August 2, 2021
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Director(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative: Atsushi Kato
President and CEO
Contact: Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trustand entering into Lease Contracts
Star 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 seven real estate properties (the “Assets to be Acquired” and theentire transaction to acquire these beneficiary interests is referred to as the “Acquisitions”
1.

Overview of the Assets to be Acquired

Asset type

Propertyno. (Note 1)

Property name

OfficeOFC-22OHA Building

OfficeOFC-23

Urban Center Hakata (Note 2)

Retail

RTL-05

BAGUS Ikebukuro West

Residence

RSC-18

Urban Park Ryogoku (Note 2)

Residence

RSC-19Urban Park Mizonokuchi (Note 2)

Residence

RSC-20Urban Park Miyamaedaira(Note 2) (Note 4)

Residence

RSC-21

Urban Park Tsurumi (Note 2)
Total(7properties)

Location
Tachikawa-shi,Tokyo
Fukuoka-shi,
FukuokaToshima-ku,
Tokyo
Sumida-ku,
Tokyo
Kawasaki-shi,
Kanagawa
Kawasaki-shi,
Kanagawa
Yokohama-shi,
Kanagawa

Plannedacquisition price(mm yen) (Note3)
1,804
2,870
2,984
1,115
2,019
1,060
1,113
12,965(Note 1)
As for “Property no”, please refer to “Reference Material 5 The terms used in the table of
Description of Asset to be Acquired” below.
(Note 2)The current names of the properties are as follows. However, it is planned to change thenames of the properties to the above, immediately after acquisition of the Assets to be Acquired.
Property no.
OFC-23
RSC-18
RSC-19Property name
URBAN CENTER HAKATACity Heim Kamezawa
Rise

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

1

RSC-20
RSC-21MIJAS Miyamaedaira EAST・WEST
Village Ushioda(Note 3)
“Planned acquisition price” indicates the planned sale and purchase price stated in the saleand purchase agreement with the seller for the Assets to be Acquired, rounded to the nearest
million yen. The planned sale and purchase price does not include consumption tax, local
consumption tax and various expenses required for the acquisition.
(Note 4)
“Urban Park Miyamaedaira” is comprised of 2 buildings (“Urban Park Miyamaedaira EAST”
and “Urban Park Miyamaedaira WEST”), and the amount stated above is the total of the planned
acquisition price of 2 buildings. Unless specified otherwise, each of the figures stated for “Urban
Park Miyamaedaira” shall be for the total of the 2 buildings.
(1)Contract date(2)Planned acquisition date(3)Sellers(4)Acquisition financing(5)Settlement method：August 2, 2021
：August 19, 2021 (delivery and settlement date)：Please refer to “4. Seller Profile” below： Proceeds from the issuance of new investment units
through public offering (Primary offering) (Note 5) for
which resolution was made at the Board of Directors
meeting of SAR held on today, planned new
borrowings(Note 6) to be planned etc.
：Payment of entire amount on planned acquisition date

(Note 5)For further details, please refer to “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” announced today.
(Note 6)
For further details, please refer to “Notice concerning Debt Finacing“announced today.
2.

Reason for the Acquisition and Leasing
The purpose of the Acquisition is to promote the external growth strategy aiming to achieve the goal of“Asset Size of JPY 300 billion by 2026” which was established in SAR’s Mid-term Business Plan (announced
in March, 2021), as well as to secure stability of income mainly in the mid- to long-term. The Assets to be
Acquired include properties which have potential for earnings growth, and SAR believes that it is possible
to incorporate growth as well as to secure stability.
The Assets to be Acquired include a property developed by the Sponsor Group (Note 1) (the first officedevelopment project by Star Asia Sogo Kaihatsu Co. Ltd. (hereinafter referred to as “Star Asia Sogo
Kaihatsu”)), a property which utilizes the warehousing function (Note 2) of Star Asia Group (Note 1), andproperties for which cooperation was obtained to secure the property by sponsor forward commitment(Note 3), and SAR is expecting to realize external growth by receiving these strong sponsor support.
Furthermore, the Assets to be Acquired also include properties to be acquired as bilaterally negotiatedtransactions by leveraging the Asset Manager’s own unique network. Also going forward, SAR will aim toachieve the asset size target included in the Mid-term Business Plan by utilizing sponsor support and theAsset Manager’s own unique network.
The main reasons for deciding on the acquisition and leasing of the Assets to be Acquired are outlined
below.
The tenants of the Assets to be Acquired satisfy the tenant selection standards described in the “Reporton the Management Structure and System of the Issuer of Real Estate Investment Trust Units and Related
Parties” dated April 28, 2021.
(Note 1) “Star Asia Group” means group of related entities and invested entities lead by the co-founders
Malcolm F. MacLean IV and Taro Masuyama who are the key players of the Group even today(and includes funds at which the two are involved in decision-making, as well as investment
destinations of such funds). The “Sponsor Group” means the group of entities within Star Asia

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

2Group which are closely related to SAR and which assume support functions for SAR based onsponsor support agreements. The same applies below.
(Note 2) The “warehousing function” refers to cases where the Sponsor Group, based on request received
from SAR to temporarily hold real estate properties, acquires real estate properties etc. for the
purpose of promoting smooth acquisition of the same properties by SAR in the future. The same
applies below.
(Note 3) The “sponsor forward commitment” refers to execution of a sales and purchase agreement
between the Sponsor Group and the seller stating that the sponsor group will acquire certain
real estate, etc., on the premise of transferring or selling the status of the property to SAR in the
future. The same applies below.
【Office】（1）
OHA Building
OHA Building is a multi-tenant type office building located at an approximate 9-minute walk from“Tachikawa” station on the JR Chuo Line and the JR Nambu Line. In addition to having good access tocentral Tokyo by taking the JR Chuo Line, the property is located along Midorikawa-dori which is directly
connected to Ome-kaido street which is a main highway, and the location has good traffic convenienceby both train and cars.
With respect to the property characteristics, the building has a massive external curtain wall, and islocated along Midorikawa-dori directly connected to Ome-kaido street which is a main highway as
described above. Given that it will allow commercial vehicles to easily go back and forth, the property ishighly appealing to places of business which use vehicles.
The decision to acquire the property was made as a result of having comprehensively considered theabove stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid- to long-term and will contribute to the improvement of stability of
portfolio income. Upon acquiring the OHA Building, preferential negotiation rights obtained from theSponsor Group, which provided warehousing function to SAR, has been exercised. Also, property
information obtained from a unique network of the Asset Manager is utilized in sourcing this transaction.
（2）
Urban Center Hakata
Urban Center Hakata is located on the east side of “Hakata” station which is the gateway of Kyushu
region and Fukuoka prefecture. It is located at an approximate 9-minute walk from “Higashihie” stationon the Fukuoka City Airport Line and an approximate 11-minute walk from “Hakata” station on the JR
Kyushu Lines.
This property is the first office development project undertaken by Star Asia Sogo Kaihatsu which
belongs to the Sponsor Group, and is a new multi-tenant type office building whose construction wascompleted in September 2020. Star Asia Group’s construction management division supervised thespecifications from interior and exterior design and facilities to the final finishings, assuming the needsof the tenants entering the property.
The Hakata area where the property is located is the business center of the Kyushu region, and there
is high demand for offices, and such trend is believed to continue going forward.
With respect to the property characteristics, the building has massive curtain walls facing two streetsat a corner plot, and the rentable area of standard floor exceeding 100 tsubo is highly scarce in the area.
The floor area can be split up flexibly, and the property is believed to be highly appealing to tenant firms
from a wide range of industries as a place of business of local firms and as a branch office etc. within the
Kyushu region.
For a certain period after SAR’s acquisition (expected to be from August 19, 2021 to August 31, 2022),
a rent-guarantee type master lease agreement will be signed by Star Asia Sogo Kaihatsu, and stable
income is anticipated. During such period, Star Asia Sogo Kaihatsu and the Asset Manager will cooperate
and focus on leasing activities, and it is believed that rent upside can be expected after the termination
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

3

of the above-mentioned master lease agreement.
The decision to acquire the property was made as a result of having comprehensively considered theabove stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid-to long-term and there is upside potential for revenues. Upon
acquiring Urban Center Hakata, preferential negotiation rights obtained from the Sponsor Group has
been exercised.
【Retail】（3）
BAGUS Ikebukuro West
BAGUS Ikebukuro West is an urban-commercial facility located at an approximate 2-minute walk from
“Ikebukuro” station on the JR Lines and Tokyo Metro Lines.
“Ikebukuro” station is a huge terminal train station with access by 8 railway Lines including Tobu
Railway and Seibu Railway, and total number of incoming and outgoing passengers per day of
approximately 2.5 million. Ikebukuro station’s west exit (Nishi-guchi) area where the property is locatedis a very busy downtown district, known as a complex area of business, entertainment, and sightseeing
spots etc. Ikebukuro station’s west exit is a high potential area where there are plans for urban
development projects, and the area is expected to increase competitiveness going in to the future as
well.
Although the property is currently being leased to a single tenant, the structure of the building allows
for switching to multiple-tenants. The property is highly visual as it is located at a corner, and it isbelieved that the property is highly appealing to tenants.
Although the request to stay home given the prolonged COVID-19 pandemic is continuing, if the
COVID-19 pandemic converges and consumption activities pick up going forward following higher
vaccination ratios etc., it can be expected the ability to attract customers will recover in the IkebukuroWest area and also for the property.
The decision to acquire the property was made as a result of having comprehensively considered theabove stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid-to long-term and will contribute to the improvement of stability of
portfolio income. Upon acquiring BAGUS Ikebukuro West, preferential negotiation rights obtained fromthe Sponsor Group has been exercised.
【Residence】（4）
Urban Park Ryogoku
Urban Park Ryogoku is a family-type residence located at an approximate 9-minute walk from
“Ryogoku” station on the Toei Oedo Line and an approximate 11-minute walk from “Kinshicho” stationon the JR Sobu Line and Chuo Line and the Tokyo Metro Hanzomon Line.
In the Ryogoku area where the property is located, there is the “Sumida Hokusai Museum”,“Edo-Tokyo Museum”, “Kokugikan (sumo arena)”, and the “Kyu-Yasuda Teien (former Yasuda Garden)”etc. and it is an area which is active in transmitting information about Japanese culture and formulatinglandscapes. Also, as the property has access to multiple train lines, there is good access to various partsof the central Tokyo and it is also a highly convenient area for commuting.
With respect to the property characteristics, the property consists of a total of 32 housing units which
all have a 3LDK room layout, and is highly appealing to families who place importance on convenient
access to central Tokyo. Also, there are relatively small numbers of family-type residences in the areasurrounding the property, and given its scarcity, stable occupancy is anticipated. In addition, as theproperty has been managed up to now as Sumida-ku’s Specified Excellent Rental Housing (Note 1) andthe current rent levels of existing tenants (Note 2) are relatively low, a rent gap (the difference between
the rent levels of existing tenants and the assumed rents for new tenants (Note 3)) exists, providing
anticipation for revenues upside.
The decision to acquire the property was made as a result of having comprehensively considered theNote: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

4

above stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid-to long-term and there is upside potential for income. Upon acquiring
Urban Park Ryogoku, Star Asia Sogo Kaihatsu has cooperated in the acquisition of the property by SAR,
by securing the property under a sponsor forward commitment and granting preferential negotiationrights to SAR by using property information obtained from a unique network of the Asset Manager.
(Note 1) “Specified Excellent Rental Housing” means rental housing supplied based on the Act on
Promotion of Supply of Specified Excellent Rental Housings, where rental housing withsatisfactory living environment is supplied to mid-class income persons.
(Note 2) The “current rent levels of existing tenants” for Urban Park Ryogoku means the rent as
described in lease agreements (only residence) of Urban Park Ryogoku with respective
tenants as of April 31, 2021.
(Note 3) The “assumed rents for new tenants” for Urban Park Ryogoku means the "market
rent(yen/㎡)"(only residence) stated in the real estate appraisal report of Urban Park
Ryogoku based on the price as of June 1, 2021. It means the contractual rent when a newlessee is recruited in Urban Park Ryogoku, which is assumed by the appraiser who createdthe appraisal report.
（5）
Urban Park Mizonokuchi
Urban Park Mizonokuchi is a residence located at an approximate 8-minute walk from “Takatsu”
station on the Tokyu Denentoshi Line, and an approximate 15-minute walk from “Mizonokuchi” stationon the Tokyu Denentoshi Line and “Musashi Mizonokuchi” station on the JR Nambu Line.
The property has high living convenience as it is within walking distance from “Mizonokuchi” station
which is one of the leading commercial centers within Kawasaki-shi, and by using the Tokyu DenentoshiLine, the property has good access to business centers, as it is an approximately 19 minutes to “Shibuya”
station and approximately 35 minutes to “Otemachi” station by the Tokyu Denentoshi Line.
With respect to the property characteristics, large-scale renovation works were conducted in 2007,
including for the exclusive owned areas, and it is believed that the property has maintained adequate
competitiveness. The property has a total of 76 housing units whose floor plans range from exclusive
owned floor areas of 36.55 ㎡ to 91.42 ㎡ (mainly 40-50 ㎡: 52 housing units) to accommodate various
life stages, and it is believed that the property is highly appealing to a wide range of residents fromsingle persons to DINKs (Note) and also families.
The decision to acquire the property was made as a result of having comprehensively considered theabove stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid- to long-term and will contribute to the improvement of stability of
portfolio income. Urban Park Mizonokuchi is to be acquired as a bilateral negotiated transaction throughthe Asset Manager’s own unique network.
(Note) “DINKs” means households where both the husband and wife are working and have 2 sourcesof income (Double Income) and have no children (No Kids). The same applies below.
（6）
Urban Park Miyamaedaira
Urban Park Miyamaedaira is a newly built residence (construction completed in June 2021) which islocated at an approximate 5-minute walk from “Miyamaedaira” station on the Tokyu Denentoshi Lineand an approximate 3-minute walk from the “Kodai” bus stop which is an approximate 7-minute bus
ride from “Saginuma” station of the Tokyu Denentoshi Line.
The area where the property is located is a highly convenient area for commuting given good accessto central Tokyo, and also, it is a silent residential area with a nice living environment with natural
surroundings including many parks and greenery.
With respect to the property characteristics, it is a newly built residence whose construction wascompleted in June 2021 and has the latest housing facilities and equipments. The floor plans range fromsingle type rooms to 2LDK (duplex type), and are believed to be appealing to a wide range of residents
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

