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Nihon Kanzai Selected for Hitachinaka City Public Facility Management

Nihon Kanzai Holdings Co., Ltd., known for its expertise in building management and real estate fund management, recently announced that its group company, Nihon Kanzai Co., Ltd., has been chosen as the preferred negotiation partner in the public facility management tender by Hitachinaka City, effective from September 30, 2025.

Background of Public Facility Management in Japan

Japan faces significant challenges related to the aging of public facilities, compounded by financial difficulties and population decline in local governments. To address these issues, there is an urgent need to assess the current state of facilities and develop long-term strategies for updating, consolidating, and prolonging their lifespan. This comprehensive approach is essential to alleviate the financial burdens and achieve optimal placement of public facilities across the nation.

Specifics for Hitachinaka City

In Hitachinaka City, ongoing issues like population decline and aging public facilities make it impractical to replace existing structures with new ones of the same scale. Consequently, the city is pushing for the rationalization of its public facilities to ensure that it can maintain the necessary infrastructure. The city has recognized that the traditional siloed management approach (focusing on individual facilities) has exposed weaknesses, such as uneven repair budget allocations and variable management standards. Therefore, they plan to introduce comprehensive facility management services to respond effectively to diverse community needs while managing limited resources.

The implementation of the public facility management contract is crucial for Hitachinaka to secure safety and establish a comprehensive maintenance cycle aimed at optimizing overall management and addressing the issues stemming from aging facilities.

Introduction of Public Facility Management

The public facility management proposal by Hitachinaka City aims to create a new framework to resolve deficiencies in facilities. This system encourages not only competitive bids based on price but also considers the specialized knowledge and experience of providers to ensure effective collaboration with the city. In the open proposal held between July and September 2025, four service providers presented their solutions, resulting in Nihon Kanzai scoring 673 points out of a possible 800, leading to their selection as the preferred partner.

The start of operations is anticipated on April 1, 2026, as both parties will further discuss the intricacies involved in this collaboration. The focus will be on transitioning from traditional management that prioritizes individual efficiency to a holistic approach that promotes an integrated maintenance cycle.

Details of the Public Proposal

• - Project Name: Hitachinaka City Public Facility Comprehensive Management Contract
• - Proposal Type: Open Proposal
• - Contract Duration: From April 1, 2026, to March 31, 2031 (5 years)
• - Facilities Involved: Includes community centers, sports parks, primary and secondary schools, a comprehensive welfare center, and the city hall (97 facilities)
• - Service Scope: Maintenance checks, cleaning, environmental management of buildings, security services, inspections, repairs, and more.

Nihon Kanzai's Experience in Public-Private Partnerships (PPP)

Nihon Kanzai Group actively engages in Public-Private Partnerships (PPP) such as PFI projects and designated administrator systems. In the area of comprehensive management services, the company currently has 36 implemented projects and holds approximately 46% of the market share, making it the industry leader.

About Nihon Kanzai Group

Established in 1965, Nihon Kanzai Group operates various businesses, including building management, environmental facility management, and housing-related operations both domestically and internationally. The company's independence is a strong asset, allowing it to manage a diverse range of facilities, including office buildings, commercial properties, hotels, educational institutions, and public facilities. The holding company was formed in April 2023 to focus on group management functions.

Company Overview:

• - Name: Nihon Kanzai Holdings Co., Ltd.
• - Location: 2-1-10 Nihonbashi, Chuo-ku, Tokyo
• - Established: April 3, 2023
• - President: Shintaro Fukuda
• - Capital: 300 billion yen
• - Business Scope: Management of building operations including office buildings, residential complexes, environmental facilities, and real estate fund management.