RAYSUM is also passing the baton to the future.
This building, which is something of a tourist attraction, is located in central Kyoto City along Sanjo-dori. It has been registered as a tangible cultural asset by the city. When we took over the property, the beautifully shaped walls had suffered severe damage, and the charming iron window frames were full of gaps. The building was neither profitable nor easy to maintain, so the owner entrusted it to us to ensure its future.
RAYSUM strove to elicit the essence behind the design to create new unique encounters.
We invited a partner into the project as we sought his experience in renovating a 125-year-old wooden building. Together we repaired more than 100 sections of the exterior walls that had degraded severely and carefully filled the masonry joints to eliminate sound leakage. We did this while maintaining the character of the distorted window frames. Finally, through cooperation with tenants, we created a large space on the first floor for world-class creators. This was achieved by fusing our architectural efforts with modern earthquake resistance techniques.
Fusing three factors to create additional value in a 100-year-old building.
Financial institutions do not usually finance buildings that are nearly 100 years old. However, this project featured a combination of three factors―placing an influential tenant who appreciates the intrinsic nature of the building, the new owner’s resultant strong desire to retain the property, and our unique business philosophy of enhancing value even after sale to the new owner. The financial institution viewed this positively, and long-term financing, not normally available for such a building, was secured.
The property has also been certified by Kyoto City as being in compliance with earthquake resistance standards, making it a prime asset with stable earnings and increased liquidity.
Overview
| Name | 1928 Building |
|---|---|
| Principal value enhancement method | Large-scale renovation |
| Other value enhancement method | Increase NOI, adjustment and maintenance of rights relationships |
| Age (at time of purchase) | 90 years |
| Land area | Approx. 100 tsubos (330 ㎡) |
| Floor area | Approx. 320 tsubos (1,057 ㎡) |
| Leasable area | Approx. 250 tsubos (826 m2) |
| Volume area ratio (designated) | 400% |
| Number of floors | 5 floors above ground/1 basement floor |
| Asset class | Commercial |
| Purchase date | March 2018 |
| Sale date | March 2019 |
| Sale price | Between 1-2 billion yen |