Japan-based real estate company, Lead Real Estate has announced this week that it will launch a new security token offering (STO) fund ahead of the 2020 Olympics.
The landmark STO fund, which is set to be issued by tokenization startup, Securitize will give Lead Real Estate the needed financial resources to develop condominiums and hotels in accessible areas in Tokyo, such as Ginza, Shinjuku, Shibuya, Ebisu, Shinagawa, and Meguro.
The primary motive of the fund is to enable investors and Lead Real Estate to grab a share of tourist revenue that Tokyo is expected to generate as a result of hosting the 2020 Olympics.
Notably, it also comes at a time when real estate prices in the locations mentioned above are near previous all-time highs, with politically-influenced negative rates making the real estate market more appealing to investors.
Citing data published by japan’s Ministry of Land, Infrastructure, and Transport in 2019, Lead Real Estate noted in the release that “the average national price of commercial land rose for the fourth consecutive year and residential land rose for the second consecutive year.”
The release also confirmed that the new STO fund would be open to accredited U.S investors as it would be conducted in line with regulation D and S stipulated by the United States Securities and Exchange Commission (SEC).
Also of interest is that the latest development in Japan comes just a few weeks after six brokerage firms launched a new STO association, the first of its kind in the Asian country. The objective of the industry association, as we reported, is to promote STOs as an effective fundraising mechanism for businesses in Japan, and also to self-regulate the emerging sector.