Notice of TOSEI Property Fund (Series 3) Ichigaya (Digital Transfer Method) to be handled Through “START,” a Proprietary Trading System Operated by ODX

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DX
Fund

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September 04, 2024
TOSEI CORPORATION

To whom it may concern

TOSEI CORPORATION (Head Office: Minato-ku, Tokyo; President and CEO: Seiichiro Yamaguchi; Securities Code: 8923) (the "TOSEI") announced that it has decided to start that the real estate security token (the "ST") "TOSEI Property Fund (Series 3) Ichigaya (Digital Transfer Method) ("the ST") (*1) will be handled on "START," a proprietary trading system operated by Osaka Digital Exchange Co., Ltd. (the "ODX").

TOSEI Property Fund （Series 3） Ichigaya (Digital Transfer Method)

The ST will be a real estate security token that forms the trusts with certificates of beneficial interests with real estate trust beneficial interest backed by LIERRE ICHIGAYA, an office and residential complex located in Ichigaya, Shinjuku-ku, Tokyo as the trust asset, whose securities and transaction information for the beneficial interest will be managed using "Progmat." (*2) With a total issuance amount of 1.74 billion yen in the public offering of security tokens, the ST utilizes digital technology to provide general investors with the opportunity to invest in a single property (an office and residential complex) in small lots.

LIERRE ICHIGAYA

Handling on "START" operated by ODX

ODX was established in April 2021 for the purpose of improving investor convenience and helping companies raise funds flexibly by developing distribution and redemption opportunities. In June 2022, ODX began operating a proprietary trading system for stocks, providing investors with more execution opportunities. In December 2023, ODX has started operating "START," the first secondary ST market in Japan, and this is the main purpose of ODX's establishment. "START" is a licensed proprietary trading system (licensed PTS) approved by the Financial Services Agency as a proprietary trading system for ST trading. ODX is promoting the spread of ST in order to increase its liquidity and further penetrate and develop it as an investment vehicle for individual investors.
The ST is scheduled to start handling on September 18, 2024. By making secondary trading possible on the "START," investors can expect to enjoy greater convenience by diversifying their trading options and improving the transparency of information, including trading prices.

The TOSEI Group will integrate DX into its real estate revitalization business and real estate funds and consulting business to further promote DX through its business, and attempt to diversify fund procurement methods and exit strategies, which are the source of business growth, and investment opportunities in real estate for investors. Through these efforts, we will continue to provide attractive products to investors and contribute to the expansion of ST market.

*1

For more information on the ST during the management period, please refer to the website operated by Tosei Asset Advisors, Inc.
https://sto-4.tosei-asset.co.jp/
*2

Regarding "Progmat": Digital asset publishing and management platform licensed by Progmat, Inc.
The website and explanatory article are available at the following URL.

Website:

https://progmat.co.jp/

Explanatory article:

https://note.com/tatsu_s123/n/n03a291fa52ab

Outline of the ST

Name of the product	TOSEI Property Fund (Series 3) Ichigaya (Digital transfer system)
Investment property （appraised value）	Beneficial interest in real estate management and disposition trust with "LIERRE ICHIGAYA" as the trust asset (4.01 billion yen： as of February 1, 2024)
Number of units issued / Total amount of issue	17,400 units / 1.74 billion yen
Issue price / Application unit	100,000 yen per unit / 10 units or more in increments of 10 units
Management period	About 5 years and 2 months (in principle) In the event of early sale of beneficial interests in real estate management and disposition trusts, they will be redeemed earlier than the scheduled redemption date. It may be decided to extend the management period for up to one year.
Type of securities offered	Security tokens representing beneficial interests in trusts with certificates of beneficial interests
Issuer	Beneficiary Token Three LLC Fiduciary Mitsubishi UFJ Trust and Banking Corporation
Asset manager	Tosei Asset Advisors, Inc.
Handling company	Tokai Tokyo Securities Co., Ltd.
Lender	Sumitomo Mitsui Banking Corporation
Platform	Progmat

*

The application process has been closed.

The Definition of Security Token

Terms	Definition
Security Token (ST, Digital Securities)	Financial instruments (securities) issued and managed using digital technology represented by the blockchain which corresponds to the category of "Electronically Recorded Securities Representation Rights, etc." as defined in the Financial Instruments and Exchange Act
Security Token Offering (STO)	Fundraising by issuing security tokens to investors which is regulated by the Financial Instruments and Exchange Act
Real Estate Security Token (Real Estate ST)	A security token that is issued backed by real estate-related assets. STOs using real estate STs are called real estate STOs.

This document is intended for general publication regarding Tosei Property Fund (Series 3) Ichigaya (Digital transfer system) and is not intended for solicitation for investment in individual financial instruments, either in Japan or overseas.

Corporate Data

Company Name: Tosei Corporation
https://www.toseicorp.co.jp/english/
President and CEO: Seiichiro Yamaguchi
Address: 4-5-4 Shibaura, Minato-ku, Tokyo
Fields of Business: Real estate revitalization, real estate development, real estate rental, real estate funds and consulting, real estate management, hotel business

Contact

Corporate Management Department
Public Relation / Sustainability Promotion Section
Tosei Corporation

+81-3-5439-8807

pr-tosei@toseicorp.co.jp

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