Second share house company files for bankruptcy

In the wake of a widening investment loan fraud scandal, a second share house company in Tokyo has filed for bankruptcy.

The company operated by developing and selling share houses to individual investors and then managing the properties on behalf of the buyers, offering high yields and guaranteed rents. However, as was the case with the other defunct share house operator that filed for bankruptcy last month, the vacancy rates of the share houses was higher than forecast and the company was not able to make the guaranteed rent payments to investors.Read more