March 17, 2017
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: Toru Sugihara
Director and CFO
TEL: 03-5425-1340

Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trustand Lease Contract with New TenantsStar Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment Corporation(“SAR”) entrusts the management of its assets, announces today its decision to acquire and lease real estate
beneficiary interests in trust of the following six real estate properties (the “Assets to be Acquired” and theentire transaction to acquire and lease these beneficiary interests is referred to as the “Transactions”).

1.

Overview of the Transactions

Property no.

Type(Note 1)

Property nameLocation

PlannedAcquisition price(mn yen) (Note 2)
2,286

Office

OFC-09Hakata-eki East Place

Residence

RSC-07

Urban Park Kashiwa

Hakata-ku, Fukuoka-shi,
Fukuoka
Kashiwa-shi, Chiba

Logistics

LGC-04

Baraki Logistics

Ichikawa-shi, Chiba

Logistics

LGC-05Tokorozawa Logistics

Tokorozawa-shi, Saitama

1,300

Hotel

HTL-03

Edogawa-ku, Tokyo

3,827

Hotel

HTL-04

BEST WESTERNTokyo Nishikasai
BEST WESTERN
Yokohama
Total (6 properties)

Tsurumi-ku,
Yokohama-shi, Kanagawa

3,248

Note:

1,186
4,700 (Note 3)

16,547This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

1

(Note 1) As for “Property no” please refer to “3. Description of Assets to be Acquired and Leased” below, for “Property no.”(Note 2) “Planned acquisition price” indicates the sale and purchase price stated in the sale and purchase agreement for theassets to be acquired, rounded to the nearest million yen. The sale and purchase price does not include
consumption tax, local consumption tax and various expenses required for the acquisition.
(Note 3) As to Baraki Logistics, in addition to the acquisition of 73% quasi-co-ownership (planned acquisition price was 3,431
million yen) announced in the “Notice Concerning Acquisition and Transfer of Real Estate Beneficiary Interests inTrust” dated February 28, 2017, the Asset Manager decided today to acquire the remaining quasi-co-ownership of
27% (planned acquisition price is 1,269 million yen) from the Sponsor Group effective on April 6, 2017. The totalacquisition price for the entire property is shown in this table. The Sponsor Group comprises Star Asia Management
Limited, Star Asia Asset Management LLC, Star Asia Management Japan Limited, Star Asia Group LLC, Malcolm F.
MacLean IV, Taro Masuyama, as well as investment vehicles invested by funds under management of Malcolm F.
MacLean IV and Taro Masuyama (excluding minority interests) which (a) are located in Japan to own or acquire realestates or other investment assets and (b) own or acquire the investment units of SAR. Same does apply
hereunder.

(1) Contract date(2) Planned acquisition date(3) Sellers(4) Acquisition financing(5) Settlement method
2.

: March 17, 2017
: April 6, 2017 (delivery and settlement date): Please refer to “4. Seller Profile” later in this document.
: Proceeds from the issuance of new investment units through public
offering (Primary offering) for which resolution was made at the Boardof Directors meeting of SAR held on March 17, 2017, new borrowings to
be planed and cash on hand.
: Payment of entire amount on planned acquisition dateReason for the Acquisition and Leasing
SAR holds the investment policy of “prioritized focused investment in the Tokyo metropolitan area,”“continue income stability and growth through diversification of asset types,” and “investment primarily in
middle-sized assets.” In line with this policy, SAR is aiming to realize a steady growth as a diversified REIT.
Through the Transactions, SAR aims to expand the asset size and strengthen the quality of the portfolio as
well as to ensure the stability and growth in medium to long-term profitability. Shown below are key
reasons for the investment decision for each of the selected properties.
Furthermore, SAR judges that the lessees of the assets to be acquired satisfy the criteria for the selection oftenants stated in the “Report on the Management Structure and System of the Issuer of Real Estate
Investment Trust Units and Related Parties” set by the Asset Manager on October 31, 2016.
[Office](1) Hakata-eki East Place
Hakata-eki East Place is a multi-tenant office building, approx. 10-minute walk from Hakata Station of
the JR line and Fukuoka City Subway Airport lines. The area nearby Hakata Station has a feature of highconcentration of office buildings and hotels, and it is expected to increasingly grow as a place of

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

2commercial facilities and office space, in part encouraged by the redevelopment plans for the area.
Additionally, there are some other triggers to further vitalize the economy in the Fukuoka (Hakata)area: i.e., kick-off of “Tenjin Big Bang Project”; extension of Fukuoka City Subway lines, etc.
In terms of the physical features, the properties entrance hall and other common space were renovatedby the Sponsor Group, which enhanced the sophistication of the office building. Also, in the property,
it is allowed to have the floor space divided to smaller lots. Thanks to this, it could accommodate avariety of corporate needs like housing a branch office of a company.
As a result of comprehensive consideration on the characteristics of the location and property, SAR
decided to acquire the property by exerting the preferential negotiation rights acquired from theSponsor Group after determining that the acquisition will contribute to the stability of medium- tolong-term revenue and enhancement of the stability and growth of the portfolio revenue as revenue
growth through rent raise, etc. is expected as the property’s level of current is low rent compared tothe market.
[Residence](2) Urban Park Kashiwa
Urban Park Kashiwa is a family type residential property, approx. 6-minute walk from Kashiwa Stationof the JR Joban Line and the Tobu Noda Line. Kashiwa, where the property is located, is a famous
commuter town in Chiba, with a good access to Central Tokyo. Large commercial facilities areconcentrated in front of Kashiwa Station, which ensures high convenience of living. Kashiwa-shi also
shares the characteristics as a town for education, while keeping rich nature reserves. Thus, the area
has a high appeal to family households. Moreover, with completion of various redevelopment plans
near from Kashiwa Station, so SAR could expect further dynamic growth in the area in the medium tolong-term perspective.
In terms of the physical features, the property sheds high-grade sense due to the tiled façade of thebuilding as well as to the range of internal facilities partially renovated by the Sponsor Group, so SAR
believes that the property appeals to family households, which is the main target of the property.
SAR decided to acquire the property by exerting the preferential negotiation rights acquired from theSponsor Group after determining that the acquisition would contribute to the stability of medium- tolong-term revenue and enhancement of the stability of the portfolio revenue as a result ofcomprehensive consideration on the characteristics of the location and property.
[Logistics](3) Baraki Logistics
Baraki Logistics is a suburban logistics complex, within a radius of 30km from Tokyo Station. It is
located close to Wangan-Ichikawa IC of the Higashi Kantō Expressway (the ”Tokando”). It has an
excellent access to Central Tokyo as well as to both Haneda and Narita Airports, so it could handle
airway logistics requirements too. The property appeals potential tenants for its employees’
convenience for being located within walking distance from the nearest station.
In terms of the physical features, the property is still new, built in August 2015, with highly versatile
specifications: spacious berth for accessing vehicles; one elevator for operators and two elevators forcargoes facilitating smooth loading and unloading; and floor-to-floor inner space height of 6.5m and
Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

3inter-pillar span of approx. 9m - 11m quite versatile for various applications.
SAR decided to acquire the property by exerting the preferential negotiation rights acquired from theSponsor Group after determining that the acquisition will contribute to the stability of medium- tolong-term revenue and enhancement of the quality and stability of the portfolio revenues as a result ofcomprehensive consideration on the characteristics of the location and property.
(4) Tokorozawa Logistics
Tokorozawa Logistics is a suburban logistics complex cum a warehouse specifically forsmall-to-medium sized logistics tenants in logistics business (“small-to-medium sized logistics facilities,etc.”), within a radius of just about 30km from Tokyo Station. It is located approx. 8.7km north-west
from Tokorozawa IC of the Kan-Etsu Expressway. Because of its easy connection with the Kan-Etsu
Expressway the property has good and wide access to Central Tokyo, and the full completion ofTokyo gaikan Expressway (“the Gaikan Expressway”) and the Metropolitan Inter-City Expressway(“theKenoudo Expressway”), enables the property to cover other major consumption markets in the Tokyo
metropolitan area.
As for small-to-medium sized logistics facilities, etc. like this property, it is noteworthy that they areusually located at adjacent sites of larger scale logistics facilities, where major 3PL companies andmajor shippers are housed, as supplementary facilities to such larger hubs, and that they are also
rented as the outpost sites for last one mile delivery for ensuring timely shipment to consumers, which
is necessitated by the rising demands created by E-commerce on an expanding trend. Operators are
increasingly busier in site location for such facilities to ensure timely last one mile delivery, in the areas
surrounding major consumption markets in the Tokyo metropolitan area.
SAR decided to acquire the property by exerting the preferential negotiation rights acquired from theSponsor Group after determining that the acquisition will contribute to the stability of medium- tolong-term revenue and enhancement of the stability of the portfolio revenue as a result ofcomprehensive consideration on the characteristics of the location and property.
[Hotel](5) BEST WESTERN Tokyo Nishikasai
BEST WESTERN Tokyo Nishikasai is a business hotel, approx. 2-minute walk from Nishi-kasai Station ofTokyo Metro Tozai Line. Because of the location in Nishi-kasai, it could meet not only the needs ofbusinessmen mainly of the companies located along Tozai Line but also the needs of those who spend
leisure time at Tokyo Disney Resort (“TDR”), as the property is close from TDR (approx. 4km in astraight line).
In terms of the physical features, the property offers a variety of rooms meeting the needs of lodgers(single, double, twin, etc.). Also, the hotel has a restaurant and some multi-purpose rooms for party,
conference, seminar or the like. Thus, it has a high appeal to a wide range of people.
As a result of comprehensive consideration on the characteristics of the location and property, SAR
decided to acquire the property by exerting the preferential negotiation rights acquired from theSponsor Group after determining that the acquisition will contribute to the stability of medium- tolong-term revenue and that revenue growth can be expected due to sales-based rent income, and
Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

4thereby contribute to enhancement of the stability and growth of the portfolio revenue(6) BEST WESTERN Yokohama
BEST WESTERN Yokohama is a business hotel, approx. 4-minute walk from Tsurumi Station of the JR
Keihin Tohoku Line and approx. 3-minute walk from Keikyu Tsurumi Station of the Keihin Kyuko Line. It
has good access to the value tourist sites and major business centers in Kanagawa (Yokohama,
Kawasaki, etc.) as well as to Haneda Airport. Thus, the property is expected to absorb a wide scope of
lodging needs in the area: i.e., businessmen’s needs of the companies whose head office or important
office is located therein; leisure needs primarily relating to the major tourist sites in the area; and MICE
(Meeting, Incentive, Convention & Exhibition) needs relating to international conferences and the likeheld in Yokohama-shi.
In terms of the physical features, the property offers a variety of rooms meeting the needs of lodgers(single, double, twin, etc.). Also, the hotel has a restaurant and some multi-purpose rooms for party,
conference, seminar or the like. Thus, it has a high appeal to a wide range of people.
As a result of comprehensive consideration on the characteristics of the location and property, SAR
decided to acquire the property be exerting the preferential negotiation rights acquired from theSponsor Group after determining that the acquisition will contribute to the stability of medium- tolong-term revenue and that revenue growth can be expected due to sales-based rent income, andthereby contribute to enhancement of the stability and growth of the portfolio revenue.
3.

