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Asset Financing (Real Estate)

DBJ's involvement in the long-term financing of real estate operations began in the 1960s. We participated in Japan's real estate securitization market from its early beginnings and strove to invigorate this market. Our track record, expertise and networks in this arena enable us to provide nonrecourse loans and a host of other solutions.

Area of Business

Type of Operation|Liquidization Financing

  1. Example 2: After selling owned real estate that a customer is using to a special-purpose company, conclude new rental agreements and continue using the property in this manner.
  2. Example 2: After selling owned real estate that a customer is using to a special-purpose company, conclude new rental agreements and continue using the property in this manner.

Customer Benefits
  1. Allows diversification of financing methods
    • Enables funds to be raised based on the property's ability to generate revenue and cash flow
    • Preserves the credit availability of the originator (the original owner of the asset)
  2. Moves property off the balance sheet for better financial efficiency
    • Improves ROA
    • Allows planned recognition of unrealized gains or losses
    • Improves financial picture by reducing interest-bearing debt
    • Eliminates risk of variations in real estate values

Development Financing

Example: Use investor financing to develop idle owned real estate into income property.

Benefits
  1. Realizes profits from development
    • Enables funds to be raised for real estate development, which might be difficult for the company to do on its own
    • By securing required additional funding, helps diversity and control the risk of construction delays and cost overruns
  2. Controls risk by moving property off the balance sheet
    • Maintains the company's financial soundness
    • Eliminates risk of fluctuations in real estate values

Types of real estate: DBJ provides real estate financing in a wide variety of fields, depending on the customer's needs.

Offices, rental housing, commercial facilities, hotels, logistics facilities, multipurpose facilities, senior facilities, etc.

DBJ's Solutions

DBJ's Solutions

  • Has extensive arrangement expertise on numerous projects, as well as a performance record in investment and financing
  • Maintains a performance-backed network of leading investors and financial institutions in Japan and overseas to help realize projects and arrange financing
  • Creates project-tailored solutions to meet customers' needs, such as providing senior, mezzanine and equity financing
  • Maintains an impartial and neutral standpoint, enabling projects to progress smoothly by appropriately diversifying risk and helping involved parties realize profits

Case Study

JR Sapporo Hospital

DBJ acted as co-arranger in constructing a stable scheme under which local area financial institutions established senior loans and DBJ executed a mezzanine loan.

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