Zero Japan is acquiring Kyoei Construction Real Estate to enhance operational efficiency and consolidate its real estate services.

Target Information

Zero Japan Co., Ltd. (ゼロジャパン) operates a retail business along with a range of real estate services. The company is in the process of acquiring Kyoei Construction Real Estate (京栄建設不動産), located in Nerima, Tokyo, which specializes in renovation contracting and property leasing. This strategic acquisition aims to establish a unified construction framework within the Zero Japan group, thereby reducing outsourcing costs while also enhancing agility and quality control.

Kyoei Construction Real Estate reported a revenue of 179 million yen, an operating profit of -3 million yen, and net assets amounting to 295 million yen for the fiscal year ending in September 2024. The acquisition is set to include the purchase of all shares of Kyoei Construction Real Estate for a total consideration of 277 million yen, with completion expected in mid-December 2025.

Industry Overview

Japan's real estate sector, particularly in urban areas like Tokyo, has seen significant transformations in recent years. Following a trend of heightened demand for both residential and commercial properties, businesses