This report provides a detailed explanation of the "Kudan Minami 1-chome Area Urban Area Redevelopment Project Type 1", a high-profile large-scale project in Chiyoda-ku, central Tokyo, from the perspective of a real estate expert. This redevelopment has the potential to significantly change the landscape in front of Kudanshita Station and create new value. We hope this article will be a useful source of information for real estate investors and all those interested in the future of the area.
This project is a Type 1 urban redevelopment project covering an area of approximately 0.6 hectares adjacent to the Tokyo Metro Kudanshita Station. The project operator is the "Kudan Minami 1-chome Area Urban Redevelopment Association," which aims to renew aging buildings and make advanced use of the land. The area around Kudanshita Station is positioned in the urban planning master plan of Chiyoda Ward as a "highly functional creation and collaboration center," and is expected to contribute to strengthening the international competitiveness of the capital city of Tokyo through the concentration of various urban functions such as business, commerce, culture, and public welfare.
The project involves the construction of a skyscraper complex with 32 floors above ground and 3 floors below with a height of approximately 170 meters and a total floor area of approximately 81,260 square meters. The low-rise portion of the building will house retail stores and public utility facilities, while the mid-rise portion will house high-performance offices. The total project cost is expected to be approximately 93.2 billion yen, indicating the scale of the project. The following is a summary of the facilities.
| Item | Description |
|---|---|
| Location | Kudan Minami 1-chome, Chiyoda-ku, Tokyo |
| Area | Approx. 0.6 ha |
| Number of floors | 32 above ground, 3 basement levels |
| Height | Approx. 170 m |
| Total floor area | Approx. 81,260 m2 |
| Principal uses | Offices, stores, public utility facilities, parking, etc. |
| Total project cost | Approx. 93.2 billion yen (estimate) |
The project will be carried out in phases from a long-term perspective: following approval of the association's establishment in November 2025, the project will move on to the formulation of a rights conversion plan and actual construction work. Construction is scheduled to be completed in 2033, and a new landmark in Kudanshita will be born over the next 10 years.
| Item | Time (planned) |
|---|---|
| Urban planning decision | March 2024 |
| Approval to establish an association | November 2025 |
| Approval of rights conversion plan | Fiscal year 2026 |
| Start of construction | FY2028 |
| Completion of building | Fiscal year 2033 |
Here is a brief explanation of the structure of the "Type 1 Urban Area Redevelopment Project" used in this project. Based on the Urban Redevelopment Law, this project aims to achieve rational and sound high-level use of land and renewal of urban functions in urban areas with a high concentration of dilapidated wooden buildings. In particular, "Type 1" is characterized by the use of the rights conversion method. This refers to a method in which, in principle, the rights to the land and buildings (previous assets) prior to the project implementation are replaced with the floors (rights floors) of a new building (facility building) to be completed after the project is completed, at an equivalent price.
The rights conversion method offers many advantages to landowners. First, landowners can expect a significant increase in asset value because they can acquire floors in the new building that are equivalent to the value of their previous assets. In addition, redevelopment projects are often eligible for tax incentives such as property tax and city planning tax exemptions, as well as subsidies from the national and local governments, reducing the burden of participating in the project. This enables landowners to form safer and more comfortable assets with less out-of-pocket expenses.
Urban redevelopment projects not only improve individual property values, but also bring significant benefits to the community as a whole. By consolidating subdivided land and constructing apartment buildings with superior earthquake and fire resistance, the disaster prevention function of a city can be dramatically improved. In addition, by integrating public facilities such as roads, parks, and plazas, the comfort of pedestrian space and the convenience of the community will be enhanced. The redevelopment of the Kudan-Minami 1-chome District will indeed renew these urban functions and create a safe and attractive city.
According to the Tokyo Metropolitan Government, the project aims to achieve three main effects. These are concrete visions of the future of the Kudanshita area.
