On September 1, Toshi Soken Invest Fund and Minna de Ooyasan Sales issued a group statement after receiving administrative dispositions from the Osaka Prefectural Government and the Tokyo Metropolitan Government revoking their permits for real estate specified joint enterprise businesses.
The two companies said they take the administrative action extremely seriously and apologized for causing concern and anxiety among business participants due to delays in distributions and redemptions.
At the same time, they stated that they do not share the same view as the administrative authorities regarding all factual circumstances and legal assessments that led to the dispositions, and that they do not accept all of the authorities’ individual factual findings and legal assessments. They said they are still contesting the legality of the administrative disposition received in June 2024 through judicial proceedings.
Since July 9, 2025, the two companies have voluntarily suspended new solicitations and contracts, and said they have no plans to resume new business operations. At a hearing held on August 18, they proposed alternative measures: maintaining the suspension of new business operations, making regular reports under supervision, and focusing on responding to existing business participants, carrying out redemptions, and appropriately concluding existing operations.
They also explained that even if their permits are revoked, Article 65 of Japan’s Real Estate Specified Joint Enterprise Act deems them to be real estate specified joint enterprise operators to the extent necessary to conclude operations based on existing contracts. They said that their work to protect business participants will not end.
At the hearing, they raised concerns that if the permit revocations and their public announcement further undermine their credibility, making asset sales, fundraising, and organizational maintenance difficult, this could also affect their ability to fulfill the business participant protection duties required by the administrative authorities after the dispositions.
The two companies said they will work to preserve assets, sell assets, and secure funds for redemptions. They also released the full texts of the notices of permit revocation issued by the Osaka Prefectural Government and the Tokyo Metropolitan Government, as well as the written statements and oral statements submitted at the hearing.
Notice
This article was generated using automatic translation by GPT-4 API. The translation may not be accurate.
