Securities Code:8840

Business Framework

This section provides our business framework.

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Relationship between Daikyo Group and its customers in residential living
(Example of newly built condominium building)

Relationship between Daikyo Group and its customers in residential living

*This is a general case. Actual relationships may differ among properties.

Real Estate Sales Process

Real Estate Sales Process

The first stage of the new condominium business is to secure land for construction, with construction starting after receiving construction approval. Condominium sales generally begin once construction has started.
From when sales start through to the signing of contracts, units are recorded as the balance of contracted units, and then posted to sales once delivery to purchasers has been completed.

Overview of condominium management and condominium repair and maintenance work, etc.

Overview of condominium management and condominium repair and maintenance work, etc.

Condominium management contract

A management association comprising all condominium unit owners commissions a management company to manage the condominium building which then receives management, maintenance and other fees in return for its services. The main tasks include clerical work, such as recording expenses and receipts for administrative expenses and the maintenance reserve collected for the running of the management association, overseeing maintenance which includes daily cleaning, and the maintenance of structures and facilities. Such support services help to enhance security, safety and comfort for residents.

Condominium repair and maintenance work, etc.

As condominiums age, they require repairs and planned renovations to maintain and improve the performance of structures and facilities. A management company handles construction scheduling and consulting and oversees the work, receiving construction fees from the maintenance reserve that a management association sets aside.

Planned renovations and their purpose

Planned renovations and maintenance and enhancement of the performance of structures and facilities

Planned renovations and
their purpose

(1)Structures degrade over time.
A management company undertakes planned renovations by providing support when a management association formulates upkeep plans covering around 30 years.

(2)(3)Planned repairs and maintenance at appropriate times according to the degradation of structures and facilities can restore performance to not far below the levels of new buildings.

(4)Around 12 to 15 years after construction, large-scale repairs and maintenance work are undertaken to coat walls, waterproof roofs, and coat metalwork.

(5)At these stages, Group management companies formulate proposals to not only functionally restore condominium buildings but also refit them with the latest facilities and make the buildings barrier-free for greater enhancement of their performance.

In planned renovations, stages (1) through (5) are thereafter repeated.

General flow of brokerage and real estate sales in the Real Estate Brokerage segment

General flow of brokerage and real estate sales in the Real Estate Brokerage segment

(1)After consulting with the seller, we evaluate the property by checking the location and other information, and conclude a brokerage contract with the seller. We then begin advertising and showing the property to interested parties.

(2)Once a buyer is decided on, we help conclude a contract between the seller and the buyer and receive a brokerage commission.

(3)A real estate company of the Daikyo Group buys the property* after consultation with the seller.

(4)After renovating the property, the real estate company of the Daikyo Group sells the property and receives payment from the buyer.

*Properties that the Daikyo Group buys must satisfy certain conditions.

Overview of building and facility management

Overview of building and facility management

Building maintenance

While inspecting building facilities and monitoring their operations, we preserve the assets of building owners through three key services to ensure that areas are comfortable for users.
The first is to lower running costs and maintain facilities so they can be used for a long time. The second is to optimize cleaning to preserve and enhance aesthetics and keep surroundings sanitary. The third is to ensure safety through security and disaster prevention monitoring. These services lead to comfortable living for users.

Property management

This service offers the comprehensive management of owners’ facilities. We collaborate in building maintenance, helping with management and with retaining the aesthetics of facilities.
We provide owners with timely reports on management progress and make strategic proposals as needed.

Construction management

In construction projects, we propose plans and designs that reflect owners’ intentions and needs, maintaining quality and ensuring construction safety.

Construction contracting

We provide comprehensive support for planning, design, construction, repairs and renovations for building, electrical, and facility work, providing services that add value to structures and facilities.

*As well as offering owners building maintenance services and construction contracting, we sometimes also maintain service agreements with tenants.

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