October 17, 2023
Sumitomo Realty & Development Co., Ltd.

Site Acquisition for a Super High-Rise Mixed-Use Urban
Development with Gross Floor Area Exceeding One Million SquareMeters in Mumbai, India's Largest Economic City
Securing a Foothold in an Overseas Growing Market Comparable to Tokyo,
with a Total Project Cost Exceeding ¥500.0 Billion

In addition to expanding investments in the Tokyo market, which has maintained stable growtheven amidst the COVID-19 pandemic, we are actively investing in India, a country with significant
future growth potential and remarkable development, specifically in Mumbai, its economic hub.
Sumitomo Realty & Development Co., Ltd. (Headquarters: Shinjuku, Tokyo, President: Kojun Nishima) is pleased
to announce that on October 16, 2023 (Monday), through our local subsidiary in India, we have independently
acquired a development site of approximately 80,000 square meters (about 24,000 tsubo *1 tsubo ≈ 3.3m2)
in the heart of Mumbai, India’s largest economic city, from Bombay Dyeing, a company under the Wadia
Group, for ¥79.5 billion (¥1.7/rupee).
The site is located in the heart of Worli, the city center of Mumbai, where work, living, and leisure are in close
proximity. It is in an area surrounded by five-star hotels such as the Ritz-Carlton, St. Regis, and Four Seasons,luxury high-rise condominiums, office buildings housing top-tier foreign companies, and high-end shopping malls.
Moving forward, we will advance a “super high-rise mixed-use urban development project,” which will be
the largest urban redevelopment by a Japanese company in India with a total project cost of over ¥500.0billion and gross floor area of over one million square meters, aiming for the full opening of the facilities in
the 2030s.
We will aim to develop a landmark in the rapidly developing India, bringing together the expertise in urban
redevelopment in Tokyo that we have cultivated so far.

Acquired site

Worli

Area around the acquired site

We are aiming to surpass ¥300.0 billion in ordinary profit in the next Medium-term Management Plan. In Japan,
as part of investment for further growth beyond that, we are promoting redevelopment plans with a total gross floorarea of over 700,000 tsubo (over 2.3 million square meters) in central Tokyo, such as Yaesu (the eastside of Tokyostation), Roppongi, and Tsukiji (Ginza East). Overseas, we have successively acquired two of the largest officebuilding sites in BKC, the new city center of Mumbai, since July 2019, and are advancing the office building
development plans with a total gross floor area of approximately 260,000 square meters and an investment scale ofnearly ¥200.0 billion.
With the addition of the super high-rise mixed-use urban development project on the site we haverecently acquired, the total development scale will exceed gross floor area of 1.2 million square meters. As
we establish a foothold in the rapidly growing Indian market, which reminds us of Japan's high-growth
period, we are looking ahead to expanding into businesses such as hotels, retail facilities and residential
development in addition to long-term office leasing business. By reinvesting the revenue from thedevelopment back into India, we aim to build a major base second only to Tokyo.

1. Advantages of the Acquired Property■ Key Areas within Mumbai City

Maharashtra state, which includes Mumbai where we have acquired the development site, boasts the largest
economic scale in all of India's states, along with a population of approximately 126 million, roughly the same as
Japan. The city of Mumbai, the capital of the state, with a population of about 18.4 million people, has flourished asa port town since ancient times and is known as one of Asia’s leading financial centers, with the central bank,
National Stock Exchange (NSE), Securities and Exchange Board, headquarters of various banks, and chambers ofcommerce of various countries.
Furthermore, Mumbai has the highest GDP per capita in all of India's states, with headquarters of many
conglomerates such as Tata and Reliance, along with many employees of large corporations residing there.
The key office areas within Mumbai city are: “Nariman Point”, the former city center at the southernmost tip of
the peninsula, where office development has been progressing the longest in the city and where the Maharashtra
state government and other administrative functions are concentrated; “Worli”, the new city center which once
flourished with textile mills and has developed through the continuous redevelopment of former mills; and “BKC”,
the new city center where the state is leading development to meet the vigorous urban demand beyond thedevelopment of the former two areas.
New city center 2

BKC

AirportNew city center 1

Worli

Former city centerNariman
Point
Source: Google Maps

Key office areas within Mumbai city

■ Large-Scale “Freehold” Land in Downtown Mumbai
The acquired site is a “freehold” land with no restrictions on development use, located in the heart of the new city
center “Worli”. It has a site area of approximately 80,000 square meters (about 24,000 tsubo), which is over six
times the size of the first and second projects in BKC that we have already acquired.
In India, where land registration lacks credibility and it is difficult to eliminate the risk of litigation and otherdevelopment risks, it has been indisputably owned for about 150 years as the property of a textile company owned
by a conglomerate or family business.
The site is located in the heart of the city
center, where work, living, and leisure are inclose proximity, surrounded by five-star hotels
such as the Ritz-Carlton, St. Regis, and Four
Seasons, luxury high-rise condominiums, officebuildings housing top-tier foreign companies,and high-end shopping malls.

