Mitsui Fudosan : LINK Lab Open Innovation Support Program Enhancement of Back office Support for R&D Startups Support for Research Equipment Procurement and Labor Management

MITSUI LINK-Lab Open Innovation Support Program
Enhancement of Back-office Support for R&D Startups
-Support for Research Equipment Procurement and Labor Management-

May 30, 2024
Mitsui Fudosan Co., Ltd.
Life Science Innovation Network Japan, Inc. (LINK-J)

Key Points of this Press Release

Mitsui Fudosan launched two new services to support the back-office functions of startup companies that are unable to devote resources to anything other than their core businesses

1. Support for procurement operations through joint purchasing of research equipment
   Mitsui Fudosan collaborates with manufacturers and distributors to provide a structure for purchasing equipment at special prices
2. Support for labor management through occupational health services
   Provision of unique occupational health services in collaboration with occupational physicians who serve as familiar consultants for occupational health and safety

Tokyo, Japan, May 30, 2024 - Mitsui Fudosan Co., Ltd., a leading global real estate company headquartered in Tokyo, announced today that it launched a service in May 2024 to support research equipment procurement and labor management for R&D startups occupying MITSUI LINK-Labs, which are rental labs and offices that promote innovation in the life sciences.

This support service is part of the Open Innovation Support Program, which delivers solutions to the various challenges faced by lab tenants. The Japanese government is focusing on nurturing startups, such as by formulating the "Startup Development Five-year Plan" in 2022, but the creation of an ecosystem that nurtures startups requires the cooperation of the private sector as well as the public sector*.

Amidst such circumstances, we have received various feedback from R&D startup companies that are occupying MITSUI LINK-Labs regarding the management challenge of being unable to devote sufficient resources to back-office operations outside of their core businesses. At this time, we have launched a new service to help address this issue.

Going forward, Mitsui Fudosan will keep contributing to the creation of innovation in life sciences by facilitating the establishment of locations that are readily accessible to various researchers and by building communities through collaboration with Life Science Innovation Network Japan, Inc.

An initiative in MITSUI LINK-Lab that provides a wide range of solutions measures for the various challenges facing tenants on the two core components of: 1. Support for research and business; and 2. Support for communication and networks

*Source: The Cabinet Secretariat's New Form of Capitalism Realization Headquarters / Council of New Form of Capitalism Realization, "Startup Development Five-year Plan"
https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/index.html

■Two initiatives to create an environment that facilitates concentration on research

We have so far developed four MITSUI LINK-Lab facilities (MITSUI LINK-Lab KASAI, MITSUI LINK-Lab SHINKIBA 1 and 2, and MITSUI LINK-Lab KASHIWANOHA) which are occupied by companies engaged in various research and development activities, mainly in the life sciences. In addition to large companies, nearly 40% of tenants are startup companies.

Examples of startup companies occupying MITSUI LINK-Labs (in no particular order)

Startup companies are one of the key players in the innovation creation ecosystem, and we actively support startup companies through our Open Innovation Support Program. Based on feedback from our tenants, we have now launched two initiatives to create an environment that facilitates concentration on research through back-office support, and we plan to gradually expand the areas of support in the future.

(1) Joint purchasing of research equipment (target facilities: MITSUI LINK-Lab SHINKIBA 2, with planned expansion to other facilities)

Mitsui Fudosan will offer a service that enables the purchase of equipment at special prices for MITUSI LINK-Labs that are less expensive than market prices by taking advantage of the economies of scale achieved through the concentration of businesses in the MITUSI LINK-Labs and uniting the purchasing power of tenants as well as prospective tenants (joint purchasing).

The service will be offered first at MITSUI LINK-Lab SHINKIBA 2 in collaboration with Thermo Fisher Scientific Japan Group, which handles a wide range of laboratory equipment and scientific instruments, and BioTecLab Co., Ltd., which can provide design assistance. The number of facilities and products covered by the service is to be expanded in the future.

For tenants and prospective tenants, the service is expected to have the advantages of reducing the large investment (financial burden) necessary for R&D and enabling smooth procurement. At the same time, for manufacturers and distributors, the service is significant because it enables the access of users in one place. We believe that this initiative will lead to the revitalization of the life science ecosystem as a whole.

Equipment handled (examples)

(2) Occupational health services (target facilities: MITSUI LINK-Lab SHINKIBA 1 and 2, MITSUI LINK-Lab KASAI, with planned expansion to other facilities)

The MITSUI LINK-Lab has been working to support the improvement of occupational health and safety knowledge of its tenants by holding training courses for them. In holding these courses, several tenants have voiced specific concerns, such as "What is the first thing we should do when our company expands in the future?" and "How do we choose the right occupational physician?" which prompted us to start occupational health services.

In this service, MITSUI LINK-Labs introduce occupational physicians certified by the Japan Medical Association (qualified Occupational Health Consultants) to tenants, and provide high-quality occupational health services tailored to the needs of MITSUI LINK-Lab tenants, including follow-up on obligations (special health checkups, measurement of working environment, etc.) that are unique to life science companies that conduct hazardous work in laboratories, such as handling chemicals. In addition, they provide detailed advice on health and productivity management to further enhance the value of companies.

