Tokyo Tatemono was sold purely on valuation grounds; there are now far cheaper property stocks in Japan.
Tokyo Tatemono is a Tokyo-based real estate developer which has the strongest land bank in the sector - it already has acquired 90% of the land it needs for 2007 condominium sales. As vacancy rates continue to fall and rental income rises we expect conditions in the sector to remain favourable over the coming 2-3 years, even if we do conservatively assume a slow-down in rental growth rates. Tokyo Tatemono is well-placed to benefit from this, and assuming further yield compression we see 38% upside in the company's adjusted net asset value.
| Sedol |
Type |
Price |
Date |
| 6895426 |
Sell |
JPY 1502.461 |
05/10/2007 |
| 6895426 |
Buy |
JPY 1400.303 |
08/05/2006 |
| 
