Guidebook for Government Assets

State Guest House (Source: Cabinet Office website)

Kenrokuen Matsumoto Castle (photo by Administration Office of the Matsumoto Castle)

December 2019

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INDEX

1. What are Government Assets?

• 1-1. Current value of government assets

• 1-2. Area of national land

2. Effective use of government assets including use for disastermanagement

• 2-1. Use for the development of nursing care facilities

• 2-2. Use for the elimination of childcare waiting lists

• 2-3. Effective use of administrative assets

• 2-4. Lease of vacant spaces in administrative assets to set up childcarecenters

• 2-5. Response at the time of a natural disaster

• 2-6. Use of national government officials' housing facilities as tsunamievacuation buildings

3. Methods of selling off unused national land

4. Changes in the sales proceeds and the stock of unusednational land

5. Information on Government Assets

6. Do You Know about Government Assets Day?

7. Local Finance Bureaus, etc. Across Japan

[Cover photographs] State Guest House (official property / administrative asset under the jurisdiction of the Cabinet Office)Matsumoto Castle (official property / administrative asset under the jurisdiction of the Ministry of Education, Culture, Sports, Science and Technology)Kenrokuen (non-administrative asset under the jurisdiction of the Ministry of Finance / lent to Ishikawa Prefecture)[Photo on the right] Main building of the Ministry of Finance (official property / administrative asset under the jurisdiction of the Ministry of Finance)

National Diet Building

Non-administrative

assets

Government office buildings, housing facilities for national government officials, penal institutions, etc.

National roads, rivers, national government parks, etc.

The Imperial Palace and other properties used by the Imperial Family

National forests used for national forest projects

Official properties

Public properties

Imperial properties

Forest management

properties

1. What are Government Assets? 01/11page

The national government owns a great variety of assets, including real estate, movables (cash, desks,vessels, aircraft, etc.) and claims. “Government assets” as referred to by the national government are thoseassets specified in the National Government Asset Act, and include real estate such as land and buildings,some movables such as vessels and aircraft, and stocks and other securities.

(Cash, claims and articles such as desks and chairs are not included in government assets.)

Government assets are classified into “administrative assets” and “non-administrative assets.”

• "Administrative assets" are categorized into the following four types: "official properties," such asgovernment buildings; "public properties," such as national government parks, roads and rivers; "imperialproperties," such as the Imperial Palace; and "forest management properties," which are used for nationalforest projects. Each of these assets is managed by the head of the relevant ministry or agency that hasjurisdiction over them.

• Assets other than administrative assets are called "non-administrative assets." In principle, the Ministry ofFinance is responsible for the management and disposal of these assets.

Assets other than administrative assets (e.g., land formerly used for government buildings, land transferred to the government as in-kind tax payment, and government-owned stocks)

Government assets

The Shosoin Repository

Yakushima

Bandai-Asahi National Park (Oguninuma Pond)

Administrative assets

(Source: Ministry of Environment websiteURL：https://www.env.go.jp/park/bandai/photo/index.html)

1-1. Current value of government assets

Prices and quantities of government assets are managed under the GovernmentAsset Register. As of the end of FY2018, the current value of government assetsstood at 108.5 trillion yen, out of which national land were worth 18.7 trillion yen.

Note: The current value of government assets does not include public property (roads, rivers, etc.)managed under registers other than the Government Asset Register.

Investments in incorporated administrative agencies, etc.

77.4 trillion yen

Non-administrative assets

84.1 trillion yen

Administrative assets

24.4 trillion yen Government

assets

108.5trillion yen

Assets provided as facilities for the United States Forces Japan (USFJ)

Forest management property Imperial property

Public property

Other

Unused national land

Assets on loan to local governments, etc.

4.1 trillion yen0.6 trillion yen

0.7 trillion yen

1.5 trillion yen

0.3 trillion yen

1.9 trillion yen

2.9 trillion yen

Official property

18.8 trillion yen

Note: Totals may not match due to figures being rounded down.

[Breakdown of government assets: end of FY2018]

02/11 page

Note: Totals may not match due to figures being rounded down.

[Breakdown of national land: end of FY2018]

Administrative assets

Type BreakdownValue

(trillion yen)

Defense facilities 4.0

Airport facilities(Tokyo International Airport, etc.)

