Japan Post's share price has been trending upward since May, drawing attention to real estate development as a new source of revenue. Plans for large-scale redevelopment of central Tokyo sites and the scale of future investment have been reported.
Japan Post had languished for many years after its 2015 listing, but in May this year it announced a medium-term management plan positioning its real estate business as a new pillar of revenue. Buying spread among market participants, led by overseas investors, and the share price reportedly reached a record high in September.
The former dormitory site in Shirokane-Takanawa, Tokyo, has been cleared for redevelopment, with a 39-story tower condominium currently planned for 2030. Demolition is also progressing at the former Nihonbashi Post Office site, where a high-rise office building is scheduled for completion in fiscal 2034.
Japan Post owns land with a book value of approximately ¥1.4 trillion, of which approximately 30% has been repurposed for leasing and other uses. The current market value of its operating land and buildings combined is approximately ¥1.6 trillion.
Under its real estate development plans, Japan Post is expected to invest ¥260 billion and use assets near major stations across Japan to pursue a top-10 position among comprehensive developers.