#Japan #Tokyo #Teikoku Real Estate #Sunken Corporation #Absorption Split

Teikoku Real Estate Expands Its Horizons

In a significant strategic move, Teikoku Real Estate Corporation, headquartered in the bustling Ginza area of Chuo City, Tokyo, has announced its recent success in acquiring the rental management division of Sunken Corporation through an absorption split. This transition took effect on September 1, 2026, following a resolution passed by the board of directors on July 25 of the same year.

Purpose of the Absorption Split

The rental management business, originally operated by Sunken Corporation, has manufactured a robust reputation within the real estate sector, focusing on rental management, leasing, construction repairs, and property sales since its inception. Sunken Corporation primarily serves the western Tokyo area, including regions like Chofu City, Setagaya Ward, and Kawasaki City, facilitating a trusted relationship between property owners and tenants.

The absorption split comes in light of ongoing discussions with Sunken Corporation about inheriting its management operations, aiming to ensure that the exceptional service continues for both owners and renters. With Sunken Corporation planning to focus on real estate sales and property ownership moving forward, Teikoku has committed to seamlessly integrating their rental management expertise and ensuring a smooth transition for all involved stakeholders.

A substantial portfolio of 434 rental units and 18 parking properties, totaling 167 spaces, will be transferred to Teikoku Real Estate’s management. The majority of these properties are low-rise apartments, which align seamlessly with Teikoku's management strengths, enabling them to utilize existing knowledge and repair proposals effectively.

This strategic business succession is expected to bolster the management infrastructure in the western metropolitan area, paving the way for Teikoku Real Estate's stable growth across the entire group.

Overview of the Absorption Split

Mode of Split: The transaction classifies Sunken Corporation as the splitting company, while Teikoku Real Estate stands as the successor entity in the absorption process.

Effective Date: This merger officially took effect on September 1, 2026.

Business Inherited: The core business being absorbed is the real estate rental management segment.

Rights and Obligations: Through this split, Teikoku will inherit all assets, liabilities, contracts, and other rights and responsibilities associated with the target business as per the absorption split agreement.

Details of the Split Business

Business Activities

• - Core Service: The real estate rental management business
• - Employees Transitioned: 2 employees as of July 27, 2026
• - Managed Units: 601 total units (including 434 rental housing units and 167 parking spaces as of July 27, 2026)

Overview of Sunken Corporation

• - Company Name: Sunken Corporation
• - Headquarters: 5-59-2 Nufu-ta, Chofu City, Tokyo
• - Representative: CEO Narinori Hosoda
• - Business Focus: Rental management, leasing, construction and repairs, property sales
• - Capital: 3 million yen
• - Establishment: Established in March 2014

About Teikoku Real Estate Corporation

Previously known as Architect Developer, the company rebranded in May 2026. Teikoku Real Estate is characterized by its motto, “Creating Beautiful Lifestyles from Homes,” and operates with an integrated approach to the development and management of rental apartments. Powered by data-driven management and a team of finance professionals alongside dedicated employees, Teikoku aims to deliver optimal value to owners, investors, and residents alike. The company sees its role as a long-term partner in creating sustainable living and asset management solutions, looking to innovate for future generations in the community.

For more information, visit Teikoku Real Estate.