ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that it has signed an agreement with Kyoto prefecture, together with constituent companies, on a project for the development and operation of Kyoto Arena (tentative name).

Recently, in Japan, aging public facilities and disaster-related problems have become social issues, and improving facilities has become a pressing issue in every region. However, many local governments are facing financial difficulties, making it difficult for them to respond to this issue quickly. Against this backdrop, recent years have seen an increase in the number of cases where local governments engage in the development of facilities through public-private partnerships (PPP), utilizing private-sector funds and know-how.
ITOCHU, with the concept of "protecting the community with public facilities," is committed to developing public facilities that serve as evacuation centers during disasters and are loved by the community during normal times. This project is will be the third PPP project, following the Shibata Town Public Gymnasium Development Project in Miyagi prefecture (2022)^*1 and the Development and Operation Project for Kuwana City Sports Park Pool in Mie prefecture (2024)^*2.

This project is a Design, Build, Finance, Operate (DBFO) PPP project to develop indoor sports facilities that meet the standards for holding international and national competitions, which Kyoto prefecture has been lacking. The DBFO method is a new system in which private-sector partners in the project are responsible for everything from planning, design and construction to maintenance, management and financing. It is an initiative that proposes the development of facilities with an eye to future operation, maintenance, and management, leveling the burden placed on Kyoto prefecture.

The arena to be renovated by this project is scheduled to be used as the home arena for the B.League basketball team Kyoto Hannaryz. The facility will be capable of hosting both sports and cultural events, and will also engage in collaboration with a velodrome (bicycle racing track) that is scheduled to be redeveloped on adjacent land, stimulating the liveliness of the entire site area. It will also provide disaster readiness functionality, as an evacuation center in the event of a disaster, allowing it to be used safely and with peace of mind, by users and local residents alike. The facility will be operated in cooperation with local businesses, with the goal of continuing to provide high-quality services rooted in the local community.

ITOCHU seeks to strengthen its value chain in the construction and realty sector, and considers public facility development projects as part of these efforts. Going forward, ITOCHU will continue to engage in public facility development projects from a market-oriented perspective, with the aims of regional revitalization, local development, and improving disaster readiness.