UPDATE 1-Tokyu Land plans to spend $4.5 bln on urban projects

TOKYO, Aug 12 (Reuters) - Japanese real estate developer Tokyu Land Corp (8815.T) said on Tuesday it plans to spend up to $4.5 billion over three years on development projects, encouraged by a fall in prices as foreign funds scale back investment.

Tokyu Land joins other firms such as Orix Corp (8591.T) which have spied bargains in the domestic market, as foreign investors lick their wounds and smaller developers sell off buildings cheaply in the wake of the global credit crisis.

Tokyu Land said it is looking at launching projects in central Tokyo, as well as in other major cities such as Osaka and Nagoya.

"The planned investment would include comprehensive redevelopment where we would start by purchasing land, as well as the redevelopment of existing buildings," said Tokyu Land spokeswoman Megumi Sato.

Tokyu Land's business centres on both apartment sales and leasing commercial real estate. But the firm said in May that it aimed to shift more of its focus to commercial real estate which generates stable revenues even in a property downturn.

Orix, Japan's top general leasing company, said in June that it plans to invest 300 billion yen in office buildings, condominiums and hotels in major Japanese cities this year. [ID:nT274799]

Unlisted major developer Nippon Tochi Tatemono Co. was planning to build 40 office buildings in Tokyo and in the Osaka area, the Nikkei business daily reported earlier this year.

Tokyu Land shares advanced 0.8 percent to 528 yen in morning trade, outperforming a 0.7 percent decline in the benchmark Nikkei 225 average .N225.

(Reporting by Mariko Katsumura; Editing by Edwina Gibbs)