IMAP Japan advises RIZAP GROUP on the sale of its non-core homebuilding subsidiary
IMAP is pleased to announce that Japanese listed RIZAP GROUP, Inc., through its subsidiary RIZAP INVESTMENT Co. Ltd., has sold all shares of its home building subsidiary SOHKEN HOMES CO., LTD., to real estate company MORIMOTO Co., Ltd.
Headquartered in Tokyo, RIZAP GROUP’s core business is the operation of a chain of fitness clubs named “RIZAP”. The company has expanded through growth of its core business in conjunction with aggressive corporate acquisitions of ailing companies in recent years. It is now restructuring its business to focus on its newly introduced convenience gym “chocoZAP”, which offers more affordable pricing, and a more casual and accessible environment to a wider range of customers. The number of “chocoZAP” locations is rapidly increasing nationwide.
SOHKEN HOMES, established in 1994, is a local seller of detached houses and builder of custom-built houses. It was acquired by RIZAP GROUP in September 2018. As a luxury wooden condominium housing manufacturer, it has been developing luxury wooden houses specializing in high-end residential areas. Its turnover is USD 42.9 million (JPY 6.2 billion). The acquirer, MORIMOTO, is a local based developer and manager of real estate properties.
The team from Pinnacle Inc. - IMAP Japan, led by Ikuo Yasuda?and Tomohiko Shibata, exclusively advised RIZAP GROUP throughout the entire process. The team approached numerous candidates in a limited time period and ultimately led the deal to success with a price that was acceptable to the seller despite tough market conditions (rising costs of land and building materials, shortage of construction personnel, etc.).