AD Works Concludes Property Acquisition Agreement for Joint Investment in Large-Scale Real Estate Project with Nankai Electric Railway Co., Ltd.

AD Works Group Co., Ltd. (Location: Chiyoda-ku, Tokyo; Representative: Hideo Tanaka, Representative Director and CEO)'s subsidiary, AD Works Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative: Shunya Suzuki, Representative Director and President; hereinafter "ADW"), which develops income-generating real estate businesses, has jointly with Nankai Electric Railway Co., Ltd. (Location: Osaka City, Osaka Prefecture; Representative: Nobuyuki Okajima, Representative Director and President; hereinafter "Nankai Electric Railway") concluded an agreement on March 27 for the acquisition of a large-scale income-generating property in Tokyo. We are also pleased to announce that, accompanying the acquisition of this property, ADW has been comprehensively entrusted with asset management services to lead the value enhancement of this property.

This project marks the first asset management case aimed at realizing non-asset businesses, which are envisioned from the fiscal year ending December 2027 onwards. Going forward, we aim to accelerate our full-scale entry into fund businesses, such as private fund businesses, to maximize capital efficiency and build a robust revenue base.

1. Background and Purpose of this Project: Transition to the "Execution Phase" of Growth Strategy

In our "Growth Strategy for Enhancing Corporate Value" announced on February 12, 2026, our group outlined the promotion of "non-asset businesses (private fund businesses, etc.)" as a policy for expanding our business portfolio for medium-to-long term growth from the fiscal year ending December 2027 onwards. This project is intended to elevate this growth strategy from "conception" to the "execution phase."

Furthermore, Nankai Electric Railway operates railway and real estate businesses centered in Namba, Osaka, and has set "dramatic expansion of the real estate business" as one of its key strategies in its mid-term management plan (due to the spin-off of the railway business, the company name is scheduled to change to "NANKAI Co., Ltd." on April 1, 2026). Against this background, an agreement was reached to implement this joint investment.

Through a joint investment scheme with Nankai Electric Railway, which possesses strong capital, ADW can more stably promote its entry into the market for "large-scale real estate exceeding 5 billion yen" than it could on its own. This aims to maximize opportunities for revenue acquisition while reducing the burden on our group's balance sheet, and to extend our strengths in "real estate appraisal and sourcing capabilities," "ability to enhance real estate value after purchase," and "long-term operation know-how" into the non-asset business domain.

2. Project Overview

Property Overview

Residential property in Tokyo's 23 wards

Investment Ratio

Nankai Electric Railway 70% / ADW 30%

Our Role

① Investment as a joint venture partner (30%)

② Project operation and management

(Asset management function)

Purchase Agreement Date

March 27, 2026