Real Estate
Information as of March 31, 2022.
RE Investment and Facilities Operation
Business
Development and rental of office buildings, commercial facilities, logistics centers, and other properties; operation of businesses such as hotels, inns, and aquariums, in addition to asset management
| Assets (Share of total) | ¥670.0 billion (6%) |
|---|---|
| Profits (Share of total) | ¥12.0 billion (2%) |
Overview
Comprehensive Real Estate Business
ORIX launched its real estate business in 1986 by leasing corporate dormitories for unmarried employees. We subsequently expanded into a diverse portfolio of businesses, including real estate development and rental, asset management, and facility operation. Our real estate business has comprehensive capabilities not found at other companies because we leverage ORIX Group’s network to collect information on properties, identify investors, attract tenants, and introduce customers to operating facilities.
Strengths
-
Extensive expertise in the real estate business
-
Information volume and proposal capabilities that fully leverage the Group’s network
Challenges
-
Strengthening high-level quality control capabilities
-
Raising the value of the ORIX HOTELS & RESORTS brand
-
Expanding a stable revenue base through the asset management business
-
Providing new value in the real estate business through DX and sustainability initiatives
Opportunities
-
Logistics facility needs due to expansion of the e-commerce market
-
Active real estate brokerage market due to the growing inflow of funds into investment
-
Asset divestiture needs due to COVID-19
Risks
-
Changes in demand for accommodation due to factors including personnel shortages at operating facilities and infectious diseases
-
Real estate investment market contraction due to the declining population in Japan
-
Rising construction costs
RE Investment and Facilities Operation Business Portfolio
Leadership
DAIKYO
Business
Development and brokerage of real estate and building maintenance and management, with a focus on condominiums
| Assets (Share of total) | ¥240.1 billion (2%) |
|---|---|
| Profits (Share of total) | ¥20.0 billion (4%) |
Overview
Japan’s Number One*1 Cumulative Supplier of Condominiums
ORIX took an equity stake in DAIKYO in 2005 and made it a wholly owned subsidiary in 2019. DAIKYO is involved in real estate development and brokerage and building maintenance and management, with a focus on condominiums.The real estate development business supplies new condominiums and rental condominiums. The real estate management business handles maintenance, cleaning, repair, and other services for facilities, and also provides support and other services for condominium homeowners associations. The real estate brokerage business brokers the purchase and sale of properties, purchases homes for renovation and resale by handling repairs and adding new value and functions, and provides management support for rental properties.
*1. Calculated using Real Estate Economic Institute data as of December 31, 2021
Strengths
-
Development expertise and brand recognition of Lions and Surpass condominiums
-
Stable revenues from building management, rental management, sales brokerage, repair work, remodeling, etc. originating from the condominium business
Challenges
-
Expanding the share of condominiums supplied in Japan’s three largest urban areas
-
Promoting business innovation and improved efficiency through DX
-
Strengthening redevelopment proposals and other development capabilities
Opportunities
-
Need to renovate or rebuild aging condominiums
-
More business opportunities from leveraging the Group network
Risks
-
Rising land prices due to intensifying competition for site acquisitions
-
Rising construction costs
DAIKYO’s Value Chain
