Establishment of and preparations for the listing of a REIT specializing in commercial land

「The sale of commercial-use land to Es-con Japan REIT Investment Corporation, a listed REIT managed by our group company Es-con Asset Management, Inc., and the sale of multiple rental residences to private funds formed by our group company Es-con Investment Partners, Inc., made a significant contribution to earnings.」

「The investment-cycle business involves selling some of the properties developed and owned by the company to EJR or private funds operated by its subsidiary FUEL, then reacquiring them when the properties become obsolete or the timing is right for redevelopment, and developing products with further added value. The 3 properties acquired this time will all be redeveloped after the expiration of their lease agreements to maximize the value of the land.」

「In the revision of EJR’s “Investment Guidelines” announced in September 2023, the investment policy was based on the view that demand for living in major cities with convenient access to daily necessities and surrounding areas with easy access to major cities remains stable. In addition to previous investments in commercial facilities and the underlying land, the policy now includes investment in housing and in assets that contribute to the realization of a sustainable society, namely initiatives that help resolve the diverse social issues present in the daily lives of local communities. Through investment primarily in “lifestyle-oriented assets” located in the 5 major metropolitan areas, the policy aims to steadily grow assets under management and maximize unitholder value.」

「In August 2021, エスコンジャパンリート投資法人, whose asset manager is the consolidated subsidiary エスコンアセットマネジメント, conducted its second public offering following the one in February 2020, steadily expanding its asset size from ¥41.6 billion at listing to ¥69.6 billion after the offering.」

「EJR conducted its first capital increase since listing in February 2020, increasing its asset size from ¥41.6 billion at listing to ¥51.9 billion after the capital increase.」

「As one of the growth strategies for エスコンジャパンリート投資法人, a support agreement was concluded in September 2019 among 中電不動産, the investment corporation and the asset management company. The agreement provides broad-ranging support, including warehousing functions. By leveraging 中電不動産’s creditworthiness and real estate expertise, we believe it will generate synergies with the Chubu Electric Power Group in the real estate business, benefiting not only the growth of the investment corporation but also our group as its sponsor.」

「As the sponsor of エスコンジャパンリート投資法人, our group will provide full support for improving the investment corporation’s income and achieving stable growth, while pursuing further growth. Chubu Electric Power Company,Incorporated is the investment corporation’s support company.」

「Investment units issued by エスコンジャパンリート投資法人, for which our consolidated subsidiary エスコンアセットマネジメント serves as the asset manager, were listed on the Tokyo Stock Exchange REIT market in February 2019. The investment corporation is a diversified J-REIT whose primary investment targets are “lifestyle-oriented” commercial facilities and the underlying land beneath commercial facilities rooted in local communities.」

「With respect to the investment units issued by エスコンジャパンリート投資法人, for which our consolidated subsidiary エスコンアセットマネジメント serves as the asset manager, Tokyo Stock Exchange, Inc. approved its listing on the Tokyo Stock Exchange REIT market on 25 December 2018, and it was listed on 13 February 2019.」

「In December 2017, エスコンジャパンリート投資法人 completed a capital increase, becoming a private REIT with approximately ¥11 billion in assets, and began preparations for a REIT listing.」

「In August 2016, we established the diversified investment corporation エスコンジャパンリート投資法人, whose primary investment target is the underlying land beneath commercial facilities, and have also been preparing for a listing on the Tokyo Stock Exchange. The REIT aims to secure long-term, stable income through investment primarily in distinctive, community-based commercial land that contributes to the convenience of daily life in local communities.」

「As the second element of our growth strategy, in August 2016 we established the diversified investment corporation エスコンジャパンリート投資法人, whose primary investment target is the underlying land beneath commercial facilities. We are preparing for a listing on the Tokyo Stock Exchange, aiming to create a distinctive REIT that secures long-term, stable income by primarily investing in community-based commercial land rooted in local communities and contributing to the convenience of daily life in those communities.」