ORIX Real Estate Completes Construction of Multi-Tenant Atsugi III Logistics Center with a Total Floor Space Four Times That of Tokyo Dome

TOKYO, Japan – May 24, 2024 – ORIX Real Estate Corporation (“ORIX Real Estate”) announced that it has completed the construction of Atsugi III Logistics Center, a large-scale multi-tenant logistics facility in Aiko, Kanagawa with a total floor space of 181,613.22 m², the largest among its facilities.
Lease contracts have been signed with five companies as of the completion of the facility, and it will commence operations with 100% occupancy.

Atsugi III Logistics Center is located within Kanagawa Nairiku Industrial Park approximately 3.8 km from the Sagamihara-Aikawa Interchange on the Metropolitan Inter-City Expressway. In addition to distribution within the Tokyo Metropolitan Area, it allows distribution to the northern Kanto region via the Metropolitan Inter-City Expressway and wide-area distribution to western Japan via the Tomei Expressway and Chuo Expressway.
The facility is a seismic-isolation structure with six stories above ground. It uses double rampways that provide direct access to each floor, and there are truck berths^*1 on each floor that can simultaneously accommodate 55 trucks. Allowing the use of a single floor with a maximum area of 26,022.83 m², the facility achieves efficient logistics operations.
In addition, there is a dangerous goods warehouse within the premises to meet the diverse needs of tenant companies. The warehouse allows the storage of dangerous goods under the Fire Service Act, such as cosmetics and alcohols, which cannot be stored above designated quantities in general warehouses.
Besides being equipped with a solar power generation system on the rooftop to supply the entire facility with electricity derived from renewable energy sources, the facility also meets the needs of tenant companies for environmental consideration, including the attainment of ZEB certification for net zero annual primary energy consumption.
ORIX Real Estate entered the logistics facility development business in 2002 and has a track record of investing in and developing 50 facilities mainly in the Tokyo, Nagoya, and Osaka areas. It will continue to develop logistics facilities that consider evolving supply chain strategies and the environment.
*1 A truck berth is a space used to connect trucks to the facility to facilitate the loading and unloading of goods.

1. Features of Atsugi III Logistics Center
(1) Excellent location as a wide-area distribution base to western Japan in addition to the Tokyo Metropolitan Area
Atsugi III Logistics Center is located within Kanagawa Nairiku Industrial Park approximately 3.8 km from the Sagamihara-Aikawa Interchange on the Metropolitan Inter-City Expressway. In addition to distribution within the Tokyo Metropolitan Area, it allows distribution to the northern Kanto region via the Metropolitan Inter-City Expressway and wide-area distribution to western Japan via the Tomei Expressway and Chuo Expressway. Furthermore, the Shin-Tomei Expressway is scheduled to fully open in fiscal 2027, and accessibility is expected to further improve.

(2) Double rampways that allow efficient logistics operations
The facility has six stories above ground and uses double rampways that provide direct access to each floor. There are truck berths on each floor that can simultaneously accommodate 55 trucks, allowing the facility to be used in the same manner as a single-story warehouse to achieve efficient logistics operations. By shortening time spent waiting for and handling cargo^*2, it is expected to help reduce overtime work of truck drivers, an issue under the “2024 problem” in logistics. On each floor, the effective height is approximately 5.5 m under the lower beam.
*2 This refers to tasks generated in the logistics process, including the loading, unloading, and transfer of goods.

(3) Dangerous goods warehouse within the premises

(4) Conducive and comfortable working environment
The common area on the sixth floor features a café lounge with approximately 240 seats that can be used for eating lunch or taking a break, and parts of the storage sections include areas equipped with air-conditioning systems to provide a conducive working environment. The café lounge has an unmanned convenience store. From the perspective of biodiversity conservation and coexistence with the local community, there is a Garden of Four Seasons with seasonal elements while preserving the existing greenery located within the premises. The Garden of Four Seasons has terrace seating to provide a relaxing environment for eating lunch and taking breaks.

(5) Seismic-isolation structure to protect valuable employees and goods
The facility uses spherical sliding bearings, which are seismic-isolation devices made of high-performance steel that greatly and gradually absorb vibrations from earthquakes. Typical seismic-isolation devices that use laminated rubber generate twisting due to factors such as differences in the amount of load placed on the laminated rubber or change over time. Spherical sliding bearings reduce the risk of goods toppling due to twisting of the building during earthquakes, protecting valuable employees and goods.

(6) Attainment of ZEB^*3 certification as an environmentally considerate logistics facility

*3 This is a building where the annual primary energy consumption is net zero or a negative value. It is a building that reduces primary energy consumption by 100% or more when combining both a reduction of 50% or more from the standard level of primary energy consumption through energy conservation and further reduction through energy creation using renewable energy.
*4 PPA is a business model in which a third party borrows the premises or roof of an electricity consumer, installs a solar power generation system there, and supplies the electricity generated by the system to the consumer.
*5 This is a system that comprehensively evaluates the quality of buildings, including environmental considerations such as energy-saving and the usage of environmentally friendly equipment and materials, as well as provision of a comfortable indoor environment and consideration for the surrounding landscape.

(7) Promotion of decarbonization as the entire ORIX Group
ORIX Corporation embarked on its environment and energy business in 1995 and engages in a renewable energy business of approximately 940 MW in Japan^*6. Using this expertise, ORIX Real Estate installed a solar power generation system on the rooftop of this facility. Besides consumption within the facility, excess electricity generated by the facility is sold to power companies through the Feed-in Premium (FIP) scheme^*7. The environmental value of this excess electricity is also sold to offices and facilities owned and managed by ORIX Real Estate. Through these initiatives, the entire ORIX Group contributes toward decarbonization.
*6 As of March 31, 2024.
*7 This is a scheme in which a certain premium (subsidy) is added to the market price of electricity sold by renewable energy power producers on the wholesale market or by other means.

Location map

Contact Information:
Investor Relations and Sustainability Department
ORIX Corporation
Tel: +81-3-3435-3121

About ORIX Group:
ORIX Group (ORIX Corporation TSE: 8591; NYSE: IX) was established in 1964 and has grown from its roots in leasing in Japan to become a global, diverse, and unique corporate group. Today, it is active around the world in financing and investment, life insurance, banking, asset management, real estate, concession, environment and energy, automobile-related services, industrial/ICT equipment, ships and aircraft. Since expanding outside of Japan in 1971, ORIX Group has grown its business globally and now operates in around 30 countries and regions across the world with approximately 34,000 people. ORIX Group unites globally around its Purpose: “Finding Paths. Making Impact.” combining diverse expertise and innovative thinking to help our world develop in a sustainable way.
For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2024)

Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2023 – March 31, 2024” furnished on Form 6-K.