40 Firms To Put Up Y30bln For REIT Support Fund

About 40 companies will contribute a total of 30 billion yen to a public-private REIT support fund that will be established next month to ease the credit crunch facing real estate investment trusts, according to Nikkei. In addition to the cash from corporations, roughly 360 billion yen will be borrowed through loans from large banks. The Development Bank of Japan will extend a subordinated loan of some 60 billion yen. Mitsui Fudosan Co. and Mitsubishi Real Estate Co. are said to be investing about 3 billion yen. Tokyu Land Corp, Tokyo Tatemono Co. and Nomura Real Estate Holdings Inc. will put up 2 billion yen apiece. The three magabanks are expected to invest 1 billion each.