■ Mumbai: Achieving Further Development with Enhanced Infrastructure
Efforts are underway in various parts of Mumbai to enhance infrastructure, including the “Indian Shinkansen”, ahigh-speed railway being built using Japanese Shinkansen technology through Japan-India cooperation, that will
cover the approximately 500km distance between Mumbai and Ahmedabad in about 2 hours, the “Mumbai Trans
Harbour Link”, a total extension of about 22 km that will connect the new airport under construction in Navi Mumbaion the opposite shore to the east with the center of Mumbai, the “Sea Link”, a sea bridge bypass where extension
work is progressing on the western coast of the peninsula to avoid traffic congestion in the city, and the “Metro Line3” (scheduled to open in 2024) that will connect major business areas from the current airport area to Nariman
Point via BKC and Worli.
With the development of the transportation network shortening travel times, it is expected to support thecommutes of an increasing number of office workers in the future, and the city's development is expected to further
progress as access to various parts of the world and within India becomes easier.

Source: Google Maps

■ Transportation Hub
Located in “Worli”, which is in the center of the peninsula extending from north to south, this site will benefit themost from the ongoing transportation infrastructure development. Using the “Sea Link” or the “Mumbai Trans
Harbour Link” from this site, it allows smooth travel to the new airport and major business areas while avoiding
traffic congestion.
Furthermore, within walking distance from the site, new stations “Worli”
and “Siddhivinayak” are scheduled to open on Metro Line 3 in 2024, making
the site accessible from 4 stations on 3 lines, including the national railway.
With these enhancements, many people will be able to visit the site not onlyby car, but also using public transportation.

ImageImage

2. Sumitomo Realty's Business in India■ Office Building Development in BKC is Progressing Steadily
In addition to expanding the earnings base centered on theleasing business in central Tokyo, we started the overseas
expansion in India in 2019, with our “Tokyo office building
leasing business” model of acquiring the development site
independently, developing, leasing, managing and owningbuildings by ourselves for the long term.
After acquiring one of the largest office building sites inBKC, the new city center of Mumbai, in July 2019, weacquired an additional site of the same scale in November
2022, and are advancing the office building development
plans with a total gross floor area of approximately 260,000
square meters and an investment scale of nearly ¥200.0
billion for the two properties combined.

BKC site map

The first office building project in BKC, which is thefoothold of our business in India, is currently underconstruction, and the second project is also proceeding withpermit procedures for starting underground construction
after the land handover in August this year. Both projects
are progressing smoothly towards sequential completion
after 2026.

Project 1 in BKC

Panoramic view of BKC(underground excavation isunderway)■ High Profitability Significantly Exceeding the Expected Return on Investment in Tokyo

BKC is being developed as a financial center, with government-affiliated companies, the National Stock Exchange,
major Indian conglomerates, and foreign IT companies moving in. In the future, the Indian Shinkansen, which will
introduce Japanese technology, and new stations for new metro lines are scheduled to open, and furtherdevelopment as a business district is expected.
As positioned in the upper ranks in the JLL Premium OfficeRent Tracker (as of the end of the third quarter of 2022), the rent
for prime office buildings in BKC of Mumbai is at the same level as
central Tokyo. The investment efficiency is expected to yield areturn more than three times that of investment properties
generally traded in Tokyo. We can expect sufficiently highprofitability even when considering risk premiums such as interest
rates and exchange rates.
We believe that the development site in Worli that we acquired
this time can expect even higher profitability due to factors such as(i) we can reduce the land cost per floor area to almost half of theBKC properties through the acquisition of additional FAR (FloorArea Ratio), and (ii) it is a freehold land where large-scale mixed
development without usage restrictions is possible.

