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The
Mitsubishi Monitor talks with
Shigeru Takagi, president of Mitsubishi Estate, about his
company's broadening activity in real estate development.
You
held the ground-breaking recently for a very high-profile
project in London.
We began work in October on three buildings at Paternoster
Square in London's financial center, the City. We expect
to complete them in 2003. And we already have signed lease
contracts for all the buildings with three distinguished
tenants: the London Stock Exchange, the investment banking
house Goldman-Sachs, and the British real estate brokerage
C.B. Hillier Parker.
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The president shows off his
London project. |
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Mitsubishi
Estate is going to be landlord to the London Stock Exchange?
That's right. Electronic trading has reduced the need for
floor space. The London Stock Exchange's present quarters
are more spacious than the exchange requires for modern
trading. Our project got under way just as the exchange's
management was looking for another site in the City.
Tell us more.
Since 1989, we have owned a stake in about 3.7 acres near
St. Paul's Cathedral. And we have been sole owner since
1995. St. Paul's is a London landmark, and we opted for
seven- and eight-story designs that preserve the view of
the cathedral. They will provide efficient, high-quality
office buildings in one of the world's most-desirable headquarters
locations.
You also
are revitalizing Tokyo's central business district, Marunouchi.
Mitsubishi Estate is the largest landowner
in Marunouchi. And we led the redevelopment of the district
in the 1960s. Back then, the authorities still imposed tight
limits on building height. We used low ceilings and other
measures to maximize usable floorspace within the height
restrictions. Japan was in the midst of rapid economic growth,
and demand for office space was burgeoning.
In the 1970s and 1980s, Tokyo fostered
business subcenters and relaxed its building regulations
to promote modern, high-rise construction. The fancy new
buildings siphoned away tenants from central Tokyo.
We responded with another round of redevelopment
to reaffirm Marunouchi's identity as Tokyo's premier business
center. Our program is twofold: Replace aging structures
with attractive, high-rise buildings that support the latest
technologies for information networking. And attract stylish
restaurants, boutiques, and other retailers to the district.
Employers are eager to provide employees
with a pleasant working environment. Chic shops also have
the benefit of drawing people to Marunouchi who don't work
there. A healthy mix of people in the district helps invigorate
the atmosphere. |
You have owned much of your Marunouchi land for a century.
But you also are increasingly active in acquiring new property
and in undertaking developments with partnersn.
Our investors expect us to maximize return
on our asset portfolio. To fulfill their expectations, we
need to leverage that portfolio by generating new kinds
of value in real estate development. We possess a huge pool
of expertise in planning and managing real estate developments,
both commercial and residential. Limiting our activity to
projects where we are the sole owner of the property would
restrict our growth prospects. We are growing by finding
new ways to exercise our capabilities.
That means looking
beyond Marunouchi.
It sure does. Information is the lifeblood of the real estate
industry. Participating in a broad geographical range of
projects helps us keep our finger on the pulse of the market.
What you read in the newspaper or hear on television is
yesterday's news. We need to be in the marketplace where
the news is happening.
Mitsubishi
Estate has taken several environmental initiatives.
We choose designs and air-conditioning
systems that minimize energy consumption. We recycle the
materials--more than 70%--from old buildings. We promote
recycling of paper and other waste among our tenants. We
plan suburban developments to blend in smoothly with the
natural surroundings.
Real estate projects are a huge and much-noticed
factor in environmental quality. We therefore have a special
responsibility to set a good example.
You are the landlord
for several Mitsubishi companies. Do you discuss your business
plans and strategy at the monthly Kinyokai luncheon meetings,
which top executives of 28 Mitsubishi companies attend?
No. Kinyokai meetings are just for staying
in touch socially and for hearing presentations by experts
in fields of general interest, such as economics and the
environment. Any decisions that affect individual companies
are a subject for separate discussions.
Why did you join
Mitsubishi Estate?
When I was in junior high school, our
social studies teacher drew three corporate logos on the
blackboard one day: Mitsubishi's three-diamond mark and
the symbols for Mitsui and Sumitomo. Japan still was rebuilding
after the devastation of the war. I remember being proud
and amazed to hear the teacher say that people around the
world knew and trusted those three brands. I especially
liked the look of the Mitsubishi emblem and decided then
and there that I would join a Mitsubishi company.
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