SYLA Technologies Co., Ltd. engages in the business of real estate sale, leasing, management and crowdfunding, solar power plants sale, operation and maintenance, electricity sale, container sale, operation and management. The company’s operations are conducted mainly in Japan.
The company engages in four primary businesses:
Real Estate Development and Sales Business: Development, design, construction, and sales of real estate centered on the SYFORME series condominiums developed by the compan...
SYLA Technologies Co., Ltd. engages in the business of real estate sale, leasing, management and crowdfunding, solar power plants sale, operation and maintenance, electricity sale, container sale, operation and management. The company’s operations are conducted mainly in Japan.
The company engages in four primary businesses:
Real Estate Development and Sales Business: Development, design, construction, and sales of real estate centered on the SYFORME series condominiums developed by the company. Includes land sales and income through Rimawari-kun Crowdfunding Business.
Asset Management Business: Rental management and building management. Includes income through Rimawari-kun Crowdfunding Business.
Renewable Energy Business (Solar Power Generation): Design, construction, maintenance of solar power generation facilities, sale of solar power plants, and sale of other renewable energy related products, sale of electricity.
Others: Mainly containerized data center business.
Strategy
Real estate financing by banks in Japan is in a rigid state, with loans heavily weighted toward real estate in certain urban areas.
Real Estate Development and Sales Business
Real estate development and sales business, primarily conducted by SYLA Co., Ltd., provides a one-stop service for the development, construction, and sale of investment apartments for the purpose of asset management. The company is developing its own brand of condominiums entitled SYFORME within a 10-minute walk of train stations in such wards.
Rimawari-kun Real Estate Crowdfunding Business
The real estate crowdfunding platform Rimawari-kun engages in a business centering on the real estate investment in order to provide a wide range of investment products to individual investors, provide indirect financial functions to real estate venture companies, and simplify and make transparent the online real estate investment process.
The company’s real estate crowdfunding platform Rimawari-kun was launched in 2021. This service allows customers to invest as little as ¥10,000 (approximately US$70.96) in a real estate investment among a portfolio of real estate investment opportunities offered on its crowdfunding platform and perform all investment-related procedures online. This process lowers the barriers to entry experienced by individual investors, including requirements for large amounts of capital as well as lengthy and tedious borrowing procedures.
The company has developed a wide range of investment products, from single residences to commercial buildings, factories, and lodging facilities, and created a platform that allows any of its registered users to access the real estate investment market, which has traditionally been very difficult for individuals to gain entry.
Asset Management Business
The asset management business focuses on rental income from real estate owned by the company, as well as lease management, building management, and operation and maintenance of solar power plant.
Apartment management
The apartment management business provides apartment management services for properties managed by the Rimawari-kun Business, properties owned by the company, and properties leased under subleases. The company manages approximately 3,328 units as of the end of December 2023.
The company has introduced an application exclusively for tenants and owners. The application’s chat function and notification functions allow for speedy communication. In addition, various kinds of attachments and images can be exchanged. All applications are also accepted online.
The rooms are Internet of Things (IoT)-enabled, and many home appliances can be operated with a smartphone. In addition, a dedicated application allows access to various services provided by partner companies, such as water servers, car rentals, restaurants, and esthetic clinics.
Building Maintenance and Management
The building maintenance and management business provides building maintenance and management services commissioned by the Rimawari-kun Business.
In addition to building maintenance and management, the company holds a construction business license, which enables it to receive orders for large-scale repair and maintenance work. For apartment management and building maintenance and management, the number of units under management has reached 3,328 units as of December 31, 2023.
Renewable Energy Business - Solar Power Generation
As a solar power generation business, the company provides a one-stop service from land purchase to design, construction, operation, and maintenance of solar power plants. The company’s solar power plant developments include low-voltage, high-voltage, roof-top, and agricultural combined-use, and it is ready to design, construct, operate, and maintain all its power plants in-house. Power plants are sold to companies and individual investors who purchase them as investment products.
Products and Services
Apartment Building Development and Management
In the real estate development business, the company positions create the real estate it wants as its philosophy and sell apartments under the original brand SYFORME based on this philosophy. Apartments in the SYFORME series are designed with the customer’s lifestyle in mind and is intended to be beautiful and comfortable to live in. The exterior design is a universal design that is not influenced by trends, with a concrete, glass, stainless steel, and wood-grained exterior. The interior planning incorporates the opinions of the rental management department, and the company has created color schemes and layouts that make it easy to place furniture in any position. In addition, the rooms are IoT-enabled, with many of the home appliances capable of being controlled via smartphone. In addition, a dedicated app is provided to customers, allowing them to use chat and notification functions and views rent payment statements, as well as various services provided by partner companies, such as water servers, car rental, restaurants, and esthetic clinics.
As a result, SYFORME series apartments boast an occupancy rate of over 99% throughout the year with the support of many customers.
In addition, the company has received awards from the National Housing Industry Association three times in the past for its excellent business projects in recognition of its manufacturing efforts.
Real Estate Crowdfunding Service
The real estate crowdfunding service on the Rimawari-kun platform allows members to invest as little as ¥10,000 (approximately US$70.96) in a real estate investment among a portfolio of real estate investment opportunities offered on its crowdfunding platform and earn a scheduled yield, based on the concept of contributing to society, revitalizing local communities, and supporting individuals in pursuing their dreams and challenges.
