Full-Scale Construction Begins for Kobe City Hall Building No. 2 Redevelopment Project

TOKYO, Japan - June 12, 2026 - ORIX Real Estate Corporation (“ORIX Real Estate”) announced today that a consortium of companies led by ORIX Real Estate, with Hankyu Hanshin Properties Corp., Kanden Realty & Development Co., Ltd., Daiwa House Industry Co., Ltd., Fuyo General Lease Co., Ltd., Takenaka Corporation, and Yasuda Real Estate Co., Ltd., will begin full-scale construction for the Kobe City Hall Building No. 2 Redevelopment Project^*1.

Kobe City Hall Building No. 2 was built more than 60 years ago and is showing deterioration with age. This project^*3 will utilize the know-how of private-sector developers to reconstruct the building and redevelop the government building functions. Leveraging its location halfway between the Sannomiya Station area and the waterfront area, the project aims to create a bustling center that attracts and promotes interaction between visitors from Japan and abroad. In addition to the full-scale start of construction, Hilton’s luxury brand Conrad Hotels & Resorts (Conrad) has been selected to open on the upper floors, marking its first entry into Hyogo Prefecture.
Through collaboration with Kobe City, the consortium will continue to create connections (Connect) with the world, society, and the local community and develop a center of interaction and creation that will be the driving force for Kobe into the future.
*1 ORIX Real Estate Chosen as a Developer for Kobe City Hall Building No. 2 Redevelopment Project (August 31, 2022)
*2 All illustrations used in this news release are valid as of the date of the news release and are subject to change.
*3 Source: City of Kobe: Kobe City Hall Building No. 2 Redevelopment Project(in Japanese)

■Features of the Project
1. Revitalization between the Sannomiya Station Area and the Waterfront Area
(1) Improved circulation in the surrounding area
The facility is located halfway between the Sannomiya Station area, a major commercial district, and the Former Foreign Settlement and waterfront area, where redevelopment is underway. Leveraging this location, the facility will incorporate public functions that foster new connections and communities, as well as private-sector visitor-attracting and vibrancy-generating functions that communicate Kobe’s distinctive character and appeal to Japan and the world. The project will also provide smooth connections to underground passages and internal passageways that allow people to pass through the facility, helping improve circulation through Kobe as an enjoyable city to explore on foot.

(2) Creation of spaces where people can casually stop by
The low-rise section will include the public-use space (tentative name), which can be used as a public space. It will be a space for events, rest, interaction, and other uses, where visitors can feel the warmth of wood and the comfort of greenery that reflect Kobe’s abundant forest resources. The project will also provide open spaces where citizens and visitors can casually stop by, including a bright, open area in front of the main entrance and a sunken garden (semi-basement plaza).

2. Overall Building and Functions
The low-rise section will combine city hall functions with commercial functions and a rooftop garden, creating a place where visitors can spend time and move around while enjoying a range of activities.
The high-rise section will introduce Conrad, Hilton’s luxury brand, and high-grade offices. The fourth floor will include conference facilities with a hotel ballroom and meeting rooms of various sizes, creating opportunities for business interaction.

(1) Hotel
Conrad, Hilton’s luxury brand, will open on the fourth floor above ground and on the upper 20th to 28th floors, marking its first entry into Hyogo Prefecture. ORIX Real Estate Corporation, the lead company for the hotel business in this project, and Hilton have now entered into a management agreement and decided that the hotel will be named Conrad Kobe. The hotel is scheduled to open in 2030.

Conrad Kobe is planned to include 136 guest rooms centered on 50 m² rooms, as well as a lounge, restaurant, bar, fitness facilities, spa, pool, an approximately 500 m² ballroom for banquets and meetings, and multipurpose meeting spaces.

<About Conrad Hotels & Resorts>
Conrad Hotels & Resorts, Hilton’s luxury brand, currently operates 50 hotels across five continents. Through intuitive service and locally rooted experiences, the brand inspires guests’ spirit of discovery. Through its signature Conrad 1/3/5^*4 program, the brand offers opportunities to experience the culture and appeal of each destination and create more meaningful connections. Spaces featuring carefully curated contemporary art throughout the hotel also inspire guests.

*4 Conrad Hotels & Resorts Renews Conrad 1/3/5 Program, which Creates Meaningful Travel Experiences | Hilton press release(in Japanese)

(2) Offices
The project will provide high-grade offices with approximately 1,680 m² of leasable area per floor, one of the largest in Kobe. The offices can be used flexibly according to corporate expansion needs, from integrated use of an entire floor to subdivided use starting at approximately 150 m². A lounge exclusively for office workers will also be provided facing the rooftop garden on the ninth floor. It can be used in a range of situations, including breaks and as a third place, helping support office workers and promote interaction between companies.

(3) Commercial Facilities
The project will arrange a variety of distinctive food and beverage, retail, and service stores that communicate the appeal of the local area across three floors: the first and second floors above ground facing Flower Road, and the first basement floor connected to Santica and Sannomiya-Hanadokeimae Station on the Subway Kaigan Line. It will also provide an open sunken garden connecting the ground and basement levels, helping promote circulation through Kobe and create a vibrant atmosphere.

(4) City Hall
To encourage active communication and allow for flexible adaptation to changing times, the project will provide open workspaces without partitions, as well as a highly productive office environment where staff can work comfortably. This will include meeting rooms with high sound insulation and internal staircases that facilitate interaction between floors. In terms of environmental performance, the city hall portion will achieve the equivalent of ZEB Oriented and has obtained BELS certification (a third-party certification system that indicates the energy-saving performance of buildings).

3. Environmentally Friendly, Disaster-Resilient Landmark Symbolizing the Area Around City Hall
(1) Nightscape Symbolizing the Port City
The exterior is envisioned as a high-quality Kobe-style design that connects Kobe’s sea and mountains and harmonizes with the surrounding landscape. The high-rise section, which will house the hotel and other functions, features a distinctive design incorporating a glass box at the top, while the low-rise section, which will house city hall functions and other facilities, is designed with a horizontal emphasis inherited from the former Building No. 2. At night, the high-ceilinged hotel lobby will be illuminated, creating a landmark that evokes the port city of Kobe from afar, like a lighthouse for the city.

(2) Active Environmental and Disaster-Prevention Initiatives
On the environmental front, in addition to obtaining BELS certification for the city hall portion, the building as a whole actively incorporates environmentally conscious features and has achieved the highest S rank under CASBEE Kobe (Kobe’s comprehensive environmental assessment system for buildings).
The ninth floor will also include an attractive rooftop garden that citizens, office workers, visitors, and others can use as a relaxing place to enjoy greenery.
For barrier-free access, the project has obtained barrier-free certification for shared areas throughout the building as well as the office and city hall portions, creating a plan that accommodates diverse users.
For disaster prevention, the project will improve safety during earthquakes by adopting a mid-story seismic isolation structure. It will also reduce disaster risk by placing important equipment rooms, such as electrical rooms, mechanical rooms, and the disaster prevention center, on upper floors as a flood countermeasure. In addition, part of the private-sector area is expected to be opened as a temporary stay facility, enabling the project to help support measures for people unable to return home during emergencies.

■Business overview

■Estimated Schedule

■Location map

Contact Information:
Investor Relations 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 37,000 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, 2026)

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, 2024 – March 31, 2025” furnished on Form 6-K.