English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

December 23, 2020
To All Concerned Parties
REIT Issuer: Daiwa Securities Living Investment Corporation
6-2-1 Ginza, Chuo-ku, Tokyo 104-0061
Ikuo Shoda, Executive Director(Securities Code: 8986)
Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.
Toshio Fukushima, President and Chief Executive Officer
Inquiries: Takashi Chiba, General Manager, Corporate Division
Tel: +81-3-6757-9680

Notice Concerning Acquisition of Asset (Hulic Residence Senriyama)
Daiwa Securities Living Investment Corporation (hereinafter referred to as the “Investment Corporation”) hereby announcesthat Daiwa Real Estate Asset Management Co. Ltd. (hereinafter referred to as the “Asset Manager”), the asset manager of theInvestment Corporation, has resolved to acquire the asset (hereafter the “Asset to Be Acquired”) described below.

I. General Outline of the Acquisition

Name of property

Location

Property
type(Note 1)

Hulic Residence
Senriyama (Note 4)

Toyonaka city,
Osaka

Residence(Studio)

Anticipatedacquisition price(A)(JPY thousand)(Note2) (Note 3)

Appraisal value(as of November 2021)(B)(JPY thousand)(Note 3)2,600,000

2,710,000

Difference between
anticipated acquisition
price and appraisalvalue(B)-(A)(JPY thousand)((A)/(B))(Note 3)110,000(95.9%)(Note 1) Studio means residences with 1R, 1K, 1DK, or 1LDK.
(Note 2) Anticipated Acquisition Price does not include acquisition expenses, adjustments to property tax and city planning tax, and consumption tax and local
consumption tax. The same applies hereinafter.
(Note 3) Amounts are rounded to the nearest unit and percentages are rounded to the first decimal place. Unless stated otherwise, the same applies hereinafter.
(Note 4) The name of the property will be changed to “Gran Casa Ryokuchikoen” in April 2021.
(Note 5) The intermediary of the Acquisition does not correspond to the interested party.

Ⅱ. Reason for the Acquisition and Leasing
Based on the asset management objectives and policies set forth in the Investment Corporations Agreement, we have decided
to acquire the Asset to Be Acquired in order to diversify and enhance the portfolio to achieve asset size growth and secure stableearnings.
Ⅲ. Details of Asset to Be Acquired and Leasing
The details of the Asset to Be Acquired and leasing are summarized in the following individual property tables. The following
is a description of the items mentioned in the individual property tables.

<Description of Items>
a. Explanation of Overview of Properties
1. Where residential indication is not shown under “Residential indication” for Location, the building location is shownin accordance with either the housing number indication or the registry (including the Registration Record. The same
applies hereinafter). The “Lot number” for Location shows the parcel number assigned to each parcel of land as
stipulated in Paragraph 17, Article 2 of the Real Property Registration Act (Law No. 123 of 2004, including later
amendments).
2. “Form of ownership” for both Land and Building refers the type of rights held by the Investment Corporation for realestate and by the Trustee for real estate trust beneficiary interests.
3. “Area” for Land is shown in accordance with the registry and may not correspond to the current reality.
4. “Zoning” for Land refers to the types of use districts stipulated by Item 1, Paragraph 1, Article 8 of the City Planning
Act (Law No. 100 of 1968, including later amendments) (hereinafter referred to as the “City Planning Act”).

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
5.

