BUSINESS

Two-pillar business model

Revitalization of previously owned condominiums used to be ARDEPRO’s sole principal business. Seizing the opportunity created by the Act Partially Amending the Act on Facilitation of Reconstruction of Condominiums, which came into force in December 2014, we expanded the scope of our business to include the redevelopment adjustment business.
Currently, the redevelopment adjustment business and the real estate revitalization business are our two principal businesses.

1. Redevelopment adjustment business

The redevelopment adjustment business involves adjusting interests among parties, such as tenants and mortgagees, pertaining to buildings constructed under the former earthquake resistance standards, so as to achieve a consensus on streamlining the relationships of rights. Then, the buildings are demolished and new commercial/office buildings or condominium buildings are constructed, thus facilitating urban redevelopment.
ARDEPRO carries out adjustment of the relationships of rights pertaining to real estate and sells the real estate primarily to major developers.

STEP 1

Purchasing of property

ARDEPRO investigates candidate properties, always with the outline of an exit strategy in mind, in the phase of negotiation on purchase of property.
Possible exits include sale as an office building, a condominium building, a hotel, etc. We emphasize the following four points when purchasing property.

  1. Property in the greater Tokyo area and in central urban areas of Osaka, Hyogo, and Kyoto prefectures
  2. Property in the most sought after districts of the above-mentioned areas where it is easy to find new tenants
  3. Property for which negotiations for vacating the property are likely to be relatively straightforward in terms of money and time
  4. Property with high potential for added value

STEP 2

Adjustment of rights

ARDEPRO collaborates with several law firms that have expertise in negotiating adjustment of rights. Our personnel work with lawyers on adjustment of rights (including negotiation on vacating the property).

Major developers are eager to purchase real estate for which relationships of rights are simple and they tend to avoid engaging in adjustment of rights that require complex painstaking procedures. Mindful of this, ARDEPRO has earned a high reputation and is widely recognized in the industry for its track record of success in the adjustment of property rights.

STEP 3

Sale

Once tenants vacate the property or it is legally secured that they will do so (settlement prior to the filing of an action), we sell the property to a major developer.

In most cases, the major developers to which ARDEPRO sells property carry out demolition of the building and construction of a new building, with ARDEPRO being responsible for the phases up to handover of the property to the developer.

2. Real estate revitalization business

The real estate revitalization business is a business involving the sale of existing buildings and commercial facilities after adding value through refurbishment, etc.
We are capitalizing on our accumulated knowhow in revitalization of previously owned condominiums, a business we launched at full scale in 2001, in revitalization of existing buildings and commercial facilities.

STEP 1

Due diligence

Our Tokyo Head Office and Osaka Branch gather information on property for purchase. Our sources of information are diverse, including claim management and collection companies, providers of professional services, financial institutions, corporations, foreign investors, business owners, and real estate companies. Taking pride in our ability to gather information, we believe we outperform competitors in this regard.

We meticulously conduct legal investigations, investigations of buildings and facilities, and asset evaluation. We also obtain engineering reports as necessary, check earthquake resistance, and perform screening to detect any violation of law or regulation.

STEP 2

Adding value

We refurbish a building’s common areas and add value to individual units, while also rectifying the property’s legal and regulatory compliance, as necessary.

We seek and secure tenants to increase the rental yield.

STEP 3

Sale

We sell property to those that emphasize yields from real estate rental income, including corporations, real estate companies, wealthy individuals, foreign investors, and real estate investment trusts (REITs).