September 25, 2020

Company name:
Representative:

Inquiries:Tel:

ES-CON JAPAN Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi,Senior Managing Director+81-3-6230-9308

Notice on Formation of Private Fund and Silent Partnership Investment
ES-CON JAPAN Ltd. (ES-CON JAPAN) announces that a decision was made to form the GK Kamikitadai
Ekimae Development Project and GK Fujisawa Development Project (the “SPCs”) as rental apartment
development funds in cooperation with Nisshin Fudosan Company, Limited (Shinjuku-ku, Tokyo; President& Representative Director: Takashi Sakairi) and carry out silent partnership investment in the funds. Details
are as follows.
1. Background and Overview of Silent Partnership Investment
The SPCs will carry out the Kamikitadai Ekimae Development Project and Fujisawa Development Project(the “Properties”) and operate the Properties as rental apartments after the completion of buildings. TheSPCs will grant preferential negotiation rights (the “Preferential Negotiation Rights”) to ES-CON JAPAN tolet ES-CON JAPAN or a party designated by ES-CON JAPAN preferentially acquire the Properties during acertain period.
In 2021, ES-CON JAPAN Group plans to form and commence operation of a private real estate investment
corporation (private REIT (ES-CON Private REIT (tentative name))) with ES-CON Asset Management Ltd.
(EAM), a consolidated subsidiary of ES-CON JAPAN, as the party entrusted with asset management, andES-CON JAPAN is scheduled to exercise the Preferential Negotiation Rights for ES-CON Private REIT
(tentative name).
The land for the Properties will be acquired by Nisshin Fudosan Company, Limited and then transferred tothe SPCs after approval and licenses related to development and construction are obtained. The initiative
will be the first fund formation project in the collaborative securitization business with ES-CON JAPANGroup and Nisshin Group Holdings Company, Limited (Shinjuku-ku, Tokyo; President & Representative
Director: Yukiyoshi Tsutsumi; TSE 1st Section code: 8881).
Under this project, EAM will be entrusted with arrangement, and both Reonas Investment Corporation(Chiyoda-ku, Tokyo; President & Representative Director: Akihiko Sato) and EAM will be entrusted withasset management (advisory and agency).
Even under the current uncertain circumstances amid the COVID-19 crisis, the rental apartment market
remains strong, and ES-CON JAPAN believes that stable needs can continue to be expected. ES-CON
JAPAN aims to form a private REIT as its new initiative by utilizing know-how on condominium development,a strength the ES-CON JAPAN Group possesses.
2. Overview of the Properties
Kamikitadai Ekimae Development ProjectType
Rental apartment
Location
1-2 Kamikitadai, Higashiyamato-shi, Tokyo
specific address is undecided
Access1-minute walk from Kamikitadai Station on the Tama Toshi Monorail Line
Site area
894.34 m2Total floor area
3,042.56 m2 (planned)
StructureRC, 9F (planned)
Asset size
1,500,000,000 yen (based on appraisal value assumed at the time of completion)

1Fujisawa Development ProjectType
Rental apartment
Location
1-1 Kawana, Fujisawa-shi, Kanagawa
specific address is undecided
Access9-minute walk from Fujisawa Station on the JR Tokaido Line and Odakyu Line
10-minute walk from Fujisawa Station on the Enoshima Electric Railway
Site area
1,119.13 m2
Total floor area
2,064.52 m2 (planned)
StructureRC, 5F (planned)
Asset size
1,210,000,000 yen (based on appraisal value assumed at the time of completion)
3. Overview of the SPCs
GK Kamikitadai Ekimae Development ProjectName
GK Kamikitadai Ekimae Development Project
Location of head
Inside Silsphere Accounting Firm,
office1-6-15 Hirakawacho, Chiyoda-ku, Tokyo
Title and name of Representative: General Incorporated Association Kamikitadai Ekimae Development
representative
Takafumi Inaba, Functional Manager
Capital100,000 yen
Established
August 24, 2020
Relationship with ・ ES-CON JAPAN will carry out silent partnership investment of 52.5 million yen
ES-CON JAPANin the SPC.
Group・ ES-CON JAPAN will acquire the Preferential Negotiation Rights as described in
4. below.
・ ES-CON JAPAN will be entrusted with construction management from the SPC
in cooperation with Nisshin Fudosan Company, Limited.
・ EAM will be entrusted with fund formation arrangement for the SPC.
・ EAM will be entrusted with asset management (advisory and agency) for theSPC in cooperation with Reonas Investment Corporation.
GK Fujisawa Development ProjectName
GK Fujisawa Development Project
Location of head
Inside Silsphere Accounting Firm,
office1-6-15 Hirakawacho, Chiyoda-ku, Tokyo
Title and name of Representative: General Incorporated Association Fujisawa Development
representative
Takafumi Inaba, Functional Manager
Capital100,000 yen
Established
August 24, 2020
Relationship with ・ ES-CON JAPAN will carry out silent partnership investment of 52.5 million yen
ES-CON JAPANin the SPC.
Group・ ES-CON JAPAN will acquire the Preferential Negotiation Rights as described in4. below.
・ ES-CON JAPAN will be entrusted with construction management from the SPC
in cooperation with Nisshin Fudosan Company, Limited.
・ EAM will be entrusted with fund formation arrangement for the SPC.
・ EAM will be entrusted with asset management (advisory and agency) for theSPC in cooperation with Reonas Investment Corporation.