Description of Assets to be Acquired and Leased

Please refer to Table (1) – Table (6) below, for the detail of each of the assets to be acquired. For the terms used in the tables,
please refer to below.
a. Explanation on “Property no.” and “Type”
Property Number column and Type column: Each asset to be acquired is categorized by use as OFC (office), RSC(residential), 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 fromwhich the property generates the largest sum of assumed rent income.
b. Explanation on “Overview of specified asset”
・Planned acquisition price column: Herein is shown the acquisition price as described in purchase agreement for eachof the Assets to be Acquired (excluding consumption taxes, local consumption taxes, and expenses necessary for theacquisition) after rounded to the nearest million yen.
・Planned Acquisition Date column: Herein is shown the planned MMDDYY of acquisition by SAR.
・Location column: Herein is shown the certified address in registry.
・Address column: Herein is shown the postal address. If postal address is not available, registered address of theproperty (if there are two or more of them, one is selected) is shown.
・Land column:(ⅰ) Type of ownership column: Herein is shown the type of right(s) held by respective trustee for each of theassets to be acquired.
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

5

(ⅱ) Land area column: Herein is shown the land area as recorded in registry. It possibly might not be equal to theactual.
(ⅲ)use district: Herein is shown the type of use in accordance with Article 8 , paragraph 1, item 1 of the Urban
Planning Act (Act No.100 of 1968; including its amendments).
(ⅳ) Building coverage ratio column and Floor Area Ratio column: Herein is shown the pertinent figure in eachcolumn in accordance with the relevant laws and regulations (the Building Standards Act, the Urban Planning Act,etc.).
・Building column :(ⅰ) Type of ownership column: Herein is shown the type of right(s) held by respective trustee for each of theassets to be acquired.
(ⅱ) Total floor area column: Herein is shown the sum total of floor areas as recorded in registry. It possibly might
not be equal to the actual figure.
(ⅲ) Use column: Herein is shown the registered use or , if multiple uses are registered the representative use fromwhat are recorded in registry, it possibly might not be equal to the actual representative use.
(ⅳ) Construction completion column: Herein is shown MMDDYY of the representative building first built asrecorded in registry.
(ⅴ) Structure and floors column: Herein is shown the structure of the representative building, etc. as recorded inregistry. It possibly might not be equal to the actual structure.
・Property management Company column: Herein is shown the name of the property management company (“PMCompany”), to which property management operation is planned to be entrusted.
・Master lease company column: Herein is shown the name of the master lease company, to which master lease
operation is planned to be entrusted.
c. Explanation on “Status of leasing”
・Total leasable area column: Herein is shown the sum total of leasable floor areas of buildings for each of the assets
to be acquired (in case common space is also leased, area of that space is included in the total). The figure does notinclude the area of the land lots leasable for parking and other purposes. Leasable area is counted not from registrydata but from area data as described in lease agreements 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 notethat the source data for the column represent what were provided by the current owner(s) of each of the assets to beacquired as of the end of January 2017.
・Total leased area column: Herein is shown the sum total of the floor areas to be leased as described in leaseagreement for each of the assets to be acquired as of the end of January 2017 out of the leasable area. The figure
does not include the area of the land lots 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 each of the assets to be acquired as ofthe end of January 2017.
・Occupancy rate column: Herein is shown the percentage of total floor area leased over the total leasable floor areafor each of the assets to be acquired, after rounded to the first decimal place. Please note that the source data forthe column represent what were provided by the current owner(s) of each of the assets to be acquired as of the endof January 2017.
・Total number of tenants column: Herein is shown the total number of tenants as confirmed with the leaseagreements effective as of the end of January 2017 for each of the assets to be acquired. In case a specific tenant
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

6

uses two or more rooms in one of the assets to be acquired, such tenant is counted only once for the asset. Also, incase 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 is executed for any of the assets to beacquired, total number of the actual tenants under the master lease agreement for the asset is shown herein.
・Monthly rent (including deposits. common area maintenance fee ) column: Herein is shown the sum total of rent
amounts as described in lease agreements with respective tenants as of the end of January 2017 (confined to room
rents; excluding the charges for warehouses, sign boards and parking lots; but including the common service
expenses; and free rent cases as of the same date are not considered).
・Refundable deposit column: Herein is shown the sum total of refundable deposits as required in lease agreements
effective as of the end of January 2017 (only for the tenants who actually were in respective rooms at the time) for
each of the assets to be acquired. In case 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 tenants is calculated
to be shown in the column.
d. Explanation on “Special notations”
・Special notation

column: Herein is shown a description not only on the items considered material in relation to theinvolved rights and assumed uses but also on the appraisal value of, profitability of , and the other items consideredmaterial in relation to the disposability of each of the assets to be acquired.
e. Explanation on “Summary of appraisals”
・Summary of real estate appraisal report column: Herein is shown a summary of respective appraisal report, which
was prepared either by Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute, or The Tanizawa Sogo
Appraisal Co., Ltd. for each of the assets to be acquired.
・Appraisal value column: Herein is shown only the opinions on the value of respective property as of the date ofappraisal, expressed by the appraiser who did the appraisal of the property, in accordance with the Act on Real EstateAppraisal (Act No.152 of 1963; including its amendments) and commonly accepted appraisal standards for real estate
properties, etc.
・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 notethat 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.
・Any one of Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute, or The Tanizawa Sogo Appraisal Co., Ltd.
who conducted appraisal is an interested party of neither SAR nor the Asset Manager.
f.

Explanation on “Property information and acquisition highlight based on the survey by the Asset Manager”
Herein is shown a description on the basic features and characteristics of each of the assets to be acquired as
prepared by the Asset Manager from the appraisal report, market reports and from their own research, as well as a
description on the background of its acquisition (if it is an acquisition from Star Asia Group, background story on theacquisition from the group is described; and if it is an acquisition from the Asset Manager’s own origination,
background story on the sourcing is described).

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

7

g.

Explanation on “Demographic analysis etc., market analysis and independent analysis by the Asset Manager”
Herein is shown the result of the Asset Manager’s own market analysis based on the information from various realestate-specialized information providers and other publicly available information.

h. Explanation on “Comprehensive evaluation by SAR”
Herein is shown SAR’s independent comprehensive evaluation based on f. and g. above.

(1) OFC-09 Hakata-eki East Place
Property
Property
OFC-09Hakata-eki East Place
no.
nameOverview of specified asset
Beneficiary interest in
Type of specified asset
Trusteetrust
Planned Acquisition
Planned Acquisition price
2,286 million yen
Date
Appraisal value
2,370 million yen
SellerLocation
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage ratio
Type of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany
Status of leasing

Type

OfficeSumitomo Mitsui Trust Bank, Limited
April 6, 2017
GK Seahorse

3-15-2 Hakata-eki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka and other
3-1-26 Hakata-eki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka
Approx. 10-minute walk from Hakata Station on the JR and Fukuoka City Subway lines
Proprietary ownership
1,129.86m2

Use district

Commercial district

80%

Floor area ratio

500%(Note 1)

6,243.13m2(including 94.00m2 ofparking)

Use

OfficeFebruary 24, 1986

Structure and floors

Steel-framed reinforced concrete structure
9 floors above ground

Fukuoka Jisho Co.,Ltd.

Master lease company

SAR

Proprietary ownership

Total leasable area

4,632.70m2

Total leased area

4,257.85m2

Occupancy rate

91.9%

Total number oftenants
Monthly rent(including common
area maintenance fee)
Security andguarantee deposits

17
11,931 thousand yen
51,590,227 yen

Special notation
Not applicable.
(Note 1) The property is located across areas of different permitted floor area ratio (600% / 500%). Weighted average
permitted floor area ratio is 561.3%.

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

8

Summary of appraisal report(unit:yen)Summary of real estate appraisal report
Hakata-eki East Place

Property nameAppraisal value
Appraisal firm

2,370,000,000
Daiwa Real Estate Appraisal Co., Ltd.

Date of value
Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Operating revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses
Repair expenses
Property Management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on
deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))

February 1, 2017
Details
Description, etc.
Estimated by emphasizing the indicated value by DCF method
2,370,000,000 and verifying with the indicated value by direct capitalization
method.
2,400,000,000
173,695,177
187,086,104
Recorded by taking into consideration the average vacancy
13,390,927 rate in the area, and competitiveness of the subject realestate, etc.
55,260,154
Appraised by reference to the level of similar real estate and12,304,400 historical data.
15,974,000 Appraised based on historical data and occupancy rate.
6,385,000 Appraised based on the ER
3,912,324 Appraised by reference to the level of similar real estate.
rent for 1.0 month from new tenants by reference
837,848 Recorded
to the level of similar real estate.
13,848,582 Appraised based on actual data.
1,325,000 Appraised by reference to the level of similar real estate.
673,000 Appraised based on actual data.
118,435,023
455,189 Appraised investment return as 1.0%.
1,450,725 Appraised based on the ER.
117,439,487

by comprehensively taking into account the
4.9% Appraisedcompetitiveness of the subject real estate, etc.
Indicated value by DCF method
2,360,000,000
by comprehensively taking into account the
Discount rate
4.7% Appraisedcompetitiveness of the subject real estate, etc.
Terminal capitalization rate
5.1% Appraised by reflecting aging risk, market trend risk, etc.
by making depreciation adjustment to
Indicated value by cost approach
2,010,000,000 Estimatedreplacement cost.
Ratio of land
79.4%
Ratio of building
20.6%
Determined using the indicated value by income approach as
Matters considered in reconciliation of indicated values
standard and by reference to the indicated value by costand determination of appraisal value
approach.
(7) Capitalization rate

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

9

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information-

Hakata-eki East Place is a multi-tenant office building located to the east of Hakata Station of the JR and Fukuoka City
Subway Airport lines (approx. 10-minute walk from the station), at an area of high concentration of offices in Fukuoka
City.

