Development Bank of Japan Group and Nikken Sekkei
Renovation to Bring Energy Consumption in Existing Office Buildings Close to “Zero”
“Zenobe” Project (Zero-Energy Renovation Project) Launched
PRESS RELEASE
2024.06.05
Aiming to improve the environmental performance of existing office buildings, which account for the majority of domestic real estate
The first phase of the “Zenobe” project is the “Nikkken Building No. 1” in Osaka, scheduled for completion in March 2025
Development Bank of Japan, Inc. (Headquarters: Chiyoda-ku, Tokyo; Representative Director President and CEO: Seiji Chika; hereinafter “DBJ”), DBJ Asset Management Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director President and CEO: Ken Kusakabe; hereinafter “DBJAM”), and Nikken Sekkei Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director President and CEO: Atsushi Omatsu, hereinafter “Nikken Sekkei”) have launched the “Zero Energy Renovation Project,” known as “Zenobe,” with the aim of establishing a model for environmental retrofits to achieve net-zero in the real estate industry and promoting its widespread adoption. As the first phase of the “Zenobe” project, they will carry out environmental retrofits on the “Nikken Building No. 1” in Osaka.
1. Expanding Our Reach and Working to Reduce Energy Consumption in Existing Buildings—The Objectives of the “Zenobe” Project
To achieve net-zero by 2050, the real estate industry is also required to reduce its greenhouse gas emissions.
Japan’s CO2 emission reduction target for 2030 is a 46% reduction compared to fiscal year 2013 levels.As the importance of improving the environmental performance of commercial real estate—particularly office buildings—grows in order to achieve this target, it is estimated that just under 90% of the total floor area of office buildings nationwide consists of existing buildings that are at least 10 years old, and just under 70% are at least 20 years old.Renovations of existing buildings account for just under 30% of the energy consumption reduction targets for the building sector, making the improvement of environmental performance in existing buildings an essential initiative for the real estate industry to achieve net-zero.
Amid concerns over soaring construction costs and the environmental impact associated with rebuilding structures, we are promoting the “Zenobe” project, which aims to make effective use of resources, and we hope to expand the “Zenobe” network together with those who support the project’s social significance and activities.
Japan’s CO2 emission reduction target for 2030 is a 46% reduction compared to fiscal year 2013 levels.As the importance of improving the environmental performance of commercial real estate—particularly office buildings—grows in order to achieve this target, it is estimated that just under 90% of the total floor area of office buildings nationwide consists of existing buildings that are at least 10 years old, and just under 70% are at least 20 years old.Renovations of existing buildings account for just under 30% of the energy consumption reduction targets for the building sector, making the improvement of environmental performance in existing buildings an essential initiative for the real estate industry to achieve net-zero.
Amid concerns over soaring construction costs and the environmental impact associated with rebuilding structures, we are promoting the “Zenobe” project, which aims to make effective use of resources, and we hope to expand the “Zenobe” network together with those who support the project’s social significance and activities.
2. First Phase of the “Zenobe” Project: “Nikken Building No. 1” in Yodoyabashi, Osaka
As the first phase of the “Zenobe” project, DBJ and Nikken Sekkei, through Green Building Ecosystem LLC (hereinafter “the Fund”), which is structured and managed by DBJAM,acquired “Nikken Building No. 1,” a 55-year-old office building located in Yodoyabashi, Osaka, and will carry out environmental renovations aimed at balancing environmental value (achieving ZEB Ready status) with economic value (securing investment returns and enhancing property value).
Through a combination of effective measures to reduce environmental impact—such as improving thermal insulation performance and reviewing the capacity and specifications of the HVAC system—the project will achieve ZEB Ready certification. By leveraging each other’s expertise and know-how in construction, finance, and ESG, the partners will promote these environmental renovations with the goal of creating new added value in the real estate market.
DBJ,DBJAM, and Nikken Sekkei launched a collaboration (hereinafter “this collaboration”) in November 2022 with the aim of strengthening each company’s real estate-related businesses and establishing, promoting, and disseminating an environmental renovation model to achieve net-zero in the domestic real estate industry. The “Zenobe” project is part of the initiatives undertaken under this collaboration.
Through a combination of effective measures to reduce environmental impact—such as improving thermal insulation performance and reviewing the capacity and specifications of the HVAC system—the project will achieve ZEB Ready certification. By leveraging each other’s expertise and know-how in construction, finance, and ESG, the partners will promote these environmental renovations with the goal of creating new added value in the real estate market.
DBJ,DBJAM, and Nikken Sekkei launched a collaboration (hereinafter “this collaboration”) in November 2022 with the aim of strengthening each company’s real estate-related businesses and establishing, promoting, and disseminating an environmental renovation model to achieve net-zero in the domestic real estate industry. The “Zenobe” project is part of the initiatives undertaken under this collaboration.
Target Property
| Property Name | Nikken Building No. 1 |
|---|---|
| LOCATION | 4-6-12 Koraibashi, Chuo Ward, Osaka City, Osaka Prefecture |
| Directions | A 5-minute walk from Yodoyabashi Station on the Osaka Metro Midosuji Line |
| Structure/scale | SRC construction; 1 basement level and 7 above-ground floors |
| Purpose | Office |
| Year Built | July 1968 |
Nikken Sekkei will leverage the expertise in environmental retrofitting accumulated through this collaboration to lead the way toward net-zero cities and buildings, thereby promoting the realization of “Social Environmental Design” that creates diverse value to meet new societal needs.
The DBJ Group will leverage its track record and expertise in investment and financing within the real estate securitization sector to advance business development with Nikken Sekkei and promote the widespread adoption and expansion of environmental retrofit models. At the same time, in collaboration with private financial institutions and others, the Group will respond to client needs and support the further revitalization of the real estate finance market.Furthermore, DBJ has determined that the launch of the “Zenobe” project is an initiative that contributes to the expansion of Nikken Sekkei’s business scope and the achievement of net-zero in the real estate industry; accordingly, DBJ has decided to utilize the “Green Investment Promotion Fund” (Note 2)—a category of “Specified Investment Business” (Note 1)—for this fund.
The DBJ Group will leverage its track record and expertise in investment and financing within the real estate securitization sector to advance business development with Nikken Sekkei and promote the widespread adoption and expansion of environmental retrofit models. At the same time, in collaboration with private financial institutions and others, the Group will respond to client needs and support the further revitalization of the real estate finance market.Furthermore, DBJ has determined that the launch of the “Zenobe” project is an initiative that contributes to the expansion of Nikken Sekkei’s business scope and the achievement of net-zero in the real estate industry; accordingly, DBJ has decided to utilize the “Green Investment Promotion Fund” (Note 2)—a category of “Specified Investment Business” (Note 1)—for this fund.
(Note 1) This program utilizes partial investment from the national government (investment by the Industrial Investment Corporation) to provide growth capital in a time-limited and concentrated manner, with the aim of promoting the supply of growth capital by the private sector, revitalizing regional economies, and strengthening the competitiveness of Japanese companies.
(Note 2) This is a priority area established with the aim of broadly supporting initiatives—such as projects that contribute to the realization of a green society—in light of the government’s policy of achieving net-zero by 2050 and other factors.
Contact information regarding this matter
株式会社日本政策投資銀行 アセットファイナンス部 電話番号 03-3244-1714
DBJアセットマネジメント株式会社 不動産運用部 電話番号 03-3241-5387
株式会社日建設計 広報室 電話番号 03-5226-3030
DBJアセットマネジメント株式会社 不動産運用部 電話番号 03-3241-5387
株式会社日建設計 広報室 電話番号 03-5226-3030
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