February 1, 2023
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative:
Atsushi Kato, Executive Director(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato
President and CEO
Contact:
Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning the Transfer of Trust Beneficial Interests of Domestic Real Estate(Funabashi Hi-Tech Park Factory II)
Star Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment Corporation(“SAR”) entrusts the management of its assets, announces today of its decision to transfer the domestic real estate
trust beneficial interest of “Funabashi Hi-Tech Park Factory II” (hereinafter referred to as the "Asset to beTransferred", and the transfer of the Asset to be Transferred is referred to as the “Transfer”) as described below.
1.

Summary of Transfer(1)
Asset to be Transferred
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)

Property nameLocation (Indication of residential address)
Asset type
Expected sales price (Note 1)
Book value (Note 2)
Difference between the
expected sales price and book value (Note3)
Date of transfer decision
Date of execution of sale and purchaseagreement
Planned transfer date (Note 4)
Date of Receipt of Proceeds (Note 4)
Planned purchaser
Existence of intermediary
Use of sales proceeds

1

Trust beneficial interest in which the main
entrusted asset is domestic real estate
Funabashi Hi-Tech Park Factory II
631-13 Toyotomicho, Funabashi-shi, Chiba
Logistics
1,150 million yen
691 million yen
459 million yen
February 1, 2023
February 1, 2023
February 20, 2023
February 20, 2023
TOCALO Co., Ltd.
Yes (Note 5)
To be appropriated to purchase proceeds for theClass A Beneficial Interest and Class B Beneficial
Interest as described in the press releaseannounced today entitled “Notice Concerning
Acquisition of Mezzanine Loan Debt -Star Asia
Mezzanine Loan Debt Investment Series 8 (Class A
Beneficial Interest and Class B Beneficial Interest)”,and the remaining proceeds to be appropriated to(15)cash-on-hand to be used mainly as funds for future
property acquisitions.
Lump-sum payment upon transfer

Settlement method(Note 1) This figure is the sales price of the Asset to be Transferred which is stated in the trust beneficial interest
sale and purchase agreement for the Asset to be Transferred (and does not include various sale related
expenses).
(Note 2) “Book Value” represents the assumed value as of July 31, 2022
(Note 3) This is a reference figure calculated as the difference between the expected sales price and book value,
which is different from the gain or loss on sale.
(Note 4) This is the transfer date which is stated in the sale and purchase agreement.
(Note 5) The intermediary of the Transfer does not fall under “interested persons, etc.” as defined under theOrder for Enforcement of the Act on Investment Trusts and Investment Corporations or “Interested
Parties” as defined in the “Rules on Transactions with Interested Parties” which are internal rules of theAsset Manager.

2.

Reason for the Transfer
SAR and the Asset Manager are constantly aiming to maximize unitholder value and are pursuing various
possibilities towards strengthening the portfolio, such as by improving profitability by redevelopment of
individual properties under management and realizing potential value through dispositions, etc.
Also with respect to the Asset to be Transferred, given the current condition that existing tenant is notoperating the Asset to be Transferred and also given that floor area ratio (FAR) of the Asset to be Transferredpermitted under laws and regulations are not fully used, we have concurrently conducted verifications of
the following: (1) redevelopment by building extension or by reconstruction in anticipation of attracting new
tenants, and (2) returning gain on sales from disposition to unitholders. During the process, we received a
specific offer of a desired purchase price from the planned purchaser who is based in the area nearby the
Asset to be Transferred, and as a result of comparison with and verification of the possibility of improving
profitability through redevelopment, we have determined that realizing a gain on sale through thedisposition and reinvesting the sales proceeds for acquisition of new assets would most contribute tomaximization of unitholders value.
A part of the sales proceeds from the Transfer is expected to be appropriated to the purchase proceeds for
the Class A Beneficial Interest and the Class B Beneficial Interest as described in the announcement today
entitled “Notice Concerning Acquisition of Mezzanine Loan Debt -Star Asia Mezzanine Loan Debt Investment
Series 8 (Class A Beneficial Interest and Class B Beneficial Interest)”, and such acquisition together with theTransfer is positioned as the “8th Asset Replacement”.
We would also like to report that the fixed-term building lease agreement with the existing tenant has
been cancelled as of today, and we expect to receive a cancellation penalty (Note) on February 20, 2020.
(Note) The amount is not disclosed due to request from the tenant.

