TOKYO -- Mitsui Fudosan and the Nippon Telegraph and Telephone group will lead one of the largest post-2020 Olympics redevelopment projects in Tokyo, Nikkei has learned, a move that many hope will prevent construction demand from plunging following the 2020 Summer Games.
The project covers an area of roughly 70,000 sq. meters in the Uchisaiwaicho district, a prime location near the Imperial Palace that sits between the Ginza shopping district and Kasumigaseki, home of many Japanese ministries and agencies.
Construction is expected to begin in fall 2020 at the earliest, with the final stage slated for completion in 2036. Mitsui Fudosan and NTT Urban Development are the lead developers, with Tokyo Electric Power Co. Holdings participating as well.
The redevelopment takes place in three areas. A 46-story high-rise that includes offices and stores will be built in an area home to the building that NTT Communications used as its headquarters until 2018. The high-rise, with 330,000 sq. meters of floor space, is to be completed in 2025.
A 45-story building devoted partly to a hotel will be constructed in the area where Tepco and Mizuho Bank currently have their headquarters. This property is expected to open in 2027. Tepco may relocate its headquarters, which have been at the site since 1972.
Imperial Hotel's Tokyo property also stands in the redevelopment area. The current main building opened in 1970, followed by the tower building in 1983. Taking economic trends into consideration, the hotel will decide whether to simply renovate the properties or tear them down and rebuild.
Japan's construction market has been buttressed mainly by projects related to the 2020 Tokyo Olympics. Domestic orders received by major general contractors topped 15 trillion yen ($138 billion) in fiscal 2018 for the first time in 20 years, according to the Japan Federation of Construction Contractors. But concerns exist that construction will fall after the games, hurting the economy.
Nikkei staff writers Toshihide Takeda, Hiroyasu Oda and Mami Osada in Tokyo contributed to this report.