5

from single persons to DINKs and also families.
The current occupancy rate is around 33.0%, however, currently leasing activities are being conductedin cooperation with a PM company, and SAR believes that the occupancy rate will stabilize at an earlystage.
The decision to acquire the property was made as a result of having comprehensively considered theabove stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid-to long-term and will contribute to the improvement of stability of
portfolio income. Upon acquiring Urban Park Miyamaedaira, the property will be secured through asponsor forward commitment by Star Asia Sogo Kaihatsu, and preferential negotiation rights granted to
SAR will be exercised.
（7）
Urban Park Tsurumi
Urban Park Tsurumi is a family-type residence located at an approximate 11-minute walk from
“Asano” station on the JR Tsurumi Line, and an approximate 19-minute walk from “Tsurumi” station on
the Keikyu Main Line, and an approximate 3-minute walk from the “Mukai-cho Sanchome” bus stop
which is a 6-minute bus ride on the Yokohama municipal bus Line from “Tsurumi” station of the JR
Keihin Tohoku Line.
The area where the property is located has excellent traffic access to business centers such as“Yokohama” station, “Kawasaki” station and “Shinagawa” station by the JR Keihin Tohoku Line andNegishi Line. Furthermore, there are multiple leafy parks in the neighborhood, providing a nice living
environment.
Regarding property characteristics, the property is a family type residence with a total of 44 housing
units, all with 3LDK floor plans (66 ㎡). The property is currently being leased under a bulk leaseagreement to a firm as a company housing, and stable income is anticipated. In January 2016, theproperty has undergone large-scale repair works, including repair of external wall tiles andwaterproofing works.
The decision to acquire the property was made as a result of having comprehensively considered theabove stated location features and property characteristics, as it was determined that the property will
generate stable profits in the mid-to long-term and will contribute to the improvement of stability of
portfolio income. Urban Park Tsurumi is to be acquired as a bilateral negotiated transaction through theAsset Manager’s own unique network.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

6

3.

Summary of Assets to be Acquired
Overview of Assets to be Acquired is shown in the tables (1)-(7) below. For a glossary of the terms used in thetables, please refer to “Reference Material 5, The terms used in the table of Description of Assets to be

Acquired” below.
（１）OHA Building
Property
Property
OFC-22
No
nameOverview of specified asset
Type of specified asset

OHA BuildingType

Beneficiary interest in trust

OfficeTrusteeMizuho Trust & Banking Co., Ltd.

Planned acquisition price 1,804 million yen

Planned acquisition dateAugust 19, 2021

Appraised value

1,950 million yen

SellerGK SAPR7

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

1-10-2 Akebono-cho, Tachikawa-shi, Tokyo
1-22-17 Akebono-cho, Tachikawa-shi, Tokyo
Approx. 9-minute walk from “Tachikawa” Station of JR Chuo Line and Nambu Line
Proprietary ownership
964.80㎡ (Note 1)

Use district

Commercial district (Note 2)

80％

Floor area ratio

500％ (Note 2)

Use

Office / Retail / Parking

Structure and floors

Reinforced concrete /Steel-framed
structure 1 floor below ground 6 floors
above ground

Proprietary ownership
4,659.20㎡

Construction
May 30, 1990
completion
Property managementcompany

Japan Property Solutions Co., Ltd. Master lease company

Type of master lease

Pass-through Security Unsecured

Trust expiration dateAugust 31, 2031

Pass-through Security
Unsecured

SAR
Pass-through Security Unsecured

Status of leasing (as of end of April 2021)
Total leasable are

3,346.08㎡

Total leased area

3,346.08㎡

Total number of tenants

3

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

10,304,000 yen
61,824,600 yen

Occupancy rate
December 2020
100.0％

January 2021
100.0％

February 2021

March 2021

100.0％

April 2021

100.0％

100.0％

Special notation
Not applicable.
(Note 1) Includes a setback area of 29.88㎡.
(Note 2) The land of the property crosses over 2 types of use districts and districts with differing floor-area ratio requirements (commercial district
500% and neighborhood commercial district 300%), and the allowed floor-area ratio based on weighted average calculation is 449.14%.

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Description
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

7

i)

The property located at an approximate 9-minute walk from “Tachikawa” station on the JR Chuo Line and the JR
Nambu Line, which is the center of the Tama area.
ii) The property is competitive in the area as the standard floor area is approximately 170 tsubo.
iii) The building has a parking lot for 22 cars, which is a facility level satisfactory to branches and sales offices of business
which are expected as potential tenants in the area.
(2) Acquisition Highlight
Information regarding the property has been obtained through the Asset Manager’s own unique network, and the property is
expected to be acquired as a bilateral negotiated transaction (the Sponsor Group’s warehousing function will be exercised).
(<Warehousing>)

Market analysis and independent analysis by the Asset Manager(1) Transition of the Daily Average Number of Passengers using JR “Tachikawa” station
Prior to the COVID-19 pandemic, the daily average number of passengers using JR “Tachikawa” station was maintained at over
160 thousand passengers; however, amid COVID-19, in 2020, the number decreased to slightly above 120 thousand
passengers. This is due to effects of the request to stay home given the COVID-19 pandemic, however, the Asset Manager
believes that the number of passengers will recover as the pandemic converges.
(number of people)
200,000＜Daily Average Number of Passengers using JR “Tachikawa” Station＞

163,903

165,645

167,108

168,512

166,636

150,000
122,033
100,000

50,000

0
2015

2016

2017

2018

2019

2020

Daily Average Number of Passengers

Source:Prepared by the Asset Manager based on East Japan Railway Company’s “Number of Passengers by Station”.

(2) Market Analysis
As stated above, although the number of passengers decreased in the fiscal year 2020, rent levels have remained strong since
the first half of 2016 as shown below in the graph of transition of the rent index. Also, regarding vacancy rates, as shown in thegraph below on the transition of vacancy rates, although vacancy rates rose to approximately 3.8% in the first half of 2018, inother periods including 2020, the level has remained low at 1% or lower, and the Asset Manager believes that the strong
demand for offices in the same area will continue going forward.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

8

＜Tachikawa-shi Rent Index and Vacancy Rates＞
120

4.5%
4.0%

110

3.5%

100

3.0%
2.5%

90

2.0%

80

1.5%
1.0%

70

0.5%

60

0.0%
2016
1H

2016
2H

2017
1H

2017
2H

2018
1H

Rent Index (Left)

2018
2H

2019
1H

2019
2H

2020
1H

2020
2H

Vacancy Rate (Right)

Source: Prepared by Japan Real Estate Institute (“JREI”) based on data disclosed by listed REITs(for offices in Tachikawa-shi (however, excluding any properties which were sold or purchased during
the above periods)).
1H means 1st half of the year (January to June), and 2H means the latter half of the year (July to December).
Note: The rent index has been prepared with the level at the 1st half of 2016 being 100.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to obtain stable income in the mid-to long-term.
(1) JR “Tachikawa” station is a terminal station which has the Chuo Line and Nambu Line riding in, and has direct access to“Shinjuku” station and “Tokyo” station, and good access to Central Tokyo. Furthermore, given the opening of TamaMonorail in the year 2000, traffic connecting the North and South has become convenient, and the Tama district hasdeveloped as a business hub by leveraging such convenience.
(2) Office rent levels of Tachikawa-shi have transitioned strongly since 2016, and vacancy rates have remained low at 1% orlower since 2019, and the area is expected to enjoy stable tenant demand.
(3) The property is a multi-tenant office building located at an approximate 9-minute walk from “Tachikawa” station on the JR
Line, and is believed to be competitive in the area given its standard floor area of approximately 170 tsubo. The exteriorview of the building and facilities have been maintained and managed well, and the overall grade of external furnishingsetc. is standard within the area. Furthermore, the building has a parking lot for 22 cars, and the facility is expected to satisfy
the needs of branches and sales offices which are the assumed tenant category for the area.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

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

OHA Building

Appraisal value

1,950,000,000

Appraisal firm

DAIWA REAL ESTATE APPRAISAL CO.,LTD.

Date of value

June 1, 2021
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details
1,950,000,000

Description, etc.
Preliminary calculation made mainly based on price under the DCF method, andverified using price under the direct capitalization method.

1,960,000,000(1)Operating revenue ((a)−(b))

131,786,500(a)Gross potential income

138,831,000
Recorded taking into consideration the average vacancy rate in the area,
competitiveness of the subject real estate, etc.

(b) Vacancy loss, etc.

7,044,500(2) Operating expenses

38,163,240

Maintenance andmanagement Fee

7,557,960

Recorded by judging the scheduled agreement fee to be appropriate.

Utilities expenses

13,360,000

Appraised by reference to the level of similar real estate.

Repair expenses

2,387,833

Appraised based on the ER.

Property management fee

2,612,841

Recorded by judging the scheduled agreement fee to be appropriate.

Tenant leasing cost, etc.

984,313

Property taxes
Insurance premium

9,123,400
314,893

Other expenses

1,822,000(3) Net operating income(NOI=(1)−(2))

93,623,260(4) Financial interests on deposits

576,926(5) Capital expenditures

6,045,035(6) Net cash flow
(NCF=(3)+(4)−(5))

88,155,151(7) Capitalization rate
Indicated value of DCF method

4.5％

Recorded the amount equivalent to 1 month rent to be paid by newly occupying
tenant by reference to the level of similar real estate.
Appraised by reference to the actual data.
Recorded by judging the estimated amount to be appropriate.
Appraised based on the actual data.

Appraised investment return as 1.0%.
Appraised based on the ER.

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

1,940,000,000

Discount Rate

4.3％

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

Terminal capitalization rate

4.7％

Appraised by reflecting aging risk, market trend risk, etc.

Indicated value by cost approach

1,710,000,000

Ratio of land

81.9％

Ratio of building

18.1％

Matters considered in reconciliation of indicated values anddetermination of appraisal values

Preliminary calculation made by adjusting the replacement cost for value reduction
items.

Determined based on the income approach value, while also referring to theintegrated price.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

10（２）Urban Center Hakata
Property
Property
OFC-23
no.
nameOverview of specified asset
Type of specified asset

Urban Center Hakata

Type

Beneficiary interest in trust

OfficeTrustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 2,870 million yen

Planned acquisition dateAugust 19, 2021

Appraisal value

3,030 million yen

SellerStar Asia Sogo Kaihatsu Co. Ltd.

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

3-6 Hakataeki Minami, Hakata-ku, Fukuoka-shi, Fukuoka

Type of master lease

Pass-through Security Unsecured Security

Trust expiration dateAugust 31, 2031

3-1-10 Hakataeki Minami, Hakata-ku, Fukuoka-shi, Fukuoka
Approx. 9-minute walk from “Higashihie” Station of Fukuoka City Subway Airport Line
Proprietary ownership
656.72㎡

Use district

Commercial district

80％

Floor area ratio

500％

3,566.56㎡

Use

Office / Retail / Parking

August 27, 2020

Structure and floors

Steel-framed structure 8 floors above
groundJones Lang LaSalle, Inc.

Master lease company

SAR (Note)

Proprietary ownership

Unsecured

Status of leasing (as of end of April 2021) (Note)
Total leasable area

2,639.18㎡

Total leased area

2,639.18㎡

Total number of tenants

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

12,773,000 yen
66,924,000 yen

Occupancy rate
December 2020
13.4％
(Note)

January 2021
13.4％

February 2021
13.4％

March 2021
26.9％

April 2021
40.3％

For a period of approximately one year from August 19, 2021 to August 31, 2022, SAR will lease the property to Star Asia Sogo Kaihatsu under arent-guarantee type master lease agreement. After such contract period expires, SAR will succeed to the status of Star Asia Sogo Kaihatsu as thesublessor, and plans to enter into a pass-through type lease agreement.

