Kenedix Co., Ltd. (hereinafter “Kenedix”), SMBC Trust Bank, Ltd. (hereinafter “SMBC Trust Bank”), Nomura Securities Co., Ltd. (hereinafter “Nomura Securities”), and BOOSTRY Co., Ltd. (hereinafter “BOOSTRY”) collaborated on the public offering of real estate security tokens*2 (hereinafter “this ST”) utilizing the consortium blockchain platform “ibet for Fin*1”, and announced that recruitment and issuance have been completed I will.

This ST forms real estate trust beneficiary rights for the rental detached house Kolet series (hereinafter “target property”) operated by the smart home-compatible next-generation rent house brand “Kolet (Colet)” provided by Kenedix, which has one of the largest rental detached house portfolios in Japan, as trust assets, and manages securities information and transaction information related to those beneficiary rights using ibet for fin.

Overview of this ST

Kenedix is one of the largest real estate asset management companies in Japan that manages real estate exceeding 3 trillion yen. In August 2021, we launched a real estate security token offering (hereinafter “STO”) for the first time in Japan to raise funds by issuing real estate ST. Also, in August 2021, we announced the rental detached house brand “Kolet (Colet)” operated by Kenedix, and we have been pursuing new possibilities for rental detached houses in Japan. Recently, by merging these two new businesses and carrying out a public offering for this ST, which invests in the rental detached house KOlet series (484 units) as the 12th real estate STO, a project contributing to providing new options to investors and expanding the real estate ST market has come to be realized. As a result, the total asset size of real estate ST managed by Kenedix group companies is approximately 140 billion yen, including this ST. Kenedix will continue to promote the dissemination and establishment of new lifestyles with next-generation rent houses through business development of the rental detached house Kolet series, and aims for a future where 2.5 trillion yen real estate is STed across the entire market by 2030 in order to make real estate ST, which is a new investment opportunity utilizing digital technology, the “third pillar of business” after REITs and private placement funds.

Overview of Kenedix's rental detached housing “Kolet (Colet)” business

The rental detached houses included in this ST are located in the three prefectures of Tokyo, Kanagawa, Saitama, and Chiba. There is a large supply of rental housing for single people in the rental housing market in 1 metropolitan area and 3 prefectures, and the ratio of rental housing with a floor area of 70 square meters or more is only about 12% *4 of the total stock, and we recognize that it is not easy for child-rearing households and people seeking a spacious home to find rental housing with an ideal number of rooms and space.

The spread of rental detached housing is not progressing in Japan, and while the ratio of newly built rental detached houses to newly built rental housing in 1 metropolitan area and 3 prefectures is only about 1% ※5, I believe there is a lot of demand for rental detached housing against the backdrop of diversifying lifestyles. Under these circumstances, Kenedix anticipates that there is a potential market size of rental detached housing exceeding 1 million units in 1 metropolitan area and 3 prefectures due to market backgrounds such as soaring construction prices, decline in homeownership intentions, lack of large rental housing, etc., and is pioneering the industry by developing the rental detached housing brand “Kolet (Colet)” and expanding its business scale.

As a general rule, Kolet (Colet) has 2 to 3 floors in 1 metropolitan area and 3 prefectures, and has a spacious floor plan with 3 or more rooms in addition to the LDK, and it is a housing option that can meet people's diverse lifestyles, such as people who are concerned about noise and privacy, people who want to live with their parents in 2 households, and people who need space to enjoy their hobbies. Furthermore, through the Kolet (Colet) business, Kenedix is promoting sustainability initiatives such as “adopting electricity derived from real renewable energy” and “contributing to a decarbonized society by supplying wooden rental housing,” and improving the safety and convenience of residents through “smart houses that have already introduced home IoT.” Kenedix will continue to maximize the potential of rental detached housing and open up new rental housing markets to discover unmet needs for more comfortable housing, starting with child-rearing households, and realize contributions to diverse societies.

SMBC Trust Bank is developing products and services related to the issuance and management of ST supporting various assets in this field by utilizing knowledge related to real estate and securitization products, etc. as a trust bank for the development of the STO market. Going forward, we will continue to strive to create social value through product development and business promotion, etc., and work on co-creation with companies inside and outside the SMBC Group.
Nomura Securities aims to quickly provide products and services through cooperation with various partners and a multifaceted approach for digital asset-related businesses utilizing blockchain technology, which is expected to become one of the new services in the capital market. Starting with handling the first public offering of real estate ST in Japan in July 2021, we have been working on the development and expansion of the ST market, such as handling green digital truck bonds*6 for institutional investors and the largest real estate ST*7 ever in Japan. Going forward, we will continue to work to provide a wider range of investment opportunities than ever before, starting with the handling of this ST, which supports the first rental detached house in Japan.

BOOSTRY provides IT services centered around “ibet for Fin.” ibet for Fin manages multiple public real estate security tokens, public corporate bond security tokens, and private real estate security tokens. By expanding existing capital markets, BOOSTRY aims to create new capital markets that lead to corporate capital raising and core business support.

Going forward, we will continue to provide investors with new investment opportunities through collaboration across industries, and in addition to responding to social issues of “from savings to investment,” we will also aim to diversify fund raising methods by expanding investment management products such as this ST, which supports real estate, etc.

(Reference 1) Scheme image of this ST

(Reference 2) Definition of a security token

terminology	definitions
security token (Security Token, abbreviation: ST, digital securities)	It indicates a financial product (marketable securities) issued and managed using digital technology represented by blockchain, and falls under the “electronic record securities display rights, etc.” stipulated in the Financial Instruments and Exchange Act.
Security token offerings (Security Token Offering, abbreviation: STO)	It indicates fund raising by issuing security tokens to investors, and is carried out based on the regulations of the Financial Instruments and Exchange Act.
Real estate security tokens (Abbreviation: Real Estate ST)	Among security tokens, it refers to those issued with real estate-related assets as support. An STO using real estate ST is called a real estate STO.