Tosei Corporation announced that a meeting of its Board of Directors held on June 26, 2023 resolved to conclude a basic agreement with LIXIL REALTY Corporation under which TOSEI-R Inc., a subsidiary to be newly established by the Company, will succeed to assets, liabilities, contracts and other rights and obligations related to the LIXIL REALTY's Asset Securitization Business in an absorption-type company split: Purpose of the absorption-type company split The Tosei Group positions the Tokyo metropolitan area as a major investment area and operates a wide range of business as a comprehensive real estate company with six business segments: Revitalization Business, Development Business, Fund and Consulting Business, Rental Business, Property Management Business, and Hotel Business. In the Revitalization Business, which is one of its core businesses, the Group acquires properties whose asset value has declined, improves their environmental performance, convenience and design based on "value-up plans" to increase their asset value and then resells these renovated properties to a wide range of clients including REITs, general corporations and end users. Through implementation of the absorption-type company split in which the Group will succeed to LIXIL REALTY's Asset Securitization Business, the Group aims to strengthen human resources in the Revitalization Business and also to acquire, as part of the purchase, 6 income-generating properties, 3 sections of income-generating commercial building with sectional ownership, 1 section of income-generating building with sectional ownership and 109 condominium units.

Overview of the companies in the reorganization: Name (Splitting company): LIXIL REALTY Corporation. Name (Subsidiary to be newly established): TOSEI-R Inc. Location (Splitting company): Sumitomo Fudosan Ueno Bldg.8 2F, 6-9-3 Higashiueno, Taito-ku, Tokyo. Location (Subsidiary to be newly established): Tamachi Tosei Bldg., 4-5-4 Shibaura, Minato-ku, Tokyo.