INUJIMA SENIOR UNIVERSITY A lively and active retirement life for all
目录
CONTENT
Project Overview
2
Funding Strategy
3
Exit Strategy
4
Risk Management
CONTENT
1
Project Overview
Overview Inujima is experiencing depopulation after the huge economic growth in Japan. People moved to the city to work and resettled in the city. Only elderly are left in the island. The island currently only has 27 residents. Inujima is not a sole case. city shrinking and urban decay is happening across different nations and societies. Looking at the successfully cases such as Beijing 798 and Manchester, it seems that it is necessary for the city to transform and re-define its role in the market. this project aims to take Inujima island as a test
INUJIMA
ground, to explore ways of city revival.
The Problem
city shrinking & urban decay •
resource crisis
•
remote area
aging population in Japan •
nursing home
•
assisted living home
•
home
•
homeless
Project Overview
hostel 1200sqm renovation
School 800sqm extension & adaptation
Project Timeline Construction of School of Arts Renovation of 20 abandoned houses for hotel
Construction of Drama School Renovation of 10 abandoned houses for hotel
2019
Full opening of Inujima Elderly School Renovation of 30 abandoned houses for hotel
2021
2023
2025
Opening of Drama school
Start of Membership
Prepare for Stage 1 Exit
Funding Strategy
Potential Partnership
Proposal 1 - Joint Venture
Appoint
Dorm Renting
School Revenue
Operation Cost
*(Preferred due to legal formalities of opening a school, especially elderly school in Japan)
Revenue
Stock
Proposal 2 - Crowdfunding
Elderly Residents at Okayama Region Funding
Exit Policy The current proposal aims to close the gap for the current elderly market with an active retirement scheme (in comparison with the traditional passive ones such as nursing home). If successfully, the proposal could be implemented into other cities and regions. Considering the huge pool of elderly citizens in Japan, and the success of the Chinese elderly school, this proposal seems to be highly potential.
Exit Strategy In the stage 2, by establishing more schools around Japan, the team is able to start up the union, seize the opportunity, and quickly build up the company trust and brand. To be sustainable in the long run, stage 3 targets
2019
2027
2034
the coming generations which are better educated, richer and many are dink families. Starting to lose trust on the current retirement scheme, many have thought about the ways to prepare for the old. Stage 3 aims to provide a platform and opportunity for the coming generations to invest for their retirement, promising them with a not only self-sustainable, but also active, healthy, independent retirement life with companionships. With this shifting demography and consuming ability, there is a huge potential for preparing for the old.
Start
Roll over to private equity target return 25%, accumulated school candidates of 500
REIT listing
Stage 2 2%
50%
98%
50%
Sell to The fund raised during this stage will be used for the establishment of other elderly schools across the nation. The company aims to establish the trust and build up the company image as one who provided the best choice of spending the retirement life safely and happily at this stage. stage 2 investment horizon: 8 years exit requirement: 25% returns, establishment of elderly university union
Stage 3
2%
Act on behalf
98%
of unit holders Asset owner Sell 80% partial fund to
The fund raised during this stage will be used for the company to extend its business on other elderly related sectors. Some areas of exploration includes high-tech healthcare products. The target audience will be the coming generations of the elderly, the company focus will shift to cater to their needs of preparing for the old.
Risk Management
Risk Factors
Market Risk the concept might be adopted by the competitors and a cheaper substitute might be released into the market to attract away potential customers
Elderly might be reluctant to change their mindset on which kind of life they should live after retirement.
