A New Product Allowing You to Experience the True Value of Real Estate Investment

RAYEX Small-Lot Product with Real Estate Trust Beneficiary Interest

1.Small-Lot Product: Development Background

By researching the characteristics of real estate assets whose profitability and asset value will increase in response to the changes occurring in society and sometimes developing business ourselves as well, we have created income properties whose asset value continues to increase in the medium to long term. The key to this business is our practical knowledge, which links the energy of the people who make use of real estate with the ownership purpose of client owners. Accordingly, even after a property is sold, we continue to support asset value enhancement in alignment with the client’s ownership objectives.
However, given that each real estate asset we create is custom-made, with an average price in the range of 2 to 3 billion yen, the investment opportunities we can offer have been limited. To overcome this restriction, we drew on the expertise and experience we have accumulated to date to develop a small-lot product, RAYEX, that allows us to make our unique real estate assets available to a wider range of clients.
Sales for Phase 1 (A Tale of Two Cities: Yokohama/Kobe Heights; approx. 6 billion yen) began in December 2021 and were completed by the end of March 2022. Phase 2 (A Tale of Three Cities: Central Kyoto, Osaka, and Fukuoka; approx. 10 billion yen) has been on sale since May 2022.

2.Features of RAYEX

1) Using the leverage effect of loan-in-trust schemes, we invest in real estate worth around 100 million yen in lots of approx. 50 million yen each, with the aim of improving asset value over a management period of 6 to 10 years.

2) By providing beneficiary interest based on a two-stage trust scheme*1, it is possible to invest in multiple large-scale real estate assets worth several billion yen each. Since multiple real estate assets are included under a single beneficiary interest, region-specific risks and vacancy risks are reduced as much as possible through a portfolio diversification effect*1, resulting in a stable managed product.

3) Integrated operation and management is handled by a specialized in-house team with expertise in the fields of real estate, construction, law, and finance, and it is possible to receive regular, detailed management reports.

Note 1: RAYEX is a small-lot product that provides trust beneficiary interest for large-scale real estate assets to be managed by institutional investors and the like. By using a two-stage trust that provides real estate trust beneficiary interest for multiple target real estate assets as well as trust beneficiary interest for those, we achieve a leveraging effect based on loan-in-trust schemes and a portfolio diversification effect. Trust beneficiary interest indicates “the right to receive profits (rental income, etc.) obtained from applicable assets (real estate) entrusted to a trust bank or the like,” while a small-lot product with trust beneficiary interest is a product in which the trust beneficiary interest is divided into smaller lots to facilitate purchasing by clients.

Client Testimonials

“It’s packaged so there’s no need to apply for a bank loan, thanks to the leveraging effect, which is a game-changer. When thinking about purchasing real estate, sometimes you would have to consult the bank about a loan and then defer the purchase based on their response, but RAYEX frees you from the hassle of paperwork.”

“I’ve given up on buying conventional investment products without a clear exit (future sale). However, with the small-lot product RAYEX, there’s a clear exit strategy for selling in the future, so I felt that it was a transparent product.”

“I’ve given up on buying conventional investment products without a clear exit (future sale). However, with the small-lot product RAYEX, there’s a clear exit strategy for selling in the future, so I felt that it was a transparent product.”

“A REIT is closer to investing in stocks than investing in real estate, but with the small-lot product RAYEX, the actual real estate that’s included is clear, and reports are provided so you can see the profit trends, making it easy to understand.”

“You can get a sense of RAYSUM’s ability to improve the asset value of real estate. There’s a dedicated department that discusses financial matters with you at the time of purchase and carefully answers any questions during the management period, which provides peace of mind. I also appreciated the developer’s vision and the design ideas.”

“With regular real estate investment products, the sales company and the management company are often separate. With the small-lot product RAYEX, real estate operation and management is not outsourced—RAYSUM has a system whereby it acquires the real estate itself, then identifies the property’s characteristics and continues to handle management through a dedicated organization, which gives you peace of mind.”

Contact Information for Inquiries about Small-Lot Product RAYEX
Saori Ono
Operating Officer, Sales Division , Raysum
Email: rayex@raysum.co.jp
Phone: 03-5157-8540

Notes:
・This document was not written for the purpose of offering or soliciting investments.
・Specific details, amounts, calculation methods, etc. relating to conflicts of interest, premature cancelation, target/expected yields, commission fees, etc. are indicated in product overview documents and pre-contract documents issued by RAYSUM. Please consult those documents for the relevant information. Since commission fees vary based on the product, it is not possible to provide a summary of them.
・Since the primary trust asset for trust beneficiary interest is real estate, there may be fluctuation based on the financial/economic environment, business trends, real estate market conditions, etc., which could be detrimental to future investment principal or cause earnings depreciation.