Information on REESA

The Association is a member of the Real Estate Equity Securitization Alliance (REESA), which consists of seven real estate securitization associations from various regions around the world, and we regularly exchange opinions and share information.

REESA is an acronym for the Real Estate Equity Securitization Alliance, and in addition to the Association, it is made up of seven associations: the Asia Pacific Real Assets Association (APREA), the British Property Federation (BPF), the European Public Real Estate Association (EPRA), the National Association of Real Estate Investment Trusts (Nareit), the Property Council of Australia (PCA), and the Real Property Association of Canada (REALPAC).

Main achievements of REESA

We are collaborating with REESA, which is comprised of real estate securitization associations from seven regions around the world, and are engaged in a variety of activities.

Submission of a joint letter of opinion from REESA association members

Response to trends related to the OECD Secretariat's review of international tax rules

Regarding the taxation of income attributable to subsidiaries located in jurisdictions with low tax rates, while consideration on policies, etc. are on-going (Pillar II: Global Minimum Tax), which would impose a tax on income up to the internationally agreed minimum tax rate in the jurisdiction where the parent company is located, we submitted a letter of opinion and a follow-up letter to the European authorities in order to exclude REITs from the application of the minimum tax rate.

Response to governance and an assessment system in GRESB^※

We submitted a statement to GRESB regarding changes in governance structure and an assessment system due to ownership changes.

• ※The name of the annual benchmark assessment and operating organization that measures the degree of environmental, social, and governance (ESG) considerations of real estate companies and funds. It was established in 2009 and centered around major European pension fund groups that lead the Principles for Responsible Investment (PRI). In real estate investment, we have adopted an assessment system that measure the degree of consideration given to ESGs on an annual basis.

Activities related to the Alternative Investment Fund Managers Directive (AIFMD)

Regarding the Alternative Investment Fund Managers Directive (AIFMD), which may have an impact on marketing activities in Europe by J-REITs, we are carrying out lobbying activities, etc., to the European authorities in collaboration with EPRA, a REESA member.

• FY2020
  Submitted opinions in response to the public consultation conducted by the European Commission (EC), in particular regarding the exclusion of J-REITs from application and the continuation of the private placement regime by country.
• FY2019
  Made inquiries to European authorities (the European Securities and Markets Authority (ESMA) and the European Commission (EC)) to confirm that the series of processes related to the expansion of the passport regime to non-EU countries has been suspended since the ESMA recommendation (“advice”) in 2016, and that the National Private Placement Regime (NPPR) will remain in place for three years after the passport is activated. We also gathered information on the future plans of European authorities regarding the review of AIFMD.
• FY2018
  Visited the headquarters of the European Securities and Markets Authority (ESMA) and carried out lobbying activities for the Alternative Investment Fund Managers Directive (AIFMD), which could potentially have an impact on J-REIT marketing activities in Europe.

Other initiatives

Organizing the ARES Global Real Estate Investment Forum 2019

With the Association and REESA co-hosting, the “ARES International Real Estate Investment Forum 2019” was held in Tokyo on Friday, March 8, 2019, with a total of over 1,200 attendees, including participants from 12 countries.

At the beginning of the event, participants were shown a video message from then-Prime Minister Abe, in which he referred to the importance of the real estate securitization market and his hopes for the future. In the keynote speeches, speakers Mr. Masaaki Shirakawa (then former Governor of the Bank of Japan), Mr. Chris Brooke (then President of the Royal Institution of Chartered Surveyors (RICS)), and economist Ms. Yoko Takeda provided an overview of the economy and real estate investment market from a global perspective. In the individual sessions, the speakers, who are active on the front lines, provided an outlook on trends in the international real estate investment market, and there was in-depth discussion on recognition of issues and future visions from the perspectives of each country's management entities, institutional investors, and others. The networking reception was also attended by many participants, including people from Member companies and Masters, as well as market professionals from Japan and overseas, making it a very meaningful event from the perspective of human resource exchange.

Related Information: Details on this forum’s program

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