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Descriptioni)
The property is located approximately 11 minute walk from “Hakata” station of the JR Line and the Fukuoka City Airport
Line, which is the largest terminal station in the Kyushu region, and approximately 9 minute walk from “Higashihie”
station of the Fukuoka City Airport Line and the building has good traffic convenience by facing Chikushi-dori street.
ii) The property is a rare multi-tenant office building whose construction was completed in September 2020, and its
exterior view has a glass curtain wall, a standard floor lease area of over 100 tsubo, and ceiling height of 2,800mm.
(2) Acquisition Highlight
The property is the first office development project of Star Asia Sogo Kaihatsu which belongs to the Sponsor Group, and SAR
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

11

expects to acquire the property by exercising the preferential negotiation right obtained from Star Asia Sogo Kaihatsu.

Market analysis and independent analysis by the Asset Manager(1) Transition of the Daily Average Number of Passengers using JR “Hakata” station
The daily average number of passengers of JR “Hakata” station showed an increasing trend since 2015, however, it isconceived that the 2020 level has been significantly affected by the COVID-19 pandemic. However, as “Hakata” station is theentrance to the largest foothold city in the Kyushu region, the Asset Manager believes that the impact of COVID-19 will
dissolve as the pandemic converges.
(number of people)
200,000＜Daily Average Number of Passengers using JR “Hakata” Station＞

150,000
118,082

121,370

124,436

126,213

126,627

2015

2016

2017

2018

2019

100,000

50,0000Daily Average Number of Passengers

Source: Prepared by the Asset Manager based on Kyushu Railway Company’s “Top 300 Stations by Number ofPassengers” and their disclosed materials.
(2) Market Analysis
As shown in the graph below of transition of the rate index, rent levels have shown an increasing trend and have remained
strong since the first half of 2016 and even during 2020 which was affected by COVID-19 pandemic.
As shown in the transition of vacancy rates in the graph below, vacancy rates have remains at low levels of 2% or less since
the first half of 2016. The Asset Manager believes that the strong demand for offices in the area will continue going forward.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

12

<Fukuoka-shi, Fukuoka Prefecture - Rent Index and Vacancy Rates>
120

1.8%
1.6%

110

1.4%

100

1.2%
1.0%

90

0.8%

80

0.6%
0.4%

70

0.2%

60

0.0%
2016
1H

2016
2H

2017
1H

2017
2H

2018
1H

Rent Index (Left)

2018
2H

2019
1H

2019
2H

2020
1H

2020
2H

Vacancy Rate (Right)

Source: Prepared by Japan Real Estate Institute (“JREI”) based on data disclosed by listed REITs (for offices inFukuoka-shi (however, excluding any properties which were sold or purchased during the above periods)).
1H means 1st half of the year (January to June), and 2H means the latter half of the year (July to December).
Note: The rent index has been prepared with the level at the 1st half of 2016 being 100.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to obtain stable income in the mid-to long-term.
(1) JR “Hakata” station is the largest terminal station in the Kyushu region in terms of size and number of passengers. Also,
Fukuoka City Airport Line’s “Hakata” station is the second largest station next to “Tenjin” station in terms of the number ofpassengers.
(2) In the area surrounding “Hakata” station, Fukuoka-shi is promoting the “Hakata Connected” project as a public-private
initiative which is expected to further develop the area.
(3) Fukuoka-shi’s rent levels have shown an increasing trend since 2016, and vacancy rates have continued to be low at 2% orlower, and therefore it is believed that the property will have stable tenant demand. The property is an office building
whose construction was completed in September 2020, and is located in the business district east of the station centeredon Chikushi-dori street running from JR Line and Fukuoka City Airport Line “Hakata” station Chikushi exit. The property iscompetitive in the area as it has a standard floor area of approximately 107 tsubo and a ceiling height of 2,800mm, and theoverall grade of its facilities and exterior and interior design etc. is at a standard level among new office buildings in thearea.
(4) With respect to this property, it is expected that a rent-guarantee type master lease agreement will be signed with Star Asia
Sogo Kaihatsu who is a member of the Sponsor group, for a fixed period (from August 19, 2021 to August 31, 2022
(scheduled)), and by utilizing the said agreement, stable income and upside in rents after the leases mature are anticipated.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

13

(unit: yen)
Summary of real estate appraisal report
Property nameUrban Center Hakata

Appraisal value

3,030,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

June 1, 2021
Item

Indicated value by income approach

Details

Details

3,030,000,000

Indicated value by direct capitalization
method3,080,000,000(1) Operating revenue ((a)−(b))

175,576,000(a) Gross potential income

185,014,000(b) Vacancy loss, etc.

9,438,000(2) Operating expenses

49,302,000

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

Recorded based on current rent etc.
Appraised based on the level of similar real estate, the situation of tenants,the terms
and conditions of lease agreement and determined loss on vacancy, etc

Maintenance and managementfee

8,040,000

Appraised based on the actual amount and the level of similar real estate.

Utilities expenses

23,160,000

Appraised based on the actual amount and the level of similar real estate.

Repair expenses

621,000

Appraised based on the repair expenses on the ER and the level of similar real estate.

Property management fee

3,056,000

Appraised based on the conditions of agreement and the level of similar real estate

Tenant leasing cost, etc.

1,261,000

Appraised based on the anticipated turnover period of the tenant.

Property taxes

12,865,000

Appraised based on the actual data.

Insurance premium

247,000

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

Other expenses

52,000Recorded by the actual data.

(3) Net operating income(NOI=(1)−(2))

126,274,000(4) Financial interests on deposits

1,505,000

Appraised investment return as 1.0%.

(5) Capital expenditures

1,510,000

Appraised based on the capital expenditures on the ER and the level of similar realestate.

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

126,269,000
4.1％

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

2,970,000,000

Discount rate

3.9％

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

Terminal capitalization rate

4.3％

Appraised by reflecting aging risk, market trend risk, etc.

Indicated value by cost approach

2,880,000,000

Ratio of land

55.3％

Ratio of building

44.7％

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Estimated by multiplying the total of the land price and the building price bymarketability correction rate.

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

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

14

（３）BAGUS Ikebukuro West
Property
RTL-05
no.
Status of master leasing

Property
nameType of specified asset

Beneficiary interest in trust

TrusteeMizuho Trust & Banking Co., Ltd.

Planned sales price

2,984 million yen

Planned transfer dateAugust 19, 2021

Appraisal value

3,240 million yen

SellerGK Contender

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

1-33-7 Nishi ikebukuro, Toshima-ku, Tokyo and other

BAGUS Ikebukuro WestType

Retail

1-33-2 Nishi ikebukuro, Toshima-ku, Tokyo
Approx. 2-minute walk from”Ikebukuro” station of JR Line
Proprietary ownership
264.15㎡

Use district

Commercial district

80％

Floor area ratio

800％ (Note 1)

Use

Amusement center・Office

Structure and floors

Steel-framed reinforced concrete
structure 2 floors below ground / 8 floors
above ground

Master lease company

SAR

Proprietary ownership
1,497.45㎡

Construction
November 20, 1992
completion
Property managementcompany

Marimo Co., Ltd.

Type of master lease

Pass-through Security Unsecured Security

Trust expiration dateAugust 31, 2031

Unsecured

Status of leasing (as of end of April 2021)
Total leasable area

1,497.45㎡

Total leased area

Not disclosed (Note 2)

Total number of tenants

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

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

Occupancy rate
December 2020
100.0％
Special notation

January 2021
100.0％

February 2021
100.0％March 2021

April 2021

100.0％

100.0％

Not applicable.

(Note 1) Given the width of the front road, the standard floor-area ratio is 480%; however easing provisions will be applied due to the distance tostrategic roadways, and the permitted floor-area ratio will be 607.50%.
(Note 2) Not disclosed because the consent for disclosure has not been obtained from the end tenant.

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Descriptioni)
The property is a commercial building located at an approximate 2-minute walk from “Ikebukuro” station, which is the
2nd largest station next to Shinjuku station within the JR Lines in terms of the number of passenger usage.
ii)
Within the west exit area where many small-size roadside shops and food and beverage stores gather, the property isappealing to tenants given its highly visibility (located at a corner plot) and size (standard floor area of 60 tsubo).
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

15

iii)
The entire building is leased to a single tenant entertainment company, and stable income is anticipated.
(2) Acquisition Highlight
The property is a bilateral negotiated transaction obtained through the broad relationship of the Sponsor Group, and is
expected to be acquired exercising the preferential negotiation right obtained by SAR from the Sponsor Group. (<Sponsor
Fund>)

Market analysis and independent analysis by the Asset Manager(1) The number of passengers of JR “Ikebukuro” station prior to COVID-19 pandemic was at a high level and the second largest
next to “Shinjuku” station at more than 550 thousand passengers; however, in 2020, given the COVID-19 pandemic, thenumber decreased to slightly over 370 thousand passengers. This is due to the request to stay home due to the COVID-19
pandemic, and given that “Ikebukuro” station is a major terminal station within Tokyo and a strategic point oftransportation, the Asset Manager believes that the number of passengers will recover as the COVID-19 pandemic
converges.
(number of people) ＜Daily Average Number of Passengers using JR “Ikebukuro” Station＞
600,000
566,994566,516
559,920558,623556,780
550,000
500,000
450,000
376,350

400,000
350,000
300,000
250,000
200,000
150,000
100,000
2015

2016

2017

2018

2019

2020

Daily Average Number of Passengers

Source: Prepared by the Asset Manager based on East Japan Railway Company’s “Number of Passengers by Station”.
(2) Market Analysis
The annual retail sales amount of the Ikebukuro area is in third place following the Shinjuku and Ginza areas. Furthermore,
the area’s sales efficiency by tsubo is also in third place, and is higher than in the Shibuya and Omotesando areas, and theAsset Manager believes that the area is expected to enjoy steady tenant demand.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

16

（million yen）<Annual Retail Sales Amounts in Tokyo’s Main Commercial Areas>
1,000,000
872,975
900,000
800,000
700,000
567,521600,000
515,179
500,000
349,009400,000
300,000
146,553
200,000
100,000
0
Ikebukuro
Omotesando
Ginza
Shinjuku
Shibuya

Source: Ministry of Economy, Trade and Industry “2014 Current Survey of Commerce”
Note: Based on the market report prepared by CBRE K.K. on request of the Asset Manager.

<Tokyo’s main commercial areas - Sales efficiency by tsubo permonth (annual retail sales amount /sales floor area)>（10thousand yen/tb）

100

80
80
60

76

56

54

48

40
20
0
Ikebukuro

Omotesando

Ginza

Shinjuku

Shibuya

Source: Ministry of Economy, Trade and Industry “2014 Current Survey of Commerce”.
Note: Based on the market report prepared by CBRE K.K. on request of the Asset Manager.
(3) The Asset Manager’s Own Analysis
In the Ikebukuro station’s west exit area, redevelopment projects for the “Ikebukuro Station West Exit District” and“Nishi-Ikebukuro 1-Chome District” are planned, and it is envisioned that the scenery surrounding Ikebukuro station’s west
exit area will drastically change going forward. The Asset Manager believes that after such redevelopment projects arecompleted, the areas ability to attract customers will improve and the value of the entire area will rise, and the migration ofvisitors will have a positive spillover effect to attract tenants to the property.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

17

< Ikebukuro West Exit District Redevelopment Project >Source: Prepared by the Asset Manager based on the Outline of regional revitalization committee around
Ikebukuro Station’s disclosed materials.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to obtain stable income in the mid-to long-term.
(1) The “Ikebukuro” station west exit area where the property is located is a busy downtown area of mainly food and beverage
stores, and where many small-size roadside shops stand. Also, given the “Ikebukuro” Station West District Redevelopment
Project etc., the redevelopment of the surrounding area will progress and it is expected that the area will further prosper as
a commercial district and the value of the property as real estate will increase.
(2) Ikebukuro area’s annual retail sales amount and sales efficiency by tsubo per month ranks at high levels within the Tokyo’s
main commercial areas next to Shinjuku and Ginza, and it is believed that consumption within the Ikebukuro area will
recover after the COVID-19 pandemic converges.
(3) The property is located very close at an approximate 2-minute walk from the “Ikebukuro” station of the JR Line and theTokyo Metro Line, which is the huge terminal station and the visibility of the property is high as it is located on a corner plot.
The property’s standard floor area is approximately 60 tsubo, which is more or less an adequate size compared to generalarea needs (30 to 50 tsubo), and it is believed to be highly appealing to food and beverage stores and service sector tenants.
In addition, if a tenant uses multiple floors, the ability to create a façade is believed to be positively evaluated.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

18

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

BAGUS Ikebukuro West

Appraisal value

3,240,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

June 1, 2021
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

Not disclosed (Note)
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

Details

Description, etc.

3,240,000,000

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

3,300,000,000
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
Not disclosed(Note)
121,496,000
Not disclosed(Note)
Not disclosed(Note)
118,926,000
3.6％

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

3,170,000,000

Discount rate

3.4％

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

Terminal capitalization rate

3.8％

Appraised by reflecting aging risk, market trend risk, etc.

Indicated value by cost approach

2,460,000,000

Ratio of land

94.6％

Ratio of building

5.4％

Estimated by multiplying the total of the land price and the building price bymarketability correction rate.

