Suchergebnisse

This paper investigates the J-REITs' market performance and structure in order to suggest possible ways to overcome the J-REITs' major structural problems hindering further development. The JREITs market has been successfully grown; however, the growth has been mainly supported by Japanese domestic property market, which is currently sufficient to sustain the supply but will eventually face the issue of depletion. Thus, globalization is one of the most critical challenges which current domestic-dependent J-REITs urgently need to deal with. One way to promote globalization of J-REITs can be active overseas asset acquisition. Even though the necessary regulatory environment for overseas property acquisition has already been consolidated due to some legislative preparation by Japanese government, J-REITs themselves are also required to improve their governance structure. Because related-party transaction for overseas properties could be increased, the establishment of more solid governance structure would be necessary to maintain an upward trend for global transaction. Additionally, attracting offshore investors could be another way to generate further global expansion of J-REITs. Currently J-REITs could not successfully attract foreign investors because their current governance structure could not satisfy the needs of foreign investors. Particularly, the external management structure that all J-REITs adopt can be a main obstruct to draw interests of foreign investors. Together with the advanced governance systems and J-REITs supported from the reliable sponsor can play a significant role to encourage growth of the next stage of J-REITs. The application of the advanced governance systems and the synergetic relationship with the creditable sponsor can be short-time incentives for globalization of J-REITs.