2018.04.12
TATERU Funding for Investing with only 10,000 Yen per Share Capital-Oriented TATERU AP Fund No.14 to be Created!TATERU, Inc. (head office: Shibuya-ku, Tokyo; representative director/CEO: Daisaku Furuki; securities identification code: 1435; “the company”) announces the decision to create Capital-oriented TATERU AP Fund No.14 under “TATERU Funding” real estate crowdfunding.
Capital-oriented TATERU AP Fund No.14
“TATERU Funding” is real estate crowdfunding allowing investors to easily subscribe with just 10,000 yen per share through the app. Under “TATERU Funding,” the company will launch a public offering of Capital-oriented TATERU AP Fund No.14 on a first-come, first-served basis on April 16, 2018.
Capital-oriented funds allow investors to receive two types of dividends, conventional income gain as well as capital gain from sale of a property. The Capital-oriented TATERU AP Fund No.14 property features “TATERU kit,” IoT tools for rental housing.
＜Capital-oriented TATERU AP Fund No.14＞
| Property | 1 wooden building (9 rooms) |
| Location | 4-159-1, Shin-matsudo, Matsudo-shi, Chiba |
| Month of completion | July 2018 (schedule) |
| Total investment amount | 105 million yen |
| Total amount raised | 73.5 million yen |
| # of shares offered | 7,350 shares (10,000 yen per share) |
| Management period | Tue. May 1 – Fri. August 31, 2018 ※* The fund may be terminated earlier than the scheduled date depending on the management situation of the property. |
| Subscription period | 6:00 p.m., Mon. April 16 – 10:00 a.m., Wed. April 18, 2018 * It ends once the available number is reached on a first-come, first-served basis. |
| Expected annual yields | 4.8% (before tax) Breakdown: Capital gain 4.7%, income gain 0.1% |
| Application fee | None |
| Mid-term cancellation | Possible *Profit distributions are paid to investors as of the last day of calculation period |
| Cancellation fee | None |
What is a capital-oriented fund?
A capital-oriented fund is a product that allows you to ensure two types of dividends, i.e., conventional income gain and capital gain. In addition, you can invest in a pre-completion phase and identify the progress of the construction process on the Web (※), enabling you to experience full-scale apartment management firsthand. Upon completion of the building and short-term asset management, the investment property will be sold to TATERU Apartment members and profits, including capital gains on sale, will be distributed to investors.(※)Limited to investors
To allow not only TATERU Funding members but those interested in real estate investment to manage assets more easily and provide them with highly convenient services, we continue to expand the product lineup and enhance the functions of our app service.
About IoT apartments
TATERU Apartment’s IoT apartment comes standard with TATERU kit that applies IT to rental housing. TATERU kit is composed of five IoT devices, namely, the Central Controller, a tablet-type gateway, Tag Security that detects opening and closing or vibration of the window and notifies a smartphone, Nature Sensor Remote Controller leveraging IR (infrared ray), Smart Lock that can be unlocked in 4 ways and Smart Light, which can control the intensity or color of lighting remotely from anywhere.
The Central Controller deployed in the room not only controls various IoT devices but also supports the tenant’s everyday life by concierge, including trouble such as water leakage or a notification when they vacate the room.
Structure and features of TATERU Funding
・ What is TATERU Funding, a small-lot investment with the unit amount of 10 thousand yen?
It is a real estate investment-type cloud funding with the unit amount of 10 thousand yen. Investments in an apartment will be collected from multiple investors via the Web and gains from our asset management will be distributed to investors.
・ How TATERU Funding works
The client shall sign an anonymous partnership agreement with us as a preferred investor and pay the amount. We shall pay subordinated funds and acquire an investment asset with preferred equity investments combined. Besides returns, such as rent revenue from the investment asset, capital gains on sale of the asset shall be distributed to investors. Profits shall be distributed to preferred investors, that is, the clients, first and the remainder, if any, to us, the subordinated investor.
※ The privity regarding the sales agreement in the image (lower left) shall be added as a capital-focused product emerges.
・ Enhancing safety of preferred investors’ principle
If the appraised value of an investment asset declines, the subordinated investor shall cover the loss and if it is not compensated fully by its principle, preferred investors’ principle will decrease. Unless the appraised value of real estate declines 30% or more from the level at the outset of management, the clients’ principle will remain unchanged.
(The amounts in the fig. are for illustrative purposes only.)
・ A stable and profitable product
As this product is not a product whose prices fluctuate on a daily basis unlike listed stocks or REIT (Real Estate Investment Trust), stability of investments is generally higher than that of the said products. We expect returns to be 3~5% per annum (pretax).
※The image shows a case of expected return of 3%.
※The expected return of 3% is not definitive.
※Neither principle nor expected return is guaranteed.
※Compared with an interest rate of 0.3% per annum for a time deposit.
・ Highly negotiable
Under TATERU Funding, subject to our approval, who is the business operator, the client may cancel the agreement midway or transfer their investment to a third party by themselves. Moreover, no exit fees shall be incurred.
・ Investment assets
Centered on newly built apartments in 14 cities across the nation, TATERU Funding will include vacation rental properties or real estate overseas into investment assets as well.