Leopalace21 said that it would complete the renovation work for the property that was found to be inadequately implemented by the end of the year, but due to lack of funds, the work was delayed by four years, and the target period was postponed by four years until the end of 2024. Showed the policy of aiming for completion.
Leopalace21, which was found to have a series of construction defects such as apartments, indicated that it would complete the renovation work of 195,000 units, which were pointed out as obvious defects, by the end of the year.
However, the construction has been significantly delayed due to the lack of funds due to the deterioration of management and the influence of the new coronavirus, and as of the 21st of this month, the construction was completed at 42,000 units, which is only about one-fifth. ..
For this reason, as a result of reviewing the plan with the support of a fund under the SoftBank Group, it has announced that it will postpone the target by four years and complete the renovation work by the end of 2024.
As of last month, the occupancy rate of properties managed by Leopalace21 was only 77%, which is below the profitable line.
Our policy is to prioritize the construction of vacant properties to increase the occupancy rate and stabilize management.
However, as the effects of the new coronavirus and labor shortages continue, it remains an issue whether repair work can be carried out steadily.