Project

1. History of +100 years Wooden Cultural Asset Properties

Gion Kobu Kaburenjo (Theatre) is a place where geisha and apprentice geisha practice and perform their musical dance. This is the place for Miyako Odori (Miyako Dance) that was composed in 1872 to celebrate the arrival of spring in every April. The Japan’s largest wooden theater is still in use. Built in 1913, Theatre underwent the first major renewal in 1952 where reinforcement, repair and expansion of audience seats were conducted. In 2001, six buildings in the Theatre site were registered as national tangible cultural property. Out of six buildings, the main building is the biggest wooden theater still in operation in Japan.

2. Lack of Seismic Performance Led to Theatre Closure

In the 2014 seismic diagnosis, Theatre received a red flag that the building would be collapsed by “Shindo (Japanese seismic intensity) 6”. Prioritizing the people’s safety, the client decided to close Theatre in 2016. As a result, to the shock of the people of Kyoto, Miyako Dance, which has been traditionally performed in Theatre over 100 years, had to be performed in a venue other than Theatre.

3. Achieving both Inheritance of Traditional Culture andReliable Safety

Aiming at higher seismic performance for safety and more reliability as a facility to conserve cultural value, the client and NCM worked together on the second large-scale renewal project. The technical challenge is to “preserve” the wooden building as much as possible through seismic reinforcement.

Another challenge is funding. In spite of designated national heritage, the government provides no subsidies. This project needed to be proactively self-supporting for fundraising, in order to protect and transmit of costly traditional culture for future generations.

4. Revived Theatre Revitalized the Community 

In Nov 2022, the seismic reinforcement work on an unprecedented scale on the historic wooden building was completed. Successful reopening of Miyako Dance in Theatre in Apr 2023 was hugely celebrated by the people in Kyoto. It was widely reported in Kyoto Newspaper. With focus on a new value creation along with technical expertise, this project successfully enhances both cultural and property assets.

II.Worthy Achievements

1. Not only “Preserve” but also “Invigorate” the Properties

The significance of this project was a mind-set change from “preserve” historical properties to “activate” them for long-term use, enabling the cultural heritage to continue in a self-sustaining manner. NCM proposed an asset enhancement, whereby one of the buildings on the site named “Yasaka” would be used as a hotel to raise money for Theatre in main building.

Main building’s goal: to meet the latest safety standard while preserving the theater function and cultural asset value. Achieving this balance required maximized volume with detailed analysis of the safety regulations including exclusion items. Due to limited budget, NCM focused on the facility in line with the route of Miyako Dance. NCM examined each condition and did “triage” into three categories: eliminate, keep and renovate.

Yasaka’s goal: Yasaka was RC theater, but mostly unused. Through Yasaka’s land lease agreement between the client and the hotel operator, the lease fee would be used as a part of the source of loan repayments. The selected hotel operator proposed to leave two sides of the external wall, demolish the building and construct a new building. To cope with deregulating the height control, NCM supported the negotiation with Kyoto city to leave two sides of external wall. The client was responsible for demolition work and leaving external walls. NCM managed the client’s work and supported the hotel operator to achieve maximized the floor area ratio (FAR).

2. Evaluate the Lifecycle of +100 Wooden Structure for the Asset Value, Contributing to Fund-Raising

The financing for the seismic reinforcement work was a syndicated loan schemed by a group of banks. In principle, the loan period was assumed to be within the statutory durable period. This means this project needed to demonstrate that the seismic reinforcement of >100 year wooden building could extend the statutory period. Working with the financing team, NCM proved the asset value after the seismic work completion by presenting the building replacement cost and LCC (building lifecycle cost) in long-term maintenance plans so the extension of wooden building can be properly evaluated and financed.

3. Optimize the Overall Risk Balance between Stakeholders

The seismic reinforcement work for this scale of the wooden building is unprecedented in the world. NCM’s proposed construction method was to leave the existing frame and attach a reinforced steel frame, which was expected to require highly technical expertise. 

Due to unprecedented technical difficultness, the probability of unsuccessful bidding was high. NCM strategized to balance between interests, risks and opportunities for both client and bidders (GCs), such as partially adopting cost plus fee. NCM’s procurement strategy included to incentivize GCs to propose their plans. As a result, despite technical difficulties, a faster plan than the original one was proposed by the bidder.

4. Mitigate Schedule Risk with The Fast Track Approach during Covid-19

The venue and timing for Miyako Dance had been decided several years in advance, so a delay in the project would cost the client enormous financial damage. Nevertheless, the impact of the Corona disaster on the schedule was severe. NCM therefore adopted the Fast Track approach. By splitting the construction phases from 2 to 3, the construction area that could be commenced with the self funding was secured. NCM proceeded with advanced procurement for the self-funded construction area to mitigate risk. By risk diversification and coordination of commencement of each building, the construction schedule was successfully shortened by 4 months, and the Miyako Dance was finally held safely and happily on schedule.