-

The property is located near Hakata Station, which has a high concentration of offices and hotels in the area. Withvarious redevelopment plans near from the station, it is expected the area would increasingly grow as a place ofcommercial facilities and office space.

-Its entrance hall and part of other common space were renovated in 2015, which enhanced the sophistication of theoffice building. Various facilities and services available at the property should satisfy the standards necessary for generaltenants. It should be able to accommodate the needs of corporate tenants of various industries.

(2) Acquisition highlight-

The property, which is owned by the Sponsor Group through an acquisition executed in a form of a negotiatedtransaction using the wide range of business relations, will be acquired by exercising the preferential negotiation rightsthat SAR has obtained from the Sponsor Group.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

10Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
Hakata-ku, Fukuoka-shi keeps significantly growing in population and number of households. It is expected the area
would keep growing steadily in population from now on too.
Though there was a temporary decrease in terms of number of offices and number of employees in 2012, both figures
showed a recovery in 2014 and have kept increasing since then.
In terms of the share of youth (aged 15-29) in population 19.5%, the area is ranked as the first among theordinance-designated cities in Japan. This high labor population ratio would contribute to a sustained vitalization of theeconomy in Fukuoka-shi.
Hakata-ku, Fukuoka-shi

Hakata-ku, Fukuoka-shi– Business establishments / Employees– Population / Households*Source: Fukuoka City *Source: Statistics Bureau,Ministry of Internal Affairsand Communication “Economic Census for Business Frame”*Youth is aged 15-29.
*Source: The 2010 Population Census(2) Market analysis
Overall rent kept shifting stable until it turned to be increasing trend in the first half of 2014, as shown in the below
figure of transition of rent index. It is expected the area’s overall rent would continue to be at around the current levelor to be on an extended recovery trend, by virtue of the redevelopment plans in front of Hakata Station.
Also as shown in the below figure of transition of vacancy rate, it has shown a declining trend since the first half of 2014.
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

11Specifically, it has continued to be around 1% since the first half of 2015. The Asset Manager believes that such stabledemands for office space would be maintained in the area in front of Hakata Station from now.

*Made by Japan Real Estate Institute based on the data disclosed by J-REIT(Fukuoka-shi, aged from 21 – 35, offices with total floor area from 1,500 tsubo to 5,000 tsubo)(3) Independent analysis by the Asset Manager-

KITTE Hakata and JRJP Hakata Building are the representative buildings in front of Hakata Station, as created throughredevelopment plans. Both of them were opened in the spring of 2016. There are high expectations to further
vitalization of the area thanks to the openings.

-

Moreover, it is expected the Tenjin area would be vitalized for following reasons: “Tenjin Big Bang Project” started per
the scheme of “National Strategic Special Zone for Global Startups & Job Creation”; obstacle limitation sufaces based on
the Civil Aeronautics Act has been alleviated in the district of Tenjin Meiji Street; and the extension of both the
Nanakuma Subway Line and the Tenjin Line. Also, when a new airstrip will have been added to Fukuoka Airport and the
project of increase in number of cruise ships accessing Hakata Port will have been realized under the initiative of MLIT,
various inbound demands would further surge, and the economy in Fukuoka-shi would be really vitalized, so
contemplated by the Asset Manager.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

12*Source: Prepared by the Asset Manager based on Nishinippon Shimbun*Source: Fukuoka City

Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. in the future.
(1) The property is located in the Hakata Station East area, which has a high concentration of offices and become more
popular after the completion of redevelopment projects in front of the station.
(2) Its entrance hall and other common space were renovated, which enhanced the sophistication of the office building. Also,in the property, it is allowed to have the floor space divided to smaller lots: because of this, it is expected to satisfy avariety of corporate needs such as housing a branch office of a company.
(3) Further triggered by the start of “Tenjin Big Bang Project” and the extension of some Fukuoka City Subway lines, it isexpected the Fukuoka (Hakata) area would be much more vitalized.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

13(2) RSC-07 Urban Park Kashiwa
Property
Property
RSC-07
no.
nameOverview of specified asset

Urban Park Kashiwa

Type of specified asset

Beneficiary interest in trust

TrusteePlanned Acquisition price

1,186 million yen

Appraisal value

1,190 million yen

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floorarea

3-808-1 Kashiwa, Kashiwa-shi, Chiba and other

Planned Acquisition
Date
SellerType

Residence

Mitsubishi UFJ Trust and Banking
Corporation
April 6, 2017
GK SAPR4

3-10-13 Kashiwa, Kashiwa-shi, Chiba
Approx. 6-minute walk from the JR Kashiwa Station on the Joban Line
Proprietary ownership
1,597.85m2

Use district

Neighborhood commercial district

80%

Floor area ratio

300%

Use

Apartment house

August 28, 1997

Structure and floors

Steel-framed reinforced concrete
structure
1 floor below ground / 8 floors above
groundProperty managementcompany
Status of leasing

ITOCHU Urban
Community co., Ltd.

Master lease
company

ITOCHU Urban Community co., Ltd.

Total leasable area

2,954.77m2

Total leased area

2,532.07m2

Occupancy rate

85.7%

Total number oftenants
Monthly rent(including common
area maintenance
fee)
Security andguarantee deposits

Construction
completion

Proprietary ownership
4,243.71m2

36
4,680 thousand yen
5,922,890 yen

Special notation
Not applicable.
(Note ) SAR has requested the sponsor for warehousing for the property, which is owned by GK SAPR4 in SAR Group as of thedate of this document. No additional compensation is paid to such request for warehousing.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

14

Summary of appraisal report(unit:yen)Summary of real estate appraisal report
Urban Park Kashiwa

Property nameAppraisal value
Appraisal firm

1,190,000,000
The Tanizawa Sogo Appraisal Co., Ltd.

Date of value
Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Operating revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses
Repair expenses
Property Management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on
deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method
Discount rate
Terminal capitalization rate
Indicated value by cost approach
Ratio of land
Ratio of building

February 1, 2017
Description, etc.
Estimated by using the indicated value by DCF method as
1,190,000,000 standard and verifying with the indicated value by direct
capitalization method.
1,220,000,000
Details

78,222,163 Appraised by reference to the actual data, etc.
83,438,541
5,216,378
17,403,354
2,340,178 Recorded based on property management contract.
1,241,003 Appraised based on income of similar cases.
3,659,544 Appraised based on the ER and similar cases.
1,564,443 Recorded based on property management contract.
2,141,942
5,919,800 Appraised by reference to the actual data.
380,000 Estimated based on standard rate.
156,444 Recorded based on income of similar cases.
60,818,809
115,835 Appraised investment return as 1.0%.
3,800,000 Appraised based on the ER and similar cases.
57,134,644
Appraised by comparing with cap rate of similar real estate
4.7% and by reference to uncertainty of forecasting future net
profit.
1,180,000,000
by comprehensively taking into account risks of
4.8% Appraised
the subject real estate.
by reflecting the capitalization rate and4.9% Appraised
uncertainty of future prediction.
by making depreciation adjustment to
1,170,000,000 Estimatedreplacement cost of the subject real estate.
52.8%
47.2%

Matters considered in reconciliation of indicated values
and determination of appraisal value

Note:

Determined by using the indicated value by income approachas standard and by verifying with the indicated value by cost
approach.

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

15

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information-

Urban Park Kashiwa is a family type residential property, approx. 6-minute walk from Kashiwa Station of the JR Joban
Line and Tobu Noda Line.

-

Kashiwa, where the property is located, is a famous bedroom community area in Chiba, with a good access of approx. 30
minutes by train (Note) to Central Tokyo. In the area near from Kashiwa Station, people could enjoy high convenience ofliving, with a concentration of large commercial facilities like “Takashimaya Kashiwa Store”. The area also shares thecharacteristics as a town for education centering on the area of “Kashiwanoha Campus Station”, while keeping richnature reserves. Thus, the area has a high appeal to family households.

-

The property sheds high-grade sense due to the tiled façade of the building as well as to the range of internal facilities
partially renovated this time. So it should have enough appeal to family households, or the main target for the property.
(Note) Approximate time to reach the JR Tokyo Station from the JR Kashiwa Station (when the limited express of the JR
Joban Line is used)(2) Acquisition highlight-

The property will be acquired through a negotiated transaction by using property information obtained from a unique
network of the Asset Manager (utilizing the warehousing function of the Sponsor Group).

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

16

Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
Population / Households
Kashiwa-shi, Chiba keeps growing in both population and number of households in a steady manner. Forecast of
population and number of households also shows a sustained trend of increase up to 2030. Therefore, it is expected the
population and number of households in Kashiwa-shi will keep steadily growing in future.

*Source: Kashiwa City
将来推計人口・世帯数の見通し*Source: Kashiwa City-

Number of passengers using the nearest station
Average number of passengers using Kashiwa Station of the JR Joban Line (nearest station) a day has kept showing an
increasing trend since 2012, backed by the growing population in the area.

*Source: JR East Japan Railway Company

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

17

(2) Market analysis
Overall rent has kept hovering at around the same level in a stable manner since the second half of 2011, as shown in the
below figure of transition of rent index.
Also as shown in the below figure, vacancy rate has shown a declining trend since the first half of 2014. Specifically, it hascontinued to be around 3% since the second half of 2015. This indicates robust and stable demands for rental housing in
Kashiwa-shi.

*Made by Japan Real Estate Institute based on the data disclosed by J-REIT(based on family type residence of Kashiwa-shi, Funabashi-shi, Urayasu-shi, Ichikawa-shi, Matsudo-shi)(3) Independent analysis by the Asset Manager-

Urban redevelopment projects have been completed at four sites in the vicinity of Kashiwa Station, including the
Kashiwa Station East area (SOGO Kashiwa) project (イ). Currently, the D block 1st district of Kashiwa Station East Exit
redevelopment project is under way.

