Disclaimers
This document has been prepared solely for the purpose of providing U.K. and Dutch investors withcertain information under Article 23 of the European Alternative Investment Fund Managers
Directive (European Directive 2011/61/EU) (the “AIFMD”) as implemented in their respective
jurisdictions. Accordingly, you should not use this document for any other purpose.

European Economic Area and United Kingdom Investors
The AIFMD was adopted on June 8, 2011 and was required to be implemented by each Member
State of the European Economic Area (the “EEA”) into its national legislation by July 22, 2013.
The units of SANKEI REAL ESTATE Inc. (“SRE” or the “AIF”) may not be marketed (within themeaning given to the term “marketing” under the AIFMD), and the Communication may not be
conducted, to prospective investors domiciled or with a registered office in any Member State of the
EEA or the United Kingdom unless: (i) the units of SRE may be marketed under any national
private placement regime (including under the AIFMD) or other exemption in that Member State or
the United Kingdom (as applicable); or (ii) the units of SRE can otherwise be lawfully marketed orsold in that Member State or the United Kingdom (as applicable) in circumstances in which the
AIFMD does not apply, provided that any such offer or sale is not made to a retail investor as
described above. We have made a notification to each of the Netherlands Authority for the
Financial Markets (Autoriteit Financiële Markten, the “AFM”) and the United Kingdom Financial
Conduct Authority pursuant to Article 42 of the AIFMD in order to market the units of SRE in the
Netherlands and the United Kingdom, respectively.

Netherlands
The units of SRE are being marketed in the Netherlands under Section 1:13b of the Dutch Financial
Supervision Act (Wet op het financieel toezicht, or the “Wft”). In accordance with this provision,
Sankei Building Asset Management Co., Ltd. (the “the AIFM”) notified with the AFM of its
intention to offer these units in the Netherlands. The units of SRE will not, directly or indirectly, beoffered, sold, transferred or delivered in the Netherlands, except to or by individuals or entities thatare qualified investors (gekwalificeerde beleggers) within the meaning of Article 1:1 of the Wft. As
a consequence neither the AIFM nor SRE is subject to the license requirement for investment
institutions (beleggingsinstellingen) or their managers pursuant to the Wft. Consequently, the AIFM
and SRE are only subject to the supervision of the Netherlands Central Bank (De NederlandscheBank) or the AFM for the compliance with the ongoing regulatory requirements as referred to in the
Dutch law implementation of Article 42 of the AIFMD. According to Article 23 of the AIFMD, theprospectus is not subject to approval by the AFM. No approved prospectus is required to be
published in the Netherlands pursuant to Article 3 of the Regulation (EU) 2017/1129 (the“Prospectus Regulation”) as amended and applicable in the Netherlands.

Prohibition of Sales to EEA Retail Investors
In addition to the restrictions under the AIFMD, the units of SRE are not intended to be offered,sold or otherwise made available to and should not be offered, sold or otherwise made available toany retail investor in the EEA. For these purposes, a “retail investor” means a person who is one (ormore) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU, as
amended (the “MiFID II”) including any client, beneficiary, principal, or similar of any person1acting as a trustee, agent, nominee, or similar; or (ii) a customer within the meaning of Directive(EU) 2016/97, where that customer would not qualify as a professional client as defined in point(10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in the Prospectus
Regulation, as amended. Consequently, no key information document has been prepared required
by Regulation (EU) No 1286/2014 (the “PRIIPs Regulation”) for offering or selling the units of
SRE or otherwise making them available to retail investors in the EEA. Therefore, offering or
selling the units of SRE, or otherwise making them available, to any retail investor in the EEA may
be unlawful under the PRIIPs Regulation.

United Kingdom
The units of SRE are being marketed in the United Kingdom pursuant to Article 59 of the United
Kingdom Alternative Investment Fund Managers Regulations 2013. In accordance with thisprovision, AIFM has notified the Financial Conduct Authority (the “FCA”) of its intention to offer
these units in the United Kingdom. For the purposes of the United Kingdom Financial Services andMarkets Act 2000 (“FSMA”) SRE is an unregulated collective investment scheme which has notbeen authorized by the FCA. Accordingly, any communication of an invitation or inducement toinvest in SRE may be made only to: (i) investment professionals falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), as
amended; or (ii) high net worth companies, unincorporated associations or other entities fallingwithin Articles 49(2)(a) to (d) of the Order; or (iii) other persons to whom it may lawfully be
communicated (all such persons, together being referred to as “Relevant Persons”). In the United
Kingdom, this document and its contents are directed only at Relevant Persons and must not be
acted on or relied on by persons who are not Relevant Persons. The transmission of this document
and its contents in the United Kingdom to any person other than a Relevant Person is unauthorized
and may contravene the FSMA and other United Kingdom securities laws and regulations.

