Urban Comprehensive Research Investment Fund has temporarily suspended the execution of transfer contracts for the real estate co-ownership fund ‘Everyone’s Land advice of regulatory actions taken by Osaka and Tokyo Prefectures.
On June 17, following administrative measures based on the Act on Specified Joint Real Estate Ventures against Urban Comprehensive Research Investment Fund and the sales of ‘Everyone’s Landlord,’ there was a surge in offers to transfer contractual positions, prompting this suspension.
The fund stated, “Prioritizing the protection of our participants, we temporarily suspend the conclusion of transfer contracts as stated in the important matters explanation document. Going forward, we will disclose information on our website in a timely manner in accordance with the law to avoid unfair practices and ensure fairness in information. Note that this measure does not affect the distribution of profits or the valuation of contributions.”
According to Osaka and Tokyo Prefectures, there was a failure to disclose critical aspects of the ‘Narita Airport Area Development Project’ to investors, despite recognizing that changes in the project’s business plan significantly affected the real estate’s value. Furthermore, some funds included land not covered by development permissions in their real estate, yet advertised as having received such permissions, and attempted to correct this by exchanging unauthorized land with authorized ones, engaging in improper contract modifications with investors. Additionally, the documents provided before contract conclusion inaccurately depicted the site’s condition before the completion of land development.
In May, the group’s Kyosei Bank revealed plans to build the mixed-use facility ‘GATEWAY NARITA’ near Narita International Airport. The facility will cover an area of approximately 445,000 square meters with a total floor area of about 380,000 square meters, planning to open in March 2027. It was claimed to include an arena with over 5,000 seats and a screen area of 6,000 square meters, the largest hotel in the area, research and development facilities for expanding Japanese food exports, a bus terminal, and parking buildings.
The Urban Comprehensive Research Investment Fund operates the ‘Everyone’s Landlord’ brand of real estate co-ownership funds, which has raised funds from individual investors and others for the ‘Narita Airport Area Development Project’ over 18 periods. The operation period is about five years with an expected return of 7%, which has been critiqued for not performing well, raising doubts on social media. Although Rakumachi Real Estate Investment Newspaper raised concerns about the scheme, it withdrew the article after Kyosei Bank and two other group companies filed a criminal complaint.
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This article was generated using automatic translation by GPT-4 API. The translation may not be accurate.
