August 7, 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 Acquisition and Lease Contract with New Tenants, and Transfer, of Real Estate
Beneficiary Interests in TrustStar 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 acquire real estate beneficiaryinterests in trust for 11 real estate properties (hereinafter referred to as “Assets to be Acquired”, and such acquisition
to be referred to as the “Acquisition”) and lease of those real estate properties, and the transfer of real estate
beneficiary interests in trust for 1 real estate property (hereinafter referred to as “Asset to be Transferred”, and suchtransfer to be referred to as the “Transfer”, and the “Acquisition” and “Transfer” is collectively referred to as the“Initiative”), as described below.
SAR has positioned the acquisition related to “Urban Park Umejima” within the Acquisition and the Transfer (thetransfer of “Urban Park Koenji”) as the 10th asset replacement, as a part of active management pursuing the
maximization of unitholders’ interest. Concerning such asset replacement, please refer to the section “2. Reason for
the Acquisition, Leasing, and the Transfer - (2) Asset to be Transferred” below.
Furthermore, the broker of the Acquisition and the counterparties (Including those who will succeed to theposition of lessee, which is scheduled in December 2023.) under the lease agreements related to the 7 hotel
properties (of the Assets to be Acquired, this refers to the 7 properties which are hotels. The same applies below.)
fall under interested party, etc. as defined in Article 201 Paragraph 1 of the Act on Investment Trusts and Investment
Corporations (hereinafter referred to as the "Investment Trusts Act") and Article 123 of the Order for Enforcementof the Act on Investment Trusts and Investment Corporations (hereinafter referred to as the "Enforcement Order of
the Investment Trusts Act"), and they also fall under the category of interested party prescribed in the “Rules on
Transactions with Interested Parties” which are the voluntary rules set forth by the Asset Manager for preventing
conflict of interests regarding its management of SAR’s assets. Upon deciding on the intermediation of theAcquisition and signing of the lease agreements related to the above-mentioned 7 hotel properties, the AssetManager has conducted deliberations and approval processes in accordance with laws and regulations and suchrules.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

1

1.

Overview of the Assets to be Acquired and Asset to be Transferred(1) Overview of the Assets to be Acquired
Asset type

Propertyno.
(Note 1)Hotel

HTL-10

KOKO HOTEL Ginza 1-Chome

Hotel

HTL-11

KOKO HOTEL Sapporo Ekimae

Hotel

HTL-12

KOKO HOTEL Fukuoka Tenjin

Hotel

HTL-13

KOKO HOTEL Hiroshima Ekimae

Hotel

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

Hotel

HTL-15

Fino Hotel Sapporo Odori

Hotel

HTL-16

Best Western Plus Fukuoka Tenjinminami

Residence
Residence
Residence
Residence

RSC-22
RSC-23
RSC-24
RSC-25

Property nameLocation

Chuo-ku, Tokyo
Chuo-ku,
Sapporo-shi,
Hokkaido
Chuo-ku,
Fukuoka-shi,
FukuokaMinami-ku,
Hiroshima-shi,
Hiroshima
Kagoshima-shi,
Kagoshima
Chuo-ku,
Sapporo-shi,
Hokkaido
Chuo-ku,
Fukuoka-shi,
Fukuoka
Mitaka-shi, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Adachi-ku, Tokyo

Plannedacquisition
price(million yen)
(Note 2)
17,800Plannedacquisition date

6,700

5,000

4,100
September 1, 2023
3,800
4,200

3,800

Urban Park Mitaka
743
Urban Park Kamata Minami I
641
Urban Park Kamata Minami II
1,375
December 1, 2023
Urban Park Umejima
1,032
Total (11 properties)
49,191(Note 1)As for “Property no.”, please refer to “Reference Material 5 The terms used in the table of Description of Assets
to be Acquired and Asset to be Transferred” below.
(Note 2)“Planned acquisition price” indicates the planned sale and purchase price stated in the sale and purchaseagreement with the seller for the Assets to be Acquired, rounded to the nearest million yen. The planned saleand purchase price does not include consumption tax, local consumption tax and various expenses required forthe acquisition.
(1) Contract date(2) Planned acquisition date(delivery and settlement date)(3) Sellers(4) Acquisition financing: August 7, 2023 (Note 3): September 1, 2023 and December 1, 2023

: Please refer to “5. Planned Seller and Transferee Profile” below.
: Proceeds from the issuance of new investment units throughpublic offering (Primary offering) (Note 4) for which resolution wasmade at the Board of Directors meeting of SAR held on today,planned new borrowings (Note 5) and money on hand to beplanned etc.
(5) Settlement method: Payment of entire amount on planned acquisition date
(6) Presence or absence of: Presence
brokerPlease refer to “8.Overview of Broker” below.
(Note 3)With respect to “Urban Park Mitaka”, “Urban Park Kamata Minami I”, “Urban Park Kamata Minami II”, and“Urban Park Umejima”, SAR has entered into agreements for succession of status as purchaser under the
beneficiary interests in trust sale and purchase agreements for each of the properties from each of Star Asia
Sogo Kaihatsu K.K., Godo Kaisha Djebel, and Godo Kaisha Corrida on August 7, 2023. With respect to suchsuccession of status, SAR will not pay any consideration to each of Star Asia Sogo Kaihatsu K.K., Godo Kaisha
Djebel, and Godo Kaisha Corrida.
(Note 4)For further details, please refer to “Notice Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” announced today.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

2

(Note 5)For further details, please refer to “Notice Concerning Debt Financing” announced today.

(2) Overview of Asset to be Transferred
Asset type

Propertyno.
(Note 1)

Residence

RSC-09Location

Property nameUrban Park Koenji
Total

Suginami-ku, Tokyo(1 property)

Planned sales
price(million yen)
(Note2)

1,315

Planned transfer
date
August 31,
2023

1,315

(Note 1)As for “Property no.”, please refer to “Reference Material 5 The terms used in the table of Description of Assets
to be Acquired and Asset to be Transferred” below.
(Note 2)“Planned sales price” indicates the planned sale and purchase price stated in the sales and purchase agreementwith the purchaser for the Asset to be Transferred, rounded to the nearest million yen. The planned sale andpurchase price does not include consumption tax, local consumption tax and various expenses required for thetransfer.

(1) Contract date(2) Planned transfer date(delivery and settlement date)(3) Transferee(4) Planned sales price(5) Book value(Note3)(6) Gain on transfer (estimate)(7) Settlement method(8) Presence or absence of broker(9) Use of sales proceeds(10) Special notation: August 7, 2023
: August 31, 2023
: Please refer to “5. Planned Seller and Transferee Profile” below.
: 1,315 million yen: 1,184 million yen: 109 million yen: 67,107,080 yen to be received as deposit money on the signing dateof sale and purchase agreement, and the remaining amount is to bereceived in lump-sum payment on the planned transfer date.
: Presence: Proceeds from the sale of the property will be appropriated to a
portion of the purchase price of the Assets to be Acquired.
: Please refer to “4. Description of Asset to be Transferred” below.

(Note 3)The book value as of January 31, 2023 is stated.

2. Reason for the Acquisition, Leasing, and the Transfer(1) Assets to be Acquired
The Acquisition realizes promotion of the continued external growth strategy aiming towards
achievement of the objective formulated in SAR’s mid-term business plan (announced in March 2021) of“achieving asset size of 300 billion yen by 2026”. Through public offerings conducted for 3 consecutive years,
properties which are anticipated to achieve internal growth and properties which are anticipated to bringstable revenues in the mid- to long -term will be acquired.
The Assets to be Acquired are composed of 7 accommodation-specialized hotels with internal growthpotential and 4 relatively new residential properties which are anticipated to bring stable revenues. Throughthis Initiative, SAR’s asset size (Note 1) will expand to 242.2 billion yen, and at the same time, the average
portfolio building age of the entire portfolio will become shorter and will enhance the portfolio.
Going forward, SAR will continue to aim to achieve the asset-size objective in the mid-term business planby utilizing sponsor support as well as leveraging on the Asset Manager’s unique network.
Of the Assets to be Acquired, particularly with respect to the 7 hotel properties, an affiliate company of
Polaris Holdings Co., Ltd (hereinafter referred to as “Polaris Group”, including Polaris Holdings Co., Ltd.),
which has a track record of operating 48 buildings and 8,722 rooms within Star Asia Group (as of the end ofJune 2023, including future planned operations) is expected to be the hotel operator, and the acquisition is
expected to promote efficient hotel operations.
The forms of contracts of the 7 hotel properties expected to be acquired are all “fixed rent + floating rent”,
and furthermore, by having shops such as restaurants on the lower floors of “KOKO HOTEL Ginza 1-Chome”,
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

3

“KOKO HOTEL Sapporo Ekimae”, “KOKO HOTEL Fukuoka Tenjin”, “KOKO HOTEL Hiroshima Ekimae”, “KOKO
HOTEL Kagoshima Tenmonkan”, and “Fino Hotel Sapporo Odori”, it is possible to reduce revenue downsiderisk by adopting the strategy of supporting sales to hotel tenants.
Following is a summary of the forms of contracts.
Fixed rents + floating rents
Propertyno.

Location

Property nameHTL-10

KOKO HOTEL Ginza 1-Chome

HTL-11

KOKO HOTEL Sapporo Ekimae

HTL-12

KOKO HOTEL Fukuoka Tenjin

HTL-13

KOKO HOTEL Hiroshima Ekimae

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

HTL-15

Fino Hotel Sapporo Odori

HTL-16

Best Western Plus Fukuoka Tenjinminami

Chuo-ku, Tokyo
Chuo-ku, Sapporo-shi,
Hokkaido
Chuo-ku, Fukuoka-chi,FukuokaMinami-ku,
Hiroshima-shi,
Hiroshima
Kagoshima-shi,
Kagoshima
Chuo-ku, Sapporo-shi,
Hokkaido
Chuo-ku, Fukuoka-shi,
FukuokaMonthly fixed rents(in thousands of yen)
2nd year and1st year
thereafter(Note 2)
(Note 2)

15,6007,600

23,30011,400

5,500

8,200

5,100

7,700

5,000

7,500

4,200

6,300

7,600

11,400floating rents

Based onperformance ofeach month:
GOP (Note3)×85%－
Fixed rent
(provided that,
only to theextentexceeding the
fixed rent
portion)75,800Total
50,600(Note 1) “Asset Size” is calculated based on the (planned) acquisition prices (however, for properties which SAR has
assumed from former Sakura Sogo REIT Investment Corporation due to the merger, the calculation is based on theacceptance price basis), and includes the preferred equity securities issued by the TMK which holds beneficiary interest in
trust related to the trust established over “HAKUSAN HOUSE”, and the calculation has excluded “Urban Park Gokokuji” and“Urban Park Koenji” which are planned to be transferred as of the date of this document as well as the mezzanine loan
debts which have already been acquired.
(Note 2) ”1st year” and “2nd year and thereafter” means, respectively, starting from September 1, 2023 which is theplanned acquisition date of the Assets to be Acquired (the 7 hotel properties), 1 year from September 1, 2023 to August
31, 2024, and thereafter starting from September 1 2024.
(Note 3) “GOP” is the abbreviation for “Gross Operating Profit”, and in Japanese is translated as “Eigyo-ara-rieki” or “Eigyoso-rieki”, and means the amount calculated by subtracting the operating expenses (labor costs, cleaning, utilities,
advertising and other expenses) directly related to sales from the sales revenues of the hotel as a whole. The same applies
below.

The main reasons behind the decisions to acquire and lease each of the Assets to be Acquired are described
below.
The tenants of the Assets to be Acquired satisfy the tenant selection standards described in the “Report on
the Management Structure and System of the Issuer of Real Estate Investment Trust Units and Related Parties”
announced on April 28, 2023.
【KOKO HOTEL Ginza 1-Chome】
KOKO HOTEL Ginza 1-Chome is located at an approximate 1-minute walk from “Ginza 1-Chome” station on
the Tokyo Metro Yurakucho Line, and is an accommodation-specialized hotel situated in the Ginza Area, which
is a representative commercial area in Japan. The hotel is accessible by using 5 other lines and 4 stations
including JR Lines, Tokyo metro Lines and the Toei Subway Line, and has excellent access to main sightseeing
spots in the Tokyo metropolitan area. Furthermore, the hotel can be accessed by using the bus from Narita
Airport and Haneda Airport.
As to property features, the hotel is relatively new as construction was completed in 2014 and has the latest
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

4

facilities and equipment, with a total of 305 guest rooms mainly centered on rooms which can accommodate
2 or more guests such as semi-double, double, and twin rooms, and is suitable for both business demand andtravel demand.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
the mid- to long-term, and also given future internal growth, it was judged that the property would contribute
mainly to the improvement of growth of portfolio revenues.
【KOKO HOTEL Sapporo Ekimae】
KOKO HOTEL Sapporo Ekimae is an accommodation-specialized hotel located at an approximate 4-minute
walk from “Odori” station on the Sapporo Municipal Subway Tozai Line. The hotel is highly conveniently
situated very close to “Sapporo Ekimae-dori”, which is one of the main streets for sightseeing in Sapporo. It
is also located at an approximate 1-minute walk from the Sapporo Ekimae underground walkway “Chi-kaho”, which is directly connected to “Sapporo” station on the JR Line, and is also close to the bus station for
the airport bus which connects New Chitose Airport and “Sapporo” station on the JR Line. Given highly
convenient transportation access by both train and bus, and also give its good access to main sightseeing
spots such as Odori Park and the Sapporo clock tower, it is a location highly appealing for sightseeing
demand in addition to business demand. Of the Assets to be Acquired, the hotel operator for both thisproperty as well as Fino Hotel Sapporo Odori is Polaris Group, which is expected to have a synergy effect interms of both attracting customers and managing expenses in operating these two hotels in the Sapporo
district.
As to property features, the hotel is relatively new as construction was completed in 2015 and has thelatest facilities and equipment, with a total of 224 guest rooms mainly centered on rooms which canaccommodate 2 or more guests such as semi-double, double, and twin rooms, and is suitable for bothbusiness demand and travel demand.
As a result of comprehensively considering the location features and property features etc. describedabove, the decision to acquire the property was made, given that stable income from the property is
anticipated in the mid- to long-term, and also given future internal growth, it was judged that the property
would contribute mainly to the improvement of growth of portfolio revenues.
【KOKO HOTEL Fukuoka Tenjin】
KOKO HOTEL Fukuoka Tenjin is accommodation-specialized hotel located at an approximate 4-minute walkfrom “Tenjin-Minami” station on the Fukuoka City Subway Nanakuma Line. As it is located in the Tenjin area,
which is said to be the sightseeing and business center of Kyushu, the location is highly appealing not only forbusiness demand but also for sightseeing demand. In 2019, Fukuoka Airport was privatized, and in 2025
additional runways are expected to begin operations, and it is forecasted that inbound demand will expand in
the mid- to long-term mainly from Asia where it is expected that the number of travelers will increase given
the increase in airport processing capacity.
As to property features, the hotel has a total of 159 guest rooms mainly centered on rooms which canaccommodate 2 or more guests such as semi-double, double, and twin rooms, and is suitable for both travel
demand and business demand.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
the mid- to long-term, and also given future internal growth, it was judged that the property would contribute
mainly to the improvement of growth of portfolio revenues.
【KOKO HOTEL Hiroshima Ekimae】
KOKO HOTEL Hiroshima Ekimae is an accommodation-specialized hotel located at an approximate 5-minute
walk from “Hiroshima” station on the JR Sanyo Main Line. It is a relatively new as construction was completed
in 2019, and is a highly visible hotel as it faces the main street. Hiroshima- shi which is the center of the
Chugoku region gathers headquarters and branch offices of companies and is also close to entertainment
districts such as Kamiyacho, Nagarekawa, and Hatchobori, and therefore can bring in business demand. Also,
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