Prohibition of Sales to UK Retail Investors
In addition to the restrictions under the AIFMD, as retained by the United Kingdom in its domestic
laws, the Units of SRE are not intended to be offered, sold or otherwise made available to andshould not be offered, sold or otherwise made available to any retail investor in the United
Kingdom. For these purposes of this provision, a “retail investor” means a person who is one (ormore) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it
forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”);or (ii) a customer within the meaning of the provisions of the FSMA and any rules or regulations
made under the FSMA to implement Directive (EU) 2016/97, where that customer would not
qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No
600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as
defined in Article 2 of Regulation (EU) 2017/1129, as it forms part of domestic law by virtue of the
EUWA; and the expression “offer” includes the communication in any form and by any means ofsufficient information on the terms of the offer and the units to be offered so as to enable an
investor to decide to purchase or subscribe the units.
Consequently no key information document required by Regulation (EU) No 1286/2014, as it forms
part of domestic law by virtue of the EUWA (the “UK PRIIPs Regulation”), for offering or sellingthe units or otherwise making them available to retail investors in the United Kingdom has been
prepared and therefore offering or selling the units or otherwise making them available to any retailinvestor in the United Kingdom may be unlawful under the UK PRIIPs Regulation.
2

Article 23 (1)(a)Objectives of the AIF

SANKEI REAL ESTATE Inc. (“SRE” or the “AIF”) is a REIT that works on building
a diversified portfolio while investing primarily on office buildings and aims tosecure stable earnings over the medium to long term.

Investment strategy

SRE’s basic strategy is to expand the scale of its portfolio while maintaining
and improving earnings of assets under management over the medium to longterm. We aim to execute this strategy by implementing an “asset recycling
business model” with the Sankei Building Group, which has significant
expertise in real estate development, operation and management as well as
by leveraging the unique content and media development capabilities of the
Fuji Media Holdings Group’s developers and the Sankei Building Group’s
platform.
SRE’s portfolio strategies are as follows:

Asset Types
In October 2023, SRE changed its investment policy to convert to adiversified REIT. SRE’s primary investment target remains office buildings;
the ratio of investment in office buildings is now 50-70%. Certain fixedproportion of SRE’s portfolio is generally allocated to other asset types
with characteristics different from those of office buildings to attain
growth and stability in portfolio revenue, with the goal of building a strong
portfolio by stabilizing revenue and achieving growth capable ofwithstanding the cyclical real estate market. The ratio of investment in ourcore investment targets other than office buildings which include hotels,
logistics facilities and residential facilities (including residences, student
residences, and healthcare facilities) (collectively, the “Core Asset Group”)
is 30-50%, with our investment in each of the asset types other than officebuildings and the Core Asset Group representing 0-10%.

Geographic Areas

In general, SRE’s primary investment areas are the Greater Tokyo area, theGreater Osaka area and the Greater Nagoya area, considering the investment
policy regarding asset types, their population and economic and commercial
concentration. A certain percentage of SRE’s portfolio is also invested inJapanese government ordinance-designated cities, core cities and other major
regional cities across Japan, in order to diversify the portfolio risks and identify
the ideal locations in light of the characteristics of each asset type. The ratio ofinvestment in the Greater Tokyo area, the Greater Osaka area and the Greater
Nagoya area is collectively 70% or more, with Japanese government
ordinance-designated cities, core cities and other major regional cities acrossJapan collectively representing 30% or less.

Types of assets the AIF
may invest in

Real estate, real estate leasehold rights and surface rights and trust
beneficiary rights in any of the foregoing assets.

