MCUBS MidCity Inc. is the asset management company
which operates MCUBS MidCity Investment Corporation.
A Japanese real estate investment trust (J-REIT) is a financial instrument intended for capital pooled from investors to be invested in office, retail or other real estate properties, and the rent revenue and gain on sales of these to be distributed to investors. A J-REIT is operated by an organization referred to as an "investment corporation."
"Asset management company" is an organization which conducts acquisition, sale, management, financing and other services for assets under management entrusted by this "investment corporation" to provide asset management services.
An investment corporation is a corporation established for the purpose of managing assets pursuant to the Act on Investment Trusts and Investment Corporations and is the core entity of a J-REIT structure. An investment corporation serves as a vehicle for capital pooled from investors through issuing securities to be invested in mainly specified assets (rental real estate). Investors receive returns on their investment in the form of distributions of earnings. An investment corporation is permitted to include distributions paid in deductible expenses for tax purposes, provided that distribution of at least 90% of earnings and other certain requirements are met.
Asset management company
An asset management company applies various expert judgments on real estate investment and management under the entrustment of an investment corporation. The final decision-making concerning such services as the survey, acquisition and asset management of properties that are to be purchased by an investment corporation are conducted by an asset management company, while such services as asset custody are outsourced to external parties. MCUBS MidCity Inc. falls under being an asset management company. Furthermore, MCUBS MidCity Inc. is a financial instruments business operator that engages in the investment management business.