5there is good access to sightseeing spots such as the Peace Memorial Park which has the Atomic Bomb Domeand Miyajima where there is the world cultural heritage Itsukushima Shrine, and has abundant sightseeing
demand including for inbound visitors. In July 2023, flights to Vietnam began service, and also in 2025 a newstation building is expected to be completed as a part of the large-scale redevelopment project of “Hiroshima”
station which are expected to further boost the number of sightseeing visitors.
As to property features, the hotel has a total of 250 guest rooms mainly centered on rooms which canaccommodate 2 or more guests, and is suitable for both travel demand and business demand.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
the mid- to long-term, and also given future internal growth, it was judged that the property would contribute
mainly to the improvement of growth of portfolio revenues.
【KOKO HOTEL Kagoshima Tenmonkan】
KOKO HOTEL Kagoshima Tenmonkan is an accommodation-specialized hotel located at an approximate 4minute walk from “Tenmonkan-dori” station on the Kagoshima City tram Line. The hotel has good access to
Kagoshima Airport, as it is also located at an approximate 3-minute walk from the “Tenmonkan” bus stop tocatch the bus to Kagoshima Airport. Kagoshima shi is a major city in the South Kyushu region which has many
local government agency offices as well as branch offices of major corporations. Furthermore, as it is locatedin “Tenmonkan” which is the largest downtown district within Kagoshima shi, it is possible to attract businessdemand. Also, it is also possible to obtain sightseeing visitors going on a historical excursion of historical sites
in Kagoshima shi and visitors to Sakurajima. At Kagoshima Airport, the extension of the international airline
terminal building was completed in 2020 and the enhancement of the Airport’s processing capacity is expected
to contribute to increase in the number of travelers post COVID-19. In addition, once the additional runway at
Fukuoka Airport expected to be completed in 2025 comes into service, along with the increase in travelers
making trips within the Kyushu region, it is anticipated that inbound travelers will also increase in Kagoshimashi.
As to property features, the hotel has a total of 295 guest rooms mainly centered on rooms which canaccommodate 2 or more guests, and is suitable for both travel demand and business demand.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
the mid- to long-term, and also given future internal growth, it was judged that the property would contribute
mainly to the improvement of growth of portfolio revenues.
【Fino Hotel Sapporo Odori】
Fino Hotel Sapporo Odori is an accommodation-specialized hotel located at an approximate 3-minute walkfrom “Odori” station on the Sapporo Municipal Subway Namboku Line. The hotel is situated along the train
street which is a major street and is highly visible, and it is also close to the bus stop for the bus connecting JR“Sapporo” station to New Chitose Airport. It also has good access to sightseeing spots within Sapporo shi suchas Odori Park and the Sapporo clock tower, as well as to downtown areas such as Susukino. Furthermore, it isconveniently located as a center for sightseeing, and not limited to business use. Of the Assets to be Acquired,
the hotel operator for both this property and KOKO HOTEL Sapporo Ekimae is Polaris Group, which is expected
to have a synergy effect in terms of both attracting customers and managing expenses in operating these two
hotels in the Sapporo district.
As to property features, as construction was completed in 2020, it has functional facilities and also the entire
building has a clean image. The hotel has a total of 145 guest rooms mainly centered on rooms which canaccommodate 2 or more guests, and there are also rooms which can accommodate up to 4 guests, and thehotel is highly appealing not only for business demand but also for travel demand including group travel andfamily travel.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
the mid- to long-term, and also given future internal growth, it was judged that the property would contribute
mainly to the improvement of growth of portfolio revenues.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

6

【Best Western Plus Fukuoka Tenjin-minami】
Best Western Plus Fukuoka Tenjin-minami is an accommodation-specialized hotel located at an approximate
5-minute walk from “Tenjin-Minami” station on the Fukuoka City Subway Nanakuma Line, and an approximate
11-minute walk from “Tenjin” station on the Fukuoka City Subway Airport Line. It has good access from“Hakata” station, which is a terminal station of the bullet train (shinkansen) as well as from Fukuoka Airport,
and entertainment district of “Tenjin” station area and the “Hakata Nakasu Area” are also within walking
distance, and the hotel can attract both business demand and travel demand.
As to property features, construction was completed in 2020, and the hotel has a restaurant and a fitness
room. It has a total of 236 guest rooms which are mainly centered on rooms of double and twin rooms, butalso has triple and four-bed rooms, and may attract group travel and family travel guests suitable for travel
demand in addition to business demand.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
the mid- to long-term, and also with future internal growth, it was judged that the property would contribute
mainly to improvement in the growth of portfolio revenues.
【Urban Park Mitaka】
Urban Park Mitaka is a newly constructed residence (construction completed in June 2023) located at an
approximate 16-minute walk from “Mitaka” station on the JR Chuo Line. The nearest “Mitaka” station isaccessible to “Shinjuku” station on the JR Line in approximately 14 minutes and “Tokyo” station on the JR Linein approximately 35 minutes. Given the good access to the city center, it is highly convenient for commuting,and also, as the region is a combination of both residences and commerce, there are retail facilities which will
be convenient for everyday life, and there are also cultural centers and green parks, making for a favorable
residential environment. It is an area where stable leasing demand can be expected mainly from family
residents.
As to property features, as construction was completed in June 2023, it is a newly-built residential property
3-stories high with a total of 14 housing units with 4LDK and 3LDK floor plans, and which have the latest
housing equipment.
Given the favorable location features and property features, it is believed that occupancy rates will stabilize
at an early stage. As a result of comprehensively considering the location features and property features etc.
described above, the decision to acquire the property was made, given that stable income from the property
is anticipated in the mid- to long-term, it was judged that the property would contribute mainly to theimprovement of stability of portfolio revenues.
【Urban Park Kamata Minami I, Urban Park Kamata Minami II】
Urban Park Kamata Minami I and Urban Park Kamata Minami II are residences located at an approximate 10minute walk from “Zoshiki” station on the Keikyu Main Line and an approximate 12-minute walk from “Kojiya”
station on the Keikyu Airport Line.
From the nearest station, it is possible to access “Tokyo” station on the JR Line in approximately 32 minutesand “Keikyu Kawasaki” station on the Keikyu Main Line in approximately 3 minutes, and “Yokohama” stationon the JR Line in approximately 18 minutes. The properties are located in a highly convenient area given goodaccess not only from the Tokyo area but also to business centers and commercial centers, and also hasconvenient living facilities in the surrounding area.
As to property features, Urban Park Kamata Minami I is a realtively new residence whose construction wascompleted on September 29, 2022, and has the latest housing equipment. It is composed of a total of 36
housing units with floor plans of 1DK and 1LDK. Urban Park Kamata Minami II is a residence whose construction
is not yet completed and is expected to be completed on October 31, 2023, and which will have the latest
housing equipment. It is composed of a total of 71 housing units with floorplans ranging from 1R to 2DK, andwill be highly appealing to single-person households and small households.
As a result of comprehensively considering the location features and property features etc. described above,the decision to acquire the property was made, given that stable income from the property is anticipated in
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

7the mid- to long-term, it was judged that the property would contribute to the improvement of the stabilityof portfolio revenues.
【Urban Park Umejima】
Urban Park Umejima is a single-type residential property whose construction is not yet completed, locatedat an approximate 12-minute walk from “Umejima” station on the Tobu Isesaki Line. In the surrounding area,in addition to the shopping street in front of Umejima station, there are many convenient living facilities suchas hospitals, schools, and clinics, and there is a retail facility which will enhance living convenience and has afavorable housing environment with parks and greenery. A large-scale super market has also opened in frontof the station in June 2023. The nearest “Umejima” station is approximately 35 minutes from “Tokyo” stationand has good access to major business areas.
As to property features, construction is expected to be completed in November 2023 with the latest housing
equipment. It is expected to have a total of 46 housing units with floor plans ranging from 1K to 2LDK, and will
be highly appealing to single-person households or small households.
The property is expected to be acquired immediately after construction completion, and given its location
features and property features, we believe it is possible to stabilize occupancy rates at an early stage.
(2)Asset to be Transferred【Urban Park Koenji】
Urban Park Koenji is a single-type residence located at an approximate 4-minute walk from “Koenji” stationon the JR Chuo Line.
The Koenji area where the property is located has good access to the main areas in Tokyo such as Shinjuku,
by use of the JR Chuo Line, Sobu Line, and Tokyo Metro Tozai Line. Furthermore, there are many shopping
streets in front of the station, and is a residential property highly appealing to mainly to the young adults andsingle-person households. Due to COVID-19, there were periods between 2020 and 2021 when college
students and business bachelors moved out and the occupancy rate declined, but more recently occupancy
rates have recovered and the property is making stable earnings. However, there was concern for maintaining
future revenues from the property, as it is a 35.7-year-old building (as of the end of May 2023), and also if itshould happen that the property is to be rebuilt, it would be subject to restrictions under the construction
guidelines for housing complexes etc. stipulated by Suginami Ward of Tokyo which provides for minimum
exclusive use floor areas per housing unit. Under such circumstances, we searched for and found a real estate
investor who could put high value on the area of the property and present a purchase price which exceeds theappraisal value, and reached an agreement, and therefore the assignment was decided. It was judged that
replacing the property with the newly built “Urban Park Umejima” would strengthen the portfolio.
In the Asset Manager’s Management Guidelines which prescribe the basic rules for investment management,
SAR has established the Tokyo Area (Note) as the main target investment area, and prescribed that theinvestment ratio in the same area should be at least 70% on acquisition price basis, in principle. After theAcquisition, the Tokyo Area ratio of the entire portfolio will become 63.4%. Although the investment ratio in
the Tokyo Area will be estimated to become lower than 70%, if the 3 suburban retail facilities, “La Park
Kishiwada”, “Suroy Mall Chikushino”, and “Seiyu Minakuchi”, which have been considered to be sold are
excluded, the calculated Tokyo Area ratio is 67.7%.
As SAR will continue to uphold the investment policy of maintaining at least 70% (on acquisition price basis)of investments in the Tokyo Area going forward as the main investment target area, there are no changes
made to the investment ratios set by area prescribed in the Management Guidelines.
(Note) SAR has classified investment target areas into “Tokyo Area” and “Major Metropolitan Areas”, and has designatedinvestment areas within each classification by asset type (usage). Tokyo, Kanagawa, Saitama, and Chiba prefectures aredefined as the “Tokyo Area”. The same applies below.

3.

Summary of Assets to be Acquired
Overview of Assets to be Acquired is shown in the tables (1)-(11) below. For a glossary of the terms used in

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

8the tables, please refer to “Reference Material 5 The terms used in the table of Description of Assets to be
Acquired and Asset to be Transferred” below.
(1) KOKO HOTEL Ginza 1-chome
Property
Property
HTL-10No.
nameOverview of specified asset
Type of specified asset

KOKO HOTEL Ginza 1-chome

Beneficiary interest in trust

TrusteePlanned acquisition price 17,800 million yen
Appraised value
Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

Type

HOTEL

Mizuho Trust & Banking Co., Ltd.

Planned acquisition date

September 1, 2023

18,600 million yen
Seller
1-5-37 Ginza, Chuo-ku, Tokyo and others

GK Dart

1-9-5 Ginza, Chuo-ku, Tokyo
Approx. 1-minute walk from “Ginza 1-chome” Station of Tokyo Metro Yurakucho Line
Proprietary ownership
848.78㎡

Use district

Commercial district

80%

Floor area ratio

700% (Note1)

7,299.11㎡

Use

Hotel

October 29, 2014

Structure and floors

Steel-framed reinforced concrete
structure B1/12F

Tokyo Capital Management
Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note 2)
Total leasable are7,299.11㎡

Total leased area

7,299.11㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

10,492,600yen

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

Not applicable.

(Note 1) The permitted FAR is 800% due to relaxation of FAR restrictions in high-level use districts.
(Note 2) SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTEL Ginza 1-chome
Godo Kaisha on the same day as the planned acquisition date. KOKO HOTEL Ginza 1-chome Godo Kaisha is planning to outsource
the management of the Property on the same day to KOKO HOTELS Co., Ltd. Once KOKO HOTELS Co., Ltd. acquires a travel
operating business license, it is planned that KOKO HOTELS Co., Ltd. will succeed to KOKO HOTEL Ginza 1-chome Godo Kaisha’s
status as lessee.
・Form of contract: fixed-term building lease agreement
・Contract period: September 1, 2023 to August 31, 2038
・Rent:

1st year: fixed rent (15,600,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)

2nd year and thereafter: fixed rent (23,300,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

9-

・Security deposit: Includes security deposits etc. received from sub-leases.

Property Features/ Key Points of Evaluation➢
A highly competitive hotel located in the Ginza area which is one of Japan’s representative commercial districts.
➢
The location has highly convenient transportation access, as it is located at an approximate 1-minute walk from the nearest“Ginza 1-chome” station on the Tokyo Metro Yurakucho Line.
➢
Given the rarity and location superiority as a hotel located in the Ginza area, the hotel is able to take in both businessdemand and travel demand.
➢
Given convenient transportation access, the property has good access to nearby tourism resources, and also as it isenvisioned that accommodation demand from Japan and abroad is expected to further increase, growth in revenues is
expected.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

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

KOKO HOTEL Ginza 1-chomeAppraisal value

18,600,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details

Description, etc.

18,600,000,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

18,800,000,000(1) Operating revenue ((a)−(b))

787,926,000(a) Gross potential income

787,926,000

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

(b) Vacancy loss, etc.

0(2) Operating expenses

67,911,000

Maintenance andmanagement Fee

0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

3,758,000

Property management fee

1,440,000

Tenant leasing cost, etc.
Property taxes
Insurance premium

062,183,000
530,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked in this report.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance agreement and the level of similar real estate.

0
720,015,000
105,000

Appraised investment return as 1.0%.

