August 16, 2024
For Immediate Release
Name of REIT Issuer:
CRE Logistics REIT, Inc.
2-10-1, Toranomon, Minato-ku, Tokyo, Japan
Tsuyoshi Ito, Executive Director(TSE Code: 3487)
Asset Manager
CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Contact Person:
Hirohisa Toda, Executive Officer, Head ofCorporate Planning and General Affairs
Tel: +81-3-5575-3600

Notice Concerning Sale of Trust Beneficiary Right to Real Estate in Japan(LogiSquare Kuki Ⅱ)
CRE Logistics REIT, Inc. (“CRE REIT”) hereby announces that CRE REIT Advisers, Inc. (the “AssetManager”), an asset management company to which CRE REIT entrusts the management of its assets,
decided on August 16, 2024 to sale the trust beneficial right in LogiSquare Kuki Ⅱ (the “Asset for Sale”).
Details are as follows.
1. Overview of the saleCategory

Logistics-related facility

Property name

LogiSquare Kuki Ⅱ

Location

Kuki-shi, Saitama

Payment date / Planned sale date

①December 26, 2024

②January 31, 2025

③July 1, 2025

(Note 1)(quasi-co-ownership(quasi-co-ownership(quasi-co-ownershipinterest 30.0%)

interest 37.5%)

interest 32.5%)②

933 million yen③

809 million yen②

715 million yen③

620 million yen②

215 million yen③

185 million yen

Anticipated sale price (Note 2)

2,490 million yen①

Anticipated book value (Note 3)

1,909 million yen①

Anticipated gain on sale (Note 4)

747 million yen
573 million yen

570 million yen①

169 million yen

Appraisal value (Note 5)

2,490 million yen

Sale and purchase agreement date /August 16, 2024

Date of determination of planned sale
Settlement method

To be received in lump sum upon delivery

Existence or non-existence of intermediary

None

Buyer

Please refer to “4. Buyer profile”(Note 1) “Payment date / Planned sale date” is the date of scheduled sale and purchase set forth in the agreement on sale andpurchase of the Asset for Sale. “Payment date / Planned sale date” and the sale ratio are subject to change upon
agreement between CRE REIT and the buyer.

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(Note 2) “Anticipated sale price” is the sale price set forth in the agreement on sale and purchase of the Asset for Sale. The saleprice does not include national and local consumption taxes or sale costs and is rounded down to the nearest million yen.
The same applies hereinafter.
(Note 3) “Anticipated book value” is the anticipated book value of quasi-co-ownership interest in the Asset for Sale on eachplanned sale date and is rounded down to the nearest million yen. The same applies hereinafter.
(Note 4) “Anticipated gain on sale” is calculated by deducting anticipated book value and expenses related to the sale fromanticipated sale price and is rounded down to the nearest million yen. The same applies hereinafter.
(Note 5) “Appraisal value” is the value indicated in the real estate appraisal report as of June 30, 2024. The same applies
hereinafter.

