20170321strategic real estate business dept

Introduction of Strategic Real Estate Business Dept.

March 21st, 2017

１. Organization Chart

1

Materials, Supplies &

Real Estate Div.

Business Lines of Materials & Supplies（3Dept.）

Building & Overseas Real Estate Business Dept.

Strategic Real Estate Business Dept.（Number of Staffs: 39）

Sumisho Realty ManagementNumber of Staffs: 37

（Including Dispatched Staffs： 9）

Housing & Urban Development Business Dept.

Retail Facilities Dept.

Real Estate & Construction Dept., Osaka

２. Business Model（Core Business）

2

S.C. Building Service Group

Building & Overseas Real Estate Business Dept.

Establish and Management of Real Estate fund

Private Fund Private REIT

（２）Funds（Sumisho Realty Management）

（１）Commercial Real Estate development business, mainly targeting for“Built-To-Suit(BTS) of Retail Facilities” & “Logistic Real Estate”

（２）Real Estate fund based on Division’s “Hands-on” pipeline including oudepartment

Retail Facilities Dept.

Housing & Urban Development Business Dept.

Strategic Real EstateBusiness Dept.

Sumisho Urban Kaihatsu

SUMISHO TATEMONO

Strategic Real Estate BL

（１）-1.BTS （Retail facilities, Hotels etc.）

（１）-2.Logistics Facilities Development Business

（SOSiLA)

《Development》《PBM事業》《Fund》

２．Core Business（Business Model）

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（１）-1.Introduction of BTS

Definition of “BTS”

It is tailor-made type of business we develop for the order from each tenants.We will engage in wide-ranging type from ordinary BTS acquiring land to built to land lease type(Both “lessor and lessee.)

Master LeaseCo-Work from Planning Phase

Sign a lease contract after beginning of construction Succession a lease contract

Tenant(ex. Retail Facilities Operator)

Retail facilities

SC Investor

Summit Store, Mukodai-cho / Kojima × BIC CAMERA, Nishi-Tokyo VIVA HOME, Adachi-shinmei Homecentor KONAN, Odasakae, Kawasaki


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（１）-2. Introduction of Logistics Facilities Development Business （SOSiLA )

Aiming for a logistic facility connectingpeople and society

SOSiLA Narashino Akanehama IIILogistic Facilities Development

Address : Kamiyama 1, Midori-ku, Yokohama-shi, Kanagawa-ken Nearest station : Nakayama Station, JR Yokohama Line and Yokohama

Municipal SubwayKamoi Station, JR Yokohama Line

Lot area : 39,028 m2 (11,806 tsubo)Floor area : 87,445 m2 (26,452 tsubo) (Planned)Construction end : September 2017 (Planned)

SOSiLA Yokohama KohokuLogistic Facilities Development

Address : Akanehama 3-6-2, Narashino-shi, Chiba-ken

Nearest station : Shin-Narashino Station, JR Keiyo Line Lot area : 19,369 m2 (5,859 tsubo) Floor area : 38,846 m2 (11,751 tsubo) Construction end : September 2016

●5.5m Ceiling Height●Ramp way large trucks can

get in directly●Warehouse space to increase

work efficiency / Expansion of transport capacity

●Ensuring of number of truck docking berths and waiting space considering site characteristics

●Adoption of external wall sandwich panel with highinsulation effect

●Adoption of LED lightingsystems

●Introduction of water saving sanitary ware

●Certification from Comprehensive AssessmentSystem for Built EnvironmentEfficiency (CASBEE)

＜ SOSiLA Quality from Hands-on spirit ＞

●Adoption of seismic isolation structure

●Counterplan against strong wind and guerrilla heavy rains

● Counterplan against tsunami,Storm surge and Liquefaction

● To maintain business continuity in the event of an emergency like an emergency power generator

●Setting up cafe, conveniencestore, shop etc.

●Improvement of smoke-freeenvironment by installingsmoking room

● Consideration for barrier free

*We do not guarantee to equipthese facilities in all series of SOSiLA


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＜Brand Concept＞

●Diversified consumers needs●Connection of consumers and

companies●Workplace environment that is

easy to work●Women's social advancement●Symbiosis with the region

●Enhancement of logistics functions●Providing services to customers●Spatial planning for sophistication of logistics●Consideration for the surrounding environment●Logistics facilities as highly stable investment

products

Based on the three themes, connection to social (=Sociability), consideration for the environment and sustainable growth (=Sustainability), consideration for people and working environment (=Individuality), “SOSiLA” represents the business concept aiming for a new logistics facility (=Logistic Aspect).

Consideration for people and working environment

Connection to social,Consideration for the environment and

sustainable growth

（１）-2. Introduction of Logistics Facilities Development Business （SOSiLA )


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Development Project Achievements（Capital Area）

Kanagawa

Tokyo

Chiba

Saitama

■ BTS / Multi-purpose complex development business

● Logistic development business

CompletedPromoting


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①Private REIT（SC Realty Private Investment Corporation ）

（２）Introduction of Real Estate Funds

We Started its operation of SC Realty Private Investment Corporation in January 2015, through Sumisho Realty Management.This is only REIT sponsored only by Sumitomo Corporation. We aim for long-term and sustainable growth with full strength of our group, by the property supply capacity of Sumitomo Corporation and Real Estate management “Know-How” of Sumitomo Corporation’s Group.

