Advancing Business Structural Transformation

「三交不動産㈱ opened Yokkaichi Sanco Building, one of the largest rental office buildings in Mie Prefecture, in August this year, and began developing Yokkaichi Sanco Building Annex, with Sanco Inn as its anchor tenant, thereby working to expand the earnings base centred on the Real Estate segment.」

「Following the openings of the Second Nagoya Sanko Building and the Meieki Sanko Building, the (New) Yokkaichi Sanko Building was completed, and development of for-sale rental apartments was also advanced」

「Based on a four-year medium-term management plan beginning in fiscal 2023, the Group proceeded through Sanko Real Estate Co., Ltd. with construction of the Second Nagoya Sanko Building (provisional name) and the Nagoya City Nakamura Ward Tsubaki-cho Building (provisional name) in Nagoya, and the Yokkaichi Station-front Sanko Building (provisional name) in Mie Prefecture, working to expand the earnings base of the real estate segment, a growth driver.」

「Against this backdrop, to capture a broad range of needs, the group opened “Sanco Inn Ise-Shi Ekimae ‘Annex’ Grande” in July 2023 in a building adjacent to the “Sanco Inn Ise-Shi Ekimae” business hotel, offering an elegant space of a higher grade, and worked to secure revenue.」

「The Group advanced efforts to capture the increase in demand accompanying the recovery from the COVID-19 pandemic and to expand the earnings base in each business.」

「The Group will also seek to optimize its business portfolio by reviewing its earnings structure and appropriately allocating management resources.」

「In addition, the Group advanced its leasing business in priority areas through the construction of the Second Nagoya Sanko Building (provisional name) and the Nagoya City Nakamura Ward Tsubaki-cho Building (provisional name), as well as plans to construct the Sanko Yokkaichi Station Building (provisional name). It also pursued decarbonization initiatives, including Sanko Real Estate Co., Ltd.'s switch to electricity that is effectively renewable energy for its own use from April 2022.」

「The group also advanced its business, focusing on priority areas, including constructing build-to-sell rental condominiums in Nagoya and the “2nd Nagoya Sanco Building” (provisional name), and pursuing plans to construct an office building in front of Kintetsu Yokkaichi Station.」

「The group also advanced its business, focusing on priority areas, including constructing build-to-sell rental condominiums in Nagoya and the “2nd Nagoya Sanco Building” (provisional name).」

「In the leasing business, the Group began construction of the Second Nagoya Sanko Building (provisional name) in January 2022, while proceeding with the acquisition of land for an existing commercial facility in Yokkaichi, Mie Prefecture, and construction of for-sale rental apartments in Nagoya. In the business hotel business, it began providing contracted management services for apartment hotels, leveraging its expertise. While advancing its businesses, particularly in priority areas, it worked to improve earnings by reviewing capital investment and reducing expenses.」

「In the leasing business, the Group acquired land for an existing commercial facility in Yokkaichi, Mie Prefecture, and proceeded with the construction of 3 for-sale rental apartment properties in Nagoya. In the business hotel business, it also began providing contracted management services for apartment hotels, leveraging its expertise. At the same time, it focused on improving earnings by reviewing capital investment and reducing expenses while advancing its businesses, particularly in priority areas.」

「Opening of the Nagoya Sanko Building; commencement of work on the redevelopment of an existing leased property as the Second Nagoya Sanko Building (provisional name); promotion of for-sale rental apartment development; launch of high-sugar mini-tomato production; commencement of operations at all facilities of the Tsu Mega Solar Mori-no-Machi Nakase Bypass Power Plant」

「In October of the same year, construction of all facilities at the Tsu Mega Solar Mori-no-Machi Nakase Bypass Power Plant was completed and operations commenced. In the newly entered agricultural business, production of high-sugar mini-tomatoes using solar-powered environmental-control greenhouses began in August of the same year.」

「Against this backdrop, based on the medium-term management plan beginning in fiscal 2019, the group advanced its business, focusing on priority areas such as rental and environmental energy, to achieve further growth and strengthen a stable earnings base. Specific initiatives included opening the “Nagoya Sanco Building,” whose rebuilding had been under way in the Meieki area, in April this year. Of the 5 facilities comprising the “Tsu Mega Solar Mori-no-Machi Chusei Bypass Power Plant,” scheduled for completion in January 2021, construction of 4 facilities was completed and operations began sequentially from August this year. In the newly entered agriculture business, the group also began producing high-sugar-content mini tomatoes in August using solar-powered controlled-environment greenhouses.」

「In the leasing business, the Nagoya Sanko Building, whose redevelopment had been under way in the Meieki area, opened in April 2020, 2 months ahead of the original schedule. In August 2020, the company began redeveloping an existing leased property it owns near the building and decided to proceed with plans to open it as the Second Nagoya Sanko Building (provisional name) in spring 2024. In the environmental energy business, electricity sales revenue from the completed Minami-Ise Kozasa Mega Solar No. 2 Power Plant and other facilities contributed as planned, resulting in higher revenue. The company also accelerated progress on 5 mega-solar power plants under construction in Tsu, Mie Prefecture, with the aim of commencing operations during the year so they could be completed in fiscal 2021.」

「Advancement of the environmental energy and Sanco Inn businesses; commencement of operations at the Daibutsuyama Mega Solar Power Plant; commencement of operations at the Minami-Ise Kozasa Mega Solar No. 2 Power Plant; opening of Sanco Inn Kyoto Hachijoguchi; reopening of Sanco Inn Nagoya Shinkansenguchi after renovation; opening of Sanco Inn Grande Nagoya」

「Against this backdrop, based on a medium-term management plan beginning in fiscal 2019, the Group worked to strengthen its stable earnings base by expanding priority areas including the environmental energy, business hotel and leasing businesses. In the environmental energy business, it commenced operations at the Daibutsuyama Mega Solar Power Plant in Ise in April 2019 and steadily advanced construction of the Minami-Ise Kozasa Mega Solar No. 2 Power Plant, scheduled to begin operations in March 2020. In the business hotel and leasing businesses, it opened its 14th business hotel, Sanco Inn Kyoto Hachijoguchi, in September 2019. In addition, the Nagoya Sanko Building, which is scheduled to house the upmarket Sanco Inn Grande Nagoya brand, was scheduled to open on 24 April 2020.」

「Against this backdrop, based on the medium-term management plan beginning in fiscal 2019, the group is working to strengthen a stable earnings base by expanding priority areas, including the environmental energy, business hotel and rental businesses. Specific initiatives included commencing operations at the “Daibutsuyama Mega Solar Power Plant” in Ise in April this year and opening the group’s 14th business hotel, “Sanco Inn,” directly opposite the Hachijoguchi exit of Kyoto Station in September. Construction to rebuild the “Nagoya Sanco Building,” which is scheduled to house the higher-grade “Sanco Inn Grande Nagoya” brand, is also progressing smoothly, with opening scheduled by April 2020.」

「In the areas targeted as part of efforts to transform the business structure, the Daibutsuyama Mega-Solar Power Plant began operating in April this year, the tentatively named Sanco Inn Kyoto Hachijoguchi was completed ahead of its planned opening in September this year, and the redevelopment plan for Nagoya Sanco Building, targeted for opening in April 2020, is progressing smoothly.」