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Investing in real estate can be a hassle in Japan, but when you use the services of a company like Premium Value Bank (PVB), it becomes a lot easier. Established in 2010, PVB offers both Japanese and foreign clients a full range of real estate services, such as consulting, sourcing properties, arranging financing, finding tenants and looking after the property, among others.
Overseeing PVB’s operations is Chairman Yasumasa Fujimoto, 48. Born in Takamatsu, Kagawa Prefecture, Fujimoto began his career in 1989 with Nippon Kowa Co, where he specialized in real estate sales. In 1993, he founded Fleg International Co Ltd. Its main business was real estate development, but it also focused on the restaurant and apparel businesses. In 2010, he founded Premium Value Bank Co Ltd.
Japan Today visits Fujimoto at the PVB offices in Hiroo to hear more.
Has 2013 been a good year?
It has been a very good year so far. Sales were up by 6.9 billion yen so far compared to 2012. I think the main reason we have done so well is that PVB provides suitable services that match the current market demands. Also, the size of the market increased, so we increased the number of clients.
What are PVB’s strengths?
We have a nationwide network for real estate property information, backed by a sophisticated consultation capability. This means PVB can find the best suitable properties and real estate services that match investors' goals and needs. Another strength is that we provide all-in-one solutions such as consultation, finding properties, financing, property management and after-sales support.
How do you market the company?
We use real estate portal sites such as Kenbiya and Rakumachi and we also hold monthly seminars.
How many foreign clients does PVB have?
Although our International Division just started in this October, we have already had three foreign clients. We are getting positive feedback so far.
What lessons did you learn from Lehman Shock? Before the Lehman Shock, international funds injected a tremendous amount of money into the Japanese real estate market which created the real estate bubble. It inflated the land value far more than its actual value. With that experience behind us now, we are capable of assessing whether a real estate boom is based on the actual economic growth or not. We pay much more attention to the actual value of the land and can tell whether it is a bubble based on foreign funds. This helps us to propose a financially sound real estate investment portfolio for investors and to build up a long-term growth relationship with them.
What do you think of Abenomics?
Abenomics will continue to have a huge positive impact on Japanese economy, which will help the Japanese real estate industry to grow steadily until the Olympics in 2020 because the government will invest in infrastructure. However, if some external negative events occur in other countries, such as what we saw with the debt crisis in Greece or the partial shutdown of the U.S. government, then that will have a negative impact on Abenomics and the Japanese economic recovery.
We are watching the global economy very carefully so that we are capable of providing better investment options for our clients.
What concerns do your foreign clients have? Earthquakes, perhaps?
Potential foreign clients already know about earthquake risks in Japan. They are more concerned with the Japanese economy and stock market trends. Japan is politically stable, so that reassures them. Like Japanese clients, they are also interested in the cash flow and gross yield of properties.
What areas in Tokyo are hot for real estate right now?
The hot areas now are Asakusa near Tokyo Skytree, Shinagawa and the vicinity of the National Stadium where the 2020 Olympics will be centered.
Are old buildings in demand?
Yes, renovated and older buildings are getting popular for investors. By renovating an existing building, we can sell it for a reasonable price and increase the gross yield.
How many staff do you have?
We have 40 now. Next year, I hope to hire another 20.
What areas of the business do you concentrate on?
I tend to be hands on with business development and innovation, and of course, setting the direction of the company.
What is a typical day for you?
I show up at 11 a.m. and leave about 8 p.m. I am usually in the office most of the day.
When you are not working, how do you like to relax?
I enjoy scuba diving at Shizuoka or Cebu in the Philippines.
© Japan Today
3 Comments
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kurisupisu
Japan is devaluing the yen meanwhile there is another speculative bubble forming in real estate.
A risky investment?
TravelingSales
On an inflation adjusted basis, Japanese land prices are lower than in the early 1970s. I am not sure that the interviewee has quite grasped the concept of a bubble.
shinsaku.ai
I agree with TravelingSales: The interviewee doesn't seem to know what a bubble is.
On the flip side, PVB seems to be providing a desired service for foreign investors who either cannot deal in Japanese, or does not have PR that Japanese megabanks would require.
That being said, I still do not fully understand their business model: They are not an introduction-only orthodox brokerage house since they take a position in the asset through renovation. I guess that means they get the differential from the (depressed) original buying price and the (improved) selling price they give to the ultimate investors who will get the loan from the Japanese bank.