Reducing the Maintenance and Management Burden on Landowners

Nagaken Co., Ltd. developed a logistics warehouse in Irukade-Shinden, Komaki City, Aichi Prefecture, which was completed in May 2026.

This project addressed landowners' concerns, such as repair costs and maintenance burdens due to the aging of buildings, responding to their desire to utilize their land stably without managing or repairing buildings. Based on these challenges, Nagaken adopted a trust scheme that separates ownership, management, and operation, realizing a new form of land utilization that utilizes the land while not owning the building itself.

Social Issue: Increasing 'Building Burden' Due to Aging In the target area, warehouse leasing under the build-to-suit method had been conducted previously. However, as the buildings aged, repair costs and maintenance burdens increased, creating challenges for long-term operations. Against this background, a new method was required to replace land utilization predicated on conventional building ownership.

Solution: Land Utilization through the 'Separation of Ownership, Management, and Operation' To address these issues, the following scheme was structured in this project: - Nagaken leased the land from 5 landowners - Nagaken constructed the logistics warehouse as the owner/developer - The building was placed in a trust to convert it into trust beneficiary rights - The trust beneficiary rights were sold to Itochu Corporation and Itochu Urban Development - The trust trustee is Sumitomo Mitsui Trust Bank This mechanism achieves both the reduction of the landowners' management burden and the investment and operational needs of the business operators.

Scheme Background: The Optimal Solution through Consensus Building This scheme was structured after multiple discussions between Nagaken, Itochu Corporation, and Itochu Urban Development, aiming to balance the reduction of the landowners' burden with the feasibility of the project. As a result, separating ownership, management, and operation has enabled division of roles according to each party's position, leading to sustainable land utilization. Furthermore, in this project, Nagaken handled everything consistently from landowner coordination and business scheme formulation to coordination with business operators and financial institutions, as well as administrative responses, promoting the project while building consensus among stakeholders.

Project Overview Name: Komaki City Irukade-Shinden Project Location: Irukade-Shinden, Komaki City, Aichi Prefecture Use: Logistics warehouse (3 stories above ground) Gross Floor Area: 10,748 sqm (3,251 tsubo) Site Area: 6,569 sqm (1,987 tsubo) Construction Period: July 2025 to May 2026 Handover: May 20, 2026 Construction Company: Saeki Sogo Kensetsu Co., Ltd. Settlement of Beneficiary Rights Sale: May 20, 2026

Future Outlook Our company will continue to carefully consider solutions to respective challenges while remaining attentive to the positions of both landowners and corporations. In addition, under our corporate message 'Something New, Something Grand,' we will work on land utilization that goes beyond conventional frameworks and promote sustainable real estate development. Furthermore, through these initiatives, we will contribute to strengthening regional logistics infrastructure.