(5) Capital expenditures

9,081,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) FF&E reserve

15,932,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow
(NCF=(3)+(4)−(5) -(6))

695,107,000(8) Capitalization rate

3.7%

Indicated value of DCF method

18,300,000,000

Discount Rate

3.4%

Terminal capitalization rate

3.8%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

18,600,000,000

Ratio of land

90.4%

Ratio of building

9.4%

Ratio of FF&E

0.2%

Matters considered in reconciliation of indicated values anddetermination of appraisal values

Appraised by comprehensively taking into account the individual characteristics of thesubject real estate, etc.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risk, and other factors. etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and by reference
to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

11(2) KOKO HOTEL Sapporo Ekimae
Property
Property
HTL-11
no.
nameOverview of specified asset

KOKO HOTEL Sapporo Ekimae

Type

Hotel

Planned acquisition price 6,700 million yen

Planned acquisition date

Mitsubishi UFJ Trust and Banking
Corporation
September 1, 2023

Appraisal value

7,040 million yen

Seller

GK Dart

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

3-10, Kita 1-jo Nishi 3-chome, Chuo-ku, Sapporo-shi, Hokkaido

Type of specified asset

Beneficiary interest in trust

Trustee

3-10, Kita 1-jo Nishi 3-chome, Chuo-ku, Sapporo-shi, Hokkaido
Approx. 4-minute walk from “Odori” Station of Sapporo Municipal Subway Tozai Line
Proprietary ownership
734.34㎡

Use district

Commercial district

80%

Floor area ratio

800%

5,886.67㎡

Use

Hotel/Shop/Parking

October 20, 2015

Structure and floors

Steel-framed B1/12F

Tokyo Capital Management
Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note)
Total leasable area

5,886.67㎡

Total leased area

5,886.67㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

41,417,070 yen

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

Not applicable(Note) SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTEL Sapporo Ekimae
Godo Kaisha on the same day as the planned acquisition date. KOKO HOTEL Sapporo Ekimae Godo Kaisha is planning to outsource themanagement of the Property on the same day to KOKO HOTELS Co., Ltd. Once KOKO HOTELS Co., Ltd. acquires a travel operating businesslicense, it is planned that KOKO HOTELS Co., Ltd. will succeed to KOKO HOTEL Sapporo Ekimae Godo Kaisha’s status as lessee.
・Form of contract: fixed-term building lease agreement
・Contract period: September 1, 2023 to August 31, 2038
・Rent:

1st year: fixed rent (7,600,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
2nd year and thereafter: fixed rent (11,400,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)

・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

12-

Property Features/ Key Points of Evaluation➢
The property has highly convenient transportation access, as it is located at an approximate 4-minute walk from “Odori”
station on the Sapporo Municipal Subway Tozai Line. It is also located in a highly busy area nearby “Sapporo Ekimae-dori”
which is one of the main streets of sightseeing in Sapporo.
➢
The hotel offers mainly semi-double, double, and twin rooms which can accommodate 2 or more guests, suitable forbusiness demand and travel demand.
➢
Given the location feature and room-type composition, it can in particular take in travel demand, and given the increase inaccommodation demand, growth in revenues is expected.
<Trend of travel demand in the Sapporo Area>
The number of international flight passengers of New Chitose Airport has shown a trend of recovery since autumn of2022, however, more recently use has remained at around 50% of the same month in 2019.
Also with respect to the number of tourists including foreigners visiting Sapporo has transitioned at below 1 million
visitors per month, and has not shown recovery to the levels of 2019.
Number of Passengers using
International Fights at New Chitose Airport(compared to the same month in 2019)

Trend of Number of Tourists visiting Sapporo

Source: Prepared by the Asset Manager based on the Ministry of Land,
Infrastructure, Transport and Tourism’s “Airport Management Status”
and Tokyo Regional Civil Aviation Bureau’s “Summary table of the overview
of use of airports within the jurisdiction”

Source: Prepared by the Asset Manager based on
Sapporo City’s “Tourism Statistics Data”.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

13

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Sapporo Ekimae

Appraisal value

7,040,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

7,040,000,000

Indicated value by direct capitalization
method7,170,000,000(1) Operating revenue ((a)−(b))

361,316,000(a) Gross potential income

361,316,000(b) Vacancy loss, etc.

0(2) Operating expenses

35,164,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

2,764,000

Property management fee

1,320,000

Tenant leasing cost, etc.
Property taxes
Insurance premium

030,622,000
458,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked in this report.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance contract and the level of similar real estate.

0326,152,000
410,000

Appraised investment return as 1.0%.

(5) Capital expenditures

6,706,000

Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.

(6) FF&E reserve

11,335,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow (NCF=(3)+(4)−(5) (6))

308,521,000(8) Capitalization rate
Indicated value by DCF method

4.3%
6,910,000,000

Discount rate

4.1%

Terminal capitalization rate

4.5%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

6,720,000,000

Ratio of land

71.0%

Ratio of building

28.2%

Ratio of FF&E

0.8%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

14(3) KOKO HOTEL Fukuoka Tenjin
Property
Property
HTL-12
no.
nameOverview of specified asset

KOKO HOTEL Fukuoka Tenjin

Type

Hotel

Planned acquisition price 5,000 million yen

Planned acquisition date

Mitsubishi UFJ Trust and Banking
Corporation
September 1, 2023

Appraisal value

5,370 million yen

Seller

GK Dart

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

1-370 Imaizumi, Chuo-ku, Fukuoka-shi, Fukuoka and others

Type of specified asset

Beneficiary interest in trust

Trustee

1-22-14 Imaizumi, Chuo-ku, Fukuoka-shi, Fukuoka
Approx. 4-minute walk from “Tenjin Minami” Station of Fukuoka city subway Nanakuma Line
Proprietary ownership
752.89㎡ (Note1)

Use district

Commercial district

80%

Floor area ratio

600%

4,404.91㎡

Use

Hotel

August 20, 2007

Structure and floors

Reinforced concrete structure 14F

OHI Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note 2)
Total leasable area

4,404.91㎡

Total leased area

4,404.91㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

9,818,400 yen

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

Not applicable(Note 1)

Includes the setback area of 7.33㎡.

(Note 2)

SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTEL Fukuoka Tenjin
Godo Kaisha on the same day as the planned acquisition date. KOKO HOTEL Fukuoka Tenjin Godo Kaisha is planning to outsource themanagement of the Property on the same day to KOKO HOTELS Co., Ltd. Once KOKO HOTELS Co., Ltd. acquires a travel operating
business license, it is planned that KOKO HOTELS Co., Ltd. will succeed to KOKO HOTEL Fukuoka Tenjin Godo Kaisha’s status as lessee.
・Form of contract: fixed-term building lease agreement
・Contract period: September 1, 2023 to August 31, 2038
・Rent:

1st year: fixed rent (5,500,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
2nd year and thereafter: fixed rent (8,200,000yen per month) + floating rent (actual GOP x 85% - fixed rent)

・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

15-

Property Features/ Key Points of Evaluation➢
The property has highly convenient transportation access, as it is located at an approximate 4-minute walk from “TenjinMinami” station on the Fukuoka City Subway Nanakuma Line, and also has good access to areas surrounding Tenjin Station
which is a commercial district in Fukuoka.
➢
The hotel offers mainly double or twin rooms, and can take in both travel demand and business demand.
➢
At Fukuoka Airport, newly installed runways are expected to start operations in 2025, and it is expected that the number oftravelers will increase given the increase in airport processing capacity.
➢
Given the location feature of being close to a commercial district, and also as it is envisioned that the number of air
travelers will increase, and given the increase in accommodation demand, growth in revenues is expected.
<Trend of travel demand in Fukuoka Tenjin Area>
Although the number of foreigners entering in Japan is sharply recovering in 2023, ship tourism has not yet recovered,and it is anticipated that demand will recover further once ship sightseeing restarts and the number of tourists from
China recovers.
Given the increase in travel demand domestically and also from abroad, the number of guest rooms showed anincreasing trend even during COVID-19, and occupancy rates showed signs of recovery since 2022.

Transition of the number of foreigners entering Japan
from Fukuoka Airport and Hakata Port

Number of Guest Rooms and RoomOccupancy Rates in Fukuoka City

Source of above two charts:
Prepared by the Asset Manager based on Ministry of Justice “Immigration Control Statistics”, Japan Tourism Agency “Overnight Trips Statistics
Survey”, Fukuoka City Tourism Statistics “Tourism in Fukuoka City (MICE)” 2018 and 2023 editions

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

16

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Fukuoka Tenjin

Appraisal value

5,370,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

5,370,000,000

Indicated value by direct capitalization
method5,430,000,000(1) Operating revenue ((a)−(b))

277,131,000(a) Gross potential income

277,131,000(b) Vacancy loss, etc.

0(2) Operating expenses

34,143,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

2,976,000

Property management fee

1,440,000

Tenant leasing cost, etc.
Property taxes
Insurance premium

029,391,000
336,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked in this report.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance contract and the level of similar real estate.

0242,988,000
98,000Appraised investment return as 1.0%.

(5) Capital expenditures

7,223,000

Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.

(6) FF&E reserve

7,706,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow
(NCF=(3)+(4)−(5)−(6))

228,157,000(8) Capitalization rate

4.2%

Indicated value by DCF method

5,300,000,000

Discount rate

3.9%

Terminal capitalization rate

4.3%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

5,780,000,000

Ratio of land

85.3%

Ratio of building

13.7%

Ratio of FF&E

1.0％

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

17

(4) KOKO HOTEL Hiroshima Ekimae
Property
Property
HTL-13
no.
nameOverview of specified asset
Type of specified asset

KOKO HOTEL Hiroshima Ekimae

Beneficiary interest in trust

Type

Hotel

TrusteeMizuho Trust & Banking Co., Ltd.

Planned acquisition price 4,100 million yen

Planned acquisition date

September 1, 2023

Appraisal value

4,280 million yen

Seller

GK Dart

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

10-2 Kyobashi-cho, Minami-ku, Hiroshima-shi, Hiroshima
10-3 Kyobashi-cho, Minami-ku, Hiroshima-shi, Hiroshima
Approx. 5-minute walk from “Hiroshima” Station of JR Sanyo Line
Proprietary ownership
534.09㎡

Use district

Commercial district

80%

Floor area ratio

900%

5,370.75㎡

Use

Hotel

December 17, 2019

Structure and floors

Steel-framed reinforced concrete
structure B1/14F

OHI Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note)
Total leasable area

5,370.75㎡

Total leased area

5,370.75㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

4,359,100 yen

Occupancy rate
January 2023

February 2023-

Special notation(Note)March 2023-

April 2023-

May 2023-

Not applicable

SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTEL Hiroshima Ekimae
Godo Kaisha on the same day as the planned acquisition date. KOKO HOTEL Hiroshima Ekimae Godo Kaisha is planning to outsource
the management of the Property on the same day to KOKO HOTELS Co., Ltd. Once KOKO HOTELS Co., Ltd. acquires a travel operating
business license, it is planned that KOKO HOTELS Co., Ltd. will succeed to KOKO HOTEL Hiroshima Ekimae Godo Kaisha’s status aslessee.
・Form of contract: fixed-term building lease agreement
・Contract period: September 1, 2023 to August 31, 2038
・Rent:

1st year: fixed rent (5,100,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
2nd year and thereafter: fixed rent (7,700,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)

・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

18-

Property Features/ Key Points of Evaluation➢
The property has highly convenient transportation access, as it is located at an approximate 5-minute walk from
“Hiroshima” station on the JR Sanyo Main Line, and also the hotel is highly visible as it is facing the main street extending
from the front side of “Hiroshima” station.
➢
Hiroshima shi which is the center of Chugoku Region is a city where headquarters and branches of companies areconcentrated, and as the property is located very close to busy areas such as Kamiyacho, Nagarekawa, and Hatchobori, it ispossible to attract business demand.
➢
As the property has good access to the Peace Memorial Park which has the Atomic Bomb Dome and Miyajima where thereis the world cultural heritage Itsukushima Shrine, attracting travel demand including foreigners is anticipated.
➢
Future recovery of business demand is also anticipated and growth in revenues is expected.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

19

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Hiroshima Ekimae

Appraisal value

4,280,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

4,280,000,000

Indicated value by direct capitalization
method4,350,000,000(1) Operating revenue ((a)−(b))

240,168,000(a) Gross potential income

240,168,000(b) Vacancy loss, etc.

0(2) Operating expenses

27,734,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

1,764,000

Property management fee

1,440,000

Tenant leasing cost, etc.
Property taxes
Insurance premium

0
24,119,000
411,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked in this report.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance contract and the level of similar real estate.

0212,434,000
44,000Appraised investment return as 1.0%.

(5) Capital expenditures

4,211,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) FF&E reserve

12,581,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow (NCF=(3)+(4)−(5)−(6))

195,686,000(8) Capitalization rate
Indicated value by DCF method

4.5%
4,200,000,000

Discount rate

4.3%

Terminal capitalization rate

4.7%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

3,570,000,000

Ratio of land

41.1%

Ratio of building

56.8%

Ratio of FF&E

2.1%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

20(5) KOKO HOTEL Kagoshima Tenmonkan
Property
Property
HTL-14
no.
nameOverview of specified asset

KOKO HOTEL Kagoshima Tenmonkan

Type

Hotel

Planned acquisition price 3,800 million yen

Planned acquisition date

Mitsubishi UFJ Trust and Banking
Corporation
September 1, 2023

Appraisal value

4,260 million yen

Seller

GK Dart

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

4-14 Higashi Sengoku-cho, Kagoshima-shi, Kagoshima and others

Type of specified asset

Beneficiary interest in trust

Trustee4-24 Higashi Sengoku-cho, Kagoshima-shi, Kagoshima
Approx. 4-minute walk from “Tenmonkan-dori” Station of Streetcar Line
Proprietary ownership
882.69㎡

Use district

Commercial district

80%

Floor area ratio

500%

4,622.48㎡(including theattached building)Use

Hotel/Shop

April 19, 2019

Structure and floors

Steel-framed 13F

OHI Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note)
Total leasable area

4,622.48㎡

Total leased area

4,622.48㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

3,824,000 yen

Occupancy rate
January 2023

February 2023-

Special notation(Note)March 2023-

April 2023-

May 2023-

Not applicable

SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTEL Kagoshima
Tenmonkan Godo Kaisha on the same day as the planned acquisition date. KOKO HOTEL Kagoshima Tenmonkan Godo Kaisha isplanning to outsource the management of the Property on the same day to KOKO HOTELS Co., Ltd. Once KOKO HOTELS Co., Ltd.
acquires a travel operating business license, it is planned that KOKO HOTELS Co., Ltd. will succeed to KOKO HOTEL Kagoshima
Tenmonkan Godo Kaisha’s status as lessee.
・Form of contract: fixed-term building lease agreement
・Contract period: September 1, 2023 to August 31, 2038
・Rent:

1st year: fixed rent (5,000,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
2nd year and thereafter: fixed rent (7,500,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)

・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

21-

Property Features/ Key Points of Evaluation➢
The property has highly convenient transportation access, as it is located at an approximate 4-minute walk from
“Tenmokan-dori” station on the Kagoshima City tram Line, and an approximate 3-minute walk from the “Tenmonkan” busstation of Kagoshima Airport shuttle bus providing good access from Kagoshima Airport.
➢
Kagoshima City has many governmental agency offices as well as branch offices of major corporations, and also as theproperty is located in “Tenmonkan” which is the largest downtown district in Kagoshima City, it is possible to attract
business demand.
➢
At Kagoshima Airport, extension and renovation of the international line terminal building was completed in 2020 and theenhancement of the Airport’s processing capacity is expected to contribute to increase in the number of travelers post
COVID-19.
➢
Given the location features of being a busy area and convenient transportation access, increase in future travel demand andgrowth in revenues is expected.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

22

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Kagoshima Tenmonkan

Appraisal value

4,260,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

4,260,000,000

Indicated value by direct capitalization
method4,320,000,000(1) Operating revenue ((a)−(b))

254,748,000(a) Gross potential income

254,748,000(b) Vacancy loss, etc.

0(2) Operating expenses

22,416,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

2,308,000

Property management fee

1,440,000

Tenant leasing cost, etc.
Property taxes
Insurance premium

018,322,000
346,000(4) Financial interests on deposits

Not booked in this report.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance contract and the level of similar real estate.

0

Other expenses(3) Net operating income(NOI=(1)−(2))

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.

232,332,000
38,000Appraised investment return as 1.0%.

