Property Management Business Now and Future Global Trend
Property Management Business, Now and Future ~ Global Trend~ Ryuhei Mori XYMAX CORPORATION October 2016
Introduction Introducing myself Ryuhei Mori XYMAX CORPORATION - Head of Overseas Business Department - General Manager of Corporate Planning Department - General Manager of Karaksa Hotel Department XYMAX TRAVEL DESIGN CORPORATION - General Manager Mr. Mori started his career as a property asset manager from 2000 to 2001. From 2001, Mr. Mori spent 16 years with Corporate Planning Department, including 6 years as a department manager, where he was responsible for new business planning, founding 30 subsidiaries, public relations, and assistance for corporate executives. After 2 years examining global market, Mr. Mori was responsible for founding Overseas Business Department. From October 2012, he is Head of Overseas Business Department. In 2015, Mr. Mori was also responsible for founding hotel and tour business. He holds a Master of Art (Medieval History) degree from University of St. Andrews in Scotland. 2
Introduction Introducing XYMAX Group Real Estate Solution Non-Real Estate Company Xymax Estate Design Retail Stores Chain Stores Xymax, Corporate Support Department Overseas Company Xymax, Overseas Business Department Real Estate Special Functions Investors Xymax Real Estate Institute Building Maintenance Planning Real Estate Appraisal Xymax, Technology Planning Department Xymax Asset Consulting Investment Brokerage Xymax, Structure Planning Dpt Xymax, Real Estate Planning Dpt Real Estate Management Property Operation Xymax Alpha Xymax Kansai Xymax Kyushu Janitorial Service Max Clean Security Service Max Security Service Research Xymax Real Estate Research Institute Construction Management Xymax, Design Development Department New Business Hospitality Xymax, Karaksa Hotel Department Karaksa Hotels Kansai Xymax Travel Design Building Maintenance Innovation ITBM Center Xymax Geppeto Xymax CUTE Mobile Work Office Xymax, Mobile Work Office Department 3
Property Business Real Estate Investment Structure Non recourse Loan도 많음 Loan CMBS(Commercial Mortgage Backed Securities)로 판매 출자 은행 배당 부동산 SPV Equity Capital (Special Purpose Vehicle) 출자 투자가A 투자가B ・・・ 배당 수익권자 Asset Manager 권 익 수 SPV의 관리자, 부동산투자 Scheme의 기획자 신탁은행 명의상의 소유자 부동산관리 부동산 관리 계약 Property Manager 계약 Building Manager 부동산 경영・관리의 기획자, 부동산 경영의 실천자(実践者) 부동산관리의 실천자 Building Management Vendors 5
Property Business Property Management Mission Real Estate Value = Income profits ÷ Capitalization rate Income profits = Rent – Operating Cost (such as tenants leasing costs and facility operation) Capitalization rate = Interests Rate + Risk Premium (economy situation, real estate location, , , etc) = Income Profits --- 5 M USD Capitalization Rate --- 5% Real Estate Value --- 100 M USD 9
Property Business Property Management Mission Real Estate Value = Costs for construction Before the construction, marketing and estimating are very important. Marketing --- which type of facility can be popular? Office, retail stores, hotel, logistics, health care and so on? Depending on economy situation, real estate location… Estimating --- rent price, occupancy rate, cost for facility operation, future facilities repair and renovation… 10
Property Business Property Management Mission 프로퍼티 메니지먼트가 지 향하는 것. POTENTIAL GROSS INCOME (PGI) • Rent • CAM • Utility Recovery • Parking Income • Other Income 매출의 향상 ×VACANCY (%) EFFECTICE GROSS INCOME (EGI) OPERATING EXPENCES • Real Estate Tax • PM Fee • Insurance • Maintenance Cost • Leasing Commission • Minor Repair • Ground-lease Rent (if any) • Utility Expense • Other NET OPERATING INCOME (NOI) 비용의 삭감 이익의 극대화 -Capital Expenditure NET CASH FLOW (NCF) 11
Property Business Property Management Mission By co-researching with Kyoto University, the management elements are found as important for pricing rent. Following elements are regarded as crucial elements by researching through approximately 100 elements. Elements of building Examples of element Elements of location correlation coefficient Examples of element Elements of management correlation coefficient Examples of element correlation coefficient Gross area size 0. 65 Land price 0. 34 Exterior design image 0. 61 One floor size 0. 71 Distance from station -0. 27 Entrance image 0. 55 Number of floors 0. 65 Number of train lines 0. 28 Elevator image 0. 45 Ages after construction -0. 31 Floor image 0. 63 Ceiling height 0. 45 Restroom image 0. 63 (source: Kyoto University & XYMAX) 12
Property Business Property Management Mission Rent Price = Property size - Ages + Location + Management Property size, Ages and location are not changeable, but Appearance (Management) is changeable. ⇒ Good property managers are significant. 13
Property Business Property Management Mission Construction cost is only 23%, 50% of costs are coming from property operations. 50 -years total costs of commercial real estate business (source: XYMAX Real Estate Institute) 14
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