Developer’s Strategy in Acquiring Osaka Yakuza HQ for ¥600 Million

The site of the office once belonging to a prominent Showa-era yakuza group known for its brawling tendencies is undergoing transformation.

The former headquarters office of the “Takumi-kai” in the heart of Minami, Osaka’s entertainment district, was located. After many twists and turns, last April, H Corporation, based in Osaka, purchased the land and building, as reported in our magazine (August 18-25, 2023 issue). The four-story headquarters office has now been completely demolished and turned into vacant land.

The location, known for its historical significance, drew attention to its future. However, this May, local residents witnessed the following scene:

 

“Several workers were conducting construction. When asked, they mentioned it was for soil investigation.”

 

In fact, a year after H Corporation’s purchase, a new buyer emerged. Hideo Kugihara, a representative of a private company in Kansai and a mediator in the transaction with H Corporation, revealed:

 

“At the end of April, it was sold to an investor from Hong Kong at a price of approximately 670 million yen per tsubo, totaling around 5.7 billion yen for 84 tsubo. Japanese banks reportedly couldn’t provide financing due to compliance issues, so the investor paid in full cash.”

According to the registry, indeed, the property was sold to a developer from Hong Kong on April 30th. Represented by Mr. R, who is a well-known entrepreneur in Hong Kong:

 

“Mr. R serves as the representative of F Corporation, a newly established real estate firm founded in 2014. Since 2020, the company has been actively expanding into Japan. They already own six buildings in central Tokyo such as Ginza and Shibuya, and five buildings in Osaka. Most of these are condominiums and have almost completely sold out. In Hong Kong, Mr. R is renowned as a shrewd president, with a strong reputation.” (reported by a national newspaper)

 

Under the ownership of the new owner, the site of the prestigious yakuza headquarters seems poised for transformation. A spokesperson from F Corporation responded to inquiries:

 

“We decided to purchase it due to its excellent location. We plan to construct either a condominium or an office building. It’s still in the design phase, so we’re not sure how many floors it will have yet. If it’s a condominium, it will likely be used for foreigner-friendly vacation rentals. Our company caters to affluent clients from Hong Kong and Singapore, so we currently have no plans to target Japanese customers (laughs). It’s more profitable that way.”

 

The former headquarters of the renowned yakuza faction looks set to become a new base for international visitors.

From the July 5-12, 2024 issue of FRIDAY