(5) Capital expenditures

5,514,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) FF&E reserve

10,898,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow (NCF=(3)+(4)−(5) (6))

215,958,000(8) Capitalization rate
Indicated value by DCF method

5.0%
4,190,000,000

Discount rate

4.8%

Terminal capitalization rate

5.2%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

2,580,000,000

Ratio of land

31.8%

Ratio of building

64.0%

Ratio of FF&E

4.2%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

23

(6) Fino Hotel Sapporo Odori
Property
Property
HTL-15
no.
nameOverview of specified asset
Type of specified asset

Fino Hotel Sapporo Odori

Beneficiary interest in trust

Type

Hotel

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 4,200 million yen

Planned acquisition date

September 1, 2023

Appraisal value

4,250 million yen

SellerGK Tenjin Hotel Kanri

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

6-8-1, Minami 1-jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido and others
6-8-1, Minami 1-jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido
Approx. 3-minute walk from “Odori” Station of Sapporo Municipal Subway Namboku Line
Proprietary ownership
626.34㎡

Use district

Commercial district

80%

Floor area ratio

600%

3,854.01㎡

Use

Hotel

June 9, 2020

Structure and floors

Reinforced concrete structure 10F

Tokyo Capital Management
Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note)
Total leasable area

3,854.01㎡

Total leased area

3,854.01㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

4,000,000 yen

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

Not applicable(Note) SAR which is the master lease company is expecting to sign the lease agreement described below with Fino Hotels Co. Ltd. on the same
day as the planned acquisition date.
・Contract period: September 1, 2023 to August 31, 2038.
・Rent:

1st year: fixed rent (4,200,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
2nd year and thereafter: fixed rent (6,300,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)

・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

24-

Property Features/ Key Points of Evaluation➢
The property is located at an approximate 3-minute walk from Odori Station on the Sapporo Municipal Subway Namboku
Line, and has an entrance and exit along Densha-dori, a major street, making it a highly visible hotel.
➢
It is mainly composed of twin rooms and double rooms, and also, there are guest rooms which can accommodate 4 guests
and is highly appealing towards group travel and family travel guests.
➢
Given the location feature and room-type composition, it can take in travel demand in particular, and also given the increasein accommodation demand, growth in revenues is expected.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

25

(Unit: yen)
Summary of real estate appraisal report
Property name

Fino Hotel Sapporo Odori

Appraisal value

4,250,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

4,250,000,000

Indicated value by direct capitalization
method4,320,000,000(1) Operating revenue ((a)−(b))

214,961,000(a) Gross potential income

214,961,000(b) Vacancy loss, etc.

0(2) Operating expenses

21,077,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

779,000

Property management fee

1,440,000

Tenant leasing cost, etc.
Property taxes
Insurance premium

0
18,568,000
290,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked in this report.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance contract and the level of similar real estate.

0193,884,000
38,000Appraised investment return as 1.0%.

(5) Capital expenditures

1,892,000

Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.

(6) FF&E reserve

6,322,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow (NCF=(3)+(4)−(5) (6))(8) Capitalization rate
Indicated value by DCF method

185,708,000
4.3%
4,170,000,000

Discount rate

4.1%

Terminal capitalization rate

4.5%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

4,130,000,000

Ratio of land

61.1%

Ratio of building

37.5%

Ratio of FF&E

1.4%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

26

(7) Best Western Plus Fukuoka Tenjin-minami
Property
Property
HTL-16
no.
nameOverview of specified asset
Type of specified asset

Best Western Plus Fukuoka Tenjin-minami

Beneficiary interest in trust

Type

Hotel

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 3,800 million yen

Planned acquisition date

September 1, 2023

Appraisal value

4,390 million yen

SellerGK Tenjin Hotel Kanri

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

3-8-16 Haruyoshi, Chuo-ku, Fukuoka-shi, Fukuoka and others
3-13-19 Haruyoshi, Chuo-ku, Fukuoka-shi, Fukuoka
Approx. 5-minute walk from “Tenjin Minami” Station of Fukuoka city subway Nanakuma Line
Right of fixed-term Sublease (Note 1)
1,788.92㎡ (Note 2)

Use district

Commercial district

80%

Floor area ratio

400%

7,322.03㎡(including theattached building)

Use

Hotel

April 3, 2020

Structure and floors

Steel-framed 13F

OHI Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

Status of leasing (Note 3)
Total leasable area

7,322.03㎡

Total leased area

7,322.03㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

0 yen

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

When the building is to be leased to a third party, the consent of the land owner is required.

(Note 1) A general fixed-term subleasehold agreement has been executed with a term of validity from April 28, 2021 to July 31, 2078.
(Note 2) Including the set-back area of 1.14㎡.
(Note 3) SAR which is the master lease company is expecting to sign the lease agreement described below with Fino Hotels Co. Ltd. on thesame day as the planned acquisition date.
・Form of contract: fixed-term building lease agreement
・Contract period: September 1, 2023 to August 31, 2033
・Rent:

1st year: fixed rent (7,600,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
2nd year and thereafter: fixed rent (11,400,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)

・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

27-

Property Features/ Key Points of Evaluation➢
The property has highly convenient transportation access, as it is located at an approximate 5-minute walk from “Tenjinminami” station on the Fukuoka City Subway Nanakuma Line, and an approximate 11-minute walk from “Tenjin” station on
the Fukuoka City Subway Airport Line.
➢
It is within walking distance from the busy area surrounding “Tenjin” station and “Hakata Nakasu Area”, and can take intravel demand.
➢
Fukuoka Airport is expected to start operating an additional runway in 2025, and increase in the number of travelers isanticipated given the increase in process capacity of the Airport.
➢
Given the location feature of being close to a commercial district and also the expectation that the number of persons
traveling by air will increase, and also given the increase in accommodation demand, growth in revenues is expected.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

28

(Unit: yen)
Summary of real estate appraisal report
Property nameBest Western Plus Fukuoka Tenjin-minami

Appraisal value

4,390,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

4,390,000,000

Indicated value by direct capitalization
method4,430,000,000(1) Operating revenue ((a)−(b))

372,048,000(a) Gross potential income

372,048,000(b) Vacancy loss, etc.

0(2) Operating expenses

115,937,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

2,333,000

Property management fee

1,440,000

Tenant leasing cost, etc.
Property taxes
Insurance premium0

Not booked for land as it is leased land. Taxes for building is booked based on thebuilding tax related documents.

553,000

Appraised based on the insurance contract and the level of similar real estate.

92,124,000(3) Net operating income(NOI=(1)−(2))

256,111,000(4) Financial interests on deposits-2,640,000(5) Capital expenditures

5,692,000(6) FF&E reserve

17,508,000(7) Net cash flow (NCF=(3)+(4)−(5) (6))

230,271,000

Indicated value by DCF method

5.2%

Appraised taking into account the land rent and the rent revision provisions in the
fixed-term land-lease agreement.

Appraised investment return as 1.0% on security deposits, etc. based on fixed-termlease contracts, booked investment loss.
Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.

Appraised by referring to FF&E reserve levels of similar real estate.

Appraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

4,340,000,000

Discount rate

4.5%

Terminal capitalization rate

5.5%

Indicated value by cost approach

Not booked in this report.

19,487,000

Other expenses(8) Capitalization rate

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.

4,010,000,000

Ratio of land

24.2%

Ratio of building

73.0%

Ratio of FF&E

2.8%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

29

(8) Urban Park Mitaka
Property
Property
RSC-22
no.
nameOverview of specified asset
Type of specified asset

Urban Park Mitaka

Beneficiary interest in trust

Type

Residence

Trustee

SMBC Trust Bank Ltd.

Planned acquisition price 743 million yen

Planned acquisition date

September 1, 2023

Appraisal value

1,010 million yen

SellerMeiho Enterprise Co.,Ltd.

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

6-479, KamiRenjyaku, Mitaka-shi, Tokyo and others
6-12-18, KamiRenjyaku, Mitaka-shi, Tokyo
Approx. 16-minute walk from “Mitaka” Station of JR Chuo Line
Proprietary ownership
947.92㎡

Use district

Neighborhood commercial zone

80%

Floor area ratio

200% (Note 1)

1,201.39㎡

Use

Residence

June 8, 2023

Structure and floors

Steel-framed with alloy plated steel sheet
3F

Apaman Property Co.,Ltd.

Master lease company

Apaman Property Co.,Ltd.

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2033

Proprietary ownership

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

1,179.94㎡

Total leased area－

Total number of tenants－

Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits－－

Occupancy rate
January 2023

February 2023―

March 2023―

April 2023―

May 2023―

Special notation
Not applicable(Note 1) The building is built on two types of use districts (neighborhood commercial district and category 1 residential district), and theweighted average permitted FAR is 280.95%. However, since the land in question is an alley-like site, the floor-area ratio allowed isapproximately 125% due to building restrictions such as the Tokyo Metropolitan Safety Ordinance.
(Note 2) As date of completion was June 8, 2023, it was not yet in operation as of the end of May 2023.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

30―

Property Features/ Key Points of Evaluation➢
The property is located at an approximate 16-minute walk from “Mitaka” station on the JR Chuo Line, and is a residence
which is highly convenient for commuting given good access to central Tokyo, as it is an approximate 14-minutes to “Shinjuku”
station on the JR Lines and an approximate 35-minutes to “Tokyo” station on the JR Lines from the nearest “Mitaka” station.
➢
In addition to having retail facilities which will be convenient for everyday life, there are also cultural centers and green parks,
making for a favorable residential environment.
➢
It is a newly built resident with construction completed in June 2023, and has the latest housing equipment. It is a family typeresidence, 3 stories high with 4LDK and 3LDK floor plans (average exclusive area of more than 84㎡).
➢
It is a residence which is expected to have stable occupancy, as it is newly built with a nice residential environment, and has
ample housing unit floor area and will be highly appealing to families.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

31

(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Mitaka

Appraisal value

1,010,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

1,010,000,000

Indicated value by direct capitalization
method

1,020,000,000(1) Operating revenue ((a)−(b))

45,068,000(a) Gross potential income

47,485,000(b) Vacancy loss, etc.

2,417,000(2) Operating expenses

8,199,000

Maintenance and managementfee

1,000,000

Utilities expenses

500,000

Repair expenses

527,000

Property management fee

860,000

Tenant leasing cost, etc.

1,716,000

Property taxes

3,523,000

Insurance premium

73,000

Other expenses(3) Net operating income(NOI=(1)−(2))

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Booked by appraising rents which may be received stably in the mid- to long-term,
based on the new rent levels.
Recorded by taking into account the occupancy status of similar properties, supply anddemand trends, and the status of the subject property, etc.
Recorded by taking into account the individual characteristics of the subject real estate,etc. based on the level of similar real estate.
Recorded by taking into account the individual characteristics of the subject real estate,etc. based on the level of similar real estate.
Booked by taking into account expense levels for similar real estate properties andrepair and renewal costs in the ER, in addition to the cost for restoration to the originalstate which is normally assumed.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Leasing fees etc. and renewal fees have been booked by referring to the contract termsof the subject real estate property and the leasing conditions etc. of similar real estate
properties and also by taking into account replacement rates and occupancy rates etc.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance agreement and the level of similar real estate.

036,869,000(4) Financial interests on deposits

34,000Appraised investment return as 1.0%.

(5) Capital expenditures

189,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) Net cash flow (NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method

36,714,000
3.6%
996,000,000

Discount rate

3.4%

Terminal capitalization rate

3.7%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

1,010,000,000

Ratio of land

66.1%

Ratio of building

33.9%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised, taking into account the individual characteristics of the subject property,
etc., with reference to the investment yields of similar properties.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price bymarketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

32(9) Urban Park Kamata Minami I
Property
Property
RSC-23
no.
nameOverview of specified asset
Type of specified asset

Urban Park Kamata Minami I

Beneficiary interest in trust

Type

Residence

Trustee

SMBC Trust Bank Ltd.

Planned acquisition price 641 million yen

Planned acquisition date

December 1, 2023

Appraisal value

864 million yen

SellerJyukyo. Co, Ltd

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

1-20-2, Higashirokugo, Ota-ku, Tokyo and others
1-11-5, Higashirokugo, Ota-ku, Tokyo
Approx. 10-minute walk from “Zoshiki” Station of Keikyu LineLand lease502.47㎡

Use district

Quasi-industrial zone

60%

Floor area ratio

200%

1,239.35㎡

Use

Residence

September 29, 2022

Structure and floors

Reinforced concrete structure 5F

Goodworks Co., Ltd.

Master lease company

Goodworks Co., Ltd.

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateNovember 30, 2033

Proprietary ownership

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

971.00㎡

Total leased area

930.07㎡

Total number of tenants

35

Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

3,532 thousand yen
347 thousand yen

Occupancy rate
January 2023

February 2023

52.4%
Special notation

73.5%

March 2023
92.1%

April 2023
97.3%

May 2023
95.8%

Not applicable

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

33

Property Features/ Key Points of Evaluation➢
The property is located at an approximate 10-minute walk from “Zoshiki” station on the Keikyu Main Line and an
approximate 12-minute walk from “Kojiya” station on the Keikyu Airport Line, and can access “Tokyo” station on the JR Linein approximately 32 minutes, “Keikyu Kawasaki” station on the Keikyu Main Line in approximately 3 minutes, and“Yokohama” station on the JR Line in approximately 18 minutes, making it a residential property with good access tobusiness centers and commercial districts, not just limited to the Tokyo area.
➢
It is a relatively new residence which was completed on September 29, 2022 equipped with the latest housing facilities, andthe floor plans of 1DK and 1LDK making it a residence highly appealing to single persons and small families.
➢
The number of households in Ota Ward is showing an increasing trend, and also given its highly convenient transportation
access and the fact that it is relatively newly built, stable occupancy is anticipated.

<Demographics of Ota Ward, Tokyo>
The population of Ota ward has transitioned stably since 2016.
The number of households is showing a moderate increasing trend.
Population (left axis)
Number of households (right axis)
Room occupancy rates

Source: Prepared by the Asset Manager based on “Basic Resident Register” of Ota Ward, Tokyo.
Note: Population and number of households figures stated are as of July 1 of each year.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

34

(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Kamata MinamiⅠ

Appraisal value

864,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

864,000,000

Indicated value by direct capitalization
method878,000,000(1) Operating revenue ((a)−(b))

43,737,000(a) Gross potential income

46,360,000(b) Vacancy loss, etc.

2,623,000(2) Operating expenses

11,770,000

Maintenance and managementfee

1,716,000

Utilities expenses

700,000

Repair expenses

586,000

Property management fee

766,000

Tenant leasing cost, etc.

2,527,000

Property taxes

3,001,000

Insurance premium

74,000

Other expenses

2,400,000(3) Net operating income(NOI=(1)−(2))

31,967,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Booked by appraising rents which may be received stably in the mid- to long-term,
based on the current rent levels.
Recorded by taking into account the occupancy status of similar properties, supply anddemand trends, and the status of the subject property, etc.
Booked by referring to actual past figures and levels of similar real estate, and also byconsidering the individual characteristics of the subject real estate property.
Booked by referring to actual past figures and levels of similar real estate, and also byconsidering the individual characteristics of the subject real estate property.
Booked by referring to actual costs, and taking into account expense levels for similar
real estate properties and repair and renewal costs in the ER, in addition to the cost for
restoration to the original state which is normally assumed.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked for land as it is leased land. Property tax for the building is assessed basedon the replacement cost etc.
Appraised based on the insurance contract and the level of similar real estate.
Booked the land rent etc.

(4) Financial interests on deposits

16,000Appraised investment return as 1.0%.

(5) Capital expenditures

363,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) Net cash flow (NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method

31,620,000
3.6％
849,000,000

Discount rate

3.2％

Terminal capitalization rate

3.8％

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

880,000,000

Ratio of land

60.0％

Ratio of building

40.0％

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised, taking into account the individual characteristics of the subject property,
etc., with reference to the investment yields of similar properties.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price bymarketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

35

(10) Urban Park Kamata Minami II
Property
Property
RSC-24
no.
nameOverview of specified asset
Type of specified asset

Urban Park Kamata Minami II

Beneficiary interest in trust

Type

Residence

Trustee

SMBC Trust Bank Ltd.

