Merger Agreement between Star Asia Investment Corporationand Sakura Sogo REIT Investment Corporation
Supplementary Explanatory Material Regarding
March 2, 2020 Press Release

March 2, 2020
Real Estate Investment Trust Securities Issuer:Star Asia Investment Corporation
Representative:

Atsushi Kato, Executive Director(Securities Code: 3468)

To unitholders in the United States:
The merger described in this press release involves securities of a foreign company. The offer is subject to disclosure
requirements of a foreign country that are different from those of the United States. Financial information included in thisdocument, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not
be comparable to the financial statements of United States companies. In addition, it may be difficult for you to enforce your rights
and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in a foreign country and allof its officers and directors are residents of a foreign country. You may not be able to sue a foreign company or its officers ordirectors in a foreign court for violations of the U.S. securities laws. It may be difficult to compel a foreign company and its affiliates
to subject themselves to a U.S. court’s judgment.

Real Estate Investment Trust Securities Issuer:

You should be aware that the issuer may purchase securities otherwise than under the merger, such as in the open market or
through privately negotiated purchases.

Asset Management Company:

This document has been translated from the Japanese-language original document for reference purposes only. In the event of
any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shallprevail in all respects.

Star Asia Investment Management Co., Ltd.

Sakura Sogo REIT Investment Corporation
Representative:

Toru Sugihara, Executive Director(Securities Code: 3473)

Representative:

Atsushi Kato, President and CEO

Inquiries:

Akiko Kanno, Director and CFO
TEL: +81-3-5425-1340

Message to the Unitholders of Star Asia Investment
Corporation and Sakura Sogo REIT Investment Corporation

 Star Asia Investment Corporation (“SAR”) and Sakura Sogo REIT Investment
Corporation (“SSR”) today (March 2, 2020) executed a merger agreement witha merger ratio of 1:0.89

 The merger is expected to expand asset size, improve portfolio revenue stability,
and increase liquidity of the investment units given the larger market
capitalization and float.
 Goal is to further increase the distribution per unit (“DPU”) by reducing costs
and improving cash flow after the merger.
 Star Asia Group will continue to provide robust support to the combined
corporation and Star Asia Investment Management Co., Ltd., will continue tofocus on active management strategies to achieve sustainable growth.
 We undoubtedly believe that this merger will contribute to maximizing value forunitholders of both SAR and SSR.
Atsushi Kato, Executive Director
Star Asia Investment Corporation

Toru Sugihara, Executive Director
Sakura Sogo REIT Investment Corporation

Contents

1. Significance of the Merger

P.05

2. Merger Overview

P.11

3. Post-Merger Growth Strategy

P.14

4. Appendix

P.20

Benefits of Merger between SAR and SSR (Executive Summary)① Expansion of asset size

Increase of normalized DPU

Diversification of portfolio will improve stability of revenue
and distribution

Asset size:

JPY166.8bn

The benefits of economies of scale will increasenormalized DPU through improved asset management
efficiency and reduced operation costs
For SAR unitholders: +JPY122(Note 4)(Note 4)For SSR unitholders: +JPY106(Note 2)

Normalized DPU：

No. of properties:

53③

JPY2,910(Note 4)(Note 2)② Larger market capitalization

After Merger:
Star Asia Investment Corporation

Liquidity of investment units
will be improved and lead todiversification of investors

Merger ratio 1:0.89

Market capitalization:

JPY82.0bn

Support of sponsor
Continued active management
based on solid results
Adequate pipeline for external
growthProperties with preferential
negotiation rights:(Note 3)④

JPY29.9bn(Note 5)Asset
replacements:

5

times
(Note 6)(Note 1) : In this document, Star Asia Investment Corporation may be referred to as "SAR" and Sakura Sogo REIT Investment Corporation as "SSR". (Note 2) : The post-merger asset size is the sum of the total acquisition price of SAR’s portfolio (Figures released today
after the transfer of Alphabet Seven and the acquisition of Urban Park Ichigao and Urban Park Gyotoku by SAR) and the assumed acceptance price of SSR’s portfolio .
(Note 3): Calculated as a simple sum of both REITs’ market capitalization as of February 28, 2020. (Note 4): For SAR unitholders, cruising DPU is calculated by subtracting SAR’s expected DPU for the fiscal period ending January 2020 from the expected DPU for the fiscal
period ending July 2021. For SSR unitholders, it is calculated by subtracting the SSR’s expected DPU (after 6-month conversion, after adjustment for the effect of merger-related expenses and litigation-related expenses on DPU) for the fiscal year ending July 2020 from theexpected DPU for the fiscal year ending July 2021 (the amount adjusted based on the merger ratio). (Note 5): For properties for which a preferential negotiation price has been determined, the total amount of such price is used; for properties for which a preferential
negotiation price has not been determined, the total amount of the most recent appraisal value or investigation price is used to determine the figure.
(Note 6) Include the 5th asset replacement announced today

3The Merger and Actions before/after the Merger ～ To maximize unitholder value
 We believe that the merger of SAR and SSR offers various benefits to the unitholders of both SAR and SSR, including improved

stability through expansion of asset size and increased liquidity of investment units due to larger market capitalization.
 Star Asia Group will continue to provide robust support and resources and Star Asia Investment Management Co., Ltd., willcontinue to focus on active management strategies to maximize unitholder value.

Post-merger
Sakura Sogo REIT
Investment Corporation
Diversified REIT

Star Asia Investment Corporation
Diversified REIT
Asset size: JPY103.8bn (Note 2)

Asset size: JPY63bn (assumed price of

JPY166.8bn

No. of properties: 35 (after replacement)
Investment target: Office buildings, retail,residence, logistic facilities, hotels, student
accommodation

Investment target:
Office buildings, retail, residence, logistic facilities,
hotels, student accommodation, etc.

acquiring SSR portfolio (Note 1))

No. of properties: 18
Investment target: Office buildings, retail,residence, etc.

Asset size:

Asset replacement with active management in
preparation for the Merger of SAR and SSR

JPY3,500mm

Planned sale priceAppraised cap rate

Age

3.0% (note 3) (note 6) To be sold at a price 31.1%
20.1 years (note 3)

Urban Park Ichigao (Note 7)

Appraised value

higher than appraised value andwill generate a gain on sale over
2 fiscal periods

Support from Star Asia GroupCap rate: 4.7%

Urban Park Gyotoku (Note 7)
JPY1,810mm

Plannedacquisition price

JPY1,430mm

JPY1,850mm (Note 5)

Appraised value

JPY1,500mm(Note 5)

Appraised cap rate 4.7% (Note 5) (Note 6)Age Further strengthen operations that always work in thebest interest of unitholders(Note 4)

Two properties to be acquired
Plannedacquisition price Continued active management to maximize unitholder
value

Gain on sale(estimate)
JPY1,612mm

Appraised value JPY2,670mm(note 3)

53

Management by Star Asia Investment Management
Co., Ltd., SAR’s asset manager

One property planned for sale
Alphabet Seven

No. of properties:

21.6 years (Note 5)

Appraised cap rate 4.7% (Note 5) (Note 6)Age

24.9 years (Note 5)•Providing property information and assets to achieve
external growthProviding acquisition warehousing functionProviding expertise and resources for internal growthPursue Maximizing Unitholder ValueAND•

Accelerate Growth to the Next Stage(Note 1) : The price stated in the appraisal report obtained by SAR and Star Asia Investment Management Co., Ltd., (based on price as of November 1, 2019) is used as the assumed price of acquiring the SSR portfolio.
(Note 2) : SAR’s acquisition price after 5th asset replacement. (Note 3) : As of January 31, 2020. (Note 4): Part of the gain on sale will be used as merger-related expenses. (Note 5): As of December 1, 2019.
(Note 6) : Appraised cap rate is the ratio of the appraisal NOI calculated using the direct capitalization method to the planned transfer price or planned acquisition price, rounded to the first decimal place.
(Note 7) : Names after acquisition. Current names are “Chrysantheme Ichigao” and “La Soeur Gyotoku”, respectively, but will be changed to the names indicated above shortly after acquisition by SAR.

4

1. Significance of the Merger

Significance of the Merger

Increase of DPU that contributes to maximizing unitholders’ value of both SAR and SSR

1

SAR’s post-Merger Normalized DPU is expected to be JPY2,910, which is estimated to be JPY2,590 when converted to SSR’s DPU (forecast
for fiscal period ending July 2021) (Note 1)

DPU is expected to increase for both SAR and SSR after the merger— expected increase for SAR will be JPY122 (+4.4%) from its forecast of
JPY2,788 for the fiscal period ended January 2020, and expected increase for SSR will be JPY76 (+3.0%) from JPY2,514 (Note 2) for the fiscal
period ended December 2019 or JPY106 (+4.3%) from its forecast of JPY2,484 (Note 3) for the fiscal period ending July 2020.

Better positioning in the market with larger market capitalization as well as improved
stability with expanded financial base2Market capitalization after the merger will be JPY82bn (Note 4) and positioning in the J-REIT market is expected to improve.



Larger market capitalization will improve liquidity of investment units which will lead to diversification of investors.

LTV based on total assets after the merger is projected to be 45.8%. Borrowing capacity will increase as a result of expansion of assets which
will lead to financial stability. Obtaining a credit rating may become an option.

