The Development & Construction Project Division continues to strengthen and refine MC's value chain by seeking to act as an innovator in the fields of urban revitalization and property development.

REITs and private real estate funds are looking to expand and diversify asset portfolios. In response, we are actively promoting the securitization of real estate development projects where MC is involved in the development of these properties. Through Mitsubishi Corporation Urban Development, Inc., which was established in May 2007, we are involved in the development and management of commercial properties in urban locations. Another promising area is the real estate leasing business from which we expect to generate stable earnings going forward.

In the urban and residential development field, we are involved in the condominium development business on an ongoing basis. We also develop and acquire property for lease or for short-term re-sale, including residential housing, offices, large-scale multifunctional complexes and housing for seniors. The securitization of real estate developments is another major focus in this sector.

In the construction and building equipment field, we are targeting demand for the construction and refurbishment of newspaper printing plants to secure orders for building construction and equipment supply contracts. The development of private finance initiative (PFI) projects, such as hospitals, and the medical solutions business are two other areas of focus. We are also actively building MC's presence in the energy service company (ESCO) sector through strengthened cooperation with Japan Facility Solutions, Inc., a joint venture with The Tokyo Electric Power Co., Inc.

Overseas, while closely monitoring market trends, we are investing in rental apartments, logistics facilities and other real estate assets in the important U.S. market via our local subsidiary Diamond Realty Investments, Inc. In Europe, in December 2007, we completed construction of Bow Bells House, a building in central London that provides office and commercial retail space. Plans call for further expansion of the division's property development business in Europe, led by the U.K. In other regions, we are mainly looking to invest in quality overseas real estate funds.