Planned acquisition price 1,375 million yen

Planned acquisition date

December 1, 2023

Appraisal value

1,720 million yen

SellerJyukyo. Co, Ltd

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

1-20-1, Higashirokugo, Ota-ku, Tokyo and others
Approx. 10-minute walk from “Zoshiki” Station of Keikyu LineLand lease
1,031.39㎡

Use district

Quasi-industrial zone

60%

Floor area ratio

200%

2,323.83㎡

Use

Residence

October 31, 2023 (Planed)

Structure and floors

Reinforced concrete structure 6F

Goodworks Co., Ltd.

Master lease company

Goodworks Co., Ltd.

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateNovember 30, 2033

Proprietary ownership

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

1,962.97㎡

Total leased area-

Total number of tenants-

Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits-

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

Not applicable(Note) As construction is expected to be completed at the end of October 2023, it has not commenced operations as of the end of May 2023.

Property Features/ Key Points of Evaluation➢
The property is adjacent to “Urban Park Kamata Minami I” and is located at an approximate 10-minute walk from “Zoshiki”
station on the Keikyu Main Line and an approximate 12-minute walk from “Kojiya” station on the Keikyu Airport Line, and canaccess “Tokyo” station on the JR Line in approximately 32 minutes, “Keikyu Kawasaki” station on the Keikyu Main Line inapproximately 3 minutes, and “Yokohama” station on the JR Line in approximately 18 minutes, making it a residential property
with good access to business centers and commercial districts, not just limited to the Tokyo area.
➢
The property is a newly built residence whose construction is expected to be completed on October 31, 2023. It will beequipped with the latest housing facilities, and the floor plans range from 1R to 2DK making it a residence highly appealing tosingle persons and small families.
➢
The number of households in Ota Ward is showing an increasing trend, and also given its highly convenient transportation
access and the fact that it is a newly built property, stable occupancy is anticipated.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

36-

(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Kamata Minami II

Appraisal value

1,720,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

1,720,000,000

Indicated value by direct capitalization
method1,740,000,000(1) Operating revenue ((a)−(b))

88,019,000(a) Gross potential income

93,295,000(b) Vacancy loss, etc.

5,276,000(2) Operating expenses

23,118,000

Maintenance and managementfee

3,512,000

Utilities expenses

1,500,000

Repair expenses

1,156,000

Property management fee

1,541,000

Tenant leasing cost, etc.

5,045,000

Property taxes

5,432,000

Insurance premium

132,000

Other expenses

4,800,000(3) Net operating income(NOI=(1)−(2))

64,901,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Booked by appraising rents which may be received stably in the mid- to long-term,
based on the new rent levels.
Recorded by taking into account the occupancy status of similar properties, supply anddemand trends, and the status of the subject property, etc.
Recorded by taking into account the individual characteristics of the subject real estate,etc. based on the level of similar real estate.
Recorded by taking into account the individual characteristics of the subject real estate,etc. based on the level of similar real estate.
Booked by taking into account expense levels for similar real estate properties andrepair and renewal costs in the ER, in addition to the cost for restoration to the originalstate which is normally assumed.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Leasing fees etc. and renewal fees have been booked by referring to the contract termsof the subject real estate property and the leasing conditions etc. of similar real estate
properties and also by taking into account replacement rates and occupancy rates etc.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.
Appraised based on the insurance agreement and the level of similar real estate.
Booked the land rent, etc.

(4) Financial interests on deposits

64,000Appraised investment return as 1.0%.

(5) Capital expenditures

683,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) Net cash flow (NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method

64,282,000
3.7%
1,700,000,000

Discount rate

3.2%

Terminal capitalization rate

3.8%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

1,750,000,000

Ratio of land

61.7%

Ratio of building

38.3%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised, taking into account the individual characteristics of the subject property,
etc., with reference to the investment yields of similar properties.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price bymarketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

37

(11) Urban Park Umejima
Property
Property
RSC-25
no.
nameOverview of specified asset
Type of specified asset

Urban Park Umejima

Beneficiary interest in trust

Type

Residence

Trustee

SMBC Trust Bank Ltd.

Planned acquisition price 1,032 million yen

Planned acquisition date

December 1, 2023

Appraisal value

1,140 million yen

SellerINVALANCE Ltd.

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

3-1443-23, Umeda, Adachi-ku, Tokyo and others
Approx. 12-minute walk from “Umejima” Station of Tobu Isesaki Line
Proprietary ownership
770.37㎡ (Note1)

Use district

Industrial zone

60%

Floor area ratio

200%

1,805.78㎡

Use

Residence

November 30, 2023 (Planed)

Structure and floors

Reinforced concrete structure 5F

Goodworks Co., Ltd.

Master lease company

Goodworks Co., Ltd.

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateNovember 30, 2033

Proprietary ownership

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

1,446.10㎡

Total leased area-

Total number of tenants-

Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits-

Occupancy rate
January 2023

February 2023-

Special notation

March 2023-

April 2023-

May 2023-

Not applicable(Note 1) The site area includes the set-back portion (north side 0.91㎡ and south side 12.57㎡), however, it is planned to subdivide such
portion and donate it to Adachi Ward by construction completion.

(Note 2) As the building is expected to complete construction at the end of November 2023, it has not commenced operations as of the endof May 2023.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

38-

Property Features/ Key Points of Evaluation➢
The property is located at an approximate 12-minute walk from “Umejima” station on the Tobu Railway Isesaki Line, and is a
residence with good access to commercial districts, and can access “Tokyo” station in approximately 35 minutes by going
through “Ueno” station.
➢
In the surrounding area, there is the Umejima Ekimae-dori shopping street, as well as hospitals, schools, clinics and otherconvenient living facilities, and in addition to retail facilities which will increase living convenience, there are parks andgreenery making for a favorable residential environment.
➢
A newly built residence expected to be completed in November 2023, with the latest housing equipment. The floor plans
range from 1K to 2LDK making it a residence highly appealing to single persons and small households.
➢
It is a newly built residence with highly convenient transportation access, and stable occupancy is anticipated.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

39

(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Umejima

Appraisal value

1,140,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2023
Item

Indicated value by income approach

Details

Details

1,140,000,000

Indicated value by direct capitalization
method1,140,000,000(1) Operating revenue ((a)−(b))

55,037,000(a) Gross potential income

58,494,000(b) Vacancy loss, etc.

3,457,000(2) Operating expenses

12,548,000

Maintenance and managementfee

2,100,000

Utilities expenses

790,000

Repair expenses

819,000

Property management fee

1,071,000

Tenant leasing cost, etc.

3,042,000

Property taxes

4,351,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Booked by appraising rents which may be received stably in the mid- to long-term,
based on the new rent levels.
Recorded by taking into account the occupancy status of similar properties, supply anddemand trends, and the status of the subject property, etc.
Recorded by taking into account the individual characteristics of the subject real estate,etc. based on the level of similar real estate.
Recorded by taking into account the individual characteristics of the subject real estate,etc. based on the level of similar real estate.
Booked by taking into account expense levels for similar real estate properties andrepair and renewal costs in the ER, in addition to the cost for restoration to the originalstate which is normally assumed.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Leasing fees etc. and renewal fees have been booked by referring to the contract termsof the subject real estate property and the leasing conditions etc. of similar real estate
properties and also by taking into account replacement rates and occupancy rates etc.
Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.

Insurance premium

99,000Appraised based on the insurance agreement and the level of similar real estate.

Other expenses

276,000

Booked other expenses.

(3) Net operating income(NOI=(1)−(2))

42,489,000(4) Financial interests on deposits

39,000Appraised investment return as 1.0%.

(5) Capital expenditures

465,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) Net cash flow (NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method

42,063,000
3.7%
1,130,000,000

Discount rate

3.4%

Terminal capitalization rate

3.7%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

1,270,000,000

Ratio of land

61.0%

Ratio of building

39.0%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised, taking into account the individual characteristics of the subject property,
etc., with reference to the investment yields of similar properties.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price bymarketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

40

4. Description of the Asset to be Transferred
The Asset to be Transferred is described in the table below. With respect to the various terms stated in thetable, please refer to “Reference Material 5: The terms used in the tables of Description of Assets to be
Acquired and Asset to be Transferred.”
Property
Property
RSC-09no.
nameOverview of specified asset

Urban Park Koenji

Type

Residence

Type of specified asset

Beneficiary interest in trust

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned transfer price

1,315 million yen

Planned transfer dateAugust 31, 2023

Appraisal value

1,180 million yen

Buyer

A.D.Works Co., Ltd.

Location
Indication of residential
address
Nearest station
Type ofLand
ownership

3-992-30, Koenji Kita, Suginami-ku, Tokyo and others
3-19-12, Koenji Kita, Suginami-ku, Tokyo
Approx. 4-minute walk from “Koenji” Station of JR Chuo Line
Proprietary ownership
988.26㎡ (Note 1)

Use district

Category 1 mid/high-rise oriented
residential zone

60%

Floor area ratio

200% (Note 2)

1,524.34㎡

Use

Residence

October 13, 1987

Structure and floors

Reinforced concrete structure 4F

SHIMIZU COMPREHENSIVEDEVELOPMENT

Master lease company

SHIMIZU COMPREHENSIVEDEVELOPMENT

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateFebruary 29, 2028

Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

Proprietary ownership

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

1,365.48㎡

Total leased area

1,365.48㎡

Total number of tenants

75

Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

5,765 thousand yen
3,910 thousand yen

Occupancy rate
January 2023

February 2023

97.7%
Special notation

96.4%

March 2023
97.6%

April 2023
97.6%

May 2023
100.0%

Not applicable(Note 1) Including the set-back area of 7.10m2(Note 2) Permitted floor area ratio (FAR) of the building due to front road width is 160%.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

41

(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Koenji

Appraisal value

1,180,000,000

Appraisal firm

The Tanizawa Sogo Appraisal Co., Ltd.

Date of value

January 31, 2023
Item

Indicated value by income approach
Indicated value by direct capitalization
method(1) Operating revenue ((a)−(b))

Details
1,180,000,000
1,210,000,000
69,445,656(a) Gross potential income

73,017,752(b) Vacancy loss, etc.

3,572,096(2) Operating expenses

Description, etc.
Estimated by emphasizing the indicated value by DCF method andverifying with the indicated value by direct capitalization method.

Appraised and recorded the rent that can be received stably in themedium to long term based on the new rent level.
Appraised by taking into account the occupancy status of similar
properties, supply and demand trends, and the status of the subject
property, etc.

17,402,725

Maintenance and managementfee

2,425,092

Based on the Property Management contract and actual data.

Utilities expenses

3,359,081

Repair expenses

3,732,644

Property Management fee

1,478,161

Tenant leasing cost, etc.

2,406,250

Property taxes

2,094,800

Appraised based on actual data.
Booked by taking into account expense levels for similar real estate
properties and repair and renewal costs in the ER, in addition to the costfor restoration to the original state which is normally assumed.
Based on the Property Management contract.
Leasing fees etc. and renewal fees have been booked by referring to thecontract terms of the subject real estate property and the leasing conditions
etc. of similar real estate properties and also by taking into accountreplacement rates and occupancy rates etc.
Appraised based on tax-related documents.

101,110

Insurance premium
Other expenses

1,805,587(3) Net operating income(NOI=(1)−(2))

52,042,931
50,799(4) Financial interests on deposits(5) Capital expenditures

6,300,000(6) Net cash flow (NCF=(3)+(4)−(5))

45,793,730
3.8%(7) Capitalization rate
Indicated value by DCF method

Appraised based on actual data.

Appraised investment return as 1.0%.
Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.
Appraised by comprehensively taking into account case examples ofsimilar real estate properties, the marketability of the subject real estate
property, and trends in the real estate investment market.

1,170,000,000

Discount rate

3.9%

Terminal capitalization rate

4.0%

Indicated value by cost approachAppraised based on Insurance contract.

Appraised by taking into account the real estate-specific risk, liquidity risk,
individual risks associated with the subject property, etc., from the yield offinancial instruments.
Appraised based on the capitalization rate and reflecting uncertainty of
future prediction.

1,110,000,000

Ratio of land

89.2%

Ratio of building

10.8%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Determined using the indicated value by income approach as standard
and by reference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

42

5. Planned Seller and Transferee Profile(1) Planned Seller Profile① KOKO HOTEL Ginza1-chome, KOKO HOTEL Sapporo Ekimae, KOKO HOTEL Fukuoka Tenjin, KOKO HOTEL
Hiroshima Ekimae, KOKO HOTEL Kagoshima Tenmonkan
Name
Location
Representative
Main business description

GK Dart5-1-4, Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Kiel
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership and disposition of beneficiary interest in trust of real estate
2. Acquisition, ownership and disposition of loan claims
3. Acquisition, ownership and disposition of corporate bonds, silent partnership interest andother securities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All businesses incidental to the above
300,000 yen
May 14, 2020

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The aforementioned company does not fall under the category of interested party, etc. asprovided in the Investment Trusts Act or the Enforcement Order of the Investment Trusts Act;however, it falls under the category of interested party prescribed in the “Rules on Transactions
with Interested Parties”, which is the voluntary rules set forth by the Asset Manager for
preventing conflict of interests regarding its management of SAR’s assets. Upon making decisions
on the acquisition of assets, the Asset Manager undergoes deliberations and approval processes
in accordance with laws and regulations and such rules.

②

Fino Hotel Sapporo Odori, Best Western Plus Fukuoka Tenjin Minami
Name
Location
Representative
Main business description

GK Tenjin Hotel Kanri
5-1-4, Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Kiel
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership and disposition of beneficiary interest in trust of real estate
2. Acquisition, ownership and disposition of loan claims
3. Acquisition, ownership and disposition of corporate bonds, silent partnership interest andother securities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All businesses incidental to the above
300,000 yen
October 28, 2020

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The aforementioned company does not fall under the category of interested party, etc. asprovided in the Investment Trusts Act or the Enforcement Order of the Investment Trusts Act;

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

43

however, it falls under the category of interested party prescribed in the “Rules on Transactions
with Interested Parties”, which is the voluntary rules set forth by the Asset Manager for
preventing conflict of interests regarding its management of SAR’s assets. Upon making decisions
on the acquisition of assets, the Asset Manager undergoes deliberations and approval processes
in accordance with laws and regulations and such rules.

③

Urban Park Mitaka
Name
Location
Representative
Main business description

Meiho Enterprise Co.,Ltd.
5F Meguro Yamanote Place, 2-10-11 Meguro, Meguro-ku, Tokyo
Chairman & Representative Director Mitsuru Yabuki
1. Investment management business prescribed in the Financial Instruments and Exchange Act.
2. Type II financial instruments business prescribed in the Financial Instruments and ExchangeAct.
3. Investment advisory and agency business prescribed in the Financial Instruments andExchange Act.
4. Comprehensive real estate investment advisory business.
5. Business based on the Real Estate Specified Joint Enterprise Act.
6. Building lots and buildings transaction business.
7. The business of leasing, management, and operation of real estate.
8. to 11. Omitted
12. All other businesses incidental to each of the above items.
614,403,750 yen
September 9, 1968
5,530,203 thousand yen
13,937,584 thousand yen

CapitalEstablishedNet asset
Total asset
Major shareholders and
Mitsuru Yabuki 30.69%
shareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The company does not fall under the category of interested person, etc. of SAR or the AssetManager.
(Note) SAR, as of the date of this document, has signed an agreement regarding succession of status to the effect that SAR
will succeed to the position as purchaser under the beneficiary interest in trust sale and purchase agreement for the
relevant property from Star Asia Sogo Kaihatsu Co., Ltd.

