Minna De Ooyasan Real Estate Crowdfunding Platform Goes Public Via London SPAC
- Peter Johnson
- Dec 23, 2023
- 2 min read
Bowen FinTech (LSE: BWN), a SPAC formed for the purpose of purchasing entities that operate in the field of tech advancements, particularly within the financial services sector, has signed a conditional, non-contractual accord to acquire 93.49% of the shares issued by MINNADEOOYASAN-HANBAI (MOH).
MOH, set up in 1998 with its headquarters in Tokyo, has been a major player in Japan's crowdfunding services industry and a solution for investors wanting profits from real estate investments. It started its crowdfunding services in 2007 and is regulated by the Real Estate Specified Joint Venture Act.
Over the past 16 years, MOH has procured JPY 217 billion (or approximately £1.3 billion) from Japanese investors, with around JPY 62 billion (equivalent to £378 million) gained during its financial year closing on March 31, 2023.
Kyosei Bank (“KBC”) is the majority owner of MOH, a private Japanese business, and is also connected to a property holding and management company. This creates a pool of projects for MOH to source funds from, and if it has the capacity, might even invest in the buying of land for building.
Besides the regular real estate property categories like residential and business, MOH is working to give financing for high-tech business initiatives, like refrigerated shipping facilities, the newest medical installations and restoring historic cultural parks. It is MOH's goal to construct innovative cold-chain logistics systems in Japan and to eventually extend this model to Southeast Asian countries and beyond, part of its expansion plan.
For the year ending 31 March 2023, MOH was successful with an EBITDA of 519 million yen (approximately £3.2 million) on a revenue of approximately 5.6 billion yen (approximately £34.3 million). According to the six-month management accounts up to 30 September 2023, there was a reported (but unaudited) EBITDA of 2.1 billion yen (approximately £11.6 million) and a revenue of 4.9 billion yen (approximately £27.8 million). As of 30 September 2023, the unaudited net assets were estimated at 4.8 billion yen (approximately £26.4 million).
BWN has concluded a non-legally binding agreement, under condition, to acquire 93.49% of MOH's issued shares from KBC for an estimated £34.47 million to be paid through the issuance of new Ordinary Shares (1p each) at a rate of 15p per share. This Offer Price reflects a 25% increment compared to the closing middle market rate of 12p per Ordinary Share on 21 December 2023, the day before this announcement was released.
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