KLC constructs buildings on the client's land and leases them to the client. The client retains a purchase option on the buildings.

The main purpose of this scheme is to finance the development of a client's land in the form of a lease, thereby allocating the initial cost burden over the long term. With a purchase option, the client enjoys the benefits of ownership and lease financing.

KLC leases the client's land. Upon completion, the facilities are leased to the client.

When the lease term expires, the client has the option to purchase the facilities at their residual value or to renew the lease.

Reduction of initial cost burden --- leasing permits the client to spread the cost over the long term, thereby significantly reducing the initial cost burden. Purchase option --- upon expiration of the original lease term, the client has the option to purchase the facilities or to renew the lease. Off balance sheet --- as an operating lease, the payments may be expensed and no debt appears on the client's balance sheets.

Plant (Ibaraki)	Technical Center (Aichi)