News Releases
2004

* Information contained in this news release is current as of its date of announcement. Be aware that information contained herein is subject to change without notice.

Groundbreaking Ceremony held for Minami Aoyama 1-Chome Housing Complex Reconstruction Project Tokyo’s First Public Land Rehabilitation Project Funded with PFI

February 23, 2004
Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd. announces that the groundbreaking ceremony for the project —the Minami Aoyama 1-Chome Housing Complex Reconstruction Project was held today. The project has received approval to proceed with Tokyo’s first public land urban redevelopment project. The Tokyo Metropolitan Government has introduced a private finance initiative (PFI) into the project.

The project to redevelop the Minami Aoyama 1-Chome Housing Complex will be headed by a consortium structured by Mitsui Fudosan, which will lease the land from the Tokyo Metropolitan Government for a period of 70 years. The aim of the project is to create an integrated facility incorporating public housing and private facilities. The plan calls for intensive use of the site by constructing a complex that serves multiple municipal functions, including public housing, public facilities (nursery school and library), a senior citizens group home as well as private facilities (rental housing, commercial/business complex, and the Graduate School of the International University of Health and Welfare).

Under the business plan, Minami Aoyama Apartment Corporation, jointly funded by the project leader Mitsui Fudosan and other enterprises, will handle all aspects of design, planning and construction. After completion, the Tokyo Metropolitan Government will purchase and operate the public housing complex, the government of Minato Ward will purchase and administer the nursery school and library, while the medical cooperative Junwakai will purchase and operate the senior citizens group home. The private facilities will be held by Minami Aoyama Apartment Corporation, which will operate a leasing business. The management and maintenance of the common areas will be handled by a management group jointly composed of the Tokyo Metropolitan Government, Minato Ward, Junwakai and Minami Aoyama Apartment Corporation.

In consideration of the surrounding environment, the master plan calls for construction of a 46-story North Tower, including rental housing units and commercial/business facilities, on land adjacent to Aoyama Avenue. The south side will house a 14-story South Tower consisting mainly of public housing. A community square will occupy the space between the two towers. In the interest of safety, pedestrian and vehicle traffic will be kept separate.

To raise capital for the project, Minami Aoyama Apartment Corporation will issue mezzanine bonds, which the Urban Renaissance Fund Inc. will purchase, thereby providing stable fund procurement throughout the period from project start to stable operation. Minami Aoyama Apartment Corporation also plans to acquire a senior loan commitment line of credit from Mizuho Corporate Bank at project start to cover any post-completion expenses.

Mitsui Fudosan has undertaken several projects involving urban high-rise condominiums. In addition to its housing sales business for end users, the rental housing developments have emerged as a stand alone pillar, developing the Park Axis series of condominiums, aimed at providing high-quality rental housing in urban areas, and operating a serviced apartment business.

In developing the Minami Aoyama 1-Chome Housing Complex Reconstruction Project, Mitsui Fudosan has leveraged its accumulated expertise and experience, and harnessed the combined capabilities of the overall Mitsui Fudosan Group, including Mitsui Fudosan Housing Lease Co., Ltd. and Mitsui Fudosan Housing Service Co., Ltd., which will handle post-completion condominium leasing and property management. Simultaneously, Mitsui Fudosan has cooperated with other participants in the project to bring the very best in affluence and comfort to urban living.

<Attachment 1 > Complex overview

<Attachment 2> Property overview

Location 3 Minami Aoyama 1-chome, Minato-ku, Tokyo
Access One-minute walk from Aoyama 1-Chome Station on the Ginza , Hanzomon, and Oedo Subway Lines
Operator Minami Aoyama Apartment Corporation (a special purpose corporation established by Mitsui Fudosan, Taisei Corporation, and Itochu Corporation.)
Participants Mitsui Fudosan (development), Taisei (design/construction), Itochu (development), UG Urban Construction (design), Mitsui Fudosan Housing Lease (tenant management for private rental housing, and Mitsui Fudosan Housing Service (property management).
Site area 6,784m2
Main facilities

Public housing (Tokyo Metropolitan Government, 150 units)
Private rental housing (390 units)
Minato Ward nursery school (1,100 m 2)
Minato Ward library (1,400m 2 )
Senior citizens group home (500m 2 )
Graduate School of the International University of Health and Welfare (1,400 m 2 )
Commercial/business facilities (2,200 m 2 )

Schedule Commence:March 2004 (tentative)
Completion: March 2007(tentative)

<Attachment 3 > Exterior Photo

<Attachment 4> Location map