Ki-Star Real Estate to absorb subsidiary, waive JPY 350m in claims

Ki-Star Real Estate Co., Ltd. has resolved to merge with its wholly-owned subsidiary, Hanamaru House Co., Ltd., effective April 1, 2026. This absorption-type merger, approved by Ki-Star Real Estate's board on September 18, 2025, will see Hanamaru House dissolved.

Prior to the merger, Ki-Star Real Estate will waive JPY 350 million in claims against Hanamaru House, specifically related to "affiliate deposits." This waiver, scheduled for March 31, 2026, aims to resolve the subsidiary's negative net worth.

As a wholly-owned subsidiary merger, no allocation of shares, money, or other assets will occur. Ki-Star Real Estate anticipates a negligible impact on its consolidated performance and a minor effect on individual performance from the claim waiver.