Lead Real Estate starts new business operation, ‘Master Lease Business’

Lead Real Estate (LRE) announcing the official start of the “Master Lease Business” and the sale of the hotel site “ENT TERRACE Tsukiji 6-chome.” LRE is announcing the official start of the operation of its “Master Lease Business” by LRE Management Co., 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.