NIRAKU (01245) entered into a trust beneficiary transfer agreement with SMFL MIRAI Partners Company.

NIRAKU (01245) announces that on September 18, 2025 (after trading hours), the seller NBI Regional Revitalization Investment Co., Ltd. (a non-wholly owned subsidiary) has entered into a trust beneficial rights transfer agreement with the buyer SMFL MIRAI Partners Company, Limited (an independent third party) to transfer the trust beneficial rights for a total consideration of 600 million Japanese Yen (approximately 31.8 million Hong Kong Dollars). The expected effective date of the transfer is September 30, 2025. The seller shall transfer the trust beneficial rights to the buyer, who will use them to operate a hot spring hotel under the brand name "Hotel Choeikan." The trust beneficial rights refer to the 100% equity interest in the trust real estate as stipulated in the trust agreement between the seller and the trustee. The trust real estate includes land located in Shizukuishi-machi, Iwate-gun, Japan, consisting of 20 independent parcels with a total area of approximately 7,192.21 square meters, as well as a 10-story hotel building with a total floor area of approximately 9,514.43 square meters. The group constantly seeks strategic investment opportunities within its extensive hotel industry network to maximize shareholder value. On April 17, 2025, the group acquired the land and building for 358 million Japanese Yen to further expand its hotel business. However, considering the current real estate market conditions and the offer from the buyer, the board of directors believes that the sale provides a good opportunity for the group to realize the value of the trust real estate at a reasonable price. Furthermore, the proceeds from the sale will enhance the group's financial position and increase its general operating funds. The board of directors views the sale as a prudent and strategic investment decision that will allow the group to capitalize on favorable market conditions and achieve significant financial gains. This transaction aligns with the group's strategy of creating value for shareholders through industry expertise and market insights. The group intends to use the net proceeds from the sale for general operating funds or future investments when opportunities arise.