Mitsubishi Estate Co., Japan's biggest developer by market value, said Monday it will rebuild a Tokyo residential complex where it stopped selling apartments after finding defects. The units were going for as much as ¥350 million.
The reconstruction will take about three to four years to complete, and builder Kajima Corp. will be in charge of the project and cover the cost, said Masayuki Watanabe, a spokesman at Tokyo-based Mitsubishi Estate.
The building was constructed by Kajima along with Kandenko Co., according to the developer.
Mitsubishi Estate stopped selling apartments in the building in the upscale Aoyama neighborhood after finding it needed repairs, including to some of the pipes, the developer said in an email on Feb. 3. Eighty-three out of 86 units were under contract and were expected to be handed over to the owners on March 20, the company said last month.
"Reconstruction is what our customers want," Watanabe said. "We don't know how much it will cost yet at this stage."
The decision to rebuild was made last week and Mitsubishi Estate held information sessions for its customers over the weekend, Watanabe said.