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 in Nomura Real Asset's management platform, signaling a full-scale expansion into hotel asset investments. 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 firm's 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 firm intends 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 "Osaka Namba Investors G.K.," the buyer. Equity investors include an investment firm 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 flexibility in responding to demand fluctuations with the potential for value creation through operations. Through this transaction, the firm 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 capturing both inbound and domestic demand, the firm aims to secure profit 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, Osaka Prefecture

• Completion: March 27, 2023

• Number of Guest Rooms: 515

• Scale: 34 floors above ground (1 penthouse floor)

• Total Floor Area: 39,131.08㎡

• Primary Use/Facility Composition: Upper-upscale hotel (accommodation, restaurants & bars, spa, banquet/conference event facilities)

• Location/Characteristics: Located in the Minami/Namba area, which has high appeal for domestic and international travelers, with strong affinity for tourism and commercial clusters.