Philia Corporation Announces Acquisition Case of 'Terraced & Narrow Vacant House' in Taito-ku, Tokyo

Philia Corporation (Representative Director: Naoyuki Koshikawa; Itabashi-ku, Tokyo) has announced a case study of acquiring a 'terraced' (nagaya) and 'ultra-narrow' vacant house.

In response to the increasing social problem of vacant houses and the challenge where 'terraced' and 'ultra-narrow' real estate properties have significantly low market value, this case serves as an example of a new approach.

[Background]
According to a survey by the Ministry of Internal Affairs and Communications, the number of vacant houses in Japan is increasing year by year, making their management and disposal a social issue.

Currently, real estate properties featuring 'terraced/nagaya style,' 'reconstruction impossible,' 'shared ownership,' or 'complex leasehold rights' in the Tokyo metropolitan area are often rejected by major brokerages due to difficulties in securing residential loans or adjusting rights, leaving them unsold and unmanaged.

[Case Overview]
This case involves a vacant house in a prime location near Uguisudani Station on the Yamanote Line, which was effectively impossible to reconstruct or utilize independently because it was a 'terraced' house connected to a neighbor and 'ultra-narrow.' The company acquired it with a plan to utilize the current building for rental operation while looking toward future integration with the adjacent land.

[Property Overview]
Location: Negishi, Taito-ku, Tokyo
Transport: Near Uguisudani Station on the Yamanote Line
Property Type: Used detached house (terraced style)
Current Status: Vacant (with remaining items)
Key Notes: Narrow lot, partially connected to neighboring building (reconstruction impossible individually, rejected for loans)
Transaction Type: Direct acquisition by the company

[Background of Consultation and Challenges]
While located in a highly accessible area near Uguisudani Station, the house had problems: it was 'terraced,' meaning it was connected to part of the neighboring building, and required the neighbor's consent for separation or reconstruction. The biggest obstacle was that both the land and building were extremely 'narrow.' Even if separation work were successfully completed, the remaining land would be too small for building, making physical land utilization impossible and leaving the owner unable to find buyers in the general market.

[Company Response and Solution]
For general buyers and house builders, 'extremely narrow terraced houses that cannot be built on independently' are useless and excluded from purchase. However, Philia Corporation evaluated the 'potential of the location' near the city center and station as the highest priority.
Instead of forced demolition or reconstruction, the company proposed acquiring the property based on the operational premise of 'gaining rental income by utilizing the existing building as is.' Due to the company's direct settlement without relying on loans, they achieved a speedy cash liquidation even for such a difficult, narrow, terraced property.

[Long-term Exit Strategy and Potential]
For 'terraced/nagaya' and 'narrow' properties like this one, the individual market value is significantly low. However, as a long-term exit strategy, if the company can 'cooperate with the neighbors in the future to consolidate and sell (or acquire) the land,' it becomes a larger plot with the potential to significantly increase asset value. The company has established a scheme based on an 'ownership and investment perspective,' aiming for rights adjustment and integration with neighbors from a long-term viewpoint while earning rental income in the meantime. This allows them to acquire even such seemingly deadlocked properties at fair prices.

[Future Outlook]
Philia Corporation will strengthen its provision of realistic solutions based on over 1,000 field experiences and highly transparent IT-driven assessments to address the deepening vacant house problem. Moving forward, the company intends to deepen cooperation with local governments and legal professionals to regenerate 'difficult-to-utilize real estate' into 'valuable assets' that contribute to local safety and security. They aim to build a sound real estate distribution infrastructure that does not leave negative legacies for the next generation.