Rented campuses to be permitted

In an easing of the regulation that obliges private universities to have ownership of their land and buildings, the government likely will permit educational corporations to establish universities using leased land and buildings, sources said.

The deregulation is aimed at supporting local governments hoping to attract private universities.

The Education, Science and Technology Ministry will adopt the new regulation for applications to establish universities in the 2007 academic year, according to the sources.

The deregulation to allow leased land and buildings for schools will be implemented nationwide, as it is currently only applied to special deregulation zones, including Tokyo's Chiyoda and Shinjuku wards.

The government plans to rule that contracts for land and buildings leaseholds should be about 20 years to ensure the stable management of educational institutions over a long period, according to the sources.

At present, educational corporations have to purchase land and buildings when establishing universities and such a heavy financial burden has caused corporations to lose interest in opening universities or establishing new departments, hindering the efforts of local governments to attract new schools.

With rented accommodation, the establishment of universities in areas where the cost of land and buildings is very high, such as central Tokyo, will become significantly easier than it is now.
(Jan. 13, 2007)
http://www.yomiuri.co.jp/dy/national/20070113TDY03004.htm