Mitsubishi Estate Co. is targeting an increase of 17 percent in operating profit in three years as it redevelops buildings in central Tokyo and expands overseas.

The nation's second-largest developer, which fell short of its previous midterm sales and profit targets, aims for ¥185 billion in operating profit for the year ending in March 2014, compared with ¥158 billion for last fiscal year, the company said in its three-year business plan.

The company expects operating revenue to rise to ¥1.05 trillion during that period.

Property companies including Mitsubishi Estate are facing slowing economic growth as Japan struggles to rebuild in the wake of the March 11 calamity.

Mitsubishi Estate is in its second 10-year plan, which ends in 2017, in developing the Marunouchi area, the most expensive business district in Tokyo and where it owns about 30 buildings.

The company plans to invest about ¥600 billion over the next three years, with half of it dedicated to Marunouchi. It wants to boost efficiency in the district by building an area that can withstand disasters, the company said in the plan.

It plans to invest ¥90 billion over the next three years in overseas markets and wants to tie up with local partners to expand in Asia. It also plans to increase property redevelopment projects in the U.S. and Europe through its existing network, the company said.

Mitsubishi Estate last month forecast a 14 percent drop in profit for the year ending next March 31 as demand for office space and new homes has weakened after the temblor.

The company fell short of its three-year profit target in the business year just concluded, after the global credit crisis halted a recovery in Japan's real estate market. The company posted net income of ¥64 billion last business year, about half of the ¥115 billion goal it had in its previous three-year plan.