*Source: Kashiwa City

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

18

-

The Kashiwa Station East area is where the “regional redevelopment plan” has been enacted in 1988. In line with that,the entire townscape will be transformed to a wide area commercial hub, through enhancement of the migratory
efficiency of the town by improving four of the main roads that are key for the city planning, as well as through renewalof the retail store streets. Thus, it is expected the surrounding area would evolve to a further vitalized commerce center,
representative of Chiba.

*Source: Kashiwa City

Comprehensive evaluation by SAR: Evaluation of income stability
For the following reasons, SAR believes the property can gain stable revenue over the medium to long- term .
(1) It is located in the Kashiwa area, a typical bed town in Chiba, with an excellent access to Central Tokyo.
(2) The property has a sophisticated façade and is equipped with high quality residential facilities.
(3) Medium to long-term growth is expectable in the area surrounding Kashiwa Station, with completion of various
redevelopment plans near from Kashiwa Station.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

19

(3) LGC-04 Baraki Logistics
Property
Property
LGC-04
no.
nameOverview of specified asset

Baraki Logistics

Type

Type of specified asset

Beneficiary interest in trust

Planned Acquisition price

4,700 million yen

Appraisal value

4,860 million yen

Location
Indication of residential
address
Nearest IC
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floorarea

2526-42 Baraki, Ichikawa-shi, Chiba and otherConstruction
completion
Property managementcompany
Status of leasing

TrusteePlanned Acquisition
Date
Seller

Logistics

Mitsubishi UFJ Trust and Banking
Corporation
April 6, 2017(Note 1)
GK Enterprise

The Wangan Ichikawa IC of The East Kantō Expressway
Proprietary ownership
6,242.76m2 (Note 2)

Use district

Quasi-Industrial District

60%

Floor area ratio

200%

12,471.50m2

Use

Warehouse

August 14, 2015

Structure and floors

Steel-framed reinforced concrete
structure with galvanized alloy steel
sheet roofing 5 floors above ground

CRE, Inc.

Master lease
company-

Proprietary ownership

Total leasable area

12,185.78m2

Total leased area

Not disclosed(Note 3)

Occupancy rate

100.0%

Total number oftenants
Monthly rent(including common
area maintenance
fee)
Security andguarantee deposits2
Not disclosed(Note 3)
Not disclosed(Note 3)

Special notation
Not applicable.
(Note 1) SAR, which is the purchaser, entered into agreement with GK Enterprise which is the seller, on February 28, 2017,
whereby to acquire 73% of the quasi co-ownership interests of the real estate beneficiary interests in trust of “Baraki
Logistics” by the end of April 2017. Concerning the remaining 27%, GK SAPR2 which is the purchaser, entered into
agreement with GK Enterprise which is the seller, on February 28, 2017, whereby to acquire the rest portion by theend of April 2017. SAR is expected to succeed to the right and obligations arising from this agreement with theplanned assignment of contract from GK SARP2 to SAR as of March 17, 2017. In addition, SAR is planning to acquire
the all the quasi-co-ownership interests of the Property on April 6, 2017. The table above shows the information
concerning one block of building.
(Note 2) In addition to the sole-ownership space of 6,240.96m2, SAR is planning to acquire 8.116% of the joint ownershipspace of 11.818.84m2(Note 3) The information is undisclosed as consent to disclosure has not been obtained from end tenants.
(Note 4) For the purpose of railway construction, the superficies (free rent) are established by JRTT (Japan Railway
Construction, Transport and Technology Agency) over the 18 parcels of land of the Property on which facilities are
Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

20

not established, i.e. 66.17m2 of 3 parcels under sole-ownership, plus 661.61m2 calculated by multiplying 15 parcels
under joint ownership by the ratio specified above

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

21

Summary of appraisal report(unit:yen)Summary of real estate appraisal report
Baraki Logistics

Property nameAppraisal value
Appraisal firm

4,860,000,000
The Tanizawa Sogo Appraisal Co., Ltd.

Date of value
Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Operating revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses
Repair expenses

February 1, 2017
Description, etc.
Estimated by using the indicated value by DCF method as
4,860,000,000 standard and verifying with the indicated value by direct
capitalization method.
4,970,000,000
Details

259,444,821 Appraised by reference to the actual data, etc.
259,444,821
0
48,906,038
5,995,404 Recorded based on property management contract.
13,891,789 Appraised based on income of similar cases.
1,130,000 Appraised based on the ER and the similarcases.

Property Management fee
Tenant leasing cost, etc.

2,400,000 Recorded based on property management contract.
0

Property taxes
Insurance premium

20,878,400 Appraised by reference to the actual data.
565,000 Estimated based on standard rate.

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on
deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method
Discount rate
Terminal capitalization rate
Indicated value by cost approach
Ratio of land
Ratio of building

4,045,445 Recorded annual fees of management association etc.
210,538,783
603,876 Appraised investment return as 1.0%.
2,260,000 Appraised based on the ER and the similar cases.
208,882,659
Appraised by comparing with cap rate of similar real estate
4.2% and by reference to uncertainty of forecasting future net
profit.
4,810,000,000
by comprehensively taking into account risks of the
4.1% Appraised
subject real estate.4.3% after 5 years.
by reflecting indicated value by direct capitalization
4.4% Appraised
rate and uncertainty of future prediction.
by making depreciation adjustment to replacement
4,810,000,000 Estimated
cost.
69.6%
30.4%

Matters considered in reconciliation of indicated values
and determination of appraisal value

Note:

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

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

22

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information-

The Property is a multi-tenant logistics facility located near the Wangan Ichikawa IC of the East Kantō Expressway, or
around 1.6km to the south of the “Baraki” IC of the Keiyō Road.

-

Linking straightly to the East Kantō Expressway, the Property enjoys good access to central Tokyo as well as theconsumption areas throughout Chiba, allowing tenants to respond to the needs of E-commerce operators flexibly.

-

The Property is located within apporox. 5-minute walk from the Futamata-Shinmachi station on the JR Keiyo Line. The
convenience of the location will be of great help in maintaining adequate staffing.

-

It is a property with highly versatile specifications, such as loading docks of proper size, one passenger elevator, twofreight elevators, which ensure smooth loading works, as well as a floor height of approx. 6.5 m, and a pillar span ofapprox. 9.0m – 11.0m.

(2) Acquisition highlight
The property, which is owned and operated by the Sponsor Group through an acquisition executed in a form of anegotiated transaction based on the information provided by the foreign investors who are included in the wide rangeof business relations of the Sponser Group, will be acquired by exercising the preferential negotiation rights that SAR
has obtained from the Sponsor Group.

Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc. (Analyses of E-commerce and 3PL (third party logistics) markets)-

The market size of Japan’s domestic E-commerce market has been growing rapidly, with sales figures that tripled fromapprox. 4.4 trillion yen in 2006 to approx. 13.8 trillion yen in 2015.

-

The market of 3PL (third party logistics) i.e. outsourced logistics services that encompass anything that involves logistics
management of corporate clients, has also experienced a rapid growth with a 2.5 times increase of sales figures from 1
trillion yen to 2.5 trillion yen in a decade of 2005-2015. We expect these growth trends to prevail in the logistics sector
for years to come.

*Source: CBRE Inc.

Note:

*Source: CBRE Inc.

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

23

(2) Market analysis
The asking rent index of logistics properties located in Chiba (medium and large sized properties) and the Chibabay zone
had remained flat since 2009. However, since 2015, the index has been rising slightly despite of small fluctuations. As it
is estimated that the actual contracted rents have been rising similarly, the index is expected to continue to rise at asimilar, steady pace for years to come.

※出所 シービーアールイー株式会社*Source: CBRE Inc.

※出所 シービーアールイー株式会社*Source: CBRE Inc.

(3) Independent analysis by the Asset Manager-

The Property enjoys good access to central Tokyo because of its location within a radius of 30km from Tokyo station,
close from the Wangan Ichikawa IC of the East Kantō Expressway, and approx. 1.6km to the south of the Baraki IC of the
Keiyō Road. In addition, its straight link to the East Kantō Expressway offers access to the areas of Chiba and Ibaraki aswell as good access to Haneda Airport and Narita International Airport, allowing tenants to respond to the needs of air
cargo transportation.

-

The Property is located within approx. 5-minute walk from the Futamata-Shinmachi station. Futamata Shimmachi
Station on the JR Keiyo Line is a big plus of convenience that allow personnel to be easily secured.

-

The construction of the Gaikan Expressway has been going smoothly, with the section between Misato and Koya, whichis expected to be opened to traffic in 2017, offering a straight link to East Kantō Expressway that ensures much better
access to Saitama area, as well as wide coverage of consumption areas throughout Tokyo.

*Source:

Note:

Bereau Urban Development Tokyo Metropolitan Government

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

24

Comprehensive evaluation by SAR: Evaluation of income stability
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term.
(1) Chiba bay zone, where the Property is located, is an area where logistics facilities are concentrated. Along with thelocation within walking distance from the nearest station, the Property is expected to highly appeal to potential
clients in terms of adequate employee.
(2) It is a relatively new property that simultaneously features highly versatile specifications, with state-of-the-art
equipment such as loading docks of proper size, one passenger elevator, two freight elevators, which ensure smoothloading works, as well as a floor height of approx. 6.5m, and a pillar span of approx. 9.0m – 11.0m.
(3) In addition to the Tokyo metropolitan area, the location allows access to wide range of Tokyo metropolitan area.

via

the Gaikan Expressway that is expected to be opened to traffic in 2017.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

25

(4) LGC-05 Tokorozawa Logistics
Property
Property
LGC-05Tokorozawa logistics
no.
nameOverview of specified asset
Beneficiary interest in
Type of specified asset
Trusteetrust(Note 1)
Planned Acquisition
Planned Acquisition price 1,300 million yen
Date
Appraisal value
1,360 million yen
SellerLocation
Indication of residential
address
Nearest IC
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany
Status of leasing

Type

Logistics

Mitsubishi UFJ Trust and Banking
Corporation(Note 1)
April 6, 2017
Focus Co., Ltd.

