MANAGEMENT STRATEGY

Developer Business Strategy

Grow with Local Communities
by Creating New Value
Have the key to portfolio transformation

Map of Osaka Shinsaibashi area

NagoyaZERO GATE

Yabacho-dori
Wakamiya-odori

Nagahori-dori（North）

WhiteAvenue（South）
midi（South）

Shinsaibashi
ZERO GATE

Parking

Matsuzakaya Nagoya（Main）

NagoyaPARCO（West）“(Tentative name) Shinsaibashi
project” (Planned to becompleted in 2026)（East）

Parking
Daimaru interior building
Musee Air Shinsaibashi

Shinsaibashi
PARCODaimaru
Shinsaibashi（Main）（South）

Shinsaibashisuji

INTEGRATED REPORT 2022

The “(tentative name)Shinsaibashi project” ispromoted by four companies
including Hulic Co., Ltd.,
Takenaka Corporation, JR West
Real Estate & Development
Company, and Parco Co., Ltd. It
is located in a highly visible
place at the intersection ofMidosuji, which is the mainstreet of Osaka, and Nagahoridori in Shinsaibashi.
By rebuilding Shinsaibashi
Plaza Building and Shinsaibashi
Fuji Building, which have long helped attract crowds to theShinsaibashi area, we will develop a complex with stores, ahotel, and offices as a new landmark.
We are planning to invite luxury brands to open (two- tothree-floor) duplex boutiques on its lower floors facing thestreets of Midosuiji and Nagahori-dori. By merging diverse
applications including stores, a hotel, and offices, we aim toattract more crowds to and further revitalize its surrounding area.

Midosuji

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BINO consists of low- and medium-risecommercial facilities transferred to Parco fromDaimaru Matsuzakaya Department Stores Co.
Ltd. in September 2020. Its main focus is on“beauty and health” and it aims to provide
support for beauty “from inside and outside.”
The name BINO is an acronym of the phrase“Beauty Inside aNd Out.”“(Tentative name) Nishiki 3-chome
District 25 project”（Planned to open in 2026）

BINO Sakae

Announced “(tentative name) Shinsaibashi project”
with completion scheduled for 2026

Hisaya-odori

ZERO GATE is a format that specifically focuses on low- and medium-risecommercial complexes in prime locations with one or a small number of tenants.
Going forward, it will utilize these prime locations to introduce a high-rise category
linked to diverse sectors not limited to retail and to create new business schemesthat draw on high visibility levels and DX technologies. Parco has long produced
urban lifestyles based on various themes like fashion and culture, and the nameZERO GATE signals Parco’s desire to return to a “zero point,” a “new beginning,”
to propose new value through the “gate,” the “entrance,” to the district at large.

BINO

Map of Nagoya Sakae area

Otsu-doriZERO GATE

Five companies including Mitsubishi Estate Co., Ltd., Parco Co.,
Ltd., Japan Post Real Estate Co., Ltd., Meiji Yasuda Life
Insurance Company, and The Chunichi Shimbun Newspaper
Publishing Co., Ltd. held a groundbreaking ceremony for theconstruction of the “(tentative name) Nishiki 3-chome District
25 project” at Nishiki 3-chome, Naka-ku, Nagoya in June 13,2022 and began the construction in July 1, 2022. With theconcept of “a domestic and overseas center for creating culturaland exchange value as a new landmark of Nagoya,” it aims tostrengthen the urban function of the Sakae area. The
construction is planned to be completed in March 2026 and its
opening is scheduled for around summer 2026.
The five companies will attract more crowds to its
surrounding area by promoting multitiered urban function
development of the Sakae area such as the invitation of a luxury
hotel, which will contribute to the improvement of urban brandpower promoted by Aichi Prefecture and Nagoya City, andcontribute to strengthening global competitiveness of Nagoya
City in the two core areas including the Nagoya Station area.

Isemachi-doriRendering of “(tentative name) Nishiki 3-chome District 25 project”

The Developer Business in the Group consists of the real estate rental businessthat develops properties and the design and construction contracting businessthat undertakes interior construction work in commercial facilities, hotels, etc.
It is promoting a business strategy in domestic real estate development withthe aim of being an “urban lifestyle developer” that delivers diverse proposals
for urban living and helps create highly attractive urban districts. We are also
taking on the challenge of redeveloping large-scale complexes in the Group’sstrategic priority areas including the Sakae area in Nagoya and the Shinsaibashi
area in Osaka in which the Group’s department stores and Parco stores arelocated as the cores of the areas, tackling diverse applications not limited toretail, and using development mechanisms like fund and asset managementbusiness schemes to create new formats and categories.
For the growth of the Group in the future, the Developer Business will
promote large-scale complex development in the prime locations in which theGroup’s stores are located and also develop diverse applications including
non-commercial ones such as residence, hotels, and hotels as well as its
strong commercial ones.
In order to strongly promote them, the CRE Planning Division was createdin the holding company. It will strive to maximize the value of real estateholdings by developing CRE strategies concerning the real estate development
and real estate holdings of the entire Group and strengthening collaboration
with Parco’s real estate-related division. Thereby we will promote the CRE
strategy by reviewing property portfolio, develop plans concerning theacquisition, disposal, and sale of the real estate held by each company in theGroup, and build and promote new property development schemes to realize
the developer strategy. At the same time, it will play a role in leading theDeveloper Strategy Committee.
For the dramatic growth of the Group for fiscal 2024 and beyond, theDeveloper Business was positioned as one of the key businesses and ¥30.0
billion investment will be made in it during the term of the current Mediumterm Business Plan. Parco and the CRE Planning Division will work together
to promote the strategy.

Began the construction of“(tentative name) Nishiki 3-chome District 25 project”
with opening scheduled for 2026

Condominium development projects
are also in progress
With respect to the development of real estate
applications not limited to commercial ones, inApril 2022, we entered the residence businessand announced the plans to develop
condominiums for lease and sale in Nagoya,
Yokohama, and other cities.

INTEGRATED REPORT 2022

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