re: Ann: Preliminary Update on Property Reval... Coppertop and...

re: Ann: Preliminary Update on Property Reval... Coppertop and itrack, Nihombashi is located in Tokyo, not Osaka. From the HY webcast, this building has already been filled, but earning "not reflected" in the first half numbers. The two office buildings in Osaka are Osaka No3 and Osaka No4, both are right at the city centre of Osaka.

I just went back to the land value trend report (http://tochi.mlit.go.jp/english/01_04.html), the city centre of Osaka was really hard hit. The price dropped 3-6% in the quarter in Q1 (Jan to March) compared to the previous quarter. I guess the 2nd quarter numbers are pretty bad too (actual numbers are not out yet for the Q2).

Osaka No3 was 86% occupied, while No4 was 97%, based on information from 30/6/09. My understanding of the valuation is based on "comparable" recent sales. Cap rate is mostly used to measure the return and the property market.

The land value trend does looks like that the price is stablizing, especially in the Tokyo area. Osaka area is a little behind. The Q2 numbers (should be available by August) will give us a better view.

Cheers and DYOR. Snowfree