3.

Description of Asset to be Transferred

Property
No.

LGC-10Property
nameFunabashi Hi - Tech Park Factory II

Category

Logistics

Overview of the specified asset
Type of specified asset

Beneficial interest in trust

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Expected sales price

1,150 million yen

Planned transfer dateFebruary 20, 2023

2

Location

631-13 Toyotomicho, Funabashi-shi, Chiba

Indication of residential
address
Nearest station
Form ofLand

ownership
Site area―
Approx. 13.5 Km from “Hanawa IC” on KEIYO ROAD
Proprietary ownership
Use district

8,268.35㎡

Building
coverage

Industrial District

Floor area ratio

60 %

200 %

ratio
Form of

Building

ownership

Proprietary ownership

Total floor

4,384.83㎡ (including 2

areaannex buildings)

Construction September 5, 2001
completion
Property management

Tokyo Capital Management(PM) company

Co., Ltd.

Type of master lease

Pass-throughTrust expiration dateJuly 31, 2030

Use

Factory

Structure and floors

Steel-frame structure with flat roof, 2 stories

Master lease company

Master Lessee Mars Limited GK

Security

Unsecured

Status of leasing (as of the end of January 2023)
Total leasable area

4,233.92㎡

Total leased area

Not disclosed (Note 1)

Total number of1

tenants
Monthly rent (includingcommon area

Not disclosed (Note 1)

maintenance fee)
Security and guarantee
deposits

Not disclosed (Note 1)

Occupancy rates
September 2022
100.0 %
Special notation

October 2022
100.0 %

November 2022

December 2022

100.0 %

January 2023

100.0 %

Not applicable.

(Note) Not disclosed, because approval for disclosure has not been obtained from the Tenant.

4.

Profile of the planned purchaser
Name

TOCALO Co., Ltd.

Location

6-4-4, Minatojimaminami-Machi, Chuo-Ku, Kobe, Hyogo

Representative

Representative Director President and Executive Officer Noriyuki Mifune
1. Surface modification processing and machine processing of metals, alloys, ceramics,
and plastics, and manufacturing and sales of such processed products.
2. Weld overlay processing of metals and alloys, and manufacturing and sales of suchprocessed products.
3. Contractor business for each of the preceding items.
4. Sale of materials for surface modification processing and surface modification processequipment and related products of Item 1 above.
5.-12: [omitted]
13. All other ancillary or related business listed in each of the preceding items.
2,658 million yen (as of September 30, 2022) (Note 1)

Main Business Description

Capital3100.0 %

Established

July 1, 1951

Net Asset

55,990 million yen (as of September 30, 2022) (Note 1)

Total Asset

72,454 million yen (as of September 30, 2022) (Note 1)

Major shareholder and

The Master Trust Bank of Japan, Ltd

16.74 % (as of September 30, 2022)

ratio of shareholding
Relationship with SAR or the Asset Manager
Capital Relationship

There is no capital relationship to report.

Personnel

There is no personnel relationship to report.

Relationship
Business Relation

There is no business relationship to report.

Related party or not

The company is not a related party of SAR or the Asset Manager. The company does not fallunder the category of interested person, etc. as provided for in Act on Investment Trusts
and Investment Corporations (Act No. 198 of 1951, as amended)(Note 1) Amounts of less than 1 million yen have been rounded down to the nearest million yen.

5.

Future outlook
As a result of the Transfer, changes will arise to the assumptions used for the forecast of operating results
for the fiscal period ending July 31, 2023 (February 1, 2023 to July 31, 2023) which was announced in the“(REIT) Financial Report for Fiscal Period Ended July 31, 2022” on September 13, 2022. For details, pleaserefer to the press release announced today “Notice Concerning Revision to Forecasts for Operating Resultsand Distributions for the 15th Fiscal Period Ending July 31, 2023”.

6.

