Completion of Investment in 'Furusato Partners,' an Asset Management Company for REIT Formation: Aiming for Regional Revitalization through Active Investment in Accommodation Facilities in the Chugoku Bank Operating Area

Chugoku Bank (Okayama City; President: Sadanori Kato) is pleased to announce that it has completed its investment—the first by a regional bank—in 'Furusato Partners Co., Ltd.' (hereinafter 'Furusato Partners'), an asset management company established for the purpose of forming a REIT, with NBI Holdings Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Takayuki Kanaya; hereinafter 'NBI Holdings') and PROSPER Co., Ltd. (Headquarters: Minato-ku, Tokyo; President: Yozo Tachibana; hereinafter 'PROSPER') serving as main sponsors.

We have participated in the capital of this REIT formation project, which has been promoted by NBI Holdings and PROSPER for regional revitalization, and we aim to begin REIT operations together in 2029.

1. Our Vision for a REIT for Regional Revitalization

Furusato Partners will form a REIT based on the concept of regional tourism revitalization, building a mechanism to collaborate with regional financial institutions nationwide as a platform that enables long-term value creation for regions and areas. Specifically, by accepting investments from regional financial institutions into the asset management company Furusato Partners, each regional financial institution will be able to realize regional revitalization in its own area together with Furusato Partners.

Furusato Partners plans to receive investments from multiple regional financial institutions in addition to Chugoku Bank by the summer of 2026. Chugoku Bank has long been focused on initiatives aimed at regional revitalization, and as a result of building early relationships with NBI Holdings and PROSPER, we have become the first participating bank.

2. Chugoku Bank's Capital Participation and the Potential of the Chugoku/Setouchi Area

NBI Holdings, the founder of Furusato Partners, is a real estate investment management company that aims for regional revitalization through investments in hotels and inns. This participation was realized because the company's commitment to regional revitalization aligns with our bank's philosophy.

This project aims to promote regeneration and revitalization investments that bring out the charm of the region, focusing on properties located in our bank's operating area, such as hotels and inns. This initiative, which circulates funds from inside and outside the region into the local tourism industry, contributes to the sustainable development of the regional economy by combining the real estate finance expertise we have cultivated with the real estate investment know-how possessed by NBI Holdings.

The Chugoku/Setouchi area has the potential to become one of the leading tourism areas in Japan, possessing the scenery of the Seto Inland Sea with its beautiful archipelago, historical and cultural assets, a mild climate, and a rich food culture. In recent years, attention has been growing on stay-type and high-value-added tourism, attracting high interest from both Japan and abroad. By maximizing the charm and potential of this area, as a 'true regional revitalization company' aimed at by NBI Holdings, we will effectively utilize the charm and resources of the region and enrich the future of the Chugoku/Setouchi area with the 'vitality of finance and investment.'

3. Comments from Speakers

On Friday, May 29, a joint press conference was held at the Chugin Station Front Building (Kita-ku, Okayama City).

NBI Holdings President Kanaya:
'I am very pleased to welcome Chugoku Bank as the first regional bank to participate in Furusato Partners.'

'Through the REIT mechanism, we hope to create a system where investment funds, which are currently concentrated in urban areas, flow into regional areas, and by realizing long-term sustainable regional revitalization, we want to make the future of Japan richer. With this partnership with Chugoku Bank, we will do our best to return our initiatives to the Setouchi area.'

Chugoku Bank Director and Managing Executive Officer Seimyoji:
'The charm of Setouchi is not limited to its gentle natural scenery and archipelago beauty. It has a very unique structure where historical assets, food culture, and towns and islands with individual personalities are connected, and the value increases by traveling around.'

'On the other hand, local accommodation operators are facing structural issues such as facility aging and succession problems. We believe that this is where the role of financial institutions lies. We believe that it is necessary to engage in initiatives that increase the value of tourism assets themselves and operate them over the long term, not just through loans, but through the provision of capital and involvement in the business. Participation in this REIT formation is the first concrete step toward that.'

4. Future Outlook

Furusato Partners plans to begin REIT operations in the summer of 2029. At the time of the start of operations, we assume an asset size of 50 billion yen for the REIT, and we aim to grow to a scale of 200 billion yen in about five years thereafter.

NBI Holdings, the sponsor of Furusato Partners, has already secured a pipeline of over 40 billion yen in inns and hotels, which confirms the social demand for regional revitalization and the abundance of value-up investment opportunities in inns and hotels.

In the future, through our partnership with NBI Holdings and PROSPER, we aim to discover investment opportunities in accommodation facilities that contribute to regional revitalization even in Chugoku Bank's operating area, and by utilizing the planned REIT, we aim to support the local tourism and accommodation industries from a long-term perspective.