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Raysum Co., Ltd.

Our Business

Raysum conducts additional investment at a scale of a few billion yen for large-scale renovations coinciding with changes at buildings to attract distinguished tenants who seek to find unrivaled value at targeted sites. Furthermore, going forward, we hope to develop a business that solves societal issues and increases our rent covering capacity, and will start a company that conducts this business. For tenants, this new company will create promising real estate investment products.

These initiatives are being taken because we believe that to gain the trust of high net-worth customers, we must pursue future real estate investment returns instead of focusing on the past. In the Japanese market, where drastic change in demographics is seen, contradictions between the use and management of real estate stock are expanding. Raysum purchases these increasingly problematic properties, conducts improvement, and sells them to high net-worth families as investment properties.

Our Story

Our method for improving the value of real estate has three stages: 1) “Renovation,” 2) “Conversion,” and 3) “Creating Businesses for the Future.”

TThe first stage, “Renovation,” is where we conduct improvements to buildings and adapt them to modern lifestyles while maintaining their intended use to recover rents that have declined due to degradation over time. That is, if the building was an office, it would remain an office, and if it was a residence, it would remain a residence. While many players are currently involved in this field, this initiative is only a small party of Raysum’s operations. While renovations create value and cancel out degradation, we believe that many buildings with conventional uses such as residences and offices will most definitely turn to a declining trend in cash flow, especially when considering changes in society such as the decreasing birthrate and the aging population.

On the other hand, the second stage, “Conversion,” is Raysum’s mainstay where we create new value without being tied down by the original use of buildings. Responding to changes in society, the initiative realizes adding value that extends beyond common knowledge to attract tenants who have a high rent covering capacity. Specifically, this means conducting improvements for changing the use of buildings, for example, changing an office into a nursery, a residence into a lodging facility, or an urban gas station into a convenience store. Changing the use of buildings is not easy, especially in Japan, because the uses of existing buildings are strictly regulated by the Buildings Standards Act and the Fire Services Act. For example, because regulations for intensity, smoke emission, lighting, and evacuation routes differ by use, it is difficult to estimate how much time it might take to coordinate with multiple administrative authorities, which makes conversion an extremely difficult endeavor. While major firms with capital strength have stood out recently as they join the industry, Raysum’s ability to promptly ascertain profitability through knowhow and personnel acquired since its founding enables it to continue taking the lead in the added value market with changes to the use of buildings.

Moreover, the third stage, “Creating Businesses for the Future,” is where Raysum develops companies to conduct business that raises our rent covering capacity, that is, promising real estate content. In other words, as changes in society continue to develop going forward, if we are not able to find the appropriate tenants providing services that are sought around the world, we will develop businesses to provide such services. For example, in Japan where the number of youths is declining, we have already started to open community hostels in Kamakura and Fukuoka for young people from around the world where people can enjoy long-term stays and where the stage is set for visitors to establish connections with various people and cultures around Japan. We are also planning to open locations in Kyoto, Takamatsu, and Hiroshima.

In addition, to respond quickly to illnesses such as arrhythmia, hip abnormalities, and retinal detachments that are on the rise due to an aged population, we have started to develop advanced medical operation centers where the elderly can be treated and their health restored. The first of these was Tokyo Heart Rhythm Clinic founded in September 2016 that deals with arrhythmia and has grown to become a prominent hospital which boasts being top 10 in Japan in terms of number of surgeries conducted.

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As of March 31, 2018

  • 193 Employees
  • ¥44.3bnRevenue
  • 20.7% ROE

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