Techniques it may employ
and all associated risks

The principal risks with respect to investment in SRE are as follows:3

any adverse conditions in the Japanese economy could adversely affectSRE;The majority of the properties in the portfolio is concentrated in officebuildings;

SRE’s plan to diversify its portfolio and the expected increase ininvestment in properties other than office buildings, including hotels,
logistics properties, residential properties and other types of properties;

most of the properties in the portfolio are concentrated in the Greater
Tokyo area, the Greater Osaka area and the Greater Nagoya area;

SRE may not be able to acquire properties to execute the growth andinvestment strategy in a manner that is accretive to earnings;

illiquidity in the real estate market may limit the ability to grow or adjust
the portfolio;

SRE’s reliance on the AIFM and other third service providers could have amaterial adverse effect on business;

SRE’s revenues largely comprise leasing revenues from the portfolio
properties, which may be negatively affected by vacancies, decreases inrent, and late or missed payments by tenants;



SRE faces significant competition in seeking tenants and it may be difficult
to find replacement tenants;



SRE may suffer large losses if any of the properties incurs damage from anatural or man-made disaster;

any inability to obtain financing for future acquisitions could adversely
affect the growth of the portfolio; and

SRE’s failure to satisfy a complex series of requirements pursuant toJapanese tax regulations would disqualify SRE from certain taxation
benefits and significantly reduce the cash distributions to the unitholders.
In addition, SRE is subject to the following risks:risks related to liquidity of units;risks related to market price fluctuations of units;risks that distributions to unitholders may be lower than expected;

risks that unitholders’ rights do not match shareholders’ rights;risks related to the organization management of SRE;risks related to outsourcing: disrupting SRE's operations in the event thattrustees cannot properly perform necessary operations;risks related to insider trading regulations at asset managers;risks due to the inclusion of hotels, retail properties, healthcare facilities,
logistics facilities and residential facilities in the portfolio;risks related to high dependence on specific properties;risks related to entering into forward commitment contracts;risks related to holding the property in the form of co-ownership interests4

(kyōyū-mochibun);

Any applicable
investment restrictions



risks related to holding the property in the form of compartmentalizedinterests (kubun-shoyū);risks of investing in leasehold rights and buildings on land leased land;

risks of acquiring land that a third party rents and owns a building on it;risks related to holding the property through trust beneficiary interests;risks related to properties not in operation (including properties underdevelopment);risks related to the defective title, design, construction or other defects or
problems in the properties;risks related to possibility of unclear land boundaries;

risks related to regulations concerning building standards, etc.;risks related to impairment losses relating to the properties;risks related to tenant leasehold deposits and/or security deposits;risks related to a small number of tenants or single tenant;risks related to sellers’ default as a result of financial difficulty or
insolvency;risks arising from leased properties being subleased, such as the inability
to select sublessees and rental revenue being adversely affected by thesublessee's economic situation;

risks related to relying on expert reports, including but not limited tomarket reports;risks related to the presence of hazardous or toxic substances in theproperties, or the failure to properly remediate such substances;

risks of damage from hazardous materials and disasters in landfills;

risks related to global warming countermeasures for the properties;risks related to investment Japanese anonymous association (tokumei
kumiai) interests;risks related to investment in trust beneficiary interests;risks related to investment in real estate-based securities;risks related to being unable to benefit from reductions in certain realestate taxes enjoyed by qualified J-REITs;



risks related to changes in Japanese tax laws; andrisks that the asset cannot be purchased or sold if economic environmentchanges significantly.

SRE is subject to investment restrictions under Japanese laws and regulations(e.g., the Act on Investment Trusts and Investment Corporations (the “ITA”),
the Financial Instruments and Exchange Act (the “FIEA”)) as well as its articles
of incorporation.

5

SRE must invest primarily in specified assets as defined in the ITA. Specified
assets include, but are not limited to, securities, real estate, leaseholds of realestate, surface rights (chijō-ken) (i.e., right to use land for the purpose of
having a structure on it) or trust beneficiary interests for securities or realestate, leaseholds of real estate or surface rights. A listed J-REIT must invest
substantially all of its assets in real estate, real estate-related assets and liquid
assets as provided by the listing requirements. Real estate in this context
includes, but is not limited to, real estate, leaseholds of real estate, surface
rights, and trust beneficiary interests for these assets, and real estate-related
assets in this context include, but are not limited to, anonymous association(tokumei kumiai) interests for investment in real estate. Pursuant to the ITA,
investment corporations may not independently develop land for housing or
to construct buildings, but may outsource such activities in certain
circumstances.
Circumstances in which
the AIF may use leverage

SRE may take out issue long- or short-term loans or corporate bonds for the
purpose of asset acquisition, payment of repair expenses, payment of
distributions, attaining funds required for the operation of SRE and repaymentof obligations.

