The Group consists of the Company, 20 consolidated subsidiaries, and two equity method affiliates. The Real Estate Development Business is mostly engaged in the planning, development, and sales of the Company’s own brand, the “S-RESIDENCE” series; the Real Estate Solution Business is mostly engaged in acquiring, rehabilitating, and selling income-producing properties; the Overseas Business is engaged in investment and condominium property sales overseas; the Real Estate Leasing Business leases apartment buildings, office buildings, and commercial facilities; the Hotel Business leases and manages hotels; and the Real Estate Management Business manages apartment buildings, office buildings, and commercial facilities. Thirteen of the consolidated subsidiaries (excluding S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY) were established or are invested in, in connection with business to acquire, hold, and develop land, buildings, and trust beneficiary rights in the process of the Company’s conducting of these businesses. 

 

The Group’s business is characterized by the planning and development capabilities of our architects, including design, cost management, and construction supervision, as well as our accumulated expertise as property managers through the leasing of real estate owned by us. By utilizing these planning, development, and property management capabilities, we acquire land for business, plan and develop apartment buildings and office buildings, recruit tenants, and develop income-producing real estate to earn rental income.

 

In addition, the Group seeks to control fixed costs associated with business expansion by subcontracting or outsourcing design work, construction work, and sales of condominiums to design firms, construction companies, and sales companies, respectively.

 

Through the development and leasing of apartment buildings and office buildings, the Group provides products and services to a wide range of customers and for a wide range of needs, including real estate investment trusts (J-REITs), real estate investment funds, general corporations, individual investors, and purchasers of condominiums.

 

The positioning of the Company and its affiliated companies in their businesses, and their relationship with the segments are as follows. The classifications shown below are the same as those of the segments. Effective from the current fiscal year, the former Real Estate Business is divided into three segments, Real Estate Development Business, Real Estate Solutions Business, and Overseas Business, and the former Real Estate Leasing Business is divided into two segments, Real Estate Leasing Business and Real Estate Management Business. Businesses other than the Hotel Business, which were previously included in the Other Businesses segment, have been reclassified into their respective segments. In addition, asset management, which was previously included in the Real Estate Business, has been reclassified into the Real Estate Management Business.

Note: Consolidated subsidiaries other than SAMTY ASIA INVESTMENTS PTE. LTD., S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY, Samty Vietnam Co., Ltd., Hikone SC Ltd., Samty Hotel Management Ltd., Samty Asset Management Co., and Samty Property Management Co., are special purpose companies and general incorporated associations that the Group establishes or invests in in connection with business to acquire, hold, and develop land, buildings, and trust beneficiary rights in the process of conducting each business.

(1) Real Estate Development Business

The Group acquires land for business, and plans, develops, and sells its own brand "S-RESIDENCE" series, etc. The Company not only recruits tenants for the developed real estate, but also uses its know-how to upgrade the properties by renovating facilities, improve occupancy rates, etc., in order to secure income during the period the real estate is held, and ultimately sell them as investment properties to outside investors, etc., for profit on sale. The Company also engages in the apartment building management business and the construction and renovation business.

Primarily handled by:

Samty
 

(2) Real Estate Solution Business

The Group acquires existing income-producing real estate and not only recruits tenants, but also uses our know-how to upgrade the properties by renovating facilities and improve occupancy rates, etc., in order to secure income during the period the real estate is held, and ultimately sells the properties as investment properties to outside investors, etc. for profit on sale. 

Primarily handled by:

Samty

(3) Overseas Business

Engages in investment and condominium property sales overseas

Primarily handled by:
SAMTY ASIA INVESTMENTS PTE. LTD.
S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY
Samty Vietnam Co., Ltd.

(4) Real Estate Leasing Business

The Group wholly or partially owns apartment buildings, office buildings, commercial facilities, parking lots, and other properties and leases them to individuals and companies. We continually acquire income-producing real estate to increase rental revenues. We use special-purpose companies to acquire and hold large income-producing real estate. We also engage in subleasing, whereby we lease apartment buildings and other properties from owners of income-producing real estate and sublease them to end-tenants.

Primarily handled by:
Samty, Hikone SC Ltd.

(5) Hotel Business

The Group owns and operates S-PERIA Hotel Kyoto, Ibis Styles Nagoya~{1}, Nest Hotel Hiroshima Hatchobori, NEST Hotel Hiroshima Station, and Center Hotel Tokyo, and operates S-PERIA INN Nihonbashi Hakozaki, S-PERIA INN Osaka Honmachi, S-PERIA Hotel Hakata, S-PERIA Hotel Nagasaki, Mercure Kyoto Station, and Hotel Sunshine Utsunomiya.
~{1} The land for ibis Styles Nagoya was sold and delivered based on a trust beneficiary right transfer agreement dated February 26, 2020, the Group owns  the building.

Primarily handled by:
Samty Hotel Management Co., Ltd.
S-PERIA Hotel Operations Nagasaki LLC
S-PERIA Hotel Operations Utsunomiya LLC
S-PERIA Hotel Operations Hakata LLC
S-PERIA Hotel Operations Kyoto Tambaguchi LLC
S-PERIA INN Development LLC
S-PERIA Hotel Operations Nagoya LLC
S-PERIA Hotel Operations Kyoto Horikawa LLC
R & K LLC
S-PERIA Hotel Operations Kyoto Shijo LLC
S-PERIA Hotel Operations Kyoto Oike LLC
Wealth Management Inc.
Shangri-La Kyoto Nijojo SPC

(6) Real Estate Management

The Group wholly or partially owns apartment buildings, office buildings, commercial facilities, parking lots, and other properties and leases them to individuals and companies, and provides contract services such as rent collection, contract management, and building management. In addition to commission income from real estate investment funds for real estate management and administration services, etc. as an asset manager, the Group also aims to earn dividends from its own investments in real estate investment funds.

Primarily handled by:
Samty Asset Management Co., Ltd.
Samty Property Management Co., Ltd.