— Achieving average rents at 75% of market rates, accelerating residential stability for child-rearing households in Tokyo and the creation of a "Japanese Affordable Housing" market —

LivEQuality Ooyasan Co., Ltd. (Headquarters: Nagoya City, Aichi Prefecture; CEO: Takuya Okamoto; hereinafter "the Company"), a pioneer of affordable housing in Japan dedicated to solving housing issues, has been selected as the fund manager for the "Public-Private Partnership Affordable Housing Supply Promotion Fund" established by the Tokyo Metropolitan Government. This selection was made as part of a consortium formed with Max Realty Co., Ltd. and Resona Real Estate Investment Advisory Co., Ltd., and the Company will enter into an investment agreement with the Tokyo Metropolitan Government.

Based on this agreement, the Tokyo Metropolitan Government will invest 4 billion yen (approx. USD 26.6 million) out of its total 10 billion yen investment framework into the "LivEQuality TOKYO Affordable Housing Supply Investment Limited Partnership" formed by this consortium. With the strong backing of the Tokyo Metropolitan Government and by combining private capital (such as from Resona Bank, Ltd.), the fund will operate at a scale of over 8 billion yen (approx. USD 53.3 million). It aims to promote the supply of affordable housing within Tokyo and the establishment of a Japanese Affordable Housing model.

Japan’s First Groundbreaking Scheme by the Tokyo Metropolitan Government

The Tokyo Metropolitan Government is strongly promoting the creation of an environment where it is easy to give birth to and raise children, based on the "Tokyo Metropolitan Housing Master Plan" and "Tokyo Measures Against Declining Birthrates 2025." The newly established fund is a first-of-its-kind initiative in Japan to leverage public funds as a catalyst to draw out private sector vitality for the supply of affordable housing. The Company deeply resonates with this advanced policy, which aims for both social problem-solving and economic sustainability, and feels a great sense of responsibility and mission as a key partner selected to implement this policy.

Initiatives of Our Consortium: Delivering Approximately 75% of Market Average

In this fund, our consortium aims to supply housing at the following levels:

• Rent Setting: Approximately 75% of average market rent

• Target Households: Child-rearing households, etc., with an annual household income of 6 million yen (approx. USD 40,000) or less

• Supply Scale: Approximately 200 units (expected to include approximately 70 affordable housing units)

By delivering rent settings that go beyond general affordable housing standards, we will provide highly effective support to child-rearing and single-parent households facing economic anxiety in the Tokyo area. Furthermore, we will go beyond simply providing housing by offering integrated support, including holistic accompaniment support to help residents rebuild their lives and connect with the community. In doing so, we will expand our unique model in Tokyo, where housing serves as a foundation for the restoration of dignity and economic independence.

Future Outlook

Through the fund's investment period over the next five years, we will acquire properties within Tokyo and proceed with the sequential supply for 10 years following acquisition. By fusing the advanced real estate and financial expertise of Max Realty Co., Ltd. and Resona Real Estate Investment Advisory Co., Ltd. with the Company's know-how in affordable housing, we will achieve a high level of both social impact and business viability. We intend to ensure that this great step taken by the Tokyo Metropolitan Government leads to concrete results and to co-create a new standard for Japan’s housing safety net.

Comment from Takuya Okamoto, CEO of LivEQuality Ooyasan Co., Ltd.

It is a great honor to take on the challenge of creating an affordable housing market through a consortium formed with Max Realty Co., Ltd. and Resona Real Estate Investment Advisory Co., Ltd., alongside such a powerful partner as the Tokyo Metropolitan Government. We view the decision to grant us 4 billion yen—the largest scale of investment within the Tokyo Metropolitan Government's 10-billion-yen framework—as a great expectation for our approach of providing quality housing and connection. As a pioneer of affordable housing in Japan, we will leverage the power of public-private partnerships to build a social infrastructure where everyone can live with peace of mind.

【Fund Overview】

• Partnership Name: LivEQuality TOKYO Affordable Housing Supply Investment Limited Partnership

• Investment Structure: Tokyo Metropolitan Government (4 billion yen), Private Investors (Resona Bank, Ltd., etc.)

• Fund Scale: 8 billion yen or more (estimated)

【Consortium Member Companies】

• Joint GP & Sub-Asset Manager: LivEQuality Ooyasan Co., Ltd.

• Joint GP: Max Realty Co., Ltd.

• Asset Manager: Resona Real Estate Investment Advisory Co., Ltd.

About LivEQuality Ooyasan

LivEQuality Ooyasan is a company that delivers low-cost, comfortable housing and social connections to those experiencing housing insecurity. It operates a "Japanese Affordable Housing" business that pursues both economic viability and social impact.

With 1.2 million households, a relative poverty rate of 48%, and an average monthly household income of 230,000 yen, mother-child (single-mother) families face a dire reality. At the root of this lies the housing problem.

Single mothers who have lost their homes due to domestic violence (DV) or divorce often find it difficult to receive assistance from administrative systems based on address-based principles (where housing is a prerequisite for support) in Japan. If they cannot place their children in daycare, they cannot work. Without a job, they cannot rent a house, falling into a "negative spiral."

Public housing is highly competitive and difficult to enter, while low-cost private housing is often poorly located or dilapidated. In Japan, there is a lack of housing that serves as a foundation for single mothers to maintain their dignity while achieving economic independence.

LivEQuality Ooyasan solves these challenges starting with housing. First, we purchase buildings in prime urban locations sought after by tenants and general residents. We maintain parts of the building that have deteriorated through repairs and renovations. While ensuring the profitability of the entire building by increasing its quality, we lease a portion of the units at below-market rates. Through this mechanism, we provide clean, convenient private rooms with easy access to employment opportunities to single mothers at low rents.

To date, we have supported 31 households consisting of 75 mothers and children. One-fifth are foreign nationals. LivEQuality provides support ranging from accompanying residents for administrative procedures—such as moving in while escaping DV or applying for daycare—to building connections with the local community. Due to this holistic accompaniment support and the provision of clean, convenient rooms with easy access to employment, the employment rate of single mothers who have been in residence for over six months exceeds 80%. With support from LivEQuality, single mothers are walking the path toward independence, including employment, life reconstruction, and completion of divorce proceedings.

Company Profile

• Company Name: LivEQuality Ooyasan Co., Ltd.

• Location: 1-11-3 Chitose, Atsuta-ku, Nagoya City, Aichi Prefecture

• Established: November 2022

• Capital: 278.01 million yen (including capital reserves)

• CEO: Takuya Okamoto

• Directors: Mariko Miyazaki, Motoo Suda (Certified Public Accountant), Ryosei Nishida (Attorney at Law)

• Auditor: Masao Mizobuchi (Attorney at Law)

• Business Description: Procurement and provision of housing for single mothers 

 Contact Information

• Email: lq_ooya_info@livequality.co.jp (Attn: Takahashi)

• Phone: 052-387-8177 (c/o Chitose Construction Co., Ltd.)

• URL: https://livequality.co.jp/ooya