The types and sources ofleverage permitted andassociated risks

Loans or investment corporation bonds.
Loans or investment corporation bonds in which SRE enters or SRE issues may
be subject to restrictive covenants in connection with any future indebtedness
that may restrict operations and limit its ability to make cash distributions tounitholders, to dispose of properties or to acquire additional properties.
Furthermore, if SRE were to violate such restrictive covenants, such as withregard to loan-to-value ratios, lenders may be entitled to require SRE tocollateralize portfolio properties or demand that the entire outstandingbalance be paid.
In the event of an increase in interest rates, to the extent that SRE has any
debt with unhedged floating rates of interest or SRE incurs new debt, interest
payments may increase, which in turn could reduce the amount of cash
available for distributions to unitholders.
Higher interest rates may also limit the capacity for short- and long-termborrowings, which would in turn limit SRE’s ability to acquire properties, andcould cause the market price of the units to decline.

Any restrictions onleverage

The maximum amount of each loan and corporate bond issuance will be ¥1trillion, and the aggregate amount of all such debt will not exceed ¥1 trillion.

Any restrictions on
collateral and asset reusearrangements

No applicable arrangements.

Maximum level ofleverage which the AIFM
is entitled to employ onbehalf of the AIF

As a general rule, SRE will maintain a conservative loan-to-value, or LTV, ratio,
which is the ratio of (x) the aggregate principal amount of borrowings andinvestment corporation bonds to (y) the total assets of SRE’s portfolio. SRE has
set in principle 60% as its maximum LTV ratio; however, SRE’s LTV ratio may
fluctuate as a result of property acquisitions or other events.

6Article 23(1) (b)Procedure by which the
AIF may change its
investment strategy /investment policy

Amendment of the articles of incorporation. Amendment requires a quorumof a majority of the total issued units and at least a two-thirds vote of thevoting rights represented at the meeting. Unitholders should note, howeverthat under the ITA and SRE’s articles of incorporation, unitholders who do notattend and exercise their voting rights at a general meeting of unitholders are
deemed to be in agreement with proposals submitted at the meeting, except
in cases where contrary proposals are also being submitted. This deemedaffirmative vote shall also not be applied to matters regarding (i) election or
dismissal of an executive officer or an supervisory officer, (ii) consent toexecution or cancellation of the asset management agreement with the AIFM,(iii) dissolution of SRE, (iv) combination of investment units or (v) exemption
from liability of an executive officer, an supervisory officer or an auditor when(i) within two weeks from the date on which SRE announced submission of the
proposals regarding the matters above to a general meeting of unitholders on
its website or the date on which a convenor announced the submission
through a method equivalent to such, whichever date is earlier, a unitholder
who owns 1% or more of the total investment units issued for a continuous
period of six months or longer has notified SRE (as well as the convenor if
applicable) of their disapproval of the said proposals, or (ii) SRE has stated its
disapproval of the proposals regarding the matters above in the convocation
notice or announced such on its website.
Additionally, the guidelines of the AIFM, which provide more detailed policies
within SRE’s overall investment strategy and policy, can be modified without
such formal amendment of the articles of incorporation.

Article 23(1) (c)Description of the main
legal implications of thecontractual relationshipentered into for the
purpose of investment,
including jurisdiction,
applicable law, and theexistence or not of any
legal instruments
providing for therecognition andenforcement of
judgments in the territory
where the AIF isestablishedSRE has entered into the following agreements with third service providers: Trademark license agreement with The Sankei Building Co., Ltd.
 Trademark license agreement with Fuji Media Holdings, Inc.
 Trademark license agreement with GRANVISTA Hotels & Resorts Co.,Ltd.
 Trademark license agreement with Sankei Building Well Care Co., Ltd.
All of the above agreements are governed by Japanese law.
SRE is not involved in or threatened by any legal arbitration, administrative orother proceedings, the results of which might, individually or in the aggregate,
be material.
SRE is a corporate-type investment trust in the form of investment
corporation (tōshi hojin) provided for under the ITA. Therefore, therelationship between SRE and its unitholders is governed by SRE’s articles ofincorporation (as opposed to individual agreements), which can be amended
from time to time upon resolution of a general unitholders’ meeting. SRE’s
articles of incorporation stipulate rules relating to general unitholders
meetings, including the convocation, setting of record date, exercise of voting
rights, resolutions and election of SRE’s directors. The relationship between
SRE and its unitholders is also governed by, and is subject to the provisions of,7

