eurobeat rhythms with synchronized body motions. The legendary disco closed its doors in 2007 and RREEF of the Deutsche Bank Group and others subsequently developed a retail building on the site.Niwango opened a Noco Nico Douga live studio at Nico Nico Honsha, the former site of Harajuku Ruido, a live music venue which was central to the band boom in the 80s, and now they will open Nicofarre in place of Velfarre. It will be interesting to see what kind of nostalgic place the company will choose for their next new culture spot.(Yoshimaro Tamura)Posted at 05:59 -
04.06.2011
Real estate, Twitter, Ustream
To be honest, I had been feeling somewhat fed up with the recent praise of social media by the general media. Though I had registered for Twitter due to the urging of my friends, I hadn’t “tweeted” on it much. The way in which Facebook was being linked to the revolution in Egypt was making me uncomfortable as well. This cynicism may be the result of witnessing the waning of many booms in my ten years as an IT journalist.Nevertheless, while covering MIPIM exhibition held in early March in Cannes, France, I couldn’t ignore the power of these types of media. The MIPIM organizer had begun to provide live feeds using Twitter and iPhone app this year, which was quite helpful to me as I had to decide on which of the 50 plus conferences and countless exhibition booths to cover while I was at the venue. Also provided was MIPIM’s own social networking service, MIPIM World, which allowed the nearly 20,000 participants to send messages to each other. I made use of this to communicate with my interviewees.But what I felt most invaluable was the realistic tweets from my friend’s Twitter accounts following the earthquake on March 11, as well as retweets on the tsunami damage and situation at the nuclear power plant. The shocking news came in the morning when I had finally sent a draft to our editorial team after working all night. Phone service in Tokyo was interrupted, but I managed to receive word that my family was safe via Skype, which was the only functioning service. Even as cancellations of flights back to Japan abounded, it was Air France’s Twitter account that notified me that my flight would depart as scheduled. Of course this is nothing compared to the pain endured by those who were affected by the damage, but for my lonely one-man trip, all this information was a great support.One hour before the return trip home, I watched the explosion of Fukushima Dai-ichi Nuclear Power Plant on a NHK news flash that was temporarily being relayed on internet channel provider Ustream. I felt a difficult-to-express mix of agitation, anxiety and pity swelling up inside of me.(Jun Homma)Posted at 02:59 -
02.15.2011
New tenants to former Harajuku GAP site
Last November, Tokyu Land began construction of the Omotesando Project (tentative name) at the former site of the apparel brand GAP’s Harajuku store. Among parties concerned with commercial facilities, many rumors spread concerning who will move in as tenants. This was quite interesting.The former site of the GAP store is located at the corner of Omotesando Avenue and Meiji-dori Street, where many fashion brands are competing each other to attract young people.When the 2,000 m2 site was a vacant lot around June of 2010, rumors spread that Shibuya 109, which is a fashion building operated by a subsidiary of Tokyu Corporation would expand its business and that its Harajuku-version under the name of “Harajuku 109” was to be born. Shibuya 109 is a fashion building which targets women in their late teens to early twenties, and it boasts overwhelming popularity among young women who hang around Shibuya known as “gyaru” (gals). If this had become a reality, Harajuku and Omotesando, which have welcomed various unique fashion styles, would have been enveloped in an extremely chaotic atmosphere by the birth of a “sacred spot” for such gyaru.After Tokyu Land began construction of the facility, rumors in November 2010 were that the flagship store of Tommy Hilfiger, the surf brand of Abercrombie & Fitch named Hollister, and American Eagle Outfitters would move in as tenants. Since the Omotesando store of Ralph Lauren is located close by, it raised my hopes that an American casual fashion village would be created in Omotesando.At around the same time this rumor came out, Tokyu Land announced that the flagship store of Tommy Hilfiger will move in. My expectations for an American casual fashion village further increased. However, the editor in chief told me that there was a rumor that a certain luxury brand will move into the former site of the