#Vietnam #Ho Chi Minh City #Mercuria #Marimo Holdings #Bcons Construction

Announcement of Joint Venture Agreement

Marimo Holdings, through its subsidiary Marimo Global Limited (MGL), and Mercuria Holdings, via its group companies Mercuria (Thailand) Co., Ltd. (MTC) and Mercuria (Vietnam) Co., Ltd. (MVNC), have entered into a joint venture agreement with Bcons Construction Investment Joint Stock Company (Bcons) to participate in a condominium development project in Ho Chi Minh City, Vietnam. This marks a significant collaboration as it is the first joint project for both Marimo and Mercuria in Vietnam. The partnership aims to develop and supply affordable housing targeted at the middle-income demographic, leveraging the strengths of each involved company.

Project Location Attributes

The project is situated in Tan Dong Hiep Ward, approximately 20 km from Ho Chi Minh City’s central business district (CBD). This area is seeing rapid infrastructure improvements, enhancing accessibility and making it a vibrant residential zone particularly appealing to middle-income earners. Given the ongoing urbanization in the region, residential demand remains strong despite restrictions in other more developed parts of the city.

Collaboration Structure and Roles

Bcons, a prominent local developer in Vietnam, has a wealth of experience in residential development within the Ho Chi Minh metropolitan area and will take on a central role in advancing the project. MGL will bring its expertise in high-quality housing development from Japan as well as its experiences in similar projects in China and the Philippines, aiming to tackle the issue of housing shortages in the region. The overarching philosophy of Marimo Holdings centers on providing as many housing units as possible to meet local needs.

Meanwhile, Mercuria Holdings will lend its expertise in cross-border investments and asset management through its subsidiaries MTC and MVNC, focusing on project management throughout the project's lifecycle to ensure the smooth execution and maximization of project value.

Market Context and Justification for Engagement

In recent years, Ho Chi Minh City has faced a dual reality: while urban sprawl has limited housing supply in certain parts of the city, it has simultaneously catalyzed increased demand for residential options in surrounding areas. Particularly significant was the administrative reorganization last year that integrated Binh Duong Province into Ho Chi Minh City, expanding urban functions and increasing residential demand in suburbs.

The suburban areas, including where this project will be located, have seen a rapid expansion of transportation networks and infrastructure improvements, substantially boosting demand for affordable housing, particularly among middle-income households. Considering the viability of the project and the execution capability of Bcons, both Marimo and Mercuria decided to solidify their partnership through this joint venture agreement to advance the project.

Future Outlook

Looking ahead, Marimo and its partners aim to combine their expertise in housing development, project execution, and asset management to drive this project forward effectively. This venture will also provide a foundation for continued partnerships with Bcons and others to explore further opportunities for supplying affordable housing, thereby contributing to Vietnam's sustainable urban development and addressing pressing housing shortages in the region.

Project Overview

• - Location: Tan Dong Hiep Ward, Ho Chi Minh City, Vietnam
• - Usage: Condominium Development
• - Land Area: Approximately 8,240 m²
• - Number of Buildings: 3 (differing scales)
• - Total Units: Approximately 800 units
• - Unit Size: Ranging from 30 m² to 70 m²
• - Commencement: Expected in 2026
• - Completion: Expected in 2028

Note: The above details represent plans and are subject to change.

Company Profiles

Bcons Construction Investment Joint Stock Company

• - Headquarters: 176/1 - 176/3 Nguyen Van Thuong St, Thanh My Tay Ward, HCMC, Vietnam
• - Established: March 6, 2013
• - CEO: Le Nhu Thach
• - Business Areas: Real Estate, Services, Logistics, Education
• - Website: bcons.com.vn

Marimo Holdings, Inc.

• - Headquarters: 1-17-23 Kongo Kita, Nishi Ward, Hiroshima, Japan
• - Established: August 3, 2015
• - CEO: Masashi Fukagawa
• - Business Areas: Group management, New business development
• - Website: marimo-hd.co.jp

Mercuria Holdings, Inc.

• - Headquarters: 1-3-3 Uchida Building, Nakasakuramachi, Chiyoda, Tokyo, Japan
• - CEO: Toshihiro Toyoshima
• - Business Areas: Holding company
• - Website: mercuria.jp