“FAR” for Land refers to the ratio of the sum of the floor space of the building to the land area as stipulated in Article
52 of the Building Standards Act (Law No. 201 of 1950, including later amendments) (hereinafter referred to as the“Building Standards Act”), and the upper limit of floor-to-area ratio (designated floor-to-area ratio) as determined bycity planning according to the use area. The designated floor-to-area ratio can be mitigated, increased, or reduced dueto the width of roads connected to the site and other reasons, and may differ from the floor-to-area ratio that is actuallyin use.
6. “Building-to-land ratio” for Land shows the ratio of the building area to the land area as stipulated in Article 53 of the
Building Standards Act, and the upper limit of building-to-land ratio (designated building-to-land ratio) as determinedby city planning according to the use area. The designated building-to-land ratio can be mitigated, increased, or
reduced due to fireproofed structures in a fire prevention districts and other factors, and may differ from the buildingto-land ratio that is actually in use.
7. “Total floor area” for Building is based on records in the registry and does not include the floor area of annexedbuildings.
8. “Structure/Floors” for Building is based on records in the registry.
9. “Use” for Building refers to the building type recorded in the registry.
10. “Construction completion” for Building refers to the date of completion recorded in the registry.
11. “Number of leasable units” indicates the number of units that can be leased as of November 30, 2020, for the Asset
to Be Acquired (only recorded for residences).
12. “Number of leasable compartments” indicates the number of compartments of a building where a lease contract has
been concluded as of November 30, 2020, for the Asset to Be Acquired, and includes retail stores, offices, etc., if any(only recorded for healthcare facilities).
13. “Property manager” is the property management company entrusted with, or scheduled to be entrusted with theproperty management operations.
14. “Master lessee” is the party that has, or is scheduled to enter into a master lease agreement concerning the asset inquestion.
15. “Type of master lease” is either “Pass through” or “Guaranteed rent.” “Pass through” is a master lease agreement
where the master lessee passes on the rent equivalent to rent paid by the end tenant, and “Guaranteed rent” is a master
lease agreement in which the master lessee pays a fixed rent.
16. “Number of tenants” shall be 1 if a master lease agreement has been concluded with a master lessee.
17. “Leasable area” shows the leasable area of each of the Asset to Be Acquired as of November 30, 2020, excluding areaused by storage spaces, parking spaces, custodian areas, signboards, vending machines, antennas and other spaces
leased to the lessee in addition to their main use, or other areas leased for the maintenance and supervision of therelevant property (including loan for use). Furthermore, leasable area is calculated using the center line of the wall,and includes the meter boxes and pipe spaces allotted to each unit.
18. “Total leased area” is the sum of the area leased through lease agreements with end tenants (however, in cases whereproperties are wholly leased to realtors through guaranteed rent agreements or where a master lessee wholly leases it
to another company, lease agreements where properties are wholly leased to a lessee) at the Asset to Be Acquired thatare in effect as of November 30, 2020.
19. “Real estate rent revenue” is the monthly rental income (rent, common service fee, parking lot income, etc.) rounded
down to less than 1,000 yen based on the figures and information available as of November 30, 2020, of the Asset to
Be Acquired.
20. “Lease and guarantee deposits, etc.” are the lease or guarantee deposits (residences, retail stores, offices, parking lots,etc.) rounded down to less than 1,000 yen based on the figures and information available as of November 30, 2020,of the Asset to Be Acquired.
21. “Occupancy rate” is the figure obtained by dividing the total leased area by the leasable area for the Asset to Be
Acquired as of November 30, 2020.
22. “Estimated emergency repair expenses,” “Estimated short-term repair expenses,” and “Estimated long-term repair
expenses” are rounded down to the thousands, while ratios are rounded to the first decimal place.
23. “PML” data was acquired from Tokyo Marine & Nichido Risk Consulting Co., Ltd. in November 2020.
24. The “Features” sections have been prepared based on the analyses of the Asset Manager and the appraisal reports of
the real estate appraiser concerning the Asset to Be Acquired.
25. The “Special Notes” section denotes important factors upon considering the rights, appraisal values, the impact on
profitability and disposability, etc., concerning the Asset to Be Acquired.
Overview of the Property
Category of anticipatedproperty for acquisition
Trustee (scheduled)
Trust agreement period
Scheduled acquisition price

Trust beneficiary interests
Mizuho Trust & Banking Co., Ltd.
From December 28, 2020 to December 31, 2030
JPY 2,600 million
Scheduled acquisition date

December 28, 2020

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
Appraisal value(appraisal date)
Location
AccessForm of ownership
Land
Area
Structure/Floors
Building

Total floor area
Form of ownership
Building engineer
Constructor
Building inspection agency
Investigation agency or
structural calculation
confirmation agency
Estimated emergency
repair expenses
Estimated long-term repair
expenses
Property manager
Master lessee
Real estate rent revenue
Lease and guarantee deposits
Total leasable area
Total leased area
Collateral

JPY 2,710 million
Tanizawa Sogo Appraisal
Appraisal firm
(as of November 1, 2020)
Co., Ltd.
(Residential indication) 1-1 Higashi-Terauchi cho, Toyonaka city, Osaka(Lot number) 158-6 Higashi-Terauchi cho, Toyonaka city, Osaka
Approximately 500 meters from Ryokuchi-koen Station on the Kita-Osaka Kyuko Line
category 1 low-riseOwnership
Zoningexclusive residential district
5,519.26 m²
FAR／Building-to-land
150%／60%
ratio
RC, 1-floor basement, 3Number of leasable units
192 unitsstory building with flat roof
6,226.39 m²
Construction completion
October 24, 2011
Ownership
Use
Condominium
TAISEI U-LEC corporation. First-class architect office
TAISEI U-LEC corporation.
CENTER FOR INTERNATIONAL ARCHITECTURAL STANDARDDAIWA REAL ESTATE APPRAISAL CO.,LTD.
JPY 0 thousand

