JAPAN TO KEEP BUYING U.S. REAL ESTATE ACTIVELY
Active Japanese investment in U.S. real
estate will continue despite a weak dollar because such
investments are strong hedges against inflation, financiers and
real estate industry experts said.
    Addressing a conference on Japanese investment in U.S. real
estate, Setsuya Tabuchi, chairman of Nomura Securities Co Ltd,
said Japanese investors are extremely cautious about investing
in Treasury securities because of currency losses suffered in
the past during the dollar's sharp decline.
    But, he added, "Real estate is a hedge against inflation,
so such investment will not decline."
    Japanese total investment in U.S. real estate last year is
estimated at around six billion dlrs, exceeding the four
billion dlrs ploughed into U.S. equities, Arther Mitchell of
Coudert Brothers, a U.S. law firm, told the conference.
    Adding in financing of real estate projects by Japanese
banks and leasing companies, the total aamount of Japanese
funds committed to U.S. real estate projects could reach 20
billion dlrs in 1987, he said.
   The dollar's fall has made U.S. property cheap, and exchange
risks are low because many Japanese firms are making
investments projected on a dollar/yen rate of 120-130, he said.
    Panelists at the conference said Japanese are now looking
at a wider variety of real estate investments, including
development projects and suburban buildings.
    Benjamin Lambert, chairman of Eastdil Realty Inc, said the
sale of 50 pct of the company to Nomura last year was designed
to expand its customer base to Japan through the securities
house's close ties with Japanese investors.
    Participation in mortgage loans is becoming popular among
Japanese, panelists said. Mortgages can be made to disguise
active purchases, and years later the loans can be converted
into ownership of the property, they said.
 Reuter
