Tsukuruba Settles Real Estate Financing Deal for Subsidiary

TOKYO, Jul 31 (Pulse News Wire) – TSUKURUBA Inc. (2978.T) announced plans to finalize a secured loan agreement with Chiba Bank for its subsidiary, Tsukuruba Boxes Co., Ltd., on July 31, 2026.

The purpose of the agreement is to secure more stable funding for the purchase of condominium units for resale. The total principal limit of the loan is ¥500 million. The transaction will last until August 03, 2026. Under the terms of the agreement, Tsukuruba Boxes will provide collateral in the form of a mortgage on the targeted properties, securing the lender as the sole first-priority lienholder. Additionally, TSUKURUBA Inc. will act as a guarantor for the loan. Tsukuruba Boxes, headquartered at Tokyo, Shibuya Ku Ebisu Minami San Choume 7-10 Grand Maison Daikanyama 304, operates in the buy-and-resell business of pre-owned homes.

Its capital is ¥92 million. The parent company, TSUKURUBA Inc., holds a 100% stake in Tsukuruba Boxes. The agreement includes several financial covenants. One stipulation requires maintaining the consolidated net assets of TSUKURUBA Inc. at least 70% higher than the larger amount of either the fiscal year ending July 2025 or the previous fiscal year's closing balance. Another condition mandates avoiding consecutive negative ordinary profits in the consolidated income statements of TSUKURUBA Inc. Furthermore, the ratio of inventory real estate and work-in-progress sales real estate to annual revenue must not exceed eight in the standalone financial statements of Tsukuruba Boxes.

According to the company, the execution of this financing deal will not impact the earnings forecast for the fiscal year ending July 2026.