April 10, 2020

FOR IMMEDIATE RELEASE

Activia Properties Inc.
21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo
Kazushi Sato
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Hiroyuki Tohmata
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6455-3377)

Notice Concerning Borrowing of Funds
Activia Properties Inc. (“API”) announces today that it decided to borrow funds (the “Borrowing”).
Details are as follows:

1．Details of the borrowing< Short-term borrowing >LenderSumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Interestrate

Loan amount

1.998
billionyen

0.275 %
+Base rate
(Note 2)

Drawdown
date (plan)

April 17,2020

Due date(Note 1)

Borrowing andrepayment
methods,security, andguarantee

November 30,
2020

Borrowing basedon thecommitment line
agreement dated
September 26,
2019 with thelenders shown atleft as thecreditor, lumpsum repayment,
unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of May 2020 and the last day of each month thereafter as well ason the due date of the principal. (If an interest payment date is a non-business day, it shall be the following businessday. If such day falls in the following month, it shall be 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 theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediatelypreceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.

1After this, API will not announce the interest rate decisions for the borrowing. For changes in the JBA Japanese Yen
TIBOR, the base rate, please check the website of the JBA TIBOR Administration (http://www.jbatibor.or.jp/english).

2．Reasons for the borrowing
API will use the borrowing to redeem a part of the Investment Corporation 2nd unsecured
bonds of 2 billion yen which become mature on April 21, 2020 (the “Existing Investment
Corporation Bonds”). For the details of the Existing Investment Corporation Bonds, please refer
to “Notice Concerning Issuance of Investment Corporation Bonds” released on April 15, 2015.
3．Amount, use and schedule of disbursement of funds to be raised(1) Total amount
1.998 billion yen in total(2) Specific purpose of use
Funds will be used to redeem a part of the Existing Investment Corporation Bonds(3) Scheduled date of disbursement
April 21, 2020
4．Status of borrowings payable, etc. after the Borrowing(1) Interest-bearing debt balance after the Borrowing
Beforethe Borrowing(As of April 10,2020)
Short-term borrowings(In millions of yen)

Afterthe Borrowing(As of April 21,2020)

Change

9,000

10,998

1,998

12,50012,5000203,850

203,8500225,350

227,348

1,998

Investment corporation bonds
to be redeemed within one year

2,0000(2,000)

Investment corporation bonds

17,00017,0000244,350244,348(2)(Note)

Long-term borrowings
to be repaid within one year
Long-term borrowings(Note)

Total amount of borrowings

Total amount of borrowings andinvestment corporation bonds(Note) Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer
to borrowings with a maturity period of more than one year.

2(2) Basic financing information after the Borrowing

Beforethe Borrowing(As of April 10,2020)

After
the Borrowing(As of April 21,2020)

Change(point)

Long-term borrowing ratio

96.3%

95.5%(0.8)

Long-term borrowing ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin one year) (Note 2) (Note 4)

90.4%

90.4%

088.9%

88.1%

(0.8)

(Note 1) (Note 4)

Fixed interest ratio(Note 3) (Note 4)(Note 1) Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the long-termborrowings to be repaid within one year) and investment corporation bonds (including the investment corporation
bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.
(Note 2) Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds
to be redeemed within one year) is the ratio of the outstanding long-term borrowings (excluding the long-termborrowings to be repaid within one year) and investment corporation bonds (excluding the investment corporation
bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.
(Note 3) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the totalof outstanding interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates
includes debts whose interest rates were converted into fixed interest rates by interest rate swap agreements.
(Note 4) Figures are rounded to the first decimal place.

5．Other
Regarding the risks related to the repayment of the Borrowing, there are no significant changes in the“Investment Risk” section of the securities report submitted on February 27, 2020.

*Website of API: https://www.activia-reit.co.jp/en/

3