Matters considered in reconciliation of indicated values andDetermined using the indicated value by income approach as standard and bydetermination of appraisal valuereference to the indicated value by cost approach.
(Note) Not disclosed, as consent 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. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

19

（４） Urban Park Ryogoku
Property
Property
RSC-18
No.
nameOverview of specified asset
Type of specified asset

Urban Park Ryogoku

Type

Beneficiary interest in trust

Residence

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 1,115 million yen

Planned acquisition dateAugust 19, 2021

Appraised value

1,190 million yen

SellerSHIMIZU COMPREHENSIVE DEVEROPMENT

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

3-8-2 Kamezawa, Sumida-ku, Tokyo and otherType of master lease

Pass-through Security Unsecured Security

Trust expiration dateAugust 31, 2031

3-12-5 Kamezawa, Sumida-ku, Tokyo
Approx. 9-minute walk from”Ryogoku” station of Toei Oedo Line
Proprietary ownership
669.98㎡

Use district

Neighborhood commercial zone

80％

Floor area ratio

400％ (Note)

2,351.42㎡

Use

Store・Apartment

October 31, 1997

Structure and floors

Steel-framed reinforced concrete
Structure 9 floors above ground

SHIMIZU COMPREHENSIVE
DEVEROPMENT

Master lease company

SHIMIZU COMPREHENSIVE DEVEROPMENT

Proprietary ownership

Unsecured

Status of leasing (as of end of April 2021)
Total leasable are2,304.23㎡

Total leased area

2,304.23㎡

Total number of tenants

33

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

5,406,000 yen
7,715,200 yen

Occupancy rate
December 2020
100.0％
Special notation

January 2021
97.1％

February 2021
100.0％March 2021

April 2021

100.0％

100.0％

Not applicable.

(Note) The land of the property is situated crossing over two different use districts and districts with differing floor-area ratio requirements(neighborhood commercial zone 400% and semi-industrial zone 300%), however, given the Kamezawa District Planning, the permitted
floor-area ratio will be 454.59%.

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Descriptioni)
The property is located in a highly convenient area within 20-minute access from “Ryogoku” station and “Kinshicho”
station using the JR Lines, Toei subway Lines, and Tokyo Metro Line to major business districts (Tokyo, Otemachi,
Shinjuku, and Shinagawa).
ii) The property has a total of 32 housing units of 60-70㎡ with 3LDK room layouts and is highly appealing to families, also
given that there are supermarkets, commercial facilities, and medical facilities in the neighborhood as well as childcare
support services provided by Sumida-ku to its residents.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

20

iii)

The current rent level of existing tenants is lower than the surrounding market due to being operated as Sumida-ku’s
Specified Excellent Rental Housing (Note) , but future rent upside can be expected.
(2) Acquisition Highlight
The property information was obtained through the Asset Manager’s own unique network, and is expected to be acquired
through a bilateral negotiated transaction (the property will be secured though a sponsor forward commitment by Star Asia
Sogo Kaihatsu of the Sponsor Group) (<Outside acquisition> <Bilateral negotiated transaction>)(Note) “Specified Excellent Rental Housing” means rental housing supplied based on the Act on Promotion of Supply of Specified Excellent Rental
Housings, where rental housing with satisfactory living environment is supplied to mid-class income persons.

Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
As the population and number of households of Sumida-ku of Tokyo is showing an increasing trend, the Asset Manager
believes that the population and number of households of the area will continue to increase stably in the future as well.

(Number of people)
300,000<Sumida-ku, Tokyo-Population and Number of Households>(Households)
160,000

290,000
280,000

140,000

270,000
260,000

120,000

250,000
240,000

100,000

230,000
220,000

80,000210,000
200,000

60,000
2012

2013

2014

2015

Population (Left)

2016

2017

2018

2019

2020

Households (Right)

Note: For the years 2012 and 2013, the figures stated are as of the end of each fiscal year (March 31), and for the years
from 2014 to 2020, the figures stated are as of January 1 of each year.
Source: Prepared by the Asset Manager based on the “Survey on Population, Demography and Number of Households
based on the Basic Resident Registration Cards” published by the Ministry of Internal Affairs and Communications Statistics
Bureau.
(2) Market Analysis
As shown in the transition of the rent index in the graph below, rent levels in Sumida-ku of Tokyo since the first half of 2016
have been more or less flat and have remained stable.
As shown in the transition of vacancy rates in the graph below, vacancy rates have remained at low levels of roughly 3% orless since the first half of 2016. Given past trends of the area, the Asset Manager believes that rent levels and vacancy rates
will remain stable going forward.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

21

<Sumida-ku, Tokyo - Rent Index and Vacancy Rates>
110

3.5%

100

3.0%
2.5%

90

2.0%
80
1.5%
70

1.0%

60

0.5%

50

0.0%
2016
1H

2016
2H

2017
1H

2017
2H

2018
1H

Rent Index (Left)

2018
2H

2019
1H

2019
2H

2020
1H

2020
2H

Vacancy Rate (Right)

Source: Prepared by Japan Real Estate Institute (“JREI”) based on data disclosed by listed REITs (for residences in
Sumida-ku of Tokyo Prefecture (however, excluding any properties which were sold or purchased during the above
periods)).
1H means 1st half of the year (January to June), and 2H means the latter half of the year (July to December).
Note:The rent index has been prepared with the level at the 1st half of 2016 being 100.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to obtain stable income in the mid- to long-term.
(1) Sumida-ku is an area with convenient commuting access to the main business districts in the Central Tokyo (Tokyo,
Otemachi, Shinjuku, Shinagawa) by using the train, and as both the population and number of households in the area havecontinued to grow since 2012, the area is expected to enjoy a stable increase in population and number of households inthe future as well. In particular, Ryogoku and Kinshicho area where the property is located is highly convenient as it has goodaccess to the main business districts (Tokyo, Otemachi, Shinjuku, and Shinagawa) within 20 minutes by taking the JR Lines,
Toei subway Lines or Tokyo Metro Line from “Ryogoku” station and “Kinshicho” station.
(2) The Sumida-ku area is expected to enjoy stable increase in population and number of households in the future as well.
Furthermore, in the rental housing market in Sumida-ku, rent levels are stable and vacancy rates continue to be low.
(3) The property consists of 32 housing units sized from 60-70 ㎡ with 3LDK room layouts, as well as 1 compartment for stores.
The property is believed to be highly appealing to families, and there are supermarkets, commercial retail facilities, andmedical facilities in the neighborhood, and residents may also use childcare support services provided by Sumida-ku for its
residents.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

22

(Unit：Yen)
Summary of Real Estate Appraisal Report
Property nameUrban Park Ryogoku

Appraisal value

1,190,000,000

Appraisal firm

The Tanizawa Sogo Appraisal Co., Ltd.

Date of value

June 1, 2021
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details

Description, etc.

1,190,000,000

Estimated by using the indicated value by DCF method as standard and verifying with
the indicated value by direct capitalization method.

1,220,000,000(1)Operating revenue ((a)−(b))

68,845,678(a)Gross potential income

73,059,335(b) Vacancy loss, etc.

4,213,657(2) Operating expenses

17,445,593

Appraised by reference to the actual data, etc.

Maintenance and managementFee3,180,251

Recorded based on property management contract.

Utilities expenses

1,106,174

Appraised based on income of similar cases.

Repair expenses

2,410,948

Appraised based on the ER and similar cases

Property management fee

1,999,934

Recorded based on property management contract.

Tenant leasing cost, etc.

3,170,017

Property taxes

3,655,300

Insurance premium

201,827

Other expenses

1,721,142(3) Net operating income(NOI=(1)−(2))

51,400,085(4) Financial interests on deposits

75,979(5) Capital expenditures

2,555,000(6) Net cash flow
(NCF=(3)+(4)−(5))

48,921,064(7) Capitalization rate
Indicated value of DCF method

4.0％

Appraised by reference to the actual data.
Estimated based on standard rate
Recorded based on income of similar cases

Appraised investment return as 1.0%
Appraised based on the ER and similar cases.

Appraised by comparing with cap rate of similar real estate and by reference toforecasted fluctuation of future net profit.

1,180,000,000

Discount Rate

4.1％

Appraised by comprehensively taking into account risks of the subject real estate.

Terminal capitalization rate

4.2％

Appraised by reflecting the capitalization rate and uncertainty of future prediction.

Indicated value by cost approach

1,220,000,000

Ratio of land

82.5％

Ratio of building

17.5％

Matters considered in reconciliation of indicated values anddetermination of appraisal values

Estimated by making depreciation adjustment to replacement cost of the subject realestate.

Determined based on the income approach value, and verified using the integrated
price.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

23

（５） Urban Park Mizonokuchi
Property
Property
RSC-19No.
nameOverview of specified asset
Type of specified asset

Urban Park Mizonokuchi

Beneficiary interest in trust

Type

Residence

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 2,019 million yen

Planned acquisition dateAugust 19, 2021

Appraised value

2,100 million yen

SellerNot disclosed(Note 1)

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

6-726-2 Futako, Takatsu-ku, Kawasaki-shi, Kanagawa
6-13-1 Futako, Takatsu-ku, Kawasaki-shi, Kanagawa
Approx. 8-minute walk from”Takatsu” station of Tokyu Den-en-toshi Line
Proprietary ownership
2,624.51㎡

Use district

Quasi-industrial zone

60％

Floor area ratio

200％

Use

Apartment

Structure and floors

Steel-framed reinforced concrete
structure roofing 1 floors below ground /5 floors above ground

Master lease company

HASEKO LIVENET, Inc.

Proprietary ownership
5,029.52㎡

Construction
August 23, 1988
completion
Property managementcompany

HASEKO LIVENET, Inc.

Type of master lease

Pass-through Security Unsecured Security

Trust expiration dateAugust 31, 2031

Unsecured

Status of leasing (as of end of April 2021) (Note 2)
Total leasable are

4,160.00㎡

Total leased area

3,931.74㎡

Total number of tenants

71

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

10,045,000 yen
3,933,000 yen

Occupancy rate
December 2020
94.8％
Special notation

January 2021

February 2021

96.7％

97.1％

March 2021
97.8％

April 2021
94.5％

Not applicable.

(Note 1) Not disclosed, because consent for disclosure has not been obtained from the Seller.
(Note 2) The above states the terms and conditions under a lease agreement between the sub-leasing company and the end tenant as of the end of April
2021. As of the same date, the sub-leasing company concluded a rent guarantee type sub-lease agreement with the tenant which has alreadyconcluded pass-through type lease agreement with the trustee, and had sub-leased to the end tenant based on such sub-lease agreement.
However, the sub-lease agreement was terminated on June 30, 2021.

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Descriptioni)
The property is located within walking distance from “Takatsu” station and “Mizonokuchi” station on the Tokyu
Denentoshi Line, and has good access to business centers such as “Shibuya” station and “Otemachi” station.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

24

ii)

In the surrounding areas, there are convenience stores and supermarkets etc. Also given that “Mizonokuchi” station is
one of the representative commercial centers in Kawasaki-shi, the property has high living convenience.
iii) In 2007, large-scale renovation works were conducted including for the exclusive owned areas. It has a total of 76
housing units, and is highly appealing to a wide range of residents from singles to DINKs and families as the floor area
ranges from 36.55㎡ to 91.42㎡ (mainly 40㎡ to 49㎡: 52 housing units).
(2) Acquisition Highlight
The property information was obtained through the Asset Manager’s own unique network, and is expected to be acquired as abilateral negotiated transaction by exercising the preferential negotiation right obtained by SAR from the current owner.
(<Outside acquisition><Bilateral negotiated transaction>)

Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
As the population and number of households of Takatsu-ku, Kawasaki-shi is showing an increasing trend, the Asset Manager
believes that the population and number of households of the area will continue to increase stably in the future as well.

(Number of people)
250,000<Takatsu-ku, Kawasaki-shi - Population and Number of Households>(Households)
120,000

240,000

110,000

230,000

100,000

220,000

90,000210,000

80,000200,000

70,000190,000

60,000180,000

50,000170,000

40,000160,000

30,000150,000

20,000
2012

2013

2014

2015

Population (Left)

2016

2017

2018

2019

2020

Households (Right)

Note: For the years 2012 and 2013, the figures stated are as of the end of each fiscal year (March 31), and for the years
from 2014 to 2020, the figures stated are as of January 1 of each year.
Source: Prepared by the Asset Manager based on the “Survey on Population, Demography and Number of Households
based on the Basic Resident Registration Cards” published by the Ministry of Internal Affairs and Communications
Statistics Bureau.
(2) Market Analysis
As shown in the transition of the rent index in the graph below, rent levels in Kawasaki-shi since the first half of 2016 havebeen more or less flat and have remained stable.
As shown in the transition of vacancy rates in the graph below, vacancy rates are showing a decreasing trend and remains
stable at low levels of roughly 3% or less since the first half of 2016. Given the historical trend of the area, the AssetManager believes that rent levels and vacancy rates will remain stable going forward.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

25

<Kawasaki-shi, Kanagawa Prefecture - Rent Index and Vacancy Rates>
110

7.0%

100

6.0%
5.0%

90

4.0%
80
3.0%
70

2.0%

60

1.0%

50

0.0%
2016
1H

2016
2H

2017
1H

2017
2H

2018
1H

Rent Index (Left)

2018
2H

2019
1H

2019
2H

2020
1H

2020
2H

Vacancy Rate (Right)

Source: Prepared by Japan Real Estate Institute (“JREI”) based on data disclosed by listed REITs (for residences in
Kawasaki-shi of Tokyo Prefecture (however, excluding any properties which were sold or purchased during the above
periods)).
1H means 1st half of the year (January to June), and 2H means the latter half of the year (July to December).
Note:The rent index has been prepared with the level at the 1st half of 2016 being 100.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to obtain stable income in the mid- to long-term.
(1)
Takatsu-ku of Kawasaki-shi is an area with convenient commuting access to the Central Tokyo as well as Kawasaki and
Yokohama business districts by using the train. Both the population and number of households in the area have continued
to grow since 2012, and it is believed to be an area where stable increase in population and number of households can be
expected in the future as well.
(2) By using the Tokyu Denentoshi Line, the property has good access to business centers, located approximately 19 minutes bytrain to “Shibuya” station and approximately 35 minutes by train to “Otemachi” station. Furthermore, surrounding “Takatsu”
station, there are convenient living facilities such as convenience stores and supermarkets etc. Also, the area has high living
convenience given that “Mizonokuchi” station is one of the representative commercial centers in Kawasaki-shi.
(3)
The property has undergone large-scale repair works including the exclusively owned areas in 2007, and has a total of 76
housing units. The property location has good access and living convenience, and offers a variety of floor plans to meet theneeds of various life stages, ranging in sizes from 36.55 ㎡ to 91.42 ㎡ (main size is 40 ㎡ to 49 ㎡: 52 units), and is aproperty with high appeal to a wide range of residents from single persons to DINKs and families. Furthermore, in the rental
housing market in Kawasaki-shi, rent levels are stable and vacancy rates continue to be low, and therefore the property isalso expected to have stable income.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

26

(Unit：Yen)
Summary of Real Estate Appraisal Report
Property nameUrban Park Mizonokuchi

Appraisal value

2,100,000,000

Appraisal firm

The Tanizawa Sogo Appraisal Co., Ltd.

