Qualified special investor limited business
Updated: July 2025, 10
What is a business limited to qualified special investors?
The Qualified Special Investor Limited Business was newly established with the amendment of the Real Estate Specified Joint Venture Act in 29.
This business is a type 1 real estate specified joint venture business that only has qualified special investors as counterparties or participants, and by submitting a notification, a real estate fund that invests in physical real estate can be formed without obtaining permission under the Real Estate Specified Joint Venture Act.
However, since investors are limited to super professionals and certain strict behavioral regulations are imposed under the Real Estate Specified Joint Venture Act, it is not particularly suitable for targeting small properties such as private lodgings.
The main requirement for a qualified special investor is that the investor does not fall under any disqualification reasons related to holding a real estate license or permission for a real estate specified joint venture. This applies to super-professional investors who specialize in real estate, such as banks, insurance companies, and real estate agents who meet certain conditions.
Other examples include financial instruments business operators engaged in investment management, trust companies, investment corporations, and corporations that have filed notices with specified assets of 10 billion yen or more.
The notification will be submitted to the competent minister.
If there is a change in your business operations, you must notify us within 30 days.
Those who have received permission for a business limited to qualified special investors are regulated in their actions by the Real Estate Specified Joint Enterprise Act, including prohibitions on lending their names and not divulging information they have obtained to outside parties.
The main regulations are shown in the table below.
| Message | |
| Duty of good faith (Article 14, Paragraph 1) | We must put faith first and conduct our work with integrity. |
| Suppression of speculative transactions (Article 14, Paragraph 2) | In conducting our business, we must strive to ensure proper and rational use of real estate and take care to curb speculative transactions. |
| Prohibition of name lending (Article 15) | You must not allow another person to operate a real estate specified joint venture in your name. |
| Prohibition of compensation for loss (Article 21-2, applied mutatis mutandis, Article 39 of the FIEA) | Solicitation must not continue even though the other party has not concluded the relevant real estate specified joint business contract. |
| Separate management of assets (Article 27) | Assets related to real estate specified joint venture contracts must be managed separately from one's own property and assets related to other real estate specified joint venture contracts. |
| Explanation of property management status (Article 28, Paragraph 1) | In response to a project participant's request, there is an obligation to explain the status of property management related to a real estate specified joint venture contract. |
| Inspection of documents (Article 29) | There is an obligation to keep documents that describe the status of business operations and assets in each office and make them available for viewing upon request from project participants. |
| Creation and preservation of project participant list (Article 30) | You must create a list of project participants and save the list. |
| Obligation to maintain confidentiality (Article 31, Paragraph 1) | Unless there is a justifiable reason, do not divulge the details of your work to others. |
Summary
Those who fall under the following may fall under a real estate specified joint venture.
◇I want to create a real estate fund by converting real estate (actual) into smaller units and securitizing it.
◇When acquiring real estate, bank loan screening is difficult, so I would like to find another way to raise funds.
◇Initially, we would like to solicit investment for 1 yen per unit and expand our customer base.
We will first listen to the business you wish to undertake, and then provide comprehensive support, from proposing the necessary permits and licenses, preparing application documents, and dealing with government offices and submitting the applications.
Consultation before making a request is free of charge.
