Nomura Real Estate : First Investment for Office Building in Asia Pacific

To members of the press

January 22, 2018

Nomura Real Estate Development Co., Ltd.

Investment in Grade A Office Building in Ho Chi Minh City, Vietnam※１

Nomura Real Estate's First Investment for Office Building in Asia Pacific

Nomura Real Estate Development Co., Ltd. (head office: Shinjuku Ward, Tokyo; President and Representative Director: Seiichi Miyajima; hereinafter "Nomura") announces that it has acquired 24% ownership interest of the Grade A office building "SUN WAH TOWER" in Ho Chi Minh City, Vietnam. This will be the Company's first office project in Asia Pacific and its third project for leasing business. ※２

The building is a Grade A office building facing Nguyen Hue Street, which is a main street in District 1 in Ho Chi Minh City. It is situated in central Ho Chi Minh City with the opera house, People's Committee office and such in the surrounding area, bustling with many business persons and tourists.

A number of Japanese companies as well as foreign companies have advanced into Ho Chi Minh City, recognizing it as one of the largest commercial cities in Vietnam. The Company has already participated in a condominium project "Phu My Hung Midtown Project※3" in the city, but intends to undertake more projects in the fast-growing Ho Chi Minh City by also entering into commercial office building business.

The Nomura Real Estate Group has positioned overseas business as a growth field in its medium-term business plan (effective until March 2025). Accordingly, it plans to invest 300 billion yen in residential projects and commercial projects (office, retail, serviced apartment, etc.) by the fiscal year ending March 2025, the majority of which will target Asian countries where real estate demand is growing. Thus far, Nomura has participated in development projects in Bangkok, Thailand; Ho Chi Minh City, Vietnam; Manila, the Philippines; andShenyang, China. Major cities in Asian nations with ongoing strong economic expansion are expected to further urbanize, and the real estate sector such as residential or office fields is believed to see strong demand and abundant investment/development opportunities. The Company will continue to work to achieve "Connecting today with tomorrow's possibilities" through acquisition of quality, high-income generating commercial properties like SUN WAH TOWER, by leveraging experience, know-how and capabilities gained in Japan and offering products and services suitable to local markets.

※1：Grade A indicates the office grade in Ho Chi Minh City and it is the highest grade class. (accordingly to the interviews with Japan Real Estate Institute)

※2：The first leasing project is commercial facilities of complex development in Manila, Philippines, and the second project is serviced apartment in Bangkok, Thailand.

※ ： "Real Estate Development Project '(tentative name) Midtown Project' Launched"https://www.nomura-re-hd.co.jp/cfiles/news/n2015092900983.pdf 。3

■Office Market in Ho Chi Minh City

Although Ho Chi Minh City enjoys remarkable economic growth and receives a number of foreign companies including Japanese, Grade A-class office buildings are limited and thus demand is expected to grow further going forward. The location and status of the building are highly recognized with approximately 85% of tenants being foreign tenants centering on Japanese companies and the occupancy rate as of December 2017 standing high at around 99%.

■Project Outline

The building stands facing Nguyen Hue Street, which is a main street in District 1 in Ho Chi Minh City. As there are many globally-known sightseeing destinations such as the opera house and People's Committee office as well as office buildings and high-end hotels in the surroundings, the location can be considered as the center of Ho Chi Minh City. Housing many foreign companies including Japanese companies, the building has served as a landmark of the area among other buildings.

■Property Outline

Location	District 1, Ho Chi Minh City, Vietnam
Site area	Approx. 1,700 m2
Total floor area	Approx. 32,000 m2
Net lettable area	Approx. 26,500 m2
Number of floors	21 floors
Ownership ratio	24% (SUN WAH GROUP 76%)
Completion	1997
Main contractor	Shimizu Corporation

■ Nomura Real Estate's Overseas Projects

Nomura Real Estate Group has announced the medium-term business plan (effective until March 2025) in year 2015, positioning to "actively expand its overseas business taking advantage of Nomura's product planning, service knowledge that has been built over the years in the Japanese market." In relation to the above, as for the Development field;

■ Expand residential and commercial projects in Asian nations with growing real estate demands expected from economic growth

■ Collaborate with leading local partners

■ Invest 300 billion yen by the business term ending in March 2025

【medium-term business plan】https://www.nomura-re-hd.co.jp/english/ir/pdf/plan2016_presen_en.pdf

Nomura sets the above three strategies. Nomura will also "expand the investment management and brokerage business to meet the Cross-border investment demands" as part of Nomura's service/management business, and actively absorb the in-bound and out-bound investment demands through "strengthening the cooperation with Nomura Security Group, which has strong relationship with number of investors."

In addition to the project described in this press release, Nomura is a participant in joint development projects involving condominium housing in Ho Chi Minh City, Vietnam; in Bangkok, Thailand; in Shenyang, China; and condominium housing and commercial facilities in Manila, the Philippines.

Project area	Ho Chi Minh City, Vietnam
No. of units	Approx. 2,300
Completion	Planned for 2019 and after
Description	Condominium
Japanese partners	Daiwa House Industry, Sumitomo Forestry

*Press release issued on September 29, 2015

Conceptual drawing

Project area	Manila, Philippines
No. of units	Approx. 1,400
Completion	Planned for 2025 (four residential towers) and after
Description	Condominium, Retail
Japanese partners	Isetan Mitsukoshi Holdings

*Press release issued on July 10, 2017

Conceptual drawing

Project area	Bangkok, Thailand
No. of units	Approx. 863 units, 601units and685 units
Completion	Planned for 2020~2021
Description	Condominium
Japanese partners	―

*Press release issued on Aug 24, 2017

Project area	Bangkok, Thailand
No. of units	303
Completion	Planned for 2019
Description	Serviced apartment
Japanese partners	―

*Press release issued on December 14, 2017

Conceptual drawing

Conceptual drawing

The figures provided under "No. of residences" above refer to the total number of planned residences, not the share belonging to Nomura Real Estate.