Overview

The Cost Cap Guarantee is a service provided in collaboration with our capital alliance partner, Field Partners Inc. (FP), to determine soil contamination remediation costs (the guaranteed cost cap amount) in advance.

This service enables parties involved in real estate transactions to determine soil and groundwater contamination remediation costs beforehand, allowing contamination risks to be separated from the business and facilitating more predictable and efficient transactions.

The service is available in the following three options:

① Uninvestigated Guarantee — Available based solely on historical land use investigation results.
② Partial Investigation Guarantee — Available based on partial investigation results.
③ Regulatory Investigation Guarantee — Available based on investigations conducted in accordance with applicable regulations.

Applications

The service is primarily used in the following three scenarios.

When you want to complete a real estate transaction quickly after conducting only a historical land use investigation (Uninvestigated Guarantee)

While proceeding with the sale of land, a historical land use investigation may conclude that "the possibility of soil contamination cannot be ruled out." In such cases, a real estate company may require a soil investigation and, if contamination is confirmed, remediation work. However, property owners may find it difficult to secure the necessary funds for the investigation and remediation, or they may need to complete the transaction urgently.

With the Uninvestigated Guarantee, transactions can proceed based on remediation costs (the guaranteed cost cap amount) determined before any soil investigation is conducted.

Features
● Enables fast real estate transactions based solely on historical land use investigation results (without conducting soil investigations or remediation work).

When you want to complete a real estate transaction promptly after closing an operating factory (Partial Investigation Guarantee)

If a factory is currently in operation and is scheduled to close before the land is sold, a soil investigation may be required for the real estate transaction. In some cases, part of the factory must remain operational until just before closure, making it desirable to complete the property transaction immediately after operations cease.

Under the Partial Investigation Guarantee, investigations are conducted in areas that do not interfere with factory operations, such as land outside the operating facilities or warehouse areas. Based on these results, the contamination status of the entire site is estimated, allowing remediation costs (the guaranteed cost cap amount) to be determined in advance.

Features
● Partial investigations can be conducted even while factories remain in operation.
● Clarifies the schedule from factory closure to land sale.

When you want to limit uncertain remediation costs to a predetermined amount through a guarantee (Regulatory Investigation Guarantee)

There are various methods for remediating contaminated soil, and some remediation techniques can be expensive. The Regulatory Investigation Guarantee combines remediation methods tailored to site conditions with a cost cap guarantee to provide reliable remediation costs (the guaranteed cost cap amount) with cost advantages.

Features
● Guarantees remediation costs based on investigation results obtained in accordance with applicable regulations.
● Eliminates uncertainty in remediation costs.