KDR will invest primarily in residential, healthcare and accommodation facilities as its target investments. In making investments, KDR will stringently select real estate etc. where stable demand from tenants and users and long-term stable revenue flows can be projected on the basis of an individual analysis of the attributes of a particular property, as well as regional analysis taking into account location, etc.
KDR carries out diversified investment in real estate located in the Tokyo Metropolitan Area (the principal cities in Tokyo, Kanagawa, Saitama and Chiba Prefectures), an area with the largest economic and population concentration in Japan. KDR also diversifies its investments by investing in real estate in other regional areas (cities designated by cabinet order and other regional cities) with the objective of mitigating the risk of concentrating investments in a single region subject to changes in regional economies and real estate market, earthquakes, typhoons and other natural disasters, population dynamics and other factors. However, KDR may invest in areas other than the above if the characteristics of particular real estate suggest that stable demand from tenants and users can be projected.
KDR carries out investments in real estate according to standards for investment size as shown in the table below, which take into account the following factors.
- Liquidity in the real estate market
- Securing diversified property size
- Securing diversified tenants or users
- Economics of the investment from the perspective of operation and management of the property
However, real estate may be acquired in the cases set forth below, even if the real estate targeted for investment does not meet the minimum investment size standard.
- In the case of a bulk acquisition of real estate, when the bulk includes real estate with acquisition prices that fall below the minimum investment size standard
- In the case where, as a result of the negotiation of acquisition terms for real estate that meets the investment standard, the property’s acquisition price falls below the minimum investment size standard, but has an appraisal value that exceeds the minimum investment size standard
- In the case the facility has an important relationship to properties already owned