tokyu land holdings inc.
President and Representative Director
Hironori Nishikawa
Last year saw the birth of Japan’s first female prime minister, the Takaichi administration, the aggressive fiscal policy pursued by the current government, and additional interest rate hikes at the Bank of Japan’s monetary policy meeting, among other trends of change. Looking overseas, the situation in Ukraine, China, and other Asian countries are just a few of the many risk factors at home and abroad. The current real estate market is continuing to be favorable, with a clear rise in office rents, especially in central Tokyo such as Shibuya Ward, the Group’s home base, and a continued strong performance in the brokerage market. On the other hand, real estate prices are rising due to soaring construction costs, especially in central Tokyo, and trends in restrictions on resale of newly built condominiums. We expect that the economy will gradually shift to a moderately inflationary economy in Japan, which will lead to higher tax revenues for the government, improved corporate performance, and healthier household finances as people’s incomes rise. However, we need to keep a close watch on various trends, such as a sharp rise in interest rates and the resulting decline in real estate purchase sentiment.
In its medium-term management plan announced last May, the Company is working on three key themes: “Promotion of the Strategy for the Greater Shibuya Area,” “Establishment of the GX Business Model,” and “Expansion of Glocal Businesses. In the “Greater Shibuya Area,” the Company will continue to promote hardware development to renew urban functions, while at the same time actively pursuing soft measures such as industrial development and urban tourism, including the opening of a start-up center at the “Shibuya Sakura Stage” in partnership with an overseas university. By enlivening Shibuya, we hope to drive the strengthening of Tokyo’s international competitiveness. In the “GX Business Model,” we will establish a value chain in the renewable energy business and leverage our top-class renewable energy generation capacity in Japan to win real estate development projects, thereby establishing a new business model that is unique as a real estate developer. Glocal Business” is a project that is underway in various locations, including the development of a 100% renewable energy data center in Ishikari City, Hokkaido, and an investment of over 10 billion yen in Niseko by FY2026, and will contribute to the revitalization of the local region.
This year will be a year in which the competitive advantages of each company will become clear amidst the ongoing inflation. In our long-term vision through FY2030, we have set “environmental management” as one of our company-wide policies, and we are actively working on the themes of “decarbonized society,” “recycling-oriented society,” and “biodiversity” not only in Japan, including the greater Shibuya area, but also overseas, including the Palau Pacific Resort in Palau, which was featured in the TNFD report, by opening a facility to introduce the importance of the natural environment in December of last year. In December last year, we opened a facility to introduce the importance of the natural environment at the Palau Pacific Resort in Palau, which was featured in the TNFD report. This year, we will continue to promote “environmental management,” which is one of our company’s unique characteristics, and work on three key themes that will allow us to demonstrate our strengths in growth areas to build a strong and unique business portfolio and achieve further growth.
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