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.
Lead Real Estate (NASDAQ:LRE) ha annunciato il lancio del suo nuovo Master Lease Business tramite la sua controllata al 100% LRE Management Co., Ltd. Il modello di business prevede contratti di locazione a termine per edifici destinati a hotel con soggiorni prolungati, dove LRE gestirà le proprietà e corrisponderà un canone di locazione concordato ai proprietari degli immobili.
Inoltre, la società ha comunicato la vendita di ENT TERRACE Tsukiji 6-chome, un progetto di hotel con soggiorni prolungati di 8 camere situato a Tokyo. L’immobile, che si sviluppa su nove piani con una superficie di 6.698 piedi quadrati, è posizionato strategicamente all’interno del progetto di sviluppo comunitario del distretto Tsukiji da 6 miliardi di dollari, una grande iniziativa di rinnovo urbano promossa dal governo metropolitano di Tokyo che interessa un’area di 19 ettari.
Lead Real Estate (NASDAQ:LRE) ha anunciado el lanzamiento de su nuevo Master Lease Business a través de su subsidiaria de propiedad total, LRE Management Co., Ltd. El modelo de negocio consiste en contratos de arrendamiento a plazo fijo para edificios destinados a hoteles de estadías prolongadas, donde LRE gestionará las propiedades y pagará la renta acordada a los propietarios.
Además, la compañía anunció la venta de ENT TERRACE Tsukiji 6-chome, un proyecto de hotel de estadías prolongadas con 8 habitaciones en Tokio. La propiedad, que cuenta con nueve pisos y 6,698 pies cuadrados de área construida, está estratégicamente ubicada dentro del proyecto de desarrollo comunitario del distrito Tsukiji valorado en 6 mil millones de dólares, una importante iniciativa de renovación urbana del Gobierno Metropolitano de Tokio que abarca 19 hectáreas.
Lead Real Estate (NASDAQ:LRE)는 자회사인 LRE Management Co., Ltd.를 통해 새로운 Master Lease Business를 시작했다고 발표했습니다. 이 사업 모델은 장기 체류 호텔을 위한 일정 기간 건물 임대 계약을 포함하며, LRE는 부동산을 관리하고 소유주에게 합의된 임대료를 지급합니다.
또한 회사는 도쿄에 위치한 8개 객실 규모의 장기 체류 호텔 프로젝트인 ENT TERRACE Tsukiji 6-chome의 매각 소식을 발표했습니다. 이 건물은 9층, 6,698평방피트의 면적을 가지고 있으며, 도쿄도 정부가 추진하는 19헥타르 규모의 대규모 도시 재개발 사업인 60억 달러 규모의 츠키지 지구 커뮤니티 개발 프로젝트 내 전략적 위치에 자리잡고 있습니다.
Lead Real Estate (NASDAQ:LRE) a annoncé le lancement de son nouveau Master Lease Business via sa filiale détenue à 100 %, LRE Management Co., Ltd. Ce modèle commercial repose sur des contrats de location à durée déterminée pour des bâtiments destinés à des hôtels de séjour prolongé, où LRE gérera les propriétés et versera un loyer convenu aux propriétaires.
Par ailleurs, la société a annoncé la vente de ENT TERRACE Tsukiji 6-chome, un projet d’hôtel de séjour prolongé de 8 chambres à Tokyo. La propriété, qui comprend neuf étages et une surface de 6 698 pieds carrés, est stratégiquement située dans le cadre du projet de développement communautaire du district de Tsukiji d’une valeur de 6 milliards de dollars, une importante initiative de renouvellement urbain menée par le gouvernement métropolitain de Tokyo sur une superficie de 19 hectares.
Lead Real Estate (NASDAQ:LRE) hat die Einführung seines neuen Master Lease Business über seine hundertprozentige Tochtergesellschaft LRE Management Co., Ltd. bekannt gegeben. Das Geschäftsmodell umfasst befristete Gebäude-Mietverträge für Extended-Stay-Hotels, bei denen LRE die Immobilien verwaltet und den Eigentümern die vereinbarte Miete zahlt.
Zusätzlich gab das Unternehmen den Verkauf von ENT TERRACE Tsukiji 6-chome bekannt, einem Extended-Stay-Hotelprojekt mit 8 Zimmern in Tokio. Die Immobilie mit neun Stockwerken und einer Gebäudefläche von 6.698 Quadratfuß befindet sich strategisch im Rahmen des 6-Milliarden-Dollar Tsukiji District Community Development Project, einer großen städtischen Erneuerungsinitiative der Regierung der Metropole Tokio, die sich über 19 Hektar erstreckt.
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
Insights
LRE expands with new Master Lease Business, creating recurring revenue while positioning strategically near Tokyo’s $6B Tsukiji redevelopment project.
Lead Real Estate is making a significant strategic shift with its new Master Lease Business, which represents a move toward more stable recurring revenue streams compared to the company’s traditional development-and-sell model. This approach creates a win-win arrangement where property owners receive guaranteed rent payments while LRE manages and operates the properties, keeping any operational upside.
The business model is particularly clever – LRE will sign fixed-term building lease reservation agreements with property owners before construction is completed, securing future management contracts. This creates a pipeline of properties that will generate predictable income without requiring the capital-intensive ownership of the real estate itself. It effectively allows LRE to monetize their operational expertise while reducing balance sheet risk.
The strategic location of their first announced property in this program, ENT TERRACE Tsukiji 6-chome, shows excellent market positioning. The 8-room extended-stay hotel sits adjacent to the massive $6 billion Tsukiji District Community Development Project, which will transform the area with a 50,000-person capacity facility, new subway station, and water transportation. The proximity to this transformative development will likely drive significant visitor demand and property appreciation.
By evolving into a “one-stop real estate service provider” spanning development through management, LRE is diversifying its business model and creating more consistent cash flow alongside its development business. This strategic expansion positions the company to capture value across more segments of the real estate value chain while building long-term client relationships that can lead to repeat business opportunities.
08/06/2025 – 08:00 AM
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, TokyoArea of Project Site: 19 hectaresTotal 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
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.
AloJapan.com