REAL ESTATE TECHNOLOGY
Ascot Corp. | May 09, 2022
Ascot Corp. has formed the first private fund through a joint venture with global institutional investors to invest in MF residential, senior living facilities, and student housing in the Tokyo metropolitan area.
Main Investment Properties of the Fund
"ASTILE" is MF residential brand winning the Good Design Award twice last year, and "FARE" is the brand winning the Award seven times for the five consecutive years.
*The Good Design Award is the only comprehensive design evaluation and recommendation system in Japan that covers a wide range of fields from industrial products to business models and event activities.
Overview of the Fund and Strategy
The investment targets of the Fund are MF residential, senior living facilities, and student housing, and their locations are limited to the Tokyo metropolitan area where are expected to provide stable cash flows with little impact from the Covid-19 pandemic and high liquidity on exit, and consequently stable investment results. Furthermore, the investment risks can be identified within the limited scope and in a quantitative manner due to the predefined properties.
The portfolio of the Fund No. 1 comprises of 9 properties, mainly MF residential developed by Ascot (including ASTILE Harajuku, and ASTILE Nishi-Shinjuku II etc.). In the near future, Ascot plans to expand the scope of its fund in collaboration with global institutional investors by acquiring MF residential, senior living facilities, and student housings from external developers and funds, in addition to properties developed by Ascot. Ascot manages these properties as the asset manager of the Fund.
The Growth Strategy of Real Estate Fund Business Department
The Real Estate Fund Business Department, established in 2021, is a new business unit of Ascot that leverages the company's design and quality property development capabilities cultivated over the past 20 years since Ascot's founding in 1999, as well as its domestic and international network. As one of the key pillars of our mid-term growth strategy, we aim to further expand our business by forming joint venture funds with domestic and foreign investors and new private funds, as well as by entering the REIT and other businesses.
In addition to MF residential and offices, which are our strengths, we will target a wide range of asset classes, including logistics, hotels, senior housing, data centers, etc. Furthermore, we are considering entering some asset classes from the development stage.
The Fund Business Department will contribute to the growth of the real estate investment market by continuously providing optimal solutions and quality investment opportunities to a wide range of investors while expanding total assets under management.
Under the circumstances of limited investment opportunities under the low interest rate policy and globalization trend of investment, there has been a shift in allocations from traditional assets such as listed stocks and bonds to alternative investments, with real estate investment in particular gaining prominence worldwide over the past few years.
As the global asset allocation strategy, a certain percentage has been shifted to Asia, and, in comparison to other Asian countries, investment in Japanese real estate has been allocated to a significant degree in terms of core investment. The primary factor is that Japan's low interest rate policy has ensured a relatively large yield gap. Secondly, Japan, centered on Tokyo, has a considerable market size which provides high liquidity on exit. In addition, the infrastructure for investment, such as legal, accounting, and taxation is very stable. Therefore, stable returns are expected to be secured. Consequently, the investment needs and flow of funds from global investors, especially institutional investors, to Japanese real estate have continued even with the COVID-19 pandemic, and the recent depreciation of Japanese yen has also attracted investors' attention to Japanese real estate.
The asset classes receiving great attention are logistics and MF residential. Since Ascot has advantage in longstanding residential development business, the first fund focused on residential properties.
Comments by Takeshi Nakabayashi, President of Ping An Japan Investment Co, Ltd.
Ascot Corp. is the first real estate company in Japan invested by Ping An Group. We are fascinated by Ascot's excellent development track record backed by its ability to plan and deliver high value-added residential and office properties. We have high expectations for the growth of Ascot's new global business, including the real estate fund management business just launched, the development of logistics facilities, and integrated services from real estate brokerage to property management for global investors.
About Ascot Corp.
Ascot is a global comprehensive real estate service provider targeting Tokyo metropolitan area. The business includes the development of the MF residential and logistics, fund management, real estate brokerage for global investors, and property management leveraged by its design and high-quality property development capabilities as well as its domestic and international network. Its design and development capabilities cultivated over the past 20 years are highly recognized, as the track record of winning the Good Design Award 14 times in total shows. Through Digital Transformation, Ascot aims to provide quality real estate services in line with global standards by enhancing customer contact and creating new revenue models.
REAL ESTATE INVESTMENT
Fifth Corner | January 07, 2022
Fifth Corner, founded by industry veterans Tenel Tayar, Chad Braun and Kerr Taylor, announces that it, through an affiliate, has acquired Ella Oaks Shopping Center.
Fifth Corner continues to execute the time-tested investment strategy with the acquisition of Ella Oaks Shopping Center. Ella Oaks is a 28,056 square foot shopping center located at the southwest corner of Ella Blvd. and 34th Street in the GOOF (Garden Oaks/Oak Forest) and Greater Heights submarket of Houston Texas. The property is located on 2.46 acres of land, has six different points of vehicular access and enjoys an average household income within a 1-mile radius of $131,000 with 126,000 people in a 3-mile radius.
The property is home to 15 different tenants, including BB's Café, Aladdin, Specialized Bikes, Oak Pointe Pediatric Dentistry, Sunday Press and other essential and experiential tenants that are woven into the fabric of the local community.
