The business opportunities for old buildings are endless.
The number of medium-scale buildings in central Tokyo that were built more than 30 years ago and have a total floor area of less than 5,000 tsubos (approx. 16,529 m²) has been rising rapidly. Many tenants of these buildings were severely affected by the COVID-19 pandemic; to the extent that more and more owners are selling their properties or seeking to replace their assets with new buildings, creating more business opportunities for us.
RAYSUM took the initiative and goes great lengths to resolve difficult issues such as outdated earthquake resistance and presence of surface rights.
We acquired a 50-year-old commercial building that a major real estate company no longer wanted as it included the main entrance to a public underground car park in an extremely busy area near Shinjuku Station, making it difficult to close down operations in the building. The lack of surface rights to the sloping walkway leading to the parking lot also made it difficult to rebuild.
Disentangling the rights relationship and paving the way to sell the building without rebuilding it.
We used innovative methods to establish surface rights and collaborated with a super general contractor to work out how to rebuild on the site while ensuring access to the car park. We then carefully untangled the complex rights relationships and arranged the conditions for rebuilding, including negotiating the relocation of existing tenants, which led to the sale of the property with those conditions in place.
Overview
| Name | Shinjuku Yasukuni-dori Project |
|---|---|
| Principal value enhancement method | Create land for development |
| Other value enhancement method | Coordinate/consolidate land rights |
| Age (at time of purchase) | 50 years |
| Land area | Approx. 200 tsubos (661 ㎡) |
| Floor area | Approx. 2,000 tsubos (6,611 ㎡) |
| Leasable area | Approx. 1,500 tsubos (4,958 ㎡) |
| Volume area ratio (designated) | 900% |
| Number of floors | 9 floors above ground/3 basement floors |
| Asset class | Commercial |
| Purchase date | January 2022 |
| Sale date | February 2023 |
| Sale price | 10 billion yen or more |