■ Aiming to Establish a Major Base Second to Tokyo

Ranking of Office Rent in Major World Cities
RankCity

Occupancy cost

(US＄/sq/year on NLA basis)

1
2
3

Hong Kong, Central
New York, Midtown
London, West End

10111720
2127323437

San Francisco
Singapore
Tokyo, Marunouchi
Delhi, Connaught Place
Mumbai, SBD BKCTokyo, Shibuya
Paris, CityTokyo, Shinjuku
Los Angeles

$114
$110
$103
$99
$97
$87
$80
$78
$76

86
92
129
131

Bengaluru
Delhi NCR, Gurugram
Chennai
Hyderabad

$47
$42
$19
$18$259$220$182

Source: Compiled by Sumitomo Realty, based on JLL Global
Premium Office Rent Tracker (Q3 2022)

Starting with this mixed development project, we are looking ahead to expanding into other businesses such ashotels, retail facilities and residential development in addition to our long-term office leasing business. We willcontinue to further expand our business base in India, bringing together the expertise in redevelopment and various
businesses that we have cultivated so far as a comprehensive real estate company, to build a major base secondto Tokyo.

3. Moving to a New Growth Stage: Further Growth of Leasing Business in Japan (Tokyo) andExpansion of Business Base in India
In response to the end of the COVID-19 pandemic, we announced in May this year to aim to surpass ¥300.0 billion
in ordinary profit in the next medium-term management plan (from the fiscal year ending March 2026 to the fiscal
year ending March 2028), earlier than the long-term outlook forecast originally set out. (Please refer to the “BasicManagement Strategy and Medium- to Long-term Outlook for Sustainable Growth” announced on May 11, 2023.)
Domestically, aiming for further growth beyond that, we have declared a policy of continuing investment inleasing office assets in central Tokyo, which has underpinned sustainable growth to date, and has been promoting
development plans with gross floor area of over 700,000 tsubo (approximately 2.3 million square meters), mainly inredevelopment projects in central Tokyo, such as Yaesu (the eastside of Tokyo station), Roppongi, and Tsukiji(Ginza East).
We will aim to surpass ¥300.0 billion in ordinary profit in the next medium-term management plan andsustainable growth beyond that, with domestic businesses centered on office building leasing in Tokyo, which has
maintained stable growth even in the midst of the COVID-19 pandemic. At the same time, we will expand ourbusiness base in India, which is experiencing remarkable development, by demonstrating our distinctive strengths
unique to our company, and aim to enhance our long-term and sustainable growth. We will strive for businessexpansion in India, which will solidify our growth potential and realize further enhancement of corporate value withthe collective efforts of the Sumitomo Realty Group.

Acquisition List

This acquisition

Project 1 in BKC

Project 2 in BKC

October 2023

July 2019

November 2022

Location

Worli, Mumbai

Bandra East, Mumbai, Maharashtra State

Acquisition value

46.7 billion INR

22.38 billion INR

20.67 billion INR

Yen equivalent79.5 billion JPY

38.0 billion JPY

35.1 billion JPY

Type ofownership

Freehold

Leaseholdfor 80 years

Leaseholdfor 80 years

80,903 sqm

12,486 sqm

11,885 sqm

Approx. 24,473 tsubo

Approx. 3,780 tsubo

Approx. 3,595 tsubo(1 INR = 1.7 JPY)

Site area
Building
Scale

Over 1 million sqm

Over 130 thousand sqm Over 130 thousand sqm(Gross floor area)

Over 300 thousand tsubo

Over 40 thousand tsubo

Over 40 thousand tsubo

Use

Super high-rise
mixed-use development
project

Office building
for leaseOffice buildingfor lease<Reference>
India's Economy and Future Prospects
According to the International Monetary Fund (IMF), India's GDP (Gross Domestic Product) became the 5thlargest in the world in 2021, surpassing the UK, and is predicted to become the 3rd largest economy in theworld by 2027, surpassing Japan and Germany, following the United States and China. Many companies areintensifying their expansion into India, seeing its huge market of over 1.4 billion people and steady economic
growth as business opportunities.
India, which quickly recovered from the economic stagnation
caused by the COVID-19 pandemic and has since continued togrow steadily. According to the “World Economic Outlook
Projections” (October 2023), India's annual percent change in real
GDP is expected to maintain high growth, with +6.3% in 2023 and+6.3% in 2024. In addition, the Indian authorities announced thatIndia's GDP for the April-June quarter was +7.8% year on year,
reaching a high level for the first time in a year.

(Real GDP growth, annualpercent change)

Outlook

2022

2023

2024

World Output

3.5

3.0

2.9

United States

2.12.1

1.5Euro Area

3.3

0.7

1.2

Japan

1.0

2.0

1.0

China

3.0

5.0

4.2

India

7.2

6.3

6.3

Source: Compiled by Sumitomo Realty, based on IMF“World Economic Outlook Projections”(October 2023)