Japan Excellent, Inc. (JEI) announced that Japan Excellent Asset Management Co. Ltd. (JEAM), to which JEI entrusts asset management, made a decision regarding the additional acquisition of domestic real estate trust beneficiary rights, as: GRAND FRONT OSAKA (Umekita PlazaSouth Building) (equivalent of 2.30% co-ownership)., Property Name: GRAND FRONT OSAKA (Umekita PlazaSouth Building), Property to Be Acquired: Quasi co-ownership interest of trust beneficiary rights in real estate, Planned Acquisition Price: JPY 4,650,000,000, Planned Date of Execution of Purchase Agreement: November 7, 2023, Scheduled Acquisition Date: December 8, 2023, Seller: Nippon Steel Kowa Real Estate Co. Ltd., Brokerage: None, Funding for Acquisition: Debt financing, etc. and funds on hand (planned) and Payment Method: Lump-sum payment upon delivery. GRAND FRONT OSAKA (North Building) (equivalent of 2.30% co-ownership): Property Name: GRAND FRONT OSAKA (North Building), Property to Be Acquired: Quasi co-ownership interest of trust beneficiary rights in real estate, Planned Acquisition Price: JPY 3,650,000,000, Planned Date of Execution of Purchase Agreement: November 7, 2023, Scheduled Acquisition Date: December 8, 2023, Seller: Nippon Steel Kowa Real Estate Co. Ltd., Brokerage: None, Funding for Acquisition: Debt financing, etc. and funds on hand (planned) and Payment Method: Lump-sum payment upon delivery. JEI has promoted the qualitative improvement of its portfolio based on the asset management scope and policy stipulated in the JEI Articles of Incorporation. JEI has decided to make an additional acquisition of GRAND FRONT OSAKA (Umekita PlazaSouth Building) and GRAND FRONT OSAKA (North Building) from the sponsor, Nippon Steel Kowa Real Estate Co. Ltd., for the purpose of such qualitative improvement of the portfolio and growth of distributions. Details of the Properties to Be Acquired: Location: The Properties are directly connected to JR Osaka station by a pedestrian walkway and are accessible by three other railway stations; Hankyu Osaka-Umeda station, Hanshin Osaka-Umeda station, and Osaka Metro Midosuji Line Umeda station. The Umeda area has the larger train terminal in western Japan and the Properties are one of the landmarks in this area. In addition, "Umekita Phase 2," a redevelopment project adjacent to the Properties is underway, and the area surrounding the Properties has strong growth potential. uilding and Facilities: The Properties are large-scale urban complex comprised of offices, commercial facilities, and hotel. GRAND FRONT OSAKA (Umekita PlazaSouth Building) has one skyscraper, Tower-A which is occupied by offices and commercial facilities. It also features the Umekita Plaza, a commercial facility near the South Building. GRAND FRONT OSAKA (North Building) is comprised of two buildings (Tower B and Tower C); these are occupied by hotel and Knowledge Capital which is a center for industry-academia collaboration in addition to offices and commercial facilities.
Office space of Tower-A is approximately 785 tsubo, approximately 820 tsubo for Tower-B, and approximately 516 tsubo for Tower-C. Ceiling height is 2,800mm and free access floor (OA floor) is 100mm. Each building uses 60VA/m2 power outlets. With the installation of HVAC zoning system and self-ventilation system, the office environment is built for comfort and convenience. In addition, the power receiving facility is equipped with three special high-voltage cables (spot network). Both skyscrapers have high performance seismic resistant structural systems as Tower-A is equipped with seismic bracing along with its oil dampers, while Tower-B is equipped with structural control dampers and buckling restraint braces. Tenanted by over 200 (Note) restaurants, shops, and service vendors, the commercial facility boasts a large variety of stores and services. Also, the Properties hold various events to attract not only tenants but also a broad array of visitors. The hotel section is occupied by the Intercontinental Hotels Group, one of the leading global hotel operators highly acclaimed in the world over that operates hotels in more than 60 countries and regions. One of the most characteristic facilities is Knowledge Capital, a mixed-use facility comprised of large and small offices, salons, science laboratories, show rooms, and theatres designed to stimulate human interaction. It was established to create new businesses and industries and is a strong characteristic of the Properties.