Investments Integrated portfolio(office buildings, commercial facilities, logistics facilities, residential facilities, and hotels)

Placement Limited to qualified institutional investors

Loan To Value ratio Approx. 40%

Target rate of return Approx. 4.0%

Same-Boat Investment ○

Operating Company Sumisho Realty Management

<Sponsor>

Sumitomo Corporation

<Seller>

Real EstateMarket

Informationprovision desk

Information provision

Pipeline Support Contract

<Operator>

Sumisho Realty Management

Asset management consignment contract

<SC Realty Private Investment Corporation>

<Lender>

Domestic Financial Institutemainly Mega Bank

<Investor>

■Domestic Institutional Investor

■Pension Fund

■Operating Company etc.■Sumitomo Corporation

(Sponsor)

InvestmentPort

Debt

LTV:Approx.40%

Equity

30 bil

100 bil

200 bil

Sumisho Realty Management incorporated Sumitomo Corporation's development and holding properties and began operating private REIT at about 30 billion yen. We aim to expand it to 100.0 billion yen in 3 years and 200.0 billion yen in 5 years as a Diversified Private REIT by adding asset such as office, retail facilities, logistic facilities, residential facilities, hotel etc.

93.5 bil

3 years 5 yearsPresent

(Jan.,2017)Organization(Jan.,2015)

Asset Volume

OrganizationPeriod

Asset

■Office■Retail

Facilities■Logistic

Facilities■Residential

Facilities ■Others

(Hotel etc.)

Overview of private REIT

(Image)

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②Logistic Fund No.1



< Main Investment Properties >Logistics facility specialized Private Fund, co-organized with “Kokyo Tatemono” Group.

We expand it as new business pillar by merging Sumitomo Corporation Group’s know-how of Real Estate development and Securitization and Kokyo Tatemono Group’s know-how of logistics Real Estate operation.

●Asset Target : 50.0 billion yen

< Fund Structure > Baby Fund (SPC) Mother Fund (SPC)

Property pipeline (development)


KokyoTatemono


CRE

Real estate trust beneficiary rights

Non-recourse debt

Equity(Mother Fund)

EquityFromInvestor

InstitutionalInvestor

BabyFundEquity

EquityInvestment

Asset Management Facility Management

Kokyo Asset ManagementSumisho Realty

Management

SGL Akanehama Logistics Center

KCRE Soka Logistics Center

CRE Logisquare Mizuho A/B CRE Logisquare Chiba-kita Ⅱ

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③Retail Facility Fund

④Office Fund / Residential Facilities Fund



Investment and develop management for real estate investment fund of private type specialized retail facilities

●Sumitomo Corporation handles part of equity investment (SAME BOAT) ,Sumisho Realty Management handles asset management.

MIKAGE CLASSE(Kobe, development type)

Lot area : 11,000m2Floor area : 41,180m2Open : March, 2008Key tenant : Hanshin

Department Storeetc.

Mito Keisei Department Store(Mito, existing type)

Lot area : 9,652m2Floor area : 77,073m2Open : March, 2006Key tenant : Mito Keisei

Department Storeetc.

Terrace Mall SHONAN(Fujisawa, development type)

Lot area : 59,147m2Floor area : 156,484m2Open : November, 2011Key tenant : Summit Store, Uniqlo, H&M,

ZARA, 109 Cinemas etc.

３. Business Strategy

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（1）Advancement of BTS business Focused on acquiring new projects by further deepening relationships

with in-group retailers (SUMMIT, etc.) and intimacy Retailers. Further expansion of the business area including the Kansai area and

stepping into the new asset type (hotel asset etc.).

Promote development of high-quality logistics facilities + further strengthen leasing capabilities by utilizing our group’s broad knowledge and networks (retail, logistics, IT / communication, etc.) .

As a main sponsor of private REIT, we will continue to support for their growth strategy through supply of high-quality properties and create the scheme by utilizing a wide range of networks.

Organize the new funds utilizing internal and external resources.

（2）Further strengthening of Logistics Facilities development

（3）Expansion of Real Estate funds

４. Our Strengths

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A wide range of business

development unique to

general trading companies

"Hands-On" cultivated as a comprehensive

real estate developer

BTS,

Logistic Real Estate

Development,

Fund

Foundation of Sumitomo Corporation “Real Estate Business”

In December 1988, a big project to develop large-scale waterfront industrial zone started by Osaka North Harbour Company, the predecessor of Sumitomo Corporation.This project, which tool half a century to complete, now forms the foundation of the Kansai Economic Zone. In the process of entering into trading company activities and developing as a general trading company, real estate business has continued to be a core business of the Company, and it continues to grow for the next 100 years now.

20170321strategic real estate business dept

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