Cosmos Initia's Renovation Condo Business Achieves 37% Acquisition Rate for ZEH and Energy-Efficiency Standards, Exceeding 30% Target

Cosmos Initia Co., Ltd. (Headquarters: Minato-ku, Tokyo; President: Ryotaro Takachi), a Daiwa House Group company, is pleased to announce that its renovation condo business, "INITIA & Renovation," has achieved a 37% acquisition rate for the "Housing Energy Efficiency Performance Certificate (ZEH level(*1) / Energy-Efficiency Standard(*2))" for existing condo projects that commenced construction in fiscal year 2025. This exceeds the company's target of 30%. Furthermore, for residential units previously sold by the company, the acquisition rate reached 50%.

■ 37% Acquisition Rate for ZEH/Energy-Efficiency Standards in FY2025 Projects; 50% Achieved for Previously Sold Units

Through condo renovations, our company aims to address issues such as vacant and aging housing by revitalizing and effectively utilizing existing homes, while also promoting energy efficiency as a measure against environmental challenges. In our "INITIA & Renovation" business, we set a target of 30% for the acquisition of the "Housing Energy Efficiency Performance Certificate" for projects starting in FY2025. We have now reached 37%, successfully meeting our goal. For units previously sold by our company, the acquisition rate reached 50%.

*1. ZEH Level: Housing that meets building insulation and equipment standards, with insulation performance grade 5 or higher and primary energy consumption grade 6 or higher.

*2. Energy-Efficiency Standard: Housing that meets building insulation and equipment standards, with insulation performance grade 4 or higher and primary energy consumption grade 4 or higher.

■ Specific Initiatives for Achieving ZEH/Energy-Efficiency Standards

To help customers easily select energy-efficient homes, we obtain evaluations and labeling through "BELS" (Building-Housing Energy-efficiency Labeling System), a third-party certification, for renovation condos that meet these standards. In FY2025, we successfully achieved energy-efficiency standards for condos built in the 1990s and ZEH-level performance for condos approximately 20 years old.

●Energy-Efficiency Standard Achievement Example: Kitasenju Flats (Built in 1995, renovated in 2025)
To enhance insulation, interior windows were installed in the living/dining area and adjacent rooms. High-efficiency equipment was adopted to meet the energy-efficiency standards.

●ZEH Level Achievement Example: Shibaura Island Grove Tower (Built in 2006, renovated in 2025)
The building already possessed high insulation properties, and the adoption of high-efficiency equipment allowed it to reach ZEH-level standards.

■ Features of INITIA & Renovation

●Leveraging Expertise as a Condo Developer to Actively Renovate 1990s Properties
Generally, ZEH/energy-efficiency standard acquisitions are centered on condos built after 2000. However, by utilizing our expertise as a developer, we have successfully applied equipment used in new construction to 1990s-era condos, promoting the revitalization of existing housing stock.

●Four-Company Collaborative Framework
We have established a collaborative framework with YKK AP Inc., u.company Inc., and NCN Co., Ltd. to promote energy efficiency. Each company contributes its expertise—ranging from consulting on building materials and energy-efficiency strategies to architectural design—to create a system that realizes energy-efficient products.

■ FY2026 Target Set at 60% for ZEH/Energy-Efficiency Standards

Given the urgent need for energy efficiency in the housing sector and the government's goal of achieving average ZEH/ZEB-level performance for housing stock by 2050, we have set a target of 60% for the acquisition of these certifications in FY2026. We remain committed to contributing to a sustainable society by promoting energy efficiency in existing housing stock.