Profits and Alpha Edge Capital Acquire Two Office Properties in Higashi, Shibuya and Shinjuku Gyoen through an SPC Collaboration

Profits (Headquarters: Chiyoda-ku, Tokyo; CEO: Shinichiro Tanaka) and Alpha Edge Capital (Headquarters: Chiyoda-ku, Tokyo; CEOs: Masaki Chiba, Tomofumi Segawa) have jointly acquired two office properties located in the Higashi, Shibuya and Shinjuku Gyoen areas of Tokyo through a special purpose company (SPC) funded by Haseko Sogo Kaihatsu.

At these two properties, the companies aim to enhance value by renovating vacant office space into shared offices and integrating the asset management functions of Profits, sub-asset management of Alpha Edge, and operational functions of Profits' affiliate, RJ Office. (Acquisition date: April 2026)

## Strengthening Collaboration with Alpha Edge
Profits and Alpha Edge have been working to strengthen their 'strategic property acquisition structure' as part of the real estate collaboration announced in 2025.

This project was realized under this structure by combining Profits' investment planning and asset management capabilities with Alpha Edge's investor network and acquisition support functions.

## Creating New Value from Vacant Space
Profits has been involved in planning and operating workplaces, including private offices, shared lounges, meeting rooms, and web booths, through the deployment of its 'BLOCKS OFFICE' shared offices.

This initiative is characterized by utilizing vacant spaces within existing office buildings occupied by tenants, rather than the entire building, to improve Net Operating Income (NOI). By providing property management that is convenient for users and profitable for investors, they aim to create new value for existing office buildings.

## Overview of Target Properties
- **TBC Building**
- Location: 2-27-10 Higashi, Shibuya-ku, Tokyo
- Building Floor Area: 1,498.84 sqm
- Floors: 7 floors above ground
- Year of Completion: September 1984

- **Uni-works Shinjuku Gyoen**
- Location: 1-12-5 Shinjuku, Shinjuku-ku, Tokyo
- Building Floor Area: 2,166.80 sqm
- Floors: 1 floor below ground, 6 floors above ground
- Year of Completion: April 1985

## Deployment of Value-Up Model via AM and Operational Integration
In this project, RJ Office will feed user needs and operational data obtained on-site back to Profits' asset management team. This information will be integrated into operational policies, renovation plans, leasing strategies, and space design.

Profits will continue to comprehensively evaluate the location, floor layout, and operational improvement potential of existing office buildings, mainly in city centers, to consider various value-up measures, including conversion to shared offices. Furthermore, through collaborations with external partners like Alpha Edge, they will continue to create real estate investment opportunities that meet the diverse needs of investors.