Unlocking the Future

We are developing unique and viable businesses based on sophisticated expertise for a variety of products.

Specialty Financing

Driving Tokyo Century’s growth through business development leveraging a high level of expertise

Segment Assets
¥ 2,743.5 billion
Distribution of Segment Assets
51 %
Ordinary Income
¥ 57.4 billion

*As of March 31, 2023 (Including Environmental Infrastructure)

Strengths

This segment’s strength is in mutually complementary services and diversifying market risks through multiple offerings,
including ships, aircraft, real estate, principal investments, and structured finance.

In each of these service areas, highly specialized personnel collaborate with a wide variety of prime partners
to maximize the supply chain and provide high-value-added services.

Together with our partners and customers, we will create and grow unprecedented businesses to realize a decarbonized society.

Opportunities

  • Establishing new technologies such as AI, DX, and smart robotics, and expansion of business fields
  • Capturing commercial opportunities associated with the transition to a decarbonized society
  • Increasing opportunities in light of current corporate restructuring and carve-out trends
  • Acquiring highly skilled human resources in response to the growing mobility of human resources

Risks

  • Shrinking domestic market and labor force for products due to population decline
  • Earnings under pressure and sluggish consumption due to rising interest rates and resource prices
  • Changes in the environment due to manifested and increased geopolitical risks
  • Director and Senior Managing Executive Officer,
  • President, Specialty Finance Business Development Unit

Mahoko Hara

Serving as a Hub in a Connected Society

In the Specialty Financing segment, we are expanding by creating new businesses through co-creation with prime partners and developing highly specialized human resources based on our high level of expertise in each product and the Group’s comprehensive strengths.

Our business environment is undergoing major change, including due to the protracted COVID-19 pandemic and the prolonged Russia-Ukraine war, the global economy, and the response to climate change issues.

New Investments and Business Participation in ESG and the SDGs, and Progress in Major Real Estate Projects

In fiscal 2022, the Specialty Financing segment achieved remarkable progress in its real estate and principal investment businesses.

In May 2022, we invested in PowerX, Inc., a developer and manufacturer of electric carriers, storage batteries, and other products that are attracting attention for promoting and expanding offshore wind power generation. We will pursue business synergies with PowerX, which envisions a storage battery platform business and an electric carrier business to contribute to our goal of creating an environmentally sound, sustainable economy and society.

Major Offerings

Real Estate

We engage with prime partners in large-scale investment development of domestic offices and hotels and overseas data centers, as well as leasing of real estate such as logistics and commercial facilities in Japan.

Structured Finance

We deliver tailor-made solutions to meet diverse customer demand, including off-balance sheet and cash flow improvement needs. We also serve as an incubator in the Specialty Financing segment.

Principal Investments

We promote co-investment with our strategic partner Advantage Partners, Inc. Focus areas include carve-outs of large companies, renewable energy, and business succession for owner-operated companies.

Aviation

Solutions are offered for the entire aircraft life cycle, from aircraft leasing through our wholly owned subsidiary Aviation Capital Group (ACG) to engine leasing, financing, and sales of used airframes and parts.

Shipping

We deliver a wide range of products, including loans and leases to finance the vessel construction and purchase. We also focus on business with our own ships, mainly bulk carriers.

Key Figures

Number of Aircraft Owned, Managed,
and Committed
(Including ACG)

476*1

Managed Hotel Brands

3 brands *2

  • *1As of September 30, 2022
  • *2Includes the Dorchester Collection, scheduled to open in 2028 and will be in Torch Tower (TOKYO TORCH district in front of the Nihonbashi Exit of Tokyo Station).

Legendary-Luxury Brand Dorchester Collection Will Open Its Hotel in TOKYO TORCH, Japan’s New Landmark Beckoning the World

Mitsubishi Estate Co., Ltd. and Tokyo Century Corporation announced that Dorchester Collection, one of the world’s leading luxury brands, has been selected to manage the hotel within Torch Tower, the highest building in Japan, in the TOKYO TORCH district in front of the Nihonbashi Exit of Tokyo Station. The hotel is scheduled to open in 2028.

TOKYO TORCH aims to become a “core of urban tourism” as the gateway to Tokyo and Japan, and the hotel is one of its key components. Located on the upper floors of the nation’s tallest Torch Tower, the hotel offers a panoramic view of Tokyo Bay and the city center and sweeping vistas stretching from the forest in the heart of the city to Mt. Fuji beyond. By combining these aspects with Dorchester Collection, which has carved its name in the history and culture of many parts of the world, the aim will be to create the only worldview with TOKYO TORCH and a true luxury area in Tokyo and Japan that can be experienced nowhere else.

