Notice Regarding Commencement of First U.S. Expansion Project

　Kasumigaseki Capital Co., Ltd. (Head office: Chiyoda-ku, Tokyo; President and CEO: Koshiro Kawamoto; hereinafter "the Company") hereby announces that it has established a local subsidiary, Kasumigaseki US Corporation (Head office: Delaware; hereinafter "U.S. Local Subsidiary"), in the United States and has commenced operations in Miami as the initial step in its U.S. expansion, as detailed below.

　We also announce the acquisition of development land 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 U.S. Market

　Up to now, 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 '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 U.S. hotel sector, new development has been suppressed since the COVID-19 pandemic, and overall new supply remains limited. Meanwhile, travel demand, including inbound and domestic travelers, has exceeded pre-pandemic levels. We anticipate that this improvement in the supply-demand balance will lead to stable revenue environments and future asset value appreciation.

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

　Furthermore, in the residence sector in the U.S., corporate relocations are progressing 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. As the movements of both corporations and individuals overlap, inter-city population movement is becoming even more active, and the sense of tight supply and demand for residences is increasing 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 market environment comprehensively, we have decided to enter the U.S. market, and as the first step in this expansion, we have commenced a mixed-use development project primarily featuring hotels and residences in downtown Miami.

　Moving forward, we aim for further growth by steadily expanding our business in the U.S. and considering expansion into other countries.

2. Project Overview

3. Seller Overview

4. About Our U.S. Local Subsidiary

5. Future Outlook

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

■Company Information

Company Name: Kasumigaseki Capital Co., Ltd.
Established: September 2011
Representative: President and CEO Koshiro Kawamoto
Head Office: Kasumigaseki Common Gate West Tower 28F, 3-2-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-0013
Capital: 54,205 million JPY (including capital reserve) *As of February 29, 2026
Number of Employees: 398 (non-consolidated) *As of February 29, 2026
Main Business: Real estate consulting business (logistics facility development, hotel development, healthcare facility development, overseas business)