735-1 Tsukimihara, Shimo-tomiaza, Oaza, Tokorozawa-shi, Saitama735-1 Shimo-tomi, Tokorozawa-shi, Saitama
Appprox. 8.7km from the Tokorozawa IC on the Kan-Etsu Expressway
Proprietary ownership
8,645.63㎡

Use district-(Urbanization control district)

60%

Floor area ratio

200%

Use

Office / Warehouse

Proprietary ownership
5,994.75m2(total)
Office: 528.00m2
Warehouse: 5,466.75m2

Office: Steel-framed galvanized steel
sheet roofing 2 floors above ground
April 30, 1999

Structure and floors
Warehouse: Steel-framed galvanizedsteel sheet roofing 2 floors above ground

CRE Inc.

Total leasable area

5,994.75m2

Total leased area

Not
disclosed(Note 2)

Occupancy rate

100.0%

Master lease
company
Total number oftenants
Monthly rent(including common
area maintenance
fee)
Security andguarantee deposits-

1
Not disclosed(Note 2)
Not disclosed(Note 2)

Special notation
Not applicable.
(Note 1) Real estate beneficiary interests in trust to be newly established on the date of planned acquisition will be acquired.
(Note 2) The information is undisclosed as consent to disclosure has not been obtained from end tenants.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

26

Summary of appraisal report(unit:yen)Summary of real estate appraisal reportTokorozawa Logistics

Property nameAppraisal value
Appraisal firm

1,360,000,000
Japan Real Estate Institute

Date of value
Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Operating revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses
Repair expenses
Property Management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))

February 1, 2017
Description, etc.
Estimated by correlation of the indicated value by direct
1,360,000,000 capitalization method and the indicated value by DCF
method.
1,370,000,000
Details

87,048,000
87,048,000
09,583,000
0 Unrecorded as tenant owes.
0 Unrecorded as tenant owes.
by reference to historical data taking into account2,452,000 Recorded
the repair and renewal expense on the ER.
by reference to the agreement terms and the
1,800,000 Appraisedlevel of similar real estate.
04,823,000 Appraised based on actual data.
508,000 Appraised by reference to the level of similar real estate.
077,465,000
1,000,000 Appraised investment return as 1.0%.
by reference to repair and renewal expenses in
5,949,000 Appraised
the ER and the level of similar real estate.
72,516,000

by comprehensively taking into account the
5.3% Appraisedcompetitiveness of the subject real estate, etc.
Indicated value by DCF method
1,350,000,000
by comprehensively taking into account the
Discount rate
4.9% Appraisedcompetitiveness of the subject real estate, etc.
Terminal capitalization rate
5.6% Appraised by reflecting aging risk, market trend risk, etc.
by multiplying the total of the land price and theIndicated value by cost approach
1,080,000,000 Estimatedbuilding price by marketability correction rate.
Ratio of land
63.3%
Ratio of building
36.7%
Determined using the indicated value by income approach
Matters considered in reconciliation of indicated values andas standard and by reference to the indicated value by cost
determination of appraisal value
approach.
(7) Capitalization rate

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

27

ｈProperty information and acquisition highlight based on the survey by the Asset Manager(1) Property information-

A multi-tenant logistics facility that is also used as a warehouse for small-to-medium sized tenants in logistics
business, located around 8.7km northwest of the Tokorozawa IC on the Kan-Etsu Expressway-

Not only having a good access to the central city area of Tokyo by changing from the Tokorozawa IC to the Kan-Etsu
Expressway, but also capable of covering a wide range of destinations for consumption in the Tokyo Metropolitan
area by opening of the Gaikan Expressway and the Metropolitan Inter-City Expressway-

Property with highly versatile specifications, including adequate space for truck berths, two EVs for cargo, a floor
height of approx. 5.5m – 6.0m, and a pillar span of approx. 9.5m

(2) Acquisition highlight
The property will be acquired through a negotiated transaction by using property information obtained from aunique network of the Asset Manager.

Demographic analysis etc., market analysis and independent analysis by the Asset Manager.
(1) Demographic analysis etc. (Analyses of E-commerce and 3PL (third party logistics) markets)
Same as Baraki Logistics(2) Market analysis
1) Vacancy rate
The trend in vacancy rates of small-to-medium sized logistics facilities that are also used as warehouses in theTokyo Metropolitan area has stayed in a range of as low as between zero and two percent as of December 2016as shown in the chart below, supported by robust demand of tenants. In“the Saitama area along the Kan-Etsu
Expressway and the Tohoku Expressway” where Tokorozawa Logistics is located, the current vacancy rate is zero.

約 45.3 万㎡※出所 株式会社シーアールイー*Source: CRE Inc.

2)

Market Conditions
In “the Saitama area along the Kan-Etsu Expressway and the Tohoku Expressway,” opening of the Gaikan
Expressway has brought about a greater access to each destination for consumption in the central city area ofTokyo and the Tokyo Metropolitan area. The area has also allowed small-to-medium sized logistics facilities, etc.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

28

to be more used as logistics hubs for transportation to inner-city areas. Having a good access to various areas as
described above, coupled with other reasons including limited new supply of small to medium distribution
centers, etc., the area will provide a greater appeal to potential tenants.

*Source: Prepared by the Asset Manager based on market reports from CRE Inc.

(3) Independent analysis by the Asset Manager
Logistics facilities serving inner-city areas, within a radius of about 30 km away from Tokyo Station, are expected toappeal to certain tenants seeking small-to-medium sized logistics facilities, etc. in addition to large sized logistics
facilities due to an easy access to each destination for consumption located in the central area of Tokyo and theTokyo Metropolitan area.
The reason behind it underlies in the fact that most tenants of small-to-medium sized logistics facilities, etc. are“vendors and wholesalers having integrated premises for accepting orders and placing merchandise backlogs” and“small-to-medium subcontract logistics companies doing subcontract logistics business” (“small-to-medium sizedtenants in logistics business” in collective term) in absolute terms, and that most of such small-to-medium sizedtenants in logistics business, leasing a space in small-to-medium sized logistics facilities, etc., are located aroundlarge sized logistics facilities where leading 3PL players and shippers are situated. Furthermore, in order to fulfill
distribution based on growing E-commerce demand on a timely manner, leasing of small-to-medium sized logistics
facilities, etc. located in the proximity of each destination for consumption in the Tokyo Metropolitan area has
increased in recent years.
Under these circumstances, in order to ensure timely distribution to meet recent E-commerce demand, there has
been increased leasing of small-to-medium sized logistics facilities, etc. to serve as “last-mile distribution bases,” in
addition to serving as “supplementary facilities of large sized logistics facilities.” This trend is expected to steadily
continue in proportion to E-commerce demand.
Moreover, leasing of a space in large sized logistics facilities by small-to-medium sized tenants in logistics businesswill be a partial lease of the floor area in most cases, resulting in not only fewer number of truck berths but also
clumsiness to use in shape. On the other hand, such tenants can not only make use of more truck berths but also
have more flexibility in using a space that is regular in shape, if they lease the whole building of small-to-medium
sized logistics facilities, etc., which are also expected to appeal to potential tenants in that sense.
Comprehensive evaluation by SAR: Evaluation of income stability
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term.
(1) Located in the Tokorozawa area with an extremely enhanced access to each destination for consumption in thecentral city area of Tokyo and the Tokyo Metropolitan area, supported by opening of the Metropolitan Inter-City
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

29

Expressway(2) Equipped with adequate specifications including truck berths, a floor height and a pillar span, to serve as a facility forsmall-to-medium sized tenants in logistics business(3) Small-to-medium sized logistics facilities, etc. have had functions as “last-mile distribution base” supporting
E-commerce demand in recent years, in addition to serving as “supplementary facilities of large-scale logistics
facilities,” and are expected to appeal to certain tenants

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

30

(5) HTL-03 BEST WESTERN Tokyo Nishikasai
Property no.

HTL-03

Property
nameBEST WESTERN Tokyo Nishikasai

Type

Hotel

Overview of specified asset
Type of specified asset

Beneficiary interest in trust

Planned Acquisition price

3,827 million yen

Appraisal value

3,890 million yen

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floorarea

6-17-10 Nishikasai, Edogawa-ku, Tokyo and otherConstructioncompletion
Property managementcompany

TrusteePlanned Acquisition
Date
SellerMizuho Trust & Banking Co., Ltd.
April 6, 2017
GK Seahorse

6-17-9 Nishikasai, Edogawa-ku, Tokyo
Approx. 2-minute walk from Nishi-kasai Station on the Tokyo Metro Tozai Line
Proprietary ownership
1,418.00㎡

Use district

Commercial district

80%

Floor area ratio

500%(Note 1)

Use

Hotel

March 19, 1991

Structure and floors

Steel-framed reinforced concrete
structure
1 floor below ground / 9 floors above
groundShimizu Comprehensive
Development
Corporation

Master lease
company-

Proprietary ownership
5,293.88㎡

Status of leasing
Total leasable area

5,293.88㎡

Total leased area

5,293.88㎡

Occupancy rate

100.0%

Total number oftenants
Monthly rent(including common
area maintenance
fee)
Security andguarantee deposits

1
Not disclosed(Note 2) (Note 3)
Not disclosed(Note 3)

Special notation
Not applicable.
(Note 1) Permitted floor area ratio (FAR) of the building due to front road width is 360%.
(Note 2) Rents are comprised of fixed rents and variable rents.
(Note 3) The information is undisclosed as consent to disclosure has not been obtained from end tenants.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

31

Summary of appraisal report(unit:yen)Summary of real estate appraisal report
Property nameAppraisal value

BEST WESTERN Tokyo Nishikasai

Appraisal firm
Date of value

Japan Real Estate InstituteFebruary 1, 2017

3,890,000,000

Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Operating revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses
Repair expenses
Property Management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method
Discount rate
Terminal capitalization rate
Indicated value by cost approach
Ratio of land
Ratio of building

Details

Description, etc.
Estimated by correlation of the indicated value by direct
3,890,000,000 capitalization method and the indicated value by DCF
method.
3,940,000,000
203,251,000
203,251,000
021,244,000
0 Unrecorded as tenant owes.
0 Unrecorded as tenant owes.
by reference to historical data taking into
2,384,000 Recorded
account the repair and renewal expense on the ER.
by reference to the agreement terms and the
2,400,000 Appraisedlevel of similar real estate.
015,894,000 Appraised based on actual data.
536,000 Appraised by reference to the level of similar real estate.
30,000
182,007,000
846,000 Appraised investment return as 1.0%.
by reference to repair and renewal expenses in
5,563,000 Appraised
the ER and the level of similar real estate.
177,290,000
by comprehensively taking into account the
4.5% Appraisedcompetitiveness of the subject real estate, etc.
3,830,000,000
by comprehensively taking into account the
4.3% Appraisedcompetitiveness of the subject real estate, etc.
4.7% Appraised by reflecting aging risk, market trend risk, etc.
by multiplying the total of the land price and the2,990,000,000 Estimatedbuilding price by marketability correction rate.
79.9%
20.1%
Determined using the indicated value by income approachas standard and by reference to the indicated value by cost
approach.