0.7

Diet facilities 1.0

Official

Correctional institutions (prisons, etc.)

0.3

Court facilities 0.4

Other 4.7

Sub-total 11.4

PublicShinjuku Gyoen National Garden, Showa Kinen Park, etc.

0.6

Imperial Imperial Palace, etc. 0.6

Forest management

National forest projects 1.0

Total A 13.8

Non-administrative assets

BreakdownValue

(trillion yen)

Land provided to the USFJ (Yokota Air Base, Yokosuka Naval Base, Iwakuni Air Base, etc.)

2.0

Land on loan to local governments, etc. (Yoyogi Park, Osaka Castle Park, etc.)

1.9

Unused national land 0.3

Other (mountains, wasteland, etc.) 0.5

Total B 4.9

Total (A + B) 18.7

d ocal ts)

Ogasawara Islands (81%) Shirakami-Sanchi (100%)

1-2. Area of national land 03/11 page

National land measured 8.765 million hectares, accounting for about one quarter of Japan’s totalland area.

The greater part of it (approx. 97%) consists of forest management property (national forestswhich is used for national forest projects. Forest management property (national forests) plays aimportant role in the conservation of national land and the protection of the natural environmentSome land areas in this category are registered as world heritage sites, such as ShiretokoOgasawara Islands, and Shirakami-Sanchi.

)n.,

[Ratio of national land to Japan’s total land area]

Note: Based on data from the Ministry of Land, Infrastructure, Transport and Tourism.

[Breakdown of national land (area)] (as of the end of FY2018)

No

National land8.765 million ha(23.2%)

3.170 million ha(8.4%)

Privately owned land19.885 million ha (52.6%)

Roads, rivers, etc.5.955 million ha

(15.8%)

Total land area37.775 million ha

Public lan(owned by lgovernmen

(as of the end of FY2016) O

P

I

te 1: This figure does not include public property (roads, rivers, etc.) managed

Administrative assets8.664 million ha (98.8%)

Forest management property8.531 million ha (97.3%)

operty ha (1.36%)perty a (0.14%)roperty (0.02%)

Non-administrative assets101,000 ha (1.2%)

Total area8.765

million ha

under registers other than the Government Asset Register, such as the road register and register of present river conditions.

Note 2: Totals may not match due to figures being rounded down.

Shiretoko (94%)

Note: The percentage above represents the proportion of national forests in the total land area of each world heritage site.

National land areas registered as world heritage sites

fficial pr118,000ublic pro12,000 h

mperial p1,000 ha

2. Effective use of government assets including use for disaster 04/11 page

managementGovernment assets are the common property of the people. In addition to

improving the nation’s fiscal condition through their sale, the Ministry ofFinance has been meeting community and social needs through promotingtheir effective use in coordination with local communities. These assets arealso used for disaster management and assistance for affected people.

2-1. Use for the development of nursing care facilities

Based on the Urgent Policies to Realize a Society in Which All Citizens are Dynamically Engaged(November 2015), with an aim of realizing the goal of “no one forced to leave their jobs fornursing care” by the early 2020s, the Ministry of Finance intends to make further use ofnational land by lending land at reduced rents (at discounts of up to 50% for a 10-year periodfrom the start of the loan) through the fixed-term land lease arrangement, in order to helpfacilitate the development of nursing care facilities in urban areas where securing land isdifficult.

Effective period: New lending agreements madethrough the fixed-term land lease arrangementbetween January 1, 2016 and March 31, 2021

Target areas: Tokyo, Kanagawa, Saitama, Chiba, Aichi,Osaka, Hyogo and Fukuoka Prefectures (8prefectures)

Target facilities: Homes for the elderly requiring specialcare, including those with annexed day-care nursing A nursing care facility in Setagaya Ward,

facilities, etc. Tokyo, which utilized the fixed-term land lease arrangement (opened in July 2018)

2-2. Use for the elimination of childcare waiting lists

The Plan to Accelerate the Elimination of Childcare Waiting Lists (April 2013) includes aninitiative to develop nursery schools using national land. Based on this initiative, the Ministry ofFinance is actively taking such measures as selling national land through preferential sale andleasing national land under fixed-term leasehold.

