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

Investment in Grade A Office Building in Ho Chi Minh City, Vietnam^(*1)

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; and Shenyang, 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.

■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】

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.

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

*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.
*3: “Real Estate Development Project ‘(tentative name) Midtown Project’ Launched” https://www.nomura-re-hd.co.jp/cfiles/news/n2015092900983.pdf