"We believe Shin-Nihon Tatemono has a bright future, and thatits prospects will be enhanced in partnership with daVinciAdvisors," says Freeze, offering that the transaction "representsthe best way to proactively support Shin-Nihon Tatemono and todeliver the most value to all shareholders." Prospect Groupcontrols just over 50% of the equity shares of Shin-Nihon, aJasdaq-traded stock that attracted Freeze's attention in 2006,leading to a $90-million commitment.

|

Freeze expresses satisfaction with the performance, citing a147% gain in operating profits through September when compared tothe first nine months of 2006. However, he says, "after carefulreview and with the full support of the management of Shin-NihonTatemono, Prospect concluded it has largely completed thecontribution it can make at this stage of the company's growth,"and felt a new partner would help advance Shin-Nihon'splatform.

|

Under terms of the agreement, daVinci subsidiary Columbus KKwill pay 800 yen per share, or about $88 million. Besides thefinancial element, daVinci will exchange information and personnelwith Shin-Nihon, and will also consider acquisition of certaindevelopment projects that the company produces.

|

Founded in 1975, Shin-Nihon specializes in residentialcondominiums, but the firm is also a developer of alternativehousing, and is increasingly serving as a conduit for cross-borderinvestment in Japanese real estate. The company is pledging todeliver a new generation of housing focused on energy efficiencyand sustainable design. The company handles nearly all aspects of aproject internally, from site acquisition and permitting toarchitectural, construction and management duties.

|

Headquartered in Honolulu, the Prospect Group encompasses threeentities, those being Prospect Asset Management Inc., ProspectAsset Management Ltd. and Prospect Residential Advisors. Freeze'soperation manages $1.3 billion in assets distributed among avariety of funds and managed accounts.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.