Continued implementation of diverse investment strategies (active management) thatwill improve unitholder value with expansion of asset size3Size of assets after the merger is expected to be JPY166.8bn (Note 5) (This is a JPY63bn increase (+60.6%) from JPY103.8bn for SAR and asignificant JPY103.8bn increase (+164.8%) from JPY63bn for SSR)

Pursue maximizing unitholder value by accelerating external growth with support of Star Asia Group, pursuing internal growth (we expect
further support from Nippon Kanzai Group, which provides with strong support mainly in management of properties held by SSR), andcontinuing active management by Star Asia Investment Management Co., Ltd. (asset replacement, investment in mezzanine loan debt, etc.)(Note 1) : Post-merger DPU of JPY2,590 for SSR unitholders is calculated based on the merger ratio 1: 0.89 using the post-merger normalized DPU (Note 2): The figure represent SSR’s results for the fiscal period ended December 2019, after adding back the downward revisions
made to the forecasts (published on September 26, 2019)(Note 3): The figure is obtained by adding back the DPU calculated based on the following formula to the actual DPU. Figures less than units are rounded down.
Forecasted DPU for the fiscal period ending July 2020 = forecasted undistributed earnings for the fiscal period ending July 2020 (6-month equivalent), divided by the number of outstanding investment units, plus expected merger-related expenses and litigation costs, divided by the
number of outstanding investment units.
(Note 4) : Calculated by simply combining the market capitalization of SAR and SSR based on closing price of Feb. 28 , 2020. (Note 5) : Calculated by combining the total (planned) acquisition price of SAR’s portfolio (JPY103.8bn) and the assumed price of acquiring SSR portfolio(JPY63bn)

6Significance of the Merger
SSR’s Performance under Asset Management by Sakura Real Estate Funds Management
 SSR’s performance under the former asset manager was weak and not focused on or effective in increasing unitholder value.

SSR’s performance since IPO

SSR’s historical DPU(From listing on Sept. 8, 2016,
to Dec. 30, 2019)
Asset growth ratio(Note 1)

No. of properties (Note 2)
acquired after IPO

JPY57.3bn(18 properties)

JPY57.5bn(18 properties)

2 properties
0

Market cap growth

7.1%

Total return(per annum)(Note 5)5,000

+0.38%

No. of follow-on offerings
conducted after IPO(Note 3)(Note 4)

 DPU decreased due to failure to close property acquisition deals,
payment of professional service fees pertaining to planned followon offering that did not occur, etc.

4,000

Decrease of DPU due
DPU increase resulting
to payment offrom lower asset
professional service
management fees:
fees:
JPY140/unit (Note 8)-JPY409/unit
DPU increase
Decrease of DPU fromresulting from gain
initial forecast due toon sale of properties:
decreased revenue as a
JPY785/unit
result of sale of asset:-JPY38/unit

785

3,000
140

409

38

2,000

7.8%

2,723

2,675

2,763

2,662

2,660
2,116

1,000
Ratio of asset management feesto year-end total assets(Note 6)(per annum)

Average borrowing rate
/ borrowing period(Note 7)

0.55～0.56%
00.80%/1.7 years

Fiscal
第2期
Periodended(17/8)
Aug. 2017

Fiscal
第3期
Periodended(18/2)
Feb. 2018

Fiscal
第4期
Periodended(18/6)
Jun. 2018

Fiscal
第5期
Periodended(18/12)
Dec. 2018

Fiscal
第6期
Periodended(19/6)
Jun. 2019

Fiscal
第7期
Periodended(19/12)
Dec. 2019(Note 9)(Note 1): “Asset growth ratio ” is based on the acquisition prices since IPO. (Note 2): “No. of properties acquired after IPO” represents the cumulative number of properties acquired after IPO and does not include assets acquired at the time of IPO. (Note 3): “No. of follow-on offerings
conducted after IPO” does not include the IPO. (Note 4): “Market cap growth” represents growth of market cap as of the closing price on the IPO date to end of December 2019. (Note 5): “Total return (per annum)” is calculated as an annualized rate of the return (total amount of DPU
until the latest fiscal period, taking into account the increase/decrease of unit price until the closing price of December 30, 2019) based on the IPO offer price. (Note 6): “Ratio of asset management fees to year-end total assets (per annum)” is calculated as an annualized rate of asset
management fees (excluding acquisition and transfer fees) that are stated in the asset management report, based on total assets at the end of fiscal period. (Note 7): “Average borrowing rate/ borrowing period” is based on the latest fiscal period end. (Note 8): “SSR’s DPU for the fiscal
period ended Aug. 2017” involves an increase of DPU (JPY140/unit) due to the absence of management fees of NOIx3% that were applied from the fiscal period ended Feb. 2018.
(Note 9): DPU for the fiscal period ended June 2018 of SSR is calculated using the following formula for 4-month settlement ((Total amount of actual DPU - gain on sales of properties + expenses related to the delivery of investment units) x (6/4) + Gain on Sale of Property - Expenses
related to delivery of investment units) / Total number of units of issued investment equity at the end of the fiscal period ended June 2018.

7

Significance of the Merger
Increase of Normalized DPU
 SAR’s normalized DPU after the merger is expected to be JPY2,910 (Forecast for the Fiscal Period ending July 2021)

Post-merger DPU for former SAR unitholders

Post-merger DPU for former SSR unitholders (Note 2)

DPU compared to the 2nd Fiscal Period after the merger+JPY122(+4.4%)

3,310
2,788

DPU compared to the 2nd Fiscal Period after the merger+JPY76(+3.0%)

3,315
423

569

2,910

2,514
398

DPU compared to the 2nd 2,950
Fiscal Period after themerger376
2,484 +JPY106(+4.3%)
507

Transient factors
such as gain on saleof properties（Note 1）

2,116

1

2

Fiscal Period Ended Fiscal Period Ending
Jan. 2020
Jul. 2020(Forecast)(Forecast)3

Decrease in DPU
resulting fromexpenses forunitholders'
proposals(Note 3)

2,892

2,741

2,590

Fiscal Period
4 Ending Fiscal Period
5 Ending
Jan. 2021
Jul. 2021(1st Fiscal Period(2nd Fiscal Period
after the merger)
after the merger)(Forecast)(Forecast)

2019/12期
Fiscal Period Ended
Dec. 2019

1,977

2020/7期

Fiscal PeriodEnding Jul. 2020
(Forecast)

Decrease in DPU
resulting from themerger andlitigation
expenses

2,574

FiscalPeriod Ending Fiscal
Period Ending
2021/1期
2021/7期
Jan. 2021
Jul. 2021(1st Fiscal Period(2nd Fiscal Period
after the merger)
after the merger)(Forecast)(Forecast)(Note 4)(Note1): Transient factors are calculated by subtracting negative factors such as merger-related expenses from positive factors such as gains on sales(Note2): DPU for former SSR unitholders is calculated based on merger ratio of 1:0.89(Note3): Downward revision in earnings forecasts for the fiscal year ended December 2019 (Published on September 26, 2019)(Note4): DPU figure is calculated as follow: (Unappropriated retained earnings for Fiscal Period ending Jul. 2020 (converted for a figure for 6 months) + expected expenses associated to the merger and dispute) / outstanding
investment units8Significance of the Merger
Better Positioning in J-REIT Market Based on Larger Market Capitalization and Expanded Asset Size
 Market capitalization after the merger is estimated to be JPY82.0bn (Note 1) and we expect that the larger market capitalization will

improve our market positioning.
 Increase in market capitalization will boost the liquidity of investment units and increase probability of being included in major indices.

Market Capitalization after Merger (Note 1)(Note 2)(bn yen) 1,500
150

Market cap after merger(simply combined)

Expected effects ofincreased market capitalization

JPY82.0bn
1,000
100
SAR
JPY54.4bn

50
500

SSR
JPY27.6bn※ JCR Ratings: ● stands for AA-

●

●

●

● stands for A-, A, A+(Note 1) : As of February 28 2020. Market cap after the merger is simple sum of SAR’s and SSR’s market cap.
(Note 2) : 25 J-REITs with market cap less than JPY130bn are shown.

●

●

●

●

●

MEL

●

HHR

●

HRR

MRI

●

合併後

ONE

●

MTH

IAL

●

SSL

●

●

●

●

KRR

●

SRR

SAR

TLR

●

GOR

MSCI Small
Cap

SPI

CRE

SRE

●

TRI

EJR

HCM

FTSE
EPRA/NAREIT

SSR

XYR

IHR

SPA

NHI

JCR Ratings

MRR

0
●

●

●

●

●



Improved liquidity of investment unitsStabilization of price of investment
units



Ability to further expand the investorbaseHigher probability of being included in
major REIT indices

Improved recognition frominstitutional investors

SAR’s investment units will be split
2-for-1
The split allows SSR unitholders to receive
one or more units of SAR.
In addition, the split is expected to further
improve liquidity.

9Significance of Merger
Further Strengthening and Diversification of Portfolios
The percentage of properties located in the Tokyo area, (Note 1) where stable earnings and growth are expected, will continue to be more than 70%.
Also, mid-sized office buildings and residential property, which are expected to generate above average internal growth and attract investor interests,
will increase significantly.
 As the number of highly liquid properties will increase, we will be able to flexibly execute asset replacements that will contribute to maximizing
unitholder value.
 Further diversification of portfolio and tenants will improve stability.


SAR(Pre-merger)

SSR(Pre-merger)

SAR(Post-merger)
JPY166.8bn

Portfolio after merger
and future strategy

JPY103.8bn
JPY63.0bn

Asset size (Note 2)

1

19.8%

2

3

12.3%

3.8%
32.7%

31.2%
53.4%

Asset class (Note 2)
29.8%

17.8%

OfficeResidence

 Competitive portfolio
Assets in Tokyo area will remain to
be more than 70%. Portfolio
revenue stability and growth are
expected to be strengthened.

11.6%

Retail

40.5%

20.0%

11.8%
15.4%
Logistics

Hotel

Number of properties

35 (Note 4)

18

53

Number of tenants

749

701

1,450

Assets in Tokyo area

74.4%

63.9%

70.4%

Mid-sized assets(Note 2)100.0%

83.0%

93.6%

(Note 5)(Note 2)Other (Note 3)

 Pipeline of Star Asia Group
Aim to achieve JPY200bn in assets
in the short term based on thepipeline of Star Asia Group Active management
Achieve a virtuous cycle ofexpanding asset size and improving
unitholder value through continued
active management(Note 1): Office and Retail refer to the 23 wards of Tokyo, Kawasaki City and Yokohama City; Residence, Logistics, Hotel and Student Residence refer to Tokyo, Kanagawa Prefecture, Saitama Prefecture and Chiba Prefecture.
(Note 2): Figures in SAR (pre-merger) are based on the expected acquisition price after the asset replacement; those in SSR (pre-merger) are calculated based on the assumed acceptance price; and those in SAR (post-merger) are calculated
based on the respective expected acquisition/assumed acceptance prices. (Note 3): Assets that are classified as "Other" in SSR (pre-merger) are classified as "Logistics" in SAR (post-merger) in accordance with Star Asia Investment
Management operation guidelines. (Note 4): The figure for the number of properties is after the asset replacement. (Note 5): The number of tenants of SAR (pre-merger) is based on lease contracts effective as of the end of January 2020, 10
the figure for SSR (pre-merger) is based on lease contracts effective as of the end of December 2019, and the figure for SAR (post-merger) is the sum of the figures.

