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[Detail of our consulting] We offer consulting services, e.g.; Rental office building operating simulation, Assist of the disposal of bad loans of financial institutions.

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[Rental office building operating simulation] We examine the past cash flow generated from the subject property, analyze the market conditions, and will estimate some future cash flow scenarios. (Documentation Requirements) Please prepare following documents. 1. Documents to identify the subject property. (copy)      We need them in order to exclude another adjoining properties in the subject one. 2. Balance Sheet, Income Statement, etc. (more than five years) (copy)      We need them in order to estimate the future cash flow. 3. Long-term operating budget (projection) or Corporate Restructuring Plan (copy). 4. Lease agreements. (copy) We need them in order to estimate the future cash flow. 5. Long-term repair schedule, or Engineering Report (copy).      We need them in order to estimate the future capital expenditure. 6. Depreciable assets list. (copy)      We need it in order to indicate the value by Cost Approach.      When liquidation is taken into account, we need it to indicate the liquidation value. 7. Property tax notice. (copy)      We need it in order to make taxes reflect in the income capitalization approach.      We need it also to calculate transfer expense. 8. Document concerning transitions of the debts and the interest rates. 9. Confirmation of construction of the building. Building drawings. (copy) 10. Data of the past construction & repair of the building. (copy) 11. Management entrustment contract (copy)      We need it in order to put the fee in the expense of Income Approach. 12. Other data & documents (copy)      Any additional data, if needed.

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[Assist of the disposal of bad loans of financial institutions] We consider some disposal ways together with the client, and evaluate values which correspond to that ways. Report is available either in Japanese or in English. In principle, we try to apply following three approaches. 1. Cost Approach      This approach indicates the value by focusing on the cost. 2. Market Approach      This approach indicates the value by focusing on the market. 3. Income Approach      This approach indicates the value by focusing on the income. (Notes) Please note that, in Japan we can hardly apply Direct Sales Comparison Approach for built-up properties, except for condominiums, etc. This method is thought to be not so reliable in Japanese real estate business custom backed by the shortness of actual service life of buildings, the ultra-high price of land, and the highly-detailed zoning regulations. Also, in built-up areas, we can hardly apply Cost Approach for lands. This would be common also in other countries. On the other hand, for lands suit for condominium construction or for subdivision development, we apply Development Method. (For accurate valuation) Our valuation is supported by due inspections, researches, and analyses. In some types of properties, large deviations may appear among the values indicated by each approaches. Unlike individual residences, profitability is thought as important for commercial properties. In Japan, under the poor economic conditions, business properties had been dealt with focusing on their incomes. Usually, their prices were much lower than the values indicated by Cost Approach. e.g; < City Hotel > There was such a case, "construction cost (including land value) was JPY 10,000,000,000. Company went bankrupt, and the disposal price was JPY 2,000,000,000 three years later". < Resort Hotel > Onerous sales of resort hotels of which business got worsened were sometimes difficult. < Super Market > There was such a case, "construction cost (including land value) was JPY 7,000,000,000. But the disposal price was JPY 300,000,000 ten years later". < Golf Course > There was such a case, "development cost (including land value) was JPY 15,000,000,000. But the disposal price was JPY 1,000,000,000 ten years later". < Ski Resort > There was such a case, "development cost (including land value) was JPY 23,000,000,000. But the disposal price was JPY 300,000,000 ten years later". < Hospital, remote from city > A hospital (12 years old) went bankrupt. Value indicated by the Cost Approach was JPY 600,000,000. But, there was no buyer even at JPY 60,000,000. There might be several disposal ways. E.g.; transfer of business, assignment of claim, sale of real estates in the form of built-up property, and sale of land as a site for new condominium, etc.. Banks have to consider about the discharge cost of employees, effect of the quick sale, etc. And the amount of recovery might changes according to them. Our consulting is fit for these conditions. We estimate the values fit for the disposal ways. (Notes) Since the accuracy might decrease if the following points were inadequate, please check them. 1. Please tell us the purpose of appraisal. As condition differs, value could be different. 2. If the client is a financial institution, please tell us about the definition of value, especially whether the value should be multiplied with loan-to-value ratio, or not. When disposal value is needed, please tell us whether to deduct transfer expenses, or not. In some cases, it is necessary to examine the disposal ways, since values might be different. 3. Please arrange for us to inspect inside the subject building. 4. In some cases, soil contamination investigation fee, building examination fee, tax accountant fee, CPA fee, lawyer fee, etc., are needed separately. (Documentation Requirements) Please prepare following documents. (e.g.; Hotel) 1. Documents to identify the subject property. (copy)      We need them in order to exclude another adjoining properties in the subject one. 2. Balance Sheet, Income Statement, etc. (more than five years) (copy)      We need them in order to estimate the future cash flow. 3. Long-term operating budget (projection) or Corporate Restructuring Plan (copy) 4. Lease agreements. (copy)      We need them in order to estimate the future cash flow. 5. Long-term repair schedule, or Engineering Report. (copy)      We need them in order to estimate the future capital expenditure. 6. Depreciable assets list. (copy)      We need it in order to indicate the value by Cost Approach.      When liquidation need to be taken into account, we need it to indicate the liquidation value. 7. Property tax notice. (copy)      We need it in order to make taxes reflect in the income capitalization approach.      We need it also to calculate transfer expense. 8. Document concerning transitions of the debts and the interest rates. 9. Confirmation of construction of the building. Building drawings. (copy) 10. Data of the past construction & repair of the building. (copy) 11. Management entrustment contract (copy)      We need it in order to put the fee in the expense of Income Approach. 12. Other data & documents. (copy)      Any additional data, if needed.