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

32

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information-

A business hotel located within approx. a2-minute walk from Nishikasai Station of Tokyo Metro Tozai Line.

-

Excellent location characteristics, with a good access to the major business areas and sightseeing spots in Tokyo
Metropolis, which can attract both business travelers and leisure travelers. Located in a straight-line distance ofapprox. 4km away from “TDR”, it can also attract leisure travelers visiting there.

-

A hotel with great appeal to a variety of guests with various types of guest rooms depending on the intended use
with 113 single bedrooms, 8 double bedrooms, 33 twin bedrooms and 33 guest rooms of other types, as well as
restaurants and multi-purpose rooms serving various types of parties, meetings and workshops.

(2) Acquisition highlight
The property, which is owned and operated by the Sponsor Group through an acquisition executed in a form of anegotiated transaction using the wide range of business relations, will be acquired by exercising the preferential
negotiation rights that SAR has obtained from the Sponsor Group.

Demographic analysis etc., market analysis and independent analysis by the Asset Manager.
(1) Demographic analysis etc.
-

Population in Edogawa-ku, Tokyo Metropolis has continued to increase year by year, exceeding 320 thousand in
2015.

-

A daily average number of incoming and outgoing passengers at the nearest “Nishikasai” Station on the Tokyo Metro
Tozai Line as well as Kasai Station that is next to “Nishikasai” Station has grown steadily every year, exceeding as a
total of 200 thousand in 2014.

-

Furthermore, the total number of hotel guests has also increased in Tokyo Metropolis, approx. a 42% increase fromapprox. 41.5 million in 2011 to approx. 59 million in 2015.

*Source: Edogawa City

Note:

*Source: Edogawa City

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

33

*Source: Japan Tourism Agency “Travel and Tourism Consumption Trend Survey(2) Market analysis
Average Daily Rate (ADR) and occupancy rate of the business hotels located in Tokyo Metropolis have continued toincrease since 2011 as shown in the chart below, with ADR exceeding 11,000 yen in 2015 and occupancy rate has
been stable at around 90%. The trend is expected to continue with robust demand for the business hotels in Tokyo.

*Source: Japan Hotel Appraisal Co., Ltd.

(3) Independent analysis by the Asset Manager-

Characterized by the location in the Nishikasai area, the hotel asset is expected to attract both business travelers
and leisure travelers as it has a good access to the major business areas and sightseeing spots in Tokyo.

-

As to business trip accommodations, it is also expected that the hotel will attract demand of business travelers in abalanced manner not only who are visiting companies located along the Tozai Line that is the hotel’s main railway
transportation, but also who are visiting companies located in the proximity of Kyobashi or Nihonbashi and IT–related companies located at Toyosu.

-

As to leisure trip accommodations, the hotel guests are dominated by visitors to TDR. As shown in the bar chart
below, the annual admission at TDR has continued to grow with a slight volatility, constantly exceeding 30 million
since 2013, and is expected to increase steadily. That will be the key catalyst to efficiently attract various types ofvisitors to TDR.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

34

*Source: The website of Oriental Land Co., Ltd.

-As to inbound tourist accommodations, the number of foreign visitors to visiting Japan has, as shown in the bar
chart below, jumped in the recent years to exceed 24 million in 2016. The hotel asset has a good access to the major
sightseeing spots in Tokyo and in most cases the majority of the hotel guests are visitors from Asia particularly
tourists for sightseeing in Tokyo. The trend is expected to further continue. Additionally, MICE (Meeting, Incentive,
Convention & Exhibition) demands will be another catalyst to attract visitors joining events held at large facilities
including Tokyo Big Sight, Tokyo International Forum and Tokyo Tatsumi International Swimming Center. All in all,the hotel is expected to meet various demands for accommodation in an efficient manner.

*Source: Japan National Tourism Organization

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

35

Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the “Nishikasai” area with a good access to the major business areas and sightseeing spots in Tokyo(2) Capable of offering great flexibility to many business travelers and leisure travelers with over 110 single bedrooms andvarious types of other guest rooms depending on the intended use(3) Capable of attracting diversified demands for accommodation including demand of business travelers related tocompanies located along the Tozai Line, leisure travelers visiting TDR and other sightseeing spots, inbound tourists
mainly from Asia, as well as MICE demands related to various events held in Tokyo

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

36

(6) HTL-04 BEST WESTERN Yokohama
Property
Property
HTL-04
BEST WESTERN Yokohamano.
nameOverview of specified asset
Beneficiary interest in
Type of specified asset
Trusteetrust
Planned Acquisition
Planned Acquisition price
3,248 million yen
Date
Appraisal value
3,270 million yen
SellerLocation
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage ratio
Type of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

Type

Hotel

Mizuho Trust & Banking Co., Ltd.
April 6, 2017
GK Seahorse

4-29-1 Tsurumi-chuo, Tsurumi-ku, Yokohama-shi, Kanagawa and other4-29-1 Tsurumi-chuo, Tsurumi-ku, Yokohama-shi, Kanagawa
Approx. 3-minute walk from Keikyu Tsurumi Station on the Kehin Kyuko Line
Proprietary ownership
782.66㎡

Use district

Commercial district

100%

Floor area ratio

600%

Use

Hotel

September 21, 1987

Structure and floors

Steel-framed reinforced concrete
structure
1 floor below ground / 9 floors above
groundShimizu Comprehensive
Development
Corporation

Master lease
company-

Proprietary ownership
4,686.09㎡

Status of leasing
Total leasable area

4,686.09㎡

Total leased area

4,686.09㎡

Occupancy rate

100.0%

Total number oftenants
Monthly rent(including common
area maintenance
fee)
Security andguarantee deposits

1
Not disclosed(Note 1) (Note 2)
Not disclosed(Note 2)

Special notation
Not applicable.
(Note 1) Rents are comprised of fixed rents and variable rents.
(Note 2) The information is undisclosed as consent to disclosure has not been obtained from the end-tenant.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

37

Summary of appraisal report(unit:yen)Summary of real estate appraisal report
Property nameAppraisal value

BEST WESTERN Yokohama

Appraisal firm
Date of value

Japan Real Estate InstituteFebruary 1, 2017

3,270,000,000

Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Operating revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses
Repair expenses
Property Management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method
Discount rate
Terminal capitalization rate
Indicated value by cost approach
Ratio of land
Ratio of building

Details

Description, etc.
Estimated by correlation of the indicated value by direct
3,270,000,000 capitalization method and the indicated value by DCF
method.
3,280,000,000
169,022,000
169,022,000
014,495,000
0 Unrecorded as tenant owes.
0 Unrecorded as tenant owes.
by reference to historical data taking into
1,970,000 Recorded
account the repair and renewal expense on the ER.
by reference to the agreement terms and the
2,400,000 Appraisedlevel of similar real estate.
09,662,000 Appraised based on actual data.
433,000 Appraised by reference to the level of similar real estate.
30,000154,527,000
804,000 Appraised investment return as 1.0%.
by reference to repair and renewal expenses in
4,598,000 Appraised
the ER and the level of similar real estate.
150,733,000
by comprehensively taking into account the
4.6% Appraisedcompetitiveness of the subject real estate, etc.
3,250,000,000
by comprehensively taking into account the
4.3% Appraisedcompetitiveness of the subject real estate, etc.
4.7% Appraised by reflecting aging risk, market trend risk, etc.
by multiplying the total of the land price and the
1,730,000,000 Estimatedbuilding price by marketability correction rate.
74.6%
25.4%
Determined using the indicated value by income approachas standard and by reference to the indicated value by cost
approach.

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

38

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information-

A business hotel located within approx. 4-minute walk from “Tsurumi” Station of the JR Keihin Tohoku Line and a
3-minute walk from “Keikyu Tsurumi” Station of the Keihin Kyuko Line.

-

Excellent location characteristics that can attract both business travelers and leisure travelers, as its location has a goodaccess to the major areas in Kanagawa including Yokohama and Kawasaki as well as within about 20-minute train rideto the Tokyo International Airport (Haneda Airport).

-

A hotel with great appeal to a variety of guests with various types of guest rooms depending on the intended use with
144 single bedrooms, 22 double bedrooms and 19 twin bedrooms, as well as a restaurant and multi-purpose rooms
serving various types of parties, meetings and workshops.

(2) Acquisition highlight
The property, which is owned and operated by the Sponsor Group through an acquisition executed in a form of anegotiated transaction using the wide range of business relations, will be acquired by exercising the preferential
negotiation rights that SAR has obtained from the Sponsor Group.

Demographic analysis etc.,

market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
-

Population in Tsurumi-ku, Yokohama-shi has continued to increase year by year, exceeding 3.73 million in 2016.

-

A daily average number of incoming and outgoing passengers at the nearest JR “Tsurumi” Station has grown steadily
every year with a slight volatility, exceeding as a total of 79 thousand in 2015.

-

Furthermore, the total number of hotel guests has increased in Yokohama-shi in accordance with increase in leisuretravelers, approx. a 41% increase from approx. 4.71 million in 2011 to approx. 6.66 million in 2015.

*Source: Yokohama City

Note:

*Source: JR East Japan Railway Company

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

39

*Source: Yokohama City Culture and Tourism Bureau(2) Market analysis
Average Daily Rate (ADR) and occupancy rate of the business hotels in Yokohama-shi have continued to increase since2011 as shown in the chart below, with ADR exceeding 14,000 yen in 2015 and occupancy rate has stable ataround80% - 90%. The trend is expected to continue with robust demand for the business hotels in Yokohama-shi.

*Source: Japan Hotel Appraisal., Ltd(3) Independent analysis by the Asset Manager
As to business trip accommodations, the hotel is expected to attract business travelers not only who are visiting
companies located in the Yokohama area with their headquarters or major hubs, but also who are related tolarge-scale department stores including Sogo and Takashimaya.
-

As to leisure trip accommodations, while the hotel guests will be dominated by visitors to the major sightseeing spots
such as Minatomirai, Yokohama Chinatown and Yamashita Park, it is also expected to attract leisure tourists visiting
large-scale events (such as live events) in facilities including Yokohama Stadium, Pacifico Yokohama and Yokohama
Arena.

