ORIX Real Estate Completes Construction of Tsukuba Logistics Center, a Multi-Tenant Logistics Facility about an Hour to Central Tokyo

TOKYO, Japan – August 21, 2024 – ORIX Real Estate Corporation (“ORIX Real Estate”) announced that it has completed the construction of Tsukuba Logistics Center, a multi-tenant logistics facility in Tsukuba, Ibaraki.

Tsukuba Logistics Center is located approximately 4.7 km from the Tsukuba-Chuo Interchange on the Ken-O Expressway and approximately 9 km from the Yatabe Interchange on the Joban Expressway and is approximately an hour’s drive from central Tokyo. Being in an area at the intersection of the Ken-O Expressway and Joban Expressway, it can be used for both distribution to central Tokyo and to the entire Kanto region, mainly the northern Kanto region, and is approximately 2 km from Kenkyū-gakuen Station on the Tsukuba Express Line, which makes commuting convenient. In addition, Tsukuba is a highly advantageous area in terms of securing employment for tenant companies as it is one of the most populous cities in Japan, such as recording population growth every year since the city was born in 1987^*1.
The multi-tenant building is a four-story steel-framed structure with a total floor area of 49,530.65 m² and can hold up to four tenants from a minimum lot size of approximately 10,600 m². It has a slope from the first to the second floor, and each floor has berths^*2 that can accommodate up to 26 and 24 heavy-duty trucks (10-ton trucks) respectively at the same time. The facility will have a café lounge available for employees of the tenant companies to use for lunch and breaks, helping improve the work environment for employees at the facility.
In addition to the solar power generation system installed on the rooftop, ORIX Corporation will supply electricity with Non-fossil Certificates (with tracking certification) to tenants in the event of insufficient power generation due to weather conditions or during the night, allowing tenants to use electricity from 100% renewable energy sources. This property is also environmentally considerate, with plans to obtain an A rating for Comprehensive Assessment System for Built Environment Efficiency (CASBEE)^*3 for Building (New Construction) and to be evaluated as ZEB Ready^*4.
ORIX Real Estate has a track record of investing in and developing 51 facilities mainly in the Tokyo, Nagoya, and Osaka areas. It will continue to aim for the development of facilities that consider evolving supply chain strategies and the environment.

*1 Based on population trends from 1988 to 2024 published by Ibaraki Prefectural Government.
*2 A truck berth is a space used to connect trucks to the facility to facilitate the loading and unloading of goods.
*3 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.
*4 This is an advanced building with a view of becoming a net zero energy building (ZEB). It has an outer shell that is high in thermal insulation, and it is equipped with highly efficient energy-saving equipment. Excluding renewable energy, this building reduces primary energy consumption by 50% or more from the standard level of primary energy consumption.

1. Features of Tsukuba Logistics Center
(1) Location that can be used for both distribution to central Tokyo and to the entire Kanto region
Located approximately 4.7 km from the Tsukuba-Chuo Interchange on the Ken-O Expressway and approximately 9 km from the Yatabe Interchange on the Joban Expressway, Tsukuba Logistics Center can be used for both distribution to central Tokyo and to the entire Kanto region, mainly the northern Kanto region. In addition, it is approximately 2 km from Kenkyū-gakuen Station on the Tsukuba Express Line and approximately 30 m from the Toko-dai Gymnasium bus stop of Tsukuba’s community bus service “Tsuku-Bus,” which makes commuting convenient.

(2) Specifications that allow the efficient storage and movement of freight
Tsukuba Logistics Center has berths on the first and second floors that can accommodate up to 56 trucks (10-ton trucks, with 4-ton trucks in certain areas) at the same time. It has an effective height under lower beam of approximately 5.5 m. In addition, each tenant section is equipped with its own freight elevator and vertical conveyor.

(3) Logistics facility with business continuity plan (BCP) offering peace of mind
As BCP, emergency generators are installed in anticipation of 24-hour operations. They allow freight elevators, lighting, and such to be used even during power outages during situations such as disasters, making it possible for logistics function to continue around the clock. In addition, there are storage rooms for emergency supplies on the third and fourth floors in preparation for unexpected disasters.

(4) Providing a comfortable and pleasant working environment
There is a café lounge on the first floor with approximately 100 seats that can be used for lunch and breaks. Besides the usual tables with seating, there are several kinds of seats—such as counter seats by the windows, sofas, and high tables—to offer a space that can be used according to the number of people and purpose and provide a comfortable working environment for employees of tenant companies.

(5) Logistics facility with environmental considerations, including an electricity supply from 100% renewable energy sources
ORIX Real Estate is working to develop logistics facilities with environmental considerations. A solar power generation system has been installed on the roof under a power purchase agreement (PPA) model^*5, and the power generated can be consumed within the facility. In the event of power shortages at night or due to weather conditions, ORIX Corporation will supply electricity with Non-Fossil Certificates (with tracking certification), allowing tenant companies to use electricity derived from renewable energy sources for 100% of their electricity consumption.
Due to such energy-creation initiatives, the use of LED lighting, and such, there are plans for this property to obtain an A rating for CASBEE for Building (New Construction), the highest level of a five-star rating in Building Energy-efficiency Labeling System (BELS)^*6, and to be evaluated as ZEB Ready. In addition, ORIX Real Estate is actively pursuing environmental considerations by installing electric vehicle (EV) charging stations in the parking lot on the site.

*5 This 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.
*6 This is a third-party certification system that ranks the energy-saving performance of buildings in five stages.

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.