Governance System

Adopts a Scheme that Emphasizes Unitholders’ Interests

Establish a Governance System that Secures Independence Regarding Conflict of Interest

Decision-Making Process

Decision-Making Process

Measures to Prevent Transactions Involving Conflict of Interest

Property Acquisition Acquisition price shall be equal to or less than the appraisal value.
Property Transfer Transfer price shall be equal to or higher than the appraisal value.
Payment of Brokerage Fee Brokerage fee shall be within the scope of reward stipulated in the Building Lots and Buildings Transaction Business Act, and shall be determined after taking into account the levels of contract terms and conditions, difficulty in conducting brokerage and other factors.
Outsourcing of Management and
Other Services Real Estate and
Other Assets
  1. Consignment shall be made under conditions that are deemed to be appropriate after comprehensively taking into account the market levels of the outsourcing fees, the content of provided services, total work volume and other factors.
  2. Upon acquiring real estate and other assets, and if their management and other services have been outsourced to interested parties and will continue to be outsourced to the same parties, approval or disapproval of the acquisition as well as the acquisition price shall be determined by paying full attention to the adequacy of the outsourcing terms and conditions.
  3. With regard to the interested party’s status of implementing management and other services, the party’s adequacy as consignee shall be verified once a year as a rule via assessments and such conducted by an outside independent appraiser that is not an interested party.
Execution of Lease Agreements for
Real Estate and
Other Assets
The agreements shall be executed under the terms and conditions that are deemed to be adequate after investigating such factors as the market rent level and price situation in neighboring markets and, as needed, referring to the opinions of third parties that are not interested parties.
Placement of Orders for
Construction Work, Etc. with
Contract Amount Surpassing
30 Million Yen
Orders may be placed to interested parties only when such factors as the estimated price and the content of services to be provided are not disadvantageous to Sekisui House Reit after comparing such factors with those of third parties other than the interested parties.