SHAM stipulates Rules for Transactions with Interested Parties concerning transactions between the Interested Parties of SHAM and SHR as an internal rule to exclude adverse effect of conflicts of interest.
An overview of Rules for Transactions with Interested Parties is as follows:
Acquisition of property from Interested Parties
The acquisition price (excluding taxes, cost of acquisition and others) must be no more than the amount of the appraisal value, etc. determined by a real estate appraiser who is a non-interested party appointed at the time of the acquisition.
Sale of property to Interested Parties
The sale price (excluding taxes, cost of transfer and others) must be no less than the amount of the appraisal value determined by a real estate appraiser who is a non-interested party appointed at the time of the sale.
Payment of an agency fee to Interested Parties
The amount of intermediary charge to be paid must be within the range of remuneration set forth in the Building Lots and Buildings Transaction Business Act.
Entrusting management, etc. of real estate and other assets to Interested Parties
Entrustment of management services, etc. for real estate and other assets must be based on conditions considered adequate upon comprehensive consideration of market levels of management consignment fees, the content of provided services, total workloads and so on.
(The appropriateness of contractors is verified by independent external evaluation organizations which have no interest with SHAM once a year, in principle.)
Conclusion of leasing contract for real estate and other assets with Interested Parties
Lease contracts must be based on conditions considered adequate upon investigation of market rent levels and prices of similar transactions in surrounding areas, etc. and by using the opinions of third parties as a reference, who are non-interested parties, as needed.
Placing orders for construction work, etc. to Interested Parties (Residential Properties: Contract amount of 5 million yen or more Commercial Properties: Contract amount of 30 million yen or more )
Placement of orders with interested parties must be limited to cases in which the estimated price, content of services provided, etc. are not disadvantageous to SHR upon comparison with third parties.