2．Merger Overview

Merger Overview
Merger Scheme▮ Scheme
Method of Merger
Merger Ratio• Absorption-type merger
Surviving corporation: Star Asia Investment Corporation

Dissolving corporation: Sakura Sogo REIT Investment Corporation• SAR : SSR＝1 : 0.89 (1.78 SAR units will be allocated for each 1 SSR unit)* SAR is scheduled to split its investment units 2-for-1 to ensure allocation of at least one SAR unit to SSR unitholders▮ Overview of Post-Merger REIT
(As of end of Jan. 2020 (Forecast))(As of end of Dec. 2019)（As of end of Jan. 2021(Forecast)）

Operating revenue

JPY3,227mil（Note 1）

JPY2,391mil

Operating profit

JPY1,721mil（Note 1）

JPY1,046mil

Ordinary profit

JPY1,494mil（Note 1）

JPY872mil

Net income

JPY1,493mil（Note 1）

JPY704mil

JPY6,634mil
JPY3,226mil
JPY2,776mil
JPY2,775mil

35（Note 2）

18

Asset size (Note)

JPY103.8bn（Note 2）

JPY63.0bn（Note 3）

Portfolio cap rate

5.0％ (Note 2)

4.9％（Note 3）

LTV

47.0％（Note 4）

46.3％

53（Note 2）
166.8bn（Note 2）
4.9％（Note 2）
45.8％（Note 5）

Dividend per Unit

JPY2,788（Note 1）

JPY2,116

JPY 3,315

Forecasted DPU for former SSR
unitholders (Note 6)

JPY 2,950

Number of properties(Note 1): Figures are from “Notice Concerning Revision to Forecasts of Operating Results and Distributions for the
Fiscal Period ending January 31, 2020 and July 31, 2020” released today(Note 2): Figures are after the asset replacement. (Note 3): Figures are based on acquisition price (expected
receipt price).
(Note 4): Calculated based on the (forecasted) Balance Sheet as of end of January 2020. (Note 5): The postmerger LTV is the estimated adjusted cruising value. (Note 6): Figure is calculated based on merger ratio of 1:0.89

12

Merger Overview
Schedule
 The merger of SAR and SSR is scheduled as follows
 SAR and SSR are scheduled to hold their unitholders’ meetings at the end of March 2020 to approve the merger agreement.

March 2, 2020

Execution of merger
agreement

Execute the Merger Agreement-

March 30, 2020

SSR’s unitholders’ meeting

Obtain Approval of Merger Agreement at Unitholders’ Meetings of SAR and SSR-

March 31, 2020

SAR’s unitholders’ meeting

July 30, 2020

Delisting of SSR-

To effect the merger agreement, approval by special resolution is required (withthe attendance of majority of voting rights and at least 2/3 voting in favor among
the attended unitholders) at the unitholders' meetings of SAR and SSR
Unitholders are kindly requested to vote in favor of SAR and SSR at theunitholders’ meeting.
(For details, please see the notice of the unitholder’s meeting, which will bedelivered later)

Merger Takes Effect-August 1, 2020

Independent financial advisors were retained by SAR and SSR in negotiating themerger agreement and the terms were determined after conducting due
diligence with each other (including inquiries from the special committee for
SSR) with the approval of the board of directors of SAR and.

Effective date of merger

1.78 SAR units will be allocated for each SSR unit
Any unit of less than one unit will be purchased and a cash payment for thesale of such fractional unit will be made to unitholders.

Payment of Cash Upon Merger
Within a reasonable
period from theeffective dateCash payment upon merger

Note: SSR unitholders who made investment unit purchase demand will be excluded.

-

A cash payment upon the merger is scheduled to be made to SSR unitholders(Note) upon the merger in an amount that corresponds to the cash distribution
made during SSR’s business period from January 1, 2020 to July 31, 2020.

13

3．Post-Merger Growth Strategy

Post-Merger Growth Strategy ～ Post-merger Portfolio Management Strategy
 The current investment policy of SAR will be retained after the merger to pursue maximizing unitholder value.

Post-merger Investment PolicyA portfolio predominantly located in Tokyo area

Focus on mid-sized assets

Secure stability and growth through diversificationof asset types
 Commitment of Star Asia Group(Star Asia Group’s estimated ownership in postmerger investment corporation: approx. 13.4％)

Post-merger Portfolio
Total:

JPY166.8bn(Calculated by simply combining the acquisition price of SAR
portfolio and the assumed price of acquiring SSR portfolio)

Assets in Tokyo area:

70.4％

Hotel:
JPY20.5bn
12.3%
Logistics:
JPY33.3bn
20.0%

Retail:
JPY19.6bn
11.8%

Office:
JPY67.6bn
40.5%

Residential:
JPY25.7bn
15.4%(Note): The ratio of variable rent to net revenue from the hotel portfolio of the post-merger entity.

SAR’s Views on Each Asset TypeSpecific Management Policy

OfficeOfficeMiddle-sized office buildings are lesssusceptive to the oversupply of large officebuildings expected in the future and SAR
forecasts that supply and demand for middlesized office will continue to remain tight.

Focus investment on mid-sized officebuildings in urban areas with high population
density predominantly in the Tokyo area, andseek growth through increase of rent.

RetailRetailThere are increasing concerns over deteriorating
business environment for primarily suburban brickand-mortar stores selling non-essential goods on theback of the rise of e-commerce and the shift inconsumer values towards services and experience
over material goods.

Suburban and regional retail facilities are notinvestment targets for the time being and they are
to be replaced in the future. Focus will be urban retailfacilities after conducting an analysis of the potentialof the area, etc., based on population in the tradearea and demographics.

Residential

Residential

This is the most stable asset type, and has
growth potential as rents have been increasingin the current environment.

Invest in competitive (including rent levels)
properties in light of demographic analysis
based on the mid- to long-term
macroeconomic environment.

Logistics

Logistics

SAR predicts stable revenue from logistics
facilities in areas adjacent to densely
populated areas in the Tokyo area with strong
tenant demand.

Continue to focus on logistics facilities in theTokyo area (in particular, within 30km ofTokyo Station) that are easy to find new
tenants.

Hotel

Hotel

While large cities can capture both businessand tourism demand, the primary demand forhotels in regional cities is tourism. There is arisk of fluctuation in revenue due to changes inthe tourism environment and supply of newhotels.

Only invest in urban hotels geared towards
business travelers, and prioritize stability of theportfolio, by keeping the ratio of variable rent
(Note) at 10% or lower in principle.

15

Post-Merger Growth Strategy ～ Continuous implementation of active management
 SAR’s unrealized gains (appraisal value at end of fiscal period - book value at end of fiscal period) have been

increasing steadily. We will continuously consider to distribute return of gains on asset sales to unitholders throughactive management.

Record of five times Asset Replacements
Transfer
Urban Park Yoyogikoen
Transfer
Price

1,100 million

Appraisal
Value

1,000 million

yen

yen

Oak Minami-Azabu
Transfer
Price

5,020 million
yenAppraisalValue

3,470 million
yen

Hakata-eki Higashi 113
Transfer
Price

2,850 million
yenAppraisalValue

2,090 million
yen

Urban Park Shin-Yokohama
Transfer
Price

2,775 million
yenAppraisalValue

2,580 million
yen

1st asset
replacement
Gain onSale:
150 million
yen

2nd asset
replacement
Gain onSale:
1,510
million yen

3rd asset
replacement
Gain onSale:
820 million
yen

4th asset
replacement
Gain onSale:
190 million
yen

Mezzanine Loan Debt Investment
Idea on Mezzanine Loan Debt Investment

Acquisition
Urban Park Gokokuji
AcquisitionPrice

1,460 million
yenAppraisalValue

1,530 million
yen

Baraki Logistics

Transfer
Price
AppraisalValue

3,500 million
yen
2,670 million
yen

5th asset
replacement
Gain onSale:
1,610
million yen

 Secure revenue exceeding after-amortization yields of the existing realestate portfolio.

AcquisitionPrice

4,700 million
yen Serves as an effective investment using current cash on hand for
accretion.

AppraisalValue

4,850 million
yen Judged likely to assure repayment of principal and interest.

Hotel WBF Fukuoka Tenjin
Minami

Nu
mbe
r

Type

MEZ
-01

Mezzanine(Subordinatedbonds)Star Asia Mezzanine
Loan Debt Investment
Series 1

MEZ-03

Mezzanine(Subordinate
BeneficiaryInterest)

MEZ-04

Urban Park Gyotoku

MEZ
-05

AcquisitionPrice

1,430 million
yen(Note 4)

Appraisal
Value

1,500 million
yen

AcquisitionPrice

1,970 million
yenAppraisal
Value

2,000 million
yenGransit Akihabara
AcquisitionPrice

2,500 million
yenAppraisalValue

2,520 million
yen

Urban Park Ichigao
Alphabet Seven Differentiate from other real estate players in view of diversification ofincome (revenue) opportunities as supplemental investment for actual
real estate in the fiercely competitive real estate market.

AcquisitionPrice

1,810 million
yenAppraisalValue

1,850 million
yen(Note 1): The appraisal value figures shown above are, as of the end of the period immediately preceding the transfer, as of the end ofJanuary 2020, and as of December 1 2019 for assets to be acquired, for transferred assets (including the scheduled one), acquired assets
and assets to be acquired, respectively.

