The Tokyu Fudosan Holdings Group （TFHD Group), including TLC, has gathered expertise and experience over the years from a broad range of real estate sectors, including office, commercial facility, condominium, resort, and senior housing, and in a wide range of activities, including development, operations, and various management stages. The TFHD Group is affiliated with leading companies in several related industries. These companies include Tokyu Community Corporation and Tokyu Livable, Inc., two companies active, respectively, in property management and property brokerage services.

TLCM has established and managed various private real estate funds based on a high-grade core of office, retail and residential properties.

As a trustee, TLCM has established all compliance and risk-management systems required and appropriate to reward the trust investors place in us. In addition to legal compliance, TLCM is deeply committed to pursuing its business activities in the spirit of fairness and good faith. TLCM is dedicated to improving its understanding of its business and attendant issues and to maintaining a strong sense of discipline.

The collapse of Japan's bubble economy in the early 1990s drove down asset prices in the real estate and the stock market. This decline and the ensuing recession severely reduced demand, resulting in deflationary conditions for Japan. A strong yen and advances in globalization further contributed to this deflation, which accelerated through the 2000s as wages fell. During this decade, the Japanese economy fell into a vicious cycle driven by a strong yen and advances in globalization, which led to falling wages, which in turn led to further deflation and wage declines.

In winter 2012 of a regime change, Japan's economy appeared to reverse course. A weakening yen and a bullish stock market outlook appeared to take hold. Of the "three arrows" advocated under Prime Minister Abe's economy policies known as "Abenomics," the arrow of monetary easing appears to have been the key factor behind these changes. The weaker yen and rising stock market may just be the immediate response of international investors to Japan's broad-ranging monetary easing.

With monetary easing in place, the two remaining arrows, the implementation of a growth strategy and a fiscal policy, must now assume priority. For the growth strategy, Prime Minister Abe is favoring the Trans-Pacific Partnership (TPP) proposal. In all probability, though, the arrow of fiscal policy will be the hardest to implement.

In the world of asset management, something approaching a paradigm shift has also occurred in connection with developments in the Japanese economy, and the mood of hyper-risk aversion appears to be fading.

Given Japan's relatively small land area, the properties available for investors tend to be confined to dense clusters in densely populated regions; characteristics that help generate a stable, substantial cash flow. Investors are now reconfirming that Japan has long been a matured, sophisticated real estate investment market, with a sound and deep debt market offering considerable financials to this market.

Ready and capable, TLCM offers robust investment platforms for those seeking to invest in various sectors of Japan's real estate market.

April 1, 2013
Hitoshi Maehara, President & CEO