August 22, 2018
To All Concerned Parties
REIT Securities Issuer
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Sakura Sogo REIT Investment Corporation
Representative: Makoto Muranaka,
Executive Director:(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Contact:
Makoto Muranaka,
Representative Director andPresident
Tel:+81-3-6272-6608

Notice Concerning Debt Refinancing
Sakura Sogo REIT Investment Corporation (hereinafter the “Investment Corporation”) announces its
resolution to undertake a refinancing of short and long-term borrowings (hereinafter the “DebtRefinancing”) as follows.
1.

Details of the Debt Refinancing

Classification

Short termLong term

LenderA syndicateof lenders
arranged by
Sumitomo
Mitsui
BankingCorporation
as anarranger(Note 3)

Borrowingamount(billionyen)

Interestrate(Note 1)

0.9

Base
rate +
0.20%(Note 4)

Fixed/
Floating

Date ofborrowing

Repayment
date

August 30,
2019

Floating

August31, 2018

5.1

To be
determined (Note5)

Fixed

February28, 2023

Method ofborrowing

Method ofrepayment

Security(Note 2)

Borrowingbased ona loanagreement
to beconcludedwith thebanks
shown inthecolumn oflenders tothe left

Bulletrepayment
at maturity

Unsecuredandunguaranteed(Note 1) Loan fees and other charges to be paid to the lenders are not included in the “Interest rate”.
(Note 2) The loan agreement will provide some financial covenants such as reserving certain amount of cash in accordance withthe financial situation of the Investment Corporation.
(Note 3) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited, Resona Bank,Limited Aozora Bank, Ltd. and Sumitomo Mitsui Trust Bank, Limited.
(Note 4) The first interest payment will be due on September 30, 2018, and subsequent interest payments will be due at the endof every month and on the principal repayment date. If a payment date is not a business day, payment will be made on
the next business day; provided, however, that if such payment date falls in the next month, payment will be made on
the immediately preceding business day. The “Base rate” applicable to the period for the calculation of the interest
payable on an interest payment date is the one-month Japanese yen Tokyo Interbank Offered Rate (TIBOR) publishedby the Japanese Bankers Association (“JBA”) TIBOR Administration as of two business days prior to the most recent
interest payment date of each interest payment date. The base rate will be reviewed on every payment date. However, if
there is no base rate that corresponds to the interest calculation period, the base rate corresponding to the period

calculated based on the method defined in the agreements will apply. The first period for the calculation of the interest
payable is from August 31, 2018 to September 30, 2018. For changes in the JBA Japanese Yen TIBOR, which is thebase rate, please refer to JBA TIBOR Administration’s website (http://www.jbatibor.or.jp/rate/).
(Note 5) The first interest payment will be due on November 30, 2018, and subsequent interest payments will be due at the end of
every 3-month and on the principal repayment date. If a payment date is not a business day, payment will be made on
the next business day; provided, however, that if such payment date falls in the next month, payment will be made on
the immediately preceding business day. Investment Corporation will issue a separate notice upon the determination of
their interest rates.

2.

Reason for the Debt Refinancing

The Debt Refinancing consists of refinancing a long-term loan of ¥6.0 billion (hereinafter “existingborrowings”) due on 31 August 2018 as stated in the “Notice Concerning Execution of Debt Financing”
announced on 9 September 2016 and repayment of short-term borrowings of ¥1.4 billion which also
have the same maturity date. As stated in the “Notice Concerning Disposition of Domestic Trust
Beneficiary Right (Confomall Sapporo)” which was announced on 28 June 2018, net proceeds from thedisposition of Confomall Sapporo will be appropriated towards the repayment of the short-termborrowings.

3.

Total amount of loan proceeds, purpose of use and effective date(1) Total amount of loan proceeds : 6 billion yen(2) Specific purpose of repayment of existing borrowings(3) Effective date (scheduled) : August 31, 2018

4.

Loans status after the Debt Refinancing(Unit: million yen)
BeforeIncrease(Decrease)

After

Short-Term Loans(Note 6)

1,400

900(500)

Long-Term Loans(Note 6)

27,60026,700(900)

29,00027,600(1,400)29,00027,600(1,400)

1.95

2.91

0.96Total Loans
Total Interest-bearing liabilities
Average remaining years(Note 7)(Note 6) Short-term loans refer to loans with a maturity period of one year or less from the date of borrowing, and long-termloans refer to loans with a maturity period of more than one year from the date of borrowing.
(Note 7) Average remaining years on IPO acquisition date (September 9, 2016) was 2.79.

5.

Future Outlook

The Debt Refinancing is included in the “Flash Report for the Fiscal Periods Ending June 2018” dated
August 15, 2018. As a result there are no revisions to forecasts for the fiscal periods ending December
2018 (July 1, 2018 to December 31, 2018) and June 2019 (January 1, 2019 to June 30, 2019). Forecastcash distributions remain unchanged at yen 2,600 each per unit respectively as stated in the Flash
Report for Fiscal Period Ending June 2018 dated 15 August 2018.
6.

Additional Items Required to Ensure Appropriate Understanding and Judgments by Investors
Regarding Relevant Information

Concerning the risks as they chiefly pertain to the repayment of the funds, please refer to “Part 1. Fundinformation, I. Aspects of fund, 3. Investment risks” stated in the Annual Security Report submitted on May
29, 2018.

Sakura Sogo REIT Investment Corporation website address: http://sakurasogoreit.com/en/