Completion of major developments, including the redevelopment around Shibuya Station

「Revenue increased due mainly to improved operating performance at offices and commercial facilities, particularly properties in the Greater Shibuya area,」

「Under our group-wide policy of environmental management, we have identified the three priorities of a decarbonized society, a circular society and biodiversity, and are working to expand business opportunities originating from environmental initiatives.」

「The Housing Development segment posted higher revenue due to an increase in condominium units recognized. Urban (Rental Offices) also posted higher revenue, reflecting the new contribution from Shibuya Sakura Stage (Shibuya-ku, Tokyo), while Urban (Rental Commercial Facilities) benefited from the new contribution of Tokyu Plaza Harajuku “Harakado” (Shibuya-ku, Tokyo). However, due mainly to lower asset sales in Urban—Other and Housing—Other, the segment as a whole reported lower revenue and lower profit.」

「In addition to Shibuya Sakura Stage, major development projects including Forestgate Daikanyama, opened in October 2023, and COCONO SUSUKINO, opened in November 2023, are opening sequentially. We will continue to advance multiple development projects inside and outside the Greater Shibuya Area.」

「The office market had been subject to concerns over shrinking demand for office buildings due to the diversification of work styles, including telework, but remains firm, particularly in the Shibuya area, where we own numerous properties. At the end of the third quarter, the vacancy rate for offices and retail facilities had temporarily risen to 5.7% because tenants at Shibuya Sakura Stage, newly completed in November 2023 in Shibuya-ku, Tokyo, are expected to move in sequentially. Office leasing at Shibuya Sakura Stage is progressing smoothly, with the contracted occupancy rate at approximately 95%.」

「Among properties scheduled to open in the fiscal year ending March 2024, Forestgate Daikanyama is scheduled to open in October, COCONO SUSUKINO in November, and Shibuya Sakura Stage, our Group’s largest project, is scheduled for completion in November and will open in stages. Office leasing at Shibuya Sakura Stage is also progressing smoothly.」

「Shibuya Sakura Stage (Shibuya Station Sakuragaoka Exit District Redevelopment Plan) Office, retail, residential and other uses Scheduled for completion in November 2023 255 thousand m² COCONO SUSUKINO (Sapporo Susukino Station Front Complex Development Plan) Hotel, retail, cinema and other uses Scheduled to open in autumn 2023 53 thousand m² Forestgate Daikanyama (Daikanyama-cho Project) Rental housing, retail, office and other uses Scheduled to open in October 2023 21 thousand m²」

「Kudan Kaikan Terrace, newly completed in July 2022, has already reached a 100% contracted occupancy rate, but the vacancy rate for office buildings and retail facilities temporarily rose to 2.8% due to the effect of tenants that have not yet moved in.」

「The office market remains firm, particularly in the Shibuya area, where we own numerous properties, although concerns have arisen over shrinking demand for office buildings due to the diversification of work styles, including telework. The vacancy rate for office buildings and retail facilities temporarily rose to 2.7% in July 2022, affected by the newly completed Kudan Kaikan Terrace in Chiyoda-ku, Tokyo, but leasing at the property is progressing smoothly.」

「Among major development projects, Tokyo Portcity Takeshiba Office Tower, our Group’s largest office building, opened in September 2020 and has been fully leased and operational since opening. Several development projects are also under way inside and outside the Greater Shibuya Area, including Kudan Kaikan Terrace, scheduled for completion in July 2022, and the Shibuya Station Sakuragaoka Exit District Redevelopment Plan, scheduled for completion in November 2023.」

「The newly opened Tokyo Portcity Takeshiba Office Tower, in Minato-ku, Tokyo, opened fully leased in September 2020.」

「The newly opened Tokyo Portcity Takeshiba Office Tower opened fully leased.」

「Asakusa 2-chome Place has already been handed over to tenants, and Tokyo Portcity Takeshiba Office Tower is scheduled to open fully leased.」

「During the consolidated fiscal year, in line with growth strategy 1 under the Plan, lifestyle-oriented urban development based on the Greater Shibuya Area concept, we steadily advanced major development projects under construction, including the opening of Shibuya Solasta and Shibuya Fukuras and the approval of rights conversion for the Jingumae 6-chome District Type 1 Urban Redevelopment Project.」

「Office market conditions remain firm, and leasing has been completed for all of the main properties listed below. Main properties opened (properties opened in the fiscal year ended March 2020) Use Completion date Total floor area Shibuya Solasta Office March 2019 47 thousand m² Namba Motomachi 1-chome Place Hotel May 2019 5 thousand m² Q Plaza Ikebukuro Retail and cinema July 2019 17 thousand m² Jimbacho Kita Tokyu Building Office July 2019 11 thousand m² Shibuya Fukuras Office and retail October 2019 (scheduled) 59 thousand m² Asakusa 2-chome Hotel Project (tentative name) Hotel March 2020 (scheduled) 6 thousand m²」

「We proceeded steadily with construction and leasing for Shibuya Solasta, completed in March 2019, and Shibuya Fukuras, scheduled for completion in October 2019, among other projects.」

「Construction and leasing activities for the Nanpeidai Project (tentative name), scheduled to open in fiscal 2019 (fiscal 2019 under the Heisei calendar), and the Dogenzaka 1-chome Station Front District Redevelopment Plan are progressing steadily.」

「The period runs through fiscal 2020 (fiscal 2020 under the Heisei calendar), when major development projects, including the redevelopment around Shibuya Station led by the full strength of the Tokyu Group in connection with the Tokyo Olympics, are scheduled for completion.」