September 9, 2016
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.
Representative: Makoto Muranaka,
Representative Director andPresident
Inquiries:
Mayumi Kobiki,
Chief Financial Officer
Tel:+81-3-6272-6608

Notice Concerning Execution of Debt Financing
Sakura Sogo REIT (hereinafter the “Investment Corporation”) announces today that it has executeddebt financing (the “Borrowing”) as described below.
1. Details of the Borrowing(1) Short-term borrowings (Note 1) (Tranche A)
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Limited
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited¥4.0 billion(1)

Lender(2)

Loan Amount(3)

Interest Rate (Note 2)(4)

Drawdown Date

Base interest rate (Japanese Bankers Association (JBA) onemonth Japan Yen-TIBOR) (Note 3) + 0.2% (Floating rate) (Note4)
September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 31, 2017(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on September 30, 2016 withfollowing interest payment dates on the last day of every month(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(2) Long-term borrowings (Note 1) (Tranche B)

Disclaimer: This press release is for public announcement in regards to debt financing of the Investment Corporation, and has not been prepared forthe purpose of solicitation of investment.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not been registeredunder the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offered in the UnitedStates, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such a case, investors
will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed information on theInvestment Corporation and its executive team as well as the financial statements will be provided in the English prospectus. The securities
referred to in this press release will not be publicly offered or sold in the United States.

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(1)

LenderSumitomo Mitsui Banking Corporation
Shinsei Bank, Limited
Resona Bank, LimitedAozora Bank, Ltd.

(2)

Loan Amount¥6.0 billion(3)

Interest Rate

0.62473% (Fixed rate)(4)

Drawdown Date

September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 31, 2018(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on November 30, 2016 withfollowing interest payment dates on the last day of every 3 months(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(3) Long-term borrowings (Tranche C)(1)

LenderSumitomo Mitsui Banking Corporation
Shinsei Bank, Limited
Resona Bank, LimitedAozora Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
The Bank of Fukuoka, Ltd.

(2)

Loan Amount¥4.0 billion(3)

Interest Rate

0.71096% (Fixed rate)(4)

Drawdown Date

September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 30, 2019(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on November 30, 2016 withfollowing interest payment dates on the last day of every 3 months(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(4) Long-term borrowings (Tranche D)(1)

LenderSumitomo Mitsui Banking Corporation
Shinsei Bank, Limited
Resona Bank, LimitedAozora Bank, Ltd.
ORIX Bank Corporation

Disclaimer: This press release is for public announcement in regards to debt financing of the Investment Corporation, and has not been prepared forthe purpose of solicitation of investment.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not been registeredunder the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offered in the UnitedStates, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such a case, investors
will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed information on theInvestment Corporation and its executive team as well as the financial statements will be provided in the English prospectus. The securities
referred to in this press release will not be publicly offered or sold in the United States.

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(2)

Loan Amount¥6.0 billion(3)

Interest Rate

0.81842% (Fixed rate)(4)

Drawdown Date

September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 31, 2020

(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on November 30, 2016 withfollowing interest payment dates on the last day of every 3 months(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(5) Long-term borrowings (Tranche E)(1)

Lender(2)

Loan Amount

Sumitomo Mitsui Banking Corporation
Shinsei Bank, Limited
Resona Bank, LimitedAozora Bank, Ltd.
ORIX Bank Corporation¥6.0 billion(3)

Interest Rate

0.93842% (Fixed rate)(4)

Drawdown Date

September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 31, 2021

(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on November 30, 2016 withfollowing interest payment dates on the last day of every 3 months(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(6) Short-term borrowings (Tranche F)(1)

LenderSumitomo Mitsui Banking Corporation
Shinsei Bank, Limited(2)

Loan Amount¥1.0 billion(3)

Interest Rate

(4)

Drawdown Date

Base interest rate (Japanese Bankers Association (JBA) onemonth Japanese Yen-TIBOR) (Note 3) + 0.2% (Floating rate)(Note 4)September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

Disclaimer: This press release is for public announcement in regards to debt financing of the Investment Corporation, and has not been prepared forthe purpose of solicitation of investment.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not been registeredunder the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offered in the UnitedStates, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such a case, investors
will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed information on theInvestment Corporation and its executive team as well as the financial statements will be provided in the English prospectus. The securities
referred to in this press release will not be publicly offered or sold in the United States.

