September 19, 2002
Solution Inc., based in Shinjuku-ku, Tokyo with Shinichi Chino as president (hereinafter referred to as Land Solution), has founded the "Soil Pollution Research Fund" to promote soil pollution research in its affiliated company, Land Management Ltd. This company is based in Shinjuku-ku, Tokyo with Yoshihide Kyogoku as president (hereinafter referred to as Land Management). The fund will commence operation in October. The objective of this move is to promote the fluidization of high-quality real estate assets for which active utilization has stagnated because of the difficulty in implementing soil pollution research for financial reasons. In addition, the fund will provide support as it is a beneficiary of the existing financing program for anti-soil pollution measures.
Since its launch in August last year, Land Solution has provided the facilities to eliminate the risk of soil pollution from real estate property deals, to respond to anticipated changes in circumstances surrounding soil pollution. These facilities to eliminate risk start with the quantification of the latent risks of soil pollution to land owners and the parties concerned. For land negotiations and contracts, Land Solution estimates the soil pollution risks while answering questions from customers on soil pollution. Land Solution can hedge the risks if necessary. As there has been great demand for such services, Land Solution has received 250 orders on soil pollution research and decontamination over the last year since operations commenced.
We have become aware that there are many small or midsize companies as well as companies that are restructuring that have limited financial resources and that are unable to undertake any research to evaluate the risk of soil pollution. Land Solution understands that this is one of the challenges in accomplishing its mission. It is one of the major reasons for the fund being established.
In response to the Soil Pollution Control Law coming into effect and increasing attention to soil pollution issues, real estate businesses are preparing for soil pollution risk assessment as a prerequisite for real estate deals. In addition, financial institutions consider soil pollution risks when evaluating loans. The issue of soil pollution is expected to make things more difficult for small to medium-size companies and companies striving to rehabilitate themselves.
With a wish to serve them and to contribute to the liquidation of real estate assets, we have established the fund with the support of our investors, UFJ Bank Limited, The Asahi Bank, The Chuo Mitsui Trust and Banking Co., Ltd. and Sumitomo Mitsui Banking Corporation. Over the next twelve months, the business is expected to receive several hundred orders, with total sales of several hundred million yen.
In addition to the Soil Pollution Research Fund, Land Solution is in the course of jointly developing an insurance policy with Sonpo Japan Insurance Inc. that guarantees research results that confirm an absence of pollution. We will continue to enhance our services and, in particular, continue our comprehensive research to provide measures that will enable you to actively utilize your real estate assets.