2. Reasons for the sale
The Asset for Sale has a 15-year lease agreement with the tenant, and as of the end of June 2024, theremaining lease term is 7.7 years, making the Asset for Sale the property with the longest remaining
lease term among assets held by CRE REIT, and it has contributed to stable management of CRE REIT.
On the other hand, market rents are likely to continue to rise in the logistics real estate leasing market,
and although the Asset for Sale has potential for rent increases, it will take time to realize the rent
increases. Taking into consideration the real estate trading market and the circumstances of CRE REIT,
we have determined that realizing unrealized gains and returning gain on sale over three fiscal periods
will contribute to maximizing unitholder value. Of the proceeds from the sale, the amount equivalent to
the gain on sale will be returned as distributions, and the amount equivalent to the book value will be
flexibly utilized for measures that contribute to maximizing unitholder value, such as future returns tounitholders, repayment of borrowings or acquisition of assets and strategic capital expenditures.
3. Details of the Asset for Sale
An overview of the trust beneficiary right in real estate, the Asset for Sale, is shown in the table below.
The terms used in each column of the table are as described in the following, which is based on
information as of the end of June 2024 unless otherwise provided herein.
(i) Descriptions concerning “property no.” and “use”
・“Property no.” consists of a number and code that indicates the type of each property. The code “M” indicateslogistics-related facilities located in the Tokyo Metropolitan Area, the code “K” indicates those located in
Kansai Area, and the code “O” indicates those located in areas other than the Tokyo Metropolitan Area andKansai Area.
・“Use” is the use(s) of the Asset for Sale.
(ii) Descriptions concerning “Outline of specified asset”
・“Acquisition price” is the purchase price of the trust beneficiary interest set forth in the agreement for saleand purchase of the trust beneficiary interest for the Asset for Sale at the time of acquisition. The purchaseprice does not include national and local consumption taxes or acquisition costs.
・“Overview of trust beneficiary right” is the content of the respective trust agreement for the real estate in trustthat is concluded with a trust beneficiary.
・“Location” of the land is the residence indication or the location of the building recorded in the register (oneof the lot numbers, if more than one address was assigned).
・The land “area” is the area recorded in the register. This area is the entire land area for the building, whether
the property is subject to co-ownership or quasi co-ownership. This area may not match actual land areas.
・“Zoning” of the land is the districts and zones prescribed in Article 8, paragraph 1 of the City Planning Act

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(Act No. 100 of 1968, including all subsequent amendments, the “City Planning Act”).
・ “ Building coverage ratio/floor-area ratio” for the land is the upper limit of the building coverage ratio
determined by city planning in accordance with zoning and other factors (designated building coverage ratio)
and the upper limit of the floor-area ratio (designated floor-area ratio). Where there are more than one suchratio, all such ratios are listed. The designated building coverage ratio may be relaxed or made more restrictive
depending on whether there are fire-resistant buildings in the fire zone or for other reasons. The designatedfloor-area ratio may also be relaxed or made more restrictive due to the width of the roads adjacent to the landor for other reasons. These ratios may differ from the actual building coverage ratio and floor-area ratio applied.
・“Type of ownership” of the land and building is the type of rights pertaining to the land and building for theproperty that CRE REIT or a trustee.
・“Building structure” and “completion date for construction” of the building are the building structure and thecompletion date for construction in the register for the building.
・The building “total floor area” and “type” are the area and type recorded in the register for the building. This
“total floor area” is the entire area for the building, whether the property is subject to co-ownership or quasi
co-ownership. In addition, “total floor area” is the sum of total floor area of the main building and any annex.
・“Master lessee” is the company with which an effective master lease agreement is concluded as of today for
the Asset for Sale.
・“Master lease agreement” is the type of master lease agreement (with a distinction between the pass-throughtype and the rent fixed type) that is concluded between the owner and the Master lessee for the Asset for Sale.
・“PM Company” is the company with which an effective property management agreement is concluded as oftoday for the Asset for Sale.
・“Number of tenants” is the number of tenants who lease the Asset for Sale from CRE REIT based on leaseagreements as of the end of June 2024. Where a master lease agreement has been signed, “number of tenants”
is the total number of end tenants with regard to any property based on a pass-through type master lease.
Moreover, where an end tenant shares with a third party or subleases all of or a portion of the leased lot to athird party, such third party is not included in “number of tenants.”
・“Total leasable area” is the area of the portions that are deemed leasable based on the respective leaseagreements concerning the Asset for Sale that has been concluded or the floor plan, etc. as of the end of June
2024.
・“Occupancy rate” is the ratio expressed as a percentage of the total leased area to leasable area of the Asset for
Sale as of the end of June 2024, rounded to the first decimal place.
・“Notes” are matters that are deemed to be material with respect to relationships of the rights, usage, etc. of
the property as of today and other matters that are deemed to be material in consideration mainly of thepotential impact on the appraised value of the Asset for Sale, and the profitability or disposability thereof.
(iii) Descriptions in the column for “outline of leasing”
・“Lessee,” “lease form,” “lease period,” “leased area,” “rent,” “security deposit and guarantee money,” “rentrevision,” “premature cancellation” and “penalty” are the contents of each lease agreement that has beenconcluded for the Asset for Sale as of the end of June 2024 (in the case of the pass-through type master leaseagreement, the lease agreement with the end tenant).
・“Type of business” is the type determined upon judgment of the main products handled/business format ofeach tenant based on information gathered from tenants by the Asset Manager through interviews and othermeans usually upon conclusion of the lease agreement.
(iv) Descriptions in the column for “outline of real estate appraisal report”
・The column for “outline of real estate appraisal report” is written based on the real estate appraisal reportobtained from Japan Real Estate Institute.

