Saburo Nishiura is using Japan¡¯s record-low borrowing costs to turn the nation¡¯s shrinking population to his advantage.
The 67-year-old former banker is the chief executive officer of Hulic Co., a developer with a concentration of commercial properties in Tokyo¡¯s expensive Ginza district. But the company is cutting the weighting of offices in its portfolio in favor of nursing homes, shops and hotels amid a shift in demographics and after borrowing costs that have fallen by about one-third since Prime Minister Shinzo Abe came to power in 2012.
¡°I don¡¯t think office rents will rise much more because Japan¡¯s working population is declining,¡± said Nishiura who, prior to joining Hulic in 2006, used to be a deputy president at Mizuho Bank Ltd. ¡°Borrowing rates are so low you¡¯d almost worry how banks can make a profit.¡±
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