Japanese law, including the ITA.
The courts in Japan would recognize as a valid and final judgment any final
and conclusive civil judgment for monetary claims (which, for this purpose,are limited to those of a purely civil nature and do not include monetaryclaims of the nature of criminal or administrative sanction, such as punitive
damages, even though they take the form of civil claims) against SRE obtainedin a foreign court provided that (i) the jurisdiction of such foreign court isadmitted under the laws of Japan, (ii) SRE has received service of process forthe commencement of the relevant proceedings, otherwise than by a public
notice or any method comparable thereto, or has appeared without any
reservation before such foreign court, (iii) neither such judgment nor the
relevant proceeding is repugnant to public policy as applied in Japan, and (iv)there exists reciprocity as to the recognition by such foreign court of a final
judgment obtained in a Japanese court and (v) there is no conflicting
judgement on the subject matter by any Japanese court.
Article 23(1) (d)The identity of the AIFM,
AIF's depositary, auditor
and any other service
providers and a
description of their duties
and the investors' rights
thereto

AIFM (Asset Manager Company): Sankei Building Asset Management Co.,Ltd.
The AIFM provides services related to asset management, financing of theAIF, reporting to the AIF and other related matters.

Custodian: Sumitomo Mitsui Trust Bank, Limited
The Custodian provides administrative services related to custody ofassets.



General Administrator (Institution Management): Mizuho Trust & Banking
Co., Ltd.
The general administrator carries out administrative operations related tothe institutional management (Board of Directors’ Meeting, Unitholders’Meeting) of SRE.



General Administrator (Calculation and Accounting): Reiwa Accounting
Holdings Co., Ltd.
The General Administrator (Calculation and Accounting) carries out
calculation and preparation of accounting records for SRE.



General Administrator (Tax): Reiwakaikeisha Tax Corporation
The General Administrator (Tax) carries out tax-related administrative
operations for SRE.



Transfer Agent: Mizuho Trust & Banking Co., Ltd.
The transfer agent provides administrative services related to unitholders’roster, addressing unitholders’ claims, offers and notices andmanagement of institutions.



Accounting Auditor: Ernst & Young ShinNihon LLC
The auditor audits financial statements and prepare audit reports.

Service providers owe contractual obligations under their respective
agreements with the AIF or AIFM, as the case may be. In addition, the FIEA

8

provides that an asset manager owes a J- REIT a fiduciary duty and must
conduct its activities as the asset manager in good faith.
The FIEA also prohibits an asset manager from engaging in certain specified
conduct, including entering into transactions outside the ordinary course ofbusiness or with related parties of the asset manager that are contrary to or
violate the J-REIT’s interests.
Pursuant to the ITA, the unitholders have the right to approve the execution
or termination of the asset management agreement at a general meeting ofunitholders.
Article 23(1) (e)Description of how the
AIFM complies with therequirements to coverprofessional liability risks(own funds / professional
indemnity insurance)

Not applicable.

Article 23(1) (f)Description of any
delegated management
function such as portfolio
management or risk
management and of any
safekeeping functiondelegated by thedepositary, theidentification of thedelegate and any conflictsof interest that may arise
from such delegations

Not applicable.
There is no delegation of such functions beyond the AIFM, which is
responsible for portfolio and risk management, and the Custodian, which is
responsible for safekeeping activities.

Article 23(1) (g)Description of the AIF’s
valuation procedure andpricing methodology,
including the methods
used in valuing hard-tovalue assets

SRE shall evaluate assets in accordance with its article of incorporation. The
methods and standards that SRE uses for the evaluation of assets shall bebased on the Regulations Concerning the Calculations of Investment
Corporations, as well as the Regulations Concerning Real Estate Investment
Trusts and Real Estate Investment Corporations and other regulations
stipulated by ITA, in addition to Japanese GAAP. J-REITs may only use thevaluation methods prescribed in the rules of the Investment Trusts
Association, Japan, which emphasize market price valuation.

