Governance structure to maximize unitholder value
|Asset management fee linked to total assets and net income|
|Our asset management fee is linked to two separate components; total assets and pre-tax net income.
We believe that this fee structure will provide enough incentive for the asset management company to maximize unitholders’ value by the same target sight for improving profit.
Decision-making process for property acquisitions
To maximize unitholders’ value, we have adopted a multi-tiered decision-making procedure for property acquisitions, asset management, and other critical decisions.
The organizational chart of ES-CON ASSET MANAGEMENT, the asset management company of ESCON JAPAN REIT, is as follows.
|Establishment of “Internal Control System Improvement Room”|
|The Asset Management Company strives to provide accurate, fair, highly transparent and objective information to investors in a prompt manner and give maximum consideration to the protection of the assets of investors, as well as execute business with an awareness of its responsibility of protecting investors and forming a fair real estate investment market. On top of that, it positions compliance as the most important issue of management and requires of its officers and employees an awareness of their responsibility as experts of investment management and constant compliance with their duties of loyalty and diligence.
We newly established the “Internal Control System Improvement Room” in the Compliance Department of the Asset Management Company on June 1, 2020, understanding the importance of ESCON REIT’s asset management business as an act of managing the funds of its unitholders and establishing an appropriate management system. We strive to strengthen the internal control system including the prevention system for conflict-of-interest transactions, which may occur at the time of transactions with interested parties, towards future business expansion based on the recognition that the Asset Management Company is an asset management company of ESCON JAPAN Group and ESCON JAPAN REIT is a REIT that conducts many transactions with interested parties, which is our robust business model, and operates high-quality real estate developed by ESCON Group while entrusting leasing and management to group companies.