Notice of Conclusion of Contracts to Provide Asset Management and Property Management Services for Large-Scale Logistics Facilities in the Kanto Region

Tosei Corporation (the “Company”: Registered Office- Minato-ku, Tokyo, President and CEO - Seiichiro Yamaguchi, Securities code - 8923) announced that its wholly-owned subsidiary Tosei Asset Advisors, Inc. (“TAA”; Registered Office – Minato-ku, Tokyo, President & Representative Director - Akihiko Fujinaga ) today signed definitive agreements to provide certain asset management services for certain logistics facilities in which real estate funds managed by Blackstone (NYSE: BX) and/or its affiliates (collectively, “Blackstone”) plan to invest on July 12th. Meanwhile, the Company’s wholly owned subsidiary Tosei Revival Investment Co., Ltd. (“TRI": Registered Office - Minato-ku, Tokyo, President & Representative Director - Kaname Wakabayashi) also agreed to provide property management services for certain of these properties.

Conclusion of contract to provide asset management services for certain logistics facilities in the Kanto Area, worth over 80 billion yen

TAA signed definitive agreements to provide certain asset management (AM) services for certain logistics facilities in which Blackstone plans to invest and which are worth over 80 billion yen. The target properties are large-scale logistics facilities located in parts of the Kanto Region with good access to the Tokyo Metropolitan Area such as Kanagawa, Chiba and Ibaraki Prefectures. Blackstone has been engaging TAA to provide certain AM services for residential properties since 2014 but this is the first time TAA has been engaged to provide services for logistics facilities. As a result of this latest contract, the balance of AUM under AM contracts in the Tosei Group’s Fund and Consulting Business increased to approximately 740 billion yen as of July 17, 2019.

Demonstration of synergy among Tosei Group companies, with TRI also contracted to provide property management services for some facilities

Further, TRI agreed to provide property management (PM) services for certaine of these properties. TRI has been engaged to provide PM services before and it was awarded this latest contract in recognition of its track record to date. As a result, the Tosei Group now provides PM services for a total of 11 logistics facilities with a total floor area exceeding 495,868 sqm (150,000 tsubo). The Tosei Group plans to continue expanding PM services in the future.
The Tosei Group began focusing on the demand for logistics facilities being created by the emergence of e-commerce several years ago and has built up a track record in terms of AM and PM services, the development of logistics facilities and investment in overseas logistics facilities. The Group will continue maximizing synergies among Group companies and aim for further growth whilst adapting to the changing times.

<the transition of  AUM>