Article 23(1) (h)Description of the AIF’s
liquidity risk
management, including
redemption rights innormal and exceptional

SRE seeks to manage the capital resources and liquidity sources to provide
adequate funds for current and future financial obligations and other cashneeds and acquisitions.
SRE manages liquidity risk by diversifying funding methods, diversifying

9

circumstances andexisting redemption
arrangements withinvestors

repayment dates and considering balanced funding.
SRE manages liquidity risk by interest rate risk by controlling LTV
appropriately.
As is a closed-end investment corporation, unitholders are not entitled torequest the redemption of their investment.

Article 23(1) (i)Description of all fees,
charges and expenses anda maximum amountwhich is directly /indirectly borne by theinvestors

Remuneration:
The articles of incorporation provide that the AIF may pay each of its
executive director up to ¥800,000 per month and each of its supervisory
directors up to ¥600,000 per month.
Asset Management Fees:
The AIF pays the AIFM the following asset management fees (amounts arerounded down to the nearest whole number):










Asset Management Fee #1
Formula (for each business period): (a) x (b)(a): Total assets of a balance sheet at the end of the previous fiscal
year(b): A rate (up to 0.5%) to be agreed to between the AIF and the
AIFM separately
Asset Management Fee #2
Formula (for each business period): (a) x (b)(a): Real estate rental business NOI(b): A rate (up to 5.0%) to be agreed to between the AIF and the
AIFM separately
Acquisition fee
Formula: (a) x (b)(a): Acquisition price(b): A rate (up to 1.0%) to be agreed to between the AIF and the
AIFM separately
Disposition fee
Formula: (a) x (b)(a): Disposition price(b): A rate (up to 1.0%) to be agreed to between the AIF and the
AIFM separately
Merger fee (payable in case the AIFM conducts investigation andevaluation of assets held by the entity to be merged with the AIF as
well as operations related to the merger the merger takes effect)
Formula: (a) x (b)(a): Valuation of assets held by the other party on the effective
date of the merger(b): A rate (up to 1.0%) to be agreed to between the AIF and the
AIFM separately

Custodian Fee:
Formula (for each month): The amount of assets of the AIF as of the end of10

the preceding month x 0.03% / 12
General Administrator Fee (Institution Management):
The AIF pays to the General Administrator a general administrator fee (for six
months) to be agreed to between the AIF and the General Administrator
separately up to a maximum amount calculated according to the following
table (not to exceed ¥8,000,000 per year).
Maximum amount
Total assets at the end of
the previous fiscal period
were ¥75 billion or lessTotal assets at the end of
the previous fiscal period
were over ¥75 billion¥3,000,000¥4,000,000

General Administrator Fees (Calculation and Accounting):General Administrator Fee
Formula (for each month): (a) x 1 / 12 + (b) x (c)(a): Annual fixed remuneration amount (up to ¥20,000,000) to beagreed to between the AIF and the General Administrator inwriting(b): Variable remuneration monthly unit price (up to ¥500,000) tobe agreed to between the AIF and the General Administrator inwriting(c): Number of properties owned by the AIF on the last day of the
fiscal period immediately before each fiscal period - the number ofproperties to be agreed to between the AIF and the General
Administrator in writing
Fee for creating fixed asset ledger for newly acquired property
The AIF pays to the General Administrator a fee to be agreed to
between the AIF and the General Administrator separately in
writing (not to exceed ¥1,000,000 per year).

General Administrator Fees (Tax):Fee for assistance in preparing and filing corporation tax returns, local
tax returns and consumption tax returns and preparing depreciable
asset returns
The AIF pays to the General Administrator a fee to be agreed to
between the AIF and the General Administrator separately in
writing (not to exceed ¥20,000,000 per year).

Fee for assistance in preparing legal and payment records
The AIF pays to the General Administrator a fee to be agreed to
between the AIF and the General Administrator separately in
writing (not to exceed ¥500,000 per year).