The Plan for Child Rearing with Security (June 2017)includes an initiative to make use of national land,urban parts, post offices, and unused classrooms inschools. Based on this initiative, the Ministry ofFinance promotes the conversion of the use ofnational land that is currently lent with no charge assites of urban parks and provides it as nursingcenters spaces so that more children can be A nursery school-type center for early childhood accepted. education and care in Shibuya Ward, which is

located on national land within the urban park (opened in October 2017; Tokyo Metropolitan Yoyogi Park)

Project locationNumber of

project operators

Miyagi Prefecture: Sendai City 3

Yamagata Prefecture: Yamagata City 1

Tokyo Metropolis: Kiyose City 1

Kanagawa Prefecture: Yokohama City, Sagamihara City, Yokosuka City,

5

Aichi Prefecture: Nagoya City 4

Osaka Prefecture: Osaka City 1

Kyoto Prefecture: Kyoto City, Uji City 2

Hyogo Prefecture: Kobe City, Nishinomiya City 3

Fukuoka Prefecture: Fukuoka City 2

Total 22

07/12 page2-3. Effective use of administrative assets 05/11 page

The Ministry of Finance actively provides information concerning available administrative assets(government office buildings and housing facilities for national government officials) andinformation concerning the systems for leasing out these assets and granting permission for theiruse in order to promote their use by local communities, with the aim of optimizing the use ofadministrative assets to make more profit therefrom.

In accordance with the principle that administrative assets, including those under the jurisdictionof respective ministries and agencies, should be assigned first to official use and public use, theMinistry of Finance provides information concerning available administrative assets to localgovernments, and then if no application for use is filed from local governments, it publishes theinformation on public real estate websites to solicit prospective users.

From the perspective of promoting the effective use ofadministrative assets, the Ministry of Finance hasrevised the rules for the period of permission for use inconsideration of the purposes of use and needs ofindividual assets and the time required to recoupinvestment costs, so that the period of use can be setflexibly to the extent that does not interfere with thefunctions and undertakings of the national government(the period of permission for use is revised from "oneyear in principle and five years at the maximum" to "fiveyears in principle and ten years at the maximum").

A parking space company is granted permission to use the visitor parking spaces of the Fukuoka Government Office Building during the hours when the government office is closed.

2-4. Lease of vacant spaces in administrative assets to set up childcare centers

In "Japan’s Plan for Dynamic Engagement of All Citizens" (decided by the Cabinet on June 2,2016), the government aimed at promoting the expansion of childcare arrangements by furtherutilization of government-owned sites. Accordingly, from the perspective of enhancing theeffective use of government assets, the Ministry of Finance leases out vacant spaces inadministrative assets (e.g., government office buildings and housing facilities for nationalgovernment officials) to local governments and other entities in order to set up childcarecenters.

<Achievements>

As of the end of March 2019, 22 Hoiku-Mama projects (childcare services provided by caretakers certified by local governments) were carried out nationwide using vacant spaces in housing facilities for national government officials.

Hoiku-Mama project carried out using a housing facility for national government officials

2-5. Response at the time of a natural disaster 06/11 page

●

●After a natural disaster occurs due to an earthquake or typhoon, the Ministry of Finance

offers national government officials' housing facilities and unused national land free ofcharge as evacuation sites for disaster victims and sites for placing debris.

Unused national land that was leased free of charge to Saka Town, Aki-gun, Hiroshima Prefecture, as a place to put earth and sand that flowed into the town due to the torrential rain in July 2018

Process for offering national government officials' housing facilities

Local finance bureau (local finance office), ministries and agencies

Local government

(1) Provide information on available housing facilities (Note)

(2) Apply for use

(3) Lease out the facilities free of charge, grant permission for use

Disaster victims

(4) Lease

Note: Information on available housing facilities is provided by the relevant local finance bureau or local finance office in a centralized manner.

2-6. Use of national government officials' housing facilities as tsunami evacuation buildings

With the aim of saving the lives of residents from a tsunami with force beyond

expectations, the Ministry of Finance has been working in cooperation with responsiblelocal governments to designate national government officials' housing facilities astsunami evacuation buildings and hold evacuation and disaster drills with localresidents using the designated housing facilities.

