Investment Guidelines

Location

Investment decisions shall be made based on a comprehensive analysis and examination of asset type, area, size, and other characteristics.

Building Age

 Generally, less than 30 years old. This will not apply, however, to properties whose quality can be improved by large-scale repair.

Floor Space, Design and Build, and Equipment

Investment decisions shall be made based on a comprehensive analysis and examination of asset type, area, size and other characteristics.

Legal Compliance

Generally, properties should comply with applicable laws and regulations, such as the City Planning Act and the Building Standards Act; however, non-compliant properties are investable if such non-compliance is expected to be corrected in the future.

Earthquake Safety

Properties should be compliant with the new earthquake resistance standards or equivalent under the Building Standards Act of 1981.

Earthquake PML (Probable Maximum Loss)

Stand-alone PML of not more than 20%, with a non-exceedance probability of 90%.
The portfolio PML shall be maintained at 10% or less.

Asbestos, PCB, and Other Harmful Substances

Asbestos
Buildings containing asbestos are generally not investable. However, if there is a very low possibility of dispersal, such properties may be eligible for investment depending on the cost to remedy the contamination, etc.
PCB
Property is investable if PCB is stored in accordance with the Act on Special Measures Concerning Promotion of Proper Treatment of PCB Wastes. The acquisition price should be determined in consideration of the PCB storage costs, etc.
Other
Attention should also be paid to other harmful substances.

Soil Contamination

Land that is or was a designated area as specified in Article 5, Paragraph 4 of the Soil Contamination Countermeasures Act is not investable. In cases where the land is found to be contaminated via an environmental assessment, the acquisition price will be determined in consideration of the scale of the contamination and the costs required for decontamination.