TOKYO -- Nomura Real Estate Holdings will launch a 350 billion yen ($3.41 billion) redevelopment project in Tokyo's Hamamatsucho district, close to a station for magnetic-levitation bullet train service slated to launch in a decade or so.
Construction will begin on two high-rises as early as 2020 for completion in 2030. They will host mainly offices in a total floor space of up to 500,000 sq. meters -- comparable in size to a skyscraper planned by Mitsubishi Estate near Tokyo Station for completion in fiscal 2027.
Nomura Real Estate hopes to capitalize on the proximity to Haneda Airport and the Shinagawa area, a stop for maglev bullet train service to begin as early as 2027. The company will consider offering ferry service to and from the airport.
The project is premised on the government easing floor area ratio regulations in national strategic special zones. The company has filed to have the area designated one such zone. The site sits near Toshiba's headquarters, which is indirectly owned by Nomura Real Estate. With JR East redeveloping the World Trade Center Building near Hamamatsucho Station, Nomura Real Estate aims to make the area an office hub like Marunouchi and Roppongi.
Home sales account for roughly 60% of Nomura Real Estate's revenue. This heavier reliance on the business makes the company more susceptible to economic cycles than rivals. It hopes to increase stable rental income from office buildings to grow into a more comprehensive property developer.