Foreign funds are targeting the "cost-effective" Japanese real estate | Enjoy reading the globe

Reading Global(2022.02.10)

Foreign funds are targeting "cost-effective" Japanese real estate

Japan Economic News reported on the 10th that overseas investors are expanding their investment in Japanese real estate. In the context of rising global real estate prices, Japan, which can raise funds at low interest rates, has become a target for foreign investment as a relatively cheap investment target.

Japan's Seibu Holdings hotel and entertainment facilities tender was tendered by a number of foreign funds, and the Government of Singapore Investment Corporation (GIC) is expected to win the bid for about 150 billion yen.

Under the COVID-19 pandemic, foreign funds' investment in Japanese real estate remains active. According to statistics from real estate service company CBRE, the purchase volume of overseas investors will be about 1.1 trillion yen in 2021, exceeding 1 trillion yen for three consecutive years. Overseas investors accounted for about 30% of the overall trading volume and became major buyers.

Large funds, mainly in Europe and the United States, are increasing their allocation to the Asia-Pacific region due to signs of overheating in the local real estate market. Under this trend, Japan, which has one of the largest markets in Asia and has relatively complete legislation related to real estate investment, has attracted attention.

Another reason why real estate in Japan is getting attention is the low financing rate. When the fund purchases real estate, in order to improve the efficiency of investment, it will pay 50%-70% of the purchase amount through loans from financial institutions. The greater the yield difference between the annual rental income divided by the purchase price and the loan rate, the more attractive the market for the fund.

In Japan, which maintains ultra-low interest rates, this yield spread is stable and large. While property prices are near historic highs, Japan is expected to achieve higher returns compared to the world.

As a funding provider, domestic financial institutions in Japan are also positive about real estate-related loans that are expected to receive fee income in addition to interest rates.

McDonald's is going to open a virtual restaurant and enter the meta-universe

Lianhe Zaobao reported on the 10th that fast food giant McDonald's wants to open a virtual restaurant, insert a foot in the meta-universe, and share a piece of the pie.

McDonald's has applied for a meta-universe registered trademark for their product names and brands. While these applications may be intended to protect their intellectual property from being used in the metaverse by others, the market believes that this is the giant's first step towards the metaverse world.

According to the financial media Benzinga, Josh Gerben, a trademark attorney at law firm Gerben Law, said McDonald's has applied for trademarks for its McDonald's and McCafé brands.

McDonald's registered trademark applications include virtual food and virtual beverage products, downloadable multimedia files, including Non-Homogeneous Tokens (NFTs), and online entertainment services such as virtual concerts.

According to the source, the largest part of the application documents submitted by McDonald's is: "to operate a virtual restaurant featuring actual and virtual goods, and to operate an online virtual restaurant featuring home delivery."

McDonald's officially made the above trademark application at the beginning of this year, after launching the Lunar New Year meta-universe experience "McDonald's Zodiac Hall".

French Renault has expressed support for a moratorium on deep-sea mining

Reuters reported that French automaker Renault said on the 10th that the company supported the suspension of deep-sea mining, promising to exclude subsea metals from its supply chain.

In October, French President Emmanuel Macron identified deep-seabed exploration as a key investment in France, highlighting the potential for access to "rare metals" and a better understanding of marine ecosystems. The French government is Renault's largest shareholder, holding 15.01% of the shares.

Renault's decision adds to the pressure on the fledgling deep-sea mining industry, which aims to extract battery metals such as cobalt, nickel and manganese from nodules in the seabed.

A spokesman for Renault said the company's call for a moratorium on mining was consistent with the government's position, as France "plans to invest in seabed exploration to identify potential solutions for sustainable mining."

Macron, who did not support seabed mining, said in a speech on the "France 2030" investment plan delivered in October: "I have heard the voices of debate, I am not talking about mining, I am talking about exploration." ”

Renault's logo appeared on the website of a deep-sea mining campaign that listed companies that supported a moratorium on mining, including Google, Samsung SDI and BMW Group. The companies that signed the moratorium pledged to exclude such metals from their supply chains and would not fund deep-seabed mining.

The moratorium requires clear proof that any deep-sea mining is carried out in a manner that ensures the protection of marine habitats.

The International Seabed Authority (ISA), a United Nations agency, is drafting regulations on seabed mining on the high seas. The Council of the International Seabed Authority, the executive organ of the International Seabed Authority, will meet at its next meeting from 21 March to 1 April.

Sotheby's auction sneakers fetched a staggering $352,800

Lianhe Zaobao reported on the 10th that Sotheby's launched 200 sneakers jointly launched by designer Virgil Abloh, international brands Louis Vuitton and Nike's "Air Force 1", as well as specially matched Louis Vuitton pilot suitcases, with a total transaction price of 25.3 million US dollars, far exceeding the original target.

One pair of size five sneakers hit a staggering $352,800, 23 times higher than the previous estimate of $15,000.

Sotheby's originally thought that the total value of the auction would be at the level of $3 million, but it did not expect to sell for more than eight times the amount. This includes the above-mentioned most valuable sneakers of all time.

In total, the charity auction attracted 1,200 bidders and gave more than 10,000 bids. Of this group of international buyers from 50 different countries, 40% of them are from Asia.

The auction of 200 pairs of Louis Vuitton and Nike "Air Force 1" special edition sneakers designed by Ablo, as well as the exclusive Louis Vuitton pilot bag, are a new series of sneakers cooperated by Ablo, Louis Vuitton and Nike. The bid price for these sneakers started at $2,000.

The shoe sizes range from 5 to 18. The most competitive were the size 8 sneakers, which attracted more than 1,400 bids in total. By size, the no. 9 sneaker had the highest total transaction value, with a total value of $3.4 million for 26 pairs of no. 9 sneakers.

New technologies for deplasticization, such as plant materials and packaging equipment, are attracting attention

Kyodo News Agency reported on the 10th that in the context of the global promotion of de-plasticization, the new technologies owned by companies in Japan's Kansai region have attracted keen attention.

In January, Panasonic began mass production of "kinari" made of fibers mixed with plastic resin from plants. It contains 55% of the "cellulose fibers" that decompose the cutting scrap of inter-harvested wood and ordinary wood, which is stronger than plastic. Panasonic has applied homogeneous hybrid material technology, which is indispensable in battery production, and the molding experience accumulated in the manufacture of home appliances in its main business.

Because the used whiskey barrels and bamboo can produce different shades and aromas according to the raw materials used, the person in charge advertised, "It is not a simple substitute, and the added value has also been improved." In cooperation with The Adventure World, a leisure facility in Shirahama-cho, Wakayama Prefecture, the mugs made by reusing bamboo left over from pandas have become commodities, and we have established a production capacity of 10 tons per month, aiming to popularize it mainly, mainly daily necessities. In the future, Panasonic intends to expand this use to the field of home appliances that make heavy use of plastics.

Omron has focused on developing thermostats that are used when pressing packaging with thermal energy. Instead of using paper or biodegradable film for plastic, subtle temperature changes can make the adhesion too weak or over-focused, so the temperature needs to be carefully adjusted. After adjusting the position of the sensor and using artificial intelligence (AI) in temperature control, ten times the accuracy control is achieved, so that the frequency of defective product generation is suddenly reduced.

The United States and Europe, which are considered environmentally conscious, are actively promoting the adoption of these technologies. It is estimated that by promoting the use of alternative materials, a cumulative reduction of 1 million tons of plastic waste could be achieved each year.

(This article is compiled from Nihon Keizai Shimbun, Lianaia Zaobao, Reuters, Kyodo News Agency)

Economic Observation Network intern reporter Zhou Yuqing sorted out