Summary of Appraisal Report(Unit: Yen)
Summary of Real Estate Appraisal Report
Property name

Funabashi Hi - Tech Park Factory II

Appraisal value

704,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 31, 2022
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details

Description, etc.

704,000,000

58,408,000(a)Gross potential income

58,408,000(b) Vacancy loss, etc.

0(2) Operating expenses

10,424,000

Fee
Utilities expenses
Repair expenses

direct capitalization method and the DCF method.

710,000,000(1) Operating revenue ((a)−(b))

Maintenance and management

The preliminary calculation was made by connecting the prices derived under the

300,000
0
1,862,000

Booked by assessing rent revenues which can be stably received in the mid- to longterm, based on current rents and assuming new rents under new leases.
Not booked, as it has been determined that it should be considered within thecapitalization rate.

Booked based on actual results of income and expenditures.
Not booked, as utility expenses are borne by the lessees.
Booked by referring to actual incurred amounts, and also taking into account thelevels of such expenses for similar real estate properties and the repair and renewal

4

expenses in the ER.
Property management fee

1,800,000

Tenant leasing cost, etc.

Taxes and other publiccharges
Insurance premium06,312,000

150,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Investment profits from
deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))(7) Capitalization rate

Indicated value of DCF method

properties.
Not booked, as it has been determined that it should be considered within thecapitalization rate.
Booked taking into account actual amounts paid and the contents of burden
adjustment measures etc.
Assessed by referring to insurance contracts and insurance premium levels of similar
real estate properties.
None

47,984,000

487,000

4,459,000

The investment return has been assessed to be 1.0%
Assessed taking into reference repair and renewal expenses in the ER and the levels
for similar real estate properties.

44,012,000

6.2 %Assessed by comprehensively taking into account the competitiveness of the subject
real estate property, etc.

698,000,000

Discount Rate

5.4 %Terminal capitalization rate

7.0 %Indicated value by cost approach

7.

0Booked taking into reference contract terms and the levels for similar real estate

679,000,000

Ratio of land

79.0 %

Ratio of building

21.0 %

Assessed by comprehensively taking into account the individual features etc. of thesubject real estate property.
Assessed by comprehensively taking into account future trends, the risks pertaining to
the subject real estate property, ad market risks, etc.
Preliminary calculation by adding the land price and building price, and multiplying
the total amount by the market correction ratio.

Matters considered in reconciliation of indicated values andAdopted the indicated value by income approach, and the value indicated by the cost

determination of appraisal values

approach was used for reference only upon making the determination.

Other matters necessary for investors to appropriately understand the relevant information and makedecisionsConcerning risks related to the Transfer, there are no changes to the contents described in “Part I: Fund
Information / Section 1 - Status of the Fund / 3. Investment Risks” of the Securities Report submitted on
October 28, 2022.

5

<Other press releases announced today>
・Notice Concerning Acquisition of Mezzanine Loan Debt Star Asia Mezzanine Loan Debt Investment Series 8 (Class
A Beneficial Interest and Class B Beneficial Interest)
・Notice Concerning Early Repayment of Borrowings
・Notice Concerning Revision to Forecasts for Operating Results and Distributions for the 15th Fiscal Period Ending
July 31, 2023
<Appendix>
・Reference Material 1
・Reference Material 2・Reference Material 3

Summary of portfolio after the Transaction
Portfolio list after the Transaction
General Description of Asset to be Transferred – Explanation of various
terms＊ Star Asia Investment Corporation website address:

http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated February 1, 2023. However, no assurance
or warranties are given for the completeness or accuracy of this English translation.

6

Reference Material 1

Summary of portfolio after the Transfer<By Asset type (use)>
Asset type (use)Number of Property

Total Acquisition Price

Ratio (%)

(in million yen)

(Note1)

Office21

74,787

38.5

Retail527,754

14.3

Residence

19

37,77919.5

Logistics

8

29,663

15.3

Hotel
Total

9

24,14412.4

62

194,127

100.0<By Region>
RegionTotal Acquisition Price

Ratio (%)

(in million yen)

(Note1)Five central wards
Greater Tokyo
Area

56,24829.0

73,01837.6

of Tokyo (Note 2)
Other areas in

66.6 (Note 3)

Greater Tokyo Area
Areas other than Greater Tokyo Area

64,861

33.4

Total

194,127100.0(Note1) Ratios have been calculated based on the total acquisition price, and stated by rounding to the 2 nd decimal place.
Therefore, ratios may not add up to 100%.
(Note2) The five central wards of Tokyo are Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, and Shibuya-ku.
(Note3) The investment ratio for the Greater Tokyo Area excluding the 3 suburban-type retail facilities for which our policy is
to dispose of is 72.3%.

