GA technologies expands its real estate business into the States by the acquisition of RW OpCo originating in the U.S.

The Company is hoping to strengthen itself in the process of growing as a global industry leader in online real estate business

TOKYO, Jan. 18, 2024 /PRNewswire/ — GA technologies Co., Ltd. (Headquarters: Minato District, Tokyo /CEO: Ryo Higuchi / Securities code: 3491/ “Company”) announced the acquisition of the equity of RW OpCo, LLC (Headquarters: State of Delaware, U.S.A. / CEO: Kevin Ortner / “RW OpCo“) by GA technologies through its U.S. based subsidiary GA technologies USA Inc.

The Company will be acquiring the full ownership of the rental management and investment real estate marketplace businesses originating in the U.S. operated by RW OpCo to make the company the US subsidiary of the Company.

The closing of the acquisition is scheduled on March 1st, 2024. The acquisition shall be executed under a condition that the two parties agreed upon the fulfillment of the conditions mentioned in the Foreclosure Sale Agreement.

Through this management integration, the Company will expand its business foundation in the U.S. area, and firmly establish itself in the online real estate market as a global player.

Key Highlights:

The Company is announcing its decision on the 100% acquisition of the equity of RW OpCo, which owns the 2nd largest SFR (Single-Family Rental) online marketplace business in the U.S.
This management integration will allow the Company to accelerate its speed to become a global player to push its overseas business expansion one step further at 52 locations throughout 6 countries using Renters Warehouse’s network.

Purpose and Expectations of this business synergy

Under the business mission of “Create a world-leading company that inspires people through the power of technology and innovation.” ; the Company is helping to facilitate the digital transformation of the real estate industry of Japan which is still clinging to old fashion ways of business practice such as paper and FAX. The Company is utilizing technology like AI, RPA etc. in order to help the industry to work more efficiently. By transforming the whole real estate transaction fully online, the Company is able to provide customers with a more satisfying transaction experience. Throughout series of action of making digital changes in the traditional market of real estate, the Company has been awarded as a DX (digital transformation) brand from the Tokyo Stock Exchange Growth Market for 3 consecutive years*1.

The investment real estate one-stop service brand “RENOSY” operated by the Company focuses on providing a seamless customer experience incorporating technology such as AI etc. The service supports investors in searching, buying, selling and property management fully online. In a research conducted by TOKYO SHOKO RESEARCH, LTD, “RENOSY” has been the No.1 service in sales performance in the existing apartments market from 2020 to 2023 in Japan*2.

Renters Warehouse, part of RW OpCo, founded in 2007, is focusing on providing the rental management and investment real estate marketplace businesses targeting both individual investors and institutional investors in the U.S. It owns the second largest SFR online marketplace business in the U.S, and has a similar business vision with the Company of incorporating technology into its service in order to provide a seamless customer experience to its stakeholders including investors, residents, and property management companies in the aim of pushing the digital transformation in the real estate industry in the U.S. that is also still evolving.

Through this management integration, the Company is able to step into the U.S. market and expands its business into 52 locations throughout 6 countries through the business network owned by Renters Warehouse. Renters Warehouse manages approximately 13,800 properties under its rental management business, and is expecting to see the Company expand to more different locations with the current network it has centering in major cities in the States.

With a total of 30 trillion*3 dollars, the United States has the biggest Single-Family Rental market in the world in terms of market size. The Company is looking to provide a fast and safe real estate transaction experience with the application of technology along with its global expansion.

About our global business

The Company is based on two major businesses, “RENOSY marketplace business”, and “ITANDI SaaS business” primarily in the real estate industry. The Company has been strengthening itself in all sectors in the industry with an non-organic method through active mergers and acquisitions.

Regarding the overseas business, it acquired the full ownership of “Shenjumiausuan”, which operates a Japanese investment real estate platform targeting investors residing in the Chinese cultural regions, which has a top share in the market, in 2020. It then acquired the full ownership of Dear Life Corporation Ltd, which operates a rental brokerage business in Thailand targeting Japanese expats that have been relocated to Thailand with a top market share in the country*4. The Company has been putting its effort in both national and International business development.

The management integration with RW OpCo will not only accelerate its process of global expansion from Southeast Asia to the United States, but also going to position the Company in a leading position in the online real estate market. It allows the Company to provide a more convenient, safer way of doing business with the implication of technology.

