Mitsui Fudosan share issue to raise 324b yen

JAPANESE property developer Mitsui Fudosan yesterday announced plans to raise 324.5 billion yen (S$4 billion) through an international issue of new shares, to finance the building of office and commercial buildings in Tokyo.

It was a further sign that Japan's property market is taking off again after two decades of stagnation. The fact that the major funding exercise is being undertaken to fund new developments rather than to buy existing properties, plus the fact that Mitsui is turning to global equity markets rather than banks for finance, are seen as highly significant.

Jesper Koll, the head of equity research at JP Morgan in Tokyo, told The Business Times after the announcement of the share issue: "The macro impact and message is clear: Japan Inc is ready to re-invest in Japan."