GOYOH Inc. proudly sponsors ULI Japan NEXT, an initiative dedicated to the professional development of mid-career real estate professionals. In September 2025, GOYOH co-hosted an event on impact funds, the first of its kind in Japan, where our CEO, Mr. Ito, was a featured speaker. (Excerpt from the ULI website below)
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On September 9, ULI Japan NEXT hosted the event "The Forefront of Social Impact Real Estate Investment: Learning from Noteworthy Fund Cases" at SPACES Otemachi. Shinsuke Nuriya (Co-Chair, ULI Japan NEXT, CIO, SHEER TECNOLOGIES Inc.) moderated a discussion with stakeholders of the QOL Fund, established by Profits Co., Ltd., whose investment by MUFG Bank in July 2025 generated significant buzz. The event focused on the latest trends and future prospects of social impact real estate.
Profits Inc.'s QOL Fund targets core childcare facilities, as well as value-add projects such as pet-friendly housing, co-working spaces, and hotels. By collaborating with excellent operators in each sector, the fund aims to establish profitability in the uncharted territory of impact investing. By the end of June this year, with MUFG leading the investment alongside regional banks, leasing companies, and operating companies, the first fund was established with a scale of 15 billion yen. There are plans to develop a series of funds, expanding to a cumulative total of 70 billion yen over three years.
Based on the "Practical Guidance for Social Impact Real Estate" published by the Ministry of Land, Infrastructure, Transport and Tourism, this fund incorporates a system to quantitatively evaluate and visualize social value as KPIs, including user satisfaction, community contribution, and staff job satisfaction. By continuously striving to improve tenant satisfaction, foster coexistence with local communities, and uncover latent needs, the fund aims not just to "restore negatives to zero" but to "create positive value from zero."
"Securing funding for the QOL Fund was not easy, given that evaluation methods and correlations with economics are not yet established," said Hiroaki Ota (Senior Manager, Profits Inc.). The Japanese social impact real estate market is still in its infancy, with even institutional investors debating whether to classify such projects as real estate or sustainability initiatives during their approval processes.
According to Misato Fujii (Sustainability & Energy Analyst, Longevity Partners), who supervises the KPI setting for social impact in this project, even in Europe, a pioneer in ESG, the measurement of social (S) impact is still developing compared to environmental (E) impact. While progress is being seen in areas like affordable housing funds, KPIs often vary significantly by region and user, and no standardized evaluation method exists. "The difficulty with 'S' lies in the fact that approaches and measurement methods vary greatly depending on the country, region, community, and even the users. It is extremely important to identify or adapt appropriate and rational measurement methods," she stated.
Yukiya Ito, CEO of GOYOH Inc., which operates the real estate ESG software service EaSyGo and provides impact measurement tools for this project, looked to overseas examples in integrated resorts (IRs) and luxury hotels as references for setting social impact indicators that lead to improved real estate value and NOI (e.g., increased rent and occupancy rates, reduced leasing costs). He stated, "The challenge with ESG in the industry is that obtaining data for certifications and disclosures has become the goal. Just as operators of IRs and hotels strategically induce customer experience value, achieving real estate value enhancement requires leveraging data and engaging stakeholders based on a narrative that resonates with them."
According to international institutional investors, this project is a globally advanced initiative. While significant market expansion is anticipated, panelists also warned about the risk of social washing. While there is an expectation for revitalization through social impact measurement and design that leverages the unique local characteristics and features of individual assets, "it is also necessary to consider the need for standards to check for certain negative elements, to ensure that negative impacts are not overlooked," said Mr. Ito. He also added that "initiatives limited to a small number of players tend to have a narrow scope," and called for collaborative efforts, such as information sharing across the industry through organizations like ULI Japan, to establish scalable case studies for the future.
This event was sponsored by GOYOH Inc. For participation in ULI NEXT and sponsorship inquiries, please contact the ULI Japan Secretariat (japan@uli.org).