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LogiSquare Kuki Ⅱ
Property no.
M-3

LogiSquare Kuki Ⅱ

Category

Logistics-related facilities

Outline of specified asset
Type of specified asset

Real estate trust beneficiaryright

Acquisition dateFebruary 7, 2018

Acquisition price¥2,079,000,000

Land

Entrustment
February 7, 2018
Overviedate
w of
Mitsubishi UFJ Trust andtrust
Trustee
Banking Corporation
beneficia
Trust maturity
ry right
February 28, 2038
date
Building
Steel construction, alloy coatedstructuresteel sheet roof, two floors
Completion
date forFebruary 1, 2017
construction
Building Total floor
11,511.22㎡
area

Location

1390-5, Maeya, Happo,
Kuki-shi, Saitama

Area

9,846.41 ㎡

ZoningDistrict not designated(urbanization control area)

Building coverage
ratio/floor-area ratio

60% (Note) /200%

Type

WarehouseType of ownership

Proprietary ownership

Type ofownership

Proprietary ownership

Master lessee－

PM company

CRE, Inc.

Master lease agreement－

Number of tenants

1

Total leasable area

11,520.00㎡

Occupancy rate

100.0%

Notes:The owner of the land at the time of the construction of this building obtained a drainage discharge permit from Kuki-shi,
which manages a waterway adjacent to the land, for the discharge of drainage from a merged septic tank and rainwater into
the said waterway, and the trustee has succeeded to such permit.
A part of this land (approx. 147㎡) is located within the area of an urban planning road (3-4-2 Omiya Kurihashi Line,planned width of 21m (however, there is a difference between the planned line by Kuki-shi and the planned line by Saitama
Prefecture)). The property is located within the area. No decision has been made on the project, and details such as thetiming of the project and the area to be expropriated have not yet been determined.
(Note) The building coverage ratio is originally 60%, but has been eased to 70% as a result of applying the loosened regulations tothe corner lot.

Outline of leasing
LesseeType ofbusiness

Lease form

Lease period

Leased area

Rent

FUSOGOSEI
Co., Ltd.

Manufacturing

Fixed term
building lease15.0 years

11,520.00㎡

Undisclosed(Note)

Rent revision

Not allowed.

Premature
cancellation

Penalty

Security deposit andguarantee money
Undisclosed(Note)

Not allowed; provided, however, that premature cancellation may be approved under unavoidable
circumstances on the condition that the intent of the premature cancellation is notified in writing nolater than 6 months before the intended date of premature cancellation and that a penalty for thepremature cancellation be paid.
Amount equivalent to unexpired rent up to the end of the lease.
However, there will be no premature cancellation penalty in the following cases.
・If the lessee submits a written notice of cancellation for the period from August 1, 2024 to August 31,
2024, with a cancellation date of February 28, 2025.
・If the lessee submits a written notice of cancellation for the period from February 1, 2026 to February
28, 2026, with a cancellation date of August 31, 2026

(Note) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been
disclosed.

