The importance of strategies of real estate held by companies is continuously increasing. BDO Toyo & Co. supports the further growth of our clients by providing portfolio including replacements of assets and advice concerning real estate appraisal and REIT with experts of real estate industry.
The real estate industry has broad business bases and a wide range of business forms exist in the industry. It is playing an important role in the Japanese economy considering the number of business operators and the size of assets. However, it is constantly and severely affected by the impact of economic fluctuations and facing a wide range of issues due to the diversity of business forms.
There are a wide range of laws and regulations governing the real estate industry. Especially with the enforcement of the "Act on Specified Joint Real Estate Ventures" and "Act on Securitization of Assets," there is progress in the implementation of laws and establishment of accounting processes for asset securitization.
In preparation for the adoption of the International Financial Reporting Standards (IFRS), various accounting standards for evaluation and disclosure of real estate have been adopted, increasing the importance of strategies and management of real estate held.
We, at BDO Toyo & Co., actively provide advice on asset portfolios including complete asset reallocation, financial analysis, asset evaluation, composition and diversification of investment portfolio, M&A, and more. With a team of professionals, we help clients to grow further as an advisor in the real estate business.
The business environment facing the construction industry in Japan has changed significantly since 2011 when the Great East Japan Earthquake occurred. In addition to the demand from post-earthquake reconstruction, a series of redevelopment projects are up and running in line with the holding of the 2020 Tokyo Olympic and Paralympic Games. These have caused hikes in the cost of labor and materials. However, supply and demand seems to have been completely reversed. One of the growth areas is investments in the construction of infrastructure outside Japan which is expected to contribute to a constant increase in overseas sales.
Meanwhile, the construction industry has intrinsic issues of insufficient cost management against cost fluctuation factors including the cost of labor and materials that are specific to the industry. There is also the issue of a stratified subcontracting system.
There is strong demand for new public investments in rural areas as the reconstruction business has run its course.
In addition to general accounting audit and internal control, we at BDO Toyo & Co. provide advanced services in strategic areas such as providing advice on cost management on cost fluctuation factors through the understanding of a business environment unique to the construction industry and supporting M&A to achieve future growth.