#Sustainability #Japan #Tokyo #DBJ #Revita

Revita and DBJ Group's New Renovation Fund: A Sustainable Step Forward

Revita Inc., based in Meguro, Tokyo, led by President Kazunori Hasegawa, has partnered with the Development Bank of Japan (DBJ) and DBJ Asset Management to initiate a second environmentally friendly renovation fund. This new fund, set to begin operations on December 15, 2025, follows the establishment of the first fund in July 2024. The goal is to continue providing quality living spaces through renovation management and to further aim for a sustainable society by integrating renovation and ESG investments.

Background of the Fund's Establishment

As the pursuit of carbon neutrality accelerates, the real estate sector is seeing a surge in interest towards investments grounded in social value and environmental considerations. There exists a significant stock of aging rental properties within Japan that fail to meet modern living standards in terms of layout, facilities, and insulation performance. The first fund launched in July 2024 was a response to these issues, facilitating the renovation of older rental properties and promoting them as environmentally friendly real estate options. Notably, one property, 'PATH Nakaro-ku,' received the DBJ Green Building certification, showcasing the fund's initial success.

With these encouraging results, the second fund aims to address a broader range of aging rental properties, enhancing the provision of sustainable living environments.

What is the Environmentally Friendly Renovation Fund?

This fund focuses on the securitization of aging rental properties and conducts upgrades aimed at achieving environmental certifications, paving the way for these properties to re-enter the market. By utilizing renovation expertise from Revita and leveraging DBJ's diverse financial and real estate channels combined with unique environmental certifications like DBJ Green Building, the fund aims for the comprehensive enhancement and market reintroduction of these acquired properties.

Role of the Renovation Manager

Revita plays a crucial role as the renovation manager, continually supporting the value enhancement of the fund's leased properties. The company will be involved in the planning and support of renovations for the properties under this fund, striving to improve real estate values from both environmental and economic perspectives while promoting the societal adoption of environmentally friendly real estate. With 69 completed renovation projects, Revita brings substantial expertise to ensure efficient energy savings and meet modern rental needs in the transformed living spaces.

Target Properties of the Fund: PATH Komagome and PATH Asakusa

The fund's target properties include ‘PATH Komagome’ and ‘PATH Asakusa,’ part of Revita's renovation rental condominium series that focuses on allowing flexible living arrangements. ‘PATH Komagome’ built 37 years ago (1988) and ‘PATH Asakusa’ at 38 years old (1987) are both aging rental properties that Revita has acquired, overseeing the entire planning and management process to upgrade them. By applying their accumulated knowledge in one-building renovation projects, Revita is transforming shared and vacant spaces in these residences to meet contemporary rental requirements.

About Revita Inc.

Established in 2005, Revita aims to renovate society and living environments, creating a prosperous future for both individuals and the environment. Under the vision of 'continuing to create the next norm in real estate,' the company is engaged in a variety of projects ranging from whole-building renovations and consulting to the planning and operation of share-type rental housing, commercial and public facilities, hotels, and offices. Furthermore, Revita has established a high-end renovation segment known as ‘R100 tokyo,’ providing luxury low-rise apartments over 100 square meters in central urban areas among its various initiatives, including the management and operation of 22 share-rental properties in the Tokyo area. They are also involved in numerous community projects that foster interactions among people.

About the Development Bank of Japan

With a focus on tackling societal challenges through advanced financial solutions, the DBJ operates under the mission of jointly providing investment and financing, extending support across sectors, including urban development and environmental sustainability. The introduction of the DBJ Green Building certification in 2011 a clear testament to their commitment to fostering real estate that emphasizes environmental consciousness and social value.

About DBJ Asset Management

A wholly-owned subsidiary of DBJ, DBJ Asset Management specializes in alternative investments across real estate, private equity, and infrastructure. The company aims to enhance investment opportunities and long-term returns for investors, contributing to a healthy and sustainable growth of the alternative investment market.

Through the collaboration of Revita and the DBJ Group, the second environmentally friendly renovation fund represents a significant stride towards future-proofing rental living spaces in Japan while adhering to environmental sustainability standards.