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COZUCHI | Real Estate Cloud Funding |  > Safe and secure investment initiatives

Senior-subordinated structure to protect investors

In the senior-subordinated structure, investors invest in the preferred portion and the operator invests in the subordinated portion. The subordinated investment by the operator ranges from 3 to 60%, and the capital of your preferred investment will not be damaged until the entire amount of the subordinated investment is damaged. *The percentage of subordinated investments varies by fund. In some cases, there may be no preferred-subordinated structure.

Use the self-trust system to ensure the preservation of assets held in custody

After consultation with lawyers, judicial scriveners, and other professionals, we will use a system called “self-trust” as one measure to protect investors’ assets. Since the real estate of the subject fund (trust assets) is registered in the name of the trustee (investor) in the real estate registry, the trust assets will not be affected even if the trustee, COZUCHI, becomes unable to repay its debts due to bankruptcy or insolvency. *Self-trust cannot be applied in some cases depending on the fund.

Various efforts to minimize risk

For properties that we judge to have a high vacancy risk, such as properties in rural areas, we aim to reduce the vacancy risk by concluding a master lease*. In addition, we design low-risk products by actively adopting risk management methods according to each project. *A master lease is a lease agreement between an owner and a sublease company.

Reliable achievement

From 2008 to 2018, we have managed a total of about 900 million yen in business utilizing the Real Estate Specific Joint Enterprise Law, the predecessor of “WARASHIBE”, and there has never been any capital loss. In “WARASHIBE” (now COZUCHI), the electronic transaction of the Real Estate Specific Joint Enterprise Law that we started operating in 2019, we manage a total of 109 funds with a total amount of about 82.5 billion yen, and there has also been no capital loss. *Accumulated amount raised as of the end of November 2024.
*No guarantee of future investment results.
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