CEO Sugimoto Addressed Industry Challenges and Outlook at the Launch of the "Diet Members Caucus for the Promotion of Real Estate Crowdfunding, LDP”

SYLA Technologies Co., Ltd. (Head office: Shibuya-ku, Tokyo; CEO: Hiroyuki Sugimoto; NASDAQ: SYT) (“SYLA” or “the Company”), in its capacity as the co-chair of the Japan Real Estate Crowdfunding Association (JRCA), participated in the inaugural general meeting of the “Diet Members Caucus for the Promotion of Real Estate Crowdfunding, LDP” (Chairman: Seiji Kihara, Member of the House of Representatives) on Thursday, December 14, 2023. Sugimoto delivered a presentation addressing the challenges and future prospects of the Japanese real estate crowdfunding market during the meeting.

Collaboration with the Diet Members Caucus for the Promotion of Real Estate Crowdfunding, LDP
Following the 2017 revision of the Act on Specified Joint Real Estate Ventures (FTK Act), the real estate crowdfunding market has experienced rapid expansion, driven by a national policy spearheaded by the Ministry of Land, Infrastructure, Transport and Tourism. The “Diet Members Caucus for the Promotion of Real Estate Crowdfunding, LDP” was established by dedicated members of the Liberal Democratic Party to foster in-depth discussions addressing various issues associated with this rapid expansion and to design specific systems.

At the launch of the Diet Members Caucus, Hiroyuki Sugimoto, JRCA’s co-chair and CEO of SYLA Technologies, presented an overview of the industry’s current landscape and its future prospects. With a focus on the latest trends in the real estate investment market, he proposed flexible responses to emerging market needs, the establishment of mechanisms to ensure transparency and safety, and the formulation of self-regulatory rules. These initiatives aim to facilitate the healthy and sustainable growth of the real estate crowdfunding industry. The JRCA is steadfast in its commitment to steering the real estate crowdfunding market, fostering deeper collaboration with the Diet Members Caucus, and advocating policy recommendations.

About JRCA
The JRCA 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.

JRCA's 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

SYLA Technologies Company Contact
Hajime Sugino
Head of SYLA USA
[email protected]