A growing number of investors in the "Minna de Ooya-san" (Everyone's Landlord) real estate fund are expressing outrage and demanding the return of their investments, which in some cases represent their entire life savings. The fund, which promised annual returns of 7% on investments in various real estate projects, has recently suspended dividend payments for most of its 37 products, affecting over 30,000 investors and accumulating over 200 billion yen in collected funds.

Gateway Narita Project Faces Delays and Scrutiny

The flagship project of the "Minna de Ooya-san" series is "Gateway Narita," a large-scale development planned near Narita Airport in Chiba Prefecture. The project aimed to create a new town on a site equivalent to ten Tokyo Domes, featuring an arena, shopping malls, and facilities for international tourists. Sales for this project began in 2020, with promotional materials assuring investors of a secure real estate investment that would alleviate future anxieties with pension plus dividend income.

Investors like a 70-year-old individual identified as Mr. A, who invested 4 million yen, were initially reassured by regular dividend payments. Similarly, a 40-year-old investor, Mr. B, who invested 10 million yen, was convinced by the project's apparent collaboration with local authorities, including obtaining development permits from Chiba Prefecture and Narita City.

However, construction at the Gateway Narita site has been significantly delayed. What was supposed to be a completed town by 2024 is currently a cleared forest area, with construction work only in the initial stages of land leveling. The completion date has been repeatedly postponed, with the latest projected completion set for the end of 2027.

In June of the previous year, the operating company, Toshi Sokken Investment Fund, received a one-month business suspension order from Osaka Prefecture for failing to adequately inform investors about significant changes to the town's development plan. This situation led many investors to seek to cancel their investments. Mr. B attempted to cancel his investment around October 2024 but received an email stating that applications were not being accepted.

Expanding Payout Suspensions and Unverified Operations

The issues have since expanded beyond the Gateway Narita project. In July of this year, investors received an email announcing delays in dividend payments. The representative of the operating company, in a video message, attributed the delays to stagnant rental income but stated that the sale of approximately 60 billion yen worth of owned real estate was underway to address the situation. He also claimed that negotiations with an American investment firm for the Gateway Narita project were nearing completion.

However, dividend payments have not resumed, and investors remain unable to cancel their investments. Mr. A expressed his disbelief and anger, stating, "I think this is a crime. I can't forgive them. Where did the funds they collected go? I truly can't forgive them."

Subsequently, dividend payments were also suspended for other "Minna de Ooya-san" products. One such product is the "Agrevo Biotechnology Center Series No. 37," which reportedly focused on banana cultivation in Fukuoka Prefecture. An investigation at the purported facility revealed a former large shopping mall building with entrances covered by plastic sheeting and exposed wiring, showing no signs of active banana cultivation. Local residents also reported no knowledge of banana farming at the site.

A local assembly member, Mr. Taro Ogata, questioned the Ministry of Agriculture, Forestry and Fisheries in the Diet, which stated that there were no recorded banana shipments from Fukuoka Prefecture and that the ministry was unaware of any banana production or seedling production in the area. Despite this, the operating company claimed to be producing approximately 113,500 seedlings since 2021, with an annual production capacity of 10,000 seedlings.

Another affected product is related to the "Ise Ninja Kingdom" amusement park in Mie Prefecture. "Minna de Ooya-san" became involved in its management around 2017, raising approximately 7 billion yen in investments for this facility. However, dividend payments for this product also stopped at the end of last month. Visitors to the park on a recent Sunday reported very low attendance, with many shops closed and a noticeable lack of customers.

Allegations of Fund Misappropriation and Financial Irregularities

Further investigations have raised serious concerns about the flow of funds within the "Minna de Ooya-san" group. A former executive revealed that most group companies were operating at a loss and that funds collected from one investment product were being used to pay dividends for another, a practice that potentially violates the Real Estate Specified Joint Enterprise Act, which mandates the segregation of funds for each investment product.

Mizuho Bank, where several "Minna de Ooya-san" group companies held accounts, had previously raised concerns about the fund's financial practices. In a series of inquiries between December 2022 and February 2024, the bank questioned the sustainability of the Gateway Narita project, noting that dividend payments were being made without rental income generation. The bank also pointed to the potential diversion of funds totaling over 10 billion yen to other investment projects, including a Hong Kong IPO, a Karuizawa project, and a Honmoku project.

One such project, "Bay Town Honmoku 5th Avenue" in Yokohama, was reportedly intended for purchase by "Minna de Ooya-san." The previous owner stated that "Minna de Ooya-san" paid a 1.5 billion yen deposit in 2023 but failed to pay the remaining 2.7 billion yen, forfeiting the deposit and failing to acquire the property.

The operating company's representative, in a previous interview with MBS, dismissed Mizuho Bank's concerns as an ongoing attack by the bank, which he claimed had been targeting the company for 20 years.

Legal Action and Mounting Debt

In response to the escalating situation, five investors filed a lawsuit against the operating company in the Osaka District Court on the 17th of this month, seeking the return of a portion of their invested funds. As of the latest reports, approximately 2,500 investors have filed collective lawsuits, demanding a total of over 23.2 billion yen.

Adding to the crisis, the operating company recently announced its financial results for the fiscal year ending March 2026, revealing a net loss of approximately 298.4 billion yen and a debt-to-equity ratio of approximately 288.1 billion yen. While the company claims it expects to rectify the debt through asset sales, Osaka Prefecture, the supervising authority, has deemed the debt to be in an illegal state and is conducting an investigation.

On the day of the latest report, Osaka Prefecture revoked the fund operator's license due to the company's debt-ridden status and instructed it to protect investors' assets from improper disposal.