Nomura to Hire Property Bankers in Asia as It Flees U.S. Losses

Oct. 23 (Bloomberg) -- Nomura Holdings Inc., Japan's biggest securities firm, plans to hire more real estate bankers in Asian markets outside Japan, adding resources to growing areas as it exits unprofitable U.S. operations.

Nomura, which expects to post a second-quarter loss after a charge of 73 billion yen ($620 million) on U.S. home loans, wants to increase banking staff in Singapore to at least 10 from four.

``We're seeking a sharp expansion in Asia,'' said Hajime Itagaki, a managing director in charge of asset finance at Nomura, in an interview in Tokyo. ``You cannot ignore Asia when it comes to growth opportunities as many Japanese companies have branched outside the domestic market.''

Nomura aims to arrange asset finance deals and invest in more property in China, India, Vietnam and Singapore -- some of the fastest-growing economies in the world. The Japanese company competes with Morgan Stanley and Goldman Sachs Group Inc. in the Asian real estate market, where investment rose 42 percent to $94 billion in 2006, according to a Jones Lang LaSalle report.

Chief Executive Nobuyuki Koga is concentrating more on Asia as Nomura withdraws from some overseas operations, including residential mortgage-backed securities in the U.S. It will cease making markets in Treasuries and close its Chicago office as part of cost-cutting efforts, Nomura said earlier this month.

The securities firm has about 40 property bankers in Japan, analyzing investment opportunities and arranging finance for real estate developers. Property prices in Japan are rising after 15 years of decline ended in 2006.

Nomura in August acquired a 12-story parking structure in central Seoul for 45 billion won ($49 million).

Morgan Stanley said in June it raised $8 billion to create the world's largest property fund, saying it will invest almost half of the money in Japan and about 25 percent in countries including China and India. Goldman set up a $4 billion real estate fund in June.

Nomura shares slid 16 percent this year, underperforming a 6.2 percent decline by the benchmark Topix. The stock traded 0.6 percent lower at 1,874 yen at the 11 a.m. end of the morning session on the Tokyo Stock Exchange. .

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source: bloomberg.com