Risk relating to approvals and stakeholder agreements for the Imperial Hotel Tokyo redevelopment plan
First written in FY2021. 4 of 8 entries say "Restated". Latest entry: FY2026.
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- FY2026WorsenedAnnual report
「In addition, the Company aims to redevelop the Tower Building as a joint project with Mitsui Fudosan Co.,Ltd. Following the demolition of the existing Tower Building, the Company plans to subdivide the site and transfer a portion of its co-ownership interest in the land to Mitsui Fudosan Co.,Ltd. for consideration. The Company and Mitsui Fudosan Co.,Ltd. plan to enter into a sale and purchase agreement for the transfer after discussions, but the timing of execution of the agreement and the transfer remains undecided. If the agreement is not executed as planned, the transfer may affect the Group's operating results.」
New implementation conditions and risks were specified for the Tokyo redevelopment plan, including the joint project with Mitsui Fudosan Co.,Ltd., the sale of a co-ownership interest in the land, and the undecided timing of the sale and purchase agreement and transfer. The total project scale is stated as approximately ¥200 billion to ¥250 billion. - FY2025WorsenedAnnual report
「The total project scale associated with the redevelopment is expected to be approximately ¥200 billion to ¥250 billion. However, if material costs rise due to higher prices for construction materials or labor costs, the resulting burden may exceed the expenses initially assumed. In addition, the financing plan for the redevelopment is scheduled to be formulated after discussions with the relevant parties. Depending on its terms, the cost of financing the redevelopment, including interest rate fluctuations, may affect the Group's operating results and financial position.」
The risks associated with the Tokyo redevelopment plan were specified as a total project scale of ¥200 billion to ¥250 billion, increases in material and labor costs, financing costs, and interest rate fluctuations, expanding the potential scope of its financial impact. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」
No material changes were identified in the key risks relating to approvals and permits, agreement among relevant parties, and tenant departure costs associated with the Imperial Hotel Tokyo redevelopment plan. - FY2024-Q3RestatedAnnual report
「In connection with the Imperial Hotel Tokyo redevelopment plan approved at the Board of Directors meeting held on 25 March 2021, cases are expected to arise in which payments such as relocation compensation will be made as part of specific negotiations concerning tenants' departures. The amounts of such payments are not determined unambiguously by law or contract, and reasonable estimates become possible as negotiations progress. However, no amounts have been disclosed for matters for which negotiations had not commenced as of the end of the third quarter of the current consolidated accounting period, because the amount of the resulting loss is difficult to estimate.」
Regarding tenant departure costs associated with the Tokyo redevelopment plan, the explanation remains that amounts have not been disclosed for matters where negotiations have not commenced because the resulting losses are difficult to estimate. - FY2024-Q2Specific costs and negotiation risks associated with tenant departuresAnnual report
「In connection with the Imperial Hotel Tokyo redevelopment plan approved at the Board of Directors meeting held on 25 March 2021, cases are expected to arise in which payments such as relocation compensation will be made as part of specific negotiations concerning tenants' departures. The amounts of such payments are not determined unambiguously by law or contract, and reasonable estimates become possible as negotiations progress. However, no amounts have been disclosed for matters for which negotiations had not commenced as of the end of the second quarter of the current consolidated accounting period, because the amount of the resulting loss is difficult to estimate.」
The risks associated with the Tokyo redevelopment plan were specified as relocation compensation payable when tenants depart, matters for which negotiations have not commenced, and the difficulty of estimating the resulting losses. - FY2023-Q3RestatedAnnual report
「The final implementation of this plan is subject to obtaining the necessary approvals and permits under the Building Standards Act and other applicable laws and regulations, as well as reaching agreement with relevant parties, including neighboring rights holders and other related bodies. Accordingly, if the necessary approvals and permits cannot be obtained or agreement cannot be reached with the relevant parties, the Company may ultimately decide not to implement the plan.」
For the Imperial Hotel Tokyo redevelopment plan, it was reconfirmed that obtaining the necessary approvals and permits and reaching agreement with the relevant parties are prerequisites for implementation, and that the plan may not be implemented if these cannot be obtained or reached. - FY2022-Q2RestatedAnnual report
「The final implementation of this plan is subject to obtaining the necessary approvals and permits under the City Planning Act, the Building Standards Act and other applicable laws and regulations, as well as reaching agreement with relevant parties, including neighboring rights holders and other related bodies. Accordingly, if the necessary approvals and permits cannot be obtained or agreement cannot be reached with the relevant parties, the Company may ultimately decide not to implement the plan.」
For the Imperial Hotel Tokyo redevelopment plan, it was reconfirmed that obtaining the necessary approvals and permits and reaching agreement with the relevant parties are prerequisites for implementation, and that the plan may not be implemented if these cannot be obtained or reached. - FY2021First statedAnnual report
「The final implementation of this plan is predicated on obtaining approvals and other authorizations under the City Planning Act, the Building Standards Act and other applicable laws and regulations, and reaching agreement with neighboring rights holders and other relevant organizations. Accordingly, if the necessary approvals and other authorizations cannot be obtained, or agreement cannot be reached with the relevant organizations, we may ultimately decide not to implement the plan.」
It was stated that implementation of the redevelopment plan requires statutory approvals and agreements with neighboring rights holders and others, and that the plan may not be implemented if these cannot be obtained.