Financial Products: Real Estate Acquisition Notification for the Largest Real Estate Condominium Investment Product Project

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February 25, 2022

Company:

Financial Products Group Co., Ltd.

Representing:

Hisanaga Tanimura, CEO and Founder

(Code 7148 on the first section of the Tokyo Stock Exchange)

Requests:

Hiroshi Sakurai, Managing Director and General

Manager, Business Planning Service

(TEL. +81-3-5288-5691)

Notification of the acquisition of real estate for the largest project

real estate co-ownership investment product (premium asset series)

Financial Products Group Co., Ltd. (FPG) has decided to acquire the real estate, which includes retail, office and residential, in Minami-Aoyama, Minato-ku, Tokyo, to hold the real estate condominium investment product “Premium Asset Series .” This acquisition is the largest project ever for FPG’s real estate condominium investment product.

1. Reason for acquisition

One of the strengths of FPG products is to take advantage of synergies within the group. The Premium Asset Series, the real estate co-ownership investment product in the real estate fund industry, utilized the beneficial rights of the trust of FPG Trust Co., Ltd., the wholly owned subsidiary. In addition, the Premium Asset Series is highly valued as it allows for small lot investments of 10 million yen or more for real estate in a prime location of central Tokyo and major cities in Japan by clients who aim asset succession and asset management.

In the fiscal year ended September 30, 2021, FPG sold a record seven projects (for a total of 20.8 billion yen), all of which were sold in a short period due to channel expansion sales and increased product recognition. In the fiscal year ended September 30, 2022, we continue to enjoy strong sales, with approximately 11.3 billion yen in the first quarter (October 1, 2021

– December 31, 2021), exceeding 50% of the turnover of the previous financial year.

To meet the persistent demand for real estate investments from our clients and, therefore, to develop the business of real estate funds, we have proactively organized the product, including the acquisition of large-scale real estate. As part of these measures, we have acquired ownership of the real estate condominium investment product in the favorable location of Minami-Aoyama, Minato-ku.

This case is “the acquisition of real estate for a large-scale project in Tokyo”, which was mentioned as the reason for borrowing funds in the “Notification of Debt Financing for the Arrangement of the Large scaleInvestment product in real estate co-ownership“, disclosed on February 18, 2022. The total number of units sold in this property is expected to be more than twice as large as the previous largest project in the GIF’s real estate condominium investment product. It is a major project without precedent* in the industry.

Additionally, as part of our SDG efforts, FPG has set CO2 reduction as one of our initiatives, and we plan to introduce CO2-free electricity using non-fossil certificates at this property after acquisition.

FPG will continue to aggressively acquire attractive real estate in a favorable downtown location and bring new real estate investment opportunities to our clients across the country. Also, we will strive to develop new products that take advantage of the synergy of our group.

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Contract date: February 25, 2022

Sales start date: March 19, 2022 (expected)

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