Establishment of a Private Real Estate Fund Targeting Centara Grand Hotel Osaka

Nomura Real Asset Investment Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Kenji Yamaga; hereinafter "Nomura Real Asset"), Nomura Holdings, Inc. (President and Group CEO: Kentaro Okuda; hereinafter "Nomura Holdings"), and Nomura Real Estate Holdings, Inc. (President and Group CEO: Satoshi Arai; hereinafter "Nomura Real Estate Holdings") announced today the establishment of a private real estate fund (hereinafter "the Fund") targeting the Centara Grand Hotel Osaka (hereinafter "the Property"). Nomura Real Asset will serve as the asset manager for the Fund, overseeing the acquisition and operation of the Property.

This investment marks a significant milestone for Nomura Real Asset's management platform, signaling a full-scale expansion into hotel asset management. Supported by the expertise and human resources of Nomura Holdings and Nomura Real Estate Holdings, Nomura Real Asset currently manages private real estate funds with assets under management exceeding 140 billion yen. The investment strategy focuses on core to value-add assets, providing management services to domestic and international institutional investors, and actively pursuing investment opportunities based on market conditions and investor needs. Moving forward, the company aims to leverage the Nomura Group's network and expertise to develop private-sector products for individual investors, providing investment opportunities that contribute to long-term asset formation and expanding its management structure.

1. Overview of the Transaction

The Fund will acquire the Property through the buyer, "Osaka Namba Investors G.K." Equity investors include an investment company backed by Nomura Holdings and several institutional investors.

Following the acquisition, Nomura Real Asset will respect the hotel's brand value and service quality while collaborating with the operator to enhance profitability in line with demand.

2. Significance of the Transaction

(1) Expansion of Management Scope and Strengthening of Real Asset Management Capabilities

Hotels are assets that combine agility in responding to demand fluctuations with the potential for value creation through operations. Through this transaction, the company will expand its management scope to meet the diversifying needs of investors.

(2) Investment Opportunity Capturing Growth in Osaka as a Tourism Hub

Given the competitive environment for urban hotels that capture both inbound and domestic demand, the company aims to secure revenue opportunities by leveraging the Property's location, scale, and functionality.

3. Overview of the Property

• Facility Name: Centara Grand Hotel Osaka
• Location: 2-6-9 Nambanaka, Naniwa-ku, Osaka-shi, Osaka
• Completion: March 27, 2023
• Number of Guest Rooms: 515
• Scale: 34 floors above ground (1 penthouse floor)
• Total Floor Area: 39,131.08 sqm
• Primary Use/Facility Composition: Upper-upscale hotel (accommodation, restaurants & bars, spa, event functions such as banquet and conference rooms)
• Location/Characteristics: Located in the Minami/Namba area, which has high appeal for domestic and international travelers, with strong synergy with tourism and commercial clusters.