Cosmos Initia's Renovation Condo Business Achieves 37% ZEH and Energy-Efficiency Standard Certification, 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 Conservation Standard (*2))" for existing condo projects that commenced construction in fiscal year 2025. This exceeds the company's target of 30%. Furthermore, for 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 residential stock, 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 Conservation 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 Acquiring ZEH/Energy-Efficiency Certification

To help customers easily choose 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 ZEH or energy-efficiency standards. In FY2025, we successfully achieved energy-efficiency standards for condos built in the 1990s and ZEH-level standards for condos approximately 20 years old.

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

● ZEH Level 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 certification is centered on condos built after 2000, and it is often considered difficult to achieve for properties built in the 1990s. By leveraging our expertise as a developer, we have successfully applied equipment used in new condos to 1990s properties, promoting the revitalization of existing 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 in consulting, energy-efficient design, and information gathering on tax incentives and subsidies to create a system that realizes energy-efficient products.

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

With the Ministry of Land, Infrastructure, Transport and Tourism aiming for an average ZEH/ZEB-level energy performance for housing stock by 2050, the need for energy-efficient renovations is expected to grow. Consequently, we have set a target of 60% for the acquisition of these certifications for FY2026. We remain committed to contributing to a sustainable society by promoting energy efficiency in existing housing stock.