Introducing the “Midtown Project”

Daiwa House Industry Co., Ltd. (Head office: Osaka; President: Naotake Ohno; hereinafter “Daiwa House”), Nomura Real Estate Development Co., Ltd. (Head office: Shinjuku-ku, Tokyo, President: Seiichi Miyajima, hereinafter “Nomura Real Estate”), and Sumitomo Forestry Co., Ltd. (President and Representative Director: Akira Ichikawa; Head Office: Chiyoda-ku, Tokyo hereinafter “Sumitomo Forestry”), working in collaboration with a major local developer, the Phu My Hung Development Corporation (hereinafter, Phu My Hung Co.), will launch the “Midtown Project” (provisional name), a real estate development project in Phu My Hung, District 7 in Ho Chi Min City in the Socialist Republic of Vietnam (hereinafter, Vietnam).^*1

The “Midtown Project” is a plan to sell condominiums in the Phu My Hung area in two phases. The project calls for the development of a total of approximately 2,100 units. Phase 1 development will involve the development of 5 condominiums offering approximately 1,100 units. This phase will be followed by development for Phase 2.

In the Phu My Hung area where Phu My Hung Co. conducts real estate development, this will be the first real estate development project by Japanese companies.

(*) 1. Currently filing for investment registration certificate (IRC), etc. (as of September 29, 2015).

Points

– First development by Japanese companies in “Phu My Hung Area”, Vietnam’s largest affluent residential area.
– Large-scale project will offer 1,100 units in 5 condominiums (Phase 1).
– Main target customers are company executives, senior professional people ^*2 and expatriates in Vietnam.

(*) 2. accountant, lawyer, medical doctor etc.

Background behind project launch

Together with Sojitz Corporation and Kobelco Eco-Solutions Co., Ltd., Daiwa House has been involved in industrial park development and facility construction in Dong Nai Province, Southern Vietnam since 2011. Since 2012, Daiwa House have been operating an outsourcing business in Hanoi City.

In March 2015, Nomura Real Estate established NOMURA REAL ESTATE ASIA PTE. LTD. as a local subsidiary in Singapore to serve as a base of operations for real estate development in Southeast Asia and from which to create business opportunities. In 2010, Sumitomo Forestry established Vina Eco Board Co., Ltd. as a local subsidiary in Vietnam to begin the manufacturing and sale of particle boards. ^*3

(*) 3. Particle board is the engineered wood product, which is formed mainly from wood particles by hot pressing with adhesives.

As Vietnam continues to experience economic growth, the need for condominium housing is growing. And with the enactment of the Revised Housing Act in July 2015, the restrictions on real estate purchases by foreigners have been eased, which is expected to lead to further growth in the housing market.

Daiwa House, Nomura Real Estate, and Sumitomo Forestry partnered with major local developer Phu My Hung Co. to launch a condominium development project targeting company executives, senior professional people and expatriates in Vietnam.

Phu My Hung Co. began a major urban development project in District 7 of Ho Chi Min in 1993. Today, the area stands as the most developed district in Ho Chi Min City. We will combine the knowledge and know-how of Daiwa House, Nomura Real Estate, and Sumitomo Forestry with Phu My Hung Co.’s experience in the Vietnam to provide a level of high value-added residential living unlike anything the region has ever seen.

Daiwa House, Nomura Real Estate, Sumitomo Forestry, and Phu My Hung Co. will use this project as a launching point for future business expansion.

1. First development by Japanese companies in Phu My Hung, Vietnam’s largest affluent residential area

The Phu My Hung area is located in District 7, some 4km from CBD of Ho Chi Min City, which is experiencing dramatic economic growth. Phu My Hung Co. has been conducting real estate development in the Phu My Hung area in line with the Saigon South Master Plan^*4 which was approved by Prime Minister of S.R.Vietnam in 1994. Real estate development in this area emphasizes green environment and security, and is one of the most affluent neighborhoods in Southeast Asia.

Phu My Hung City Center in Phu My Hung area has 409ha (site A) of developed area, approximately 16,000 households, and a residential population of 40,000 people. It is an eco-friendly, large-scale real estate development that is home to many foreign residents, including Japanese residents.

Within the area are the foreign department store “Parkson” and the shopping mall “Crescent Mall,” among other commercial facilities, the general hospital FV (Franco Vietnam), which offers some of the most advanced medical care in the city, as well as several foreign schools and international schools, including a Japanese school. The area is a large-scale multi-function real estate development that blends both convenience and pleasant living.

(*) 4. Saigon South Urban Development Project that involves the development of nearly 3,300ha in the southern region of Ho Chi Minh City. With the city serving as project lead, this urban development project entails residential, commercial, and industrial zones with real estate development being conducted by civilian developer.

2. Large-scale project will offer 1,100 units (Phase 1)

Phase 1 development for the “Midtown Project” (provisional name) will involve a development land area of approx. 28,000m2 with plans for a 5 building condominium complex that will result in approx. 1,100 units. Adjacent to the waterfront, the complex will offer superior views while being close to commercial facilities. The complex also will be adjacent to a Japanese school.

Residential units will offer a diverse variety of floor plans, with units providing from 85m2 to around 120m2 (mainly two bedroom and three bedroom units), and its residents can enjoy private gym, swimming pool, multipurpose hall, children’s playground, and other shared facilities.

Within the Phu My Hung area where this development project is located are some 800 dedicated building management and security personnel. These personnel help ensure a pleasant living environment and improve security.

Daiwa House, Nomura Real Estate, and Sumitomo Forestry will apply the know-how gained through this project toward future business development in Vietnam.

3. Main target customers are company executives, senior professional people and expatriates in Vietnam

The Midtown Project focuses on providing a fine residential and educational environment and pleasant living in economically vibrant Ho Chi Min City, and mainly will target company executives, senior professional people.

And with the enactment of the Revised Housing Act in July 2015, the previously strict regulations concerning real estate purchases by foreigners have been eased to allow residential purchases. As a new target, we will look to capture demand among foreigners in Vietnam.

About Phu My Hung Development Corporation

Phu My Hung Development Corporation is a real estate company that began investment and development in Ho Chi Minh City in 1993. Since receiving development permits in 1993, the company has continued development, including infrastructure development, maintenance, management, and operation, in District 7 of Ho Chi Min City.

The company embraces a corporate philosophy of “We ask not what we take away, but we can leave behind.” They have been developing the Phu My Hung area into an international affluent residential neighborhood, and contributing to Ho Chi Min City for over 22 years.

Project overview (Phase 1)

– Name: “Midtown Project” (provisional name)
– Location: District 7, HCMC, S.R.Vietnam
– Phase 1 units: approx. 1,100 units (phase 1 & 2 total : approx.2,100units)
– Phase 1 land area: approx. 28,000m²
– Phase 1 GFA approx. 180,000m²
– Structure: Reinforced Concrete
– Floor plans: 2 bedroom, 3 bedroom
– Construction period: Q1 2017 – Q4 2019 (planned)
– Start of sales: Q1 2017 (planned)
– Total investment: approx. US$220million

Inquiries

Daiwa House Industry Company, Co. Ltd., Corporate Communications Dept., Sano: +81-6-6342-1381 Nomura Real Estate Development Co., Ltd., PR Dept., Handa: +81-3-3348-7805 Sumitomo Forestry Co., Ltd., Corporate Communications, Ohnishi: +81-3-3214-2270