Sony Seeks To Foray Into Realty By August


News: Japan-based electronics company Sony is reportedly seeking to foray into the real estate business by August 2014 and plans to launch an initial public offering in the coming three years. The real estate division of the firm will be known as Sony Real Estate Corporation and will start with an initial capital of USD2.4mn. The real estate arm will be headquartered in Tokyo and provide property services such as leasing management, property management, brokerage and consulting on real estate. Sony will disclose more information about the new business once it starts operating. The company will reportedly fund its property venture through the database it built by divesting its Vaio and PlayStation products.

BMI View : The long-term outlook for Japan ' s real estate sector nevertheless remains overwhelmingly positive as the market continues to reap the benefits of Prime Minister Shinzo Abe's economic stimulus plans, dubbed 'Abenomics'. Aggressive monetary easing by the Bank of Japan has driven a 20-25% devaluation in the value of the yen against the dollar, making real estate investments particularly attractive for foreign investors with a suitably long-term investment horizon. Bank lending continues to improve, with the average balance of lending increasing by 1.9% y-o-y in Q313, driven primarily by large lot loans for property, indicating a continued desire to increase their real-estate lending portfolio .

This article is tagged to:
Sector: Real Estate
Geography: Japan

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