④

Urban Park Kamata Minami I, Urban Park Kamata Minami II
Name
Location
Representative
Main business description

Jyukyo. Co, Ltd
1-1-4, Kotesashi-cho, Tokorozawa-shi, Saitama
Representative Director Hisato Yasunaga
1. Sale and purchase, brokerage, and management of real estate
2. Construction works contracting business
3. Sale of wooden materials and new building materials
4. Hotel operations
5. Food and beverage business6. Non-life insurance agency business
7. Warehousing business8. All other businesses incidental to each of the above items.
100 million yen
April 19,1979

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

44Capital relationship
Personnel relationship
Business relationship
Related party or not(Note)⑤

There is no capital relationship to report.
There is no personnel relationship to report.
There is no business relationship to report.
The company does not fall under the category of interested person, etc. of SAR or the AssetManager.
SAR, as of the date of this document, has signed an agreement regarding succession of status to the effect that SAR
will succeed to the position as purchaser under the beneficiary interest in trust sale and purchase agreement for the
relevant property from Godo Kaisha Djebel.

Urban Park Umejima
Name
Location
Representative
Main business description

INVALANCE Ltd.
2-1-1, Yoyogi, Shibuya-ku, Tokyo
Representative Director Yutaka Takahashi
1. The business of sale and purchase, exchange, brokerage, leasing, management, anddevelopment of real estate.
2. Business related to asset management consulting.
3. Business related to the coordination and promotion of the formation, management andoperation of real estate funds.
4. to 21. Omitted
22. All other businesses incidental to each of the above items.
143 million yen
May 17, 2004

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The company does not fall under the category of interested person, etc. of SAR or the AssetManager.
(Note) SAR, as of the date of this document, has signed an agreement regarding succession of status to the effect that SAR
will succeed to the position as purchaser under the beneficiary interest in trust sale and purchase agreement for the
relevant property from Godo Kaisha Corrida.

(2) Planned Transferee Profile
Name
Location
Representative
Main business description

CapitalEstablishedNet asset
Total asset
Major shareholders and

A.D.Works Co., Ltd.
2-2-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo
Representative Director Hideo Tanaka
1. Sale of real estate and brokerage service.
2. Leasing, supervision, holding and management services of real estate.
3. Real estate appraisal service.
4. Consulting work related to real estate.
5. Consulting work related to personal property.
6. Civil engineering, measurement, and design services.
7. Civil engineering and construction works.
8. Management of a registered architect office.
9. to 30． Omitted
31. All businesses incidental to the above.
100 million yen
May 5, 1936
The information is undisclosed as consent to disclosure has not been obtained from the company.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

45

shareholding ratio
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 relationshipIn the fiscal period ended January 31, 2022 (the 12th fiscal period), SAR has signed a sale andpurchase agreement for property acquisition with the aforementioned company, and has
acquired one property. Also, in the fiscal period ending July 31, 2023 (the 15th fiscal period), SAR
has signed a sale and purchase agreement with the company for the sale of a property, which isseparate from the Asset to be Transferred, and is expecting to sell 1 property. Other than thesetransactions, there are no business relationship to report.
Related party or not
The company does not fall under the category of interested person, etc. of SAR or the AssetManager.

6. Summary of tenants and hotel operators(1) After December 2023, the operators of the five hotel properties will be as follows.
KOKO HOTEL Ginza 1-Chome, KOKO HOTEL Sapporo Ekimae, KOKO HOTEL Fukuoka Tenjin､ KOKO HOTEL Hiroshima Ekimae,
KOKO HOTEL Kagoshima Tenmonkan
Name
KOKO HOTELS CO.,LTD.
Location
1-12-3、Iwamoto-cho, Chiyoda-ku, Tokyo
Representative
Representative Director Takahiro Tsujikawa
Main business description
1. Management of hotels, restaurants, sports facilities, golf courses, spas and other bathingfacilities, and entrustment of management
2. Operation, entrustment of management, management, purchase and sale, and consulting of
hotels, restaurants, sports facilities, golf courses, spas, and other bathing facilities
3. Planning, operation, and entrustment of training and education for hotel employees andcooks
4. Worker dispatch business5. Traveling and travel agency business6. mail order business using the Internet
7. shopping and home delivery of daily necessities
8. Leasing, buying and selling trademark rights, design rights, utility model rights, patent rights
and technical knowledge
9. investment and investment advisory business
10. Buying, selling, exchanging, leasing, managing and brokering real estate
11. Sale of alcoholic beverages, cigarettes, stamps, foodstuffs, specialty souvenirs, clothing andother daily sundries
12. Any and all businesses incidental or related to each of the preceding items
Capital1 million yen
Established
September 8, 2020
Net asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Total asset
Major shareholders andPolaris Holdings Co., Ltd.100%
shareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company falls under interested party, etc. defined in the Investment Trusts
Act and the Enforcement Order of the Investment Trusts Act and falls under the category ofinterested party prescribed in the “Rules on Transactions with Interested Parties”, which is thevoluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon deciding to the lease of such property, the Asset Manager
plans to conduct deliberations and approval processes in accordance with laws and regulations
and such rules.
(Note)The tenants as of the scheduled acquisition date are as follows, but the lessee status is scheduled to be succeeded after
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

46

December 2023.
KOKO HOTEL Ginza 1-Chome
KOKO HOTEL Sapporo Ekimae
KOKO HOTEL Fukuoka Tenjin
KOKO HOTEL Hiroshima Ekimae
KOKO HOTEL Kagoshima Tenmonkan

GK KOKO HOTEL Ginza 1-Chome
GK KOKO HOTEL Sapporo Ekimae
GK KOKO HOTEL Fukuoka Tenjin
GK KOKO HOTEL Hiroshima Ekimae
GK KOKO HOTEL Kagoshima Tenmonkan(2) Fino Hotel Sapporo Odori, Best Western Plus Fukuoka Tenjin Minami
FINO HOTELS CO.,LTD

Name
Location
Representative
Main business description

1-12-3、Iwamoto-cho, Chiyoda-ku, Tokyo
Representative Director Shigeru Takakura
1. Management of hotels, restaurants, sports facilities, golf courses, spas and other bathingfacilities, and entrustment of management
2. Operation, entrustment of management, management, purchase and sale, and consulting of
hotels, restaurants, sports facilities, golf courses, spas, and other bathing facilities
3. Planning, operation, and entrustment of training and education for hotel employees andcooks
4. General and specific worker dispatch services
5. Traveling and travel agency business
6. Mail order business using the Internet
7. Shopping and home delivery of daily necessities
8. Leasing, buying and selling trademark rights, design rights, utility model rights, patent rights
and technical knowledge
9. Planning, management and consulting of various events
10. Money lending business
11. Leasing and rental of cruisers and marine leisure goods
12. Investment and investment advisory business
13. Buying, selling, exchanging, leasing, managing, and brokering real estate
14. Sale of alcoholic beverages, cigarettes, stamps, foodstuffs, specialty souvenirs, clothing andother daily sundries
15. All businesses incidental and related to each of the preceding items
10 million yen
April 3, 2007
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Polaris Holdings Co., Ltd.100%

CapitalEstablishedNet asset
Total asset
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company falls under interested party, etc. defined in the Investment Trusts
Act and the Enforcement Order of the Investment Trusts Act and falls under the category ofinterested party prescribed in the “Rules on Transactions with Interested Parties”, which is thevoluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon deciding to the lease of such property, the Asset Manager
plans to conduct deliberations and approval processes in accordance with laws and regulations
and such rules.

7. Status of Parties Related to the Acquisition of the Property(1) KOKO HOTEL Ginza 1-Chome,
Current owner, current trustee
Company name
Relationshipwithparties

GK DartPrevious owner, previous trustee
Other than the one in a relationship of special
interest

The company does not fall under the category of―

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

47

who have special interests

interested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

Acquisition background and―Acquired for investment management purpose
reason, etc.
Acquisition price(Note)―
July
7,2022Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

(2) KOKO HOTEL Sapporo Ekimae
Current owner, current trustee
Company name

Relationship with parties
who have special interests

GK DartThe company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

Previous owner, previous trustee
Other than the one in a relationship of special
interest―

Acquisition background and―Acquired for investment management purpose
reason, etc.
Acquisition price(Note)―
July 7,2022
Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

(3) KOKO HOTEL Fukuoka Tenjin
Current owner, current trustee
Company name

Relationship with parties
who have special interests

Acquisition background andreason, etc.
Acquisition price

GK DartThe company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

Previous owner, previous trustee
Other than the one in a relationship of special
interest――(Note)―
July 7,2022
Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

(4) KOKO HOTEL Hiroshima Ekimae
Current owner, current trustee
Company name

Relationship with parties
who have special interests

Acquisition background and

GK DartThe company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

Previous owner, previous trustee
Other than the one in a relationship of special
interest――

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

48

reason, etc.
Acquisition price(Note)―
July 7,2022
Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

(5) KOKO HOTEL Kagoshima Tenmonkan
Current owner, current trustee
Company name

Relationship with parties
who have special interests

GK DartThe company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

Previous owner, previous trustee
Other than the one in a relationship of special
interest―

Acquisition background and―Acquired for investment management purpose
reason, etc.
Acquisition price(Note)―
July 7,2022
Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

(6) Fino Hotel Sapporo Odori
Company name

Relationship with parties
who have special interests

Current owner, current trustee
GK Tenjin Hotel Kanri

Previous owner, previous trustee
Other than the one in a relationship of special
interest

The company does not fall under the categoryof interested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

―

Acquisition background andAcquired for investment management purpose ―reason, etc.
Acquisition price(Note)―
December 28, 2021
Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

(7) Best Western Plus Fukuoka Tenjin-minami
Company name

Relationship with parties
who have special interests

Current owner, current trustee
GK Tenjin Hotel Kanri

Previous owner, previous trustee
Other than the one in a relationship of special
interest

The company does not fall under the categoryof interested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

―

Acquisition background andAcquired for investment management purpose ―reason, etc.
Acquisition price(Note)―
April 28, 2021
Acquisition period―(Note) Omitted as the current owner has owned the property for over one year.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

49

(8)Urban Park Mitaka,Urban Park Kamata Minami I,Urban Park Kamata Minami II,Urban Park Umejima
There are no acquisitions from persons who have special interest relationships with SAR or the Asset Manager.
8. Overview of Broker(1)KOKO HOTEL Ginza 1-Chome, KOKO HOTEL Sapporo Ekimae, KOKO HOTEL Fukuoka Tenjin, KOKO HOTEL
Hiroshima Ekimae, KOKO HOTEL Kagoshima Tenmonkan, Fino Hotel Sapporo Odori, Best Western Plus Fukuoka
Tenjin Minami, Urban Park Mitaka, Urban Park Kamata Minami I, Urban Park Kamata Minami II, Urban Park
Umejima① Overview of Broker
Name
Location
Representative
Main business description

Star Asia Asset Advisors Co., Ltd.
Atago Green Hills MORI Tower, 18th Floor, 2-5-1 Atago, Minato-ku, Tokyo
CEO Keiji Watanabe
1. Investment management business prescribed in the Financial Instruments and Exchange Act.
2. Type II financial instruments business prescribed in the Financial Instruments and Exchange Act.
3. Investment advisory and agency business prescribed in the Financial Instruments and ExchangeAct.
4. Comprehensive real estate investment advisory business.
5. Business based on the Real Estate Specified Joint Enterprise Act.
6. Building lots and buildings transaction business.
7. The business of leasing, management, and operation of real estate.
8. to 11. Omitted
12. All businesses incidental to the above
Capital50 million yen
EstablishedMay 2, 2008
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital tie to be noted between SAR / the Asset Manager and the abovementioned
company, however the aforementioned company falls under interested party, etc. as defined in
Article 201 Paragraph 1 of the Investment Trusts Act and Article 123 of the Enforcement Order of
the Investment Trusts Act; and falls under the category of interested party prescribed in the“Rules on Transactions with Interested Parties”, which is the voluntary rules set forth by the AssetManager for preventing conflict of interests regarding its management of SAR’s assets.
Upon determination of retention as broker, the Asset Manager has performed deliberation andapproval in accordance with laws and regulations and such rules.
Personnel relationship There is no personnel relationship to report.
Business relationshipIn the fiscal period ended January 31, 2023 (14th fiscal period), SAR engaged in asset acquisition
with the aforementioned company, which acted as an intermediary.
Related party or not
The aforementioned company falls under the category of interested party, etc. as defined in
Article 201 Paragraph 1 of the Investment Trusts Act and Article 123 of the Enforcement Order of
the Investment Trusts Act, and falls under the category of interested party prescribed in the“Rules on Transactions with Interested Parties”, which is the voluntary rules set forth by the AssetManager for preventing conflict of interests regarding its management of SAR’s assets. Upon
determination of the retention as broker, the Asset Manager has performed deliberation andapproval in accordance with laws and regulations and such rules.

② Breakdown and value of the brokerage commissions
Breakdown of brokerage commission
Amount of brokerage commission(Excluding consumption tax and local
consumption tax)

Brokerage commissions for the sale and purchase of beneficiary interest in trust.
KOKO HOTEL Ginza 1-Chome
2,000,000 yen
KOKO HOTEL Sapporo Ekimae
2,000,000 yen
KOKO HOTEL Fukuoka Tenjin
2,000,000 yen
KOKO HOTEL Hiroshima Ekimae
2,000,000 yen
KOKO HOTEL Kagoshima Tenmonkan
2,000,000 yen
Fino Hotel Sapporo Odori
2,000,000 yen
Best Western Plus Fukuoka Tenjin-minami
2,000,000 yen
Urban Park Mitaka
2,000,000 yen
Urban Park Kamata Minami I
2,000,000 yen

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

50

Urban Park Kamata Minami II
Urban Park Umejima
Total

2,000,000 yen
2,000,000 yen
22,000,000 yen(2)Urban Park Koenji
As for name, etc. and breakdown and value of the brokerage commission, since the consent has not beenobtained from the domestic company as the broker, the information is not disclosed. The broker does not
fall under the category of interested party, etc. under the Investment Trusts Act or “Interested Parties” asdefined in the “Rules on Transactions with Interested Parties” which are internal rules of the Asset Manager.
9．Interested-Party Transactions
The sellers of the 7 hotel properties do not fall under interested party, etc. under the Investment Trusts Act; however, theyfall under the category of interested party prescribed in the “Rules on Transactions with Interested Parties” which are thevoluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its management of SAR’s assets.
The sellers of Urban Park Mitaka, Urban Park Kamata Minami I, Urban Park Kamata Minami II, Urban Park Umejima do not
fall under interested party, etc. under the Investment Trusts Act; however, Star Asia Sogo Kaihatsu Co., Ltd., Godo Kaisha
Djebel and Godo Kaisha Corrida who are the initial purchasers under the sale and purchase agreement (the predecessors of
the succession of status of purchaser) fall under the category of interested party prescribed in the “Rules on Transactions with
Interested Parties” which are the voluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon deciding on the Acquisition, the Asset Manager has conducted deliberations and approval
processes in accordance with laws and regulations and such rules.
The broker of the Acquisition and the counterparties (Including those who will succeed to the position of lessee, which isscheduled in December 2023.) under the lease agreements related to 7 hotel properties fall under interested party, etc. underthe Investment Trusts Act, and they also fall under the category of interested party prescribed in the “Rules on Transactions
with Interested Parties” which are the voluntary rules set forth by the Asset Manager for preventing conflict of interests
regarding its management of SAR’s assets.
Upon deciding on the intermediation of the Acquisition and signing of the lease agreements related to the 7 hotel
properties, the Asset Manager has conducted deliberations and approval processes in accordance with laws and regulations
and such rules.

