Syla Technologies enters agreement for business alliance with RIBERESUTE

SYLA Technologies has entered into an agreement to acquire 2,158,800 shares of common stock of RIBERESUTE CORPORATION, a Japan-based developer and seller of family-type condominiums and a corporation listed on the Tokyo Stock Exchange, through off-market transactions from four of its shareholders. SYLA expects that the Share Acquisition will make it the largest shareholder of RIBERESUTE. The Share Acquisition is subject to certain closing conditions and is expected to be completed by mid-January 2024. In conjunction with this Share Acquisition, SYLA today has also entered into a “Basic Agreement on Business Alliance” with RIBERESUTE. The Agreement provides that both companies shall negotiate towards entering into a business alliance agreement with respect to the business or operations of both companies, including the purchase and sale of properties, marketing, and the planning and development of new products. The agreement also provides that RIBERESUTE shall not, without the prior written consent of SYLA, do any of the following acts until March 31, 2024: Enter into a capital alliance with third parties; Introduce existing shareholders to third parties or otherwise facilitate the purchase of shares of RIBERESUTE Group companies by third parties. RIBERESUTE operates in the development and sales of family condominiums primarily concentrated in the southern Kanto region. RIBERESUTE has strategically established its core operations around the development and construction of condominium properties, positioning itself as a manufacturing company leveraging its creative strengths and low-cost business model. In contrast, SYLA operates a prop-tech business centered around the “Rimawari-kun” asset management platform and the development of “Rimawari-kun AI” with the mission to democratize real estate investment around the world. The Company is confident that this strategic business alliance would empower both companies to leverage their distinct strengths and expertise, complement and enhance each other’s business models, and create business synergies. SYLA believes that, through such a business alliance, both companies should aim to forge new growth strategies in the real estate market, elevate their corporate value, and make significant contributions to solving social issues by actively leveraging their combined management resources. In order to promote a business alliance with RIBERESUTE and strengthen the relationship and trust between the two companies, SYLA has agreed with Jun Planning Co., Ltd., which is the “largest shareholder” and “other related company” of RIBERESUTE and is controlled by Junji Kawai, the founder and former CEO of RIBERESUTE, and certain of his relatives, as well as Mr. Kawai and certain of his relatives to acquire in mid-January 2024 an aggregate of 2,158,800 common shares that the Sellers hold.