LeTech

Basic Information

Stock Code
3497
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Osaka Prefecture
Establishment Year
September 2000
Listing Year
October 2018
Official Website
https://www.letech-corp.net/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Star Mica Holdings, R Plan, LA Holdings, Land Net, Egrand, Mugen Estate, Vilot, Light W, property technologies, Kachitas, Sunfrontier Estate, Intorex, Media Soken

Overview

LeTech is a real estate tech company based in Osaka Prefecture, founded in 2000, that engages in a diverse range of activities from real estate sales and brokerage to renovation and rental management.

Current Situation

LeTech recorded net sales of approximately 14.8 billion yen and ordinary income of approximately 1.19 billion yen for the fiscal year ending July 2024, maintaining a stable revenue base. It specializes primarily in acquiring and renovating used real estate, with strengths in selling multi-purpose properties such as hotels and offices. Following its acquisition by Sumitomo Forestry as the parent company, under a stable capital structure, it is expanding its rental housing business while promoting efficiency in real estate management through IT utilization centered on the real estate tech platform "YANUSY". It operates bases in Osaka, Tokyo, and Kobe, providing regionally focused services. For future growth, it is also strengthening its voluntary foreclosure business and wealth management business using IT technology. It is advancing environmentally considerate renovations and value enhancement of housing, building a business model with sustainability and digitalization as twin pillars. While responding to changes in the market environment, it aims to expand its business through strengthened collaboration with the Sumitomo Forestry Group.

Trivia

Interesting Facts

  • Formerly known as Legal Real Estate Co., Ltd., strong in legal expertise among real estate companies.
  • Parent company Sumitomo Forestry is one of Japan's leading construction and timber companies.
  • Grown as a regionally focused company headquartered in Kita-ku, Osaka City.
  • YANUSY platform is gaining attention in the real estate tech market.
  • Differentiated by specializing in voluntary foreclosure business for financial institutions and lawyers.
  • Multi-area operations handling properties in Hokkaido and Kanto regions.
  • Small scale with 70 employees but boasts many highly specialized staff.
  • Diversified operations including renovation for commercial facilities and hotels.
  • Secured further management stability through 2025 TOB.
  • Expanding new wealth management business.

Hidden Connections

  • Holds advantageous position in construction material procurement through collaboration with Sumitomo Forestry Group.
  • Many referrals for voluntary foreclosure cases due to close ties with financial institutions and lawyers.
  • YANUSY is highly evaluated as an advanced platform specialized in real estate management.
  • Covers wide markets with sales bases in the three major urban areas: Osaka, Tokyo, and Kobe.
  • One of the pioneering companies in the industry focusing on used real estate renovation.
  • President Naoki Miyachi is a practitioner proficient in both law and real estate.
  • Introduced as a high-growth stock in FisCo research reports.
  • Engaging in utilization of tax incentives for YANUSY-related services.

Future Outlook

Growth Drivers

  • Expansion of renovation demand and activation of used housing market
  • Efficiency promotion through IT platforms like YANUSY
  • Strengthened development capabilities via capital alliance with Sumitomo Forestry
  • Rising social demand for environmentally considerate housing
  • Differentiation through specialized services in financial and legal fields
  • Growth promotion of real estate leasing market in capital and Kansai regions
  • Expansion of renovation demand in commercial facilities and hotels
  • Increased opportunities from policies promoting used housing utilization and subsidies
  • Further improvement in real estate management efficiency through digitalization
  • Flexible operations and rapid market response with small-team structure

Strategic Goals

  • Achieve top industry share for YANUSY platform
  • Double rental housing business sales (to approximately 10 billion yen scale)
  • Increase ratio of environmentally considerate renovations to over 70%
  • Expand new cases through strengthened ties in financial and legal fields
  • Enter local markets beyond Osaka, Tokyo, and Kobe
  • Expand to 100 employees and strengthen talent development
  • Grow to corporate scale exceeding 20 billion yen in sales
  • Establish sustainable management system and improve ESG ratings
  • Innovate real estate services using advanced IT technologies
  • Strengthen coexistence with regional communities and social contributions

Business Segments

Real Estate Brokerage for Financial Institutions

Overview
Real estate brokerage support for financial institutions' non-performing loans and loan debt issues.
Competitiveness
Specialized consulting proficient in both real estate and law
Customers
  • Banks
  • Credit unions
  • Leasing companies
  • Regional financial institutions
  • Housing loan-related companies
Products
  • Voluntary foreclosure support service
  • Non-performing loan processing consulting
  • Real estate brokerage for debt recovery
  • Asset appraisal and evaluation service

Real Estate Solutions for Lawyers / Law Firms

Overview
Provides brokerage and consulting for real estate-related cases tailored to legal experts.
Competitiveness
Risk-reduction services leveraging legal knowledge
Customers
  • Law firms
  • Judicial scriveners
  • Legal advisors
Products
  • Voluntary foreclosure case consulting
  • Real estate asset management support service
  • Legal advice collaboration service

Services for Real Estate Developers / Managers

Overview
Supports efficiency for real estate development and management companies through IT and practical expertise.
Competitiveness
Comprehensive management through IT platform integration
Customers
  • Real estate development companies
  • Management companies
  • Rental housing owners
Products
  • Renovation construction management
  • Rental management platform
  • Asset value enhancement service

Platform for Rental Housing Owners

Overview
Provides IT infrastructure to maximize owner revenue and reduce risks.
Competitiveness
High-precision management functions utilizing diverse data
Customers
  • Individual owners
  • Corporate owners
  • Asset management companies
Products
  • YANUSY Rental Management System
  • Risk management tools
  • Revenue simulation service