[Tsunami evacuation buildings] Facilities located in areas with the potential for tsunami flooding, where local residents and other affected people can find shelter temporarily or in an emergency.

National government’s joint housing facility in Wakayama (Wakayama City/Kinki Local Finance Bureau)

An evacuation drill making use of the national government’s joint housing facility

Characteristics

-Large-scale national land the use of which is expected to revitalize the local economy though systematic town planning

-National land located in areaswhere many children are onchildcare waiting lists-National land located in urban areas where it is difficult to secure sites to build nursing facilities

-Right to site obtained through transfer of rights in redevelopment projects

Methods

-District plan-based general competitive bidding (*1)-Two-stage general competitive bidding (*2)-Discretionary contracts with local governments in response to the needs of the local community

-Achievement of policy measures (elimination of childcare waiting lists, no forced separation from a nursing care job)

Giving priority to local governments in:-selling off national land-leasing out national land under fixed-term land leasehold

-Trust-Exchange

Purpose

-Scarce national land with high utility

-Concluding fixed-term leasehold agreements in response to the needs of community and society, while reserving ownership

*1: General competitive bidding to be held after a local government makes a city planning decision to adopt a district planfor the area that includes national land through consultation with the Ministry of Finance.

*2: General competitive bidding to be held after the Ministry of Finance solicits proposals on the use of national land fromprospective purchasers and allows only those that pass the screening to participate in the bidding

Note: If no application for use is filed, the Ministry of Finance holds a general competitive bidding to sell off national land.

3. Methods of selling off unused national land

●In accordance with the principle of assigning unused national land

first to official use or public use in consideration of their value ascommon property of the people, the Ministry of Finance acceptsapplications for use from local governments and sells off unusednational land to them, and if no application for use is filed, it sellsoff unused national land through general competitive bidding.

●In recent years, the Ministry of Finance selects methods according

to characteristics of individual properties, aiming to promote theeffective use in response to the needs of community and society.

●Specifically, the Ministry of Finance employs district plan-based

general competitive bidding and two-stage general competitivebidding, and in order to meet the needs of future generations, italso employs a fixed-term land lease of properties for which thegovernment reserves ownership and properties to be used in fieldsassociated with security for people such as childcare and nursingcare.

07/11 page

-Contribution to the local community (revitalization of the local economy)

-Optimization through the effective use of government assets

-Response to the needs of future generations

* Information on general competitive bidding is inBidding Guides distributed at local financebureaus, etc., and is also posted in newspapersand on the websites of local finance bureaus, etc.

Unused national land

Sale through general competitive bidding

Sale to the applicant local

government, etc.

If an application is filed

If no application is filed

Accept applications from local governments, etc. for acquisition (period of acceptance:

3 months)

Non-statutory public assets (local roads, waterways, etc.)

Managed by national government;

demarcated and sold

Assets that have lost function

*2

Transferred to municipality without

consideration

Assets that have function

*1

[Former Non-Statutory Public Assets]

4. Changes in the sales proceeds and the stock of unused

national land

08/11 page

●Unused national land, classified as non-administrative assets, is sold by local finance bureaus,

etc.

By selling off unused national land that need not to be retained as government assets, the

Ministry of Finance strives to secure fiscal revenues, while promoting the effective use of suchland in response to the needs of community and society.

●

867 692

516 668 456

300 413

1,121

191

13

906

1,058 1,070 890

706

1,167 1,106

1,638

859

470

0

500

1,000

1,500

2,000

2,500

H26 H27 H28 H29 H30

[Changes in the sales proceeds of unused national land (general account of the Ministry of Finance]

決算額（復興財源）

決算額（一般財源）

予算額

(100 million yen)

2014 2015 2016 2017 2018(End of FY)

Closing amount (reconstruction revenue resources)Closing amount (general revenue resources)Budget amount

3,265

1,486 1,323 1,422 1,300

755

1,3641,143 610 649

1,593

1,7071,767

1,5931,339

5,613

4,5584,234

3,6263,288

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

H26 H27 H28 H29 H30

[Changes in the stock of unused national land (general account of the Ministry of Finance)]

Registered value (100 million yen)

Assets planned to be used by local governments, etc.Assets planned to be sold through general competitive biddingAssets with special circumstances (those located within a district of a land rezoning project, those requiring fixing of boundaries, etc.)

