Table of Contents
ALTERNA is an asset management service for individuals that allows them to invest in real assets that can be expected to generate stable income such as large-scale real estate, logistics facilities, power plants, and other infrastructure in central Tokyo, using a smartphone. By utilizing digital securities, ALTERNA enables individual investment in small units of 100,000 yen or less in a variety of stable assets(*) for which investment opportunities have been limited to institutional investors, providing a new investment option for individual investors and encouraging them to "shift from savings to investment".
What we want to achieve with ALTERNA
The name of the service, "ALTERNA," reflects our desire to provide an alternative to deposits, listed stocks, and mutual funds (ornatative assets), and in addition, to present a new option as a place to deposit money.
Alternative assets have risk-return characteristics that differ from those of traditional investments in listed stocks and bonds. By incorporating investments in real assets with stable cash flows into their portfolios, institutional investors around the world are expected to benefit from improved investment efficiency, and the amount of alternative assets held by institutional investors around the world continues to grow.
In Japan, for example, the Pension Fund Investment Fund (commonly known as GPIF), the world's largest institutional investor, has been expanding its investment in real assets, especially real estate and infrastructure, in search of yield since it positioned alternative assets as an investment target in 2014.
On the other hand, investment in alternative assets, including large real estate and infrastructure, had limited access only to large institutional investors who could make large investments.
Through the provision of ALTERNA, Mitsui Bussan Digital Asset Management hopes to create an environment where more people can easily invest in alternative assets from their smartphones through the use of digital securities, and to provide new options for those who want to build stable assets for the future. We are looking forward to providing a new option to those who want to build stable assets for the future.
About Digital Securities
The products offered by ALTERNA are digital securities (ST: Security Tokens), which are issued electronically using digital technology, backed mainly by real estate and infrastructure.
The ban will be lifted under the revised Financial Instruments and Exchange Law to be enforced in 2020, and it is attracting attention as a new investment category. Mitsui Bussan Digital Asset Management has managed four cases(*1) to date, offering small-lot beneficiary certificates to individuals through public offerings. The taxation system is also unique in that it is subject to separate taxation (*2), rather than general taxation (miscellaneous income).
*1: You cannot apply on ALTERNA as it is currently in operation.
*2Under current tax law, a securitization scheme using a beneficiary certificate issuing trust satisfies the requirements for a specified beneficiary certificate issuing trust and is then subject to separate taxation on declaration at the beneficiary's option.
Features of ALTERNA
ALTERNA is the first asset management service in Japan that specializes in providing digital securities. The main features are as follows
Provided by Mitsui & Co.
ALTERNA is a new asset management service launched by our company, an asset management company of the Mitsui & Co. group. We will sequentially offer digital securities funds "Mitsui's Digital Securities(*)" in the future.
Stable assets of the same quality as institutional investors
Generally, the investment targets are large-scale real estate and infrastructure that are less prone to price fluctuations than listed stocks, and that are already in stable operation and backed by stable cash flows such as rents. These investments have long been made by institutional investors who have been entrusted to manage them, but with the release of ALTERNA, individual investors will also be able to access them. We will select investment opportunities by utilizing the unique network of the Mitsui & Co. group, which extends both domestically and internationally.
Digital securities enable small investments and minimize investment costs.
ALTERNA offers "digital securities funds" issued using blockchain and other technologies. This enables individual investors to invest as little as 100,000 yen in a variety of stable assets that until now have had limited investment opportunities. ALTERNA has achieved relatively low management costs by thoroughly digitizing its own management operations and developing in-house systems optimized for its own operations.
Completed by smartphone
As long as you have a smartphone, you can complete all procedures, from account opening to investment, paperlessly.
*The securities are originated and sold by Mitsui & Co. Digital Asset Management, Inc. a subsidiary of Mitsui & Co.
About the No. 1 Project
The first project, which will be advertised by ALTERNA, is as follows
| trade (brand) name | Mitsui's Digital Securities - Nihonbashi, Ningyocho - (Restricted Transfer) |
| Number of units issued | 14,720 units |
| Issue Price/Unit of Subscription | 100,000 yen per unit or more in increments of one unit |
| operation period | 4 years and 10 months (planned) |
| Type of securities offered | Security tokens (tokenized securities) representing beneficial interests in a beneficiary certificate issuing trust |
| Expected distribution yield | 3.0%※ |
| trustee | Mitsubishi UFJ Trust and Banking Corporation |
| blockchain infrastructure | Progmat |
| asset manager | Mitsui Bussan Digital Asset Management Co. |
| Handling company | Mitsui Bussan Digital Asset Management Co. |
*The expected distribution yield (pre-tax, annualized) is the average of the first and second fiscal periods and is calculated as "(expected distribution per unit / number of days under management x 365 days) / issue price (100,000)" (rounded to one decimal place), and does not take into account any gain or loss from the sale of properties at the end of the operation.
