February 28, 2019
Company name:
Representative:

Inquiries:
Tel:

ES-CON Japan Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi, Senior
Managing Director+81-6-6223-8055

Notice on Launch of Overseas Business with a Commitment toa Hawaii focused Closed-End Real Estate Investment Fund
ES-CON Japan Ltd. (ES-CON Japan) announces that it has decided to start development of its overseas
business by making a commitment to a Hawaii focused closed-end real estate investment fund, as describedbelow.
1. Background and purposeES-CON Japan decided to make this commitment to a Hawaii-focused closed-end real estate investment
fund to start developing the overseas business as its new business field.
The commitment has been made by ES-CON Japan to BlackSand Capital Opportunity Fund II-A L.P.
(hereinafter "the Fund"), a closed-end private investment fund sponsored by BlackSand Capital, LLC(“BlackSand”) that targets real estate opportunistic investments within the State of Hawaii, through ESCON
USA LLC, a subsidiary established in September 2018. ES-CON Japan believes that its commitment to theFund will provide a bridgehead for its entry into the real estate investment business in overseas markets,
including Hawaii, going forward.
Formed in 2010, BlackSand is an SEC-registered investment adviser founded by Bert “BJ” A. Kobayashi,
Jr. and Ian W. MacNaughton, real estate investment and development professionals with experience
leading two long-standing Hawaii-based real estate firms, Kobayashi Group, LLC and The MacNaughtonGroup.
The Fund to be invested in by ES-CON Japan will target investments in a variety of real estate fields
including, but not limited to, retail properties, office buildings, industrial facilities, apartments, hotels and forsale housing in accordance with changes in market conditions. In terms of investment targets, the Fund
looks to real properties, debt/securities, development/redevelopment projects and various other forms ofreal estate assets. As such, ESCON Japan believes that the Fund should be a beneficial investment
instrument.
ES-CON Japan will continue to focus its endeavors on developing new business fields with an eye on
the next era, and globally implement multifaceted real estate business that can contribute to the society.

2. Overview of the Fund and subsidiary
Fund overview
Fund nameBlackSand Capital Opportunity Fund II-A L.P.
Commitment amount US$5 million(by ES-CON Japan)
Sponsors
BlackSand Capital, LLC
Representatives: Bert “BJ” A. Kobayashi, JR (Managing Partner)
Ian W. MacNaughton (Managing Partner)
Location:1288 Ala Moana Blvd., Suite 288, Honolulu, Hawaii 96814
Features, etc.: SEC-registered investment adviser formed in 2010 with an investment objective
to generate attractive risk-adjusted returns by targeting opportunistic investmentsin equity, preferred equity, and debt interests across all property sectors in theState of Hawaii.
Management period 10 years from the Final Closing Date (including the investment period of 5 years from the FinalClosing Date).

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Subsidiary overview
Company nameLocation
Manager

ESCON USA LLC
State of Delaware
Takatoshi Ito

3. Impact on operating results
The impact of the equity investment on ES-CON Japan's operating results is currently not projected.

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