L
ead Real Estate (NASDAQ:LRE) has announced significant property transactions with Samurai Capital Co., Ltd through trust beneficiary right purchase agreements. The deal includes the sale of two apartment hotels, Ent Terrace Akihabara and Ent Terrace Asakusa, and two condominiums, Excelsior Shakujii-Koen and Excelsior Yokohama Enokicho, totaling approximately 5.3 billion yen. This marks the second round of transactions between the companies, following their May 2024 business alliance and first-round transactions worth over 4 billion yen. LRE has also signed a memorandum of understanding for preferential negotiations regarding three future long-term stay hotels. The company will maintain involvement in hotel operations through fixed-term master lease contracts.

    The transaction structure reveals Lead's asset-light development strategy, where they plan, develop, and sell properties while maintaining involvement through master lease contracts for the apartment hotels. This approach allows LRE to generate immediate capital returns while securing ongoing operational revenue streams.

    LRE has expanded its partnership with Samurai Capital through a ¥5.3B transaction, strengthening its asset-light business model. The company aims to provide integrated services from planning to operation, maximizing customer satisfaction. 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.

    The sold properties are located in prime areas of Tokyo (Chiyoda, Taito, and Nerima Ward) and Yokohama City, Kanagawa Prefecture. LRE will continue to manage the extended stay hotels through fixed-term master lease contracts, providing integrated services from planning to operation. The company has signed a memorandum of understanding with Samurai Capital for preferential negotiations regarding three future long-term stay hotels currently scheduled for construction.

    The total value across two rounds of transactions exceeds 9.3 billion yen, with the first round worth over 4 billion yen and the second round approximately 5.3 billion yen.