Labour cost is expensive in Japan, the construction cost might go up even higher due to the inaccessibility of Inujima the business is highly dependent on the business performance of Japan, whether the current workforce is able to pay for pension for elderlies, resulting whether the target audience is able to pay for the services
Operational Risk
the registration of an elderly school requires long process of administration, this leads to information gap and multiple layers of uncertainty, it is hard to manage the business Operation of an elderly school requires specialized skills in tutoring and basic healthcare support. This increases the difficulty in running the business and lead to ethical issues which might turn the business over. Long term strategy requires large amount of investment, and the return might be slow in the beginning. Business has to get constant funding to survive for the first few years before establishing its company brand in the region. the business is highly dependent on government’s policy on whether to raise the current retirement age
Credit Risk
Potential consumer may fail to make a payment Potential of partner not fulfilling the financial obligation
Market Sensitivity Analysis market sensitivity: construction V.S. EIRR Construction Cost
150
180
200
220
250
EIRR
28.2%
26.8%
26.0%
25.2%
24.1%
market sensitivity: rent from redeveloped retail V.S. EIRR Retail Rent (Re)
50
70
90
110
130
EIRR
17.5%
22.2%
26.0%
29.2%
32.1%
market sensitivity: Interest Rate V.S. EIRR Interest Rate
1%
1.5%
2%
2.5%
3%
EIRR
26%
26.0%
26.0%
26.0%
26.0%
market sensitivity: staff cost V.S. EIRR no of staff
1000
1500
2000
3000
5000
EIRR
26.5%
26.2%
26.0%
25.4%
24.2%
Risk Management The staff cost contributes to a major component of the project due to the nature of it being an elderly school, both requires specialized and skilled workers. It is a market risk once the demand for such specialists go up.
the first school established will be a drama school as the requirements for its space and course delivered are harder to be replicated by the potential competitors.
Other methods such as media exposure and inviting well known celebrities to the school could be considered as a marketing strategy to establish the company brand at the first stage.
The project is collaborated with Saitama gold theater in Japan and open university of Japan. This ensures a constant accessibility of teaching resources at a reasonable prize.
the school fee could be charged slightly higher every year to prevent a sudden jump of school fee due to the increased in labour cost
Part of building can use pre-fabricated module which is constructed at a lower price, ship to Inujima and install on site to save construction cost.
Conclusion Mission: to provide a lively and active retirement life for healthy senior citizens across seto inland sea by establishing an elderly school at Inujima. If successful, the strategy will be introduced to other regions across Japan to establish an elderly university union. Capital required: 1.12 million for equity, 2.23 million total cost at stage 1 Key time frame of fund raising strategy: 1st closing: 40% at 3rd month; 2nd closing: 70% at 6th month; 3rd closing: 100% at 9th month Next step: month 2 to month 4 to month 6 to month 7 to
agree on basic term sign JVA finish acquisition start construction
Thank You
ljy.jiayili@gmail.com
Appendix
Programme Details – regular course School Fee (Regular Course) One time registration fee
School fee/ term
School fee/ year
Accommodation/ month
1-year membership
5-year membership
public
83,000JPY (1000SGD)
165,000JPY (2000SGD)
495,000JPY (6000SGD)
50,000JPY (600SGD)
NIL
NIL
member
waived
Included in membership fee
Included in membership fee
Included in membership fee
1000,000JPY (12,000SGD)
4150,000JPY (50,000SGD)
Course Schedule (Regular Course) Year 1
Theory 1: Drama; Acting 1: Movement; Theater Production 1; Playwriting 1
Level 1 Completed
Year 2
Theory 2: Film; Acting 2: Character; Theater Production 2; Playwriting 2
Level 2 Completed
Year 3
Theory 3; Acting 3: Stage; Theater Production 3; Sightreading
Level 3 Completed
Timetable (Regular Course)
Morning Afternoon
Mon
Tue
Wed
Thru
Theory
Playwriting
Acting
Acting
Movie Screening
Workshop
Fri
Theater Production
Programme Details – express course School Fee (Express Course) School Fee
Accommodation/month
Public
248,000JPY (3000SGD)
waived
Member
165,000JPY (2000SGD)
waived
Course Schedule (Express Course) Express 1 (Theater)
Theory; Acting :Theater Theater Production
Certificate in Theater Production
Express 2 (Film)
Theory; Acting :Film Theater Production
Certificate in Film Production
Express 3 (Playwriting)
Theory; Playwriting Theater Production
Certificate in Playwriting
Timetable (Express Course) Mon
Tue
Wed
Thru
Fri
Morning
Theory
Acting/Playwriting
Acting/Playwriting
Theory
Theater Production
Afternoon
Theater Production
Movie Screening
Workshop
Acting/Playwriting
Theater Production