Date of value

June 1, 2021
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details

Description, etc.

2,100,000,000

Estimated by using the indicated value by DCF method as standard and verifying with
the indicated value by direct capitalization method.

2,130,000,000(1)Operating revenue ((a)−(b))

129,186,419(a)Gross potential income

136,335,386(b) Vacancy loss, etc.

7,148,967(2) Operating expenses

31,009,333

Appraised by reference to the actual data, etc.

Maintenance and managementFee

5,491,200

Recorded based on property management contract.

Utilities expenses

2,046,720

Appraised based on income of actual data.

Repair expenses

4,389,560

Appraised based on the ER and similar cases

Property management fee

2,489,807

Recorded based on property management contract.

Tenant leasing cost, etc.

7,004,465

Property taxes

6,719,700

Insurance premium

413,339

Other expenses

2,454,542(3) Net operating income(NOI=(1)−(2))

98,177,086(4) Financial interests on deposits

50,601(5) Capital expenditures

4,500,000(6) Net cash flow
(NCF=(3)+(4)−(5))

93,727,687(7) Capitalization rate
Indicated value of DCF method

4.4％

Appraised by reference to the actual data.
Estimated based on standard rate
Recorded based on income of similar cases

Appraised investment return as 1.0%
Appraised based on the ER and similar cases.

Appraised by comparing with cap rate of similar real estate and by reference toforecasted fluctuation of future net profit

2,090,000,000

Discount Rate

4.5％

Appraised by comprehensively taking into account risks of the subject real estate.

Terminal capitalization rate

4.6％

Appraised by reflecting the capitalization rate and uncertainty of future prediction.

Indicated value by cost approach

2,240,000,000

Ratio of land

82.3％

Ratio of building

17.7％

Matters considered in reconciliation of indicated values anddetermination of appraisal values

Estimated by making depreciation adjustment to replacement cost of the subject realestate.

Determined based on the income approach value, and verified using the integrated
price.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

27

（６） Urban Park Miyamaedaira
Property
Property
RSC-20Urban Park Miyamaedaira
No.
nameOverview of specified asset

Type

Type of specified asset

Beneficiary interest in trust

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned sales price

1,060 million yen

Planned transfer dateAugust 19, 2021

Appraisal value

1,150 million yen

SellerStar Asia Sogo Kaihatsu Co. Ltd.

Location
Indication of residential
address
Nearest station
Type ofLand
ownership

2-20-3 Kodai, Miyamae-ku, Kawasaki-shi, Kanagawa ond other

Residence

2-20-13 Kodai, Miyamae-ku, Kawasaki-shi, Kanagawa
Approx. 5-minute walk from”Miyamae daira” station Tokyu Den-en-toshi Line
Proprietary ownership
1,239.53㎡

Use district

Category Ⅰ mid/high-rise oriented
residential zone

60％

Floor area ratio

150％

2,039.17㎡(including theattached building)

Use

Apartment

June 10, 2021

Structure and floors

3 floors above ground, steel framed withalloy plated steel single roof

HASEKO LIVENET, Inc.

Master lease company

HASEKO LIVENET, Inc.

Status of master leasing

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2031

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

Proprietary ownership

Status of leasing (as of end of April 2021) (Note)
Total leasable area

1,957.97㎡

Total leased area

0.0㎡

Total number of tenants

0Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

0 yen
0 yen

Occupancy rate(Note)
December 2020

January 2021-

Special notation

February 2021-

March 2021-

April 2021-

Not applicable.

(Note) Since the property’s construction was completed on June 10, 2021, the property was not yet occupied as of the end of April 2021.

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Descriptioni)Good access to the business centers of “Shibuya” station and “Otemachi” station by taking the Tokyu Denentoshi Line
from “Miyamaedaira” station.
ii) The property is a residence whose construction was completed in June 2021, and consists of a total of 49 housing units:
8 housing units targeting single persons with floor areas of 22-25㎡ and 1K/1DK floor plans, 41 housing units targeting
DINKs and families with floor areas of 33-55㎡ and 1LDK/2LDK floor plans.
iii) In the surrounding areas, there are convenient living facilities such as convenience stores and supermarkets etc. as well
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

28-

as medical facilities, cram schools, childcare facilities, education facilities, and parks, and provides high living
convenience to a wide range of residents from single persons to DINKs and families.
(2) Acquisition Highlight
The property is expected to be acquired exercising preferential negotiation rights obtained by SAR from Star Asia Sogo
Kaihatsu of the Sponsor Group, after Star Asia Sogo Kaihatsu secures the property by sponsor forward commitment at an
early stage of the redevelopment.

Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
As the population and number of households of Miyamae-ku, Kawasaki-shi is showing an increasing trend, the AssetManager believes that the population and number of households of the area will continue to increase stably in the future aswell.
< Miyamae-ku, Kawasaki-shi - Population and Number of Households>(Population)
250,000(Households)
120,000

240,000

110,000

230,000

100,000

220,000

90,000210,000

80,000200,000

70,000190,000

60,000180,000

50,000170,000

40,000160,000

30,000150,000

20,000
2012

2013

2014

2015

Population (Left)

2016

2017

2018

2019

2020

Households (Left)

Note: For the years 2012 and 2013, the figures stated are as of the end of each fiscal year (March 31), and for the years
from 2014 to 2020, the figures stated are as of January 1 of each year.
Source: Prepared by the Asset Manager based on the “Survey on Population, Demography and Number of Households
based on the Basic Resident Registration Cards” published by the Ministry of Internal Affairs and Communications
Statistics Bureau.
(2) Market Analysis
As shown in the transition of the rent index in the graph below, rent levels in Kawasaki-shi since the first half of 2016 havebeen more or less flat and have remained stable.
As shown in the transition of vacancy rates in the graph below, vacancy rates are showing a decreasing trend and remains
stable at low levels of roughly 3% or less since the first half of 2016. Given the historical trend of the area, the AssetManager believes that levels of rent and vacancy rates will remain stable going forward.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

29

<Kawasaki-shi, Kanagawa Prefecture - Rent Index and Vacancy Rates>
110

7.0%

100

6.0%
5.0%

90

4.0%
80
3.0%
70

2.0%

60

1.0%

50

0.0%
2016
1H

2016
2H

2017
1H

2017
2H

2018
1H

Rent Index (Left)

2018
2H

2019
1H

2019
2H

2020
1H

2020
2H

Vacancy Rate (Right)

Source: Prepared by Japan Real Estate Institute (“JREI”) based on data disclosed by listed REITs (forresidences in Kawasaki-shi (however, excluding any properties which were sold or purchased during
the above periods)).
1H means 1st half of the year (January to June), and 2H means the latter half of the year (July to December).
Note:The rent index has been prepared with the level at the 1st half of 2016 being 100.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to obtain stable income in the mid-to long-term.
(1) Miyamae-ku of Kawasaki-shi offers extensive public facilities and education facilities, and the population and number ofhouseholds has continued to show an increasing trend since 2012, and therefore, the area is expected to enjoy a stable
increase in population and number of households in the future as well.
(2) The property has good access to business centers, as it can access “Shibuya” station in approximately 25 minutes and“Otemachi” station in approximately 36 minutes by taking the Tokyu Denentoshi Line.
(3) The property is a residence whose construction was completed in June 2021 with a total of 49 housing units, which has
appeal to a wide range of people: housing units targeting single persons with floor areas of 22-25 ㎡ and 1K/1DK floor plans(8 housing units) and housing units targeting DINKs/ families with floor areas of 33-55 ㎡ and 1LDK/2LDK floor plans (41housing units). Surrounding “Miyamaedaira” station, there are convenient living facilities such as convenience stores andsupermarkets etc., medical facilities, and cram schools, as well as childcare facilities, education facilities, and parks, and isrecognized to provide high living convenience to a large range of residents from single persons to DINKS and families.
Furthermore, in the rental housing market in Kawasaki-shi, rent levels are stable and vacancy rates continue to be low, andtherefore the property is also expected to have stable income.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

30

(unit: yen)
Summary of real estate appraisal report
Property nameUrban Park MiyamaedairaAppraisal value

1,150,000,000

Appraisal firm

Daiwa Real Estate Appraisal Co., Ltd.

Date of value

June 1, 2021
Item

Indicated value by income approach
Indicated value by direct
capitalization method

Details

Description, etc.

1,150,000,000

Estimated by emphasizing the indicated value by DCF method and verifying with theindicated value by direct capitalization method.

1,180,000,000(1) Operating revenue ((a)−(b))

63,390,403(a) Gross potential income

66,695,523(b) Vacancy loss, etc.

3,305,120(2) Operating expenses

12,231,210

Maintenance andmanagement fee

1,421,448

Appraised by reference to the level of similar real estate.

Utilities expenses

355,362

Appraised by reference to the level of similar real estate.

Repair expenses

1,358,843

Appraised by reference to the level of similar real estate.

Property management fee

1,255,946

Appraised by reference to the level of similar real estate.

Tenant leasing cost, etc.

2,145,448

Recorded the amount equivalent to 1.5 month rent to be paid by newly occupying
tenant by reference to the level of similar real estate.

Property taxes

4,620,700

Recorded based on estimated tax

Recorded taking into consideration the average vacancy rate in the area,
competitiveness of the subject real estate, etc.

Insurance premium

115,663

Recorded by judging the estimated amount to be appropriate

Other expenses

957,800

Recorded based on the scheduled agreement fee(3) Net operating income(NOI=(1)−(2))

51,159,193(4) Financial interests on deposits

52,331(5) Capital expenditures

1,450,364(6) Net cash flow
(NCF=(3)+(4)−(5))

49,761,160(7) Capitalization rate
Indicated value by DCF method

4.2％

Appraised investment return as 1.0%
Appraised by reference to the level of similar real estate.

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

1,130,000,000

Discount rate

4.0％

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

Terminal capitalization rate

4.4％

Appraised by reflecting aging risk, market trend risk, etc.

Indicated value by cost approach

1,850,000,000

Ratio of land

69.1％

Ratio of building

30.9％

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Estimated by making depreciation adjustment to replacement cost.

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

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

31

（７）Urban Park Tsurumi
Property
Property
RSC-21
no.
nameOverview of specified asset
Type of specified asset

Urban Park Tsurumi

Type

Beneficiary interest in trust

Residence

TrusteeMizuho Trust & Banking Co., Ltd.

Planned acquisition price 1,113 million yen

Planned acquisition dateAugust 19, 2021

Appraisal value

1,190 million yen

Seller

A.D.Works corporation

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

4-90-14 Mukai-cho, Tsurumi-ku, Yokohama-shi, Kanagawa

Type of master lease

Pass-through Security Unsecured Security

Trust expiration dateAugust 31, 2031

4-90-1 Mukai-cho, Tsurumi-ku, Yokohama-shi, Kanagawa
Approx. 19-minute walk from”Tsurumi” station of Keikyu Line
Proprietary ownership
2,172.70㎡

Use district

Category Ⅰ residential zone

60％

Floor area ratio

200％

3,169.13㎡(including theattached building)

Use

Apartment

February 17, 1994

Structure and floors

Reinforced concrete structure slateroofing 6 floors above ground

HASEKO LIVENET, Inc.

Master lease company

HASEKO LIVENET, Inc.

