External Growth Strategy

  • To attain stable profits over the medium to long term, INV will primarily acquire hotels and residential properties and position them as Core Assets.
  • In order to further improve its ability to collect information on property transactions, INV will endeavor to expand the information channels unique to the Asset Manager while broadly pursuing opportunities to acquire properties in the market.
  • INV will have periodical information exchanges and other opportunities to work with Fortress Investment Group LLC and its affiliates ("Fortress Group"), which is a sponsor of INV, in an effort to collect market information in more diverse ways.
  • When making investments in overseas real estate properties, the Asset Manager will make an investment decision in a thoughtful manner, by comprehensively analyzing trends of the real estate markets, legal systems, accounting, tax and business principles and other market circumstances of the surrounding countries and territories in which the relevant properties are located, and considering the validity of investment schemes, risks related to legal, accounting and taxation issues, etc., as well as currency and country risks relating to investments and returns of revenues, based on proper information and from a macroeconomic viewpoint that also covers factors such as political situations, demographics and economic growth.
Types of Asset Investment standard
Core Assets Hotels Domestic INV will consider potential acquisition of properties that are expected to contribute to stable growth in the portfolio revenue, and that will contribute to stable revenues based on a comprehensive review of trends of foreign tourists, demand for accommodations from business and domestic leisure travelers in and surrounding areas in which potential investment targets are located as well as terms of leasing contracts.
Overseas
  • INV will carefully select high-quality hotels with expected stable demand. These high-quality hotels should be operated by an international hotel operator with a wide-ranging track record of hotel operations globally with strong expertise in marketing and sales activities. The international operator should provide operational know-how, systems and branding for such hotels.
  • INV will in principle target hotels developed, owned or operated by Fortress Group, the sponsor of INV, to ensure that INV can obtain sufficient information on the property before making any investment and adequate support to operate the property after the acquisition.
Residences INV will focus on highly-competitive properties consisting of smaller units located in major cities, analyzing rental demand, market rents and rental trends to gauge the competitiveness of the property.
Sub Assets Office Buildings INV invests in office buildings located mainly in the business districts of the three major metropolitan area in Japan (the greater Tokyo, Kansai and Chubu areas) and comparable areas, after comprehensively assessing various factors such as convenience of location, profitability, size of buildings, architectural and building specifications, earthquake resistance, attributes of tenants and the environment.
Commercial Facilities INV invests in versatile multifaceted facilities located near cities and in large general merchandise stores in suburbs, selecting those commercial facilities in superior locations while also taking into consideration factors such as surrounding market conditions.

Sponsor Support

INV's asset manager, Consonant Investment Management Co., Ltd. (hereinafter "CIM") executed "Sponsor Support Agreement" with Fortress Investment Group Japan Godo Kaisha (the "Support Company"), one of sponsor support companies, on June 3, 2015, in light of details of support which the Support Company has provided up to now, in order for CIM to confirm and clarify the position of the Support Company and rights and obligations of both the Support Company and CIM.

<Outline of the Sponsor Support Agreement>
Information Services Support Company may disclose information regarding real estate to CIM at its absolute discretion when (i) Fortress Investment Group LLC and its affiliated corporations sell real estate which they own, develop or manage, and the Support Company reasonably determines that it conforms to CIM's investment standard, or (ii) sale information is provided by the third parties other than the Sponsor Group.
Various advisory businesses Support Company may provide various advisory services to CIM.
Information exchange CIM and the Support Company shall exchange information regarding the sale and purchase of real estate and the rental market.

Policy & Strategy