JINUSHI and Mitsubishi HC Capital Realty to Establish JPY 100 Billion Land-Under-Leasehold Investment Fund
JINUSHI Co., Ltd. announced on November 6, 2025 that it has signed a basic agreement with Mitsubishi HC Capital Realty Inc., a wholly owned subsidiary of Mitsubishi HC Capital Inc., to form the “JINUSHI Fund,” a vehicle for medium- to long-term investment in land under ground leases. The fund aims to scale to approximately JPY 100 billion over two years.
The fund will invest in land under ground leases via trust beneficiary interests (TBIs) and is slated to commence operations in early 2026. Mitsubishi HC Capital Realty Advisers Inc. will serve as asset manager, with JINUSHI acting as sub–asset manager. Upon asset acquisition, and on the premise that a first look will be granted to JINUSHI Private REIT, Inc. (“JINUSHI Private REIT”)—Japan’s only private REIT specializing in land under ground leases managed by the company—disposals may also be made to external investors.
JINUSHI is advancing three growth strategies: “tenant sector diversification,” “geographic expansion,” and “sale-and-leaseback proposals for land.” Supported by market tailwinds such as TSE reforms, investor expectations, and rising construction costs, acquisition volume reached JPY 86.7 billion as of September 2025, already well above the full-year target of JPY 70 billion. With annual acquisitions expected to exceed JPY 100 billion, the company decided to establish a fund dedicated to medium- to long-term warehousing of land-under-leasehold assets to support accelerated sourcing.
In Japan’s land-under-leasehold market, long-term leases to operating tenants are valued for stable cash flows, but liquidity and the limited buyer universe have been persistent challenges. As JINUSHI Private REIT and major institutional investors enter the space, land under ground leases is increasingly being recognized as a distinct asset class. Alongside its REIT platform and an existing bridge scheme with a leasing company, JINUSHI will utilize the JINUSHI Fund as a third takeout option to manage balance sheet exposure while pursuing sustainable earnings growth.
Key Fact
Fund Name: JINUSHI Fund (tentative)
Investor: Mitsubishi HC Capital Realty Inc.
Asset Manager: Mitsubishi HC Capital Realty Advisers Inc.
Sub–Asset Manager: JINUSHI Co., Ltd.
Target Assets: Land under ground leases (trust beneficiary interests)
Target Size: Approximately JPY 500 billion annually, aiming for approximately JPY 1,000 billion over two years