Symbolizing our "nonasset business"
Shiodome City Center project completed
Envisioning the next generation: Ongoing development of Shiodome Sio-Site
Januaryr 23, 2003
Mitsui Fudosan Co., Ltd.
Mitsui Fudosan Co., Ltd., is pleased to announce the completion of Shiodome City Center, a high-rise office and retail complex located on Shiodome Sio-Site, in the Shiodome redevelopment area. The Company undertook the project in collaboration as joint owner with Alderney Investments Pte. Ltd., an affiliate of the Government of Singapore Investment Corporation Pte. Ltd (GIC).
Although this was a joint venture project, Alderney Investments entrusted the full range of real estate management-related tasks to Mitsui Fudosan, including asset management such as tenant leasing, property management and so on. This project symbolizes the approach of our "nonasset business," a key element of our management strategy. This strategy embodies a major paradigm shift in the real estate industry, where the perception of value, once centered on possession of land, now prioritizes how land is utilized. The project also illustrates how "urban renaissance" can be achieved by combining funds from an international institutional investor and the know-how of a Japanese private-sector company. Indeed, the project provides an insight into the future direction of the real estate industry and urban renaissance in Japan.
Shiodome Sio-Site has easy access to business, government, and commercial centers, including Nihonbashi, Marunouchi, Kasumigaseki, and Ginza. With a land area of 31 hectares„seven times the size of Tokyo Dome„it is a large-scale redevelopment project that will see the successive construction of high-rise buildings based on multifaceted and progressive design concepts. In addition to cultural, commercial, hotel, and other facilities, the site will house the headquarters of major Japanese companies and will also comprise high-rise condominium buildings. From its beginnings as a center of cultural innovation„where Japan's railway industry originated„the site is destined to become an internationally recognized symbol of Tokyo in the 21st century.
Shiodome City Center is 215 meters in height, with 43 stories above ground and four below. It was designed by Kevin Roche, a renowned U.S. architect. The design concept, simply expressed, is "integration." The sleek emerald-green exterior, with its elegant curves, exudes a futuristic image. To bring the Center in harmony with the Old Shimbashi Station, which will be restored on the site, the building's lower portion has been designed to highlight the Station and its historical nature. Open spaces have been designed to promote seamless interaction with peripheral areas. Indeed, the project is expected to become a key "urban hub"„an "integration" of future and history, as well as of Shiodome and its neighboring precincts.
The fourth to 40th floors contain offices. They were designed according to Mitsui Fudosan's "workers first" policy, focusing on creation of ideal working environments for business people. To maximize benefit to those working in the building, each floor, consisting of about 2,810 square meters of office space, is equipped with state-of-the-art security, IT, and environmentally friendly mechanical systems. Accordingly, office workers can enjoy highly motivating levels of safety, comfort, and function. The building is almost fully occupied and houses the headquarters of such names as Fujitsu Ltd., All Nippon Airways Co., Ltd., and the new company formed by the merger of Mitsui Chemicals, Inc. and Sumitomo Chemical Co., Ltd.
Two of the basement levels and the first three above-ground levels, as well as the 41st and 42nd floors, are occupied by commercial facilities, with 60 shops and restaurants in total, including an imported-car showroom. Restaurants on the top two floors offer panoramic city views and extensive floor space on a scale rarely seen in such a central location. While Shiodome City Center has a variety of amenities, there are a number of facilities nearby. Located in the same site are Old Shimbashi Station, with restaurants and a museum, as well as the new Tokyo headquarters of Matsushita Electric Works, Ltd., which has a showroom and museum. Within neighboring sites are Caretta Shiodome, a commercial complex featuring the Shiki theater house, as well as Nippon Television Tower, hotels, and high-rise condominium buildings a. Moreover, the site is close to the central commercial Ginza district , as well as Hamarikyu Park, a popular place to relax in central Tokyo. Accordingly, Shiodome Sio-Site will fulfill the multiple key functions of urban society: work, leisure, dining, relaxation, and living. The resulting synergistic benefits will help create an amenity-filled town that "envisages the requirements of the next generation."
A number of media companies and hotels have appeared on Shiodome Sio-Site, which promises to become a topical, vibrant community that never sleeps. Shiodome City Center houses a variety of shops to meet the requirements of such customers. Shops include appealing restaurants and business service outlets that support the needs of office workers. Therefore, we believe that the building will become a sought-after address for inner-city life.
Private tours of the commercial facilities will be held before the grand opening, which is scheduled for April 10, 2003.
Reflecting the aforementioned paradigm shift in the real estate industry, Mitsui Fudosan looks forward to the completion of a number of its "nonasset business" projects in the near future. These include Garden Air Tower in Iidamachi and the head offices of Kyodo News and Toppan Forms on Shiodome Sio-Site.
These "nonasset business" projects allow Mitsui Fudosan to earn fees with little initial investment outlays, enabling the Company to improve its business performance and financial position while also undertaking a large number of projects. As such, we can obtain an ideal balance between owned and managed assets. Meanwhile, we continue to pursue our "area strategy," whereby we undertake multiple projects in key selected areas, enabling us to better meet the diverse needs of customers in each area.
Japan's urban renaissance campaign is gaining attention as a way to enhance the international competitiveness of its cities and stimulate the domestic economy. In addition to Shiodome, Mitsui Fudosan is actively engaged in redevelopment projects in such locations as Nihonbashi, Yaesu, and Roppongi. Business models and development techniques vary with each project, and involve joint development with private-sector companies, capital input from investors, and other arrangements. By targeting further collaboration with government and local entities, we will seek to revitalize entire areas, not just the sites slated for development
Drawing on our accumulated know-how, we will take advantage of new opportunities arising from a major paradigm shift in the real estate industry Specifically, we will seek to provide solutions that our customers will value highly by displaying originality unfettered by preconceived notions. By also creating added value, we will promote urban renaissance projects that contribute to comprehensive revitalization of local and regional economies.