Name of the
security(asset overview)

Acquisition
price(million yen)

Underlying asset, etc.
Interest
rate

Asset nameLocation

400

Relief Premium
Haneda Hotel

Ota-ku,Tokyo

Base rate＋5.0%

Star Asia Mezzanine
Loan Debt Investment
Series３

126

The Royal
GardenResidence
Shirokanedai

Minato-ku,
TokyoBase rate＋5.0%

Mezzanine(Subordinate
loan claims)

Star Asia Mezzanine
Loan Debt Investment
Series 4300

DS Kaigan
Building (Note 3)

Minato-ku,
TokyoBase rate＋5.0%

Mezzanine(BeneficiaryInterest)

Star Asia Mezzanine
Loan Debt Investment
Series 5

150

Sun Maison
Ohorikoen-kita

Fukuokashi,
Fukuoka

Base rate＋5.19%

Total

976(Note 2) : MEZ-02 has already been redeemed (Note 3) : Previously the asset name was Premium Kaigan Building(Note 4): Investment to MEZ-05 is scheduled to be on March 6, 2020.

16

Post-Merger Growth Strategy ～ Pipeline that enables examination and execution ofdiverse action plans The post-merger REIT will utilize and take advantage of Star Asia Group’s robust support and Star Asia Investment Management’s

sourcing capabilities. Goal is to achieve JPY200 bn in assets in the near term
Properties with Preferential Negotiation Rights and Star Asia Group’s Pipeline
 Properties that are stable and have fixed minimum selling prices and yields exceeding SAR’s current portfolio
Total Appraisal：

Properties with Preferential Negotiation Rights
OHA Building(Note 2)

Expanded Tokyo
Area

Office(Note 1)

Nishi-Ikebukuro 1Urban Park Tokiwadai
Urban Park Mitsuike Koen
Chome bldg.
Koen
Tokyo Area

RetailTokyo Area

Residential

Tokyo Area

Residential

Shimotakaido
Project

HAKUSAN HOUSETokyo Area

Student Housing

Other Properties Managed by the Sponsor Group (as of December 31,2019) Total Appraisal Value:
33.8%
48.4%

JPY29.9bn

31.5%

Tokyo Area

URBAN CENTER
Hakata Office Project
MidousujiStudent Housing

Tokyo Area

OfficeOther Area

Office

JPY22.7bn

Tokyo Area

Residential

Other

Logistics
Hotel
17.8%

Asset Size targets

Example of the properties
managed by Star Asia Group
Higashiougijima Center(Logistics)

68.5%

Post-merger
Asset Size

JPY166.8bn

Asset Sizetarget by
2020

Aim to further expand
assets over medium tolong term

JPY200bn(Note 1):As of the date of this document, among the properties with priority negotiating rights held by SAR, the total amount of the price is indicated for properties for which a priority negotiating price has been determined, and the total amount of the most recent appraisal
value or survey price is indicated for properties for which a priority negotiating price has not been determined.
(Note 2): “Expanded Tokyo Area” stands for suburban Tokyo (outside 23 wards) and major cities in Kanagawa (excluding Kawasaki-shi and Yokohama-shi) and Saitama for offices and retail properties.

17

About Star Asia Group～

Organizational Outline of Star Asia Group
Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner

Star Asia Group is a privately owned, independent investment management group that focuses on investments in Japanese realestate related opportunities.
• Concepted in 2006, Star Asia Group has invested over JPY661bn since its foundation in 2007. The current balance ofinvestments is over JPY172bn.1• Star Asia Group has 392 officers and employees including over 40 investment and asset management professionals based inTokyo or New Jersey, USA.1• We always operate under the Guiding Principles which continuously drive the group to become and remain as one of theleading real estate investment management firms in Japan.
• The group’s strong track record and long-term partnership approach with our investors have been integral in attracting
significant capital from sophisticated global investors, including large U.S. university endowments and foundations,Japanese and European pension funds, U.S. and Asia based family offices as well as other global real estate investors.
• The group is committed to its disciplined Investment Philosophy and SAR strives for its most important goal of meeting andexceeding unitholders’ expectations.

Star Asia Group
Listed J-REIT
Asset manager

Private placement
fund management

Star Asia
Management
LimitedStar Asia
Investment
Management Co.,Ltd.

• Registered as an
Investment Advisor
with the US Securities
and Exchange
Commission• Manages multiple
private placement
funds through sistercompanies
Provides know-how
contributing to SAR’sinternal and external growth
as its sponsor

Star Asia
Investment
Corporation• Support of Construction
Management
Department• Provides advice basedon abundant experience
in real estate-related
debt investment• Provides additional
resource as needed

Asset management

Star Asia Capital Corp Limited

Star Asia Asset
Advisors Co., Ltd.

• Assets under management is JPY19.7bn1• Asset management
and brokerage forprivate placement
funds; real estate
asset and trust
beneficiary interest
brokerage; andproperty management.

Lion Partners GK

Star Asia Sogo
Kaihatsu Co., Ltd.
• Star Asia Group’s realestate development
company• Currently develops
multiple properties

Asset management of
warehousing funds andprovides support fororigination of bridge
funds

Holds SAR’s investment
units (97,000 units;
equivalent to JPY11bn(17.9%)) 2
Silent partnershipinvestment in properties
with preferential negotiationrights owned by SAR

Holds SSR’s investment
units (16,896 units;
equivalent to JPY1.6bn(5.1%))2

Development andoperation of newgeneration student
accommodation

Private placement
fund

Unlisted investment company

Currently develops
properties withpreferential negotiationrights owned by SAR• Hakata office project

Development andoperation of hospitality
properties; listed

GSA Star Asia KKStar Asia Japan
Special SituationsLP• A 50/50 joint venturewith GSA Group, a
global pioneer inpurpose built student
accommodation (PBSA),
that develops andoperates new-generation
PBSA• Star Asia Group’s
flagship fund
• Assets undermanagement is
JPY39.6bn1• Following the first
Hakusan House project,currently works on thesecond Shimotakaido
project• Actively investing
based on its
investment capacity

Provided over JPY90bn
properties (based on
SAR’s acquisition price)
to SAR since SAR’slisting

Currently operates
properties withpreferential negotiationrights owned by SAR• HAKUSAN House• KAMIKITA House• Urban Park Mitsuike
Koen

Kachikaihatsu Co.,Ltd.
• Listed on TSE 2nd
Section （8010）;
develops andoperates hotels• Star Asia Group
became a sponsor in
Nov. 2018 and holds
75.53% of issued
stock

Under the business
partnership agreementwith Star Asia Group, thecompany provides to
SAR information on saleof properties as adeveloper and operatorof hotels• Urban Park Tokiwadai
Koen• OHA Building

Star Asia Group with expanding business provides strong support to SAR
1. As of June 30, 2019

2. As of September 6, 201918

Post-Merger Growth Strategy
Financial Standing The merger of SAR and SSR is expected to diversify lenders and strengthen bank formation
 We will continue to implement appropriate LTV control while paying attention to the diversification of repayment dates

Bank formation
Star Asia Investment Corporation(Pre-merger/expected figure as ofMarch 31 2020)

The Nishi-Nippon
The Bank
City Bankof Fukuoka
1.8%
2.1%
MUFG Bank
2.5%

Mizuho Trust &Banking
1.5%

ORIX Bank
6.8%
Risona Bank
9.6%
JPY29,200mil

JPY55,040mil

Shinsei Bank
9.1%

Star Asia Investment Corporation(Post-Merger)
The Nishi-Nippon
The Bank City Bank
3.0%
of Fukuoka
2.6%
ORIX Bank
2.4%
MUFG Bank
Risona Bank
1.7%
9.0%

The Nishi-Nippon
City Bank
5.1%

The Bank of
The DaiFukuoka
ichi Life Sumitomo Mitsui
3.4%
Insurance
Trust Bank
0.9%
3.1%

Sumitomo
Mitsui Banking
26.8%

Risona Bank
8.7%

Aozora Bank
8.7%

Sakura Sogo REIT Investment
Corporation(Pre-merger/as of February 29 2020)

Sumitomo Mitsui
Banking
30.8%

The Dai-ichi
Life Insurance
0.6%
Mizuho Trust &Banking
0.9%
Sumitomo Mitsui
Banking
28.2%

Aozora Bank
JPY84,240mil
9.3%

Aozora Bank
10.3%

Mizuho Bank
24.1%

Sumitomo Mitsui
Trust Bank
10.0%

Shinsei Bank
30.8%

Sumitomo Mitsui
Trust Bank
13.7%

Shinsei Bank
16.6%
Mizuho Bank
15.7%

Balance of borrowings (unit: million yen) (Note)
FP of therepayment date

SAR

SSR

Post-merger(million yen)
16,00016,0009th FP

7,300

13.3%

0

0.0%

7,300

8.7%

10th FP

4,000

7.3%

10,90037.3%

14,900

17.7%

11th FP

10,760

19.5%

0

0.0%

10,76012.8%

12th FP

7,300

13.3%

6,000

20.5%

13,300

15.8%

13th FP

8,150

14.8%

1,600

5.5%

9,750

11.6%

14th FP

0

0.0%

5,600

19.2%

5,600

6.6%

6,000
6,000

15th FP

4,690

8.5%

5,100

17.5%

9,790

11.6%

4,000
4,000

16th FP

4,840

8.8%

0

0.0%

4,840

5.7%

2,000
2,000

17th FP

8,000

14.5%

0

0.0%

8,000

9.5%

00

Total

55,040100.0%

29,200100.0%

84,240100.0%SAR

SSR

Post-merger

14,00014,00012,00012,00010,00010,000
8,000
8,000

9th
FP
第9期

10th
FP
第10期

11th
FP
第11期

12th
FP
第12期

13th
FP
第13期

14th
FP
第14期

15th
FP
第15期

(Note): The balance of borrowings are as of March 31, 2020 for SAR (estimates) and as of February 29, 2020 for SSR. Post-merger number is the simple sum of both REITs outstanding borrowings

16th
FP
第16期

17th
FP
第17期

19

4．Appendix

Appendix①
Structure of Management of the two REITs
 Star Asia Investment Management is managing the two REITs (SAR and SSR).
 We will manage both REITs to maximize unitholders' interests while paying close attention and avoiding any conflictsof interest between the two REITs.

