Purchase of Investment Units of SC Realty Private Investment Corporation

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno; hereinafter “Sumitomo Corporation”) hereby announces its decision to purchase, up to a maximum total amount of JPY 20 billion, investment units of SC Realty Private Investment Corporation (hereinafter “SCRP”), a private REIT managed by Sumitomo Corporation’s consolidated subsidiary, Sumisho Realty Management, Co., Ltd. (Head Office: Chuo-ku, Tokyo; President and CEO: Yukinari Shiraishi; hereinafter “SRM”), from unitholders seeking to redeem their interests, at a uniform purchase price calculated based on their net asset value per unit (*1).

As announced in the press release dated December 5, 2025, “Administrative Action Against Sumisho Realty Management Co., Ltd.,” SRM has taken the recent administrative action with the utmost seriousness and continues to implement measures aimed at restoring trust, including strengthening its compliance and internal control frameworks and reviewing its business operations. Sumitomo Corporation, as the parent company, also takes seriously the fact that its management framework for handling transactions with conflicts-of-interest was not fully adequate. Sumitomo Corporation is continuously monitoring and supervising the progress of SRM’s business improvement efforts, while providing support toward the establishment of appropriate governance and operational systems. Through these efforts, Sumitomo Corporation is working to ensure that SRM can continue to operate in a transparent and disciplined manner.

Under these circumstances, SCRP, which is managed by SRM, has received preliminary redemption requests for investment units from investors at levels significantly exceeding normal volumes. Should formal redemption requests be submitted, SCRP would be required to respond within the maximum number of units per fiscal period as stipulated in its Articles of Incorporation. However, depending on the ultimate scale of formal redemption request, it is possible that funding arrangements may be necessary over a considerable period. In such a scenario, there is a risk that asset disposals to procure funding could adversely affect the maintenance of SCRP’s high-quality real estate portfolio and its stable operations.

Given the background to the administrative action, the current situation and future outlook of SCRP and the potential impact on the Sumitomo Corporation Group, Sumitomo Corporation has carefully considered the appropriate course of action, while respecting the principles of the investment market. As a result, Sumitomo Corporation has determined that implementing this purchase, as an exceptional measure to support liquidity of SCRP’s investment units, is the most appropriate course of action. Sumitomo Corporation believes that by preventing the above-mentioned situation from arising and maintaining SCRP as a valuable investment vehicle, it will lead to restore the trust of SCRP unitholders, and this will also help maintain and enhance Sumitomo Corporation’s own corporate value. This purchase represents a decision made by Sumitomo Corporation given the current circumstances and does not entail any change to the above policy or to the respective independent management frameworks of SRM and SCRP.

Sumitomo Corporation is developing its real estate business by combining development-for-sale properties and investment properties as two core pillars, while strategically integrating asset management functions that leverage external capital to create flexible and sustainable value. Going forward, Sumitomo Corporation will continue to prioritize the restoration of trust, while supporting the further enhancement of SRM’s governance and operational systems and strengthening initiatives aimed at the medium- to long-term growth of the Sumitomo Corporation Group’s real estate business.

(*1) Calculated in accordance with the rules of the Investment Management Association of Japan

Related Press Releases:
Recommendation for Administrative Action Against Sumisho Realty Management Co., Ltd.
Administrative Action Against Sumisho Realty Management Co., Ltd.
Submission of Business Improvement Report by Sumisho Realty Management Co., Ltd.