[Apartment Loan] The regional bank was given kickback from the construction company! What is the impact on JREIT?

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According to the findings of the Financial Services Agency, the Financial Services Agency has found that some major regional banks have received a fee in return for introducing customers to builders, due to financing for rental apartments expanding against the background of inheritance tax countermeasures. Up to 3% of the contract amount is increased, and as the contract amount increases, the bank’s incomes increase. The Financial Services Agency has been conducting a lending survey on 12 banks of regional banks that have extended loans since the end of 2004.

This is the mechanism of the kickback margin.

Partial regional banks concluded agreements with customers to collect contracts such as rent collection from the construction of the apartment and concluded agreements with customers to introduce customers to the construction cost of the apartment, 0.5% to 3% of the construction contract price added to the construction cost of the contractor The bank received it as a kickback.

Such additional costs are effectively added to building costs and there is a possibility that the burden on customers eventually increases. However, it is not illegal to receive a fee by introducing customers, but if you move to acquiring excessive fee, there is a possibility that the customer’s profit will be damaged, and the FSA judges that there is a strong concern that conflicts of interest will arise . In addition, the Financial Services Agency does not regard the apartment loans themselves as a problem, but it is a posture to encourage correcting cases that can not be said to be customer-oriented.

Since introduction fee collection by such customer introduction is likely to decrease, the regional bank needs to find a new revenue source. Their actions include (1) referral fee decreases, but continue to introduce companies and promote new development, (2) reduce loan business and transfer to real estate related products such as REIT marketable products, etc. If it is conceived and becomes (2), it will be positive to the JREIT (REIT) market.


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