SYLA Technologies Has Established “Japan Real Estate Crowdfunding Association” as Co-chair

SYLA Technologies Co., Ltd. (Head office: Shibuya-ku, Tokyo; CEO: Hiroyuki Sugimoto; NASDAQ: SYT) (“SYLA” or “the Company”) is pleased to announce the establishment of the Japan Real Estate Crowdfunding Association, where the Company serves as founder and co-chair. This Association consists of a number of leading players in the Japanese real estate crowdfunding sector. The inaugural general meeting for the Japan Real Estate Crowdfunding Association was convened on Wednesday, November 29, 2023. Going forward, the Association is dedicated to crafting self-regulatory guidelines and advocating policy recommendations to pertinent ministries and agencies in response to evolving trends in the real estate investment market. The Association’s objectives extend to investors protection, sound development of the market, and ultimately contributing to Japan’s economic growth through addressing challenges such as revitalizing local communities.

 Association Background
Amidst the era of ultra-low interest rates and the imperative shift from savings to investment, real estate crowdfunding is attracting attention as a new investment style. Following the 2017 revision of the Act on Specified Joint Real Estate Ventures (FTK Act), the sector has experienced substantial growth, both in market size and participant numbers under the guidance of a national policy led by the Ministry of Land, Infrastructure, Transport and Tourism.

(In the fiscal year 2022, the amount of real estate crowdfunding offerings reached 60.43 billion yen (2.61 times greater than the previous year) and the number of projects was 419 (1.85 times greater than the previous year)) *.
* Source: "Handbook for Promotion of Utilization of Real Estate Specified Joint Enterprises (FTK)" by Ministry of Land, Infrastructure, Transport and Tourism

Real estate crowdfunding has a strong affinity with technology and requires proactive adaptation to evolving market dynamics. As the sector witnesses a surge in new participants, the absence of adequate assurances regarding operator quality has given rise to conflicts between operators and investors, casting a shadow on the industry's reputation. To address this, the private sector must proactively spearhead rule revisions and ethical considerations.

Despite these challenges, real estate crowdfunding holds the opportunities to contribute to solving issues in local communities. This potential lies in effectively repurposing vacant and underutilized real estate and fostering the development of mixed-use facilities within local communities. To unlock this potential, the government and the industry need to collaborate in crafting a robust system that generates a virtuous cycle. Real estate crowdfunding is also expected to play a pivotal role in promoting the transition from savings to investment through financial education.

 Association Features
The Association is comprised of a number of prominent entities within the real estate crowdfunding market. It will serve as an intermediary between policymakers and businesses by gathering information on the industry-related issues and formulating and submitting informed opinions to shape policies.

Three Pillars for the Future:
1. Contribution to regional revitalization
 Utilize real estate crowdfunding as a catalyst to address local challenges, specifically focusing on the effective utilization of vacant and underutilized real estate
 Generate a virtuous cycle of FTK and local revitalization by actively promoting partnerships with various local governments
2. Formulation of self-regulatory rules
 Institute self-regulatory measures to safeguard investors and ensure the healthy development of the market in line with the market expansion
 Establish a secure foundation for existing as well as new businesses to enter the market
3. Building momentum from savings to investment
 Contribute to asset building in preparation for the era of a 100-year life by appropriately promoting real estate crowdfunding, which allows for small-lot, small-amount investments
 Serve as a valuable resource and gateway for financial education, contributing to nationwide improvements in financial literacy

 Inaugural General Meeting for the Association
The inaugural general meeting was honored by the presence of distinguished guests from the Diet, along with officials from the Cabinet Office, Ministry of Land, Infrastructure, Transport and Tourism, and Financial Services Agency. At the beginning of the meeting, Mr. Seiji Kihara, former Deputy Chief Cabinet Secretary, Acting Secretary-General of the Liberal Democratic Party, and Member of the House of Representatives, along with Mr. Takuma Miyaji, former Parliamentary Secretary of the Cabinet Office and Member of the House of Representatives, and many other attending Diet members extended their cordial congratulations and expressed their expectations for the Association.

Diet Members who attended the meeting
Mr. Kenichiro Ueno, Member of the House of Representatives
Mr. Takao Ochi, Member of the House of Representatives
Mr. Junichi Kanda, Member of the House of Representatives
Mr. Seiji Kihara, Member of the House of Representatives
Mr. Akihisa Shiozaki, Member of the House of Representatives
Mr. Taro Honda, Member of the House of Representatives
Mr. Takuma Miyaji, Member of the House of Representatives
Mr. Yuhei Yamashita, Member of the House of Councillors

Hiroyuki Sugimoto, Chairman and Group CEO of SYLA Technologies, provided an explanation about the association and conveyed his enthusiasm for its establishment.
“Our aim is to help change the behavior of the Japanese people from saving to investment, with the collaboration of relevant ministries and agencies. We believe that the entire nation shares desire to rehabilitate many public facilities through crowdfunding to eliminate the deficit. We also believe that utilizing the 1,100 trillion yen in Japanese citizens’ deposits for investment is imperative for Japan to reclaim its position as an economic powerhouse. The Japan Real Estate Crowdfunding Association is steadfast in its commitment to being a transformative force for Japan together with everyone involved in this significant endeavor."

SYLA Co., Ltd. (CEO: Yoshiyuki Yuto), a wholly owned subsidiary of the Company, is also a promoter of this establishment. The entire SYLA group is dedicated to advancing the real estate crowdfunding market in the future.

Company Profile
On March 31, 2023, SYLA Technologies Co., Ltd. became the first Japanese prop (real estate) tech company to be listed on NASDAQ. The Company’s mission is “democratizing real estate investment around the world,” and “enriching the 100-year life era with technology and asset management.” The Company’s business includes real estate crowdfunding, AI system development, solar power, and developer businesses, with group sales of 16.7 billion yen. The asset management platform Rimawari-kun is not limited to real estate crowdfunding, but also provides asset building services that meet various investor needs using technology. For professional investors, SYLA also offers the real estate distribution platform Rimawari-kun Pro. This platform facilitates professional investors to buy and sell real estate online, providing transparency and speedy provision of information.
https://syla-tech.jp/