Organization Chart-

Measures to avoid conflict of interest

SSR Investment Management Division has been newly
established to manage the two REITs
Shareholder’s Meeting

Since Star Asia Investment Management (“SAIM”) will be providing asset
management services to both SAR and SSR, the Rules on Handling of
Property Information (“Rules”) and the decision-making process have been
established in order to avoid conflicts of interest. The Rules stipulate how toallocate information regarding acquisition of properties as follows.
① Rules on allocating information regarding acquisition of property

Corporate Auditor

a. All property information obtained by SAIM will be registered with, andcentrally managed by, the Finance Management Division.

Investment Committeeb. Based on the year of completion of the registered property as stated in
the real estate register, SSR Investment Management Division willconsider the acquisition if the year is an even number, and SAR
Investment Management Division will consider the acquisition if theyear is an odd number. If more than one property is being sold by thesame seller at the same time, the year of completion of the oldest
property will be used.

Board of Directors

Compliance Committeec.

President and CEO

If both SSR Investment Management Division and SAR Investment
Management Division decide not to acquire the property as a result ofconsideration, it should be reported to the Finance Management
Division. The Finance Management Division will then provide theinformation to other investment management divisions.

② Decision-making process at SAIM
Compliance Officer

New
SSR Investment
Management Division

SAR Investment
Management Division

Finance
Management Divisiona. When the Investment Committee discusses an agenda concerning theinvestment management of either SAR or SSR, members who belong
to the Investment Management Division of the other may not participate
in the discussion nor participate in the resolution.
b. The same applies to the Compliance Committee and the Board of
Directors.
21

Appendix②
GoodwillGoodwill is calculated as the difference between the “market value of net assets " of the target and the "merger price" agreed by both parties.
It is not clear at this point whether the goodwill will be positive or negative as the "merger price" is determined by the investment unit price of SAR as of
the timing the merger becomes effective.

How goodwill arise:Market value B/S of SSR(as of Aug. 1, 2020) (Forecast)

Merger price(=SAR unit price x number of newly issued units)

Post-merger B/S

If SAR unit price drops
If SAR unit price rises
after public announcement after public announcement

Post-merger
debt

Total assets
JPY68.4bn

AssumedLiabilities
JPY33.8bn
Market value ofnet assets
JPY34.5bn

Post-merger
total assets

Positive goodwill
Negativegoodwill

Merger price

Positive/negative
goodwill

Merger price

Accounting treatment by surviving corporation when goodwill arises

Impact of change in SAR unit price

Positive goodwill
Merger price

SAR unit price(as of merger
effective date)

Number of newly
issued units① If SAR unit price rises after public announcement, the merger price will

B/S

② If SAR unit price drops after public announcement, the merger price will be– “Larger negative goodwill” or “smaller positive goodwill”

Impact on
distributions

The portion that was not distributed in
the first fiscal period after the merger
is recorded as reserve for temporary
difference adjustment in net assets



Recorded as extraordinary gain in thefirst fiscal period after the mergerAt least 1% of the initial reserveamount of the reserve for temporary
difference adjustment is drawn down
continuously and applied to
distributions

Can be used flexibly as source ofdistribution added to net income

assets

Amortized on a straight-line
basis over within 20 years as
operating expenses

Amount equivalent togoodwill amortization
distributed as allowance fortemporary difference
adjustment

P/L– “Smaller negative goodwill” or “larger positive goodwill”

Negative goodwill
 Recorded as intangible

increase.

reduced.

Post-merger
net assets

Allowance for temporary difference adjustment (distribution in excess of earnings) is treated as“dividends (subject to withholding)" under tax laws and as "refund of contribution“ for accounting
purposes22

Appendix③
Post-merger Portfolio List

Acquisitio Appraisal Investmen Appraisaln PriceValuet Ratio
NOI yield(mil yen) (mil yen)
(%)
(%)

3,070
6,960
2,510
3,260

1.8
3.6
1.1
1.2

4.7
5.1
6.4
5.9

Asahi Building

Yokohama city,
Kanagawa

6,320

7,840

3.8

5.0

Hakata-eki East Place
Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building
Amusement Media Gakuin
ShinkanSeishin Building
NK Building
Tsukasamachi Building
Takadanobaba Access
Azabu Amerex Building
Hiei Kudan Building

Fukuoka city, Fukuoka

2,286

2,590

1.4

5.2

Chuo-ward, Tokyo

1,450

1,550

0.9

4.7

Shin Yokohama Nara Building

Yokohama-city,
Kanagawa

The Portal Akihabara

Chiyoda-ward, Tokyo

Minato-ward, Tokyo
Osaka city, Osaka
Shibuya-ward, Tokyo

Shibuya-ward, Tokyo

2,580

2,690

1.5

4.0

Kobe city, Hyogo

7,440

7,520

4.5

5.8

Shibuya-ward, Tokyo

1,020

1,160

0.6

4.0

Sinjuku-ward, Tokyo

10,700
5,350
4,610
4,000
2,770
2,430

10,700
5,350
4,610
4,000
2,770
2,430

6.4
3.2
2.8
2.4
1.7
1.5

3.5
3.8
3.8
4.0
3.8
3.9

2,300

2,300

1.4

4.8

1,510
67,6095,600

1,510
72,820
5,600

0.9
40.5
3.4

4.0
4.5
7.1

Chiyoda-ward, Tokyo
Chiyoda-ward, Tokyo
Shinjuku-ward, Tokyo
Mintao-ward, Tokyo
Chiyoda-ward, Tokyo

RetailSubtotal
La Park Kishiwada

Kishiwada city, Osaka

Suroy Mall Chikushino

Chikushino city,
Fukuoka

6,920

6,920

4.1

5.7

Seiyu Minakuchi

Koka city, Shiga

3,310

3,310

2.0

7.4

Suroy Mall Nagamine

Kumamoto city,
Kumamoto

3,800

3,800

2.3

5.7

19,63019,630

11.8

6.4

Subtotal

Total

Acquisition Price(mil yen)

166,895

Appraisal Value(mil yen)

176,966

Appraisal NOI
yield
(%)

4.9

(Note) : Figures are after the asset replacement. The appraisal values of SAR properties as of the date of thisdocument are the appraisal values as of the end of January 2020 (as for Urban Park Ichigao and Urban Park Gyotoku
as of December 1 2019), and the acquisition price and appraisal value of SSR properties as of the date of thisdocument are the estimated acceptance price (Same for the following pages).

Residence

Shibuya-ward, Tokyo

2,973
6,065
1,763
2,042

Minami-Azabu Shibuya Building
Honmachibashi Tower
Nishi-Shinjuku Matsuya Building
Shibuya MK Building

Property Name

Logistics

Location

Location

Acquisitio Appraisal Investmen Appraisaln PriceValuet Ratio
NOI yield(mil yen) (mil yen)(%)(%)

Suginami-ward, Tokyo

2,045
6,315
1,490
1,460
1,186
1,550
1,167

2,480
8,240
1,650
1,530
1,190
1,620
1,180

1.2
3.8
0.9
0.9
0.7
0.9
0.7

4.4
4.7
5.4
4.8
5.0
5.7
4.7

Yokohama city,
Kanagawa

1,810

1,850

1.1

4.7

1,430
2,450
2,120
985
1,740
25,748
6,942

1,500
2,450
2,120
985
1,740
28,535
7,310

0.9
1.5
1.3
0.6
1.0
15.4
4.2

4.7
5.7
5.2
5.4
3.8
4.9
4.8

Urban Park Azabujuban
Urban Park Daikanyama
Urban Park Namba
Urban Park Gokokuji
Urban Park Kashiwa
Urban Park Ryokuchi-koen
Urban Park Koenji

Minato-ward, Tokyo

Urban Park Ichigao

Shibuya-ward, Tokyo
Osaka city, Osaka
Toshima-ward, Tokyo
Kashiwa city, Chiba
Suita city, Osaka

Ichikawa City, Chiba
Urban Park Gyotoku
Shiroi city, Chiba
Shiroi Logiman
Osaka city, Osaka
Matsuya Residence Sekime
Osaka city, Osaka
Urban Plaza Imazato
Shibuya-ward, Tokyo
Abode Yoyogi Parkside
Subtotal
Saitama city, Saitama
Iwatsuki Logistics

Yokohama Logistics

Yokohama city,
Kanagawa

3,560

4,170

2.1

5.7

Funabashi Logistics
Baraki Logistics

Funabashi city, Chiba
Ichikawa city, Chiba

7,875
4,700

8,650
4,850

4.7
2.8

5.3
4.3

Tokorozawa Logistics

Tokorozawa city,
Saitama

1,300

1,350

0.8

5.7

Funabashi Nishiura Logistics I
Funabashi Nishiura Logistics II

Funabashi city, Chiba
Funabashi city, Chiba

3,000
821

3,020
850

1.8
0.5

5.1
7.0

Matsubushi Logistics

Kita-Katsushika-gun,
Saitama

2,755

2,860

1.7

5.5

Funabashi Hi-Tech Park I
Funabashi Hi-Tech Park II

Funabashi city, Chiba

1,710
701
33,364
2,069
1,750
3,827

1,710
701
35,471
2,320
1,490
3,750

1.0
0.4
20.0
1.2
1.0
2.3

6.5
6.8
5.2
5.5
4.3
4.4

3,248

3,250

1.9

4.6

1,970

2,000

1.2

4.6

2,500

2,520

1.5

3.9

3,180

3,210

1.9

4.0

2,000
20,544

1,970
20,510

1.2
12.3

4.3
4.4 23

Funabashi city, Chiba

Subtotal
Osaka city, Osaka
R&B Hotel Umeda East
Osaka city, Osaka
Smile Hotel Namba
Best Western Tokyo Nishi-Kasai Edogawa-ward, Tokyo
Best Western Yokohama
Hotel

OfficeProperty Name

(Note)

Yokohama city,
Kanagawa

Hotel WBF Fukuoka Tenjin
Fukuoka city, Fukuoka
Minami
Chiyoda-ward, Tokyo
GLANSIT Akihabara
Best Western Tokyo Nishikasai
Edogawa-ward, Tokyo
GrandeOsaka city, Osaka
Hotel WBF Art Stay Namba
SubtotalAppendix④
Portfolio List
Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty nameMinami-Azabu Shibuya
Building

