Ishiro Matsui, the mayor of Osaka, recently held a regular press conference. At the time, he announced that at least three of the four companies he wanted to be included in the real estate appraisal had agreed on the rental price of the site to be tendered by Osaka IR.
Press Release:
The Osaka Port Authority said it had already been interviewed by the media on Dec. 15 and had not guided contractors to agree on a price. In the past, there has been no positive business performance, so companies have formed an opinion on the site.
It is stated as a “large commercial facility complex,” three of which agreed that 428 yen would be required, with a rent of US$3.15 per square meter. The value of the light industrial district where the real estate is placed is half of the price they agreed to.
The real estate rental plan includes 49 hectares of Yumeshima. The rental plan is currently designed for the next 35 years and will have an annual rent of 2.5 billion yen, or $18.4 million.
In a press conference, Matsui said, “The land was not for sale in the first place. The sale price was only calculated on the basis of determining the rent. You cannot determine the rent without knowing the value of the land. The IR operator asked that the IR plot be leased and not sold. They said they wanted the initial investment to be a building, not a land.”
Compared to USJ:
There were questions about the price increase, saying that it was not much lower than Universal Studios Japan had to bear. The market said, “When USJ first took the mound, the price was cheap, and it rose with the growth of USJ. Yumeshima’s land will not be sold and will be leased. We believe that prices will rise along with the market in the next 10 or 20 years.
First of all, it will make the land attractive. Same as the USJ. Land value will increase as the location becomes a central rallying point. However, the initial base must be assessed by the Appraisal Board. This is still a location that is not affected by the market.”
The Major said the decision was not directed by the government and was not personal. If there is any kind of problem with this matter, the Major will be held accountable and waive all of the annual compensation. He added that he will also punish those responsible for all violations.
The IR development plan, created by Osaka Prefecture, was submitted to the central government last April. The plan was decided with the help of MGM Resorts and ORIX, and is currently awaiting approval from the government. According to the plan, the property will be opened in the fall or winter of 2029.
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