Tosei Terminates Trust on Higashi-Ikebukuro Rental Apartment After Canceling Fractional Ownership Offering

Ownership of T's garden Higashi-Ikebukuro (formerly T's garden Otsuka), a rental apartment building owned by Tosei in Higashi-Ikebukuro 2-chome, Toshima-ku, Tokyo, reverted to Tosei in March 2026 through a transfer of trust assets. In October 2025, the company had established a trust with First Trust as trustee and planned to sell the property as T-value Higashi-Ikebukuro, the first offering under its T-value fractional real estate ownership product, but decided in February 2026 to cancel the offering.

The property is a five-minute walk from Otsuka Station on the JR Yamanote Line. Completed in 2009, the 12-story building has 43 units (42 1K units and one 1DK unit). It was developed by Nomura Real Estate as PROUD FLAT Otsuka and acquired by the educational corporation Shumei Gakuen in 2012. Tosei acquired it from Shumei Gakuen in February 2025.

T-value is a fractional ownership product that sells trust beneficiary interests in a single income-producing property in units of JPY 1 million, with a minimum purchase of 10 units, and the company designed it as a new real estate investment product to meet asset succession and asset management needs. For the first offering, the beneficiary interest was to be divided into 1,300 units, with the sale scheduled to be executed on February 27, 2026.

However, the outline of the FY2026 tax reform, released on December 19, 2025, indicated that the inheritance tax valuation of fractional real estate ownership products would be changed to a method based on actual transaction prices. Concluding that the tax benefits could be significantly reduced and that its original business and operating plans would be severely affected, the company announced on February 6, 2026, that it would cancel the first offering and temporarily suspend the T-value business.

Key Facts

• Property Name: T's garden Higashi-Ikebukuro (formerly T's garden Otsuka)
• Owner: Tosei Corporation
• Transaction Date: March 31, 2026 (transfer of trust assets)
• Trustee: First Trust Co., Ltd. (trust established October 31, 2025 / trust terminated March 31, 2026)
• Location: 2-1-11 Higashi-Ikebukuro, Toshima-ku, Tokyo
• Nearest Station(s): Two-minute walk from Mukohara Station on the Toden Arakawa Line / Five-minute walk from Otsuka Station on the JR Yamanote Line
• Completion: August 2009
• Number of Floors: 12F (reinforced concrete construction)
• Use: Apartment
• Total Units: 43 (1K: 42 / 1DK: 1)
• Area: Site area of approximately 59 tsubo (approx. 2,100 sq. ft.) / Gross Floor Area of approximately 368 tsubo (approx. 13,100 sq. ft.)