Railway Firms Renewing Property Development Along Train Routes

August 09, 2005
Railway Firms Renewing Property Development Along Train Routes

TOKYO (Nikkei)--Tokyu Corp. and other major railway companies that serve Tokyo and its environs plan to resume developing land along their rail lines.
Tokyu plans to kick off in April a joint project with other property owners to redevelop an 8.1-hectare site around its Denen Toshi line's Futako-Tamagawa Station in western Tokyo. The project will entail the construction of nine buildings, including a 43-story condominium complex.
The company also plans to build a commercial complex at Tama Plaza Station, also on the Denen Toshi line. To be opened in 2007, the complex is expected to house 150 or so stores.
In addition, Tokyu is considering redeveloping a former train depot site in Jiyugaoka, Tokyo, for construction of a commercial complex and other buildings.
These moves are aimed at enhancing the pulling power of towns along the firm's railway lines.
With baby boomers approaching retirement age, railway companies see a strong need to revitalize the communities in their service areas to attract new blood.
Keihin Electric Express Railway Co. plans to spend 20 billion yen to build about 670 homes for sale in Yokosuka, Kanagawa Prefecture, by around 2010 in its first real estate project in 20 years.
And Tobu Railway Co. is contemplating redeveloping its freight yard in Sumida Ward in Tokyo, where its headquarters are located. The firm plans to build a commercial-residential complex on the 6-hectare plot.
Around 12 million people reside in the areas along Tobu's railway lines, but the company believes this population may start declining in 2010 or later, centering on Gunma and Tochigi prefectures.

(The Nihon Keizai Shimbun Tuesday morning edition)