Proprietary ownership

Unsecured

Status of leasing (as of the end of April 2021)
Total leasable area

3,145.41㎡

Total leased area

Not disclosed (Note )Total number of tenants

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

Not disclosed (Note )Not disclosed (Note )Occupancy rate
December 2020
100.0％
Special notation

January 2021
100.0％

February 2021
100.0％March 2021
100.0％

April 2021
100.0％

Not applicable(Note) The information is undisclosed as consent to disclosure has not been obtained from end tenants.。

Property Description and Acquisition Highlight based on the investigation by the Asset Manager(1) Property Descriptioni)
From the nearest “Tsurumi” station, by using the JR Lines and the Keihin Kyuko Line, “Yokohama” station can beaccessed in approximately 11 minutes, “Shinagawa” station in approximately 13 minutes, and Haneda Airport inapproximately 18 minutes.
ii) All housing units are 66㎡ (3LDK), and is highly appealing to families given that Tsurumi ward has few children on thewaiting list for childcare services, and in the surrounding area there are convenient living facilities such as convenience
stores and supermarkets etc.
iii) In 2016, large-scale renovation works were conducted including for the exclusive owned areas.
iv) A property that is expected to have stable occupancy under a lease agreement with a company as a company housing.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

32

(2) Acquisition Highlight
The property information was obtained through the Asset Manager’s own unique network, and it is expected to be acquired
as a bilateral negotiated transaction.
(<Outside acquisition> <Bilateral negotiated transaction>)

Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis etc.
As the population and number of households of Yokohama-shi, Tsurumi-ku is showing an increasing trend, the Asset Manager
believes that the population and number of households of the area will continue to increase stably in the future as well.
<Tsurumi-ku, Yokohama-shi - Population and Number of Households>(Number of people)
300,000(Households)
140,000

290,000
280,000

120,000

270,000
260,000

100,000

250,000
240,000

80,000230,000
220,000

60,000210,000
200,000

40,000
2012

2013

2014

2015

Population (Left)

2016

2017

2018

2019

2020

Households (Right)

Note: For the years 2012 and 2013, the figures stated are as of the end of each fiscal year (March 31), and forthe years from 2014 to 2020, the figures stated are as of January 1 of each year.
Source: Prepared by the Asset Manager based on the “Survey on Population, Demography and Number ofHouseholds based on the Basic Resident Registration Cards” published by the Ministry of Internal Affairs andCommunications Statistics Bureau.
(2) Market Analysis
As shown in the transition of the rent index in the graph below, rent levels in Yokohama-shi since the first half of 2016 havebeen more or less flat and have remained stable.
Vacancy rates, as shown in the transition of vacancy rates in the graph below, are showing a decreasing trend and remains
stable at low levels of roughly 2.5% to 4% or less since the first half of 2017. Given the historical trend in the area, the AssetManager believes that levels of rent and vacancy rates will continue to be stable going forward.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

33

<Yokohama-shi, Kanagawa Prefecture - Rent Index and Vacancy Rates>
110

5.0%
4.5%

100

4.0%
3.5%

90

3.0%
80

2.5%
2.0%

70

1.5%
1.0%

60

0.5%
50

0.0%
2016
1H

2016
2H

2017
1H

2017
2H

2018
1H

Rent Index (Left)

2018
2H

2019
1H

2019
2H

2020
1H

2020
2H

Vacancy Rate (Right)

Source: Prepared by Japan Real Estate Institute (“JREI”) based on data disclosed by listed REITs (for residences in
Yokohama-shi of Kanagawa Prefecture (however, excluding any properties which were sold or purchased during theabove periods)).
1H means 1st half of the year (January to June), and 2H means the latter half of the year (July to December).
Note: The rent index has been prepared with the level at the 1st half of 2016 being 100.

Comprehensive Evaluation by SAR: High Prospect for Stability of Income
Due to the reasons stated below, SAR believes that the property will be able to have stable income in the mid-to long-term.
(1) The Tsurumi area where the property is located enjoys direct access by train to main business areas such as Kawasaki,
Yokohama, and Shinagawa from its nearest “Tsurumi” station, and also enjoys convenient commuting access to the Central
Tokyo, and can access “Yokohama” station in approximately 11 minutes, “Shinagawa” station in approximately 13 minutes,
and Haneda Airport in approximately 18 minutes by taking the JR Lines and the Keihin Kyuko Line.
(2) Furthermore, the area has many business establishments and high schools and universities etc., and as both the populationand number of households in the area have continued to grow since 2012, the area is expected to enjoy a stable increase inpopulation and number of households in the future as well.
In 2016, large-scale renovation works were conducted on the property including for the exclusive owned areas, and theproperty has maintained adequate competitiveness. The property is highly appealing to families, given that Tsurumi-ku has
few children on the waiting list for childcare services, there are convenient living facilities such as convenience stores andsupermarkets etc. in the surrounding areas, and as all of the housing units are 66 ㎡ (3LDK). Furthermore, the rental
housing market in Yokohama-shi is expected to enjoy stable demand, given that rent levels are stable and vacancy rates
continue to be low.
(3) A property that is expected to have stable occupancy under a lease agreement with a company as a company housing.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

34

(unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Tsurumi

Appraisal value

1,190,000,000

Appraisal firm

The Tanizawa Sogo Appraisal Co., Ltd.

Date of value

June 1, 2021
Item

Indicated value by income approach
Indicated value by direct
capitalization method

Details

Description, etc.

1,190,000,000

Estimated by using the indicated value by DCF method as standard and verifying with
the indicated value by direct capitalization method.

1,200,000,000(1) Operating revenue ((a)−(b))

76,463,776(a) Gross potential income

80,312,788

Appraised by reference to the actual data, etc.

(b) Vacancy loss, etc.

3,849,012(2) Operating expenses

19,093,440

Maintenance andmanagement fee

3,564,000

Recorded based on property management contract.

Utilities expenses

1,069,200

Appraised based on income of similar cases.

Repair expenses

3,456,850

Appraised based on the ER and similar cases

Property management fee

1,464,625

Recorded based on property management contract.

Tenant leasing cost, etc.

3,232,548

Property taxes

5,007,600

Insurance premium

228,124

Other expenses

1,070,493(3) Net operating income(NOI=(1)−(2))

57,370,336(4) Financial interests on deposits

51,182(5) Capital expenditures

3,320,000(6) Net cash flow
(NCF=(3)+(4)−(5))

54,101,518(7) Capitalization rate
Indicated value by DCF method

4.5％

Appraised by reference to the actual data.
Estimated based on standard rate
Recorded based on income of similar cases

Appraised investment return as 1.0%
Appraised based on the ER and similar cases.

Appraised by comparing with cap rate of similar real estate and by reference toforecasted fluctuation of future net profit.

1,180,000,000

Discount rate

4.9％

Appraised by comprehensively taking into account risks of the subject real estate.

Terminal capitalization rate

4.7％

Appraised by reflecting the capitalization rate and uncertainty of future prediction.

Indicated value by cost approach

1,180,000,000

Ratio of land

82.0％

Ratio of building

18.0％

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Estimated by making depreciation adjustment to replacement cost of the subject realestate.

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

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

35

４．Seller Profile（１）OHA Building
Name
Location
Representative

Main business description

GK SAPR7
5-1-4 Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin SAPR Holding7
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
300,000 yen
October 5, 2018

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from the company.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
SAR holds 69 million yen (book value as of the end of January 2021) of Tokumei Kumiai (silent
Capital relationshippartnership) equity investments where the seller company is the proprietor and the managed
assets are trust beneficial interests where OHA Building is the underlying trust asset.
Personnel
There is no personnel relationship to report.
relationship
Business
There is no business relationship to report.
relationship
The seller does not fall under the category of interested person, etc. as provided in Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended, hereinafterreferred to as the “Investment Trust Act”), but falls under the category of interested party
Related party or noprescribed 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 conducting the acquisition of the assets, the Asset Manager has performed
deliberation and resolution in accordance with laws and regulations and the relevant rules.

（２）Urban Center Hakata、Urban Park Miyamaedaira
Name
Location
Representative

Main business description

Star Asia Sogo Kaihatsu Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo
Atsuo Umeki, Chief Executive Officer
1. Development, sale and purchase, exchange, holding, operating, brokerage, management, anddisposal of real estate.
2. Holding, sale and purchase, management, and disposal of bonds, trust beneficial interests,
Tokumei Kumiai (silent partnership) investment equity, and other securities and monetary claims.
3. Design and supervision of construction.
4. Contract and execution of civil engineering construction work.
5. General consulting services
6. – 9.Omitted
10. All business incidental to the above
100,000,000 yen
October 19, 2017

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from the seller.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

36Capital relationship

Personnel
relationship
Businessrelationship

Related party or no

There is no capital tie to be noted between SAR / the Asset Manager and the abovementioned
company, however the aforementioned company falls under the category of interested person, etc.
as provided in the Investment Trusts Act, and falls under the category of interested party
prescribed in the “Rules on Transactions with Interested Parties”, which is the voluntary rules set
forth by the Asset Manager for preventing conflict of interests regarding its management of SAR’s
assets. Upon determination of retainance as seller, the Asset Manager has performed deliberation
and approval in accordance with laws and regulations and the relevant rules.
There is no personnel relationship to report.
In the fiscal period ended January 31, 2021 (10th fiscal period), SAR entered in to a preferential
negotiation rights agreement with the aforementioned company.
The aforementioned company falls under the category of interested person, etc. as provided in theInvestment Trusts Act, and falls under the category of interested party prescribed in the “Rules on
Transactions with Interested Parties”, which is the voluntary rules set forth by the Asset Manager
for preventing conflict of interests regarding its management of SAR’s assets. Upon determinationof retainance as seller, the Asset Manager has performed deliberation and approval in accordancewith the voluntary rules.

（３）BAGUS Ikebukuro West
Name
Location
Representative

Main business description

GK Contender
5-1-4 Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Koshigoe
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 and othersecurities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All business incidental to the above
100,000 yen
October 1, 2015

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from the seller.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel
There is no personnel relationship to report.
relationship
Business
There is no business relationship to report.
relationship
The seller does not fall under the category of interested person, etc. as provided in the Investment
Trusts Act, however, it falls under the category of interested party prescribed in the “Rules on
Transactions with Interested Parties”, which is the voluntary rules set forth by the Asset Manager
Related party or nofor preventing conflict of interests regarding its management of SAR’s assets. Upon determinationof the retainance as seller, the Asset Manager has performed deliberation and approval inaccordance with laws and regulations and the relevant rules.

（４）Urban Park Ryogoku
Name
Location
Representative
Main business description

SHIMIZU COMPREHENSIVE DEVEROPMENT
2-13-11 Kyobashi, Chuo-ku, Tokyo
Konari Yotsumoto Chief Executive Officer
1. The sale and purchase, leasing, brokerage, management, and appraisal of real estate.
2. Construction, sale, leasing, and management of buildings such as residences, and reclamation

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

37

and sale of land.
3. Development projects related to urban development and regional development, related
environmental improvement, and surveys, planning, design, supervision, and management related
thereto.
4. Credit guarantees related to real estate transactions.
5. Consult for real estate.
6. Design, supervision and contract of construction and civil engineering works.
7. - 9．Omitted
10. All business incidental to the above
3,000,000,000 yen
November 9, 2000

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from the seller.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel
There is no personnel relationship to report.
relationship
SAR and the Asset Manager entrust property management services to the relevant company (theBusinessseller). Also, there are no business relationship to note between interested parties or affiliate
relationshipcompanies of SAR and the Asset Manager and interested parties or affiliate companies of therelevant company.
The seller does not fall under the category of interested person, etc. as provided in the Investment
Related party or no
Trust Act.

（５）Urban Park Mizonokuchi
Name
Domestic operating company
Location
Representative
Main business description
CapitalThe information is undisclosed as consent to disclosure has not been obtained from the seller.
EstablishedNet asset
Total asset
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel
There is no personnel relationship to report.
relationship
Business
There is no business relationship to report.
relationship
Related party or no
The seller does not fall under the category of interested person, etc. as provided in the Investment
Trust Act.

（６）Urban Park Tsurumi
Name
Location
Representative
Main business description

A.D.Works corporation
2-2-3Uchisaiwai-cho, Chiyoda-ku, Tokyo
Chief Executive Officer Hideo Tanaka
1. Sale of real estate and brokerage service.
2. Leasing, supervision, holding and management services of real estate.
3. Real estate appraisal service.
4. Consulting work related to real estate.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

38

5. Consulting work related to personal property.
6. Civil engineering, measurement, and design services.
7. Civil engineering and construction works.
8. Management of a registered architect office.
9. ～30．Omitted
31. All business incidental to the above
100,000,000 yen
May 5, 1936

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

５．Status of Parties Related to the Acquisition of the Property（１）OHA Building
Current owner, current trustee
Company name

GK SAPR7

Relationship withparties who havespecial interests

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

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

Acquisition
background andAcquired for investment management purpose―
reason, etc.
Acquisition price(Note)―
Acquisition period
February 28, 2019―
(Note)Omitted as the current owner has owned the property for over one year.

（２）Urban Center Hakata
Current owner, current trustee

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

Company nameStar Asia Sogo Kaihatsu Co., Ltd.

Relationship withparties who havespecial interests
Acquisition
background andreason, etc.
Acquisition price

The company fall under the category of interested
person, etc. as provided in the Investment Trusts
Act―

Acquired for investment development purpose―(Note)―(Land) November 30, 2018
Acquisition period―(Building) September 30, 2020
(Note) Land: Omitted as the current owner has owned the property for over one year.
Building: Omitted as development deal.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

39

（３）BAGUS Ikebukuro West
Current owner, current trustee
Company name

GK Contender

Relationship withparties who havespecial interests

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

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

Acquisition
background andAcquired for investment management purpose―
reason, etc.
Acquisition price(Note)―
Acquisition period
May 30, 2017―
(Note)Omitted as the current owner has owned the property for over one year.