Garden Oaks and the Greater Heights is one of the most dynamic submarkets in Houston, When we land in the middle of the 5D's of our investment framework with the wind in the sails of the community, we usually find opportunities better than we expected…and I think Ella Oaks is just that!"
Tenel Tayar, Co-Founder and Managing Partner at Fifth Corner.
Fifth Corner focuses on 'creating value on community focused Irreplaceable CornerTM properties' within the major markets of Texas.
Our Irreplaceable CornerTM investment thesis has been honed over 30-years and proven through multiple economic and real estate cycles, We believe that our locational investment focus combined with our vertically integrated and dedicated operations team of professions will continue to create long term value for investors."
Chad Braun, Co-Founder and Managing Partner at Fifth Corner.
Fifth Corner Property Fund I, LP was fully invested as of April 2021 into eight different real estate projects, and realized its first monetization in May 2021 when it sold Sugarland Plaza, generating a 2X equity multiple and an 18% IRR on that property.
For its current investment vehicle, Fifth Corner has two additional properties under contract in Fifth Corner's target markets with an anticipated closing in early April 2022.
ABOUT FIFTH CORNER
Fifth Corner is a Houston-based real estate company investing in and creating value on community-focused Irreplaceable Corners™ located in the fastest growing metros. The real estate strategy and culture are time-tested and refined over 30 years to create value for the properties, investors, and communities.
REAL ESTATE INVESTMENT
Douglas Elliman | September 22, 2021
New Valley Ventures, an investment vehicle managed by Douglas Elliman's parent company, Vector Group, announced a renter rewards program via strategic investment in Bilt Rewards, the first loyalty program and co-brand credit card for renters. The investment comes as Douglas Elliman officially joins the Bilt Rewards Alliance, a network of more than 2 million rental units across the country where renters can enroll in the loyalty program to earn points on rent with no fees.
We are proud to support and align ourselves with Bilt Rewards as its program fills a gap in the market to set renters up for financial success and encourage a path towards homeownership.
- Scott Durkin, CEO of Douglas Elliman.
New Valley Ventures is dedicated to investing in innovative tech-driven solutions for the greater real estate community.
- Dan Sachar, Managing Director of New Valley Ventures and Vice President of Enterprise Innovation for Vector Group.
The funding round, which also counts Mastercard, Wells Fargo and other leading real estate property owners including AvalonBay Communities, Equity Residential, GID, Lennar, The Moinian Group, Morgan Properties, Starwood Capital Group, and Related Group as investors, will propel Bilt Rewards to further expand its loyalty partner network, grow its organic distribution channels, and open the Bilt Rewards platform and Bilt Mastercard more widely to the public.
Launched this June by Kairos HQ, Bilt Rewards is the first-ever loyalty program and co-brand credit card for renters, enabling the country's 109 million renters to finally earn points on their largest monthly expense with no fees. By offering the Bilt Rewards program to tenants across Douglas Elliman's rental portfolio including new development projects, residents can now earn points with every on-time rent payment.
Additionally, Douglas Elliman residents will be among the first to receive an invitation for the Bilt Mastercard, the first credit card that allows users to pay their rent with no fee. With the card, Douglas Elliman residents can earn 1x points on every dollar of rent, 2x points on travel purchases, 3x points on dining, and 1x points on all other non-rent purchases, allowing them to maximize rewards potential, all with no annual fee.
Through Bilt, renters can redeem points for travel across over 100 major airlines and hotels, fitness classes at the country's top boutique studios, and can even use points towards rent credits or a future down payment on a home. When paying rent through the Bilt Rewards app, members can also have their rent payments reported to the credit bureaus at no cost, which can help build credit history for millions of young renters.
New Valley Ventures continues to invest in promising, next-generation technologies in order to propel the real estate industry into the future and further benefit the agent, renter and buyer experience. In doing so, New Valley Ventures utilizes its deep industry knowledge through Douglas Elliman to advise on meaningful digital development, tech solutions and financial software.
ABOUT VECTOR GROUP
Vector Group is a holding company for Liggett Group LLC, Vector Tobacco Inc., New Valley LLC and Douglas Elliman Realty, LLC.
ABOUT DOUGLAS ELLIMAN
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and one of the largest independent residential real estate brokerages in the United States. With approximately 7,000 agents, the company operates approximately 100 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 61 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial.
ABOUT BILT REWARDS
Launched by Kairos HQ in June 2021, Bilt Rewards is the first-ever loyalty program that allows renters to earn points on rent with no fees and builds a path towards homeownership. Through a partnership with the nation's largest real estate owners including Avalon Bay Communities, Equity Residential, Related, Starwood Capital Group and more, Bilt Rewards enables renters in more than two million units across the country to earn points just by paying rent. Bilt Rewards boasts one of the highest value rewards programs on the market today, including one-to-one point transfers to 9 loyalty programs allowing travel across over 100 major airlines and hotel partners; fitness classes at the country's top boutique studios including SoulCycle, Rumble and Y7; limited-edition and exclusive collections of art and home decor through the Bilt Collection, and the ability to use Bilt points for rent credits or towards a future downpayment. Bilt has also partnered with Mastercard to create the Bilt Mastercard - the first and only credit card that can be used to pay rent with no fees.