Investment Completed for Regional Revitalization through REIT at Furusato Partners

In a significant milestone, Chugoku Bank has successfully completed its investment in Furusato Partners, an asset management company aimed at establishing a Real Estate Investment Trust (REIT). This initiative, led primarily by NBI Holdings and PROSPER, aims to bolster local tourism and stimulate economic growth in the Chugoku region, specifically in accommodation facilities.

1. Objective of the Regional Revitalization through REIT

Furusato Partners is designed to create a REIT focused on energizing local tourism and generating long-term value for various regions. By collaborating with regional financial institutions, this venture seeks to establish a sustainable platform that allows multiple financial entities to invest in their own areas, fostering communal growth. Chugoku Bank, a strong supporter of regional development initiatives, marks a significant partnership as the first local bank to invest in this project, laying the foundation for collaboration with NBI Holdings and PROSPER.

2. Chugoku Bank's Role and the Potential of the Setouchi Area

NBI Holdings, a pioneer in the real estate investment sector, aims to enhance regional revitalization through strategic investments in hotels and ryokans (traditional Japanese inns). Their commitment aligns with Chugoku Bank’s core mission, as both entities strive to unlock the potential of the Setouchi region, known for its beautiful landscapes and rich cultural heritage. As the significance of high-value, long-stay tourism increases, this partnership aims to capitalize on the local charm and resources, ultimately enriching the future of the entire region.

3. Remarks from Key Stakeholders

On May 29, a joint press conference was held in Okayama, showcasing the excitement surrounding this collaboration. NBI Holdings' CEO, Takayuki Kanaya, expressed his elation at welcoming Chugoku Bank as the first regional bank partner. He emphasized the goal to redirect investment from urban centers to rural areas, promoting sustainable local development. Meanwhile, Chugoku Bank’s Executive Officer Nishimeji highlighted the unique allure of the Setouchi area, which is fortified by its combination of historical sites, local culinary experiences, and the interaction between charming islands.

4. Future Prospects

Furusato Partners is set to launch its REIT in the summer of 2029, initially aiming for an asset size of 50 billion yen. In the subsequent five years, the goal is to grow this to 200 billion yen. Already, NBI Holdings has built a strong pipeline with over 40 billion yen in hotel and ryokan investments, showcasing the high social demand for regional revitalization. By furthering their collaboration with PROSPER and Chugoku Bank, Furusato Partners aims to nurture and revitalize local tourism and the hospitality sector.

5. Overview of Shareholding Companies

NBI Holdings: Founded in Chiyoda, Tokyo, NBI Holdings is dedicated to real estate investment and regional revitalization. With a strong leadership background, CEO Takayuki Kanaya has facilitated significant investments in the hotel sector.

PROSPER: Based in Minato, Tokyo, PROSPER specializes in private equity fund management and initiatives that support community revitalization, spearheaded by seasoned executive Yozo Tachibana.

Through this innovative approach, Furusato Partners is set to transform not only the tourism landscape of the Setouchi area but also contribute significantly to the economic vitality of local communities in the Chugoku region.