Daishin Securities Launches 29 Billion KRW REITs Public Offering for Japan 'Residence Investment'

‘Daesin Japan Residence REIT No.1'
Subscription for 3 days from the 20th
Targeting up to 7% annual average dividend

Daishin Securities is launching a public offering of an unlisted REIT investing in residences located in Tokyo, Japan.

Daishin Securities announced on the 16th that it will conduct a three-day subscription starting from the 20th for the unlisted public REIT "Daishin Japan Residence REIT No.1," which invests in 10 residential properties in prime areas of Tokyo.

This is the first public REIT by Daishin Financial Group investing in Japanese real estate assets. It aims for an average annual dividend yield of up to 7% and capital gains.

Daishin Financial Group will participate as a common stock investor, and the structure is designed so that even if the occupancy rate of the underlying assets decreases and dividends decline, public investors will receive dividends before those returned to Daishin Group. Through this structure, investors can expect stable dividend income.

The investment target areas include Minato-gu, Chuo-ku, and Shibuya-ku, where high rental demand and real estate value appreciation are expected. Transportation, convenience of living, and educational environment are also excellent.

The underlying assets are general mansions, the most in-demand type of housing in Tokyo. Nine out of the 10 properties are newly constructed buildings completed after 2020, with an average vacancy rate of about 5%. Japanese residences have a mandatory tenant guarantee insurance system, which lowers the risk of rent arrears and non-payment.

The issue price of this REIT is 5,000 KRW per share, raising a total of 29.055 billion KRW. The operation period is five years, and dividends are paid semiannually. The public offering can be participated in through Daishin Securities branches and online platforms Cybos and Creon. If the subscription exceeds the target, allocation will be made according to the subscription competition rate. The management fee for this product is 0.6% per year.

Ahn Seok-jun, head of the Retail Solutions Department at Daishin Securities, said, "Since last year, foreign capital inflow into the Japanese real estate market, centered on the housing market, has continued. This Japan Residence REIT will invest in core areas with high rental demand, providing opportunities to enjoy dividend income through rent and capital gains."

This product is a performance-based dividend product whose profit and loss depend on operating results and is not protected by the Korea Deposit Insurance Corporation under the Depositor Protection Act. There is a possibility of principal loss, and the risk is entirely borne by the investor. Also, as a closed-end nominal company, redemptions are generally restricted.

This content was produced with the assistance of AI translation services.