Outline of the JFE Group
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Backed by the JFE Group's extensive technical capabilities, JFE Urban
Development Corporation engages in a wide variety of projects revolving
around its three core activities -- development of large scale complexes,
supply of condominiums, and asset utilization. Through the development
and management of comfortable and highly creative facilities that add welcome
color to people's daily lives -- from home life through workstyles to
gathering together for leisure purposes -- we aim to provide an urban environment
in which people can enjoy their lives to the full.
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Noriaki Shigemi
President |
Business Overview: Achieving sales and profit growth as consumers become more selective towards properties
In the year ended March 2005, the business environment was characterized by a continued large supply
of newly built condominiums in Tokyo and adjacent prefectures, and the maintenance of a high
average level of contract conclusions during the first month they were offered for sale. However, there
was a widening gap between properties in terms of whether or not they sold well, and sales competition
became increasingly fierce. Amid this environment, we proceeded steadily with the development
of large parcels of our own land, and stepped up the marketing of condominiums. As a result, consolidated
net sales rose by 20.4% to ¥31.5 billion, operating income was up by 64.8% to ¥2.4 billion,
and ordinary income grew by 63.6% to ¥2.2 billion.
Fundamental Strategy: Promoting the development and effective use of large plots of land
| No. of Condominium Units |
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In the year ended March 2004, we commenced full-scale activities in connection with the Yokohama
Yamanouchi Development Project, which entails the development of a waterside urban complex with
926 condominiums in high-rise structures, commercial facilities and office buildings on seven hectares
of idle land on the site of Yokohama's former Asano Dockyard. The reporting period saw the
start of the construction of the Cotton Harbor Towers condominium complex, and also the start of
sales. (As of May 2005, all 926 units had been sold.) In the Watarida District of the city of Kawasaki
we have also started on the THINK (Techno Hub Innovation Kawasaki) project, focusing on both
the development of the facilities and the attraction of new tenants. This is a plan to make effective use
of existing research facilities (floor area of approximately 50,000 square meters) by converting them
into a science park.
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| Keihin Building (Core building of THINK) |
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Diagram of the THINK development |
Strengthening the condominium business
JFE Urban Development is developing condominiums to meet the requirements of a variety of lifestyles
through its unique Grand Scena series of developments based on a concept of high-quality
condominium buildings constructed to highly original designs, targeted at the estimated three million
people in the Tokyo area who are the children of the baby-boomer generation. During the term, we
sold 1,210 units, principally in the Grand Scena series.
Progress under Medium-Term Business Plan: Earnings growth primarily from development of large
parcels of company land and condominium sales in Tokyo metropolitan area
The company did not meet its consolidated sales target, but did meet other financial targets, including
those for consolidated ordinary income and consolidated ratio of ordinary income to net sales (ROS).
In the final year of the first Medium-Term Business Plan, we will devote even greater efforts to ensuring
that its targets are attained.
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CONSOLIDATED OPERATING RESULTS |
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Billions of yen |
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(Years ended/ending March 31) |
2003
Actual (approximate) |
2004
Actual |
2005
Actual |
2006*
Forecast |
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2006
Plan's original target |
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Ordinary income |
0.3 |
1.3 |
2.2 |
2.3 |
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4.0 |
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Return on sales (ROS) |
1.0% |
5.0% |
7.0% |
7.2% |
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8.5% |
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*Estimated figures for the year ending March 2006 are those declared as of May 12, 2005. |
Issues to Address: Steady progress in the Yokohama Yamanouchi Development Project
In the Yokohama Yamanouchi Development Project we will continue our steady progress in the sectors
of the ultrahigh-rise condominiums already started, and ensure the prompt start of operations
in sectors not yet started. At the same time, we will devise concepts for nonresidential developments,
and proceed with our marketing to prospective tenants. In the THINK project, we aim to increase
earnings by attracting new tenants, and in our condominium development business we will continue
to acquire new properties, principally in Tokyo and nearby areas of surrounding prefectures, and to
supply original, high-quality products. Through these efforts, we aim both to increase earnings and
to enhance our project-implementation capabilities.
Rendering of the Yokohama Yamanouchi Development Project
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