7

Reference Material 3 Portfolio list after the Transfer<Real Estate, etc.>

Property
No.

Property Name

(Note 1)

(Expected)

Real estate

Acquisition

appraisal

Investment

Location

Price

value

ratio

(Note 2)

(in million(in million

(%)

yen)

yen)

(Note 5)(Note 3)(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

2,973

3,070

1.5

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-Shi, Osaka

6,065

7,070

3.1

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,650

0.9

OFC-06

Shibuya MK Building

Shibuya-ku, Tokyo

2,042

3,290

1.1

6,320

8,280

3.3

2,286

3,050

1.2

Kanagawa-ku, Yokohama-

OFC-08Asahi Building

OFC-09Hakata-eki East Place

OFC-10Nihonbashi Hamacho Park Building

Chuo-ku, Tokyo

1,450

1,530

0.7

OFC-11

Amusement Media Gakuin Honkan

Shibuya-ku, Tokyo

2,580

2,790

1.3

7,440

7,390

3.8

Shi, Kanagawa
Hakata-ku, Fukuoka-Shi,
Fukuoka

Higashinada-ku,

OFC-12

Higashi Kobe Center Building

OFC-13

Amusement Media Gakuin Shinkan

Shibuya-ku, Tokyo

1,020

1,230

0.5

OFC-14

Seishin BLDG.

Shinjuku-ku, Tokyo

11,20011,7005.8

OFC-15

Urban Center Kanda Suda-cho

Chiyoda-ku, Tokyo

5,350

5,440

2.8

OFC-16

Urban Center Kanda Tsukasamachi

Chiyoda-ku, Tokyo

4,590

4,630

2.4

OFC-17

Takadanobaba AccessShinjuku-ku, Tokyo

3,990

3,990

2.1

OFC-18

Azabu Amerex BLDG.

Minato-ku, Tokyo

2,780

2,910

1.4

OFC-19Hiei-Kudan BLDG.

Chiyoda-ku, Tokyo

2,400

2,390

1.2

OFC-20Urban Center Shin-Yokohama

Yokohama-Shi, Kanagawa

2,300

2,540

1.2

OFC-21The Portal Akihabara

Chiyoda-ku, Tokyo

1,510

1,490

0.8

OFC-22

Urban Center Tachikawa

Tachikawa-Shi, Tokyo

1,804

1,980

0.9

OFC-23

Urban Center Hakata

2,870

3,100

1.5

OFC-24

Urban Center Fujisawa

Fujisawa-Shi, Kanagawa

2,054

2,200

1.1

74,78782,720

38.5

RTL-01

La Park Kishiwada

Kishiwada-Shi, Osaka

5,400

5,230

2.8

RTL-02

Suroy Mall Chikushino

Chikushino-Shi, Fukuoka

6,550

6,320

3.4

RTL-03

Seiyu Minakuchi

Koka- hi, Shiga

3,320

3,330

1.7

RTL-05

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,280

1.5

RTL-06abeno nini (Retail)