10．Impact on SAR’s finance in the case where the forward commitments etc. are not performed.
The beneficiary interest in trust sale and purchase agreements for the 3 properties under the Acquisition (Urban Park Kamata
Minami I, Urban Park Kamata Minami II, and Urban Park Umejima) fall under forward commitments etc. by an investmentcompany (Note) as set forth in the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.”
prescribed by the Financial Services Agency.
The beneficiary interest in trust sale and purchase agreements for “Urban Park Kamata Minami I”, “Urban Park Kamata
Minami II” and “Urban Park Umejima” stipulate that in certain cases such as when the initial purchaser (includes SAR as
successor to the status of initial purchaser. The same applies below) and/or the seller has breached the terms of agreement
or representations and warranties set forth in the beneficiary interest in trust sale and purchase agreement or whenbankruptcy proceedings commence with respect to the initial purchaser or seller, the other party has the right to terminate
the agreement. It is provided that if an agreement is terminated pursuant to such provision, the amount of 20% of the saleand purchase proceeds is payable as penalty (liquidated damages).
However, the execution of the beneficiary interest in trust sale and purchase agreements for “Urban Park Kamata Minami
I” and ”Urban Park Kamata Minami II” is subject to the condition that SAR completes funds procurement, and even in the casewhere funds procurement through public offering or borrowings is not completed and SAR is not able to procure the amountof proceeds under the sale and purchase agreements, it is believed that the likelihood that SAR will be held contractually liable
under the agreements is limited, and the possibility that such case will have a direct material impact on SAR’s finance anddistributions etc. is low.
Furthermore, with respect to “Urban Park Umejima”, even in the case where funds procurement cannot be made for theamount or proceeds payable under the sale and purchase agreement, such amount can be settled by use of SAR’s own funds,
and therefore it is believed that the likelihood that SAR will be held contractually liable under the agreements is limited, and thepossibility that such case will have a direct material impact on SAR’s finance and distributions etc. is low.
(Note) This refers to forward dated sale and purchase agreements, where it is intended that settlement or delivery is tooccur after 1 month or more from the date of signing of the agreement, and any other similar agreements.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

51

11．Initiative schedule(1) Schedule for the Acquisition
August 7, 2023

September 1, 2023
(planned acquisition date of
8 properties)
December 1, 2023
(planned acquisition date of
3 properties)

Acquisition decided
Signed the agreements for succession of status as purchaser (for 4 residential
properties)
Signed the beneficiary interest in trust sale and purchase agreements (for 7 hotel
properties)
Acquire the beneficiary interest in trust (planned)
Pay the purchase proceeds for 8 properties (planned)
Sign the master lease agreements, lease agreements and property managementagreements (planned)
Acquire the beneficiary interest in trust (planned)
Pay the purchase proceeds for 3 properties (planned)
Sign the master lease agreements and property management agreements(planned)(2) Schedule for the Transfer
August 7, 2023

August 31, 2023

Transfer decided
Signed the beneficiary interest in trust sale and purchase agreement
Receipt of deposit (planned)
Transfer of beneficiary interest in trust (planned)
Receipt of remaining transfer proceeds (planned)

12．Settlement method
The settlement for the Assets to be Acquired is expected to take place by making lump-sum payment of theacquisition price on the planned acquisition dates. The settlement for the Asset to be Transferred is expected
to take place by receiving lump-sum payment of the transfer price on the scheduled transfer date.
13．Future outlook
As a result of the Initiative, there will be certain changes made to the assumptions for the forecasts for
operating results and distribution described in “(REIT) Financial Report for Fiscal Period Ended January 31,2023” announced on March 16, 2023. For further details, please refer to “Notice Concerning Revision to
Forecasts for Operating Results and Distribution for the 16th Fiscal Period Ending January 31, 2024 andForecasts for Operating Results and Distribution for the 17th Fiscal Period Ending July 31, 2024” announced
today.
<Appendix>
・Reference Material 1
・Reference Material 2・Reference Material 3
・Reference Material 4・Reference Material 5

Summary of portfolio after the Initiative
Portfolio list after the Initiative
Summary of earthquake risk analysis
Location maps / photos of exterior
The terms used in the table of Description of Assets to be Acquired andAsset to be Transferred

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

52

<Reference>
Other press releases announced today
・Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units
・Notice Concerning the Decision on the Transfer Date of Urban Park Gokokuji (the Asset)
・Notice Concerning Revision to Forecasts for Operating Results and Distribution for the 16th Fiscal
Period Ending January 31, 2024 and Forecasts for Operating Results and Distribution for the 17th
Fiscal Period Ending July 31, 2024
・Notice Concerning Debt Financing
・Notice Concerning Signing of Preferential Negotiation Rights Agreement for the Acquisition of Assets*SAR HP URL: https://starasia-reit.com/en/

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

53

Reference Material 1

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

OfficeRetailResidence
Logistics
Hotel
Student residence(Preferred equity securities)
Total

21
5
21
8
16

(Planned) Acquisition
Price (million yen)
74,78727,75438,943
29,66369,544

Investment ratio (%)(Note)

1

1,562

0.6

72

242,253

100.0

30.9
11.5
16.1
12.2
28.7

＜Investment Areas＞(Planned) Acquisition
Investment ratio (%)
Price (million yen)
(Note)
Tokyo Area
153,650
63.4
Osaka, Nagoya, Fukuoka
47,093
19.4
Major Metropolitan Areas
36.6
Other areas
41,51017.1
Total
242,253100.0(Note) Ratios have been calculated based on the total (planned) acquisition price, and stated by rounding to the 1st decimal
point. Therefore, ratios may not add up to 100%.
Area

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

54

Reference Material 2

Property
No.

Portfolio list after the Initiative

Location(Note 1)

Property Name

(Planned)
AcquisitionPrice(millionyen)(Note 2)
2,973

Real estateappraisalvalue(million yen)
(Note 3)

Investment
ratio
(%)
(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

3,040

1.2

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-Shi, Osaka

6,065

7,090

2.5

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,660

0.7

OFC-06

Urban Center Shibuya East(Note 5)
Urban Center Yokohama West(Note5)

Shibuya-ku, Tokyo
Kanagawa-ku, YokohamaShi, Kanagawa
Hakata-ku, Fukuoka-Shi,
Fukuoka
Chuo-ku, Tokyo

2,042

3,290

0.8

6,320

8,390

2.6

2,286

3,140

0.9

1,450

1,500

0.6

2,580

2,790

1.1

7,440

7,320

3.1

1,020

1,240

0.4

OFC-08
OFC-09Hakata-eki East Place

OFC-10Nihonbashi Hamacho Park Building

OFC-11

Amusement Media Gakuin Honkan

OFC-12

Higashi Kobe Center Building

OFC-13

Amusement Media Gakuin Shinkan

Shibuya-ku, Tokyo
Higashinada-ku,
Kobe-Shi, Hyogo
Shibuya-ku, Tokyo

OFC-14

Seishin BLDG.

Shinjuku-ku, Tokyo

11,20011,7004.7

OFC-15

Urban Center Kanda Suda-cho

Chiyoda-ku, Tokyo

5,350

5,440

2.2

OFC-16

Urban Center Kanda Tsukasamachi

Chiyoda-ku, Tokyo

4,590

4,630

1.9

OFC-17

Takadanobaba AccessShinjuku-ku, Tokyo

3,990

3,990

1.7

OFC-18

Azabu Amerex BLDG.

Minato-ku, Tokyo

2,780

2,910

1.2

OFC-19Hiei-Kudan BLDG.

2,400

2,390

1.0

OFC-20Urban Center Shin-Yokohama

2,300

2,590

1.0

OFC-21The Portal Akihabara

Chiyoda-ku, Tokyo
Kohoku-ku, Yokohama-Shi,
Kanagawa
Chiyoda-ku, Tokyo

1,510

1,490

0.6

OFC-22

Urban Center Tachikawa

1,804

1,980

0.7

OFC-23

Urban Center Hakata

2,870

3,200

1.2

OFC-24

Urban Center Fujisawa

Tachikawa-Shi, Tokyo
Hakata-ku, Fukuoka-shi,
FukuokaFujisawa-Shi, Kanagawa

2,054

2,200

0.9

74,787

82,980

31.1

RTL-01

La Park Kishiwada

Kishiwada-Shi, Osaka

5,400

5,240

2.2

RTL-02

Suroy Mall Chikushino

Chikushino-Shi, Fukuoka

6,550

6,290

2.7

RTL-03

Seiyu Minakuchi

Koka- hi, Shiga

3,320

3,330

1.4

RTL-05

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,410

1.2

RTL-06abeno nini (Retail)Abeno-ku, Osaka-Shi, Osaka

9,500

10,100

3.9

Retail Subtotal

27,75428,370

11.5

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,930

0.8

RSC-02

Urban Park Daikanyama

6,315

10,100

2.6

RSC-05

Urban Park Namba

1,490

1,550

0.6

RSC-07

Urban Park Kashiwa

Shibuya-ku, Tokyo
Naniwa-ku, Osaka-Shi,
Osaka
Kashiwa-Shi, Chiba

1,186

1,200

0.5

RSC-08

Urban Park Ryokuchi Koen

1,550

1,720

0.6

RSC-10Urban Park Ichigao

1,810

2,170

0.8

RSC-11

Urban Park Gyotoku

Suita-Shi, Osaka
Aoba-ku, Yokohama-Shi,
Kanagawa
Ichikawa-Shi, Chiba

1,430

1,600

0.6

Office Subtotal

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

55

RSC-12

Shiroi Logiman

Shiroi-Shi , Chiba

2,470

2,520

1.0

RSC-13

Urban Park Sekime

Jyoto-ku, Osaka-Shi, Osaka

2,150

2,460

0.9

RSC-14

Urban Park Imazato

Ikuno-ku, Osaka-Shi, Osaka

993

1,100

0.4

RSC-15

Urban Park Yoyogi

1,740

1,990

0.7

RSC-16

Urban Park Tokiwadai Koen

3,506

3,960

1.5

RSC-17

Urban Park Mitsuike Koen

3,160

3,580

1.3

RSC-18

Urban Park Ryogoku

1,115

1,280

0.5

RSC-19Urban Park Mizonokuchi

2,019

2,100

0.8

RSC-20Urban Park Miyamaedaira

1,060

1,260

0.4

RSC-21

Urban Park Tsurumi

1,113

1,190

0.5

RSC-22

Urban Park Mitaka

Shibuya-ku, Tokyo
Hodogaya-ku, YokohamaShi, Kanagawa
Tsurumi-ku, Yokohama-Shi,
Kanagawa
Sumida-ku, Tokyo
Takatsu-ku, Kawasaki-Shi
Kanagawa
Miyamae-ku, Kawasaki-Shi
Kanagawa
Tsurumi-ku, Yokohama-Shi
Kanagawa
Mitaka-shi, Tokyo

743

1,010

0.3

RSC-23

Urban Park Kamata Minami I

Ota-ku, Tokyo

641

864

0.3

RSC-24

Urban Park Kamata Minami II

Ota-ku, Tokyo

1,375

1,720

0.6

RSC-25

Urban Park Umejima

Adachi-ku, Tokyo

1,032

1,140

0.4

38,94347,444

16.1

6,942

7,690

2.9

3,560

4,340

1.5

7,875

8,930

3.3

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Residence Subtotal
Iwatsuki-ku, Saitama-Shi,
Saitama
Kanagawa-ku, YokohamaShi, Kanagawa
Funabashi-Shi, Chiba

LGC-04

Baraki Logistics

Ichikawa-Shi, Chiba

4,700

5,030

2.0

LGC-05Tokorozawa Logistics

Tokorozawa-Shi, Saitama

1,300

1,550

0.5

LGC-07

Funabashi Nishiura Logistics II

Funabashi-Shi, Chiba

821

891

0.3

LGC-08

Matsubushi Logistics

Kitakatsushika, Saitama

2,755

3,240

1.1

LGC-09Funabashi Hi-Tech Park Factory I

Funabashi-Shi, Chiba

1,710

1,710

0.7

29,66333,381

12.3

Kita-ku, Osaka-Shi, Osaka
Naniwa-ku, Osaka-Shi,
Osaka

2,069

2,280

0.9

1,750

1,440

0.7

Edogawa-ku, Tokyo

3,827

3,470

1.6

3,248

3,210

1.3

1,970

1,920

0.8

2,500

2,440

1.0

3,180

3,140

1.3

2,000

1,420

0.8

3,600

3,690

1.5

17,80018,600

7.4

6,700

7,040

2.8

5,000

5,370

2.1

Logistics facility Subtotal
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-07The BREAKFAST HOTEL FUKUOKATENJIN
GLANSIT AKIHABARAREMBRANDT STYLE Tokyo
Nishikasai Grande

HTL-08

KOKO HOTEL Osaka Namba

HTL-09abeno nini (Hotel)

HTL-10

KOKO HOTEL Ginza 1-Chome

HTL-11

KOKO HOTEL Sapporo Ekimae

HTL-12

KOKO HOTEL Fukuoka Tenjin

Tsurumi-ku, Yokohama-Shi,
Kanagawa
Chuo-ku, Fukuoka-Shi ,FukuokaChiyoda-ku, Tokyo
Edogawa-ku, Tokyo
Naniwa-ku,Osaka-Shi,
Osaka
Abeno-ku, Osaka-Shi, Osaka
Chuo-ku, Tokyo
Chuo-ku, Sapporo-Shi,
Hokkaido
Chuo-ku, Fukuoka-Shi,
FukuokaNote: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

56

HTL-13

KOKO HOTEL Hiroshima Ekimae

Minami-ku, Hiroshima -Shi,
Hiroshima

4,100

4,280

1.7

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

Kagoshima-shi, Kagoshima

3,800

4,260

1.6

HTL-15

Fino Hotel Sapporo Odori

4,200

4,250

1.7

HTL-16

Best Western Plus Fukuoka Tenjinminami

3,800

4,390

1.6

69,544

71,20028.9

240,691

263,375

100.0

Chuo-ku, Sapporo-Shi,
Hokkaido
Chuo-ku, Fukuoka-Shi,
Fukuoka
Hotel Subtotal

Total(Note 1) “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 2) “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 the agreement
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 based on a sale and purchaseagreement for multiple properties where no price is established for each individual property, the amount derived 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”.In addition, for the property succeeded by the merger, the appraisal value stated in the real estateappraisal report with the date of value as of the end of July 2020, which is the accepted price, is stated.
(Note 3) The appraisal was commissioned to Japan Real Estate Institute, Daiwa Real Estate Appraisal Corporation and Tanizawa Sogo Appraisal Co.,
“Real estate appraisal value” states the appraisal values stated in the real estate appraisal reports based on the price which is rounded to
the nearest 1 million yen as the end of January, 2023, for already acquired properties, and the appraisal value stated in the real estateappraisal report based on the price which is rounded to the nearest 1 million yen as of July 1, 2023 with respect to the Assets to be
Acquired.
(Note 4) “Investment ratio” shows the ratio of the (planned) acquisition price of each of acquired assets or Asset to be Acquired against the sumof the (planned) acquisition price for acquired assets and Asset to be Acquired rounded to the first decimal point.
(Note 5) On July 1, 2023, the property name of “Shibuya MK Building” has been changed to “Urban Center Shibuya East” and the property nameof “Asahi Building” has been changed to “Urban Center Yokohama West”, respectively, and the above chart has stated the property names
after such changes. The same applies below.
(Note 6) Propety No. LGC-10 “Funabashi Hi-Tech Park Factory II” has been assigned on February 20, 2023, and with respect to Property No. RSC-06“Urban Park Gokokuji” whih is managed as of the date of this document, a sale and purchase agreement has been signed on March 16,2023 to the effect that it will be sold on August 31, 2023 or such other planned transfer date agreed between SAR and the plannedpurchaser. Likewise, with respect to Property No. RSC-09 “Urban Park Koenji” which is managed as of the date of this document, a saleand purchase agreement has been signed on August 7, 2023, with the planned transfer date on August 31, 2023. Therefore, each of suchproperties have been excluded from the desciption of the porfoilo after execution of the Initiative.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

57

Reference Material 3

Summary of earthquake risk analysis

Propertyno.

