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Message from the Chairman |
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Ensuring the Sound Development of Japan's Real Estate Securitization Market
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Hiromichi Iwasa
Chairman of ARES
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The Association for Real Estate Securitization (ARES) is a nonprofit public benefit organization established to ensure public confidence in Japan's real estate securitization products and to protect investors.
The turmoil in international financial and capital markets that intensified after the Lehman crisis in autumn 2008 is subsiding; however, Japan's real economy continues to show signs of uncertainty about the future.
Turning to the real estate investment market, there are signs of improvement in the inflow of funds. Financial institutions and investors are gradually gaining confidence in Japan's market with the creation of the Real Estate Market Stabilization Fund and the move to restructure J-REITs. Moreover, J-REITs have restarted public offerings, and new private funds have been formed.
To strengthen this recovery in confidence, it is crucial that we secure a path for the introduction of long-term, stable funds to the real estate investment market. To do this, we need to continue to overhaul the real estate securitization framework and make Japan's financial markets more vibrant; deliver information to all domestic and international investors and engage in dialogue with them; and improve self-discipline and accountability among businesses.
We are required to build a new growth strategy that sets its sights on the post-financial crisis era and to respond properly to the international standardization of accounting and other rules and the trend toward strengthening international financial regulations based on the lessons learned during the recent crisis.
ARES is now conducting the following seven priority activities to achieve our third medium-term goal (FY2009-FY2011) of revitalizing Japan's real estate investment market and restoring confidence:
(1) Devise innovative measures to revitalize Japan's real estate investment market and spearhead the implementation of the measures;
(2) Create an environment that meets the needs of institutional investors;
(3) Engage in PR and awareness-raising efforts from a long-term perspective;
(4) Conduct surveys and research on improving real estate securitization product characteristics in light of market needs;
(5) Develop capable human resources and ensure regulatory compliance;
(6) Expand the overseas network; and
(7) Strengthen ARES with the aim of enhancing its presence in the industry.
Fully recognizing the importance of its mission, ARES will ensure the sound development of Japan's real estate securitization market by developing and improving market infrastructure, delivering information to investors, and promoting deregulation to enable the development of products that match diverse investor needs while also protecting investors.
June 2010 |
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