AD WORKS Signs Property Acquisition Agreement for Large-Scale Real Estate Project with Nankai Electric Railway Co., Ltd.

AD WORKS Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President & CEO: Toshinari Suzuki), a subsidiary of AD WORKS GROUP Co., Ltd. (Location: Chiyoda-ku, Tokyo; President & CEO: Hideo Tanaka), which develops income-generating real estate business, has signed an agreement on March 27th with Nankai Electric Railway Co., Ltd. (Location: Osaka City, Osaka Prefecture; President: Nobuyuki Okajima; hereinafter referred to as "Nankai Electric Railway") for the joint acquisition of a large-scale income-generating property in Tokyo. Furthermore, with the acquisition of this property, ADW will be entrusted with the comprehensive asset management operations to lead the value-up of this property, and we hereby announce this.

This project will be the first asset management case to realize our non-asset business, which we are looking towards from the fiscal year ending December 2027 onwards. We will continue to accelerate our entry into full-scale fund businesses such as private fund operations, aiming to maximize capital efficiency and build a strong revenue base.

1. Background and Objectives: Transition to the "Execution Phase" of Growth Strategy

In our "Growth Strategy for Enhancing Corporate Value" announced on February 12, 2026, our group has set forth the promotion of "non-asset business (private fund operations, etc.)" as a policy for expanding our business portfolio for medium- to long-term growth from the fiscal year ending December 2027 onwards. We intend to elevate this growth strategy from the "concept" to the "execution phase" starting with this project.

Nankai Electric Railway operates railway and real estate businesses centered in Osaka-Namba, and has set "dramatic expansion of the real estate business" as one of the key strategies in its medium-term management plan (scheduled to change its trade name to "NANKAI CORPORATION" on April 1, 2026, due to the spin-off of its railway business).

Through this joint investment scheme with Nankai Electric Railway, which possesses strong capital, ADW can more stably enter the market for "large-scale real estate exceeding 5 billion yen" than it could on its own. This will allow us to maximize profit opportunities while reducing the burden on our group's balance sheet, and expand our strengths in "real estate appraisal/sourcing capabilities," "post-acquisition property value enhancement capabilities," and "long-term management know-how" into the non-asset business domain.

2. Project Overview

Property Overview

Residential property within the 23 wards of Tokyo

Investment Ratio

Nankai Electric Railway 70% / ADW 30%

Our Role

① Investment as a joint venture partner (30%)

② Project operational management

(Asset Management Function)

Purchase Agreement Date

March 27, 2026

Settlement Date

May 15, 2026 (scheduled)

Scheme Image

3. Strategic Significance and Future Outlook

Our group aims to establish market trust and evaluation by quickly building an operational track record for large-scale real estate exceeding 5 billion yen through joint investment schemes and the acceptance of asset management operations, starting with this project, in order to accelerate our entry into full-scale fund businesses such as private fund operations. In the future, based on our accumulated operational track record, we aim to generate non-asset revenue by undertaking asset management operations from domestic and international institutional investors and corporations. By doing so, we aim to maximize capital efficiency and profit opportunities while leveraging our group's strengths, without being constrained by our own capital.

AD WORKS GROUP Co., Ltd.

The ADWG Group, consisting of AD WORKS GROUP Co., Ltd. and its subsidiaries (operating companies), is an investment solutions company centered on real estate, headquartered in Tokyo with offices in Osaka, Fukuoka, and Los Angeles.

Its current company name originates from "Aoki Dyeing Works," stemming from its founding in 1886 as the "Aoki Dyeing Factory," a history of nearly 140 years that is widely known among its employees.

In 2024, the company has set forth "Dyeing the world vibrantly with flexible creativity that transcends boundaries" as its unwavering guiding star (Polaris), and its vision for 10 years from now is to "Create a cycle of wealth and a society where everyone can ignite their inner fire," with targets of "20 billion yen in profit before tax / 40% BtoC share."

Company Name: AD WORKS GROUP Co., Ltd. Location: Hibiya Kokusai Bldg. 5F, 2-2-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo Representative: Hideo Tanaka, President & CEO Established: February 1886 Stock Code: 2982 (Prime Market, Tokyo Stock Exchange) URL: https://www.adwg.co.jp/