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Mitsui Fudosan to Enter the Hotel Business in Taiwan
Directly Operated Hotel Scheduled to Open in Central Taipei in 2020

January 10, 2017
Mitsui Fudosan Co., Ltd.

Key Points of the Project

The Mitsui Fudosan Group’s first hotel business in Taiwan
Directly operated hotel with approximately 300 guestrooms scheduled to open in central Taipei in 2020
Mitsui Fudosan’s first hotel property in Taiwan, with plans to develop multiple hotel businesses in Taiwan centered on the Taipei metropolitan area.

Tokyo, Japan, January 10, 2017 - Mitsui Fudosan Co., Ltd., a leading global real estate company headquartered in Tokyo, announced today that it has decided to participate in its first hotel business in Taiwan, entering into an agreement with Hung poo Real Estate Development Co., Ltd. (“Hung poo Real Estate”), a Taiwanese real estate developer which is a publicly listed, on the development and operation of the new hotel. The hotel will be directly operated by the Mitsui Fudosan Group and is scheduled to open in 2020. The Mitsui Fudosan Group is participating in this hotel business in Taiwan with the aim of capturing demand from the growing numbers of visitors to Taiwan every year. Beginning with this hotel, the Mitsui Fudosan Group plans to develop multiple hotel businesses in Taiwan centered on the Taipei metropolitan area.

The project site is in an outstanding location in the center of downtown Taipei. Taipei’s major sightseeing spots are within a radius of approximately 3 km from the site. The National Chiang Kai-shek Memorial Hall is nearby, and local streets are lined with classy tea shops, variety stores, cafes and other merchants. Yongkang Street, a highly popular dining destination among Japanese visitors and other travelers, is also close by. The hotel will be highly accessible to public transport, being only one minute on foot from the Taipei Metro (“MRT”) Zhongxiao Xinsheng Station, a transfer station for two MRT lines (Bannan Line and Zhonghe Line) that is only two stations from Taipei Main Station. The hotel will be approximately 15 minutes by car from Taipei Songshan Airport. Access from Taiwan Taoyuan International Airport is also scheduled to improve with the opening of a new MRT line. Mitsui Fudosan expects the hotel to serve a wide range of guests, including business travelers, visitors from Hong Kong and Southeast Asia, and customers from other parts of Taiwan, in addition to sightseeing and leisure travelers from Japan.

For this hotel, the Mitsui Fudosan Group will lease a building that will be developed by Hung poo Real Estate and will operate the property as an upper-grade accommodation-style hotel with approximately 300 guestrooms. The Group will collaborate on planning the hotel from the building development stage. On the hotel operations front, the Mitsui Fudosan Group has developed expertise through the operation of 20 hotels in the Mitsui Garden Hotel chain in Japan. The Group will take full advantage of this expertise to create “hotels that satisfy the senses” and “hotels to remember” in Taiwan, as it has done in Japan. With this in mind, Mitsui Fudosan will make every effort to provide services replete with unparalleled hospitality.

The Mitsui Fudosan Group’s Business in Taiwan

In January 2016, the Mitsui Fudosan Group opened Mitsui Outlet Park Linkou, the Group’s first business in Taiwan. In September 2016, the Mitsui Fudosan Group decided to join the Mitsui Outlet Park Taichung Port (tentative name) project, which will become its second Mitsui Outlet Park facility in Taiwan. Project development is underway with plans to open the facility in 2018. For further business expansion, the existing Mitsui Fudosan Asia Ltd. Taipei Branch was upgraded and on September 13, 2016, Mitsui Fudosan Taiwan Co., Ltd., a Taiwanese subsidiary, was established. Going forward, using the subsidiary as an investment base, development plans include commercial facilities and hotels throughout Taiwan, as well as housing sales, logistics facilities, and multi-use development projects.

The Mitsui Fudosan Group’s Hotel Business

The Mitsui Fudosan Group is expanding its hotel business with Mitsui Garden Hotel as its core brand. The Mitsui Garden Hotel chain operates 20 facilities in Japan as lodging-focused hotels with approximately 5,400 guestrooms. Currently, Mitsui Garden Hotel Nihonbashi Premier (tentative name), Mitsui Garden Hotel Otemachi (tentative name) and other facilities are under development. In future, the Mitsui Fudosan Group will continue to proactively implement new hotel initiatives in major metropolitan areas and core regional cities.
In addition, the Mitsui Fudosan Group is engaged in a resort business with properties such as Haimurubushi on Kohama Island in Okinawa Prefecture, NEMU HOTEL & RESORT in Shima City, Mie Prefecture, and Toba Hotel International in Toba City, Mie Prefecture. The Group also conducts an overseas business, with properties including Halekulani, a hotel in Hawaii, U.S.A, and the St. Regis Hotel & Residences in Singapore.

Mitsui Fudosan's Overseas Strategy

The Mitsui Fudosan Group has positioned overseas business as one of its growth areas. Under the Group’s “Innovation 2017 Stage II” medium-term business plan through fiscal 2017, announced in May 2015, the Group is planning to execute investments of approximately ¥550 billion in Europe, the Americas and Asia over a period of three years from 2015 to 2017. At present, the Group is making steady progress with those investments.
In Asia, Mitsui Fudosan is actively capturing growing consumption and contributing to local areas while aggressively promoting its business to quickly expand its earnings. Mitsui Fudosan is advancing six commercial facility projects in Asia. Mitsui Outlet Park KLIA Sepang opened in Kuala Lumpur in May 2015, and there are plans to open LaLaport facilities in Shanghai and Kuala Lumpur. Mitsui Fudosan is also actively engaged in the housing business in Malaysia, Singapore, Thailand, Indonesia, and China, and is expanding development projects in Asia.

Hung poo Real Estate

Hung poo Real Estate Development Co., Ltd. is a publicly listed real estate developer mainly engaged in the development and sale of housing and offices.
(Total assets: 20.28 billion NTD, Net assets: 11.42 billion NTD, Revenue: 5.05 billion NTD, Net income: 1.46 billion NTD, Foreign stock ownership ratio: 27.5% (as of December 2015))

Project Overview

Location	Lane 10, Sec. 3 Zhongxiao East Road, Da’an District, Taipei City, Taiwan
Access	One minute walk from Zhongxiao Xinsheng Station (MRT Bannan Line, MRT Zhonghe Line) * Two stations from Taipei Main Station and four stations from Taipei City Hall Station 15 minutes by car from Taipei Songshan Airport
Site Area	Approximately 15,823 ft2 (Approximately 1,470 m2)
Above Ground Total Floor Area	Approximately 150,695 ft2 (Approximately 14,000 m2)
Structure	17 floors above ground and 5 below (Includes hotel from 1st to 17th floors, restaurant on 1st floor and parking on 1st to 5th basement floors)
Guestrooms	Approximately 300 (average floor area of 290 ft2 (27 m2) per room)
Business Format	The Mitsui Fudosan Group will lease a building that will be developed by Hung poo Real Estate.
Name of Hotel	Pending
Scheduled Opening	2020 (planned)