GAP store.Certainly, the place where the former site of the GAP store is located is a spot where Meiji-dori Street, which is lined with casual fashion stores such as H&M and Forever 21, and Omotesando Avenue, which is crowded with luxury brands such as Chanel and Dolce & Gabbana, intersect. It did cross my mind that a mixing of casual brands with high-class brands was plausible. Before I knew it, I had picked up the phone and called the Japanese arm of that brand. However, they gave no comment.In the end, the two American casual stores of American Eagle Outfitters and Tommy Hilfiger along with the flagship store of Baroque Japan Limited, which has brands that match the tastes of Shibuya 109, were decided on as the tenants and no more rumors have been heard.Completion of the facility is scheduled for March 2012.(Yoshimaro Tamura)
[Related articles]
- Plans for former Omotesando GAP site revealed- Tokyu Land to develop retail building on former Harajuku GAP site
Posted at 03:30 -
01.19.2011
Overseas REIT's based on Islamic law increase
Although it now seems to have dropped off the radar, there was once a time when books on Shariah law, the Islamic legal system, were being published one after another in the context of rising crude oil prices. Lately in Asia and the Middle East, there have been continuous efforts to establish Shariah-based REITs.Dubai Islamic Bank recently revealed that it will launch Emirates REIT in cooperation with a French firm. It will be the first REIT based in the United Arab Emirates. While the “Dubai shock” is still fresh in the public’s memory, this project holds implications of stimulating the stagnant real estate market of the area.Meanwhile, there are already several Shariah-based REITs operating in Malaysia. In Singapore, a Shariah-based REIT with the long title of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust was listed this past November. It invests in Singapore’s R&D centers and logistics facilities and says that at least 95% of its revenues will be secured from Shariah-compliant tenants.What exactly is a Shariah-based firm? Since 2007, Standard & Poor’s and the Tokyo Stock Exchange have been providing the S&P/TOPIX 150 Shariah Index, which comprises only of Shariah-compliant firms targeting investors in Islamic countries. According to materials on the Index, the types of businesses that are in conflict with Shariah are those related to advertising, media, alcohol, finance, gambling, pork, pornography, tobacco and the exchange of gold and silver.Hence Nikkei BP, which is a publishing media, would not be able to move into properties owned by the above-mentioned REITs. Although this is by no means an impediment, I am curious as to why our business is not considered to be compatible with Islamic law.(Kazuhiro Mikami)Posted at 04:24 -
12.22.2010
The AKB48 phenomenon
“There’s this thing called the AKB48 phenomenon,” so an acquaintance tells me. AKB48 is a girl idol group that is highly popular in Japan right now. The group is active as a big family of several teams of about 15 members each. This is said to represent a phenomenon in the real estate market in which a decrease in the number of large properties for sale is causing popularity to flood to the sale of properties in bulk at a high total amount. Quote: “Even if the properties lack outstanding attractiveness individually, it is extremely attractive when seen as a bunch.” I guess it makes sense.The real estate market this year was so stagnant that it created such talk. Although the worst is behind, the market still remains in a deep valley or an eerie lull. In other words, low transaction volume has been an ongoing state of the market all this time. Transactions of non-performing loans, etc. seem to be gaining momentum, but it takes time for them to come to the surface.In terms of real property alone, transactions of properties worth around 1 billion yen [$12 million] or less in total and condominium sites are brisk. However, even if large properties or properties that are attractive to investors come on the market, the deals are hardly ever closed because there are large discrepancies between sellers’ asking price and buyers’ offering price.The market at present can be described to be of the “blind date.” Whether it is because both sides are hesitant of the other or other reasons, their eyes do not meet (the seller and buyer do not see eye to eye on price) and so nothing develops. I hope the market next year will be a vibrant one in which great romances develop.(Taro Tokunaga)Posted at 02:08 -
12.08.2010
Recent trades demonstrate the health of foreign firms
