Notice Concerning Repair Plan of Construction Defects for Buildings Constructed by Leopalace21

April 5, 2024
Leopalace21

Leopalace21 Corporation (Headquarters: Nakano, Tokyo; President and CEO: Bunya Miyao; the “Company”) announced the repair plan progress as of the end of December 2023 and the plan up to the end of December 2024 when the Company aims to eliminate all obvious defects.
We sincerely apologize to all of our stakeholders, including tenants and apartment owners, for the concerns and inconvenience caused by the construction defects problem.

• 1. State of Repair Progress from September 2023 until March 2024

  The Company estimated the number of rooms requiring repairs to be approximately 26,000 as of the end of August 2023 when it announced the state of repair progress on September 29, 2023. The number of rooms decreased to approximately 21,100 as of the end of December 2023, namely the reduction of approximately 4,900, which compared with the target of 5,500 during the four months of September to December 2023.
  The reduction from January to March 2024 turned approximately 3,200.
  Although the Company’s investigation and repair have been progressed without delay when the tenants moved out from the rooms, the situation was different if the rooms were occupied by tenants. The shortfall against the target was attributed to the difficulty of obtaining the tenants agreement for investigation of the rooms for repair while they continued to live in the rooms. The Company has been asking for their cooperation for investigating the uninvestigated rooms by asking their permission to enter the rooms in writing, by SMS, or by telephone. There are, however, tenants who have not accepted the Company's request due to various reasons.

  
  

• 2. Further Repair Plan to Eliminate All Obvious Defects by the End of 2024

  The total number of rooms requiring repairs is estimated approximately 17,900 which is comprised of 14,659, a confirmed number of rooms with obvious defects, and a projection of approximately 3,250 which is calculated using the occurrence rate of obvious defect on the uninvestigated number of rooms out of 30,904. It is the number of rooms subtracting the rooms with repairs completed from those requiring repairs as of end of March 2024.
  Current issues include on the part of tenants, refusal to let the repair workers enter the room, leaving the request unanswered, disagreeing to move into a temporary housing or move to a new location; owners’ not accepting the repair method; complexity involving the owners, tenants and current management companies where the Company handed its management responsibility to new companies. The Company will continue to persistently see the tenants for negotiating for their cooperation, refer to the opinions of neutral third parties such as mediators in the event of difficulties, and make company-wide efforts to resolve the obvious defects by the end of 2024.