Rakuten LIFULL STAY and Showa Leasing in Collaboration to Provide Financing Support for the Development of Rakuten STAY Accommodation Facilities

Tokyo, Japan, September 6, 2018 - Rakuten LIFULL STAY, Inc., a Rakuten Group company providing vacation rental services, and Showa Leasing Co., Ltd., a general leasing company of the Shinsei Bank Group, today announced that the two companies have agreed to enter into a business collaboration to provide financing support for the development of Rakuten STAY accommodation facilities.

The main objective of this business collaboration is to develop accommodation facilities for Rakuten STAY, which is a branding and operational support service for vacation rentals and shared accommodation provided by Rakuten LIFULL STAY. Going forward, the limited liability company to be established (hereafter, “the Fund”) will be provided with financing support by Showa Leasing Co., Ltd., Bridge C Capital, and Silverbacks Principal Inc. in the form of silent partnership investment conducted through an investment limited partnership. The Fund will develop and have ownership the respective Rakuten STAY accommodation facilities, and management and operations will be entrusted to Rakuten LIFULL STAY. The establishment of a program for this scheme by Showa Leasing is anticipated to promote the development of accommodation facilities, by enabling the stable procurement of funds for the development of Rakuten STAY accommodation facilities and the commercialization of a wide range of assets. Bridge C Capital will be responsible for the asset management work of the Fund.  

The Fund is first scheduled to provide financing for the development of Rakuten STAY HOUSE×WILL STYLE^*1 detached house accommodation jointly developed by Rakuten LIFULL STAY and HyAS & Co. Inc. These facilities will be operated as a shared accommodation in accordance with the Inns and Hotels Act, allowing guests travelling in a group, with family or friends to spend valuable time together in the same space. Compared to the construction of conventional hotels, which calls for a sizable plot of land, this development is characterized by the ability to develop facilities efficiently in various places, and to create new demand for accommodation properties in various regions. There are currently plans to develop facilities in locations such as Izumo City in Shimane Prefecture and Nasu District in Tochigi Prefecture. Other developments will also take place mainly in regional cities and towns going forward. 

Rakuten LIFULL STAY launched the Rakuten STAY service in November last year. To date, as sub-brands of the service it has established Rakuten STAY HOUSE^*2 in May, and the first the Rakuten STAY HOSTEL^*3 in June this year. Moving forward, it will continue to utilize financing support through the same scheme to develop the various sub-brands for different types of facilities, and to provide operational support services. Showa Leasing will also continue to provide support for the development of Rakuten STAY facilities by offering a stable source of funding.

Going forward, the two companies will promote the development of accommodation facilities through this business collaboration, and contribute to regional revitalization and the development of the accommodation market.

*1 Related press release　URL： https://global.rakuten.com/corp/news/press/2017/1215_01.html
*2 Related press release　URL： https://corp.rakuten.co.jp/news/update/2018/0528_02.html
*3 Related press release　URL： https://global.rakuten.com/corp/news/press/2018/0606_02.html

Overview of the investment scheme

*LP investment: Investment as limited partner
*GP investment: Investment as general partner

About Rakuten STAY
Rakuten STAY is a full-service operational support provider in which Rakuten loans the Rakuten STAY brand to prospective businesses and individuals who wish to operate vacation rentals and shared accommodation. Rakuten LIFULL STAY oversees operations from initial consultations, to construction and cleaning in cooperation with contracting companies. Users staying at Rakuten STAY facilities are able to use facilities and amenities, and receive extra services based on a uniform concept wherever they stay. Rakuten STAY aims to expand the accommodation and vacation rental market by creating an environment where customers who have never used vacation rentals can use them and shared accommodations with peace of mind.

About Showa Leasing Co., Ltd.
Showa Leasing Co., Ltd. was established in 1969. Since then, it has continued to receive the support and patronage of customers across Japan as a general leasing company. In recent years, by forging alliances with companies that have a strong expertise in various fields, it has been promoting businesses that specialize in certain areas or markets. In its three-year medium-term management plan launched in FY2016, it set out “new fields/growth industry businesses” as one of its strategic fields. With the aim of further revitalizing the Japanese economy and contributing to resolving social issues, it is collaborating with the Shinsei Bank Group and other partner companies to develop services that offer greater convenience to its customers. This partnership forms a part of such initiatives, and the company will continue to actively pursue the growing inbound demand and contribute to regional revitalization.

About Bridge C Capital
Bridge C Capital brings together experts with a wealth of experience in the fields of investment, real estate, and accounting and tax matters, in order to provide investors with the optimal investment opportunities. It is also already implementing the securitization of hospitals and welfare facilities as an investment toward the resolution of social issues in line with the policies of the national and local governments as well as the needs of society.

About Silverbacks Principal Inc.
Silverbacks Principal Inc. defines its main business domains as food services, education, tourism and leisure, and the accompanying sectors in Japan and overseas. Its management team is made up of professionals from each specialized field, and it engages in its corporate activities with a focus on activities that create added value while continuously pursuing measures to improve productivity.

Showa Leasing Co., Ltd.
Address: Koraku Mori Building, 1-4-14 Koraku, Bunkyo-ku, Tokyo
Representative: Representative Director and President, Kiyohiro Kiyotani
Details of business: General leasing
Date of establishment: April 2, 1969
Website: https://www.s-l.co.jp/

Rakuten LIFULL STAY, Inc.
Address: Otemachi Financial City Grand Cube 3F, 1-9-2 Otemachi, Chiyoda-ku, Tokyo
Representative: Representative Director Munekatsu Ota
Details of business: Providing services related to vacation rental platform, etc.
Date of establishment: March 2017
Website: https://www.rakuten-lifull-stay.co.jp/