|
January 30, 2004
Due Diligence Business Increases to Over
1,000 Cases
Increase due to the ever-growing evaluation requirements
of clients to cover soil pollution, earthquake resistance measures
and corporate revitalization
The number of due diligence* (DD) business cases, where the appropriate
investment value for real estate is calculated, received by
Takenaka Corporation (Head Office: Osaka; President: Toichi
Takenaka) during 2003 was over 1,000.
|
Main features of
the business received in 2003 |
Following is the main background and conditions of the business received
in 2003.
- The Japan Real Estate Investment Trust (J-REIT) market
took hold and became more active, and with an increased demand
for diagnosis of real estate and evaluation of cash forecasts
from owners, financial institutions and arrangers, along with
the sales and securitization of real estate, there was an
increase not only for requests for engineering reports, but
also for consulting business regarding improvements in property
values.
- With the implementation of the Soil Pollution Control Law
in February last year, there has been a heightened awareness
of the influence of soil pollution on the valuation and sale
of real estate, leading to a sudden increase in the demand
for the evaluation of the environmental risk of property being
held.
- Amid the growing alarm for the possibility of a major earthquake,
there has been an increase in the need for understanding earthquake
risks, leading to an increase in requests for earthquake-resistance
diagnostic reports.
- There has been an increase in the liquidation of golf courses,
privately-owned toll roads and other civil engineering works,
leading to an increase in objective property valuation business,
including risk evaluation.
- With global corporate revitalization, and mergers and acquisitions
(M&A), there has been an increase for the evaluation of not
only domestic assets, but also for overseas assets. Last year
orders were received for engineering reports from Japanese-affiliated
companies in the United States.
|
|
The rising DD business
and the expanding organization structure |
|
Takenaka began the DD business in earnest in 1998, steadily
rising from 54 cases in that year to 118 cases in 1999,
and 122 cases in 2000. In 2001, when property from the
J-REIT fund began to be liquidized, there was a sudden
increase to 583 cases, and the company experienced a further
steady rise to 735 cases in 2002. The company received
a record 1,035 cases in 2003.
The present DD business is run by a staff of 30 nationwide,
including the "DD Group" specialist department within
the FM department of the Tokyo Main Office, which is also
the client contact point, as well as staff in the Osaka
Main Office, and the Nagoya and Kyushu Branch Offices.
This DD business team has the back-up support of the Takenaka
Group (of about 100 staff) to undertake accurate real
estate liquidation. With the strength of this DD support
engineering, the company will continue to develop its
unique DD business, covering various types of asset management,
including existing buildings, projects still in the planning
stage, buildings under construction, civil engineering
projects and overseas property.
|
Number of orders received for Takenaka's DD business |
|
