To whom it may concern

Tosei Asset Advisors, Inc., (Head Office: Minato-ku, Tokyo, Chairman & CEO: Hiroshi Nakamura) a wholly owned subsidiary of Tosei Corporation (Head Office: Minato-ku, Tokyo, President & CEO: Seiichiro Yamaguchi, Securities Code: 8923 TSE 1st Section), announced that it has completed the execution of an asset management agreement as of December 30, 2015, to manage residential real estate in which Blackstone Real Estate Partners will make an investment.

Tosei Asset Advisors (hereinafter, TAA) is pleased to announce the execution of an asset management agreement as of December 30, 2015, to manage residential real estate in which Blackstone Real Estate Partners (hereinafter, BREP) will make an investment. The portfolio consists of 57 properties with approximately 2,700 units and a total value of around JPY50 billion. The properties are located primarily in Tokyo, Osaka, and Nagoya areas, with over half of the properties located in the Tokyo area.

With this new agreement, the total value of assets under management with BREP has increased to around JPY250 billion. TAA recognizes that this transaction serves to enhance the profile of Tosei Group's Fund and Consulting Business, one of the growth drivers of Tosei Group's overall business, while improving Tosei Group's presence as a whole.
Investors are continuing to re-evaluate the Japanese real estate market's opportunity, especially in light of the economic recovery and rising real estate prices in recent years. In particular, the flow of foreign capital into Tokyo is increasing. Given this market environment, in addition to its Fund and Consulting Business, the Tosei Group will focus on enhancing the value of AUM by utilizing its successful track record in and platform for restyling and leasing properties to enhance the value of real estate acquired through the Revitalization Business and the Rental Business. Leveraging its strong exit strategy, the Tosei Group seeks to satisfy both Japanese domestic and overseas investor demand for Japanese real estate assets.