There is something that I realized while editing our articles กพ much of the major transactions involve foreign capital.To give a few examples, RREEF of Deutsche Bank Group purchased Uniqlo’s flagship store in Osaka for 19.5 billion yen [$230 million], South Korean institutional investors purchased office buildings in Koishikawa, Tokyo and a retail building in Yokohama for 10 billion yen [$120 million], and though of a smaller scale, HKR International purchased a luxury rental apartment building in Roppongi for 3.45 billion yen [$40 million]. The purchase of a high-rise condominium sold by BLife, a REIT of the Daiwa House Industry Group, is also supposedly by foreign capital.As for transactions of undisclosed prices, Elliot Management of the U.S. bought buildings occupied by brand shops in Omotesando and Shinjuku, and as was revealed, the Republic of Peru acquired land in Hiroo. It will be interesting to see how much will be purchased with the appreciation of the yen.(Yoshimaro Tamura)
[Related articles]
- RREEF purchases Uniqlo Osaka flagship from AIG- South Korean investors acquires buildings in Tokyo, Yokohama
- Ken Corporation sells Roppongi apartment to Hong Kong company
- BLife sells ownership in Mita condo for Y11.7bn
- Elliott purchases Aoyama, Shinjuku stores
- Peru acquires Hiroo land to construct embassy
Posted at 02:56 -
11.24.2010
Barbell strategy is the only option for Japan, China
Although the relationship between the Japanese and Chinese governments is tense due to discussions over a rock in the ocean, the economic inter-dependency continues to grow day by day. China, which surpassed the U.S. as Japan’s largest export partner in 2009, accounts for 18.9% of Japan’s total exports. Likewise, Japan is China’s largest source of imports. It is also China’s second largest export destination only after the U.S. (according to JETRO data). Considerations of geological and historical relations included, there is no doubt that the two share a partnership difficult to separate.This relationship is ideal for both sides from an investment strategy perspective. China as a nation climbing up to the status of economic giant is a “sexy” investment target, but is precarious in terms of stability. Japan on the other hand is a dull market in terms of GDP growth rate, but its economy and political system are stable - whoever takes the post of Prime Minister - and it holds a far greater stock of real estate than China.This is the perfect combination for today’s investment industry, where a barbell strategy is popular. Barbells used in weightlifting are thick at both ends and thin in the middle. In today’s world following the financial crisis, where the phrase “middle risk, middle return” is no longer trusted, a diversified investment strategy that combines “high risk and high return financial products” with “low risk and low return financial products” in the shape of a barbell, has become mainstream.That the barbell strategy between Japan and China is supported by investors has been proven by the listing of Global Logistic Properties in October. The assets of the company, created from a spin-off of ProLogis, are a combination of Japanese logistics facilities which are currently stable, and Chinese development projects. Moreover, Secured Capital Japan announced it will merge with Hong Kong’s Pacific Alliance Group and establish an investment platform that will reach across Japan and China. This does not make sense at first to us Japanese, who are not always aware of our being Asian, but this is compatible with the tendency of the U.S. and European investment industry to allocate assets in an Asia Pacific unit.(Jun Homma)
[Related articles]
- Logistics facility manager GLP to raise Y240bn with listing- Secured Capital and Pacific Alliance to form business merger
Posted at 05:55 -
11.05.2010
In Harajuku, video sharing revives legendary music venue
Niwango, the company that operates the internet video sharing website Nico Nico Douga, has announced that Nico Nico Honsha, a multi-purpose facility featuring music studios and shops, is due to open in Harajuku in December 2010. A familiar looking sloped path can be seen on the photo in the press release. Isn’t this the very spot owned by a certain special purpose company?Research on the site revealed that it is indeed the spot where the live music venue Harajuku Ruido, which was central to the band boom in the 1980s, had been located. Harajuku was once a Mecca for amateur rock bands. Many performed on the streets for the weekend pedestrian-only zone as well as at the live venues.Among these venues, Harajuku Ruido served as a