Following our recent trip to Japan, the stock was sold. We expect continued weakness in the Japanese office and condominium market as companies downsize and unemployment rises. The other big risk is an external interest rate shock from a global sell-off in government bonds over the next 12-24 months, in the face of continued government stimulus. Following the huge rally in the share price from the March lows, we were happy sellers.
Mitsui Fudosan. Listed Japanese property counters have shrunk so far they have all but disappeared from investors' radar screens; 13 years ago the theoretical land value of the Imperial Palace and Central Tokyo together were worth more than the whole of California. All property prices in Japan have been in freefall for over a decade. However, vacancy rates in prime commercial property are shrinking, new building starts have slowed and yields are now above the cost of borrowing. This last happened in 1981. The real estate sector offers outstanding value. Mitsui is neither the cheapest nor the most geared to this recovery, but is conservatively run and should continue to rise as conditions improve.
| Sedol |
Type |
Price |
Date |
| 6597603 |
Sell
|
JPY 1736.461 |
31/07/2009 |
| 6597603 |
Buy |
JPY 2419.50 |
28/02/2006 |
| 6597603 |
Buy |
JPY 2247.222 |
20/01/2006 |
| 6597603 |
Buy |
JPY 2150.00 |
19/01/2006 |
| 6597603 |
Buy |
JPY 1290.00 |
01/02/2005 |
| 6597603 |
Buy |
JPY 1215.60 |
15/11/2004 |
| 6597603 |
Buy |
JPY 1176.40 |
05/11/2004 |
| 6597603 |
Buy |
JPY 1179.10 |
04/11/2004 |
| 