Estimated short-term
repair expenses

JPY 0 thousand

JPY 132,954 thousand

PML

5.8%

HASEKO LIVENET, Inc.
G.K. Japan Rental Housing Type of master lease
Overview of Leasing
JPY 14,859 thousand
JPY 28,899 thousand
4,916.02 m²
Number of tenants
4,916.02 m²
Occupancy rate
None
Features

Pass through1
100.0%

Site features:This property is a condominium that was completed in October, 2011, located 7 minutes' walk from Ryokuchi-koen Stationon the Kita-Osaka Kyuko Line. The west side of Ryokuchi-koen Station has a vast Hattori Ryokuchi Park, including sports
facilities, outdoor musical halls, and botanical parks, making it an attractive living environment. The area around thisproperty is a quiet residential area where you can live calmly. It also has excellent access to central urban areas such as the
Shin-Osaka, Umeda, Yodoyabashi, and Honmachi, and is expected to attract stable demand from single-person who
commutes to the city center.
Property features:This property is a 3-story reinforced-concrete structure with 1 basement and is composed of 1K・2DK. Although each unit
can be leased individually, currently all units are leased as corporate housing. The building of this property has a highly
designable appearance decorated with a terra cottal bar in the common building. The common area is equipped with a wide
common space that can be used by residents, and the residence provides security facilities such as auto-locks, intercoms
with monitors, and security cameras. The building has enough machine parking lots, which provides high-quality andcomfortable living for residents.
Special Notes
A self-managed park (161.97 square meters) is located near the intersection on the north side of the property (part of theproperty's land). A part of the south side of the property (114.15 square meters) is a private road.

IV. Profile of the Counterparty
The seller of the asset to be acquired is a domestic company, whose name is not disclosed because the seller’s consent has notbeen obtained. There are no capital, human, or business relationships between the Investment Corporation or the Asset Manager
and the seller. The seller is not related party of the Investment Corporation or the Asset Manager.
The seller does not fall under the category of interested persons under the Order for Enforcement of the Act on Investment
Trusts and Investment Corporations, nor does it fall under the category of interested party, etc. under the internal rules on dealings
with interested parties of the Asset Manager.

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
V. Profile of the Property Seller
The seller of the anticipated property is not classified as a special related party of the Investment Corporation and the AssetManager.
VI. Funds for Acquisition
Own funds or loansVII. Acquisition Schedule・ Decision of acquisition and conclusion of purchase agreement: December 23, 2020
・ Payment and delivery: December 28, 2020
Ⅷ. Payment Method, Etc.
Lump-sum payment at the time of transaction.
Ⅸ. Future Prospects
The Acquisition will have only a slight impact on the asset management condition in the fiscal period ending March 31, 2021
(from October 1, 2020 to March 31, 2021) and the fiscal period ending September 30, 2021 (from April 1, 2021 to September
30, 2021), and there is no change in the asset management forecast.
X. Summary of Appraisal Report
Property nameAppraisal value
Appraiser
Date of appraisal

Hulic Residence Senriyama
2,710,000,000 yen
Tanizawa Sogo Appraisal Co., Ltd.
November 1, 2020

Item
Value indicated by income approach
Value indicated by the direct capitalization
method(1) Total Operating Income: (a) – (b)JPY thousand

Details
2,710,000

JPY thousand

2,790,000

JPY thousand

169,419

Rental revenues includingcommon service fees

JPY thousand

165,945

Parking fees

JPY thousand

11,772Other revenues

JPY thousand

3,279

Losses from vacancies

JPY thousand

11,577

JPY thousand
JPY thousand

035,297

Operation costs

JPY thousand

3,780

Utilities

JPY thousand

1,769

Repairs and maintenanceexpense

JPY thousand

7,567

Property management fees

JPY thousand

3,821

Tenant promotion fees, etc.