Highlights

Investment in PowerX, a Developer and Manufacturer of Electric Carriers and Storage Batteries

Structured Finance

Tokyo Century invested in PowerX, a developer and manufacturer of electric carriers, which are attracting attention for further promoting and expanding offshore wind power generation, and a manufacturer and seller of batteries for quick EV chargers equipped with storage batteries.

Materiality

Contribution to decarbonized society
Creation of new businesses driven by technical innovation
Contribution to social infrastructure development
Sustainable resource use
Utilize diverse partnerships to create new value

  • 3 Good health and well-being
  • 7 Affordable and clean energy
  • 8 Decent work and economic growth
  • 9 Industry, innovation and infrastructure
  • 11 Sustainable cities and communities
  • 12 Responsible consumption and production
  • 13 Climate action
  • 17 Partnerships for the goals

Structured Finance

We invested in PowerX, Inc. , a developer and manufacturer of electric carriers, which are attracting attention for further promoting and expanding offshore wind power generation. PowerX also manufactures and sells batteries for quick EV chargers equipped with storage batteries.

With offshore wind power generation drawing attention as a renewable energy resource in Japan, the actual operation of electric carriers developed and manufactured by PowerX are now highly anticipated for promoting and expanding the use of offshore wind power generation. This investment will provide opportunities to help promote the storage batteries planned by PowerX and offer financing for the electric carrier business. Also, this will enable us to help create a decarbonized society. Looking ahead, we will pursue business synergies with PowerX, which envisions a storage battery platform and electric carrier businesses, and strive to create an environmentally sound, sustainable economy and society.

TOKYO CROSS PARK Vision Project

Real Estate

Tokyo Century in the TOKYO CROSS PARK Vision project in Uchisaiwaicho 1-chome, Chiyoda-ku, Tokyo.

Materiality

Contribution to social infrastructure development
Utilize diverse partnerships to create new value

  • 3 Good health and well-being
  • 11 Sustainable cities and communities
  • 17 Partnerships for the goals

Real Estate

Tokyo Century is a member of the Tokyo Cross Park Vision project in the Uchisaiwaicho 1-chome district of Chiyoda-ku, Tokyo.

This project is one of the largest development initiatives in central Tokyo, with a total floor area of approximately 1.1 million square meters, and is the creation of ten local companies, including related right holders and parent companies. It consists of three districts, North, Central, and South, which will be connected to the 16-hectare Hibiya Park, and there will be offices, commercial facilities, a hotel, and residential areas. Tokyo Century is promoting this project as the operator of the South District, where the South Tower, scheduled for completion in 2028, will include offices, a hotel, and wellness facilities.

Second Joint Investment with Advantage Partners

Principal Investments

As the second joint investment with Advantage Partners, Tokyo Century acquired the energy storage devices and systems business of Showa Denko Materials, which launched operations as a new company, Energywith.

Materiality

Contribution to decarbonized society
Creation of new businesses driven by technical innovation
Contribution to social infrastructure development
Sustainable resource use
Utilize diverse partnerships to create new value

  • 3 Good health and well-being
  • 7 Affordable and clean energy
  • 8 Decent work and economic growth
  • 9 Industry, innovation and infrastructure
  • 11 Sustainable cities and communities
  • 12 Responsible consumption and production
  • 13 Climate action
  • 17 Partnerships for the goals

Principal Investments

As the second co-investment with Advantage Partners (AP), Tokyo Century acquired the energy storage devices and systems business of Showa Denko Materials Co., Ltd., which commenced operations as a new company, Energywith Co., Ltd., in 2021.

Tokyo Century regards this project as a joint investment conducted as part of its strategic alliance with AP and considers it a vehicle for synergies with existing businesses. Storage battery technologies and products are imperative for a number of Tokyo Century’s businesses, including its auto, renewable energy, and data center businesses. This joint investment will therefore enable us to provide high-value-added financial services related to electricity storage.

We are also actively supporting Energywith in its sales activities through introductions to our business units and partners, as well as by launching new businesses to become an energy storage solution provider.

In this way we will capitalize on the joint investment as an opportunity to contribute to the development of social infrastructure and to the creation of an environmentally sound, sustainable economy and society.

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