（４）Urban Park Ryogoku、Urban Park Mizonokuchi、Urban Park Tsurumi
No acquisition from persons with special interest relationships with SAR or the Asset Manager.
（５）Urban Park Miyamaedaira
Current owner, current trustee

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

Company nameStar Asia Sogo Kaihatsu Co., Ltd.

Relationship withparties who havespecial interests
Acquisition
background andreason, etc.
Acquisition price
Acquisition period

The company falls under the category ofinterested person, etc. as provided in theInvestment Trust Act―

Acquired for investment management purpose―

943,000,000 yen
June 30, 2021――

６．Overview of broker（１）OHA Building、Urban Center Hakata、BAGUS Ikebukuro West、Urban Park Ryogoku、Urban Park Mizonokuchi、Urban Park Miyamaedaira、Urban Park Tsurumi①
Overview of broker
Name
Location
Representative
Main business description

CapitalEstablishedStar Asia Asset Advisors Co., Ltd.
Atago Green Hills MORI Tower, 18th Floor, 2-5-1 Atago, Minato-ku, Tokyo
CEO Keiji Watanabe
1. Investment management business prescribed in the Financial Instruments and Exchange Act.
2. Type II financial instruments business prescribed in the Financial Instruments and Exchange Act.
3. Investment advisory and agency business prescribed in the Financial Instruments and ExchangeAct.
4. Comprehensive real estate investment advisory business.
5. Business based on the Real Estate Specified Joint Enterprise Act.
6. Building lots and buildings transaction business.
7. The business of leasing, management, and operation of real estate.
8. -11. Omitted
12. All business incidental to the above
50 million yen
May 2, 2008

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

40

Relationship with SAR or the Asset Manager
Capital relationship
There is no capital tie to be noted between SAR / the Asset Manager and the abovementioned
company, however the aforementioned company falls under 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 retainance as broker, the Asset Manager has performed
deliberation and approval in accordance with laws and regulations and the relevant rules.
Personnel relationship There is no personnel relationship to report.
Business relationshipIn the fiscal period ended January 31, 2021 (10th fiscal period), SAR engaged in asset acquisition
with the aforementioned company, which acted as an intermediary.
Related party or no
The aforementioned company falls under the category of interested person, etc. as provided in
the Investment Trusts Act, and falls under the category of interested party prescribed in the“Rules on Transactions with Interested Parties”, which is the voluntary rules set forth by the AssetManager for preventing conflict of interests regarding its management of SAR’s assets. Upon
determination of the retainance as broker, the Asset Manager has performed deliberation andapproval in accordance with laws and regulations and the relevant rules.

②

Breakdown and value of the brokerage commission

Breakdown of Brokerage Fee
Amount of Brokerage Fee(excluding consumption tax and local
consumption tax.)

Brokerage fee for transfer of Trust Beneficiary Interest
OHABuilding
Urban Center Hakata
BAGUS Ikebukuro West
Urban Park Ryogoku
Urban Park Mizonokuchi
Urban Park Miyamaedaira
Urban Park Tsurumi
Total

1,000,000 yen
2,000,000 yen
3,000,000 yen
3,000,000 yen
2,000,000 yen
2,000,000 yen
3,000,000 yen
16,000,000 yen

７．Interested-Party Transactions
The sellers of Urban Center Hakata and Urban Park Miyamaedaira and brokers in the Acquisitions are
Interested Persons as defined in Article 201 of the Investment Trust Act and Article 123 of the Enforcement
Order of the Investment Trust Act.
In addition, the sellers of the OHA Building and BAGUS Ikebukuro West fall under category of interested
persons prescribed under “Rules on Transactions with Interested Parties” which are the voluntary rules set
forth by the Asset Manager for preventingconflict-of-interests regarding its management of SAR’s assets.
Upon making decisions for the acquisition or brokerage of assets, the Asset Manager has performed theprocess of deliberation and resolutions in accordance with the relevant rules.
Furthermore, with respect to “Urban Center Hakata”, SAR will sign a master lease agreement with Star Asia
Sogo Kaihatsu to be dated August 2, 2021 (contract parties will include the Asset Manager and the trustee). Star
Asia Sogo Kaihatsu falls under Interested Party as defined in Article 201 of the Investment Trust Act and Article
123 of the Enforcement Order of the Investment Trust Act. Upon deciding on the lease, the Asset Manager has
performed deliberations and resolutions in accordance with relevant rules.
＜Principal agreement terms and conditions＞- Agreement term ：From August 19, 2021 through August 31, 2022（Fixed term lease agreement）(planned)-Type of master lease：Fixed rent
-Lent fee：12,772,640 yen/month（16,000 yen/tsubo）
８．Schedule for the Acquisition
August 2, 2021

Acquisition decided

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

41

August 19, 2021
（planned）

Sign the Trust Beneficial Interest Sale and Purchase Agreement
Acquisition of beneficiary interest in trust (planned)
Payment of acquisition price (planned)
Conclusion of a property management agreement (planned)

９．Settlement method
The settlement for the Asset to be Acquired is expected to take place by making lump-sum payment of theacquisition price on the scheduled acquisition date.
１０．Future outlook
As a result of the Acquisition of Real Estate Beneficiary Interests in Trust and entering into Lease
Contracts, there will be certain changes made to the assumptions for the forecasts for operating results
described in “(REIT) Financial Report for Fiscal Period Ended January 31, 2021” announced on March 16,
2021. For further details, please refer to “Notice Concerning Revision to Forecasts for Operating Results
for the 12th Fiscal Period Ending January 31, 2022 and Forecasts for Operating Results and Distribution for
the 13th Fiscal Period Ending July 31, 2022” announced today.

以上<Appendix>
・Reference Material 1
・Reference Material 2・Reference Material 3
・Reference Material 4・Reference Material 5

Summary of portfolio after the Acquisition
Portfolio list after the Acquisition
Summary of earthquake risk analysis
Location maps / photos of exterior of Assets to be Acquired
The terms used in the table of Description of Assets to be Acquired＜Reference＞
Other press releases announced today
・Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units
・Notice Concerning Revision to Forecasts for Operating Results for the 12th Fiscal Period Ending January 31, 2022
and Forecasts for Operating Results and Distribution for the 13th Fiscal Period Ending July 31, 2022
・Notice Concerning Debt Financing＊ 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. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

42

Reference Material 1

Summary of portfolio after the Acquisition＜Asset type (use)＞
Asset type (use)OfficeRetailResidence
Logistics
Hotel

Number of Property
20
4
19
9
8
60

Total

(Planned) Acquisition
Price (million yen)
72,733
18,254
37,77930,365
20,544
179,675

Investment ratio (%)(Note1)
40.5
10.2
21.0
16.9
11.4
100.0

＜Investment Areas＞
Area(Planned) Acquisition
Price (million yen)
56,248Investment ratio (%)(Note1)
31.3

Five central wards ofTokyo (Note 3)
72.3
Other areas in Greater
73,72041.0
TokyoOutside the Tokyo Area
49,707
27.7
Total
179,675100.0(Note 1) Ratios have been calculated based on the total acquisition price, and stated by rounding to the 2 nd decimal place.
Therefore, ratios may not add up to 100%.
(Note 2) “Tokyo area” refers to Tokyo’s 23 wards, Kawasaki City and Yokohama City, where SAR considers to have highdemand for office and retail properties, and includes all of Tokyo, Kanagawa, Saitama and Chiba prefecture forresidence, logistics facilities, hotels and student residences, due to expected demand in these areas.
(Note 3) The five central wards of Tokyo are Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, and Shibuya-ku.
Tokyo Area
(Note 2)

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

43

Reference Material 2

Portfolio list after the Acquisition

PropertyNo.

Location(Note 1)

Property Name

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

Real estateappraisalvalue(million yen)
(Note 3)

Investment
ratio
(%)
(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

3,020

1.7

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-Shi, Osaka

6,065

6,760

3.4

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,500

1.0

OFC-06

Shibuya MK Building

2,042

3,220

1.1

OFC-08Asahi Building

6,320

7,790

3.5

OFC-09Hakata-eki East Place

2,286

2,630

1.3

OFC-10Nihonbashi Hamacho Park Building

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

1,450

1,540

0.8

OFC-11

Amusement Media Gakuin Honkan

2,580

2,690

1.4

OFC-12

Higashi Kobe Center Building

7,440

7,390

4.1

OFC-13

Amusement Media Gakuin Shinkan

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

1,020

1,160

0.6

OFC-14

Seishin BLDG.

Shinjuku-ku, Tokyo

11,200

11,2006.2

OFC-15NK BLDG.

Chiyoda-ku, Tokyo

5,350

5,360

3.0

OFC-16

Tsukasamachi BLDG.

Chiyoda-ku, Tokyo

4,590

4,590

2.6

OFC-17

Takadanobaba AccessShinjuku-ku, Tokyo

3,990

3,970

2.2

OFC-18

Azabu Amerex BLDG.

Minato-ku, Tokyo

2,780

2,790

1.5

OFC-19Hiei-Kudan BLDG.

Chiyoda-ku, Tokyo

2,400

2,370

1.3

OFC-20Shin-Yokohama Nara BLDG.

Yokohama-Shi, Kanagawa

2,300

2,310

1.3

OFC-21The Portal Akihabara

Chiyoda-ku, Tokyo

1,510

1,510

0.8

OFC-22OHA Building

1,804

1,950

1.0

OFC-23

Urban Center Hakata

Tachikawa-Shi, Tokyo
Hakata-ku, Fukuoka-shi,
Fukuoka
Office Subtotal

2,870

3,030

1.6

72,73377,780

40.5

RTL-01

La Park Kishiwada

Kishiwada-Shi, Osaka

5,400

5,210

3.0

RTL-02

Suroy Mall Chikushino

Chikushino-Shi, Fukuoka

6,550

6,540

3.6

RTL-03

Seiyu Minakuchi

Koka- hi, Shiga

3,320

3,310

1.8

RTL-05

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,240

1.7

18,25418,300

10.2

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,500

1.1

RSC-02

Urban Park Daikanyama

6,315

8,450

3.5

RSC-05

Urban Park Namba

1,490

1,630

0.8

RSC-06

Urban Park Gokokuji

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

1,460

1,510

0.8

RSC-07

Urban Park Kashiwa

Kashiwa-Shi, Chiba

1,186

1,190

0.7

RSC-08

Urban Park Ryokuchi Koen

Suita-Shi, Osaka

1,550

1,640

0.9

RSC-09Urban Park Koenji

1,167

1,180

0.6

RSC-10Urban Park Ichigao

1,810

1,890

1.0

RSC-11

Urban Park Gyotoku

Suginami-ku, Tokyo
Aoba-ku, Yokohama-Shi,
Kanagawa
Ichikawa-Shi, Chiba

1,430

1,530

0.8

Retail Subtotal

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

44

RSC-12

Shiroi Logiman

Shiroi-Shi , Chiba

2,470

2,460

1.4

RSC-13

Urban Park Sekime

Osaka-Shi, Osaka

2,150

2,210

1.2

RSC-14

Urban Park Imazato

Osaka-Shi, Osaka

993

990

0.6

RSC-15

Urban Park Yoyogi

1,740

1,760

1.0

RSC-16

Urban Park Tokiwadai Koen

3,506

3,770

2.0

RSC-17

Urban Park Mitsuike Koen

3,160

3,330

1.8

RSC-18

Urban Park Ryogoku

1,115

1,190

0.6

RSC-19Urban Park Mizonokuchi

2,019

2,100

1.1

RSC-20Urban Park Miyamaedaira

1,060

1,150

0.6

RSC-21

Urban Park Tsurumi

1,113

1,190

0.6

37,77941,670

21.0

6,942

7,310

3.9

3,560

4,120

2.0

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

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

7,875

8,660

4.4

LGC-04

Baraki Logistics

Ichikawa-Shi, Chiba

4,700

4,880

2.6

LGC-05Tokorozawa Logistics

Tokorozawa-Shi, Saitama

1,300

1,380

0.7

LGC-07

Funabashi Nishiura Logistics Ⅱ

Funabashi-Shi, Chiba

821

850

0.5

LGC-08

Matsubushi Logistics

Kitakatsushika, Saitama

2,755

2,910

1.5

LGC-09Funabashi Hi-Tech Park Factory Ⅰ

Funabashi-Shi, Chiba

1,710

1,710

1.0

LGC-10

Funabashi Hi-Tech Park Factory Ⅱ

Funabashi-Shi, Chiba

HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03

BEST WESTERN Tokyo Nishikasai

HTL-04

BEST WESTERN Yokohama

HTL-05

Hotel WBF Fukuoka Tenjin Minami

HTL-06

GLANSIT AKIHABARABEST WESTERN Tokyo Nishikasai
Grande

HTL-07
HTL-08

KOKO HOTEL Osaka Namba

702

701

0.4

Logistics facility Subtotal

30,36532,521

16.9

Kita-ku, Osaka-Shi, Osaka
Naniwa-ku, Osaka-Shi,
Osaka
Edogawa-ku, Tokyo
Tsurumi-ku, Yokohama-Shi,
Kanagawa
Chuo-ku, Fukuoka-Shi ,FukuokaChiyoda-ku, Tokyo

2,069

2,250

1.2

1,750

1,400

1.0

3,827

3,610

2.1

3,248

3,190

1.8

1,970

1,930

1.1

2,500

2,440

1.4

Edogawa-ku, Tokyo

3,180

3,130

1.8

2,000

1,450

1.1

20,544

19,40011.4

179,675

189,671

100.0

Naniwa-ku,Osaka-Shi,
Osaka
Hotel Subtotal

Total(Note 1)

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

(Note 2)”Acquisition price” means the sale and purchase proceeds described in the sale and purchase agreement related to each acquired
asset (real estate properties etc.), and “Planned Acquisition Price” means the planned sale and purchase proceeds as stated in theagreement signed with the Seller in relation to the Asset to be Acquired, and each price is stated by rounding the amounts of less than 1
million yen to the nearest 1 million yen. The Acquisition Price and the Planned Acquisition Price do not include consumption tax, local

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

45

consumption tax, or expenses required for acquisition. However, with respect to “Minami-Azabu Shibuya Building”, as it is based on asale and purchase agreement for multiple properties where no price is established for each individual property, the amount derived byprorating the total sales price of the multiple properties based on the ratio of the appraisal values of each individual property as of thetime of their acquisition is stated as the “Acquisition Price”.
(Note 3) ”Real estate appraisal value” states the appraisal values stated in the real estate appraisal reports based on the price which is rounded
to the nearest 1 million yen as the end of January, 2021, for already acquired properties, and the appraisal value stated in the real estateappraisal report based on the price which is rounded to the nearest 1 million yen as of June 1, 2021 with respect to the Asset to be
Acquired.
(Note 4) “Investment ratio” shows the ratio of the (planned) acquisition price of each of acquired assets or Asset to be Acquired against thesum of the (planned) acquisition price for acquired assets and Asset to be Acquired rounded to the first decimal place.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

46

Reference Material 3

Summary of earthquake risk analysis

Propertyno.

