MJ Home Co., Ltd. to Acquire FEA Design Co., Ltd. by M&A to Expand Business Nationwide

MJ Home Co., Ltd. (Headquarters: Nagahama City, Shiga Prefecture, President and CEO: Mutsumi Kuzukawa, hereinafter referred to as "Our Company") has decided to acquire 100% of the shares of FEA Design Co., Ltd. (hereinafter referred to as "FEA Design"), a Class 1 architect office headquartered in Shinagawa-ku, Tokyo, making it a wholly-owned subsidiary.

In recent years, the real estate and construction industries have been rapidly changing, with rising construction material costs, labor shortages, and increasing complexity of legal regulations, including building permit applications. Under these circumstances, for developers to achieve sustainable growth, accelerating development speed, optimizing cost control, and above all, possessing "architectural planning capabilities with originality and high quality" are indispensable.

As part of its medium- to long-term growth strategy, Our Company is actively pursuing nationwide real estate development, including welfare housing development such as "group homes for severely disabled individuals" where social supply shortages are becoming severe, M&A of real estate management companies, and expansion of the value chain in the construction business.

To realize these growth strategies more reliably and speedily, we have determined that acquiring a design organization with advanced expertise and a proven track record is the best option, leading to this M&A.

FEA Design is a Class 1 architect office with a history of over 40 years since its founding. The company has a team of 10 members, including 3 Class 1 architects and 1 Class 2 architect, and specializes in the design of wooden buildings using the 2x4 construction method, welfare housing, apartment buildings, and RC (Reinforced Concrete) and steel structures. Furthermore, they have strong relationships with major developers and have consistently provided high-quality design services over many years.

Through this integration, Our Company and FEA Design anticipate the creation of multifaceted synergies that go beyond mere expansion of scale.

1. Design of Welfare Housing (e.g., Group Homes for the Severely Disabled)

We will integrate FEA Design's expertise into Our Company's focus on developing group homes for the severely disabled. This will significantly accelerate the supply of highly socially contributing welfare facilities and enable facility development that flexibly responds to diverse needs.

2. Development of Wooden Apartments and Apartment Buildings Utilizing the 2x4 Construction Method

We will merge Our Company's construction and development track record with FEA Design's comprehensive technical capabilities, from upstream to downstream, including advanced architectural and structural design, construction supervision, and creation of construction manuals. We will maximize the quality and safety of 2x4 construction and accelerate the nationwide rollout of "environmentally friendly, high-efficiency wooden houses" that contribute to the realization of a decarbonized society.

3. Expansion into "Mid-to-High-Rise Real Estate Development" Using RC and Steel Structures

A robust system will be established to consistently design and control mid-to-high-rise real estate development, such as mid-to-high-rise condominiums using RC and steel structures, within the group. This will enable us to undertake diverse development projects in urban areas, including the Tokyo metropolitan area, with unprecedented speed and high cost performance, strongly supporting Our Company Group's goal of expanding its business domain nationwide.

4. "Reduction of Development Period" and "Cost Optimization" Through a One-Stop System

Processes such as basic design after land acquisition, building permit applications, structural calculations, and design supervision will be handled in-house within the group. This will reduce the time lag and costs associated with outsourcing, enabling speedy and flexible specification changes and thorough quality control.

5. Human Resource Development and Asset Creation of Design Know-how

The advanced technologies and know-how cultivated by FEA Design over 40 years will be accumulated as common assets for the entire group. Through active personnel exchange with young construction managers and sales staff within the group, we aim to foster comprehensive real estate and construction personnel who will lead the next generation.

Even after integration into the group, the current representative of FEA Design Co., Ltd. will continue to lead its management. We will prioritize the protection and respect of the valuable business relationships with existing client companies, the employment environment for employees, and the traditional technical know-how that the company has built up over the years, while harmonizing them with Our Company Group's growth strategy.

[Overview of the Company Subject to Share Acquisition (Group Integration)]

Company Name: FEA Design Co., Ltd.

Location: 7-17-5 Nishi-Gotanda, Shinagawa-ku, Tokyo

Business Activities: Class 1 Architect Office (Architectural Design and Supervision, Seismic Diagnosis of Existing Buildings, Structural Strength Review, Design and Supervision of Residential Soundproofing Work, etc.)

Our Company will continue to actively promote M&A and alliances with companies in related specialized fields to strengthen our value chain. By consolidating expertise in each region and business domain, we will further accelerate our growth as a "comprehensive real estate corporate group" that is essential to society.

Company Name: MJ Home Co., Ltd.

Representative: Mutsumi Kuzukawa, President and CEO

Established: November 2005

Capital: 66,000,000 yen

Location: 655 Muro-machi, Nagahama City, Shiga Prefecture, 526-0835

Corporate Website: https://www.mj-home.co.jp/

Rental Housing/Property Information Site: https://www.chintai-siga.com/