Merger of the Japan Real Estate Crowdfunding Association and the Real Estate Crowdfunding Association for Japan DecidedAccelerating Investor Protection and Healthy Market Growth in Cooperation with the Parliamentary League

SYLA Technologies Co., Ltd. (Head office: Shibuya-ku, Tokyo; CEO: Hiroyuki Sugimoto; NASDAQ: SYT) (“SYLA” or “the Company”), operator of the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, announced that the Japan Real Estate Crowdfunding Association, co-chaired by Hiroyuki Sugimoto, Representative Director and CEO of the Company, and Wataru Muto, Representative director and CEO of LAETOLI Co., Ltd. (“LAETOLI"), has decided to merge with the Real Estate Crowdfunding Association for Japan (Representative Director: Daizo Yokota) (“Real Estate Crowdfunding Association for Japan”).


Purpose and Background of the Merger with the Real Estate Crowdfunding Association for Japan
In recent years, the real estate crowdfunding market has experienced significant growth, with an increasing number of operators and cumulative investments, making it an appealing asset management option for individual investors. With the market's expansion, the need to enhance reliability and transparency across the industry has grown increasingly important.

Established in November 2023, the Japan Real Estate Crowdfunding Association (“JRCA”) has collaborated with the Diet Members Caucus for the Promotion of Real Estate Crowdfunding, LDP, to develop self-regulatory rules and advocate policy recommendations to relevant ministries. JRCA has also focused on promoting investor protection, fostering sound market growth, addressing regional revitalization and other local issues, and ultimately contributing to the growth of the Japanese economy.

To further advance the industry and strengthen investor protection, JRCA has decided to merge with the Real Estate Crowdfunding Association for Japan, which has been actively involved in initiatives such as building an industry-wide database, promoting information sharing among businesses, and holding study sessions since August 2023. This merger aims to accelerate the healthy growth of the industry.

Hiroyuki Sugimoto Appointed as Director: Future Activities of the Real Estate Crowdfunding Association for Japan
As part of the new leadership structure of the Real Estate Crowdfunding Association for Japan, Hiroyuki Sugimoto, co-founder of JRCA, has been appointed as a Director, effective August 29, 2024. Moving forward, the Association will enhance its collaboration with the government, develop and promote investor protection guidelines, and act as a conduit for industry operators to communicate their views and requests to the government.

Under this new framework, the Association will facilitate regular member meetings to discuss real estate crowdfunding issues and disseminate information to the broader industry. Additionally, through educational webinars and seminars for new operators and investors, the Association will establish guidelines for new operators, elevate industry standards, and offer opportunities for investors to gain a deeper understanding of real estate crowdfunding.

Real Estate Crowdfunding Association of Japan Outline
Representative Director: Daizo Yokota
Head office: 8F, Shimbashi 27MT Building, 2-12-11 Shimbashi, Minato-ku, Tokyo, Japan (CREAL Inc.)
Establishment: August 30, 2023
Business:
Publication and maintenance of a real estate crowdfunding database
Regular disclosure of market reports, white papers, and other industry insights
Establishment of industry rules and guidelines for real estate crowdfunding
Research on the feasibility of utilizing blockchain and Security Token Offerings (STO)
Other activities necessary to fulfill the objectives of the Association
Incidental or related business activities
Board members:
Representative Director: Daizo Yokota (Representative Director and CEO, CREAL Inc.)
Director: Hitoshi Oshima (Director and Executive Officer, Tosei Corporation)
Director: Taizo Murotani (Director and Executive Officer, A.D. Works Group.)
Director: Hiroyuki Sugimoto (Representative Director and Chairman, Group Executive Officer and CEO, SYLA Technologies Co., Ltd.)
Haruo Narimoto, Partner, TMI Associates (assumed office in June 2024)
Website: https://prop-crowdfunding.org/

SYLA Technologies Company Contact
Takeshi Fuchiwaki
Director, Chief Growth Officer
[email protected]