Profitz Partners with Orange and Partners to Balance Real Estate Asset Value with Emotional Value

Profitz (Headquarters: Chiyoda-ku, Tokyo; Representative: Shinichiro Tanaka) has signed a business alliance with Orange and Partners (Headquarters: Minato-ku, Tokyo; President: Kundo Koyama) to enhance profitability and asset value through the improvement of 'experience value' and 'brand value' in real estate.

The partnership focuses on enhancing real estate value in residential, office, hotel, and redevelopment projects, centered on 'regionality,' 'community,' and 'experience design.' Instead of simply providing space, the initiative aims to create environments where people want to visit and recommend to others, thereby improving occupancy rates, revisit rates, and rent premiums.

The annual investment target for this partnership is set at 20 billion JPY, with flexibility for expansion based on market conditions and project track records.

Background: Real Estate Investment Strategy x Brand Experience Design The two companies collaborated on their first project, 'TRAN.SCENDER® HÔTEL Yokohama,' which opened last November. Profitz provided overall project and asset management, while Orange handled concept development and experience design. The project revitalized a former large restaurant into a new branded landmark in Yokohama Chinatown, demonstrating enhanced asset value.

Going forward, the companies will combine Profitz's expertise in investment/real estate strategy with Orange's expertise in brand experience design and 'placemaking' to implement this new real estate model.

Goal: Visualizing Real Estate Value Beyond 'Area' and 'Location' The goal of this partnership is not merely renovation. It aims to build a new concept of real estate value where creating reasons for visitors to return leads to increased profitability and asset value. Factors like word-of-mouth potential, community formation, and local storytelling will be viewed as competitive advantages. The partnership also prioritizes building brand resilience against price competition.

By converting 'experience value'—often discussed subjectively—into measurable KPIs such as LTV (Life Time Value), revisit rates, dwell time, service sales, corporate usage ratios, and social media reach, the partners aim to create new evaluation benchmarks for real estate investment.

Asset Transformation: 'Branded Placemaking' 'Branded Placemaking' involves embedding the history, culture, and stories of a location or brand into an experience to turn the 'place' into a brand itself. This strategy enhances economic value, awareness, and public pride. By designing content from the concept stage based on expected customer experiences, it fosters lasting attachment rather than one-off promotions.

展開領域 (Fields of Application): 1) Residences: Transforming 'places to live' into 'ways to live richly.' 2) Offices/Shared Offices: Transforming 'places to work' into 'hubs for new ideas and encounters.' 3) Hotels/Lodging: Transforming 'places to stay' into 'bases for local culture.' 4) Redevelopment: Transforming 'unused properties' into 'hubs that generate new value.'

The companies will continue to focus on real estate asset development and revitalization centered on experience value.