Lead Real Estate Co., Ltd Announces the Start of a New Business Operation, “Master Lease Business”

Rhea-AI Summary

Lead Real Estate (NASDAQ:LRE) has announced the launch of its new Master Lease Business through its wholly-owned subsidiary LRE Management Co., Ltd. The business model involves fixed-term building lease agreements for extended-stay hotels, where LRE will manage properties and pay agreed-upon rent to property owners.

Additionally, the company announced the sale of ENT TERRACE Tsukiji 6-chome, an 8-room extended-stay hotel project in Tokyo. The property, featuring nine floors and 6,698 square feet of building area, is strategically located within the $6 billion Tsukiji District Community Development Project, a major urban renewal initiative by the Tokyo Metropolitan Government covering 19 hectares.

Positive

• None.

Negative

• Capital intensive business model requiring significant property investments
• Fixed rent payment obligations regardless of hotel performance
• Exposure to hospitality sector risks and occupancy fluctuations

TOKYO, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Lead Real Estate Co., Ltd (Nasdaq: LRE) (“LRE” or “the Company”), a Japanese real estate developer of luxury residential properties including single-family homes and condominiums across Tokyo, Kanagawa Prefecture and Sapporo, is announcing the official start of the “Master Lease Business” and the sale of the hotel site “ENT TERRACE Tsukiji 6-chome.”

Master Lease Business

LRE is announcing the official start of the operation of its “Master Lease Business” by LRE Management Co., Ltd. (formerly known as “Sojiya Japan Co., Ltd.”), a wholly owned subsidiary of LRE, which operates hotels, inns, and guest houses.

The Master Lease Business mainly includes fixed term building lease agreements between owners of extended-stay type hotels and the Company. Specifically, after the purchase of a piece of land has been completed, the Company signs a fixed-term building lease reservation agreement and management reservation agreement with the new owner, pursuant to which LRE and the new owner will enter into a fixed term building lease agreement and management agreement upon completion of construction of the building. Under a fixed term building lease agreement and management agreement, LRE will agree to rent the hotel from the owner, operate the hotel business and property management, and generate revenue. In return, an agreed amount will be paid back to the owner in the form of rent by the Company.  

Through its Master Lease Business, the Company believes that it will provide first-rate property and business management to its client, ensuring peace of mind and a stable income. The Company aims to become a one-stop real estate service provider that maximizes customer satisfaction by providing comprehensive services from development to management.

ENT TERRACE TSUKIJI 6 CHOME

ENT TERRACE Tsukiji 6 Chome is an 8-room extended-stay type hotel located in Tsukiji, Chuō, Tokyo at the planning stage and is designed to be constructed from reinforced concrete and features nine floors above ground. It is designed to have a building area of 6,698 square feet and a land area of 1,016 square feet.

Exterior Rendering of ENT TERRACE Tsukiji 6 Chome

Interior Rendering of ENT TERRACE Tsukiji 6 Chome

Tsukiji District Community Development Project

There is an ongoing urban redevelopment initiative undertaken by the Metropolitan Government in the Tsukiji District, known as the “Tsukiji District Community Development Project,” which has been in progress since March 2022. It is a large-scale urban renewal project spearheaded by the Tokyo Metropolitan Government, aiming to contribute to the city's growth by maximizing the potential of the Tsukiji area, leveraging its landscape, history, and cultural resources. The project aims to transform the Tsukiji area into a “waterfront city” that befits and symbolizes Tokyo, with a view to welcoming people through the routes from the waterways and creating spaces for diverse exchange.

         
Conceptual Map of the Tsukiji District Community Development Project 

Project Overview

• Location: Areas within Tsukiji 5-chome and 6-chome, Chuo District, Tokyo
• Area of Project Site: 19 hectares
• Total Construction Cost: Approximately 6 billion U.S. dollars ($1=150 JPY)
• Participating Companies: 11 companies (Mitsui Real Estate, Toyota Automobile,
  Shimizu Construction, Asahi Newspaper, and others)
• Featured Structures: Multifunctional super facility (capacity for approximately 50,000 people), new subway station, and boat transportation facilities

Locations of ENT TERRACE Tsukiji 6 Chome and Tsukiji District Community Development Project
*Red Outline: Area subject to the Tsukiji District Community Development Project
*ENT TERRACE Symbol: Hotel Location

About Lead Real Estate Co., Ltd

Lead Real Estate Co., Ltd is a Japanese developer of luxury residential properties, including single-family homes and condominiums, across Tokyo, Kanagawa Prefecture and Sapporo. In addition, the Company operates hotels in Tokyo and leases apartment building units to individual customers in Japan and Dallas, Texas.

The Company’s mission is to serve its customers by offering stylish, safe, and luxurious living. The Company’s vision is to adopt the Kaizen (continuous improvement) approach to seek to improve its operations, and to leverage its nationally recognized, award-winning luxury homes and strong market position in the luxury residential property market in Tokyo, Kanagawa Prefecture, and Sapporo to create a global transaction platform allowing access to prime Japanese condominiums as well as overseas condominiums, including those in the U.S. and Hong Kong.

For more information, please visit the Company’s website at https://www.lead-real.co.jp/en/.

Forward-looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information:

For Media and Investor Relations
Daisuke Takahashi
Chief Financial Officer
Lead Real Estate Co., Ltd
d-takahashi@lead-real.co.jp
+81 3-5784-5127

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com

Attachments

• Locations of ENT TERRACE Tsukiji 6 Chome and Tsukiji District Community Development Project
• Conceptual Map of the Tsukiji District Community Development Project
• Interior Rendering of ENT TERRACE Tsukiji 6 Chome
• Exterior Rendering of ENT TERRACE Tsukiji 6 Chome

FAQ

What is Lead Real Estate's (LRE) new Master Lease Business model?

LRE's Master Lease Business involves signing fixed-term building lease agreements for extended-stay hotels, where the company manages the properties and pays agreed-upon rent to owners while operating the hotel business.

What are the details of LRE's ENT TERRACE Tsukiji 6-chome project?

ENT TERRACE Tsukiji 6-chome is an 8-room extended-stay hotel in Tokyo, featuring 9 floors, 6,698 square feet of building area, and 1,016 square feet of land area, constructed from reinforced concrete.

How does the Tsukiji District Development Project impact LRE's new hotel?

The hotel is located within the $6 billion Tsukiji District Development Project area, benefiting from major urban renewal initiatives including a 50,000-person capacity facility, new subway station, and waterfront developments.

What companies are involved in the Tsukiji District Community Development Project?

The project involves 11 major companies including Mitsui Real Estate, Toyota Automobile, Shimizu Construction, and Asahi Newspaper, with a total construction cost of approximately $6 billion.

How will LRE generate revenue from its Master Lease Business?

LRE will generate revenue by operating and managing extended-stay hotels, while paying fixed rent to property owners, acting as a one-stop real estate service provider from development to management.