9,500

9,500

4.9

27,754

27,660

14.3

Kobe-Shi, Hyogo

Hakata-ku, Fukuoka-shi,
Fukuoka
Office Subtotal

Abeno-ku, Osaka-Shi,
Osaka
Retail Subtotal

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,740

1.1

RSC-02

Urban Park Daikanyama

Shibuya-ku, Tokyo

6,315

9,430

3.3

1,490

1,530

0.8

1,460

1,560

0.8

RSC-05

Urban Park Namba

RSC-06

Urban Park Gokokuji

Naniwa-ku, Osaka-Shi,
Osaka
Toshima-ku, Tokyo

8

RSC-07

Urban Park Kashiwa

Kashiwa-Shi, Chiba

1,186

1,190

0.6

RSC-08

Urban Park Ryokuchi Koen

Suita-Shi, Osaka

1,550

1,680

0.8

RSC-09Urban Park Koenji

Suginami-ku, Tokyo

1,167

1,180

0.6

RSC-10Urban Park Ichigao

1,810

2,060

0.9

RSC-11

Urban Park Gyotoku

Ichikawa-Shi, Chiba

1,430

1,570

0.7

RSC-12

Shiroi Logiman

Shiroi-Shi , Chiba

2,470

2,470

1.3

RSC-13

Urban Park Sekime

Osaka-Shi, Osaka

2,150

2,380

1.1

RSC-14

Urban Park Imazato

Osaka-Shi, Osaka

993

1070

0.5

RSC-15

Urban Park Yoyogi

Shibuya-ku, Tokyo

1,740

1,890

0.9

RSC-16

Urban Park Tokiwadai Koen

3,506

3,920

1.8

RSC-17

Urban Park Mitsuike Koen

3,160

3,520

1.6

RSC-18

Urban Park Ryogoku

1,115

1,240

0.6

RSC-19Urban Park Mizonokuchi

2,019

2,100

1.0

RSC-20Urban Park Miyamaedaira

1,060

1,320

0.5

RSC-21

Urban Park Tsurumi

1,113

1,190

0.6

37,77944,040

19.5

6,942

7,670

3.6

3,560

4,630

1.8

Aoba-ku, Yokohama-Shi,
Kanagawa

Hodogaya-ku, YokohamaShi, Kanagawa
Tsurumi-ku, YokohamaShi, Kanagawa
Sumida-ku, Tokyo
Takatsu-ku, Kawasaki-Shi
Kanagawa
Miyamae-ku, Kawasaki-Shi
Kanagawa
Tsurumi-ku, Yokohama-Shi
Kanagawa
Residence Subtotal
Iwatsuki-ku, Saitama-Shi,

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Funabashi-Shi, Chiba

7,875

8,900

4.1

LGC-04

Baraki Logistics

Ichikawa-Shi, Chiba

4,700

4,980

2.4

LGC-05Tokorozawa Logistics

Tokorozawa-Shi, Saitama

1,300

1,550

0.7

LGC-07

Funabashi Nishiura Logistics II

Funabashi-Shi, Chiba

821

890

0.4

LGC-08

Matsubushi Logistics

Kitakatsushika, Saitama

2,755

3,180

1.4

LGC-09Funabashi Hi-Tech Park Factory I

Funabashi-Shi, Chiba

1,710

1,710

0.9

Logistics facility Subtotal

29,66333,51015.3

Kita-ku, Osaka-Shi, Osaka

2,069

2,280

1.1

1,750

1,410

0.9

3,827

3,470

2.0

3,248

3,200

1.7

1,970

1,910

1.0

HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03REMBRANDT STYLE Tokyo Nishikasai

HTL-04

BEST WESTERN Yokohama

HTL-05
HTL-06
HTL-07
HTL-08

Saitama
Kanagawa-ku, YokohamaShi, Kanagawa

Naniwa-ku, Osaka-Shi,
Osaka
Edogawa-ku, Tokyo
Tsurumi-ku, YokohamaShi, Kanagawa

The BREAKFAST HOTEL FUKUOKA

Chuo-ku, Fukuoka-Shi ,TENJIN

Fukuoka

GLANSIT AKIHABARA

Chiyoda-ku, Tokyo

2,500

2,440

1.3

Edogawa-ku, Tokyo

3,180

3,130

1.6

2,000

1,410

1.0

REMBRANDT STYLE Tokyo Nishikasai
Grande
KOKO HOTEL Osaka Namba

Naniwa-ku, Osaka-Shi,
Osaka

9

HTL-09(Note 1)

abeno nini (Hotel)

Abeno-ku, Osaka-Shi,

3,600

3,600

1.9

Hotel Subtotal

24,14422,850

12.4

Total

194,127

210,780

100.0

Osaka

“Property No” categorizes the assets held by SAR by offices (OFC), retail (RTL), residences (RSC), logistics (LGC), and hotels (HTL), andnumbers the properties separately for each category. The same applies below.