4Outline of real estate appraisal report
Property name

LogiSquare Kuki Ⅱ

Appraisal value¥ 2,490,000,000

Real estate appraiser

Japan Real Estate Institute

Date of valuation

June 30, 2024

Items

Details

Appraisal value indicated by the
income approachAppraisal value based on the direct
capitalization method(1) Operating Revenue

Comments, etc.

¥ 2,490,000,000 Appraised by applying the direct capitalization method andthe DCF (Discount Cash Flow) method.
¥ 2,500,000,000
Undisclosed (Note) (i)-(ii)(i) Effective gross income

Undisclosed (Note)(ii) Losses from vacancy, etc.

Undisclosed (Note)(2) Operational Expenses

Undisclosed (Note) Sum of values listed under a. to h.

a. Building maintenance costs

Undisclosed (Note)b. Utility expenses

Undisclosed (Note)c. Repair expenses

Undisclosed (Note)d. Property management fees

Undisclosed (Note)e. Tenant soliciting fees, etc.

Undisclosed (Note)

f. Taxes and public dues

Undisclosed (Note)

g. Insurance premiums

Undisclosed (Note)

h. Other expenses

Undisclosed (Note)(3) Net operating income¥ 108,253,000 (1)-(2)(4) Earnings from temporary
deposits

Undisclosed (Note)(5) Capital expenditure

Undisclosed (Note)

Net cash flow

¥ 105,155,000 (3)+(4)-(5)Capitalization rate

Appraisal value using the DCF
method

4.2％ Appraised by taking into consideration future uncertainties
and transaction yields on similar real estate, etc. as well as byadding and subtracting spreads attributable to locational
conditions, building conditions, and the terms of contract of
the subject real estate to and from the yield that serves as abenchmark for each region.
¥2,470,000,000

Discount rate

3.8％ Appraised by comprehensively taking into consideration theindividuality of the subject real estate with reference to theinvestment yields of similar real estate.

Terminal capitalization rate

4.4％ Appraised by comprehensively taking into consideration
future trends of the investment yield, risks of the subject realestate as an investment target, a general projection of the
future economic growth rate and trends of real estate prices
and rents, etc.

Integrated value¥2,230,000,000

Proportion of land

35.0%

Proportion of building
Other matters for consideration by theappraiser

65.0%
None

(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This isbecause the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm theinterests of unitholders.

54. Buyer profile
The buyer of the Asset for Sale is a domestic leasing company, but the information has not been
disclosed as consent for disclosure has not been obtained from the buyer. The buyer does not have any
capital, personal, or trade relationships to be noted between CRE REIT and the Asset Manager, anddoes not fall under the category of a related party or a person with special interest in CRE REIT and theAsset Manager.
5. Financial impacts on CRE REIT in the event of failure to fulfill forward commitment
The 1st, 2nd and 3rd scheduled planned sale date of the Asset for Sale fall under the category of
forward commitments, etc., as they are scheduled to be one month or more after the sale and purchaseagreement date. In accordance with the terms and conditions of the sale and purchase agreement for
the Asset for Sale, if the buyer fails to execute the payment terms by the agreed date as well as failing toperform other contractual obligations, CRE REIT has the right to demand the buyer to remedy suchbreach within a specified amount of time. If the breach is not remedied within the specified duration,or if it is obvious that it is impossible to remedy the breach within a specified amount of time, the saleand purchase agreement can be terminated immediately without specified duration. Moreover, CRE
REIT has the right to claim compensation for damages amounting to 20% of the sale price (However,excluding, consumption tax and local consumption tax). Given that CRE REIT is the seller of the asset,
CRE REIT does not bear any financing risk with respect to the buyer’s payment obligation.
Even if the forward commitment is breached, it is assumed that the impact to CRE REIT’s finances islow.
6. Future outlook
For information on the outlook of the operating results of CRE REIT, please refer to the results
forecasts for the fiscal period ending December 31, 2024 and the fiscal period ending June 30, 2025
announced today in the “Summary of Financial Results for the 16th Fiscal Period Ended June 30, 2024”.
* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/

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