3

(6)

Principal Repayment Date

August 31, 2017(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on September 30, 2016 withfollowing interest payment dates on the last day of every month(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(7) Short-term borrowings (Tranche G)(1)

LenderSumitomo Mitsui Banking Corporation
Shinsei Bank, Limited(2)

Loan Amount¥0.9 billion(3)

Interest Rate

(4)

Drawdown Date

Base interest rate (Japanese Bankers Association (JBA) onemonth Yen-TIBOR) (Note 3) + 0.2% (Floating rate) (Note 4)
September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreement concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 31, 2017(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on September 30, 2016 withfollowing interest payment dates on the last day of every month(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(8) Short-term borrowings (Tranche H)(1)

LenderSumitomo Mitsui Banking Corporation
Shinsei Bank, Limited(2)

Loan Amount¥3.0 billion(3)

Interest Rate

(4)

Drawdown Date

Base interest rate (Japanese Bankers Association (JBA) onemonth Japanese Yen-TIBOR) (Note 3) + 0.2% (Floating rate)(Note 4)September 9, 2016

(5)

Method of Borrowing

Borrowing based on individual term loan agreements concluded
with the above lenders, etc. on September 7, 2016

(6)

Principal Repayment Date

August 31, 2017(7)

Lump sum repayment on repayment date(8)

Principal
Repayment
MethodInterest Payment Date

(9)

Collateral

The first interest payment date on September 30, 2016 withfollowing interest payment dates on the last day of every month(Note 5) thereafter and the principal repayment date.
Unsecured / Non-guaranteed(Note 1) Short-term borrowings refer to borrowings with the period from the drawdown date to the maturity date being one year

Disclaimer: This press release is for public announcement in regards to debt financing of the Investment Corporation, and has not been prepared forthe purpose of solicitation of investment.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not been registeredunder the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offered in the UnitedStates, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such a case, investors
will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed information on theInvestment Corporation and its executive team as well as the financial statements will be provided in the English prospectus. The securities
referred to in this press release will not be publicly offered or sold in the United States.

4

(Note 2)(Note 3)(Note 4)(Note 5)or less, and long-term borrowings refer to borrowings with the period from the drawdown date to the maturity date
being more than one year. The same applies hereinafter.
Financing fees and other charges to be paid to the lenders are not included. The same applies hereinafter.
The base rate applicable to the calculation period for the interest payable on each interest payment date shall be theone-month Japanese Yen TIBOR (Tokyo Interbank Offered Rate) published by JBA TIBOR Administration two
business days prior to the interest payment date immediately preceding the respective interest payment date. Thebase rate can be confirmed at the website of JBA TIBOR Administration (http://www.jbatibor.or.jp/english/rate/).
However, when the calculation period is less than one month, the base rate corresponding to the period which is
calculated based on the method stated in the agreement will apply.
The first interest calculation period is from September 9, 2016, to September 30, 2016, and the base rate
corresponding to the period is 0.02383%.
However, if the concerned date is not a business day, then it shall be the next business day, and if that next business
day falls into the next calendar month, then it shall be the business day immediately preceding the concerned date.

2. Purpose of the Borrowing
The Investment Corporation intends to allocate the funds for part of the acquisition of the assets to beacquired as described in “Chapter 2. Fund Information, I. Overview of the Fund, 2. Investment Policy,(2) Investment Target, (3) Overview of Assets to be Acquired” of the Securities Registration Statement
submitted on August 5, 2016 (including amendment thereafter; the same applies hereinafter), andincidental expenses.
(Note)For the overview of assets to be acquired, please refer to “Notice of the completion of the acquisitionof real estate trust beneficiary rights” announced today.

3. Total Amount to be Borrowed, Use of Proceeds and Scheduled Expenditure Date
(1) Total Amount to be Borrowed¥30,900 million(2) Detailed Use of Proceeds
To be allocated for part of the fund for acquisition of the aforementioned assets to be acquired andthe incidental expenses.
(3) Expenditure Date
September 9, 2016
4. Status of Interest-bearing Debt after the Borrowing(millions of yen)
Before Drawdown

After Drawdown

Increase/Decrease

Short-term borrowings

0

8,900

8,900

Long-term borrowings

0

22,00022,000030,90030,900Investment Corporation Bonds

0

0

0

Sum of borrowings andinvestment corporation bonds
Other interest-bearing debt

030,90030,9000

00

Total interest-bearing debt

030,90030,900Total borrowings

5. Others
With respect to the risks of the Borrowing, there are no significant changes to “Chapter 2. Fund
Disclaimer: This press release is for public announcement in regards to debt financing of the Investment Corporation, and has not been prepared forthe purpose of solicitation of investment.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not been registeredunder the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offered in the UnitedStates, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such a case, investors
will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed information on theInvestment Corporation and its executive team as well as the financial statements will be provided in the English prospectus. The securities
referred to in this press release will not be publicly offered or sold in the United States.

5

Information, I. Overview of the Fund, 3. Investment Risks” stated in the Securities Registration
Statement submitted on August 5, 2016.
This material is to be distributed to the Kabuto Club, the Ministry of Land, Infrastructure, Transport
and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Press Clubfor Construction Purposes.
Sakura Sogo REIT website address: http://sakurasogoreit.com/en/

Disclaimer: This press release is for public announcement in regards to debt financing of the Investment Corporation, and has not been prepared forthe purpose of solicitation of investment.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not been registeredunder the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offered in the UnitedStates, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such a case, investors
will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed information on theInvestment Corporation and its executive team as well as the financial statements will be provided in the English prospectus. The securities
referred to in this press release will not be publicly offered or sold in the United States.

6