Transfer Agent Fee:
The AIF pays to the Transfer Agent a transfer agent fee to be agreed to11between the AIF and the Transfer Agent separately up to an amountcalculated according to the following table.
Monthly standard fee – Monthly standard fee shall be the amountcalculated according to the following table and divided by 6 (subject
to a minimum of ¥200,000).
Number of Unitholders
first 5,000 unitholders
over 5,000 to 10,000
over 10,000 to 30,000
over 30,000 to 50,000
over 50,000 to 100,000
over 100,000

Fees per Unitholder
¥480
¥420
¥360
¥300
¥260
¥225

 Otherfees –The AIFpays thetransfer agent fees for various other services, including fees forservices in connection with the payment of dividends, thepreparation, maintenance and storage of the AIF’s unitholder register,
preparation and reporting of the end-of-period unitholders registerand unitholder statistical data.

Auditor Fee:
The AIF pays the accounting auditor up to ¥20 million per fiscal period. The
board of directors is responsible for determining the compensation amountfor the accounting auditor.

Article 23(1) (j)Description of the AIFM's
procedure to ensure fairtreatment of investors
and details of any
preferential treatment
received by investors,
including detailing thetype of investors andtheir legal or economic
links with the AIF or AIFM

Under Article 77 paragraph 4 of the ITA, which applies the requirements ofArticle 109 paragraph 1 of the Companies Act to investment corporations,investment corporations are required to treat unitholders equally dependingon the number and content of units held. In addition, upon liquidation, theallotment of residual assets to unitholders is required to be made equallydepending on the number units held under Article 77 paragraph 2 item 2 andArticle 158 of the ITA.

Article 23(1) (k)The latest annual reportreferred to in Article 22(1)Additional information may be found in our most recent semi-annual report
prepared in accordance with Article 22 of the AIFMD, which is available at theAsset Manager’s office located at 2-3-4 Uchikanda, Chiyoda-ku, Tokyo.

Article 23(1) (l)The procedure andconditions for the issue

SRE is authorized under its articles of incorporation to issue up to 10 million
units. Its units have been listed on the Tokyo Stock Exchange since March 12,12and sale of the units

2019.
Secondary market sales and transfers of units will be conducted in accordancewith the rules of the Tokyo Stock Exchange. Unit prices on the Tokyo Stock
Exchange are determined on a real-time basis by the equilibrium between
bids and offers. The Tokyo Stock Exchange sets daily price limits, which limit
the maximum range of fluctuation within a single trading day. Daily pricelimits are set according to the previous day’s closing price or special quote.

Article 23(1) (m)Latest net asset value ofthe AIF or latest market
price of the unit or shareof the AIF

SRE’s unit’s latest market price is publicly available at the Tokyo Stock
Exchange or from financial information vendors at https://en.japanreit.com/meigara/2972/.

Article 23(1) (n)Details of the historicalperformance of the AIF,
where available

The units of SRE were listed on the Tokyo Stock Exchange on March 12, 2019.
The most recent five fiscal periods performance of the units is as follows.
Fiscal period (sixmonths ended)

Total Assets(JPY millions)

Total Net Assets(JPY millions)February 29, 2024
August 31, 2023
February 28, 2023
August 31, 2022
February 28, 2022

104,802112,235
105,828
106,553
106,523

50,47350,56550,51250,91050,827

Net Assets
per unit(JPY)
108,056
108,253
108,140
108,993
108,814

Article 23(1) (o)Identity of the prime
broker, any material
arrangements of the AIF
with its prime brokers,
how conflicts of interest
are managed with theprime broker and theprovision in the contract
with the depositary on
the possibility of transfer
and reuse of AIF assets,
and information about
any transfer of liability tothe prime broker that
may exist

Not applicable.

Article 23(1) (p)Description of how and

The AIFM will disclose the matters described in Articles 23(4) and 23(5)13when periodic disclosures
will be made in relation toleverage, liquidity and risk
profile of the assets,pursuant to Articles 23(4)and 23(5)periodically through the AIF Internet website and semi-annual report.

Article 23(2)The AIFM shall inform theinvestors before they
invest in the AIF of any
arrangement made by thedepositary tocontractually discharge
itself of liability inaccordance with Article
21(13)

Not applicable.

The AIFM shall also
inform investors of any
changes with respect todepositary liability
without delay

Not applicable.

Article 23(4)(a)Percentage of the AIF's
assets which are subject
to special arrangements
arising from their illiquid
nature. The percentage
shall be calculated as the
net value of those assets
subject to special
arrangements divided by
the net asset value of the
AIF concerned

There are no assets that are subject to special arrangements arising from their
illiquid nature.

