In March and June 2018 Samurai Capital acquired a portfolio of 92 newly built homes in Tokyo and the three neighboring prefectures of Kanagawa, Saitama and Chiba

The portfolio is entrusted and owned as trust beneficiary interest, and financed with a non-recourse loan

The platform will be serialized 2-4 times a year

The rental homes are developed by Arnest One, a major subsidiary of Iida Group, Japan's largest homebuilder (annual sales of ~38,000 homes)

Customized solution to the builder’s long-term strategic goal to establish a stock business aside for-sale development, as well as to cater to investors seeking stable income return via a scalable platform

Long-term fixed rent lease, secured by Arnest One's corporate credit (12-year fixed-term lease contract)

Based on 3rd-party rent assessment by a major Japanese broker-property manager, only assets exceeding a fixed gross return hurdle are selected. After leverage the portfolio ensures net return of over 10%

The fund's acquisition price is at a discount from the market price of newly built homes

Newly built single family rentals are scarce and firm demand can be expected

TK investor's preferred fixed return secured by Arnest One's subordinated equity (5% of total assets) (buffer against potential/asset sale loss)