Honmachibashi Tower

Nishi-Shinjuku Matsuya
Building

Shibuya MK Building

Asahi Building

Hakata-eki
East Place

Acquisition price

2,973 million yen

6,065 million yen

1,763 million yen

2,042 million yen

6,320 million yen

2,286 million yen

Appraisal value

3,070 million yen

6,960 million yen

2,510 million yen

3,260 million yen

7,840 million yen

2,590 million yen

Structure/Floors

SRC B1/7F

S/SRC B1/21F

SRC B1/9F

S 6F

S/SRC B2/12F

SRC 9F

Location

Minato Ward, Tokyo

Osaka City, Osaka

Shibuya Ward, Tokyo

Shibuya Ward, Tokyo

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

1,096.86 m2

1,129.86 m2

Lot area

766.11 m²(Leasehold)1,274.37 m²

589.94 m²(surface right)

620.42 m²(of which 2.62 m²
leasehold)Total floor areas

4,137.21 m²

15,407.83 m²

5,117.80 m²

1,982.86 m²

12,353.83 m2

6,243.13 m2

Construction completion

June 15, 1993

February 8, 2010

May 28, 1987

July 31, 1993

November 25, 1994

February 24, 1986

Property Features

 Located in Minami-Azabu, a well-  Located in the Yodoyabashi / Located in the Nishi-Shinjuku
 Located in the Shibuya area, one  Located in the Yokohama Station
known, high-class residential area
Hommachi area, one of Osaka’s
area, which has a highof Japan’s leading commercial
West Exit area where there is athat is also home to embassies ofleading office districts.
concentration of office buildings.
districts, the property has a strong
high concentration of commercial
various countries.
appealfor
fashionand
IT-related
and office buildings.
 Situated near facilities such as the  In addition to access by train, thecompanies.
 In addition to access by train, theOsaka Chamber of Commercearea is well served by bus routes
 The floors can be subdivided intoarea is well served by bus routes
and Industry, MyDome Osaka,and provides convenient access Following the completion of thesmaller spaces, enabling theand provides convenient accessand City Plaza Osaka, the area
to various locations within central
Shibuya Station areabuilding to flexibly accommodate
to various locations within central
has a high concentration of office
Tokyo.
redevelopment project, further
demand from branch offices ofTokyo.
buildings.
development is expected goingcompanies in various fields.
 The property is expected to attract
forward.
 The area is highly appealing to The residences on the upper floors ofstrong demand from affiliated With the completion of thecompanies in fashion, mass
the building offer excellent views
companies of tenants of largeYokohama Station area
media, and IT-related fields.
overlooking landmarks such as Osaka
scale buildings located in Shinjuku
redevelopment project and theCastle.
sub-center or its surrounding area.
Excite Yokohama 22 project,further development is expectedgoing forward.

 Located in the Hakata Station
East area, which has a higher
concentration of offices after thecompletion of redevelopment
projects in front of the station.
 Even more vitalization is expected
for the Fukuoka (Hakata) areawith the start of “Tenjin Big Bang
Project” and the extension ofsome Fukuoka City Subway lines.

24Appendix④
Portfolio List
Asset type
Property name

OfficeOfficeNihonbashi Hamacho Park Amusement Media Gakuin
Building
HonkanOfficeOfficeOfficeOfficeHigashi Kobe Center
Building

Amusement Media Gakuin
ShinkanSeishin BLDG.

NK BLDG.

Acquisition price

1,450 million yen

2,580 million yen

7,440 million yen

1,020 million yen

10,700 million yen

5,350 million yen

Appraisal value

1,550 million yen

2,690 million yen

7,520 million yen

1,160 million yen

10,700 million yen

5,350 million yen

Structure/Floors

SRC 11FSRC S 8F/B1F

SRC 14F

RC 7F

SRC 10F/1B

SRC 10F/1B

Location

Chuo Ward, Tokyo

Shibuya Ward, Tokyo

Kobe City, Hyogo

Shibuya Ward, Tokyo

Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

433.21 m²

8,488.11 m²

203.43 m²

886.93㎡

590.72㎡

319.04 m²
Lot area(Multiplied by the share ratio ofholding the property)

Total floor areas(Multiplied by the share ratio ofholding the property)

1,892.18 m²

25,740.46 m²

913.71 m²

7,624.66㎡

4,994.70㎡

Construction completion

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

March 31, 1989

October 28, 1991

2383.76 m²

Property Features

 Located in Nihonbashi Hamacho  Stable revenue is expected since  Provides convenient access to Stable revenue is expected since  Located 2 minutes walk from Situated about a 1 minute walka vocational school has rented theoffice and commercial areas sincearea, allowing easy access toit has the same tenant as that of"Shinjuku-3-chome " Station on
from "Iwamotocho" Station on theentire building for many years
the building is centrally locatedmajor business areas in Central
Amusement Media Gakuin
the Tokyo Metro Marunochi Line,
Toei Shinjuku Line in close
since
the
completion.
between
Osaka
and
Kobe,
with
an
Tokyo and use of various railways.
Honkan.
Fukutoshin Line and Toei
proximity to the nearest train
The
building
isappealingto
11-minuteride
toSannomiya
ShinjukuLine,
thispropertyhasstation and with several travel A number of major companies
 The building is appealing tocompanies as the property is
Station and 17-minute ride toeasy access to the center oflines at its disposal runninghave their head offices in thiscompanies as the property is
located in an office area with
Osaka Station from Settsu
Tokyo and transportation facilities
through "Kanda" Station,area, as it is a very attractive area
located in an office area withmany
foreign-affiliatedcompanies
Motoyama,
thecloseststationtoand links.
“Akihabara” Station and "Awajifor companies in various fields
many foreign-affiliated companies,
andIT-related
firms
as
well
as
the
property.
cho” Station all located within
and of various sizes.
IT-related firms as well as Being situated along a main road,companies in the creative sector  There is parking space for 180
walking distance, this property
companies in the creative sector
it benefits from excellent visibility.
 Further development of the area issuch as advertising and content
cars on the premises and for 112
offers excellent access tosuchasadvertisingandcontentThe
area
surrounding
theproperty
expected considering that it notcreation firms.
cars off the premises, which istransportation services and links.
creation firms.
is a commercial area with mid-toonly has characteristics of an Further development of the area isvery appealing to a wide range ofhigh rise store and office Also, being located along
office area, but also has Further development of the area is
expected considering that it is notretail tenants, particularly stores
buildings, etc. extending along
Yasukuni-Dori , it benefits fromcharacteristics of residential andexpected considering that it is not
only an office area, but also has
seeking to attract customers.
Shinjuku-Dori.
excellent visibility.
tourism areas.
only an office area, but also haselements of residential andelements of residential and The property has a standard floor  The property has a standard floor
tourism areas.
tourism areas.
rental space area ofarea of approximately110 tsubo.
approximately 180 tsubo which ispartitionable.

25Appendix④
Portfolio List
Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty name

Tsukasamachi BLDG.

Takadanobaba Access

Azabu Amerex BLDG.

Hiei-Kudan BLDG.

Shin-Yokohama Nara
BLDG.

The Portal Akihabara

Acquisition price

4,610 million yen

4,000 million yen

2,770 million yen

2,430 million yen

2,300 million yen

1,510 million yen

Appraisal value

4,610 million yen

4,000 million yen

2,770 million yen

2,430 million yen

2,300 million yen

1,510 million yen

Structure/Floors

SRC 8F/1B

SRC 14F/1B

SRC 8F/1B

SRC S 11F/1B

S RC 1F/1B

SRC S 8F

Location

Chiyoda Ward, Tokyo

Shinjuku Ward, Tokyo

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

Yokohama City, Kanagawa

Chiyoda Ward, Tokyo

700.59㎡

184.76㎡

478.27㎡
Lot area

709.52㎡

930.70㎡

601.71㎡(Multiplied by the share ratio ofholding the property)

Total floor areas

4,629.27㎡

5,757.14㎡

2,909.80㎡(Multiplied by the share ratio ofholding the property)

5,356.99㎡

1,010.67㎡

Construction completion

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

March 17, 1992

May 31, 2002

3,205.95㎡

Property Features

 Located approximately 3 minutes
 With "Nishiwaseda" Station on
walk from "Awajicho" Station and in
the Tokyo Metro Fukutoshin Lineeasy distance from the nearest
on its doorstep andtrain station and with several other"Takadanobaba", this propertylines at its disposal including
offers excellent access to"Ogawa-machi" Station andIkebukuro, Shinjuku-sanchome,"Kanda" Station, this property
Shibuya, Otemachi and otheroffers excellent access to main
major areas in the heart of Tokyo
areas in Tokyo City.
city via any of these stations.
 The area surrounding the property  The area surrounding theis a commercial area with mid-toproperty is a mix of commercial
high-rise office buildings and office
and residential area with mid-tobuildings with stores, etc.
high-rise condominiums andextending behind the main road.
office buildings as well as lowrise stores.
 This property’s specs offer a rental
space floor area per standard floor  Each floor has an area ofof approximately 140 tsubo.
approximately 60 ~ 140 tsubo
and is competitive as a rental
property "Kamiya-Cho" "Roppongi 1-chome"  It is located within walking
 Located in the Shin-Yokohama"Azabu Juban" It is located in a
distance "Ichigaya Station“, whichbusiness district, a concentrationcommercial district within a 10
can be used from 4 different train
of offices, it is within walking
minute walk and has convenientlines, and has convenient access.
distance of Shin-Yokohama
access.
Station and has convenient It is located right in front oftransportation.
 It faces Gaien Higashi Dori and has
Yasukuni Shrine and has good
good visibility.
visibility as it faces Yasukuni
 located in a commercial area
Street. located in an area of an
crowded with mid-to-high-rise “First urban redevelopment project
office building where otheroffice buildings and shops andin Toranomon and Azabudai areas"
schools and stores are locatedhotelsis scheduled to be held in theneighborhood, which is expected to  Each floor has an area of 90
 The area of each floor is
improve convenience.
tsubo, making it competitive inapproximately 120 tsubo, whichterms of leasing.
makes it competitive in terms of Each floor area is approximately 70
leasing.
~ 90 tsubo, making it competitive inleasing.

