Improved Quality of Safety and Security in Operation and Management

Approach and Policies

Group Policy (Safety and Security)

The Nomura Real Estate Group adheres to the Group Policy and collaborates with suppliers to improve the quality of safety and security in operation and management by raising management quality and enhancing after-sales services.

Targets and Results

Targets

To improve the quality of safety and security in operation and management, the Group is working to improve management quality and enhance after-sales service.

Results

Rate of conformance with Building Management Quality Assessment Guidelines and Sign-up rate for NEXT PASS10

FY2018 FY2019 FY2020
Rate of conformance with Building Management Quality Assessment Guidelines at managed properties*1 (%) 86 *2 70
Sign-up rate for NEXT PASS10 (%) 80 77 75

Conformance rate: We extract several properties and conduct a survey on the number of conforming items in the assessment items listed in the guidelines. In fiscal 2020, we significantly increased the number of assessment items and raised conformance to ensure that higher management quality can be maintained and improved based on the revisions of related laws.

In fiscal 2019, the conformance rate survey was not conducted in order to help contain the spread of the COVID-19.

Responses to Safety Issues

To ensure the safety of customers, if there is a violation of the Building Standards Act, Fire Service Act, other applicable laws and regulations, or the internal quality standards, necessary responses will be implemented rapidly.
In fiscal 2020, there were no significant safety-related violations of relevant laws and regulations or internal standards.

For details, please see the ESG data collection (governance).

Initiatives

Compliance with Building Management Quality Assessment Guidelines

The Group formulated Building Management Quality Assessment Guidelines at managed properties. The guidelines contain more than 400 items that pertain to topics such as quality control, legal compliance, and internal audits. In fiscal 2020, the Group significantly increased the number of assessment items to approximately 750 and raised conformance to ensure that higher management quality can be maintained and improved based on the revisions of related laws. The conformance rate for the same fiscal year was 70%.

Enhancing Quality by Acquiring ISO Certifications

The Group is promoting the acquisition of international specifications for quality management. In addition, our internal audits are conducted by employees who have taken internal auditor training courses provided by external organizations.

ISO 9001 Certification Status

Certified organizations Scope
Nomura Real Estate Development Co., Ltd. Activities of obtaining feedback and ensuring the reflection of such feedback in the PMO series of office buildings
Nomura Real Estate Partners Co., Ltd. 41 properties in the office building segment (planning and provision of comprehensive management services for buildings)
22 complexes in the condominium segment (provision of facility management, cleaning, security, and maintenance services for properties under patrol management, or treasury/accounting and management services for condominium management associations)
3 properties in the data center segment (facility management, cleaning, and integrated management services)

For information regarding ISO 14001, see the Environmental Management System.

Improving Safety and Security after Sales

Convening a quality improvement conference for persons in charge of after-sales service

We hold the National Customer Conference once each year to improve the quality of after-sales service in PROUD condominiums. The conference is attended by about 40 persons responsible for after-sales service from around the country to share information on issues that occurred during the fiscal year, responses to the issues, and roll out examples of the measures taken.

National Customer Conference Held

Products and Services to Provide Safety and Security for New Tenants

To ensure that new tenants feel safe and secure with their purchases, we put significant effort into enhancing our post-sales products and services. Our products incorporate the results of customer satisfaction surveys and feedback from residents obtained through the board of directors of condominium management associations. This is made possible by our system whereby development, sales, and management are integrated, which was born from our corporate culture that encourages collaboration among organizations. In principle, under this system no management services are outsourced, so we are able to gain more opportunities to interact directly with customers, which ultimately enables us to provide products and services that meet their needs.

Services Overview
After-sales services In addition to providing customary after-sales services to repair any defects, we support residents in addressing problems after taking up occupancy, such as after-sales support provided by a condominium life adviser (for one month after taking up occupancy)
Installation of Living Q Call A service providing residents convenient and reliable support to respond to their problems, such as “I have a problem with the condo. What should I do?” Provision of an emergency help service and a daily living support service

LIVING Q CALL

NEXT PASS 10 A program that provides a 10-year repair warranty for defects and malfunctions in condominiums, as well as the NEXT PASS 15, which extends the warranty by an additional five years
Repair and warranty services for transactions of existing residences Provision of repair and warranty services to encourage liquidity of existing residences and provide safety and security to customers after a purchase, such as providing repair and replacement warranty for defects in main equipment within one year after purchase of a property

Training in operation and management

The Property & Facility Management Business Unit is working hard to improve the skills and procedures to safeguard the quality of safety and security in operation and management. Nomura Real Estate Partners Co., Ltd., which is in charge of this unit, conducts training for engineers through general meetings, including responses to revisions in laws and regulations, about once a year, and participants share what they have learned with their own units to prevent any violations. In fiscal 2020, about 190 people participated in the training. In addition, each division within Nomura Real Estate Partners Co., Ltd. conducts its own training programs for young employees and also encourages its employees to acquire related qualifications.

Nomura Real Estate Partners Co., Ltd.: Number of Employees who Acquired Main Qualifications (as of March 31, 2020)

Qualification name Number of persons Qualification name Number of persons
Registered architect (first class, second class) 170 Condominium manager 130
Chief electrical engineer (first class, second class, third class) 304 Building manager 641
Building operation and management engineer (first class, second class) 205 Real estate broker 474
Electrical work operation and management engineer (first class, second class) 150 Building sanitation engineer 548
Plumbing work operation and management engineer (first class, second class) 189 Condominium maintenance and repair engineer 285
Civil engineering work operation and management engineer (first class, second class) 29 Condominium renovation manager 14
Landscape gardening work operation and management engineer (first class, second class) 20

Sustainability