-

Additionally, MICE (Meeting, Incentive, Convention & Exhibition) demands will be another catalyst to attract visitors
joining events such as international conferences held in Yokohama-shi. All in all, the hotel is expected to meet various
demands for accommodation in an efficient manner.

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

40

Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the Tsurumi area with a good access to the major areas in Kanagawa including Yokohama and Kawasaki as wellas Tokyo International Airport (Haneda Airport)(2) Capable of attracting diversified demands for accommodation including demands of business travelers related tocompanies with their headquarters or major hubs located in the Yokohama area, leisure travelers visiting various types ofmajor sightseeing spots in the Yokohama area, as well as MICE demands related to international conferences held in
Yokohama-shi(3) Capable of offering great flexibility to many business travelers and leisure travelers with over 140 single bedrooms andother guest rooms of various types depending on the intended use

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

41

4. Seller Profile(1) OFC-09 Hakata-eki East Place, HTL-03 BEST WESTERN Tokyo Nishikasai and HTL-04 BEST WESTERN Yokohama
Name

GK Seahorse

Location

Capital5-1-4 Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Kotsubo
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 business incidental to the above
100,000 yen

Established

April 1, 2015

Net asset

The information is undisclosed as consent to disclosure has not been obtained from the

Total asset

company.

Representative
Main business description

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 personal relationship to report.

Business relationship

There is no business relationship to report.

Related party or no(Note)The Seller does not fall under the category of interested person, etc. as provided in theInvestment Trusts Act, but falls under the category of interested party (Note) 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 determination of the acquisition of the assets, the Asset Manager has performed
deliberation and resolution in accordance with the voluntary rules.
“Interested parties” are [(i) the Interested Parties of the Asset Manager as provided in Article 201, paragraph 1 ofthe Investment Trust Act, (ii) the shareholders and officers of the Asset Manager, (iii) SPCs which execute an
investment management agreement with the shareholders of the Asset Manager, (iv) SPCs a majority of investmentof which are made by the Asset Manager and the shareholders of the Asset Manager､(v)Star Asia Management
Limited, Star Asia Asset Management LLC, Star Asia Management Japan Limited, Star Asia Group LLC, Malcolm F.
MacLean IV, Taro Masuyama, as well as investment vehicles invested by funds under management of Malcolm F.
MacLean IV and Taro Masuyama (excluding minority interests) which (a) are located in Japan to own or acquire realestates or other investment assets and (b) own or acquire the investment units of SAR. This applies to any otherassets described below.

(2) RSC-07 Urban Park Kashiwa
Name

GK SAPR4

Location

1-1-7 Motoakasaka, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin SAPR Holding4
Operational executor: Terumitsu Nosaka
1. Acquisition, ownership, disposition and management of beneficiary interest in trust
2. Sales, leasing, management, ownership, and disposition of real estate

Representative
Main business description
Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

42Capital

3. All business incidental to the above
100,000 yen

Established

August 6, 2015

Net asset

The information is undisclosed as consent to disclosure has not been obtained from the

Total asset

company.

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 no

The Seller does not fall under the category of 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”, which is the voluntary rules set forth by the
Asset Manager for preventing conflict of interests regarding its management of SAR’s assets.
Upon determination of the acquisition of the assets, the Asset Manager has performed
deliberation and resolution in accordance with the voluntary rules.

(3) LGC-04 Baraki Logistics
Name

GK Enterprise

Location

Capital5-1-4 Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Hakkeijima
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 business incidental to the above
100,000 yen

Established

April 1, 2015

Net asset

The information is undisclosed as consent to disclosure has not been obtained from the

Total asset

company.

Representative
Main business description

Major shareholders andshareholding ratio
Relationship with investment corporation or asset management company
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 no

The Seller does not fall under the category of 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”, which is the voluntary rules set forth by the
Asset Manager for preventing conflict of interests regarding its management of SAR’s assets.
Upon determination of the acquisition of the assets, the Asset Manager has performed
deliberation and resolution in accordance with the voluntary rules.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

43

(4) LGC-05 Tokorozawa Logistics
Name

Focus Co., Ltd.

Location

1-2-3 Toranomon, Minato-ku, Tokyo

Representative

CapitalCEO Masato Emura
1. Investment management
2. Type II Financial Instruments Business
3. Real estate investment advisory
4. through 24. Omission
25. All business incidental to the above
100,000,000 yen

EstablishedFebruary 2, 2009

Net asset

The information is undisclosed as consent to disclosure has not been obtained from the

Total asset

company.

Main business description

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 no

The Seller does not fall under the category of interested person.

5. Status of Parties Related to the Acquisition of the Property(1) OFC-09 Hakata-eki East Place
Current owner, current trustee
Company name

GK SeahorsePrevious owner, previous
trustee
GK Topper

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

Relationship withparties who havespecial interests

Acquisition
background andreason, etc.
Acquisition priceNote:

The company does not fall under

The company does not fall

the category of interested

under the category of

person, etc. as provided in theinterested person, etc. as

Investment Trusts Act, but falls

provided in the Investment

under the category of interested

Trusts Act, but falls under theparty prescribed in the “Rules on

category of interested party

Transactions with Interestedprescribed in the “Rules on

Parties” set forth by the Asset

Transactions with Interested

Manager.

Parties” set forth by the Asset

Acquired for investment
management purpose

Manager.。
Acquired for investment
management purpose-(Note)-

2,255,000,000 yen-

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

44

Acquisition period

September 29, 2016

November 28, 2014-

(Note) Omitted as the current owner has owned the property for over one year.

(2) RSC-07 Urban Park Kashiwa
Current owner, current trustee
Company name

GK SAPR4

Relationship with parties
who have special interests

The company does not fall under thePrevious owner, previous trustee
Other than the one in a relationship ofspecial interest-

category of interested person, etc. asprovided in the Investment 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 andreason, etc.
Acquisition price

Acquired for warehousing
1,130,000,000 yen-

Acquisition period

June 30, 2016-

purpose-(3) LGC-04 Baraki Logistics
Previous owner, previous trustee
Company name

GK Enterprise

Before Previous owner, previous trustee
Other than the one in a relationship ofspecial interest

Relationship with parties
who have special interests

The company does not fall under the-

category of interested person, etc. asprovided in the Investment 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 andreason, etc.

Acquired for investment management

Acquisition price

4,650,000,000 yen-

Acquisition period

June 30, 2016--

purpose(4) LGC-05 Tokorozawa Logistics
The asset has not been acquired from any parties who have special interests in SAR or the Asset Manager.
(5) HTL-03 BEST WESTERN Tokyo Nishikasai
Current owner, current trustee
Company name
Note:

GK SeahorsePrevious owner, previous
trustee
GK Melges

Previous owner, previous
trustee
Other than the one in aThis press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

45

relationship of special
interest
Relationship withparties who havespecial interests

The company does not fall under

The company does not fall

the category of interested

under the category of interested

person, etc. as provided in the

person, etc. as provided in theInvestment Trusts Act, but falls

Investment Trusts Act, but falls

under the category of interested

under the category of interested

party prescribed in the “Rules onparty prescribed in the “Rules

Transactions with Interested

on Transactions with Interested

Parties” set forth by the Asset

Parties” set forth by the AssetManager.

Manager.

Acquisition
background andreason, etc.
Acquisition price

Acquired

Acquisition period

forinvestment

Acquiredforinvestment

management purpose

management purpose

3,805,000,000 yen(Note)

September 29, 2016

July 24, 2015

(Note) Omitted as the current owner has owned the property for over one year.

(6) HTL-04 BEST WESTERN Yokohama
Current owner, current trustee
Company name

GK SeahorsePrevious owner, previous
trustee
GK Melges

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

Relationship withparties who havespecial interests

The company does not fall under

The company does not fall

the category of interested person,

under the category of

etc. as provided in the Investment

interested person, etc. as

Trusts Act, but falls under theprovided in the Investment

category of interested party

Trusts Act, but falls under theprescribed in the “Rules on

category of interested party

Transactions with Interestedprescribed in the “Rules on

Parties” set forth by the Asset

Transactions with Interested

Manager.

Parties” set forth by the Asset-Manager.
Acquisition
background andreason, etc.
Acquisition price

Acquired

Acquisition period

forinvestment

Acquiredforinvestment-

management purpose

management purpose

3,185,000,000 yen(Note)-

September 29, 2016

July 24, 2015-

(Note) Omitted as the current owner has owned the property for over one year.

6. Transaction with interested person, etc.
The Transactions are no transactions with interested person, etc., as provided in the Investment Trusts Act,
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

46

but the seller in the asset acquisition 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 deciding on the acquisition of
the asset, the Asset Manager has performed deliberation and resolution in accordance with the voluntaryrules.
7. Overview of broker(1) OFC-09 Hakata-eki East Place, RSC-07 Urban Park Kashiwa, LGC-04 Baraki Logistics, HTL-03 BEST WESTERNTokyo Nishikasai and HTL-04 BEST WESTERN Yokohama
1) Overview of broker
Name
Location
Representative
Main business description

Jones Lang LaSalle, Inc.
2-13-10 Nagata-cho, Chiyoda-ku, Tokyo
Toshinobu Kawanishi
1. Consultant and research of real estate investment
2. Sales, trading, leasing, management of real estate; and agent and brokerage of such
3. Appraisal and consultant of real estate
4. through 24. Omitted
25. All business incidental to the above
Capital
195 million yen
Established
April 23, 1985
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 no

The company does not fall under the category of related party of SAR/the Asset Manager.

2) Breakdown and value of the brokerage commission
Since the consent has not been obtained from the broker, the information is not disclosed as an
undisclosed case due to unavoidable reasons.
(2) LGC-05 Tokorozawa Logistics
1) Overview of broker
Name

Nomura Real Estate Development Co., Ltd.

Location

1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Representative

Seiichi Miyajima

Main business description

1. Ownership, leasing and management of real estate
2. Sales, trading brokerage and appraisal of such
3. through 14. Omitted
15. All business incidental to the above

Capital2 billion yen

Established

April 15, 1957

Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

47

Personnel relationship

There is no personnel relationship to report.

