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Lead Real Estate plans to digitally securitize and fund preferred stock with Securitize and others

Japanese real estate developer Lead Real Estate has announced plans to raise millions of dollars in overseas funding through the digital securitization of its preferred shares.

The digital securities firm Securitize, Dubai-based financial firm GRIP, and U.S. broker-dealer Rialto Markets will be involved in the digital securities issue. Association) as a transfer agent and Rialto Markets is registered with the SEC and the Financial Industry Regulatory Authority (FINRA) as a broker-dealer.

The digital securitization will consist of preferred stock issued by a special purpose company of Lead Real Estate, Inc.

The digital securities also contain a mechanism for distributing interest at 5% per annum and an additional amount equal to a minimum of 10% to a maximum of 20% of net income, according to the company.

Eiji Nagahara, CEO of Lead Real Estate, said “At Lead Real Estate, we believe in delivering value to our clients through our diverse business activities. We believe in providing global access to the Tokyo area, the world’s largest city with a population of approximately 38 million, and pioneering methodologies designed to increase efficiency and reduce various transactional hurdles, as well as the fact that our Cayman-based company is the only one of its kind in the United States. The fact that we have already registered with Regulation D and are seeking funds from investors based on the said criteria is also an ideal solution for us to raise funds,” he commented.

Carlos Domingo, CEO of Securitize, said “This deal not only embodies our belief that Japan will continue to be the global leader in digital brokerage, but it also addresses a real challenge for established corporate organizations to innovate. We believe this is a great example of how the issuance and management of digital securities on a global scale can be solved by providing a cost-effective, compliant solution through proprietary technology. And we are very proud to be Lead’s technology provider for digital securities issuance.

Mr. V. Gowribalan, CEO of GRIP, said: “Focusing on things like residential and commercial development, we have the potential to generate returns that far exceed those of J-REITs, funds and listed competitors. With development profits, rental income, and brokerage commissions, we believe Lead’s product is positioned as the ideal entry point for access to Tokyo’s real estate market.

Editor’s Comment

Lead Real Estate Co., Ltd. is a Japanese real estate developer in its 17th year of operation. In 17 years, Reed Real Estate has successfully completed more than 500 projects with a cumulative value of more than 100 billion yen, and currently has total assets of approximately 6.86 billion yen and shareholders’ equity of 1.16 billion yen, according to the release. 101%) and is expected to generate a pre-tax net income of approximately ¥200 million (120% of the previous year).

This project is very attractive as it creates an opportunity for foreign investors to access capital in the Japanese real estate market.




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