(Note 2)

“Location” states the minimum individual administrative division in the region where the assets held by SAR as of today (hereinafter“Already Acquired Assets (Real Estate Etc.)”) and the Asset to be Acquired are located.

(Note 3)

”Acquisition price” means the sale and purchase proceeds described in the sale and purchase agreement related to each acquired
asset (real estate properties etc.), and “Planned Acquisition Price” means the planned sale and purchase proceeds as stated in theagreement signed with the Seller in relation to the Asset to be Acquired, and each price is stated by rounding the amounts of less than
1 million yen to the nearest 1 million yen. The Acquisition Price and the Planned Acquisition Price do not include consumption tax,
local consumption tax, or expenses required for acquisition. However, with respect to “Minami-Azabu Shibuya Building”, as it is basedon a sale and purchase agreement for multiple properties where no price is established for each individual property, the amountderived by prorating the total sales price of the multiple properties based on the ratio of the appraisal values of each individual
property as of the time of their acquisition is stated as the “Acquisition Price”.

(Note 4)

”Real estate appraisal value” states the appraisal values stated in the real estate appraisal reports based on the price as of July 31,
2022, for already acquired properties, and the appraisal value stated in the real estate appraisal report based on the price as of August
1, 2022 with Urban Center Fujisawa, abeno nini(Retail) and abeno nini (Hotel).

(Note 5)“Investment ratio” shows the ratio of the (planned) acquisition price of each of acquired assets or Asset to be Acquired against thesum of the (planned) acquisition price for acquired assets and Asset to be Acquired rounded to the first decimal place.

10Reference Material 3: Description of table of Asset to be Transferred – Explanation of various terms(A)

Explanations of the “Property No.” and “Category” columns
The “Property No.” and “Category” columns states the numbering of the Asset to be Transferred by SAR,
which categorizes the assets by as offices (OFC), retail (RTL), residences (RSC), logistics, (LGC), and hotels(HTL), and then numbers the assets according to each category. In the case where a single property is acomplex facility with multiple uses, such property is categorized within the asset category with thehighest assumed total rent revenue.

(B)

Explanation of the “Overview of the Specified Asset” sectiona.

The “Trust expiration date” column states the trust expiration date stated in the agreement existing
as of the day of this announcement.

b.

The “Expected sales price” column states the sales proceeds for the Asset to be Transferred asstated in the sale and purchase agreement for the Asset to be Transferred (which does not include
consumption tax and expense required for the acquisition), rounded to the nearest 1 million yen.

c. The “Planned transfer date” column states the date on which SAR expects to execute the assignment.
d. The “Location” column states the lot number address as indicated in the real estate registry. The“Indication of residential address” column states the indication of the residential address, andwhere the indication of residential address has not been implemented, the location of the building
found in the real estate registry has been stated (if there are multiple locations, one of them has
been stated).
e.

Explanations of the “Land” section(i) The “Form of ownership” column states the type of right held by the trustee with respect to
the Asset to be Transferred.
(ii) The “Site area” column state the parcel area as described in the real estate registry, unlessotherwise stated in the annotation. Therefore, the stated area may not be the same as theactual current state.
(iii) The “Use district” states the type of use district as listed in Article 8 Paragraph 1 Item 1 of theCity Planning Act (Act No.100 of 1968, including any amendments made thereto)(hereinafterreferred to as the “City Planning Act”).
(iv) The “Building coverage ratio” column and “Floor area ratio” column, respectively, states
numbers as prescribed under the Building Standards Act, City Planning Act, and other related
laws and regulations.

f.

Explanations of the “Building” section(i) The “Form of ownership” column states the type of right held by, or is expected to be held by,
the trustee with respect to the Asset to be Transferred.
(ii) The “Total floor area” column states the total floor area indicated in the real estate registry,
unless otherwise annotated. Therefore, the stated total floor area may not be the same as theactual current state.
(iii) The “Use” column states the main use within the uses indicated in the real estate registry, an
may not be the same as the actual current state.
(iv) The “Construction completion” column states the timing of new construction of the mainbuilding as indicated in the real estate registry.

