Rakuten LIFULL STAY and LIFULL Social Funding Collaborate to Provide Financing Support for the Development of Rakuten STAY Accommodation Facilities
Tokyo, November 30, 2018 – Rakuten LIFULL STAY, Inc., a Rakuten Group company providing vacation ren tal services, and LIFULL Social Funding Co., Ltd. (LSF), a subsidiary of LIFULL Co., Ltd. (LIFULL), provider of housing and life information services including the real estate information site LIFULL HOME'S, which boasts the largest number of property listings in Japan, today announced that the two companies have agreed to enter into a business collaboration to provide financing support for the development of Rakuten STAY accommodation facilities.
The main aim of the business collaboration is to develop accommodation facilities for Rakuten STAY, the branding and operational support service for vacation rentals and shared accommodation provided by Rakuten LIFULL STAY. Through the collaboration, the two companies will promote the development of accommodation facilities in various regions by leveraging the knowledge of the hotel business and vacation rental services possessed by Rakuten LIFULL STAY and the knowledge of funding and fund management held by LSF. The business collaboration will utilize the financing support from the LIFULL Regional Vitalization Investment Limited Partnership I (hereinafter referred to as the “LIFULL Regional Vitalization Fund”)*1 established by LSF on November 21 this year.
The LIFULL Regional Vitalization Fund was established by LSF, and LIFULL is participating in the fund as an investor (limited partner). The fund makes use of and invests in currently unused properties in Japan, and converts them into vacation rental facilities or shared accommodation, such as detached house accommodation, glamping tents, hostels, and capsule hotels, as well as hotels, tourist facilities, dining facilities, and farm management facilities. By investing in these properties as businesses that contribute to local development, the fund has created a mechanism for regional vitalization. Financial institutions, companies and other investors may provide financial support required for regional vitalization by investing in the LIFULL Regional Vitalization Fund as a limited partner.
Rakuten LIFULL STAY launched the Rakuten STAY service in November 2017. To date, as sub-brands of the service, it has established Rakuten STAY HOUSE*2 in May, and the first Rakuten STAY HOSTEL*3 in June of this year. Moving forward, it will continue to utilize financial support provided through this collaboration to expand the sub-brands for different types of facilities, and to provide operational support services.
Through the development of accommodation facilities based on this business collaboration, Rakuten LIFULL STAY and LSF will contribute to the development of the accommodation market and regional vitalization.
*1 Related press release URL：https://lifull.com/news/12899/ (Japanese page)
*2 Related press release URL：https://corp.rakuten.co.jp/news/update/2018/0528_02.html (Japanese page)
*3 Related press release URL：https://global.rakuten.com/corp/news/press/2018/0606_02.html (English page)
About the LIFULL Regional Vitalization Fund
The LIFULL Regional Vitalization Fund makes use of and invests in currently unused properties in Japan, and converts them into vacation rental facilities or shared accommodation, such as detached house accommodation, glamping tents, hostels, and capsule hotels, as well as hotels, tourist facilities, dining facilities, and farm management facilities. By investing in these properties as businesses that contribute to local development, the fund has created a mechanism for regional vitalization. Financial institutions, companies and other investors may provide financial support required for regional vitalization by investing in the LIFULL Regional Vitalization Fund as a limited partner.
Fund name: LIFULL Regional Vitalization Investment Limited Partnership I
Investment targets: Businesses judged to be able to contribute to regional vitalization, such as utilizing properties in idle, and achieve target yield of this fund, as well as investment securities related to the companies implementing the said business.
Fund size: 3-5 billion yen (planned)
About Rakuten STAY
Rakuten STAY is a full-service operational support provider in which Rakuten loans the Rakuten STAY brand to both individual and corporate real-estate business owners. Rakuten LIFULL STAY oversees operations from initial consultations to construction, sales and income management, and cleaning in cooperation with contracting companies. Users staying at Rakuten STAY facilities are able to use facilities and amenities, and receive extra services based on a uniform concept wherever they stay. Rakuten STAY aims to expand the accommodation and vacation rental market by creating an environment where customers who have never used vacation rentals or shared accommodations can use them with peace of mind.
About LIFULL Social Funding Co., Ltd.
LIFULL Social Funding Co., Ltd. engages in the fundraising consulting business and provides loan services for LIFULL HOME’S members, in addition to operating Japan’s largest donation-based crowdfunding site JAPANGIVING. Since joining the LIFULL Group, the company has commenced preparation for launching a lending-based crowdfunding business for real-estate business operators, in addition to operating the “LIFULL Regional Vitalization Fund”. LIFULL Social Funding aims to provide a one-stop platform covering everything from donation to investment in order to accommodate the diverse needs of investors.
Address: Urbannet Kojimachi Building 7F, 1-6-2 Kojimachi, Chiyoda-ku, Tokyo
Representative: CEO Daigo Sato
Details of business: Operation of donation-based crowdfunding site JAPANGIVING, fund raising consulting, and financial business.
Date of establishment: October 2012
Rakuten LIFULL STAY, Inc.
Address: 1-10-1 Yuraku-cho, Chiyoda-ku, Tokyo
Representative: Representative Director Munekatsu Ota
Details of business: Providing services related to its vacation rental platform, etc.
Date of establishment: March 2017