Business Support for Construction / Reform Contractors

Overview
Provides IT support for business efficiency of construction contractors.
Competitiveness
Specialized support integrating real estate industry knowledge
Customers
  • Architectural design companies
  • Reform contractors
  • Construction companies
Products
  • Renovation design support tools
  • Construction management system
  • Material procurement support

Consulting for Real Estate Brokerage Companies

Overview
Services to improve efficiency and closing rates for real estate brokerage.
Competitiveness
Industry-specific IT tools and sales know-how
Customers
  • Local real estate brokers
  • Major real estate agencies
  • Sales agency service providers
Products
  • Market analysis tools
  • Sales support system
  • Contract management service

Support for Real Estate Investment Trusts / Funds

Overview
Supports asset management and risk management for investment corporations.
Competitiveness
Integration of real estate market information and IT analysis
Customers
  • REIT management companies
  • Real estate fund managers
  • Investment advisory companies
Products
  • Asset portfolio analysis
  • Risk management tools
  • Market value evaluation reports

Solutions for Commercial Facility / Office Building Managers

Overview
IT services to streamline tenant management and facility operations.
Competitiveness
Multi-functional, user-friendly management platform
Customers
  • Building management companies
  • Commercial facility operators
  • Tenant managers
Products
  • Tenant recruitment management system
  • Facility maintenance management tools
  • Customer response support

Support for Local Governments / Public Project Operators

Overview
Provides public support for regional revitalization and real estate asset utilization.
Competitiveness
Proposals and implementation support specialized in regional issues
Customers
  • Local governments
  • Urban development corporations
  • Public facility operators
Products
  • Vacant house countermeasures consulting
  • Real estate management support
  • Regional revitalization planning

Partner Services for IT / Real Estate Tech Companies

Overview
Supports creation of new technologies and services through strengthened collaboration with IT companies.
Competitiveness
Technical collaboration leveraging real estate industry expertise
Customers
  • Real estate tech startups
  • Software development companies
  • System integrators
Products
  • Platform integration API
  • Joint development support
  • Market data provision

Real Estate Knowledge Services for Education / Training Institutions

Overview
Education and training support services for real estate industry professionals.
Competitiveness
Provision of latest industry information and practical know-how
Customers
  • Universities
  • Vocational schools
  • Corporate training departments
Products
  • Real estate practical courses
  • Industry research materials
  • Practical training programs

Environment / Energy-Saving Solutions Business

Overview
Sustainable real estate management support aimed at reducing environmental impact.
Competitiveness
Provision of fusion between environmental technology and real estate knowledge
Customers
  • Condominium owners
  • Corporate building managers
  • Developers
Products
  • Energy-saving equipment introduction consulting
  • Environmentally considerate renovation
  • Energy management system

Competitive Advantage

Strengths

  • Specialization in used property renovation
  • High management efficiency through IT utilization
  • Strong capital base (Sumitomo Forestry Group)
  • Diverse business portfolio
  • Regional service network
  • Abundant legal knowledge and ties with financial institutions
  • Deployment of proprietary platform YANUSY
  • Specialized personnel and agility despite small scale
  • Flexible service design responsive to customer needs
  • Promotion of environmentally considerate renovation

Competitive Advantages

  • High presence and track record in the used real estate renovation market
  • Financial stability and expansion potential backed by Sumitomo Forestry
  • Differentiation through specialized services for financial institutions and legal experts
  • Rental management efficiency via IT platforms like YANUSY
  • Strong network and trust with local small owners
  • Risk diversification and customer base expansion through multi-regional operations
  • Convenience enhancement via integrated services from leasing to sales
  • Focus on sustainability through environmentally responsive renovation proposals
  • Consulting capabilities proficient in legal risks
  • More flexible and specialized service response compared to competitors

Threats

  • Revenue fluctuation risk due to real estate market economic swings
  • Impact of funding environment from financial policy changes
  • Intensifying market competition in appropriate pricing for used properties
  • Potential cost increases from rising construction material prices
  • Risks from changes in housing policies or legal regulations
  • Competition in differentiation from competitors' IT utilization and service diversification
  • Population decline and changes in urban residential demand
  • Risk of damage to real estate assets from natural disasters
  • Regional disparities in rental demand and vacancy risks
  • Impact from changes in parent company's management policies

Innovations

2021: Launch of Real Estate Platform YANUSY

Overview
Developed and launched an integrated IT management platform for real estate owners.
Impact
Significantly improved rental management efficiency and succeeded in enhancing customer acquisition.

2023: Development of Environmentally Considerate Renovation Technology

Overview
Expanded renovation products utilizing energy-saving equipment and low-environmental-impact materials.
Impact
Acquired environmentally conscious customers and improved market evaluation.

2022: Strengthening of Voluntary Foreclosure and Real Estate Consulting

Overview
Enhanced consulting for financial and legal institutions and established specialized teams for service improvement.
Impact
Contributed to increased transaction volume and improved customer trust.

2024: YANUSY Mobile App Release

Overview
Released smartphone app enhancing property management and information linkage for improved convenience.
Impact
Succeeded in improving user satisfaction and increasing users.

2020: Introduction of AI-Based Pricing Appraisal System

Overview
Introduced in-house system for instant AI appraisal of used real estate prices.
Impact
Contributed to improved appraisal accuracy and faster brokerage speed.

Sustainability

  • Promotion of energy-saving renovation products
  • Reduction of waste and promotion of resource recycling
  • Active adoption of environmentally considerate materials
  • Participation in environmental protection activities through collaboration with local communities
  • Paper resource reduction and business efficiency through digitalization