Total

2014 2015 2016 2017 2018(End of FY)

Former Non-Statutory Public Assets

Former non-statutory public assets are public assets that have lost their function as local roads or waterways and are not currently used for public purposes. They are under the management of the national government.In cases where a former local road or waterway is currently being used as a site for a dwelling, etc., it is sold to the user.For queries concerning demarcation and procedures for purchasing former non-statutory public assets, please contact your closest local finance bureau, local finance office or local finance branch office.

[Originally (farmland)]

Waterway

Local road

Former waterway

[Rezoned for residential land]

Field B

Former local road

Dwelling

FieldA

*1 “Public assets that have function” are those that arecurrently used for public purposes such as local roadsor waterways.

*2 “Public assets that have lost function” are those thathave lost their function as local roads or waterwaysand are not currently used for public purposes.

E-mail Newsletter on Government Asset Information（国有財産物件情報メールマガジン）The Ministry of Finance began distributing its E-mail Newsletter on Government Asset Information in June2014.The Ministry provides updated information on scheduled sales of government assets at local finance bureaus,etc. across Japan, in a timely manner through email.

URL https://www.kokuyuzaisan.mof.go.jp/info/

Ministry of Finance website URL https://www.mof.go.jp/national_property/

●The Ministry of Finance’s Japanese website has a “Government Assets” （国有財産）link on its front page.The linked page includes the “Government Asset Report”（国有財産レポート）containing updates on

the administration of government assets, as well as detailed statistical data such as the current value ofgovernment assets.The webpage also contains reports submitted to the Diet as well as press releases concerning governmentassets.

●From the “Government Assets”（国有財産）page on the Ministry of Finance’s Japanese website, you canaccess “the Government Asset Information Disclosure System”（国有財産情報公開システム）. Click“Search”（調べる）to view the information on specific government assets, including the location,

registered size, registered value, and map information, for each government asset.

Government Asset Information Disclosure System

Front page Search: Information on specific government assets

5. Information on Government Assets 09/11 pag

●The Ministry of Finance and local finance bureaus, etc. disclose a variety of

information on government assets through their website and other means.

e

Local finance bureau websites URL https://www.mof.go.jp/about_mof/zaimu/zaimu.htm

Public Real Estate (PRE) websites

●The Japanese websites of each local finance bureau, etc. also have a “Government Assets”（国有財産）

section, where a variety of information is posted, including assets for which the relevant bureau, etc. hascommenced general competitive bidding, the results of those bids, and notices concerning requests foracquisition of assets for official or public use.

●Information on government assets put up for general competitive biddings or sales to first-comers by

local finance bureaus is posted on the dedicated pages of public real estate websites.

(LIFULL) URL https://www.homes.co.jp/akiyabank/pres/all/

(at home) URL https://kokuyuzaisan.akiya-athome.jp/

Drawing of land survey following the land tax reform (collection of the Akita Prefectural Museum)

6. Do You Know about Government Assets Day? 10/11 page

Under the Meiji Government, which had formed under the Meiji Restoration, a survey of land across the country was undertaken for the purpose of levying a land tax pursuant to the Land Tax Reform Ordinance of 1873.

The start of government assets in real estate goes back to the time of the Meiji Restoration.

Certificates of land title were issued for lands confirmed as being privately owned, and standards for distinguishing between state-owned land and privately owned land were clarified in the “Revised Classification of Land Names” as part of the decree issued by the Grand Council of State on November 7, 1874.

Land tax revision map (collection of the Tax Historical Materials Room, Tax Research and Archives Center, National Tax College)

As a result of this establishment of private land subject to the imposition of land tax, the scope of state-owned land (national land) became clear, and this led to formation of the concept of government assets in real estate.

The Ministry of Finance has designated November 7—the day on which the decree was issued by the Grand Council of State—as “Government Assets Day.”

~ Be wary of national land sale scams! ~

Lately, there have been numerous reports of scams trying to sell national land.

