Lead Real Estate, a 17-year old Japanese Real Estate developer with projects spread around premium areas of Tokyo as well as assets across America, Hong Kong and the Philippines, will become the first Japanese real estate company to conduct a global multi-million dollar capital raise utilising Digital Securities as a medium of issuance.
At Lead Real Estate we believe in delivering value to our customers across the whole range of our business activities, so pioneering an instrument that is exactly designed to improve efficiency and reduce friction, whilst providing global access to one of the world’s largest metropolis, Tokyo with a population of 38 million is an ideal solution to achieve our capital goals” commented Eiji Nagahara, Founder and CEO of Lead Real Estate.
GRIP (DIFC) Ltd, an investment banking services and wealth management firm, licensed by the Dubai Financial Services Authority (DFSA) and operating out DIFC, is the appointed Financial Advisor and Investment Banking partner managing this offering.
We are confident that bringing such an established company to market via a digital securities issuance will positively contribute towards the transformation within capital markets and are proud to be the first in Dubai to be conducting such an offering” stated Tony Pettipiece, Chairman of GRIP DIFC Ltd.
Commenting on the achievement in a DIFC press release Arif Amiri, Chief Executive Officer of DIFC Authority, said: “Congratulations to GRIP for launching this innovative digital security capital raise. We are pleased that DIFC’s robust yet forward looking legal and regulatory framework is providing GRIP with a platform to deliver a first for the Centre and MEASA region. Innovation like this will propel economic development in the region and illustrates how DIFC is driving the future of finance.”
To enhance coverage, SEC registered and FINRA licensed ATS and US broker dealer Rialto Markets partnered with GRIP. Commenting on the issuance Shari Noonan, CEO of Rialto Markets stated “We are proud to continue our participation in the new world of capital markets and are confident that this method of capital formation – combining traditional structure with cutting edge technological efficiencies – will enhance the ongoing transformation of the private markets ecosystem”
Growing in terms of importance and relevance, Digital Securities, alternatively referred to as security tokens, can represent stock of corporations, debenture notes issued by financial institutions, governments, corporations or underlying assets for Exchange Traded Funds (ETF).
The distinguishing benefits of digital securities are many, most significant of which are when the friction associated with the transferability of private securities is reduced, the possibility of secondary market price discovery and consequent liquidity are augmented enabling access to a wider pool of capital.
Securitize is an SEC-registered transfer agent and industry-leading enabler of digital securities for enterprise, funds, real estate, and existing businesses.
Securitize is particularly proud to be the technology provider for Lead Real Estate’s digital security issuance,” said Carlos Domingo, Securitize CEO and Co-Founder, “This deal not only validates our belief that Japan will continue to be a global leader in developing digital securities, but also showcases how the technology is solving real issues for larger, more established companies by providing a cost effective and compliant solution for issuing and managing private securities on a global scale.”
In this capital raise, each Digital Security will be made available for the subscription of Professional / Accredited investors who are presented with the opportunity of owning preferred equity in Lead Real Estate.
Each Digital Security made available for qualifying investors by Lead Real Estate (Cayman) will thereon go on to purchase Preference Shares issued by Lead Real Estate (Japan). Thus, enabling Digital Security investors with direct ownership of Preferred equity within Lead Real Estate (Japan) in a tax efficient manner.
V.Gowribalan, CEO of GRIP (DIFC) Ltd., goes on to say “The potential to earn returns well in excess of Japanese REITs, funds and listed competitors whilst having multi segment focus across residential and commercial developments and across income streams such as development gains, rental income, and brokerage fees positions Lead Real Estate’s offering as an ideal gateway to garner exposure to the Tokyo real estate market.”
Investor returns include 5% p.a. as proposed dividends along with an expected additional distribution of a minimum of 10% and a maximum of 20% of net profit. As a result, cumulative returns are expected to average between 6% - 8% p.a.
Established in 2003 by Eiji Nagahara in Tokyo, Lead Real Estate is focused upon planning, acquisition, renovation and repurposing of real estate assets in and around premium areas of the Tokyo region , with some of their projects being developed to leverage on the opportunities arising out of the 2021 Tokyo Olympics.
Over the last 17 years, the firm has successfully completed in excess of 500 projects with cumulative project value surpassing USD 1 billion. At present, total assets of the company stand at approximately USD 65 million with USD 11 million in shareholders’ equity. For the financial year ending 30th June 2020, the company expects to post turnover exceeding USD 80 million with net incomes in the range of USD 1.3 million.<
