#Japan #Tokyo #Itochu Urban Development #Gyoen Ko Portfolio

New Beginnings for Gyoen Ko Portfolio

Itochu Urban Development Co., Ltd. has made a significant advancement in the redevelopment of the Gyoen Ko Portfolio, successfully acquiring land and buildings from the condominium land sale association under the "Condominium Site Sale System" defined by the Law for Smooth General Redevelopment of Condominiums. The company received approval from Shinjuku Ward on February 27, 2026, for the distribution plan regarding acquisition, and finalized the transaction on May 12, 2026.

This redevelopment venture leverages special allowances for floor area ratio exemptions typically available in Shinjuku Ward, marking Itochu's first project of this nature. The new structure is slated to be a 15-story condominium with a total of 31 units, projected for completion by April 2029.

History of the Gyoen Ko Portfolio

Established in 1970, the Gyoen Ko Portfolio stands just three minutes on foot from the Tokyo Metro Marunouchi Line's "Shinjuku Gyoenmae" station. Originally, it consisted of a seven-story building with a total of 26 units, including two commercial spaces. Over time, deterioration and structural concerns, including seismic safety and water leakage, became apparent, prompting discussions for a self-managed redevelopment as early as 2013.

Although discussions faced delays due to market uncertainties surrounding the Tokyo Olympic Games, the management association recognized the potential in revitalizing the property and escalated efforts towards redevelopment using the condominium site sale system. In 2023, Itochu Urban Development was selected as a business partner to facilitate the site sale initiative, engaging stakeholders via individual interviews and informational meetings to achieve consensus.

On the administrative front, the new project received the "Shinjuku Ward Condominium Redevelopment Law's Floor Area Ratio Permit," allowing an increase in the allowable floor area ratio from 480% based on road requirements to an impressive 595%. This modification aids in maximizing property valuation.

Understanding the Condominium Site Sale System

The Condominium Site Sale System allows for the sale of a condominium and its land upon receiving more than the legal requirement for consent from owners, addressing demolitions that are deemed necessary. Unlike traditional condominium redevelopment managed by associations, this system allows the project to conclude once the site is sold, effectively shortening the project timeline and alleviating operational burdens for the association. This system also opens avenues for redeveloping non-residential structures, such as commercial buildings and hotels, enhancing possibilities for condominium revitalization.

Project Timeline

Here's how the project is set to unfold:

• - March 2023: Designated partnership with Itochu Urban Development confirmed
• - January 2024: Resolution to advance the site sale passed
• - June 2024: Certification for demolition necessity acquired
• - December 2024: Receipt of certification for acquisition plan
• - March 2025: Approval of the condominium site sale resolution
• - October 2025: Establishment of the Gyoen Ko Portfolio site sale association
• - February 2026: Approval for the distribution plan confirmed
• - May 2026: Final payment and initiation of demolition
• - May 2027: Construction set to commence (pending)
• - April 2029: Anticipated completion and handover start

Overview of the Building

Pre-Redevelopment vs. Post-Redevelopment

Location: Both pre- and post-construction will take place at 1-23-3 Shinjuku, Shinjuku-ku, Tokyo.
Transportation: Conveniently located three minutes from "Shinjuku Gyoenmae" station.
Site Area: 316.28 sqm before redevelopment, reduced to 315.25 sqm afterward.
Total Floor Area: Increases from 1,593.24 sqm to 2,516.93 sqm.
Floor Area Ratio: From 480% to approximately 594.81% after redevelopment.
Structure/Scale: Shift from reinforced concrete, seven-story building to a fifteen-story green space-friendly design.
Unit Count: Growing from 25 units (including one commercial space) to 31.
Completion Timeline: Originally built in November 1970, it will now be completed in April 2029.

Itochu Urban Development’s Commitment to Redevelopment

Itochu Urban Development is actively addressing the pressing issue of aging condominiums, having pushed through 11 redevelopment projects, including collaborative efforts, since the enactment of the "Law for Smooth General Redevelopment of Condominiums" in 2002. The company pioneered the first individually-led redevelopment in Setagaya Ward, Tokyo, and has explored various methodologies such as consortium, individual, and hybrid redevelopment strategies.

With a focus on small to medium-sized condominiums (ranging between 20 and 80 units), Itochu aims to build strong connections with management associations and property owners while continuing its commitment to facilitating condominium redevelopment efficiently.