Sanko Estate's candid advice helps Permira Advisers KK.
Permira are a European-based global private equity firm and we undertook our search for Tokyo commercial space in parallel with establishing our Japanese office, Permira Advisers KK.
I first contacted Sanko Estate from London via their homepage when looking for Japanese real estate consultants. I used a visit to Tokyo in early 2005 as a trial of Sanko's capabilities and I was very impressed with the quality of their advice.
Over the course of our search, Sanko arranged for inspections of perhaps 20 properties, and it's only when you start looking at specific properties that decisions can be made about what you need, such as whether the building should be new or existing, its floor space and location.
At Akasaka Intercity Building we have about 100 tsubo of space with a good outlook in a property that is both a pleasant working environment and lends Permira credibility in the market. Sanko's help in the leasing process proved invaluable.
When we began negotiations the building owner was quite cautious because we had yet to register our Japanese company. I was infrequently visiting Tokyo so discussions regarding the property had to be conducted via email and telephone. On Sanko's advice we obtained bank references and other documentation to reassure the owner of our credentials. Sanko also translated key sections of the lease contract for us.
During the course of the search Sanko was fairly transparent about where it had strength, identifying buildings where Sanko had helped place tenants previously, and others where the agent enjoyed no special relationship with the owner that might be advantageous to us. I also appreciated Sanko's candid advice about what might be possible during negotiations.
Ultimately, we were able to secure very attractive lease terms and flexibility in period of tenure. Also, with Sanko's help we succeeded in delaying commencement of lease payments for several months after contracting until nearer Permira Advisers' incorporation last September.
My advice to other firms intending to lease Tokyo office space is to begin your search early, ideally a year before you intend to move in. Companies that won't be occupying huge space and want to lease in a high prestige building often need to sign before the building is constructed or all the available space will be gone.
Alex Emery
Principal
Permira Advisers KK
http://www.permira.com