On July 26, 2016, Daiwa House Industry Co., Ltd. entered into an agreement to establish a joint venture with WHA Corporation PCL (WHA), a Samutprakarn Province, Thailand-based leading built-to-suit developer of logistics facilities and factories. Under the accord, WHA Daiwa Logistics Property Co., Ltd. will be founded on July 27, 2016.

From July 27, WHA Daiwa Logistics Property will take part in the planning of the Laem Chabang Project and Bang Na Project, which are under development with WHA, and carry out the development, operation, management and leasing of logistics facilities.

Additionally, we will combine management resources held by our Group, including know-how related to investigations, design, and construction for the development of logistic facilities, and the management and operation of buildings. In line with this, we will make efforts to attract Japanese-owned companies and global companies looking for logistics facilities overseas.

- Laem Chabang Project

Laem Chabang Project (site area: approximately 78,400 m2) is in Laem Chabang District, Chonburi Province, approximately 14.7 km from Laem Chabang Deep Seaport, Thailand's largest trading port. The location encompasses routes for domestic and overseas distribution. A large-scale industrial park occupies the surrounding area, and numerous major Japanese-owned companies are planning to set up operations there.

- Bang Na Project

Bang Na Project (site area: 123,200 m2) is in Bang Phli District, Samutprakarn Province, approximately 35 km from downtown Bangkok, 10 km from Suvarnabhumi Airport, and 30 km from Bangkok Port. The distribution site is attracting much attention, and has good accessibility to Bangkok city and nationwide.

1. Objectives of establishing joint venture

In conjunction with Japanese companies and a Vietnamese company, we are currently developing Long Duc Industrial Park in the Long Thanh District of Dong Nai Province in the south of Vietnam. Additionally, in cooperation with an Indonesian company, we are supporting the overseas expansion of Japanese-owned companies in the ASEAN region by developing Daiwa Manunggal Industrial Park in Cikarang Barat, Bekasi, West Java, Indonesia, and developing and leasing our first overseas logistics facilities.

Thailand, where we are now expanding, has a large number of Japanese-owned companies among the ASEAN states. Its logistics market is brisk, and we anticipate that such companies will have multiple needs as distribution tenants. Since we can expect future business developments in the region, we decided to establish WHA Daiwa Logistics Property as our second overseas logistics facility development.

2. Outline of joint venture

Trade name: WHA Daiwa Logistics Property Co., Ltd.

Location: Samutprakarn Province, Thailand

Founding date: July 27, 2016

Description of business: Development, operation, management and leasing of logistics

facilities

Equity ownership: Daiwa House Industry Co., Ltd.: 49%

WHA Corporation PCL: 51%

3. Thailand

Thailand is an emerging nation with 2015 GDP of approximately 395.3 billion US dollars, and the scale of the economy second to Indonesia in Southeast Asia.

Affiliated members of the Japanese Chamber of Commerce, Bangkok, stood at 1,715 companies as of the end of April 2016. Many companies are considering expanding into Thailand to take advantage of growth in Asian and other countries.

- Outline of WHA Corporation PCL

Trade name: WHA Corporation PCL

Representative: Ms. Jareeporn Jarukornsakul

Location: Samutprakarn Province, Thailand

Founded: 2003

Description of business: A fully integrated industrial and logistics facility developer in

Thailand

Paid-in capital: about 4.7 billion JPY

Net sales: about 37.7 billion JPY (2015 consolidated)

Term-end: December 31 of each year

*1 THB=3.3 JPY

About Daiwa House Industry Co., Ltd.

Head office: Osaka, Japan

President and COO: Naotake Ohno