Keihanshin Building

Basic Information

Stock Code
8818
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Osaka Prefecture
Establishment Year
December 1948
Listing Year
May 1949
Official Website
https://www.keihanshin.co.jp/
TSE Information
TSE Information
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Hulic, TKP, Daishin Chemical, Real Gate, Iwaki Pump, JALCO Holdings, Heiwa Real Estate, T.O.C., Airport Facility, Aeon Mall, Chuo Soko, Kin-ei, Kabukiza

Overview

Keihanshin Building is a major real estate company founded in 1948, primarily operating and managing office buildings and WINS off-track betting facilities mainly in the Kansai region.

Current Situation

Keihanshin Building recorded consolidated sales of 15.3 billion yen and operating profit of 5.4 billion yen for the fiscal year ending March 2020, maintaining solid performance. Its core business is the leasing and management of office buildings and WINS facilities, with a focus on building maintenance. While the operation of Hanshin Racecourse was transferred to JRA, it continues to manage and operate WINS facilities. As a bank-affiliated company in the real estate industry, it has a stable funding base. Leveraging its regional strengths, it operates buildings in major cities such as Osaka, Kyoto, and Kobe. Moving forward, it aims to enhance competitiveness through advanced management technologies, effective asset utilization, and expansion of new investments. It promotes sustainable building management and environmental considerations, with a focus on ESG. While adapting to changes in the market environment, it is focusing on medium- to long-term revenue stabilization, as well as diversifying funding sources through private equity funds and others. It is actively contributing to the region and fulfilling social responsibilities while enhancing the added value of existing assets.

Trivia

Interesting Facts

  • Founded as Keihanshin Horse Racing Co., Ltd., with off-track betting operations as its origin.
  • Has a history of transferring management rights of Hanshin Racecourse to Japan Racing Association.
  • Long-term capital relationship with Sumitomo Mitsui Banking Group is a strength.
  • Expertise in WINS facility operations is among the best in the industry.
  • Yoyogi Park Building is the headquarters of famous fashion company Issey Miyake.
  • Has established a solid position in the Kansai office building leasing market.
  • Actively promoting funding through private equity funds in recent years.
  • Maintains a lean organization with a small number of elite employees through prudent management.
  • Company name change in 2011, relatively recent, as part of brand value enhancement.
  • Also operates multiple data center buildings in the Keihanshin region.

Hidden Connections

  • WINS facilities contribute to the local economy in collaboration with JRA.
  • Manages construction work integrally through subsidiary Keihanshin Construction Services.
  • Many transactions with Sumitomo Mitsui Bank and related companies, providing a stable supply base.
  • Competitors include Hulic, Aeon Mall, and other multi-industry real estate firms.
  • Conducts business closely linked to the local Osaka real estate market.
  • Able to leverage credit under financial group for funding.
  • Has a complex revenue structure from office leasing and WINS operations.
  • Actively collaborates with local Keihanshin companies and municipalities, deeply rooted in the community.

Future Outlook

Growth Drivers

  • Stable recovery in office leasing demand in Kansai region
  • Expansion of data center business due to increasing IT infrastructure demand
  • Expansion of ESG investments and demand for environmentally friendly facilities
  • Promotion of asset utilization and private equity fund strategies
  • Strengthening of stable revenue base from WINS operations
  • Efficiency improvements in building maintenance through technological innovation
  • Enhanced response to diverse tenant needs
  • Rise in real estate values accompanying regional economic recovery

Strategic Goals

  • Expansion of leased building portfolio in major Kansai cities
  • Establishment of high-profitability asset development and operation systems
  • Achievement of over 80% renewable energy adoption rate
  • Expansion of funding diversification through private equity funds, etc.
  • Full introduction of smart building management systems
  • Promotion of sustainable city development in collaboration with local communities
  • Improvement of customer experience and revenue maximization for WINS-related facilities
  • Enhanced transparency in ESG information disclosure
  • Reduction of environmental impact and active adoption of next-generation technologies
  • Building stable growth foundation and maintaining financial soundness

Business Segments

Office Leasing Management

Overview
Provides optimal work environments through office building leasing and equipment management in the Kansai region.
Competitiveness
Regional asset management capabilities and reliability of an established company
Customers
  • Corporate Tenants
  • Government Agencies
  • Financial Institutions
  • IT-Related Companies
  • Retail Businesses
Products
  • Office Space Leasing
  • Common Area Management
  • Building Equipment Maintenance
  • Security Management Systems

WINS Facility Operations

Overview
Professional operation and management of JRA's off-track horse racing facilities.
Competitiveness
Expertise in horse racing-related facility operations
Customers
  • Japan Racing Association
  • Horse Racing Fans
  • Private Operators
Products
  • Off-Track Betting Venue Operations
  • Facility Management
  • Event Space Provision

Building Maintenance

Overview
Building equipment maintenance services based on advanced technology and experience.
Competitiveness
High technical capabilities and rapid response system
Customers
  • Own Building Owners
  • External Building Owners
  • Management Associations
Products
  • Air Conditioning Equipment Management
  • Plumbing Equipment Maintenance
  • Security System Operations

Construction Services

Overview
Supports the construction sector through group subsidiaries.
Competitiveness
Total building services provision
Customers
  • Real Estate Developers
  • Public Institutions
  • Construction Companies
Products
  • Construction Management
  • Renovation Works
  • Design Supervision Services

Competitive Advantage

Strengths

  • Strong regional presence in Kansai real estate
  • Stable funding base (Sumitomo Mitsui Banking Group)
  • Diverse expertise in building operations and management
  • Solid financial position
  • Specialization in WINS facility operations

Competitive Advantages

  • Ownership of high-convenience office properties in major cities
  • Unique expertise in off-track betting venue operations
  • Strong long-term tenant relationship building
  • Provision of high-quality building maintenance services
  • Credit support from Sumitomo Mitsui Banking Group

Threats

  • Risks from fluctuations in real estate market conditions
  • Decrease in office demand due to COVID-19 and similar events
  • Intensified competition from new competing facilities
  • Rising land and construction material prices
  • Risks of lease terminations and increasing vacancy rates
  • Cost increases from strengthened regulations

Innovations

2023: Diversification of funding through private equity fund establishment

Overview
Utilizing private equity funds to secure diverse investment funds for efficient asset operations.
Impact
Contributes to strengthening financial base and promoting new investments

2022: Advanced building maintenance technologies

Overview
Built an efficient building equipment operation system by introducing IoT and digital technologies.
Impact
Reduction in operating costs and improved facility safety

2021: Promotion of environmentally friendly equipment introduction

Overview
Promoting installation of energy-saving air conditioning systems and utilization of renewable energy.
Impact
Reduction in CO2 emissions and enhanced environmental value

2020: Smartification of WINS facilities

Overview
Introduced cashless accounting and guidance systems to improve user convenience.
Impact
Improved customer satisfaction

Sustainability

  • Active introduction of energy-saving equipment
  • Environmental conservation activities aimed at coexistence with local communities
  • Contribution to forming a recycling-oriented society
  • Promotion of safe and secure facility operations
  • Strengthening ESG management and expanding information disclosure