Solar Power Plant Development and Maintenance
SYLA Solar sells solar power plants (including ground mounted solar installations) and roof-mounted solar power generation equipment. The company procures materials from major domestic and overseas panel and power conditioner manufacturers and provide design, construction, and maintenance services for solar power plants that meet the standards designated by the Ministry of Economy, Trade and Industry. In addition, the Chubu region, where the company is developing its business, has the highest power generation output in Japan under the climatic conditions, so the revenues from electricity sales tend to be higher than in other regions.
Concentration of Customers and Suppliers
Customers
In 2023, MOTOMACHI-CHUKAGAI PJ (total units: 95), TABATA PJ (total units: 51), and OJI II PJ (total units: 43) were constructed and sold to a private fund managed by BlackRock’s Real Estate Division. The company had entered into an agreement on business collaboration with a private fund managed by BlackRock’s Real Estate Division. Sales of the four properties accounted for 39.68% of total sales for 2023.
Suppliers
Of the several general contractors contracted to build condominiums, about 30% of the contracts in 2023 were with Shin-Ei Kogyo Co., Ltd.
In 2023, Shin-Ei Kogyo Co., Ltd. accounted for 29.98%, Fuetsu Construction Corp. for 21.80%, MUGISHIMA GENERAL CONTRACTOR for 11.39%, Misakigumi Co., Ltd. for 8.22%, and in-house construction for 7.68%, respectively, of the company’s total construction costs.
Real Estate Sales
For its real estate development and sales business, in order to attract an even wider range of customers, the company conducts marketing sales through inquiries from Rimawari-kun, marketing sales mainly to Rimawari-kun members, and referral sales through referrals from customers.
In marketing sales, the company sells to Rimawari-kun members, and it has extremely efficient marketing. As of December 31, 2023, the company had 1,498 apartment customers, and 3,328 units under management.
Rimawari-kun
The company’s unique marketing initiatives include AI-based marketing by tier of financial asset holdings. In addition, the company entered into a capital and business alliance with Rakuten Group, Inc. in December 2021, and the company is the exclusive provider in the real estate industry of data marketing utilizing purchasing behavior to Rakuten members, which number over 100 million. As of December 31, 2023, 25,711 of the 279,029 members were derived from the marketing program associated with Rakuten Group, Inc. Furthermore, the company offers special incentives for influencers and affiliates, and the company provides close communication and hold many events to encourage outside marketers to recommend Rimawari-kun.
As a result, as of December 31, 2023, the company’s real estate crowdfunding platform membership reached 279,029.
Solar Power Plants
The low-voltage solar power plants handled by SYLA Solar are sold as investment products primarily to customers in the semi-affluent, middle class, and lower-class brackets.
Customers
Customer Brackets
The customers that the company serves are divided into five financial brackets based on the value of their financial asset holdings:
Super-affluent bracket refers to individuals with financial asset holdings with a value of ¥500,000 thousand (US$3,548 thousand) or more.
Affluent bracket refers to individuals with financial asset holdings with a value between ¥100,000 thousand (US$710 thousand) and ¥500,000 thousand (US$3,548 thousand) or more.
Semi-affluent bracket refers to individuals with financial asset holdings with a value between ¥50,000 thousand (US$355 thousand) and ¥100,000 (US$710 thousand).
Middle class bracket refers to individuals with financial asset holdings with a value between ¥30,000 thousand (US$213 thousand) and ¥50,000 thousand (US$355 thousand).
Lower class bracket refers to individuals with financial asset holdings with a value lower than ¥30,000 thousand (US$213 thousand)
Real Estate Investment by Individual Investors
The ocmpany’s real estate development and sales customers are mainly semi affluent bracket and middle class bracket individual investors who are building assets through real estate investment.
Crowdfunding
The real estate crowdfunding customer base for the Rimawari-kun platform has more than 237,000 registered members who can invest for as little as ¥10,000 (approximately US$70.96) in a real estate investment among a portfolio of real estate investment opportunities offered on the platform. The main customers are mainly people belonging to the lower-class bracket aged 20s-40s who benefit from the speedy online contracting process.
Solar Power Plants
While the majority of SYLA Solar’s clients are individuals, the company plans to expand to corporate clients on the Rimawari-kun platform and cultivate new clients throughout Japan through referrals from existing clients.
Intellectual Property
Trademark
The names and marks SYLA, SYFORME, SYNEX, SENIOR TECH MANSION, Pet Tech Apartments, Rimawari-kun, Supportive Real Estate Crowdfunding Rimawari-kun, MAISON LE REVE, Livers Apartments, and SYLA IoT Apartments appearing in this annual report are the property of the company and are registered tradenames and trademarks of the company in Japan only.
Government Regulation
The real estate development business conducted by the company is regulated by the Building Standards Act, the Construction Business Act, the Real Estate Brokerage Act, the City Planning Act, the Housing Quality Assurance Act, the Rental Real Estate Management Business Optimization law, Act on Advancement of Proper Condominium Management, the Industrial Safety and Health Act, the Consumer Contract Act, the Act against Unjustifiable Premiums and Misleading Representations, and many other laws, ordinances and municipal regulations.
The company’s business involving the construction of buildings is generally subject to the Building Standards Act. The company’s business involving property sales and brokerage of real estate transactions is subject to the Real Estate Brokerage Act. The company’s leasing, development, and reconstruction operations are subject to the Soil Contamination Countermeasures Act.
History
SYLA Technologies Co., Ltd., formerly known as SYLA Holdings Co., Ltd., was founded in 2009. The company was incorporated in Japan in 2009.