Value Add Investment

Case 1 –Family type residential  in Kawasaki
Investor type: Family Office

<Reason why we chose?>

• Near by station of Toyoko Line

• 15 rooms for 2DK family use

• Lower rent price since inception

<Value Add>

• Convert floor plan 2DK to 1LDK to meet demands for non child family

• Then rent-up

<Return>

• In 1.5 Years holding period, 3M(book value) to 3.5M( Exit Price)

• IRR 15%

Value Add Investment

Case 2–Studio type residential in Kouengi
Investor type: Family Office

<Reason why we chose?>

• 10 rooms studio

• Within 10 min from Kouengi station

• Negotiable price

• Good allocation between land and building

<Value Add>

• Change the property manager for cost reduction

• Security Camera and LED light to rent up

• Refinance from other bank to get lower rate

<Return>

• In 2.5 years holding period, 800K(book value) to 1.4M( exist value)

• IRR 35%

Value Add Investment

Case ３–Studio type residential in Sapporo (Still on going)
Investor type: Family Office

<Reason why we chose?>

• 31 studio type rooms

• Near by Sapporo station and Maruyama Park

• High valuation by bank

• Less than 1% rate for full finance

<Value Add>

• Negotiation with sub-lease broker to rent up

• For next 5 years, expected 20% rent up

• Security Camera and LED light to rent up

<Expected Return>

• In 5 years holding period, expected 1.5M profit(3M→4.5%)

• Target IRR 15%