1.Procurement - Upgrading condominium procurement capabilities and extending activities to include commercial properties and hotels
ARDEPRO was listed on the Tokyo Stock Exchange Mothers Market on March 18, 2004. In addition, we have offices in all major cities in Japan. As a result, there has been a dramatic improvement in recent years in public awareness of the ARDEPRO brand and our business activities. We have used this sounder base of operations to acquire a diverse range of real estate information that is not limited to used condominiums. We plan to extend our business domains beyond the used condominiums market to include commercial facilities, hotels, office buildings and other types of properties.
2.Sales of unsold new condominiums
We are establishing a foundation for sales of newly constructed condominiums, both to future residents and investors. In August 2005, we purchased the new condominium sales operations of Millefarm Co., Ltd. This company had been engaged mainly in sales of unsold new condominiums and sales of investment condominiums, mainly one-room units. This sale provided opportunities for synergies with our expertise in the revitalization and sales of used condominiums. Acquiring this business also provides a base for selling used condominiums to investors, a market that is expected to grow significantly in the coming years.
3.Sales to investors as a hedge against deflation and reduced bank deposit insurance
In 2005, deflation was continuing in Japan and the government reduced insurance for bank deposits in April of that year. Due to these developments, more investors have become interested in the income streams that real estate can produce. In the past, investors have focused mainly on newly constructed buildings and one-room condominiums. Recently, there has been an increase in demand for used condominiums designed for families. This is why we are working on the development of properties that target this demand.
*Based on 2003 National Tax Agency income survey
4.Use the Internet to sell properties by upgrading IT operations
ARDEPRO has taken advantage of rapid advances in IT to experiment with a number of sales methods using the Internet. These activities led to a September 2005 business alliance with IDU Co. that allows us to sell our real estate by using IDU's Mother's Auction, an Internet real estate auction. This alliance has allowed us to further expand sales channels for revitalized properties.
5.Switching from branch offices to sales offices
We conduct sales activities through a network of two branch offices located in major cities throughout Japan. Currently, we are using these branch offices as a base for opening sales offices in smaller, regional cities of Japan.
6.Switching from purchasing buildings to purchasing individual units
We have grown mainly by purchasing, revitalizing and selling entire buildings. In addition, we now plan to use the network of sales offices to purchase carefully selected individual units.