 The property is within walking
distance of Bakurocho Station,
Asakusabashi Station, andAkihabara Station.
 Renovation works were completed
on all floors of the property in2019.
 Each floor is 30 ~ 40 tsubo and isa small office building suitable forstart-up companies.

26

Appendix④
Portfolio List
Asset type

RetailRetailRetailRetailResidence

Residence

Property name

La Park Kishiwada

Suroy Mall Chikushino

Seiyu Minakuchi

Suroy Mall Nagamine

Urban Park Azabujuban

Urban Park Daikanyama

Acquisition price5,600 million yen

6,920 million yen

3,310 million yen

3,800 million yen

2,045 million yen

6,315 million yen

Appraisal value

5,600 million yen

6,920 million yen

3,310 million yen

3,800 million yen

2,480 million yen

8,240 million yen

Structure/Floors

RC S 3F

S 2F

S 4F

S 1F 2F

SRC with slate roofing
B1/12F

1: RC, B1/3F
2: RC, B1/9F

Location

Kishiwada City, Osaka

Chikushino City, Fukuoka

Koka City, Shiga

Kumamoto City, Kumamoto

Minato Ward, Tokyo

Shibuya Ward, Tokyo

28,546.00㎡

417.67 m2

2,469.06 m2

96,101.96㎡（There is also

19,917.56㎡

Lot area

39,799.74㎡

25,321.5㎡ of land leased for use in
the parking lot）

（Land in 16,444.53㎡ is leased)

Total floor areas

65,663.02㎡

31,086.23㎡

31,829.71㎡

13,130.23㎡

2,564.94 m2

8,261.29 m2

Construction completion

August 30, 1994

June 22, 2007

May 31, 1999

August 23, 2007

November 29, 1999

1: November 15, 1982
2: May 30, 2006

Property Features

 Located approximately 3 minutes  It is located in a bed town
 It is within walking distance of the  It is located in an area where Located in Azabu-Juban, an area  Located in the Daikanyama area,
walk from "Haruki" Station on the"Tsukushi-no-ichi" with goodnearest station, and is located in a
shops, condominiums, factories
with an elegant image that also
which produces the latest trends.
Nankai Electric Railway Main Line
access to the center of Fukuoka,
commercial area along the mainand medical facilities coexist in
boasts popular appeal.
 In addition to a stately tiled
and situated in good proximity
and there are many mid- to highroad where large commercial
Kumamoto City. It faces a city
 In addition to a stately tiled
facade, the property is fully
from the nearest train station.
rise and low-rise houses behind.
facilities and public facilities line
road with a lot of traffic and there
facade, the property is fully
equipped with premium
the street.
is a parking lot so it can expect
 The property includes
 The property accommodates aequipped with premium householdhousehold facilities.
visitors from the surrounding area.
approximately 80 tenants ranging
wide range of tenants and is able  Neighborhood type commercial
facilities.
 Adjacent to the Shibuya andfrom various speciality stores toto meet the diverse needs offacility consisting mainly of Neighborhood commercial
 Adjacent to the Roppongi area, a
Ebisu areas, which are leading
outlets of household goods andcustomers.
tenants for daily necessities suchcomplex consisting of foodleading shopping spot in central
shopping spots in central Tokyo.
necessities, entertainment
as foodsupermarkets, clothing stores, With each building
Tokyo.
facilities including numerous
sports clubs, and medical
advantageously positioned on the  It has a high level of entertainment
restaurants and a ten-pin bowling
facilities.
premises, it benefits fromand easy access to transportation,
alley as well as a sports club
excellent visibility from the Japan
so it is possible to attract
resulting in a tenant mix which can
National Route 3 which it faces.
customers from the surrounding
secure demand over a wide age
area.
range.

27

Appendix④
Portfolio List
Asset type

Residence

Residence

Residence

Residence

Residence

Residence

Property nameUrban Park Namba

Urban Park Gokokuji

Urban Park Kashiwa

Urban Park Ryokuchi-koen

Urban Park Koenji

Urban Park Ichigao

Acquisition price

1,490 million yen

1,460 million yen

1,186 million yen

1,550 million yen

1,167 million yen

1,810 million yen

Appraisal value

1,650 million yen

1,530 million yen

1,190 million yen

1,620 million yen

1,180 million yen

1,850 million yen

Structure/Floors

RC 14FRC B1F/5F

SRC B1F/8F

RC 8F

RC 4F

RC SF/1B

Location

Osaka City, Osaka

Toshima Ward, Tokyo

Kashiwa City, Chiba

Suita City, Osaka

Suginami Ward, Tokyo

Yokohama City, Kanagawa

942.66 m2

Lot area

670.39 m2(Of which, 50.85 m2 is contributed to
Toshima Ward as road)

1,597.85 m2

2,804.56 m2

988.26 m2

1,758.84㎡

Total floor areas

2,776.87 m2

2,451.72 m2

4,243.71 m2

5,854.64 m2

1,524.34 m2

5,243.85㎡

Construction completion

January 9, 2013

February 28, 1990

August 28, 1997

March 10,1989

October 13, 1987

July 10, 1998

Property Features

 Located near Namba, one of Located in an area with strong
 Located in the Kashiwa area, aOsaka’s leading commercial
demand from various tenantleading bed town in Chiba, withareas.
groups for single-type residences,
an excellent access to Central
due to the location characteristics
Tokyo.
 In addition to an elegant facade,of having concentration of
the building is fully equipped with
 Further medium- to long-term
universities and junior colleges aspremium household facilities.
growth is expected in the area,
well as Toshima ward having awith completion of various
 The influx of population into
relatively
high
ratio
of
singleredevelopment plans in front ofcentral Osaka due to the impact ofhouseholds.
Kashiwa Station.
strong in-bound demand has had
a stabilizing effect on occupancy
rates.

 Located in the Ryokuchi-koen Located in the Koenji area, which  There are many quiet residentialarea, with good traffic
allows for easy access to major
areas around the station, "Ichigao",
accessibility, providing a lush
areas in the Tokyo metropolitan
and demand from families has
greenery living environment sucharea.
been firm due to the convenienceas “Hattori Ryokuchi-koen”.
of transportation to central Tokyo With many shopping areas,and central Yokohama.
 Popular residential area primarily
discount supermarkets, Consists of 62 units, ranging fromfor families since it is located inrestaurants and pubs, having a
2LDK to 3LDK (area: 62.36㎡~
the Hokusetsu area, which has ahigh appeal to young single79.76㎡), targeted at families
high level of education.
person households of businessperson and students.
 Appealing primarily for families
since some of the units have been  Very popular residential area withrenovated and since it is equipped
its own unique culture, which canwith substantial grade household
be seen in its cafes, vintage
equipment.
clothing shops, and clubs with live
music, among other locations.

28

Appendix④
Portfolio List
Asset type

Residence

Residence

Residence

Residence

Residence

Logistics

Property nameUrban Park Gyotoku

Shiroi LogimanMatsuya Residence
SekimeUrban Plaza Imazato

Abode Yoyogi Parkside

Iwatsuki Logistics

Acquisition price

1,430 million yen

2,450 million yen

2,120 million yen

985 million yen

1,740 million yen

6,942 million yen

Appraisal value

1,500 million yen

2,450 million yen

2,120 million yen

985 million yen

1,740 million yen

7,310 million yen

Structure/Floors

SRC 10F

RC 13F

SRC 15F

RC 10F

RC 8F

Steel construction, zincplated steel roofing, 5floorsLocation

Ichikawa City, Chiba

Shiroi City, Chiba

Osaka City, Osaka

Osaka City, Osaka

Shibuya Ward, Tokyo

Saitama City, Saitama

Lot area

1,122.57㎡（Multiplied by the share ratio ofholding the property）

2,346.39㎡

1,803.70㎡

464.09㎡

15,623.14 m2

Total floor areas

3,301.89㎡（Multiplied by the share ratio ofholding the property）

8,190.11㎡

4,862.83㎡

1,418.03㎡

29,729.72 m2

Construction completion

March 1, 1995

May 9, 1995

August 18, 1989

December 20, 1991

September 4, 2017

October 29, 2014

11,485.06㎡
22,448.08㎡

Property Features

 Located in an area where 5 minutes' walk from Kintetsu
 5-minute walk from Yoyogi Station:  Located in the Iwatsuki area, Otemachi and Nihonbashi are Located within a 6 minutes
supermarkets and home centers
Osaka Line "Imazato" Station, 7
close and convenient for
which offers access to the central
within 20 minutes from thewalking distance from "Sekimeare locatedminutes' walk from Sennichimaetransportation.
Tokyo, northern Kanto, and"Nangyōtoku" station, which is the
Takadono" Station on theLine "Kōji Station", convenient
Tohoku areas.
nearest station. Demand is
Tanimachi Line and approximately
 Since the building was built for Located in a mixed commercial
accessexpected from a wide range ofa7minuteswalking
distancefromsale, the level of facilities is highand residential area on the north Equipped with specifications thatpeople, mainly families, from
"Sekime" Station on the Keihan
and the common area is Conveniently located in the vicinityside of Yoyogi Park and Meiji
offer a high level of versatility,
DINKS to single.
Main Line and "Sekime Seiiku"
substantial.
of the nearest station is a
Jingu Shrine.
such as the vehicle berths, floor
 All 40 units have 3DK floor plans  Composed of family housing units
Station on Osaka Municipal
supermarket, etc.
height, and column interval.
 Consists of 28 units for singles and(Area: 58.43㎡).
Subway's Imazato Sujisen Line.
(Area of about 70 ~ 90㎡)
 Composed of family housing units
small families
 The property is situated in a zone The area surrounding the property(Area: 60㎡ ~ 70㎡)
of Saitama City that offers
 Buildings and structures
is primarily the National Route 163,
incentives for logistics facilities
completed in 2017
making it an excellent property inand therefore benefits fromterns of lifestyle convenience.
considerable government
 The property is further enhanced
support.
by its security additions, offeringspecs which factor in tenants’needs.