24. Details of the Preferential Negotiation Rights
GK Kamikitadai Ekimae Development ProjectContracting party GK Kamikitadai Ekimae Development Project
Date ofSeptember 23, 2020conclusion ofcontract
Main content of
ES-CON JAPAN or a party designated by ES-CON JAPAN can preferentiallyagreement
acquire the Properties if certain requirements are fulfilled during the period until
September 30, 2025. (ES-CON JAPAN plans to exercise the Preferential
Negotiation Rights for ES-CON Private REIT (tentative name).)
SPC asset
Reonas Investment Corporationmanagement
ES-CON Asset Management Ltd.
SPC arrangement ES-CON Asset Management Ltd.
GK Fujisawa Development ProjectContracting party GK Fujisawa Development Project
Date ofSeptember 25, 2020conclusion ofcontract
Main content of
ES-CON JAPAN or a party designated by ES-CON JAPAN can preferentiallyagreement
acquire the Properties if certain requirements are fulfilled during the period until
September 30, 2023. (ES-CON JAPAN plans to exercise the Preferential
Negotiation Rights for ES-CON Private REIT (tentative name).)
SPC asset
Reonas Investment Corporation
management
ES-CON Asset Management Ltd.
SPC arrangement ES-CON Asset Management Ltd.
5. Overview of Companies
Overview of EAMName
Location of head
officeRepresentative
Line of business

CapitalEstablished

ES-CON Asset Management Ltd.
The Okura Prestige Tower 20F,
2-10-4 Toranomon, Minato-ku, Tokyo
Satoshi Omori, President & Representative Director・ Asset management for listed REITs and ES-CON JAPAN REIT・ Investment management and advisory agency concerning real estate funds
・ Arrangement for real estate funds
・ Type II financial instruments business
100,000,000 yen
July 2014

Overview of Nisshin Fudosan Company, Limited
NameNisshin Fudosan Company, Limited
Location of head
5-8-1 Shinjuku, Shinjuku-ku, Tokyo
officeRepresentative
Takashi Sakairi, President & Representative Director
Line of business・Planning and sales of condominiums
Capital
480,000,000 yen
Established
August 20183

Overview of Nisshin Group Holdings Company, Limited
Name
Nisshin Group Holdings Company, Limited
Location of head
5-8-1 Shinjuku, Shinjuku-ku, Tokyo
officeRepresentative
Yukiyoshi Tsutsumi, President & Representative Director
Line of business・ Planning and sales of condominiums (Nisshin Fudosan Company, Limited)・ Construction (overall work including construction of condominiums and civilengineering work) (Tada Corporation)
・ Management of condominiums and rental apartments (Nisshin Kanzai Co., Ltd.)・ Real estate securitization (Nisshin Fudosan Investment Advisors, Inc.), etc.
Capital10.1 billion yen
Listing exchange First Section of the Tokyo Stock Exchange
EstablishedMarch 1975
Overview of Reonas Investment Corporation
NameReonas Investment Corporation
Location of head
Hitotsubashi Building 3F, 2-6-3 Hitotsubashi, Chiyoda-ku, Tokyo
officeRepresentative
Akihiko Sato, President & Representative Director
Line of business・ Formation and operation of funds investing in solar power plants
・ Formation and operation of real estate funds
・ Type II financial instruments business・ Investment advisory and agency
Capital100,000,000 yen
EstablishedMay 2018
6. Impact on Financial Results
There will be minimal impact on the consolidated financial results of ES-CON JAPAN Group.

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