Property name

Type

OfficeRetailResidence

PML(%)

OFC-01

Minami-Azabu Shibuya Building

11.6

OFC-03

Honmachibashi Tower

5.5

OFC-04

Nishi-Shinjuku Matsuya Building

5.5

OFC-06

Shibuya MK Building

7.2

OFC-08Asahi Building

6.2

OFC-09Hakata-eki East Place

4.7

OFC-10Nihonbashi Hamacho Park Building

7.4

OFC-11

Amusement Media Gakuin Honkan

7.6

OFC-12

Higashi-Kobe Center Building

8.6

OFC-13

Amusement Media Gakuin Shinkan

9.6

OFC-14

Seishin BLDG.

5.5

OFC-15NK BLDG.

8.4

OFC-16

Tsukasamachi BLDG.

9.4

OFC-17

Takadanobaba Access

3.5

OFC-18

Azabu Amerex BLDG.

10.2

OFC-19Hiei-Kudan BLDG.

3.6

OFC-20Shin-Yokohama Nara BLDG.

4.4

OFC-21The Portal Akihabara

8.2

OFC-22OHA Building

4.5

OFC-23

Urban Center Hakata

3.6

RTL-01

La Park Kishiwada

14.8

RTL-02

Suroy Mall Chikushino

2.2

RTL-03

Seiyu Minakuchi

4.2

RTL-05

BAGUS Ikebukuro West

4.6

RSC-01

Urban Park Azabujuban

7.5

RSC-02

Urban Park Daikanyama

8.1

RSC-05

Urban Park Namba

8.1

RSC-06

Urban Park Gokokuji

5.1

RSC-07

Urban Park Kashiwa

4.9

RSC-08

Urban Park Ryokuchi Koen

6.4

RSC-09Urban Park Koenji

10.4

RSC-10Urban Park Ichigao

9.8

RSC-11

Urban Park Gyotoku

5.1

RSC-12

Shiroi Logiman

3.5

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

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Logistics

Hotel

RSC-13

Urban Park Sekime

11.5

RSC-14

Urban Park Imazato

12.0

RSC-15

Urban Park Yoyogi

7.7

RSC-16

Urban Park Tokiwadai Koen

9.6

RSC-17

Urban Park Mitsuike Koen

9.7

RSC-18

Urban Park Ryogoku

6.0

RSC-19Urban Park Mizonokuchi

10.4

RSC-20Urban Park Miyamaedairai

4.5

RSC-21

Urban Park Tsurumi

9.9

LGC-01

Iwatsuki Logistics

3.9

LGC-02

Yokohama Logistics

13.0

LGC-03

Funabashi Logistics

5.7

LGC-04

Baraki Logistics

3.8

LGC-05Tokorozawa Logistics

9.5

LGC-07

Funabashi Nishiura Logistics II

2.9

LGC-08

Matsubushi Logistics

2.2

LGC-09Funabashi Hi-Tech Park Factory Ⅰ

5.7

LGC-10

Funabashi Hi-Tech Park Factory Ⅱ

5.6

HTL-01R&B Hotel Umeda East

9.0

HTL-02

Smile Hotel Namba

9.2

HTL-03

BEST WESTERN Tokyo Nishikasai

9.0

HTL-04

BEST WESTERN Yokohama

11.1

HTL-05

Hotel WBF Fukuoka Tenjin Minami

5.0

HTL-06

GLANSIT AKIHABARA

3.7

HTL-07

Best Western Tokyo Nishikasai Grande

6.1

HTL-08

KOKO HOTEL Osaka Namba

6.7

Entire portfolio (60 properties) (Note)

2.5(Note)The figure in the entire portfolio column is the PML for the entire portfolio of the Existing Assets (real estate, etc.) /Assets to be Acquired (portfolio PML) based on “portfolio earthquake risk evaluation report” prepared by Tokio MarinedR Co., Ltd. dated July 2021.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

48

Reference Material 4

Location maps / photos of exterior of Assets to be Acquired

FC-22 OHA Building

OFC-23 Urban Center Hakata

RTL-06 BAGUS Ikebukuro West

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

49

RSC-18 Urban Park Ryogoku

RSC-19 Urban Park Mizonokuchi

RSC-20 Urban Park MiyamaedairaNote: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

50

RSC-21 Urban Park Tsurumi

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

51

Reference Material 5(a)

The terms used in the table of Description of Assets to be Acquired

Explanation on “Property no.” and “Type”

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

Explanation on “Overview of specified asset”

a.“Planned Acquisition price” column: Herein is shown the planned acquisition price of the Assets to be Acquired as described in the purchaseagreement of the Assets to be Acquired (excluding consumption taxes, local consumption taxes, and expenses necessary for the acquisition),after rounded to the nearest million yen.
b.“Planned Acquisition Date” column: Herein is shown the planned MMDDYY of acquisition by SAR.
c.“Location” column: Herein is shown the certified address in registry. “Indication of residential address” column: Herein is shown the postal
address. If postal address is not available, registered address of the property (if there are two or more of them, one is selected) is shown.
d.“Land” column:i.

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

ii.

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

iii.

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

iv.

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

e. “Building” column:i.

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

ii.

“Total floor area” column: Herein is shown the sum total of floor areas as recorded in registry, unless otherwise noted.
For this reason, it possibly might not be equal to the actual figure.

iii.

“Use” column: Herein is shown the registered use or, if multiple uses are registered the representative use from what arerecorded in registry, it possibly might not be equal to the actual representative use. As for the building withcompartmentalized ownership, the type of use for the exclusively owned space by SAR is shown.

iv.

“Construction completion” column: Herein is shown MMDDYY of the representative building first built as recorded inregistry.

v.

“Structure and floors” column: Herein is shown the structure of the representative building, etc. as recorded in registry. It
possibly might not be equal to the actual structure. As for the building with compartmentalized ownership, the structure
and the number of floors for the entire building are shown.

f. “Property management company” column: Herein is shown the name of property management company (“PM Company”), to which
property management operation is (planned to be) entrusted as of today
g. “Master lease company” column: Herein is shown the name of the master lease company, to which master lease operation is (planned to be)
entrusted, as of today.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

52

(c)

Explanation on “Status of leasing”

a. “Total leasable area” column: Herein is shown the sum total of leasable floor areas of buildings of the Assets to be Acquired (in case common
space is also leased, area of that space is included in the total). The figure does not include the area of the land lots leasable for parking andother purposes. Leasable area is counted not from registry data 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 note that, unless noted otherwise, the source data for the column represent what were provided by the current owner(s) of the Assets
to be Acquired as of April 30, 2021.
b. “Total leased area” column: Herein is shown the sum total of the floor areas to be leased as described in lease agreement for each of theAssets to be Acquired as of April 30, 2021 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 the Assets to be
Acquired as of April 30, 2021.
c. “Occupancy rate” column: Herein is shown the percentage of total leased floor area over the total leasable floor area of the Assets to be
Acquired, after rounded to the first decimal place. Please note that the source data for the column represent what were provided by thecurrent owner(s) of the Assets to be Acquired as of April 30, 2021.
d. “Total number of tenants” column: Herein is shown the total number of tenants as confirmed with the lease agreements effective as of April
30, 2021 of the Assest to be Acquired. In case a specific tenant uses two or more rooms in one of the Assets to be Acquired, such tenant iscounted only once for the asset. Also, in case a specific tenant signs lease agreements for rooms in two or more assets, the tenant shall becounted for each of the assets separately. In case a pass-through type of master lease agreement (a lease agreement in which the master
lessee receives rent from end tenants and pay the same amount to the lessor) is executed for any of the Assets to be Acquired, total number of
the actual (end) tenants under the master lease agreement for the asset is shown herein.
e. “Monthly rent (including common area maintenance fee)” column: Herein is shown the total of rent amounts as described in leaseagreements with respective tenants as of April 30, 2021 (confined to room rents; excluding the charges for warehouses, sign boards andparking lots; but including the common service expenses; and free rent cases as of the same date are not considered), after rounded to thenearest thousand yen.。
f. “Security and guarantee deposits” column: Herein is shown the sum total of refundable deposits as required in lease agreements effective asof April 30, 2021 (only for the tenants who actually were in respective rooms at the time) of the Assets to be Acquired. In case master leaseagreement is executed for any of the Assets to be Acquired, sum total of refundable deposits as described in the individual lease agreementswith respective (end) 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 the involved rights andassumed uses but also on the appraisal value of, profitability of, and the other items considered material in relation to the disposability of theAssets to be Acquired.
(e)

Explanation on “Summary of real estate appraisal report”

a. “Summary of real estate appraisal report” column: Herein is shown a summary of respective appraisal report, which was prepared either byJapan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd. and The Tanizawa Sogo Appraisal Co., Ltd. for the Assets to be Acquired.If there
are multiple discount rate, the discount rate the appraiser adopted taking the current operating status into consideration is stated.
b. “Appraisal value” column: Herein is shown only the opinions on the value of respective property as of the date of appraisal, expressed by theappraiser who did the appraisal of the property, in accordance with the Act on Real Estate Appraisal (Act No.152 of 1963; including its
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

53

amendments) and commonly accepted appraisal standards for real estate properties, etc.
c. In case appraisal is once again undertaken for the same property, its result could be different from the previous result because appraiser
and/ or appraisal method and/ or appraisal timing is different. Also, it is requested to note that any appraisal result for any property is not what
guarantees or promises the actual tradability of the property at the appraised value whether for right now or for any moment in the future.
d. None of Japan Real Estate Institute, DAIWA REAL ESTATE APPRAISAL CO.,LTD. and The Tanizawa Sogo Appraisal Co., Ltd. who conductedappraisal is an interested party of neither SAR nor the Asset Manager.
(f)

Explanation of the Section entitled “Property Description and Acquisition Highlight based on the investigation by the Asset Manager”

The Asset Manager has described, by making reference to real estate appraisal reports and market reports etc. and by taking into account theresults of individual investigations made on its own, the basic attributes and characteristics of the relevant properties, and has also described
the background leading to acquisition of the relevant properties (i.e. for those properties acquired from sponsor groups, the name of thesponsor group, and with respect to properties acquired based on sale information obtained by the Asset Manager individually and on its own,
the background to such acquisition). The “<Sponsor Fund>” means it has been acquired from a sponsor group, “<Outside Acquisition>” means
it has been obtained from a third party, “<Bilateral Negotiated Transaction> means it has been acquired based on bilateral negotiations from athird party, and “<Warehousing>” means that it has been obtained by using the warehousing function of a sponsor group.
(g)

Explanation regarding the Section “Demographic Analysis etc., Market Analysis, and the Asset Manager’s Individual Analysis”

The Asset Manager has described its own individual market analysis made based on information from various real estate information
specialized firms and disclosed materials.
(h)Explanation regarding the Section “Comprehensive Evaluation by SAR”

SAR’s own individual assessments are stated taking into account paragraphs f. and g. above.

This is an English translation of the announcement in Japanese dated August 2, 2021. However, no assurance
or warranties are given for the completeness or accuracy of this English translation.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been
prepared for the purpose of announcing to the public certain matters relating to the acquisition of real estate beneficiary interests intrust and entering into lease contracts, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, thispress release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the
United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the
United States will be made in connection with the above-mentioned acquisitions. This press release is not for publication, distribution orrelease, directly or indirectly in or into the United States of America.

54