11

(v) The “Structure and floors” column states the structure indicated in the real estate registry forthe main building, and may not be the same as the actual current state. Concerning sectional
ownership buildings, the structure and number of floors of the entire building which includes
the sectional ownership building is stated.
g.

The “Property management (PM) company” column states, as of the date of this announcement,
the property management company to which property management operations is entrusted or is
expected to be entrusted.

h. The “Master lease company” column states, as of the date of this announcement, the master lease
company to which master lease operations is entrusted or is expected to be entrusted.
(C)

Explanations of the “Status of leasing” sectiona.

The “Total leasable area” column states the total floor area of the building pertaining to the Assetto be Transferred which is leasable (in the case where the common-use area is leased, the floor area
for such space is included), and does not include leasable areas for parking lots or other land used
for other purposes. The total leasable area does not state the area indicated in the real estateregistry, but states the area indicated in lease agreements or area calculated based on the building
drawing etc., and therefore does not necessarily coincide with the floor are indicated in the realestate registry.

b.

The “Total leased area” column states, of the total leasable area, the total of leased areas asindicated in lease agreements pertaining to the Asset to be Transferred as of January 31, 2023, anddoes not include leased space of parking lots or land used for other purposes.

c.

The “Occupancy rates” column states the ratio of total leased area to total leasable area for the
Asset to be Transferred, rounded to the second decimal place.

d.

The “Total number of tenants” column states the total number of tenants as indicated in leaseagreements related to the asset to be transferred as of January 31, 2023. In the case where a single
tenant is leasing multiple rooms for rent within the asset to be transferred, such tenant is counted
as one tenant for the relevant asset to be transferred, however, in the case where a single tenant isleasing rooms for rent for multiple assets to be transferred, the tenant shall be counted separately
for each asset to be transferred. In the case where a pass-through type master lease agreement isentered into with respect to an asset to be transferred, the total number of end tenants is stated.

e.

The “Monthly rent (including common area maintenance fee)” column states the total amount ofmonthly rents (including common-use fees, but does not include usage fees for trunk rooms,
signage, or parking lots etc., and only includes room rent. Also, free rent as of January 31, 2023 is
not taken into account) as indicated in lease agreements with each effective tenant as of January
31, 2023, rounded to the nearest 1000 yen.

f.

The “Security and guarantee deposits” column states the total amount of security deposits andguarantee deposits which are required under each lease agreement (limited to those where thetenants have already commenced occupying the property) related to the Asset to be Transferred asof January 31, 2023. In the case where a master lease agreement has been signed with respect tothe relevant asset to be transferred, the column states the total amount of security deposits andguarantee deposits in lease agreements signed with the end tenants.

(D)

Explanations of the “Special notation” column
The “Special notation” column states matters which are believed to be important in relation to the rights

12and obligations of the Asset to be Transferred or its usage etc., as well as matters which are believed to
be important when considering the degree of impact on the appraisal value, profitability, or disposabilityof the Asset to be Transferred.
(E)

Explanations of the “Summary of Real Estate Appraisal Report” sectiona.

The “Summary of Real Estate Appraisal Report” section has been written based on the real estateappraisal report prepared by Japan Real Estate Institute (a General Incorporated Association) withrespect to the Asset to be Transferred.

b.

The “Appraisal value” column merely states an indication of opinion regarding the value of the realestate property subject to appraisal as of the time of appraisal given by the real estate appraiserthat has conducted the appraisal pursuant to the Real Estate Appraisal Act (Act No. 152 of 1963, as
amended) and real estate appraisal standards etc.

c.

Even if the same real estate property is reappraised, there is a possibility that the appraisal value
may differ depending on the real estate appraiser conducting the appraisal, the appraisal method,
and timing of appraisal. Furthermore, the appraisal of real estate gives no guarantee or promise of
the possibility that the subject real estate property may be sold or purchased at the relevant
appraisal value as of today or in the future.

d.

The Japan Real Estate Institute (a General Incorporated Association) that conducted the appraisal
and SAR / the Asset Manager do not have any special interest relationships.

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