gateway to success for many musicians as they worked their way up to stardom. For example, the R&B singer Ken Hirai, who is renowned in Japan, performed his first show at this venue in January 1995, and it is also said that the rock band Sharam Q had also used it as a base for their activities. However, Harajuku Ruido closed in March 2007.Nico Nico Douga is also becoming a type of gateway to success for young artists with its music posting corner “Utattemita.” For example, one popular singer on Nico Nico Douga, Piko, made his debut on Kioon Records of the major record label Sony Music Group in August 2010. Niwango says that Nico Nico Honsha will help to promote artists who are popular on Nico Nico Douga and will serve as a place to publish their works. Music has returned to Harajuku.(Yoshimaro Tamura)Posted at 04:13 -
10.29.2010
'Route C' buildings in critical stage
“This building has a Route C design and we must find tenants soon…” This is what I have been hearing recently from owners and office tenant brokers of large-scale buildings scheduled to be completed in 2012 and 2013.The “Route C design” means that the building’s fire resistance and evacuation safety design approval is being attained through the “Route C” path, which includes receiving approval from the Minister of Land, Infrastructure, Transport and Tourism. Adoption of this special performance-based design approval method has increased even for large-scale buildings with large floor space per floor following the revision of the Building Standards Law in 2000.The benefits include not having to provide excessive evacuation facilities and heightened flexibility in planning since the verification of the safety of individual buildings can be conducted using computer simulation. Conversely, even a slight change in the positioning of a wall will require a massive recalculation of the simulation. Thus in order to reflect the desires of future occupants, tenants must be decided about two years prior to a building’s completion.Even so, vacancy rates remain high and the economic uncertainty makes it extremely difficult for building owners and tenant companies to envision the situation two years or more into the future. Many large-scale buildings are scheduled to be completed in 2012. If the determination of tenants is delayed, there may be an increase in cases where tenants that are determined close to the scheduled completion of the building will be unable to revise layouts as they want, or cases where tenants are not able to move in at the scheduled time of completion due to the additional time needed to attain Route C design approval.(Yasuko Oka)Posted at 04:47 -
10.19.2010
The Hamburger Project of Jingumae 4-chome
I often walk around the vicinity of the Omotesando area, especially between Meiji-dori Street and Aoyama-dori Street, to do research and shoot photographs. Around noon is just right for shooting photographs due to the lighting conditions, but it is also a time when I get hungry. In times such as these, it would be great to order a hamburger to go that can be eaten easily.However, the building near Omotesando Station which housed a McDonald’s disappeared altogether and Wendy’s pulled out of Japan. (Their bean chili was my favorite.) The only hamburger shop nearby is Lotteria along Meiji-dori Street, so I would like to see more variety.In that kind of mood, I was walking near Maisen, a tonkatsu (deep-fried breaded pork) shop on a back road of Omotesando. Right then, I spotted a construction signboard at an hourly parking lot which read, “(tentative name) Jingumae 4-chome, Project H (Hamburger), Site B.” I wondered with hope, “Would a hamburger shop finally be made?!” However, the sign said “a retail store, residences, and a clinic.”I did some research, which revealed that “insufficient funds for development have been collected and so construction has not yet begun.” Therefore, I gave up writing an article on it. If they are going to “salt-preserve” the land (i.e. keep it as is), they might as well open a real hamburger shop. I would definitely go there often.(Yoshimaro Tamura)Posted at 05:15
Office development to sharply decrease from 2013
Sun Frontier sells retail, office building in Akasaka
Kawasaki Heavy Industries to lease entire TIS Takeshiba Building
Tokyu Land incorporating Omotesando retail into new REIT
Tosei purchases Ebisu apartment building
Apa acquires Shinjuku hotel site from Capmark
Land adjoining Azabu Tokyo American Club acquired in bid
Hotel Seiyo Ginza being sold for Y18bn
Mitsubishi purchases 1,400 m2 of Koto-ku land
Apartments in Shimo-Kitazawa, Setagaya-ku to be resold
