Announcement Regarding the Commencement of Our First Project in the United States

Kasumigaseki Capital Co., Ltd. (Head office: Chiyoda-ku, Tokyo; Representative Director and CEO: Koushiro Kawamoto; hereinafter "the Company") is pleased to announce the establishment of its local subsidiary in the United States, Kasumigaseki US Corporation (Head office: Delaware), and the commencement of its business in Miami as the first step of its US expansion, as detailed below.

We are also pleased to announce the acquisition of development land for a section within Miami Worldcenter, led by local developer Falcone Group, LLC (Head office: Florida), as our first project in the United States.

1. Background of Entry into the United States

To date, the Company has promoted hotel development and renovation projects in Japan with the aim of realizing a tourism-oriented nation and contributing to regional revitalization. We have developed hotel brands nationwide, including multi-person hotels such as 'fav', 'FAV LUX', 'edit x seven', 'seven x seven', and the culture business hotel 'BASE LAYER HOTEL', handling everything from planning and development to operation.

In the US hotel sector, new development has been suppressed since the COVID-19 pandemic, and overall new supply remains at a limited level. On the other hand, travel demand, including inbound and domestic tourists, has exceeded pre-pandemic levels. We anticipate that this improvement in the supply-demand balance will lead to stabilization of the revenue environment and future asset value appreciation.

Under these circumstances, we believe that the Company's strengths, such as its low-cost operating model through labor-saving operations utilizing DX, highly designed spatial planning, and creation of added value through collaboration with diverse content partners in food and culture, can demonstrate competitiveness in the US hotel market, where both operational efficiency and experiential value are required.

Furthermore, in the residence sector, corporate relocations are progressing in the US due to differences in state-specific tax systems and costs, leading to population movement driven by employment. In addition, the diversification of working styles since the COVID-19 pandemic has increased individuals' freedom to choose their place of residence. The convergence of these movements by both companies and individuals has further invigorated inter-city population movement, leading to increased tightness in residence supply and demand in specific areas. As a result, there is a high need for residence supply in these areas, and business opportunities are expanding.

Considering the Company's business foundation and the market environment comprehensively, we have decided to enter the US market and have commenced a mixed-use development project primarily comprising hotels and residences in downtown Miami as the first phase of our expansion.

Moving forward, we will steadily expand our business in the US and aim for further growth, while also considering expansion into other countries.

2. Project Outline

3. Seller's Overview

4. About Our US Local Subsidiary

5. Future Outlook

We believe that the impact on the Company's performance for the fiscal year ending August 2026 will be minor, but we expect it to contribute to the improvement of the Company's performance and corporate value in the future.

■ Company Information

Company Name: Kasumigaseki Capital Co., Ltd.
Established: September 2011
Representative: Koushiro Kawamoto, Representative Director and CEO
Head Office: 28F, Kasumigaseki Common Gate West Tower, 3-2-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-0013
Capital: 54,205 million yen (including capital reserve) *As of end of February 2026
Number of Employees: 398 (non-consolidated) *As of end of February 2026
Main Businesses: Real estate consulting business (logistics facility development, hotel development, healthcare facility development, overseas business)