Japan Press Weekly

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2017 August 16 - 22 [SOCIAL ISSUES]

Tokyoites: 90%-discount sale of Tokyo-owned land is illegal

Thirty-three Tokyoites filed a lawsuit with the Tokyo District Court on August 17, arguing that the sale of Tokyo-owned land at one-tenth of the market price under the pretext of the need to build 2020 Olympics athletes’ dormitories is illegal.

The plaintiffs claim that the metropolitan government last year sold off about 134,000-square-meters of land in Tokyo’s bay area to a joint venture consisting of 11 real-estate firms at the price of 12.96 billion yen, a 90% discount off the market land value. As much as 130 billion yen was the estimated fair value for the land.

They demand that the metro administration request a payment of about 100 billion yen in loss of earnings due to the huge markdowns to former Governor Masuzoe Yoichi, present Governor Koike Yuriko, chief of Tokyo’s Urban Development Bureau, and the 11 real-estate companies.

The 11 real estate companies will construct apartment housing and a commercial complex on the land in question by 2020 and will open a part of it as an athletes’ village during the Games. After the event, they will build two skyscraper condominiums and 23 apartment buildings by 2024.

Seven of the 11 companies employ a total of 12 former senior officials of the Tokyo metropolitan government. Plaintiffs’ lawyers say that the “parachuting” of the retired officials onto cushy positions at these firms will be an important point for consideration at the trial.

Past related article:
> Firms constructing 2020 Olympic village offer golden parachutes to Tokyo gov’t officials [March 14, 2017]