Schedule of the business synergy

Board of Directors Conference	January 19th, 2024
Execution Date	January 19th, 2024
Acquisition Execution Date	March 1st, 2024*5

Comments from the representatives

RW OpCo LLC, representative, Kevin Ortner

We are thrilled about this merger and excited to join forces with the exceptional leadership team of GA technologies. Together, we look forward to building an industry-leading company in the single-family rental industry, enabling us to expand and strengthen our services to our valued investors and residents, driving innovation, and creating lasting value for GA’s stakeholders.

GA technologies Co., Ltd‘s CEO, Ryo Higuchi

Along with the business value of “Create a world-leading company that inspires people through the power of technology and innovation,” we have been working hard on making innovative changes in the real estate industry in Japan for 10 years, since the start of our business in 2013. The market size of investment real estate in Japan is about 65 trillion Japanese yen*6, which is quite massive. It is still important for us to cultivate our domestic business in Japan; however, we do not leave our goals of becoming a global enterprise and providing a world-leading service behind. The ownership acquisitions of a company in Mainland China in 2020, and a company in Thailand in 2021 pushed us towards the goal. This management integration will allow us to step into the investment real estate market of the U.S., which has a market size approximately 9 times*7 bigger than Japan.

Both CEO, Kevin Ortner from RW OpCo and I and all the board members have been talking about this for many times that “Whether you are in Japan or the U.S., we want to make real estate investment easier for people, just like getting started with stock investment.” Renters Warehouse owns the second largest Single-Family Rental online marketplace business in terms of market size in the States. On the other hand, RENOSY is the No.1 service regarding sales performance in the existing investment real estate market field in Japan. Together, we are aiming for the same business goals. We both believe that PropTech is the future trend for the real estate industry; therefore, we truly welcome the joining of Renters Warehouse. Together we will be promoting the idea of PropTech together in the global market.

We are excited to partner up with Renters Warehouse to cultivate the markets for both Japan and the U.S.A. We shall move forward together to achieve our ultimate goals, following our corporate values.

Youtube URL: https://youtu.be/rttz6wSvAmw

About GA technologies Co., Ltd.

Company: GA technologies Co., Ltd.

Representative: Ryo Higuchi

Website: https://www.ga-tech.co.jp/en/

Headquarters: 40F of Sumitomo Fudosan Roppongi Grand Tower, Roppongi 3-2-1, Minato District, Tokyo Year of founding: March 2013

Businesses:

The operation of the investment real estate service “RENOSY”
SaaS type of BtoB PropTech product development
Sub companies: ITANDI Co., Ltd, Modern Standard Co., Ltd, Shenjumiausuan Co., Ltd, and 18 other companies

About RW OpCo, LLC

Company: RW OpCo, LLC

Representative: Kevin Ortner

Website: https://www.renterswarehouse.com/

Headquarters: 1209 Orange Street Wilmington Delaware, F States

Year of Founding: October 2016*8

Businesses: Rental management and investment real estate marketplace businesses

*1 “Digital transformation brand award” awarded for 3 years in a roll / co-hosted by Ministry of Economy, Trade and Industry and Tokyo Stock Exchange : https://ssl4.eir –parts.net/doc/3491/tdnet/2140180/00.pdf

*2 Press release released by GA technologies Co.,Ltd. “Online real estate investment service brand RENOSY tops as No.1 in sales performance in both newly-built, existing apartments market nationally” (releasing date: May 9th, 2023) (https://www.ga –tech.co.jp/news/bucxsh9vzcy31ibr/)

*3 Based on the figures from Nuveen Real Estate “Single-Family Demand”; exchange rate 1USD=145.24 Japanese yen

*4 The size of market share is calculated based on the financial information disclosed by Ministry of Commerce, Thailand

*5 The equity acquisition execution is executed based the fulfillment of the conditions mentioned in the sale agreement

*6 Data reference: “Report of the Analysis about Real Estate Investment: Market size research on investment real estate market / purposes divided particularly about “investment real estate”” conducted by NLI Research Institute (March, 12, 2021)

*7 The market size of SFR for investment purposes in the U.S. is approximately 4 trillion dollars; Exchange rate: 1USD = 145.24 Japanese yen, which is about 581 trillion Japanese yen; The figure is based on the data from Nuveen Real Estate “Single-Family Demand” *8 Date of incorporation of RW OpCo; an operating company that was predecessor to this entity was established in 2007

Media Contact:

Judy Yu

[email protected]