The expected distribution per unit is 1,079 yen for the first fiscal period (ending October 31, 2023) and 1,504 yen for the second fiscal period (ending April 30, 2024), based on the financial forecasts submitted by the asset manager.
These are current estimates calculated based on certain assumptions. Future changes in the real estate market, fluctuations in interest rates, rent fluctuations based on rent fluctuation clauses in lease contracts, and other changes in circumstances may cause differences from the assumptions, resulting in significant fluctuations in income and distributions. As a result, income and distributions may vary significantly, and the amount is not guaranteed.
<About Investment Properties
The property is located in Nihonbashi Ningyocho, a prime area in Chuo Ward, Tokyo, and is only one year old (as of the end of April, 2023).
Three subway lines are within a 5-minute walk from the building. Easy access to office and shopping areas such as Otemachi and Shibuya
Occupancy rate of 100% (based on floor area) as of March 31, 2023
| Property Name | Stage Grande Nihonbashi Ningyocho |
| Location (residential indication) | 2-17-1 Nihonbashi Ningyocho, Chuo-ku, Tokyo |
| Construction period | April 14, 2022 |
| Total floor space (registry) | 2,417.47m2 |
| Total number of houses | 65 units |
About the future
The total amount of real estate under management by Mitsui Bussan Digital Asset Management amounts to 230 billion yen(*). Of this amount, Mitsui Bussan Digital Asset Management already has more than 220 billion yen(*) in real estate projects that it plans to commercialize in order to offer them as digital securities in the future.
In addition to real estate in Tokyo, we offer diverse real assets such as offices, logistics facilities, power plants, data centers, and telecommunication cables. We will propose a new form of asset diversification.
About Mitsui Digital Asset Management
Mitsui Bussan Digital Asset Management is Japan's first digitally native asset management company, offering a full range of digital securities fund formation, management, and sales services backed by real assets such as real estate and infrastructure. Through the provision of ALTERNA, a service that enables asset management with digital securities, we will provide a new option for those who want to build stable assets for the future.
| name of company | Mitsui Bussan Digital Asset Management |
| Establishment | April 1, 2020 |
| Location | 4F Ningyocho PREX, 1-9-8 Nihonbashi Horidome-cho, Chuo-ku, Tokyo |
| representative | Takashi Ueno, President and Representative Director |
| Member Associations | Japan Securities Dealers Association General Incorporated Association, Type II Financial Instruments Firms Association Japan Investment Advisers Association |
| uniform resouce locator | Corporate website:https://corp.mitsui-x.com/ ALTERNA service site:https://alterna-z.com/ |
<Discrimination
The contents contained herein are prepared solely for the purpose of public announcement of the handling of asset-backed security tokens using the beneficiary certificate issuing trust scheme, and are not intended for the purpose of offering or solicitation for individual financial products, etc., either in Japan or abroad. Offers and solicitations for individual products will be made through ALTERNA using a prospectus.
*Illustrations and examples of assets are future images based on current initiatives, not actual products or services.
Stable assets" refers to real estate, infrastructure, and other assets in which ALTERNA (ALTERNA) plans to offer financial products for investment, with the expectation of achieving stable investment results over the medium to long term through the sustained operation of these assets. The financial products offered by ALTERNA do not guarantee the principal or future investment results.
Please note that there is a prescribed screening process for opening an account.
The risks and other risks described in this page are based on Mitsui & Co. Digital Asset Management, Inc.'s own judgment and assessment based on general risk assessments, etc. Please note that the actual risks and other risks differ for each financial instrument.
*Financial instruments have related special risks, and there is a risk of significant losses (principal loss risk) or losses in excess of the principal amount (risk of loss in excess of the principal amount) due to changes in domestic and international political, economic, and financial conditions, market conditions such as exchange rates, stock markets, commodity prices, and interest rate levels, creditworthiness of the issuer, etc., and other underlying assets used as an indicator ( (Principal Excess Loss Risk).
The value of the financial instruments we handle may fluctuate due to changes in market conditions such as the value of the underlying real estate, interest rate levels, and exchange rates, and there is a risk that the principal amount invested may be lost. Therefore, customers who invest in financial instruments handled by our company are at risk of not receiving expected dividends or incurring losses in excess of the initial principal amount, which may damage the initial principal amount.
The financial instruments we handle differ in terms of risk content and degree of risk due to the characteristics of the financial instruments and the underlying assets (real estate, etc.). Therefore, when applying for a financial instruments transaction contract, please read the pre-contract document, prospectus, etc. carefully and make your own decision on entering into the contract.
Financial products handled by our company are not subject to the cooling-off period (Article 37-6 of the Financial Instruments and Exchange Act does not apply).
When investing in financial products handled by our company, you may be required to bear the prescribed commissions, etc. and other expenses for each product. The specific amount of fees and commissions varies widely depending on the product, transaction amount, transaction method, and other contract terms and conditions, so we are unable to provide specific amounts or calculation methods. For details on commissions, etc., please carefully read the pre-contract document, prospectus, etc. for each financial product.
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