The core of the project is the development of a multi-layered station plaza directly connected to the Kudanshita subway station. This will smoothly connect the station to the city and strengthen the station's function as a transportation node. In addition, since the Nippon Budokan and other large-scale visitor facilities are located nearby, the plaza will provide a space where many people can stay during events and serve as a base for creating a lively atmosphere for the entire area. 2.
The project also focuses on the creation of comfortable pedestrian space. By widening the path along the Nihonbashi River and creating a pedestrian space with eaves along Uchibori Dori, a network will be created that allows people to move comfortably even on rainy days. Furthermore, by creating a highly hydrophilic walking space along the Nihonbashi River and promoting greening along Uchibori-dori Avenue, we will create a "network of water and greenery" that leads to the rich greenery of the Imperial Palace, thereby creating a pleasant urban landscape.
The redevelopment building will have a concentration of offices and commercial facilities equipped with the latest equipment, and will lead the renewal of urban functions for the entire region, in cooperation with the surrounding administrative functions. At the same time, the building will also function as a temporary accommodation facility for people who have difficulty returning home in the event of a disaster. The plaza space can also be used as an evacuation site, contributing to the safety and security of the entire community by serving as a disaster prevention center in cooperation with the surrounding community.
Kudanshita Station is one of the most important transportation hubs in Tokyo, served by the Tokyo Metro Tozai Line, Hanzomon Line, and Toei Shinjuku Line. It is adjacent to the Imperial Palace, the Nippon Budokan, Yasukuni Shrine, and other facilities that symbolize Japanese history and culture, while also serving as an office district where the headquarters of major corporations are located. This unique combination of business, culture, and history makes Kudanshita a unique area.
Chiyoda Ward's "Master Plan for Urban Planning" calls for strengthening international competitiveness and realizing a safe and comfortable urban environment. This redevelopment project is the realization of this policy. As a "hub for the creation of central functions and collaboration," the project is expected to contribute to the enhancement of the overall value of the area by integrating advanced business and commercial functions, and by collaborating with other redevelopment projects in the vicinity, such as the "SMBC Kudan Project (tentative name)" underway on the adjacent land to the south.
The most important thing for landowners is the rights conversion process. In the "rights conversion plan" that will be prepared in the future, the value of the land and buildings you currently own (previous property appraisal value) will be calculated, and the floor area of the new building (rights floor) will be determined accordingly. It is essential to fully understand the basis for the calculation of the assessed value and the right-of-use floor space, and to proceed with consensus building in a satisfactory manner. In addition, if you do not wish to convert your rights and choose to move out of the district, you have the right to receive just compensation. We recommend that you proceed with careful consideration, taking into account the need to consult with specialists.
Large-scale redevelopment can have a significant impact on the surrounding real estate market. In general, when redevelopment improves the convenience and attractiveness of an area, land prices and rental rates tend to rise. In particular, the increased supply of highly functional office space in areas with convenient transportation, such as Kudanshita, may promote the influx of new companies and further increase rental demand. While new investment opportunities will be created for real estate investors, they will need to carefully monitor market trends.
The credibility of the participating companies is extremely important to the success of this project. The project is expected to be stable and of high quality, as the names of the participating companies represent the industry.
| Role | Company Name |
|---|---|
| Participating partners | Sumitomo Real Estate Development Co. |
| Project collaborator | Sumitomo Real Estate Development Co. |
| Project consultant and basic design | Nikken Sekkei Ltd. |
Both Sumitomo Real Estate and Japan Post Real Estate have extensive experience as developers. Nikken Sekkei, which is handling the basic design, is a leading Japanese architectural design firm that has successfully led numerous large-scale projects in Japan and abroad. By bringing together these top-notch firms, high-quality urban development is sure to be realized.
The "Kudan Minami 1-chome Urban Area Redevelopment Project" is not just a simple reconstruction of a building, but a grand project to create the future of the Kudanshita area. The creation of a 170-meter-high skyscraper complex will contribute significantly to upgrading urban functions, enhancing disaster prevention functions, and creating a landscape rich in water and greenery. toward completion in 2033, landowners, investors, and the local community are expected to join together in this historic urban development project. Important processes will continue, including the development of a rights conversion plan.