ITOCHU Announces Agreement to Invest in AD Capital, Strengthening Real Estate Business Initiatives and Structures

March 26, 2015

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has concluded formal agreements to underwrite third-party allocation of new shares by AD Capital Co., Ltd. (headquartered in Chiyoda-ku, Tokyo; Toshihiro Toyoshima, CEO; hereinafter “AD Capital”) and to acquire outstanding shares of AD Capital from Asuka Holdings Inc. (headquartered in Minato-ku, Tokyo; Kozo Matsuoka, President & CEO; hereinafter “Asuka HD”). This will bring ITOCHU’s stake in AD Capital to 28.3%. Completion of the investment is scheduled from May onward.

AD Capital is a joint venture asset management company between Development Bank of Japan Inc. (headquartered in Chiyoda-ku, Tokyo; Toru Hashimoto, President & CEO; hereinafter “DBJ”) and Asuka HD, which invests in growth companies and growth markets in Japan and overseas and provides consulting services and investment opportunities to domestic and international clients. In December 2013, AD Capital listed Spring Real Estate Investment Trust (headquartered in Hong Kong, hereinafter “Spring REIT”), which operates real estate investment in Asia, on The Stock Exchange of Hong Kong Limited. Spring REIT is currently managed by Spring Asset Management Limited (headquartered in Hong Kong), a subsidiary of AD Capital.

By proactively contributing to the expansion of AD Capital’s operating revenue, as well as integrating ITOCHU’s real estate solutions (such as real estate development, raising value, and brokerage) with the finance solutions capability of AD Capital and DBJ and collaborating with the Spring REIT, ITOCHU aims to expand its real estate business in Japan and throughout Asia.

AD Capital Company outline

Name of company AD Capital Co., Ltd.
Head office location Uchisaiwaicho Daibiru, 1-3-3 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative Toshihiro Toyoshima
Established October 5, 2005
Capital 84.2 million yen

Spring REIT Company outline

Name of company Spring Real Estate Investment Trust
Date of company’s listing December 5, 2013