Property name

Type

OfficeRetailResidence

PML(%)

OFC-01

Minami-Azabu Shibuya Building

11.6

OFC-03

Honmachibashi Tower

5.5

OFC-04

Nishi-Shinjuku Matsuya Building

5.5

OFC-06

Urban Center Shibuya East

7.2

OFC-08

Urban Center Yokohama West

6.2

OFC-09Hakata-eki East Place

4.7

OFC-10Nihonbashi Hamacho Park Building

7.4

OFC-11

Amusement Media Gakuin Honkan

7.6

OFC-12

Higashi-Kobe Center Building

8.6

OFC-13

Amusement Media Gakuin Shinkan

9.6

OFC-14

Seishin BLDG.

5.5

OFC-15

Urban Center Kanda Suda-cho

8.4

OFC-16

Urban Center Kanda Tsukasamachi

9.4

OFC-17

Takadanobaba Access

3.5

OFC-18

Azabu Amerex BLDG.

10.2

OFC-19Hiei-Kudan BLDG.

3.6

OFC-20Urban Center Shin-Yokohama

4.4

OFC-21The Portal Akihabara

8.2

OFC-22

Urban Center Tachikawa

4.5

OFC-23

Urban Center Hakata

3.6

OFC-24

Urban Center Fujisawa

9.7

RTL-01

La Park Kishiwada

14.8

RTL-02

Suroy Mall Chikushino

2.2

RTL-03

Seiyu Minakuchi

4.2

RTL-05

BAGUS Ikebukuro West

4.6

RTL-06abeno nini (Retail)

6.2

RSC-01

Urban Park Azabujuban

7.5

RSC-02

Urban Park Daikanyama

8.1

RSC-05

Urban Park Namba

8.1

RSC-07

Urban Park Kashiwa

4.9

RSC-08

Urban Park Ryokuchi Koen

6.4

RSC-10Urban Park Ichigao

9.8

RSC-11

Urban Park Gyotoku

5.1

RSC-12

Shiroi Logiman

3.5

RSC-13

Urban Park Sekime

11.5

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

58

Logistics

Hotel

RSC-14

Urban Park Imazato

12.0

RSC-15

Urban Park Yoyogi

7.7

RSC-16

Urban Park Tokiwadai Koen

9.6

RSC-17

Urban Park Mitsuike Koen

9.7

RSC-18

Urban Park Ryogoku

6.0

RSC-19Urban Park Mizonokuchi

10.4

RSC-20Urban Park Miyamaedairai

4.5

RSC-21

Urban Park Tsurumi

9.9

RSC-22

Urban Park Mitaka

7.6

RSC-23

Urban Park Kamata Minami I

4.3

RSC-24

Urban Park Kamata Minami II

8.0

RSC-25

Urban Park Umejima

2.6

LGC-01

Iwatsuki Logistics

3.9

LGC-02

Yokohama Logistics

13.0

LGC-03

Funabashi Logistics

5.7

LGC-04

Baraki Logistics

3.8

LGC-05Tokorozawa Logistics

9.5

LGC-07

Funabashi Nishiura Logistics II

2.9

LGC-08

Matsubushi Logistics

2.2

LGC-09Funabashi Hi-Tech Park Factory Ⅰ

5.7

HTL-01R&B Hotel Umeda East

9.0

HTL-02

Smile Hotel Namba

9.2

HTL-03REMBRANT STYLE Tokyo Nishikasai

9.0

HTL-04

BEST WESTERN Yokohama

11.1

HTL-05The BREAKFAST HOTEL FUKUOKA TENJIN

5.0

HTL-06

GLANSIT AKIHABARA

3.7

HTL-07REMBRANT STYLETokyo Nishikasai Grande

6.1

HTL-08

KOKO HOTEL Osaka Namba

6.7

HTL-09abeno nini (Hotel)

6.2

HTL-10

KOKO HOTEL Ginza 1-Chome

5.9

HTL-11

KOKO HOTEL Sapporo Ekimae

2.2

HTL-12

KOKO HOTEL Fukuoka Tenjin

4.3

HTL-13

KOKO HOTEL Hiroshima Ekimae

2.3

HTL-14

KOKO HOTEL Kagoshima Tenmonkan

6.5

HTL-15

Fino Hotel Sapporo Odori

4.2

HTL-16

Best Western Plus Fukuoka Tenjin-minami

3.2

Entire portfolio (71 properties) (Note)

2.4(Note)The figure in the entire portfolio column is the PML for the entire portfolio of the Existing Assets / Assets to be Acquired (portfolio PML)
based on “portfolio earthquake risk evaluation report” prepared by Tokio Marine DR Co., Ltd. dated July 2023.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

59

Reference Material 4

Location maps / photos of exterior

HTL-10 KOKO HOTEL Ginza 1-Chome

HTL-11 KOKO HOTEL Sapporo Ekimae

HTL-12 KOKO HOTEL Fukuoka Tenjin

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

60

HTL-13 KOKO HOTEL Hiroshima Ekimae

HTL-14 KOKO HOTEL Kagoshima Tenmonkan

HTL-15

Fino Hotel Sapporo Odori

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

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HTL-16

Best Western Plus Fukuoka Tenjin-minami

RSC-22 Urban Park Mitaka

RSC-23 Urban Park Kamata Minami I

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

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RSC-24 Urban Park Kamata Minami II※Completion rendering
RSC-25 Urban Park Umejima※Completion rendering

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

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Reference Material 5

The terms used in the table of Description of Assets to be Acquired and Asset to beTransferred(a)Explanation on “Property no.” and “Type”

Property Number column and Type column: Each of Assets to be Acquired and Asset to be Transferred by SAR is categorized by use of OFC(office), RTL (commercial / retail), RSC (residence), LGC (logistics), or HTL (hotel). Then, for each category, serial numbers are given to the assets
in the category. In case of a property which could straddle two or more categories, it shall fall under the category from which the property
generates the largest sum of assumed rent income.
(b)

Explanation on “Overview of specified asset”

a.“Planned Acquisition price” and “Planned Transfer price” column: Herein is shown the planned acquisition price or sale price of the Assets to
be Acquired and transfer price of the Asset to be Transferred as described in the purchase and sale agreement of the Assets to be Acquired andAsset to be Transferred (excluding consumption taxes, local consumption taxes, and expenses necessary for the acquisition), after rounded to
the nearest million yen.
b.“Planned Acquisition Date” and “Planned Transfer Date” column: Herein is shown the planned MMDDYY of acquisition and transfer by SAR.
c.“Location” column: Herein is shown the certified address in registry. “Indication of residential address” column: Herein is shown the postal
address. If postal address is not available and when the building has not been completed as of the date of this document, "-" is indicated.
d.“Land” column:i.

“Type of ownership” column: Herein is shown the type of right(s) held by respective trustee of the Assets to be
Acquired and Asset to be Transferred.

ii.

“Site area” column: Herein is shown the land area as recorded in registry, unless otherwise noted. For this reason, it
possibly might not be equal to the actual.

iii.

“Use district” column: Herein is shown the type of use in accordance with Article 8, Paragraph 1 and Item 1 of the
Urban Planning Act (Act No.100 of 1968; including its amendments) (“Urban Planning Act”).

iv.

“Building coverage ratio” column and “Floor area ratio” column: Herein is shown the pertinent figure in each column inaccordance with the relevant laws and regulations (the Building Standards Act, the Urban Planning Act, etc.)

e. “Building” column:i.

“Type of ownership” column. Herein is shown the type of right(s) held by respective trustee of the Assets to be Acquiredand Asset to beTransferred.

ii.

“Total floor area” column: Herein is shown the sum total of floor areas as recorded in registry, unless otherwise noted.
For this reason, it possibly might not be equal to the actual figure.In cases where the building has not yet been completed
as of the date of this document, the information is based on the confirmation certificate and may be subject to change inthe future.

iii.

“Use” column: Herein is shown the registered use or, if multiple uses are registered the representative use from what arerecorded in registry, it possibly might not be equal to the actual representative use. As for the building withcompartmentalized ownership, the type of use for the exclusively owned space by SAR is shown.In cases where thebuilding has not yet been completed as of the date of this document, the information is based on the confirmation
certificate and may be subject to change in the future.

iv.

“Construction completion” column: Herein is shown MMDDYY of the representative building first built as recorded inregistry. If the building is not yet completed as of the date of this document, the date of completion is indicated as of thedate of this document and may be changed in the future.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

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v.

“Structure and floors” column: Herein is shown the structure and number of floors of the representative building, etc. as
recorded in registry. It possibly might not be equal to the actual structure and number of floors. As for the building withcompartmentalized ownership, the structure and the number of floors for the entire building are shown.In cases where
the building has not yet been completed as of the date of this document, the information is based on the confirmation
certificate and may be subject to change in the future.

f. “Property management company” column: Herein is shown the name of property management company (“PM Company”), to which
property management operation is (planned to be) entrusted as of today
g. “Master lease company” column: Herein is shown the name of the master lease company, to which master lease operation is (planned to be)
entrusted, as of today.
(c)Explanation on “Status of leasing”

a. “Total leasable area” column: Herein is shown the sum total of leasable floor areas of buildings of the Assets to be Acquired and Asset to beTransferred (in case common space is also leased, area of that space is included in the total). The figure does not include the area of the landlots leasable for parking and other purposes. Leasable area is counted not from registry data but from area data as described in leaseagreements or from area data as calculated by using the architectural drawings of the buildings, so it possibly might not be equal to the total
floor area as recorded in registry.
Please note that, unless noted otherwise, the source data for the column represent what were provided by the current owner(s) of the Assets
to be Acquired as of May 31, 2023, and the information as of the end of January 2023 for the Asset to be Transferred. With respect to the

Assets to be Acquired (7 hotel properties), the figures stated are based on each lease agreement expected to be signed after SAR
acquires the properties (the same applies hereinafter, under the “Status of Leasing” sections, unless otherwise stated in the
annotations). Furthermore, in cases where the building construction is not yet completed as of the end of May 31, 2023, “Total
leasable area” states the total leasable area planned as of May 31, 2023, and there is a possibility that such area may change in the
future.
b. “Total leased area” column: Herein is shown the sum total of the floor areas to be leased as described in lease agreement for each of theAssets to be Acquired and Asset to be Transferred as of May 31, 2023 out of the leasable area. The figure does not include the area of the landlots to be leased for parking and other purposes. Please note that the source data for the column represent what were provided by the current
owner(s) of the Assets to be Acquired as of May 31, 2023. In cases where building construction is not completed as of May 31, 2023, it is

written as “－”.
c. “Occupancy rate” column: Herein is shown the percentage of total leased floor area over the total leasable floor area of the Assets to be
Acquired and Asset to be Transferred, after rounded to the first decimal point. Please note that the source data for the column represent what
were provided by the current owner(s) of the Assets to be Acquired as of May 31, 2023.In addition, if the building is not yet completed as ofthe end of May 2023, "-" is indicated. In addition, the seven hotel properties are described as "-" because they are managed by the seller byentering into a management consignment agreement as of today.
d. “Total number of tenants” column: Herein is shown the total number of tenants as confirmed with the lease agreements effective as of May
31, 2023 of the Assets to be Acquired. In case a specific tenant uses two or more rooms in one of the Assets to be Acquired and Asset to beTransferred, such tenant is counted only once for the asset. Also, in case a specific tenant signs lease agreements for rooms in two or more
assets, the tenant shall be counted for each of the assets separately. In case a pass-through type of master lease agreement (a lease agreementin which the master lessee receives rent from end tenants and pay the same amount to the lessor) is executed for any of the Assets to be
Acquired and Asset to be Transferred, total number of the actual (end) tenants under the master lease agreement for the asset is shownherein.In addition, "-" is indicated when the building is not yet completed as of the end of May 2023.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

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e. “Monthly rent (including common area maintenance fee)” column: Herein is shown the total of rent amounts as described in leaseagreements with respective tenants as of last day of May, 2023 (confined to room rents; excluding the charges for warehouses, sign boards andparking lots; but including the common service expenses; and free rent cases as of the same date are not considered), after rounded to thenearest thousand yen. In addition, "-" is indicated when the building is not yet completed as of the end of May 2023.Furthermore, withrespect to the Assets to be Acquired (7 hotel properties), as of the date of this document, it is written as “－”, because the properties aremanaged by the sellers by signing management entrustment agreements.
f. “Security and guarantee deposits” column: Herein is shown the sum total of refundable deposits as required in lease agreements effective asof May 31, 2023 (only for the tenants who actually were in respective rooms at the time) of the Assets to be Acquired. In case a pass-throughtype of master lease agreement is executed for any of the Assets to be Acquired, sum total of refundable deposits as described in the individual
lease agreements with respective (end) tenants is calculated to be shown in the column.
In cases where building construction is not completed as of May 31, 2023, it is written as “－”.
(d)Explanation on “Special notations”

Special notation column: Herein is shown a description not only on the items considered material in relation to the involved rights andassumed uses but also the other items considered material in relation to appraisal value of, profitability of, and disposability of the Assets to be
Acquired and Asset to be Transferred..
(e)

Explanation on “Summary of real estate appraisal report”

a. “Summary of real estate appraisal report” column: Herein is shown a summary of respective appraisal report, which was prepared either byJapan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd for the Assets to be Acquired and Asset to be Transferred. If there are multiple
discount rate, the discount rate the appraiser adopted taking the current operating status into consideration is stated.
b. “Appraisal value” column: Herein is shown only the opinions on the value of respective property as of the date of appraisal, expressed by theappraiser who did the appraisal of the property, in accordance with the Act on Real Estate Appraisal (Act No.152 of 1963; including its
amendments) and commonly accepted appraisal standards for real estate properties, etc.
c. In case appraisal is once again undertaken for the same property, its result could be different from the previous result because appraiser
and/ or appraisal method and/ or appraisal timing is different. Also, it is requested to note that any appraisal result for any property is not what
guarantees or promises the actual tradability of the property at the appraised value whether for right now or for any moment in the future.
d. None of Japan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd who conducted appraisal is an interested party of neither SAR nor
the Asset Manager.
e. In cases where the building is not yet completed as of the date of this document, the "Appraisal of Uncompleted Buildings, etc.," which cameinto effect on November 1, 2014 (partially amended on May 1, 2014) in the Real Estate Appraisal Standards established by the Ministry of Land,
Infrastructure, Transport and Tourism, has been conducted.
(f)Explanation on “Property Features/ Key Points of Evaluation”

The basic characteristics, features, etc. of the property are described based on the Asset Manager's own investigation, in reference to realestate appraisal reports and market reports, etc.

This is an English translation of the announcement in Japanese dated August 7, 2023. However, no assurance
or warranties are given for the completeness or accuracy of this English translation.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared
for the purpose of announcing to the public certain matters relating to the acquisition and lease contract with new tenants, and transfer,of real estate beneficiary interests in trust, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally,
this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned acquisitions. This press release is not for publication, distribution or release, directly or indirectlyin or into the United States of America.

66