Sakura Group Reports Mixed Results from Commercial Property Investment
The Sakura Group. a Japanese real estate investment company, has reported mixed results from its operations according to the company’s Japanese executive director. The Sakura Group has invested more than 76 million dollars in a variety of projects over the past 13 years that range from commercial buildings and hotels, to serviced offices and serviced apartments.
Some of the projects by the Sakura Group have prospered while others are facing effects of the economic downturn according to the Sakura Group’s executive director. The properties that are prospering are the serviced office and serviced apartment projects with the hotel properties significantly falling behind.
The company’s other investment projects in Myanmar that include serviced offices and serviced apartments are doing well. These projects were established beginning in 1998. Downtown Yangon’s Sakura Tower, a 36 million dollar investment project, is one of the city’s most successful serviced office rental spaces. The Sakura Group has also invested in five additional condominiums and serviced apartment projects in Yangon which total of 25 million (US).
The serviced office occupancy in Sakura Tower is currently at 60pc of floor space and the demand for office space in this facility is rapidly increasing. Most of the clients in Sakura Tower are foreign oil and gas companies which usually continue to maintain office space during periods of economic downturn.
The serviced apartment properties are prospering with an occupancy rate of 99pc and the Sakura Group plans to raise rentals due to the increase in demand for this type of accommodation.
The Sakura Group has invested $15 in Bagan Thiri Pyitsaya Sakura Hotel since 1996 and the property is experiencing a loss due to the economic downturn as the economic climate is appearing to hit this sector very hard. The hotel was achieving steady profits until 2006-07 when profits began to decline and last year profits were down by 60 percent with occupancy rates running at 30 pc.
For additional information on serviced office and serviced apartment availability in Japan, log onto Move and Stay at www.moveandstay.jp.
Some of the projects by the Sakura Group have prospered while others are facing effects of the economic downturn according to the Sakura Group’s executive director. The properties that are prospering are the serviced office and serviced apartment projects with the hotel properties significantly falling behind.
The company’s other investment projects in Myanmar that include serviced offices and serviced apartments are doing well. These projects were established beginning in 1998. Downtown Yangon’s Sakura Tower, a 36 million dollar investment project, is one of the city’s most successful serviced office rental spaces. The Sakura Group has also invested in five additional condominiums and serviced apartment projects in Yangon which total of 25 million (US).
The serviced office occupancy in Sakura Tower is currently at 60pc of floor space and the demand for office space in this facility is rapidly increasing. Most of the clients in Sakura Tower are foreign oil and gas companies which usually continue to maintain office space during periods of economic downturn.
The serviced apartment properties are prospering with an occupancy rate of 99pc and the Sakura Group plans to raise rentals due to the increase in demand for this type of accommodation.
The Sakura Group has invested $15 in Bagan Thiri Pyitsaya Sakura Hotel since 1996 and the property is experiencing a loss due to the economic downturn as the economic climate is appearing to hit this sector very hard. The hotel was achieving steady profits until 2006-07 when profits began to decline and last year profits were down by 60 percent with occupancy rates running at 30 pc.
For additional information on serviced office and serviced apartment availability in Japan, log onto Move and Stay at www.moveandstay.jp.
Labels: accommodations Japan, sakura group, serviced apartments, serviced offices
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