Notice Regarding the Conclusion of a Business Transfer Agreement with Sassho Bussan Co., Ltd. and Sassho Shoji Co., Ltd. by HOEI CONSTRUCTION INC.
Notice Regarding the Conclusion of a Business Transfer Agreement with Sassho Bussan Co., Ltd. and Sassho Shoji Co., Ltd. by HOEI CONSTRUCTION INC.
— LOGOS HOLDINGS Aims to Prevent Stagnation in the Sapporo Real Estate Market and Ensure the Completion of Ongoing Projects —
LOGOS HOLDINGS INC. (the “Company”) hereby announces that it has decided to acquire the detached housing business of Sassho Bussan Co., Ltd. and Sassho Shoji Co., Ltd. (collectively, “Sassho Bussan”) through its consolidated subsidiary, HOEI CONSTRUCTION INC. (“HOEI CONSTRUCTION”).
The Company’s Board of Directors resolved this matter on April 24, 2026, and the business transfer agreement was concluded on the same date.
Background and Objectives of the Business Acquisition
Since its founding in 1965, Sassho Bussan has developed more than 100 detached houses annually, primarily in the Sapporo area. However, the company faced significant challenges following the April 2025 amendment to the Building Standards Act, which curtailed the “No. 4 special exception” (simplified building confirmation process). This led to longer-than-expected review periods for building confirmation applications, resulting in a decrease in new construction starts. Furthermore, sales volume declined due to a reaction to the surge in demand prior to the legal changes and rising mortgage interest rates. Combined with soaring costs for construction materials and subcontracting, the company’s profitability and cash flow deteriorated significantly. Consequently, Sassho Bussan filed for civil rehabilitation proceedings with the Sapporo District Court on March 23, 2026.
Currently, there is a total inventory of 125 units owned by Sassho Bussan in Sapporo, including 50 unfinished properties. Leaving these projects abandoned could lead to stagnation in the local real estate market.
As a group with a leading market share in the Hokkaido and Sapporo areas, LOGOS HOLDINGS has decided to succeed this business to fulfill its social responsibility (its mission as a sponsor). By leveraging the Group’s extensive sales track record and construction capabilities, we aim to complete the ongoing projects, maximize asset value, and achieve the swift revitalization of the business.
Overview of the Business Acquisition
| Item | Description |
| Acquiring Company | HOEI CONSTRUCTION INC. |
| Scope of Acquisition | Detached housing business held by Sassho Bussan |
| Acquired Assets | Real estate inventory (22 completed units, 50 unfinished units, 53 land parcels, 1 custom-built home) |
| Assumed Liabilities | None (Liabilities are not included in this transfer) |
| Transfer Price | 1,600 million yen (Settled in cash) |
Profile of the Counterparties
| Item | Sassho Bussan Co., Ltd. | Sassho Shoji Co., Ltd. |
| Address | 13-6-6 Minami 7-jo Nishi 1-chome, Chuo-ku, Sapporo, Hokkaido | 1-21 Kawakita 1-jo 3-chome, Shiroishi-ku, Sapporo, Hokkaido |
| Title and Name of Representative | Masayuki Akita, President and Representative Director | Masayuki Akita, President and Representative Director |
| Business Description | Detached housing business | Wholesale of construction materials |
| Capital | 70 million yen | 10 million yen |
| Date of Establishment | September 13, 1965 | August 30, 1975 |
For inquiries regarding this matter, please contact:
LOGOS HOLDINGS INC.