December 2, 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 it will form the GK Keio Inagi Ekimae Development
Project (the “SPC”) as rental apartment development funds and carry out silent partnership investment inthe funds, following GK Kamikitadai Ekimae Development Project and GK Fujisawa Development
Project(press release announced on September 25, 2020 *). Details are as follows.
1. Background and Overview of Silent Partnership Investment
The SPC will carry out the Keio Inagi Ekimae Development Project (the “Property”) and operate theProperty as rental apartment after the completion of building. The SPC will grant preferential negotiationright (the “Preferential Negotiation Right”) to ES-CON JAPAN to let ES-CON JAPAN or a party designatedby ES-CON JAPAN preferentially acquire the Property during a certain period.
In 2021, ES-CON JAPAN Group plans to form and commence operation of a private real estate investmentcorporation (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 Right for ES-CON Private REIT
(tentative name).
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 continue to aim for a private REIT composition by utilizing know-how on condominium development,a strength the ES-CON JAPAN Group possesses.
2. Overview of the Property
Keio Inagi Ekimae Development ProjectType
Rental apartment
Location
3106-4 Higashinaganuma, Inagi-shi, Tokyo
Access2-minute walk from Inagi Station on the Keio Sagamihara Line
Site area
320.46 m2Total floor area
1,506.18 m2 (planned)
StructureRC, 7F (planned)
Asset size
800,000,000 yen (based on appraisal value assumed at the time of completion)
3. Overview of the SPC
GK Keio Inagi Ekimae Development
NameGK Keio Inagi Ekimae Development Project
Location of head
Inside Silsphere Accounting Firm,
office1-6-15 Hirakawacho, Chiyoda-ku, Tokyo
Title and name of Representative: General Incorporated AssociationKeio Inagi Ekimae Development
representative
Takafumi Inaba, Functional Manager

1Capital
Established
Relationship with
ES-CON JAPANGroup

100,000 yen
September 12, 2020
・ ES-CON JAPAN will carry out silent partnership investment of 20 million yen inthe SPC.
・ 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.
・ 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.

4. Details of the Preferential Negotiation RightGK Keio Inagi EkimaeDevelopment
Contracting party GK Keio Inagi Ekimae Development Project
Date ofDecember 2, 2020conclusion ofcontract
Main content ofES-CON JAPAN or a party designated by ES-CON JAPAN can preferentiallyagreement
acquire the Properties if certain requirements are fulfilled during the period until
May 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 EAM
Name
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 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

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6. Impact on Financial Results
There will be minimal impact on the consolidated financial results of ES-CON JAPAN Group.
*For details on the Formation of private funds and silent partnership Investment in GK Kamikitadai
Ekimae Development Project and GK Fujisawa Development Project, please refer to the "Notice onFormation of Private Fund and Silent Partnership Investment" announced on September 25, 2020.

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