-Further Growth Phase for Real Estate Development in Vietnam- Expanding Housing Development in Vietnam through Investment in Local Housing Developer

Nishi-Nippon Railroad Co., Ltd. (hereinafter "Nishitetsu") has invested in Nam Long Apartment Development Company Limited (Headquarters: Ho Chi Minh City, President: Truong Cong Nghia, hereinafter "Nam Long ADC"), a subsidiary of Nam Long Group, a major developer in Vietnam. Nishitetsu will now focus on affordable housing and social housing development (*1) as a new core business. Nam Long Group has a wealth of experience collaborating on previous projects and is a partner company with whom Nishitetsu promotes business together. While previous projects with Nam Long Group involved investments on a project-by-project basis, this investment is made directly in Nam Long ADC, allowing for deeper involvement in business and company operations. Through this equity acquisition, Nishitetsu aims to deepen its partnership with Nam Long Group.

Nam Long ADC is a developer specializing in affordable and social housing development. In Vietnam, housing demand is expanding due to population growth and urbanization, and there is a particular need for the supply of affordable and social housing for the real demand segment. By making this investment and focusing on affordable and social housing, which has solid demand, Nishitetsu will expand its business domain and strengthen its business foundation.

Nishitetsu's overseas development business in Vietnam began with condominium development in Ho Chi Minh City in 2015. Since then, Nishitetsu has advanced a total of 8 projects, including ongoing ones, in collaboration with Nam Long Group. Nishitetsu's Vietnam business has recorded stable operating profits (*2) and is expected to achieve record-high profits in fiscal year 2025. Furthermore, in April of this year, Nishitetsu established a local subsidiary, "NNR Properties Vietnam Co., Ltd.," in Ho Chi Minh City to promote overseas real estate development, thereby building a localized system. With the market expected to expand further and Nishitetsu's business foundation in place, the company aims to advance its development business in Vietnam to a new growth phase, promoting sustainable urban development and expanding its revenue base.

*1 Two brands are offered: "EHome" for affordable housing for middle-income earners and "EHomeS" for social housing for low-income earners that meets government standards.

*2 Operating profit = Operating income + dividends received from business investments, equity method investment gains/losses, etc.

■ About the Investment in Nam Long ADC

[Investment Form] Acquisition of 49% of Nam Long ADC's charter capital (*3)

*3 Charter capital: The total amount of capital invested at the time of company establishment, mainly seen in Southeast Asian countries.

[Investee] Nam Long Apartment Development Company Limited

[Location] 7th Floor, IMV Building, 87 Hoang Van Thai Street, Tan My Ward, Ho Chi Minh City

[Established] 2007

[Representative] Truong Cong Nghia

[Business Activities] Investment and development of affordable and social housing

* 100% subsidiary of NAM LONG LAND INVESTMENT COMPANY LIMITED

(Reference) Overview of housing development projects promoted by Nam Long ADC

* This development overview is subject to change in the future.

Nam Long ADC is currently promoting two projects (EHome Southgate/Anzen).

≪EHome Southgate Project≫

[Location] Tay Ninh Province, Vietnam

[Site Area] 4.5ha

[Number of Units] 1,357 units

[Schedule] August 2021: Phase 1 sales started

June 2025: Phase 3 (final phase) handover started

EHome Southgate Project Local Photo

≪Anzen Project≫

[Location] An Duong District, Hai Phong City, Vietnam

[Site Area] 1.4ha

[Number of Units] 887 units

[Schedule] December 2025: Construction started, Phase 1 sales started

After October 2026: Phase 1 handover started (planned)

Anzen Project Completion Image

≪Nam Long ADC's Expansion Areas≫

Development areas are planned to expand within 2026 (Ha Long City, Dong Nai Province).

(Reference) Overview of Nam Long Investment Corporation

[Company Name] NAM LONG INVESTMEN