Business relationship

There is no business relationship to report.

Related party or no

The company does not fall under the category of related party of SAR/the Asset Manager.

2) Breakdown and value of the brokerage commission
Since the consent has not been obtained from the broker, the information is not disclosed as an
undisclosed case due to unavoidable reasons.
8. Schedule for the Transactions
March 17, 2017
April 6, 2017
(Anticipated dateof Acquisition)

Acquisition decided
Conclusion of a sale and purchase agreement of beneficiary interest in trust
Acquisition of beneficiary interest in trust (planned)
Payment of acquisition price (planned)
Conclusion of a master lease agreement and property management agreement(planned)

9. Settlement method
The sale and purchase prices of the Transactions will be settled in lump sum on April 6, 2017.
10. Future outlook
As a result of the Transactions, there will be a change in assumption used in the projected financial results forthe fiscal period ending July 31, 2017 (the 3rd fiscal period, February 1, 2017 to July 31, 2017) described in“Notice Concerning Revision to Forecasts for Operating Results and Distribution for the 3rd Fiscal PeriodEnding July 31, 2017” announced as of February 28, 2017. Please refer to “Financial Report for the 3rd Fiscal
Period Ending January 31, 2017” and “Notice Concerning Revision to Forecasts for Operating Results for the
3rd Fiscal Period Ending July 31, 2017 and Forecasts for Operating Results and Distribution for the 4th Fiscal
Period Ending January 31, 2018” announced as of today for further details.

<Reference Materials>
Reference Material 1:
Reference Material 2:
Reference Material 3:

Portfolio list after the Transactions (as of April 6, 2017)
Summary of earthquake risk analysis
Location maps/photos of exterior of properties<Other Press Releases Announced as of Today>- Notice Concerning Revision to Forecasts for Operating Results
Note:for the 3rd Fiscal Period Ending July 31, 2017

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

48

and Forecasts for Operating Results and Distribution for the 4th Fiscal Period Ending January 31, 2018
- Supplemental Material on Press Releases Announced as of Today* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the pressclub of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club forconstruction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

49

Reference material 1

Property no.

Portfolio list after the Transactions (as of April 6, 2017)

Property nameLocation(Planned)

Real estate

acquisition

appraisal

Investment

price

value

ratio (%)

(million yen)(million yen)

(Note 3)(Note 1)

(Note 2)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

2,973

3,040

3.9

OFC-02

Oak Minami-Azabu Building(Note 4)

Minato-ku, Tokyo

1,668

1,770

2.2

6,065

6,830

7.9

Chuo-ku, Osaka-shi,

OFC-03

Honmachibashi Tower

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,290

2.3

OFC-05Alphabet Seven

Minato-ku, Tokyo

1,725

2,270

2.2

OFC-06

Shibuya MK Building

Shibuya-ku, Tokyo

2,042

2,530

2.7

OFC-07

Hakata-eki Higashi 113 Building

1,885

1,960

2.4

OFC-08Asahi Building

6,320

6,470

8.2

2,286

2,370

3.0

26,72729,530

34.7

Osaka

Hakata-ku, Fukuoka-shi,
Fukuoka
Kanagawa-ku,
Yokohama-shi,
Kanagawa

OFC-09Hakata-eki East Place

Hakata-ku, Fukuoka-shi,
Fukuoka
Office subtotal

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,140

2.7

RSC-02

Urban Park Daikanyama

Shibuya-ku, Tokyo

6,315

7,120

8.2

2,528

2,580

3.3

1,490

1,610

1.9

Kohoku-ku,
RSC-04

Urban Park Shin-Yokohama

Yokohama-shi,
Kanagawa
Naniwa-ku, Osaka-shi,

RSC-05

Urban Park Namba

RSC-06

Urban Park Gokokuji

Toshima-ku, Tokyo

1,460

1,480

1.9

RSC-07

Urban Park Kashiwa

Kashiwa-shi, Chiba

1,186

1,190

1.5

15,024

16,120

19.5

6,942

7,000

9.0

3,560

3,880

4.6

Osaka

Residence subtotal
Iwatsuki-ku, Saitama-shi,

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Funabashi-shi, Chiba

7,875

8,240

10.2

LGC-04

Baraki Logistics(Note 5)

Ichikawa-shi, Chiba

4,700

4,860

6.1

LGC-05Tokorozawa Logistics

Tokorozawa-shi, Saitama

1,300

1,360

1.7

Logistics subtotal

24,37725, 340

31.6

Saitamakanagawa-ku,
Yokohama-shi,
Kanagawa

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

50

HTL-01

R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03

BEST WESTERN Tokyo Nishikasai

HTL-04

BEST WESTERN Yokohama

Kita-ku, Osaka-shi,

2,069

2,250

2.7

1,750

1,960

2.3

3,827

3,890

5.0

3,248

3,270

4.2

Hotel subtotal

10,894

11,370

14.1

Total

77,02282,360

100.0

Osaka
Naniwa-ku, Osaka-shi,
Osaka
Edogawa-ku, Tokyo
Tsurumi-ku,
Yokohama-shi,
Kanagawa(Note 1) ”(Planned) acquisition price” indicates, except for Minami-Azabu Shibuya Building and Oak Minami-Azabu Building, thesale and purchase price stated in the sale and purchase agreement for the acquired asset/asset to be acquired,
rounded to the nearest million yen. The sale and purchase price or the planned sale and purchase price does notinclude consumption tax, local consumption tax and various expenses required for the acquisition. As to Minami-Azabu
Shibuya Building and Oak Minami-Azabu Building, since price for each property is not set in the sale and purchaseagreement, the total sale and purchase price of the two properties is divided proportionally based on the ratio of
appraisal value of each property at the time of acquisition and indicated as “(Planned) acquisition price.”(Note 2) ”Real estate appraisal values”is the opinions of value stated in the real estate appraisal report with January 31, 2017 as
the date of value for acquired assets (excluding Urban Park Gokokuji), November 1, 2016 as the date of value for Urban
Park Gokokuji, and February 1, 2017 as the date of value for assets to be acquired, each rounded to the nearest million
yen.
(Note 3) “Investment ratio” is the ratio of (planned) acquisition price for each acquired asset/asset to be acquired to the total of(planned) acquisition prices, rounded to the first decimal place.
(Note 4) As announced in the “Notice Concerning Acquisition and Transfer of Real Estate Beneficiary Interests in Trust” as ofFebruary 28, 2017, quasi-co-ownership interest of Oak Minami-Azabu is planned to be transferred for 49% on March 31,2017 and 51% on August 1, 2017. ”(Planned) acquisition price” and ”Real estate appraisal values” are each rounded to
the nearest million yen, based on the calculation with the acquisition price for the whole building and the real estateappraisal value multiplied by quasi-co-ownership interest of 51% owned as of April 6, 2017.
(Note 5) In addition to acquisition of quasi-co-ownership interest of Baraki Logistics for 73% (planned acquisition price of 3,431
million yen) to be executed on April 6, 2017 as announced in the “Notice Concerning Acquisition and Transfer of Real
Estate Beneficiary Interests in Trust” as of February 28, 2017, it was decided today that quasi-co-ownership interest for
the remaining 27% (planned acquisition price of 1,269 million yen) will be acquired on the same date from the Sponsor
Group. As a result, “(Planned) acquisition price” and ”Real estate appraisal values” are both described as figures
related to the whole building.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

51

Reference Material 2
Type

OfficeResidence

Logistics

Hotel

Summary of earthquake risk analysis

Property
no.

PML
(%)

Property name

OFC-01

Minami-Azabu Shibuya Building

OFC-02

Oak Minami-Azabu Building

OFC-03

Honmachibashi Tower

OFC-04

Nishi-Shinjuku Matsuya Building

12.2

OFC-05Alphabet Seven

7.8

OFC-06

Shibuya MK Building

13.1

OFC-07

Hakata-eki Higashi 113 Building

7.1

OFC-08Asahi Building

4.8

OFC-09Hakata-eki East Place

7.3

RSC-01

Urban Park Azabujuban

7.2

RSC-02

Urban Park Daikanyama

Existing bldg.: 12.7
Bldg. A: 10.2
Bldg. B: 7.9

RSC-04

Urban Park Shin-Yokohama

14.5

RSC-05

Urban Park Namba

13.2

RSC-06

Urban Park Gokokuji

9.2

RSC-07

Urban Park Kashiwa

10.0

LGC-01

Iwatsuki Logistics

12.2

LGC-02

Yokohama Logistics

12.6
High-rise bldg.: 11.2
Low-rise bldg. A: 6.3
Low-rise bldg. B: 5.5(Note 1)
2.7

10.8
Bldg. 1-A: 13.9
Bldg. 1-B: 14.4
Bldg. 2: 11.1
10.9(Note 1)

LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics(Note 5)

LGC-05Tokorozawa Logistics

Warehouse: 9.7
Office: 3.8

HTL-01R&B Hotel Umeda East

11.4

HTL-02

Smile Hotel Namba

12.3

HTL-03

BEST WESTERN Tokyo Nishikasai

13.3

HTL-04

BEST WESTERN Yokohama

7.9

Entire portfolio (24 properties)(Note2)

3.4(Note1) They are the figures of the whole building.
(Note2) The figure in the entire portfolio column is the PML for the entire portfolio of the acquired asset/asset to be acquired(portfolio PML) based on “portfolio earthquake risk evaluation report” prepared by Deloitte Tohmatsu Property Risk
Solution Co., Ltd. dated March 2017.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

52

Reference Material 3
1.

Note:

Location maps/photos of exterior of properties
OFC-09Hakata-eki East PlaceThis press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

53

2.

Note:

RSC-07

Urban Park Kashiwa

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

54

3.

Note:

LGC-04

Baraki Logistics

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

55

4.

Note:

LGC-05Tokorozawa Logistics

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

56

5.

Note:

HTL-03

BEST WESTERN Tokyo Nishikasai

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

57

6.

Note:

HTL-04

BEST WESTERN YokohamaThis press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to
the acquisition of real estate beneficiary interests in trust and lease contract with new tenants, and not forthe 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. The securities referred to herein have not been, and will
not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 made in connection
with the above-mentioned transactions. This press release is not for publication, distribution or release,
directly or indirectly in or into the United States of America.

58