29

Appendix④
Portfolio List
Asset type

Logistics

Logistics

Logistics

Logistics

Logistics

Logistics

Property nameYokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Funabashi Nishiura
Logistics I

Funabashi Nishiura
Logistics II

Acquisition price

3,560 million yen

7,875 million yen

4,700 million yen

1,300 million yen

3,000 million yen

821 million yen

Appraisal value

4,170 million yen

8,650 million yen

4,850 million yen

1,350 million yen

3,020 million yen

850 million yen

Structure/Floors

RC 8F

Building 1: Steel construction, flat roof, zincplated steel roofing, 8 floors
Building 2: RC

RC S 5F

S 2F

R 2F

R 4F

Location

Yokohama City, Kanagawa

Funabashi City, Chiba

Ichikawa City, Chiba

Tokorozawa City, Saitama

Funabashi City, Chiba

Funabashi City, Chiba

Lot area

10,565.95 m2

19,858.00 m2

6,240.96 m2

8,645.63 m2

7,142.00 m2

3,964.00 m2

Total floor areas

18,387.89 m2(including 256.15 m2 breakareas etc.)

38,871.45 m2(two buildings combined)

12,471.50 m2

5,994.75 m2

14,018.82 m2

6,316.32 m2

Construction completion

October 1, 1994

1: September 25, 1992
2: August 5, 1997

August 14, 2015

April 30, 1999

October 11, 1985

Warehouse: Mar. 20, 1991
Plant: May 15, 1972
Office: May 13, 1986

Property Features

 Located in the Yokohama bay
 Located in the Chiba bay area,
area, where there are many
where there are many logistics
logistics facilities.
facilities.
 Equipped with specifications that  Equipped with specifications thatoffer a high level of versatility,
offer a high level of versatility,
such as vehicle berths, floor
such as vehicle berths, floor
height, and column interval.
height, and column interval.
 In addition to accessing Central
 In addition to accessing Central
Tokyo, it is possible to access theTokyo, it is possible to access thewider Tokyo area thanks to thewider Tokyo area thanks to the
opening of the Shinagawa section
opening of the Tokyo Gaikanof the Shuto Expressway Central
Expressway.
Circular Route.

 A multi-tenant logistics facility
located near the Wangan Ichikawa
IC of the East Kanto Expressway.
 Enjoys good access to Central
Tokyo as well as the consumption
areas throughout Chiba, allowing
tenants to respond to the needs of
e-commerce operators.
 Located within approx. 5-minute
walk from Futamata-Shinmachi
station on the JR Keiyo Line,
allowing for securement of
employees.
 Property with highly versatile
specifications, including one
passenger elevator, two freight
elevators, a floor height of approx.
6.5 m and a pillar span of approx. 9m-11 m.

 A multi-tenant logistics facility
 Appealing from a standpoint of Appealing from a standpoint ofused also as a warehouse,securing workforce, as it issecuring workforce, as it islocated around 8.7 km from theconveniently located in the Chiba
conveniently located in the Chiba
Tokorozawa IC on the Kan-Etsu
Bay area, where there are many
Bay area, where there are many
Expressway.
logistics facilities, and it is locatedlogistics facilities, and it is located Good access to Central Tokyo,
at 1.4km from the closest train
at approx. 1.1km from the closest
and also capable of covering astation.
train station.
wide range of destinations forIn
additiontoaccesstoCentral
In addition to access to Central
consumption in the Tokyo
Tokyo, the location allows easy
Tokyo, the location allows easy
Metropolitan area with the
opening of the Gaikan
access to wide range of areas
access to wide range of areas
Expressway and the Metropolitan
throughout Tokyo via partial
throughout Tokyo via partial
Inter-City Expressway.
opening of the Gaikan
opening of the Gaikan
 Property with highly versatile
Expressway.
Expressway.
specifications, including two
freight elevators, a floor height of  The facility is provided with highly  The facility is provided with highly
versatile specifications such asversatile specifications such as
approx. 5.5 m-6.0 m, and a pillar
high-ceiling floors and a pillar
high-ceiling floors and a pillar
span of approx. 9.5 m.
span.
span.

30

Appendix④
Portfolio List
Asset type

Logistics

Logistics

Logistics

Hotel

Hotel

Hotel

Property name

Matsubushi Logistics

Funabashi Hi-Tech Park
Factory Ⅰ

Funabashi Hi-Tech Park
Factory Ⅱ

R&B Hotel Umeda East

Smile Hotel Namba

Best WesternTokyo Nishi-kasai

Acquisition price

2,755 million yen

1,710 million yen

701 million yen

2,069 million yen

1,750 million yen

3,827 million yen

Appraisal value

2,860 million yen

1,710 million yen

701 million yen

2,320 million yen

1,490 million yen

3,750 million yen

Structure/Floors

RC 3F

S 2F

S 2F

RC 9F

S 9F

SRC B1F/9F

Location

Kita-Katsushika-gun,
Saitama

Funabashi City, Chiba

Funabashi City, Chiba

Osaka City, Osaka

Osaka City, Osaka

Edogawa Ward, Tokyo

Lot area

11,580.65 m2

13,420.44㎡

8,268.35㎡

730.26 m2

285.28 m2

1,418.00 m2

Total floor areas

19,833.47 m2

7,813.65㎡

4,384.83㎡

3,945.65 m2

1,711.42 m2

5,293.88 m2

Construction completion

March 31, 1997

May 19, 2003

September 5, 2001

October 20, 2000

February 6, 2008

March 19, 1991

Property Features

 Located in Matsubushi area, witheasy access to nearby areas suchas Saitama Prefecture and Chiba
Prefecture, in addition to KitaKanto, Joban, and Tohoku areas.
 Provided with versatile
specifications, such as loading
berths, cargo elevators, highceiling, and a pillar span.
 Back ups from the local
government through activities by
Saitama Prefecture to attract
companies (the “Chance Maker
Saitama Strategy”).

 It is located in the "Funabashi
 It is located in the "Funabashi
High Tech Park", an inland
High Tech Park", an inland
industrial park, which holds
industrial park, which holds
factories and warehouses.
factories and warehouses.
 It is close to National Route 16
 It is close to National Route 16
and has good access with aand has good access with adistance of 30 km between
distance of 30 km between
downtown Tokyo and Narita
downtown Tokyo and Narita
Airport.
Airport.
 Located at the corner of a 16m
 Located at the corner of a 12m
road and a 12m road.
road and a 12m road.
 The building has a total floor
space of approximately 2,400
tsubo and functions sufficiently as
a production base for products.

 Located near Umeda, one of
Osaka’s leading office andcommercial areas.
 With over 200 single-occupancy
rooms, the hotel is able toaccommodate significant
business- and tourism-based
demand.
 Due to the impact of strong inbound demand in Osaka, further
hotel demand is expected.

 Located near Namba, one of A business hotel located within
Osaka’s leading commercial
approx. a 2-minute walk fromareas.
Nishikasai Station of Tokyo Metro
Tozai Line.
 In addition to excellent access toNamba, located near Kyocera Excellent location characteristics
Dome Osaka, addressing multiple
that can attract a fair amount ofbusiness- and tourism-based
Tokyo Disney Resort-related
demand.
leisure travelers, as it stands in astraight-line distance of approx. 4
 Due to the impact of strong
km away from Tokyo Disney
inbound demand in Osaka, further
Resort.
hotel demand is expected.
 A hotel with great appeal to avariety of guests with various
types of guest rooms dependingon the intended use.

31

Appendix④
Portfolio List
Asset type

Hotel

Hotel

Hotel

Hotel

Hotel

Property nameBest Western Yokohama

Hotel WBF
Fukuoka Tenjin Minami

GLANSIT Akihabara

Best WesternTokyo Nishikasai Grande

Hotel WBF Art Stay Namba

Acquisition price

3,248 million yen

1,970 million yen

2,500 million yen

3,180 million yen

2,000 million yen

Appraisal value

3,250 million yen

2,000 million yen

2,520 million yen

3,210 million yen

1,970 million yen

Structure/Floors

SRC B1F/9F

RC 10F

SRC 10F/B1F

S 8F

RC9F

Location

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

Chiyoda Ward, Tokyo

Edogawa Ward, Tokyo

Osaka City, Osaka

Lot area

782.66 m2

543.94 m2

167.74 m2

657.00 m2

335.31 m2

Total floor areas

4,686.09 m2

2,281.49 m2

1,081.97 m2

2,755.19 m2

2,061.38 m2

Construction completion

September 21, 1987

February 20, 2017

September 20, 2017

February 7, 2017

April 7, 2017

Property Features

 A business hotel located within The hotel is centrally locatedapprox. 4-minute walk frombetween Tenjin and Nakasu, thus
“Tsurumi” Station on the JR Keihin
it is expected to attract tourists
Tohoku Line and a 3-minute walkand business guests.
from “Keikyu Tsurumi” Station on the  Demand for hotels is expected to
Keihin Kyuko Line.
increase with a rising number of Excellent location characteristics thatpassengers using the Fukuoka
can attract both business travelers
Airport and development ofand leisure travelers, as its location
additional runways.
has good access to the major areas in Completed relatively recently in
Kanagawa including Yokohama andFebruary 2017.
Kawasaki as well as to Haneda
Airport.
 A hotel with great appeal to a variety
of guests with various types of guest
rooms depending on the intendeduse.

 Located in the Akihabara area, Located in the Nishi Kasai area, Located in the Namba area, one
one of the largest tourism spots inwhich provides the easy access toof the largest commercial areas inTokyo.
main business and tourism areas
Osaka.
 Appealing to guests for thein Tokyo.
 Good access from sightseeing
purpose of business and tourism  The hotel flexibly responds to the
spots and business district,as it is located in a highly
needs of many business people
thereby expected to meet huge
convenient and flourishing area.
and tourists as it provides various
business and tourism demand.
 Offers three types of capsules,
room types in accordance with
 Demand for hotels is expected to
attracting various customers.
purpose of use.
increase as inbound demand rises
 Completed relatively recently in Completed relatively recently inin Osaka.
September 2017.
February 2016.
 Completed relatively recently in
April 2017.

32This document is an English translation of the announcement in Japanese dated March 2, 2020. However, no assurance or warranties are
given for the completeness or accuracy of this English translation.

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