TOC building reopens, new construction delayed amid rising costs

TOC Co., Ltd. announced today that the TOC Building, which closed in March 2024, has resumed operations for rental and event businesses as of September 2024. The company has completed building inspections and is undertaking seismic reinforcement work, along with sequential renovation and maintenance. Occupancy rates are progressing as planned, with a projected 41% by September 2025 and 65% by March 2026. Seismic reinforcement work, utilizing cost-effective SRF methods, is expected to meet new earthquake resistance standards upon completion, with a progress rate of 71% by September 2025, 81% by March 2026, and 100% by December 2026.

The new TOC Building plan, initially targeting construction around 2033, has been revised to commence in 2036 or later. This delay is attributed to rising construction costs, current rental market conditions, and the desire to maximize returns from seismic reinforcement investments over an extended lease period. The company is exploring adding condominium sales to the project to enhance profitability and accelerate investment recovery, with design plan changes and necessary administrative consultations underway.

TOC Co., Ltd. anticipates that these developments will have a minor impact on its financial performance for the fiscal year ending March 2026.