Comparison

Sort Existing method Trust method
Execution method Association as the implementer + Construction company contracted for construction Executed by the trust company (agency)
(Project operation is coordinated with the association or urban renewal project management committee)
Concept Construction company provides funding, and is responsible for construction Direct execution (agency) by trust company through land trust, funding, project cost execution
Remarks Can present confirmed share for association members
Construction company's project leadership
Possibility of construction cost increase and construction delay (suspension)		 Easier project cost funding and securing of project transparency
Cost reduction effect such as reduced construction unit price
Must complete construction regardless of sales market conditions

Project
implementer
method

Since March 2016, the requirements for designated developers (sole implementers) have been relaxed, expanding opportunities for trust companies to execute urban renewal projects as designated developers.

If a certain percentage of land and property owners wish to designate a trust company as the project implementer, the mayor or county governor can designate the trust company as the designated developer (sole implementer).


※ Essential requirements for a trust company to be designated as a developer (sole implementer)

  • When landowners owning more than ½ of the land area in the relevant district subject to improvements and more than ¾ of the land and property owners request the trust company to be designated as the project implementer

Direct trust by Association Members - Project Implementer Method
Trust Development Diagram


Project agent method

Since July 2016, the requirements for trust companies to become project agents have been relaxed. If a certain percentage of land and property owners wish to designate a trust company as the project agent, the mayor or county governor can designate the trust company as the project agent.


※ Essential requirements for a trust company to become a project agent

  • 1) When a majority of land and property owners (association members) in the relevant renewal district request the trust company to be designated as the project agent
  • 2) When more than 1/3 of the land area is entrusted

Utilizing Retrusts - Project Agent Method
Trust Development Diagram