■Company Overview
1. Company Overview
Relo Group ＜8876＞ provides welfare outsourcing services for a wide range of companies, from small to medium to large enterprises. With the mission of “supporting operations other than the main business so that Japanese companies can concentrate on their main business in order to compete in the world,” “supporting the global expansion of Japanese companies so that they can demonstrate their true samurai power,” and “supporting the major transformation of Japan that is about to begin,” develop relocation businesses that comprehensively support the movement of people of Japanese companies at home and abroad, welfare businesses that support employees' lives and work styles, and tourism businesses that contract hotel operations and improve facility value It's there. The relocation business consists of a leased company housing management business that performs management of a company's leased company housing using a unique “sublease method,” a rental management business that performs management etc. of rental properties in major domestic cities, and an overseas assignment support business that provides total support for complicated operations from overseas assignment to return. Currently, we are in the final phase of the long-term plan “Second Founding,” and the medium-term management plan “New Third Olympic Operation” is progressing smoothly.
Continue business expansion through M&A, etc.
2. HISTORY
The company was established in 1967 for the purpose of construction work such as new construction, extension, and renovation of housing for workers, and construction of interior work. In 1978, it became a designated contractor for the maintenance of Mitsui & Co. ＜8031＞ company housing, dormitories, etc., and in 1979, Mitsui & Co. began managing homeless homes for domestic and overseas transferees, and first started an “home management system for transferred workers” in Japan in 1984. Home management can be said to be the company's ancestral business. Also, in 1989, it expanded into the United States in collaboration with the Mitsui & Co. Group to facilitate Japanese transferees and business travelers, and in 1993, a welfare agency service “welfare club,” which comprehensively supports corporate welfare, was launched. Shares were registered with the Japan Securities Dealers Association in 1999 (currently listed on the Tokyo Stock Exchange Prime Market), full outsourcing of company housing operations through subleasing began in 2002, and then entered the rental management business by M&A with Toto Co., Ltd. in 2010, and business expansion continues due to M&A and new business development.
■Business description
The company supports global expansion by supporting operations other than the company's main business. There are 3 businesses: leased company housing management business, rental management business, relocation business composed of overseas assignment support business, welfare business, and tourism business. Each business has its own strengths, and they are demonstrating synergy by utilizing each other's strengths. It also has characteristics as a stock business where profits accumulate year by year, and as described later, growth as an enterprise is promoted by accumulating stock such as the number of company housing management units, rental management units, and welfare business members. Furthermore, by utilizing such a business foundation, they are also developing finance-related businesses, etc.
Responsible for leased company housing, rental management, and overseas assignments
1. Relocation business
(1) Rental company housing management business
The leased company housing management business is a service that receives outsourcing of leased company housing management by an enterprise and performs it on your behalf. The main business is rent remittance to landlords, contract management, move-out negotiations, security deposit exchange, trouble handling, etc., and a fixed fee per house is collected from companies as compensation. In large enterprises with 1,000 or more units managed by leased company housing, there is a growing tendency to outsource the work of indirect departments, including company housing management, to improve work efficiency. In addition, as services related to leased company housing management, they also provide housing arrangements, moving arrangements, and dispatching managers to company-owned company housing during transfers and relocations.
There are two types of company housing: company-owned company housing and leased company housing, where employees live in properties owned by the company, mainly large companies, and leased company housing allows employees to move into general rental properties borrowed from real estate agents. In Japan, after the collapse of the asset bubble, a switch from company-owned company housing to leased company housing was promoted as management efficiency was promoted. However, when it comes to leased company housing management services, it is an “agency system” where operations are outsourced from companies and rent remittance agents and contract management are performed, and many complicated tasks remained within the company. As a latecomer to leased company housing management services, the company developed a unique full outsourcing service called the “sublease method,” which undertakes not only remittance agency and contract management, but also all complicated operations related to company housing, such as negotiations at the time of moving out, and consulting on company housing regulations from property contracts, and solved complicated operations left behind within companies that other companies in the same industry cannot solve.
Since the start of the service in 2002, the number of managed units has been built up using high-value-added services using the “sublease method,” but in 2013, it was well received by starting to provide customized services at low cost while keeping the high value-added service unchanged, and achieved the highest growth in the industry. For this reason, the number of leased company housing units managed by the company is ranked first in the market despite being a latecomer. Also, in 3rd place or lower, companies whose main business is the real estate business are often developing with ancillary positions, and the switch from such companies to companies is progressing steadily. Currently, labor shortages within Japan have become serious, so the need to outsource leased company housing is increasing more and more, which is a tailwind for the company.
As a service related to the leased company housing management business, there is an ancestral home management service. In away home management, properties of assignees with their own homes are taken care of, and in addition to recruiting tenants in the general market as rental properties during the assignment period, complicated tasks such as collection management and contract management are performed on behalf of them, and fixed management fees are collected from property owners. In addition, in response to transfer/relocation needs that occur every year, various related services are being developed, such as the system “Relonet,” which can arrange housing and make moving arrangements on the internet, and the serviced rental “Lilo furnished rental,” which can be used as leased company housing after leasing and installing furniture and home appliances in any room.
(Written by FISCO Visiting Analyst Miyata Hitomitsu)
