External Growth Strategy
HHR will continue to acquire assets under management in order to expand and stabilize revenues by scaling up its assets and the number of properties, to diversify risks and to increase the liquidity of the investment units.
Obtaining property information
The Asset Management Company shall use its own network and the information gathering capability of the Hankyu Hanshin Holdings Group, in conjunction with property information received based on an information sharing-related agreement entered into with Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp. and Hankyu Hanshin Real Estate Investment Advisors, Inc. (including sharing of external property information (Note)), to collect information on sales of real properties and other properties extensively. The company shall accurately analyze the information it obtains from various perspectives, and make investment decisions.
- External property information refers to information on sales of properties that meet the investment criteria of HHR obtained by the parties to the information sharing-related agreement from third parties other than the parties to the agreement (including operators of parties with which the parties to the agreement have entered into an anonymous association (silent partnership) agreement, etc.).
Priority negotiation rights granted by the Hankyu Hanshin Holdings Group
Based on the information sharing-related agreement, the Asset Management Company shall be provided information on sales of eligible real estate (Note) owned or developed by Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp. and Hankyu Hanshin Real Estate Investment Advisors, Inc. with priority over other parties to the agreement or third parties and, if it makes a submission for deliberation of acquisition of the eligible real estate, then it shall be granted priority negotiation rights for that property acquisition. In this way, along with strengthening information sources, a mechanism has been established in which HHR can use the network of the Hankyu Hanshin Holdings Group in its property acquisition.
- Eligible real estate refers to those profitable real estate or the trust beneficiary interests of such real estate, either with current occupancy or in the stages after development planning with reasonable potential for prompt occupancy after the completion of construction, of which meet HHR's publicly announced investment criteria.
Based on the information sharing-related agreement, when needed in cases where acquisition of a property directly from the seller by HHR would be difficult and that property is eligible real estate of which the seller is a third party other than the parties to the agreement, the Asset Management Company shall request Hankyu Hanshin Properties Corp. or Hankyu Hanshin Real Estate Investment Advisors, Inc. to acquire and temporarily hold the property for the purpose of future acquisition by HHR. In this way, the Asset Management Company shall strive to realize smooth acquisition of assets by HHR.
HHR has uniquely expanded its inter-company network with companies in several sectors such as general business, distribution business and real estate fund management, through the Asset Management Company, so that it can acquire external properties at reasonable prices by bidding with few competitors and through one-on-one transactions. It is also diversifying its acquisition scope such as acquisition of properties to be developed and lands with leasehold interest.