Training course for tenants (July 2023)

■About the Open Innovation Support Program

MITSUI LINK-Lab's Open Innovation Support Program is an initiative that provides a wide range of solutions measures for the various challenges facing tenants on the two core components of: 1. Support for research and business; and 2. Support for communication and networks. In the first stage of the program, LINK Stock opened in January 2024 within MITSUI LINK-Lab SHINKIBA 2 as a "convenience store for researchers" that sells consumables and reagents from one item at a time, provides research equipment rental services, and offers experiment support services. In addition, it provides a science concierge for consultation on matters such as research and business strategies, provides common equipment rooms for shared use of expensive general-purpose equipment, hosts events to promote exchange and collaboration, and supports innovation creation throughout the whole neighborhood by the local community.

【Reference releases】
・January 29, 2024 "MITSUI LINK-Lab LINK Stock"
https://www.mitsuifudosan.co.jp/english/corporate/news/2024/0129/
・May 18, 2023 "MITSUI LINK-Lab Open Innovation Support Program Launched"
https://www.mitsuifudosan.co.jp/english/corporate/news/2023/0518_02/

■ Life Science Innovation Network Japan, Inc. (LINK-J)

LINK-J is a general incorporated association established primarily by Mitsui Fudosan and academia-industry volunteers. Based in Tokyo's Nihonbashi area, which serves as a hub for pharmaceutical-related enterprises, LINK-J aims to facilitate creation of new industries by promoting open innovation in the life sciences realm through industry-government-academia cooperation. LINK-J promotes interdisciplinary exchanges of people and technologies in the complex field of life sciences, which spans various scientific disciplines including medical science as well as physics and engineering, along with new technologies such as information and communications technology (ICT) and artificial intelligence (AI). https://www.link-j.org/en/

■Sustainability in the Mitsui Fudosan Groupy

Based on the meaning of its "& mark," "to generate new value with society through cooperation, coexistence and co-creation, we forge ahead, innovating," the Mitsui Fudosan Group views the "creation of social value" and the "creation of economic value" as two wheels of a cart. Accordingly, we believe that the creation of social value leads to the creation of economic value, and that this economic value then creates even greater social value.
Moreover, we identified six Group Materiality priority issues when formulating our new management philosophy in April 2024. These Group Materiality priority issues are (1) Contribute to industrial competitiveness, (2) Coexist with the environment, (3) Health and Vitality, (4) Safety and security, (5) Diversity and inclusion, and (6) Compliance and governance. The Mitsui Fudosan Group will work to address each of the materialities through its core business activities and contribute to the promotion of sustainability.

(Reference)
・ Group Management Philosophy and Long-Term Vision
https://www.mitsuifudosan.co.jp/english/corporate/innovation2030/
・ Group Materiality
https://www.mitsuifudosan.co.jp/english/esg_csr/approach/materiality/

* The initiatives outlined in this release are designed to help address the following 4 Sustainable Development Goals (SDGs).

Mitsui Fudosan Life Science Innovation Promotion Project

Mitsui Fudosan regards the creation of new industries for a broader business area as an important strategy. By sharing knowledge, technology, and assets with key players such as startups, universities, hospitals, and major pharmaceutical companies, Mitsui Fudosan is pursuing research and development that goes beyond industry boundaries and is creating an ecosystem by building communities, establishing locations, and providing funding, thereby driving innovation in the life sciences.

• Building communities
  LINK-J aims to promote open innovation and build ecosystems in the life sciences. To facilitate this, LINK-J hosts projects for "interaction and cooperation" as well as "training and support." As of February 2024, LINK-J has 810 members, and it conducted 1,142 interaction and cooperation events in 2023.
• Establishing locations
  Mitsui Fudosan will prepare physical spaces for constructing ecosystems that will promote the creation and growth of new industries through innovation. In addition to rental labs and offices, the Company has developed a series of 13 life science buildings centered on the areas of Nihonbashi and near Doshomachi in Osaka. Since setting up these bases, 185 new tenants (as of April 31, 2024) have gathered in these areas.
• Providing funding
  Mitsui Fudosan makes limited partner investments to further accelerate the creation of new industries by enabling the commercialization of a greater number of sophisticated technological seeds at universities and research institutions and supporting life science startup companies.

Development of Rental Laboratory and Office Business

In Japan, we launched a new asset class - Mitsui Lab & Office - in May 2019. This is part of our efforts to "establish locations" that support innovation in life sciences and to "build communities" in collaboration with Life Science Innovation Network Japan, Inc. We aim to support innovation in life sciences through the creation of an R&D ecosystem that transcends industry boundaries by "building communities," "establishing locations" and "providing funding." There are now four Mitsui Lab & Office locations in Japan (MITSUI LINK-Lab KASAI, MITSUI LINK-Lab SHINKIBA 1, MITSUI LINK-Lab SHINKIBA 2, MITSUI LINK-Lab KASHIWANOHA 1) and we have plans to open more in the Tokyo metropolitan area and Osaka.