Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

September 20, 2024
Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative: Scott Callon, Chairman
Inquiries: Takanori Sakamatsu, Executive Managing Director
Telephone: +81-3-4485-5221 www.ichigo.gr.jp/en

Sale of Residential Assets for Launch of Fifth Ichigo Residence Token
Ichigo Owners, Ichigo’s wholly-owned subsidiary, is expanding its digital real estatebusiness leveraging highly secure security tokens on a blockchain platform.
Following the launch of its fourth token in April 2024, Ichigo Owners will begin salesof its fifth token, Ichigo Residence Token: Ichigaya Nakanocho, Bunkyo Kohinata,
Komaba Todaimae, Nishi Shinjuku, Kiyosumi Shirakawa, Asakusabashi, & Minowa,
with underlying assets comprising seven residential assets (total JPY 11.4B) located inTokyo’s 23 wards.
Note: A security token is a digital asset that represents ownership of an underlying asset,
which can be transferred using an electronic information processing system such as a
blockchain.
1. Ichigo Residence Token Rationale
In order to expand its product offering and provide individuals and business owners withthe opportunity to easily invest in high-quality real estate backed by Ichigo’s longstanding asset management expertise and real estate know-how, Ichigo Owners launched
the Ichigo Residence Token in November 2022, and has decided to begin sales of its fifth
token with underlying assets comprising seven Tokyo residential assets with earnings
stability that were strategically acquired by Ichigo Owners.
Ichigo’s current line-up of investment products available to individuals and businessowners includes direct investments in real estate assets, two J-REITs and a listed solar
producer, and the Ichigo Owners Co-Ownership business (offering small-lot investments
in diverse Ichigo Owners assets). Ichigo is aiming to grow its security token business andthe security token market via increasing its market presence.
2. Digital Real Estate Outlook
Similar to traditional securities like stocks, the Ichigo Residence Token is regulated by
Japan’s Financial Instruments and Exchange Act, and is a highly secure investment
product given that security ownership is managed on a blockchain, thus minimizing thechances of data fraud. Security tokens also enable small-lot investments in trust
beneficiary interests (juekiken), therefore providing individual investors the opportunity
to invest in alternative investments other than traditional stocks and bonds.
The launch of START, a new trading system designed for the distribution of security
tokens developed by Osaka Digital Exchange (“ODX”), has driven the transparency andliquidity of digital real estate transactions via security tokens, and the market is expectedto grow. With the aggregate AUM of J-REITs having grown to over JPY 20 trillion during
the past two decades and the AUM of private equity funds in Japan at a similar level,1

Ichigo believes that digital real estate investments, which are based on security tokens,are a key growth area.
Ichigo Investment Advisors (“IIA”), Ichigo’s wholly-owned subsidiary with longstanding expertise in managing two J-REITs, a listed solar producer, and private equity
funds, will manage the underlying residential assets of the fifth token and leverage its
extensive experience, real estate know-how, and hands-on approach to provide
professional real estate asset management services to individual investors. Following thelaunch of the fifth token, IIA’s Ichigo Residence Token AUM will be JPY 42.6 billion.
Ichigo will provide opportunities to make investments in high-quality real estate assets
broadly and readily available to many investors. Ichigo’s involvement throughout thevalue chain, starting with product creation through to investment of the underlying
assets, will establish touchpoints with new investors and is expected to contributetowards growing Ichigo’s long-term stock earnings. Ichigo will continue to work
towards growing its new digital real estate business and driving shareholder value.
Osaka Digital Exchange (ODX) Overview www.odx.co.jp/en
Principal Businesses

Major Shareholders

Representatives
Address
Establishment Date
Registration & License

Operation of PTS for equities
Operation of START, a private security token tradingsystemSBI PTS Holdings, Co., Ltd.
Sumitomo Mitsui Financial Group
Nomura Holdings, Inc.
Daiwa Securities Group Inc.
Cboe Worldwide Holdings Limited
Yoshitaka Kitao, Representative Director & Chairman
Kimio Mikazuki, Representative Director & President
3-2-18, Nakanoshima, Kita-ku, Osaka(Osaka Office)3-1-1, Roppongi, Minato-ku, Tokyo (Tokyo Office)April 1, 2021
Financial Instruments Dealer License, Kanto Financial
Bureau #3328
PTS Operation for Equities

3. Buyer Overview (Launch Date: October 24, 2024)
NameAddress
Representative

Relationship to Ichigo

GK IST Residence 5 (Operator of Fifth IchigoResidence Token)
1-4-1 Marunouchi, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin
IST Residence 5Manager: Yohei Sekiguchi
The GK does not have any material capital or
personnel relationship with Ichigo. Ichigo’s
consolidated subsidiary, Ichigo Investment Advisors,
will provide asset management services.

2

Reference: Ichigo Residence Token: Ichigaya Nakanocho, Bunkyo Kohinata, Komaba
Todaimae, Nishi Shinjuku, Kiyosumi Shirakawa, Asakusabashi, & Minowa Overview
Total Issue Price
Total Assets UnderManagement
Investment Term
Asset Management
Company
Custodian

JPY 3.746 billion (Expected as of today)

5 years (Expected)

Security Token Issuer

SMBC Trust Bank Ltd.

Lead Underwriter

SBI Securities Co., Ltd.

JPY 11.4 billion

Ichigo Investment Advisors
SMBC Trust Bank Ltd.

To ensure information transparency, disclosures regarding the security tokens will beprovided via a dedicated website, which will be made available starting on the same day
as the Ichigo Residence Token: Ichigaya Nakanocho, Bunkyo Kohinata, Komaba
Todaimae, Nishi Shinjuku, Kiyosumi Shirakawa, Asakusabashi, & Minowa. Disclosures
will also be available on START-NET, ODX’s disclosure system, after the token begins
trading on START.
The security tokens will be issued and managed using the BOOSTRY blockchain
platform. https://boostry.co.jp (Japanese only)
For inquiries, please contact Ichigo Investment Advisors at +81-3-4485-5230.
4. Transaction Schedule
Board Resolution Date
Contract Date
Settlement Date

September 20, 2024
October 24, 2024
October 24, 2024

5. Underlying Asset Details
Construction Completion
Date

Asset NameGRAN PASEO Ichigaya Nakanocho

December 2023GRAN PASEO Bunkyo Kohinata

March 2023

GRAN PASEO Komaba Todaimae

November 2023

GRAN PASEO Nishi Shinjuku

January 2024

GRAN PASEO Kiyosumi Shirakawa

October 2021

GRAN PASEO Asakusabashi IIDecember 2023

GRAN PASEO Minowa

March 2024

6. Earnings Impact
Ichigo expects to record FY25/2 revenue of JPY 11.4 billion from the sales of Ichigo
Residence Token: Ichigaya Nakanocho, Bunkyo Kohinata, Komaba Todaimae, Nishi
Shinjuku, Kiyosumi Shirakawa, Asakusabashi, & Minowa, which has already beenfactored into Ichigo’s FY25/2 consolidated earnings forecast.

3

Reference:Underlying Assets of Ichigo Residence Token: Ichigaya Nakanocho, Bunkyo Kohinata,Komaba Todaimae, Nishi Shinjuku, Kiyosumi Shirakawa, Asakusabashi, & Minowa
GRAN PASEO Ichigaya Nakanocho

GRAN PASEO Bunkyo Kohinata

4

GRAN PASEO Komaba Todaimae

GRAN PASEO Nishi Shinjuku

5

GRAN PASEO Kiyosumi Shirakawa

GRAN PASEO Asakusabashi II

6

GRAN PASEO Minowa

7