SMFL MIRAI Partners, Kenedix and ARA jointly invest in 50% interest in Singapore commercial building through an ARA-managed fund

SINGAPORE,March 7,2023 -- SMFL MIRAI Partners Company,Limited (President: Tatsurou Terada; hereafter,"SMFL MIRAI Partners"),a consolidated subsidiary of Sumitomo Mitsui Finance and Leasing Company,Limited (President: Masaki Tachibana; hereafter,"SMFL"),together with Kenedix,Inc. (President & CEO: Taisuke Miyajima; hereafter,"Kenedix") and fund manager ARA Asset Management Limited (CEO: Moses K. Song; hereafter,"ARA"),an ESR company,have jointly invested in a second property in Singapore,through an ARA-managed fund.

The investment is for 50% interest in Lazada One,a commercial building situated in the vibrant Bras Basah precinct,a prominent arts,education,and cultural district which has also become a popular corporate user location. Centrally located,Lazada One is adjacent to two subway stations and enjoys outstanding accessibility,visibility and close proximity to varsities,attracting a young workforce. For these reasons,some of its principal tenants are leading e-commerce companies,IT firms such as streaming services provider,and major operator of co-working spaces.

With superior investment management track record in the property market in the Asia-Pacific region,ARA undertook a large-scale asset enhancement initiative to incorporate sustainability features and transform the building into an environmentally-friendly property where ventilation,water,and waste are managed with highly energy-efficient equipment. The façade fins were designed to reduce solar radiation on the west facing façade by up to 31%. This helps to lower the building's overall energy consumption. Lazada One received the Green Mark* Platinum certification from Building and Construction Authority of Singapore.

SMFL MIRAI Partners is expanding its investment and financing business in the Asian region in collaboration with Kenedix and its joint shareholder ARA. Owing to the fact that Singapore has a competitive advantage in Asia and its real estate market is expected to pick up on the back of economic recovery,the three companies decided to jointly invest in Lazada One as the second property in their partner strategy with ARA being the fund manager,following the acquisition of the commercial building Capital Square in February last year.

SMFL is expanding and ramping up its investment and financing business in the Asian region together with SMFL MIRAI Partners. Going forward,SMFL,SMFL MIRAI Partners,Kenedix,and ARA will capitalise on their respective networks,know-how,and strengths. The three companies in the partnership will also work together to generate synergies,thereby expanding their investment and financing business in Asia and creating new investment opportunities.

*Green Mark

A certification scheme for evaluating the environmental performance of buildings. It was launched in 2005 by the Building and Construction Authority of Singapore. There are four levels of rating,with Platinum being the highest.

Overview of property

Name

Lazada One

Address

51 Bras Basah,Singapore

Lettable area

259,800sqf（24,135㎡）

Structure

11 stories above ground

Constructed

1989 (major renovations in 2022)

Tenure

Building: Ownership / Land: Leasehold (93 years remaining)

Overview of SMFL MIRAI Partners

Company name

SMFL MIRAI Partners Company,Limited

Head office

1-3-2 Marunouchi,Chiyoda-ku,Tokyo

Representative

Tatsurou Terada,President

Established

2018

Business

Real estate,environmental energy,other financial services

Overview of Kenedix

Company name

Kenedix,Inc.

Head office

2-1-6 Uchisaiwaicho,Tokyo

Representative

Taisuke Miyajima,President & CEO

Established

1995

Business

Asset management business,Real estate related business and Real estate investment business,etc.

Overview of ARA

Company name

ARA Asset Management Limited

Head office

5 Temasek Boulevard #12-01,Suntec Tower Five,Singapore

Representative

Moses K. Song,Chief Executive Officer

Established

2002

Business

Real estate asset management in Asia and Oceania centring on Singapore,Hong Kong,and mainland China