If you ever have any doubt at all, please contact your closest local finance bureau, local finance office or local finance branch office immediately for advice.

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7. Local Finance Bureaus, etc. Across Japan 11/11 page

0

<Mascot character of the Tohoku Local Finance Bureau> Zaicchi

<Mascot character of the Kinki Local Finance Bureau>

Kinki CATs

<Image character of the Tokai Local Finance Bureau>

Zaimu-kun Zaiko-chan

<Image character of the Chugoku Local Finance Bureau>

Chuzai-kun

<Mascot character of the Kyushu Local Finance Bureau>

Nyankyu

The Ministry of Finance and local finance bureaus, etc. are responsible for the management and disposal of non-administrative assets (excluding non-administrative assets belonging to a special account, etc.) as well as for the overallcoordination of managing and disposing of government assets by individual ministries and agencies.*The management of administrative assets is conducted by the ministries and agencies that have jurisdiction over the assets.

The Ministry of Finance has ten local finance bureaus (including one branch bureau) across Japan, and 40 local finance offices and 13 branch offices located in the areas under the jurisdiction of the respective local finance bureaus. In Okinawa Prefecture, the Okinawa General Bureau of the Cabinet Office performs the operations of a local finance bureau.

Hokkaido Local Finance Bureau Phone: (011)709-2311Sapporo Joint Government Building No. 1Kita 8-jo Nishi 2-chome, Kita-ku, Sapporo-shi, Hokkaido060-8579http://hokkaido.mof.go.jp/

Tohoku Local Finance Bureau Phone: (022)263-1111 Sendai Joint Government Building B3-3-1 Honcho, Aoba-ku, Sendai-shi, Miyagi980-8436http://tohoku.mof.go.jp/

Kanto Local Finance Bureau Phone: (048)600-1111 Saitama Shintoshin Joint Government Building No. 11-1 Shintoshin, Chuo-ku, Saitama-shi, Saitama330-9716http://kantou.mof.go.jp/

Hokuriku Local Finance Bureau Phone: (076)292-786Kanazawa Shinkanda Joint Government Building4-3-10 Shinkanda, Kanazawa-shi, Ishikawa921-8508http://hokuriku.mof.go.jp/

Tokai Local Finance Bureau Phone: (052)951-17723-3-1 Sannomaru, Naka-ku, Nagoya-Shi,Aichi460-8521http://tokai.mof.go.jp/

Kinki Local Finance Bureau Phone: (06)6949-6390Osaka Joint Government Building No. 44-1-76 Otemae, Chuo-ku, Osaka-shi, Osaka540-8550http://kinki.mof.go.jp/

Chugoku Local Finance BureauPhone: (082)221-9221Hiroshima Joint Government Building No. 4, 6-30 Kami-Hacchobori, Naka-ku, Hiroshima-shi,Hiroshima

730-8520 http://chugoku.mof.go.jp/

Shikoku Local Finance Bureau Phone: (087)811-7780Takamatsu Sunport Joint Government Building, South 3-33 Sunport, Takamatsu-shi, Kagawa760-8550http://shikoku.mof.go.jp/

Kyushu Local Finance Bureau Phone: (096)353-6351 Kumamoto Joint Government Building A2-10-1 Kasuga, Nishi-ku, Kumamoto-shi,Kumamoto860-8585http://kyusyu.mof.go.jp/

Fukuoka Local Finance Branch BureauPhone: (092)411-5095Fukuoka Joint Government Building 2-11-1 Hakataeki-Higashi, Hakata-ku, Fukuoka-shi, Fukuoka

812-0013 http://fukuoka.mof.go.jp/

Finance Department, Okinawa General BureauPhone: (098)866-0091Naha Second Joint Government Building No. 2 2-1-1 Omoromachi, Naha-shi, Okinawa900-0006http://www.ogb.go.jp/zaimu

Government Asset Information Office, Financial Bureau, Ministry of Finance3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8940. Phone: 03-3581-4111 (Extension: 5978)

If you have comments or requests on the management of government assets, please share them with us via the following website:

Ministry of Finance website (Feedback to the Ministry of Finance)https://www2.mof.go.jp/enquete/ja/index.php