Overview of any special
arrangements, including
whether they relate toside pockets, gates orother arrangements

There are no such special arrangements.

Valuation methodology
applied to assets which
are subject to sucharrangements

There are no such special arrangements.

How management andperformance fees apply
to such assets

There are no such special arrangements.

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Article 23(4)(b)Any new arrangements
for managing the liquidityof the AIF

Any new arrangements or change in applicable arrangements will be disclosed
at an appropriate time.

For each AIF that the
AIFM manages that is not
an unleveraged closedend AIF, notify toinvestors whenever they
make changes to its
liquidity management
systems (which enable an
AIFM to monitor theliquidity risk of the AIF
and to ensure theliquidity profile of theinvestments of the AIF
complies with its
underlying obligations)that are material inaccordance with Article
106(1) of Regulation (EU)No 231/2013 (ie. there isa substantial likelihoodthat a reasonable
investor, becoming awareof such information,
would reconsider its
investment in the AIF,
including because suchinformation could impact
an investor’s ability to
exercise its rights inrelation to its investment,or otherwise prejudice
the interests of one ormore investors in the
AIF).

Any new arrangements or change in applicable arrangements will be disclosed
at an appropriate time.

Immediately notify
investors where they
activate gates, side
pockets or similar special
arrangements or where
they decide to suspend
redemptions

Any new arrangements or change in applicable arrangements will be disclosed
at an appropriate time.

Overview of changes toliquidity arrangements,
even if not special

Any new arrangements or change in applicable arrangements will be disclosed
at an appropriate time.

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arrangements
Terms of redemption andcircumstances wheremanagement discretion
applies, where relevant

SRE is a closed-end investment corporation, and unitholders are not entitled
to request the redemption of their investment.

Also any voting or otherrestrictions exercisable,
the length of any lock-up
or any provision
concerning ‘first in line’ or‘pro-rating’ on gates andsuspensions shall be
included

There are no voting or other restrictions on the rights attaching to units.

Article 23(4)(c)
The current risk profile of
the AIF and the risk
management systems
employed by the AIFM to
manage those risks

Deposits are exposed to risks of failure of the financial institution holding thedeposit and other credit risks, but such risks are controlled throughdiversification of financial institutions holding the deposits.
The fund proceeds from borrowings and issuance of investment corporation
bonds are used for the purpose of investing in properties, conducting repairs,
paying cash distributions, operating the AIF, repaying obligations and otheractivities. These borrowings and investment corporation bonds are exposed toliquidity risks. SRE strives to reduce the liquidity risks and a risk of risinginterest rates by diversifying repayment dates, fee, and so forth.
Derivative transactions are also utilized to hedge the interest rate risks arisingfrom any borrowing or other debts.
SRE retains cash and deposits sufficient to response any potential financeneeds, including funds for acquiring asset, paying cash distributions, and soforth.

Measures to assess thesensitivity of the AIF’s
portfolio to the most
relevant risks to which
the AIF is or could be
exposedNo such measures have been implemented.

If risk limits set by the
AIFM have been or are
likely to be exceeded andwhere these risk limits
have been exceeded a
description of thecircumstances and theremedial measures taken

No such situation has occurred.

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Article 23(5)(a)Any changes to the
maximum amount ofleverage which the AIFM
may employ on behalf of
the AIF, calculated inaccordance with the grossand commitment
methods. This shall
include the original andrevised maximum level ofleverage calculated inaccordance with Articles 7
and 8 of Regulation (EU)No 231/2013, whereby
the level of leverage shallbe calculated as therelevant exposure divided
by the net asset value ofthe AIF.

Any new arrangements or change in applicable arrangements will be disclosed
at an appropriate time.

Any right of the reuse ofcollateral or any
guarantee granted under
the leveraging
agreement, including thenature of the rights
granted for the reuse ofcollateral and the natureof the guarantees granted

No such right or guarantee exists.

Details of any change inservice providers relating
to the above.

Any new arrangements or change in applicable arrangements will be disclosed
at an appropriate time.

Article 23(5)(b)Information on the total
amount of leverage
employed by the AIF
calculated in accordancewith the gross andcommitment methods

The aggregate amount of debt with interest is JPY 50,200 million as ofFebruary 29, 2024.



17