Discrepancies of insulation materials in parting walls and exterior wall structures not meeting certain qualifications
Course of events leading to the manufacture of foamed urethane panels
At that time, we were examining measures to increase productivity at construction sites. As a simplified method of binding materials for exterior walls (siding and reinforced gypsum board) and parting walls (two gypsum boards), subject panels were manufactured using foamed urethane as an adhesive.
Apartments which foamed urethane panels were used
A list prepared at the time when subject panels were manufactured contains the apartment numbers which panels were delivered. By checking this list against the list of apartments we have constructed, we confirmed that 925 apartments have the possibility of subject panels being installed in parting and/or exterior walls. The subject apartments are of three series; Gold Residence, New Gold Residence, and Villa Alta, constructed between 1996 and 2001.


Details of defects that may be in violation of the Building Standard Law
Discrepancies of insulation materials in parting walls
Although it is written in construction certification documents that glass wool (fiberglass) is to be used as insulation material in parting walls, we confirmed that foamed urethane was used in certain buildings. There is a possibility that these buildings do not meet the sound insulation standards of apartments required by the Building Standard Law.

Exterior wall structures not meeting qualifications certified by the Minister of Land, Infrastructure and Transport
According to the Building Standard Law, exterior walls of apartments require semi-fire-resistant or fireproof structures. However, we confirmed that certain buildings with the subject panels installed do not meet qualifications certified by the Minister of Land, Infrastructure and Transport, as noted in construction certification documents.

Discrepancies of insulation materials in parting walls
The Ministry of Construction Notice No. 1827 (issued in 1970) required glass wool or rock wool to be used as insulation material in parting walls. However, since foamed urethane was recognized as a superior material in terms of insulation performance and price (foamed urethane is more expensive), we wrongly assumed that it met notice requirements.
Exterior wall structures not meeting qualifications certified by the Minister of Land, Infrastructure and Transport
The binding method of boards and the necessary length between wall backings is specified in qualifications certified by the Minister of Land, Infrastructure and Transport. However, we believe communication between the designing department and the product ordering department was insufficient, leading to the manufacturing of subject panels with specifications different from those specified in the qualifications.
Actions by Leopalace21
We will consult with apartment owners and designated administrative agencies and decide on repair methods. We will bear the expenses and responsibilities, and conduct repairs. For exterior walls, we will also check whether or not we can acquire certifications by the Minister of Land, Infrastructure and Transport.
For tenants, we will make the necessary arrangements for relocation during repairs. agencies about repair methods. We will bear expenses related to relocations.
For owners of apartments managed by other companies, we will compensate the rent of vacant rooms during a period designated by the Company.