Differentiated Value-Add Business Model
Ichigo's business model takes full advantage of its real estate sourcing and value-add capabilities by acquiring assets, improving asset value through value-add enhancements, selling assets, and investing the proceeds into new acquisitions. It is a high-turnover business model in which profits are generated by adding value to assets and selling those assets to external buyers or to one of the REITs that Ichigo manages.
Focusing primarily on small to mid-size buildings – which comprise 90% of the real estate market – Ichigo advocates the effective re-use of existing assets. In order to accomplish this, Ichigo draws upon the environmental and construction expertise it has developed, as well as its deep understanding of building and construction regulations to add value to existing buildings, such as by rectifying building code issues.
By taking advantage of Ichigo's warehousing capabilities, Ichigo's REITs also benefit from Ichigo's Value-Add know-how as it improves the value of acquired assets by finding tenants, strengthening earthquake resistance, and renovating the building's common areas and exterior during the warehousing period.1
1Warehousing - The practice by which an asset is temporarily held by the sponsor (Ichigo) prior to the REIT acquiring that asset so that Ichigo can undertake value-added enhancements and/or adjust the timing of the acquisition.