Announcement Regarding the Establishment of a Value-Up Fund for Existing Logistics Facilities

Kasumigaseki Capital Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo, President & CEO: Koushiro Kawamoto, hereinafter "the Company") hereby announces that its subsidiary, Kasumigaseki Asset Management Co., Ltd., has established a value-up fund with three existing logistics facilities as its assets, as detailed below.

1. Purpose of Establishment

The Company is developing refrigerated/frozen warehouses and automated refrigerated warehouses to address challenges in the logistics industry, such as the need for capital investment in refrigerated/frozen warehouse equipment for the 2030 refrigerant regulations, expanding demand for refrigerated/frozen warehouses due to increased consumption of frozen foods, and labor shortages and an aging workforce resulting from the "2024 Problem."

Meanwhile, the logistics real estate market has seen rising vacancy rates and rent adjustments due to increased supply in recent years. However, the supply-demand gap is currently being resolved, and demand is expected to exceed supply around 2027. Furthermore, with rising construction costs, new supply is expected to be limited, leading to expectations of lower vacancy rates and higher rents in the future.

The properties included in this fund are dry warehouses with general specifications located in logistics-favorable areas, including the Tokyo metropolitan area. The aim is to improve asset value through measures such as reducing vacancies and implementing value-up strategies over a holding period of approximately 3 to 5 years.

2. Fund Overview

3. Counterparties and Transaction Price

Information regarding counterparties and transaction prices will not be disclosed due to confidentiality agreements between the Company and its counterparties. There are no capital or personnel relationships with the counterparties that require disclosure, and there are no issues regarding their attributes.

4. Future Outlook

Sales related to the transaction for the establishment of this fund, including fund setup fees and asset management fees, have already been incorporated into the consolidated earnings forecast for the fiscal year ending August 2026.

■List of Planned Logistics Facility Development Properties

■List of Logistics Facility Value-Up Properties

■Logistics Facility Development Track Record (Completed Properties)

Dedicated website: https://logiflag.com/

LOGI FLAG is a warehouse brand developed by Kasumigaseki Capital. We support your business and daily life by providing environmentally friendly and innovative logistics bases in various locations, including multi-tenant logistics facilities compatible with three temperature zones (refrigerated, frozen, and dry), as well as refrigerated/frozen warehouses and automated refrigerated warehouses, and HAZMAT warehouses, in line with the times and customer needs.

*"LOGI FLAG" is a registered trademark of Kasumigaseki Capital Co., Ltd.

■Company Information

Company Name: Kasumigaseki Capital Co., Ltd.
Established: September 2011
Representative: Koushiro Kawamoto, President & CEO
Headquarters: 28F, Kasumigaseki Common Gate West Building, 3-2-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-0013
Capital: 48,586 million yen (including capital reserve) *As of November 30, 2025
Number of Employees: 349 (Consolidated) *As of August 31, 2025
Main Business: Real Estate Consulting Business (Logistics Facility Development, Hotel Development, Healthcare Facility Development, Overseas Business)