b'GE T TING TO KNOW THE CEOJoe Zagranski , CEO,SCOA Real Estate PartnersQ: What made you interested in working in real estate in theQ: How did SCOA first venture first place? into the industrial market?A: When I was studying finance as an undergraduate student, IA: We wanted to expand ourwas interested in using my skills to see the result of our work, thebusiness beyond residentialphysical asset of a building being built. I wanted to see the impactreal estate and identified the of our efforts and help people achieve their dreams of owning aindustrial sector as an area of home or starting a business. growth. Through relationshipsQ: What were some of the first experiences in working in realwith Morgan Stanley executives, who had formed a company estate that set the tone for your career? focusing on industrial real estate, we found opportunities to enter A: My first job in real estate was with Merrill Lynch, where Ithis market and capitalize on the growth of e-commerce and provided mortgages to homebuyers and small business owners. Isupply chain optimization.enjoyed helping people purchase their first or second homes andQ: What gives you confidence in the real estate marketsbeing part of their journey to achieve the American dream. It wasstability despite its perceived volatility?fulfilling to contribute to their milestones and aspirations. A: : In the multifamily sector, there is a shortage of housing, and Q: How did you come to work for SCOA Real Estate Group? population growth and household formations outpace new A: I received a call from a recruiter about an interesting opportu- housing construction starts. This strong demand, combined with nity with Sumitomo, who had a master plan community projectapartments generally being an inflation hedge, provides stability. called Hamilton Mill in Atlanta. They needed someone to manageIn the industrial sector, the growth of e-commerce and supply and help complete the project, and thats how I got connectedchain optimization fuels demand for warehouse space, ensuring with SCOA Real Estate. its continued growth.Q: Why did you decide to establish SCOA Real Estate Q: As the CEO of SREP, how does it feel to hold this position?Partners (SREP) now, and what advantages does it bring? A: Being the CEO is a new challenge, and I appreciate the support A: SREP aims to be more autonomous and efficient by having afrom my teammates at SREP, our Board of Directors, the admin-quicker decision-making process. We want to work closely with ouristrative departments at Sumitomo. Im confident in our teams board of directors and have a more localized staff. With the currentcapabilities and look forward to delivering great results, building challenging market conditions, its the right time to capitalize oncommunities that residents and tenants can be proud of, and the underlying fundamentals of the real estate market, such as thecontributing positively to society.housing shortage and the growth of e-commerce. Q: How do you envision SREP in ten years?Q: Do you find it better to start with a blank slate and build aA: Our business plan for the next three years is to double our community from scratch or work with an existing property? investment size. In ten years, I hope to see SREP triple its invest-A: Building a community from the ground up allows us to createment size and expand our multifamily and industrial portfolios. value and tailor it to our vision. It provides the most significantAdditionally, we might explore related sectors such as data centers value creation in terms of net operating income. While buying anor medical offices.existing property can still be profitable, the opportunity for value creation is usually higher when starting from scratch.Expanding their portfolio further, SREP continues its foray intoIn an industry where adaptability is key, SREP remains committed the industrial real estate market, recognizing the potentialto staying ahead of the curve. They leverage their global network for growth in this sector. With the rise of e-commerce and theand in-depth market research to identify selective strategic need for efficient supply chain management, the demand foropportunities, allowing them to capitalize on emerging trends industrial warehouse and logistics facilities is on the rise. and unlock new potentialall with an increased speed that the By strategically investing in these properties, SREP aims tocompanys autonomy can now provide. capitalize on the evolving dynamics of the market andcontribute to the growth of this sector. (continued)Sumitomo Corporation of Americas 11'