JPY thousand

3,551

Taxes and public dues

JPY thousand

11,093Nonlife insurance

JPY thousand

325

JPY thousand

3,388

Outline, etc.
Assessed by verifying direct capitalization value based on DCF method with reference
Assessed by capitalizing standardized net income recognized to be stable over the
medium to long term－
Rental revenues: Recurring revenues from renting, or outsourcing themanagement of, the entire property or its rooms (full occupancy is assumed)
Revenues from common service fees: Revenues from collecting fees underagreements with lessees to cover expenses related to the common use space inrecurring expenses for the operation and maintenance of the property (fulloccupancy is assumed)
Revenues from renting out the parking space of the property to the tenants etc.
and revenues from renting out parking space by the hour (full occupancy is
assumed)
Revenues from fees for the installation of facilities, including signs, antennas,
vending machines, revenues from one-time payments that do not need to be
returned, including key money and renewal fees, and other revenues
Reductions in revenues based on predictions of vacancies, intervals due tochanges of tenants, etc.
Reductions in revenues based on predictions of bad debt－
Recurring expenses incurred for the maintenance of the property, including themanagement of the building and facilities, security, and cleaning
Expenses for electricity, waters, gas, local air-conditioning heat sources, etc. inproperty management
Of expenses for repairs, improvements, etc. of the building and facilities, etc. of
the property, recurring expenses for the usual maintenance and management of
the building and facilities, etc. and for the restoration of the building and facilities,
etc. that have been damaged
Expenses related to the management of the property
Expenses for intermediation, advertising, etc. while looking for new tenants andexpenses incurred for renewals and extensions of rental contracts with tenants,
etc.
Property tax (land, building, depreciation assets), city planning tax (land,building)
Expenses for fire insurance for the property and accompanying facilities, expenses
for liability insurance that covers losses incurred by damage done to a third party
etc. due to defects of the property and accidents in property management, etc.
Expenses including land rent and exclusive road use fees

JPY thousand

134,122

－

(a)

(b)

Bad debt losses(2) Total Operating Expenses

Other expenses(3) Net Operating Income (NOI):(1) – (2)English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
(4) Lump-Sum Investment Return

JPY thousand(5) Capital Expenditure

JPY thousand

8,470(6) Net Cash Flow (NCF): (3) + (4) – (5)JPY thousand

125,774(7) Capitalization Rate(%)

Value indicated by DCF method

JPY thousand

121

4.5
2,670,000

Discount rate

(%)

4.6

Terminal capitalization rate

(%)

4.7

Value indicated by cost approach
Land ratio
Property ratio

JPY thousand(%)(%)

Other items of note by appraiser

URL: https://www.daiwa-securities-living.co.jp/en/

2,940,000
70.0
30.0
None.

Investment return is assumed at 1.0%
Based on figures of ER and similar cases allocated at 3:7 for Repair and Capital
Expenditures－
Comprehensive consideration taking into account the property’s location, thecharacteristics of the building and contractual characteristics－
Compared with transaction cases of similar properties and investigated by taking
into account the property’s individuality on the yields of other financial assets
Characteristics of net income used for Capitalization Rate, future uncertainties,
liquidity, market value, etc. are accounted for in the determination of the rate.
－－－

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

(Reference Material 1) Exterior and Map of the Asset to Be AcquiredEnglish Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

(Reference Material 2) Japan Habitat Evaluation and Certification Program (JHEP)
Hulic Residence Senriyama has been awarded A rank by Japan Habitat Evaluation and Certification Program (JHEP) for
its efforts to contribute to the conservation and restoration of biodiversity.
* JHEP was developed and has been administrated by Ecosystem Conservation Society-Japan (ECSJ), whichquantitatively values and certificates the efforts to contribute to the conservation and restoration of biodiversity.
・Installation of a self-managed park
A self-managed park is installed on the north side of the site and many trees are planted. In addition, on the south side of
the building, there are hedges with mixed plants.
・Planting management aimed at improving the quality of biodiversity
Rather than pruning uniformly, planting is managed with the policy of growing trees to a height of 7 meters to 12
meters.

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

(Additional Material) Overview of Portfolio accompany the Acquisition<Number of Properties, Etc.>
Properties owned asof today(a)
Total number of
224 properties
properties
Total number of
16,312 units
leasable units
Total leasable area

712,958.92 m2

Asset to Be Acquired(b)

Other assets to beacquired(c) (Note)(a) + (b) + (c)1 properties

6 properties

231 properties

192 units

198 units

16,702 units

4,916.02 m2

5,905.73 m2

723,780.67 m2(Note) This refers to the 6 properties scheduled to be acquired, announced on October 21, 2020.

<Asset Size, Etc.>

Total (anticipated)acquisition price(Note 1)
Appraisal value(Note 2)

Properties owned asof today(a)

Asset to Be Acquired(b)

Other assets to beacquired(c)

JPY 319.8 billion

JPY 2.6 billion

JPY 6.3 billion

JPY 328.8 billion

JPY 374.9 billion

JPY 2.7 billion

JPY 6.6 billion

JPY 384.3 billion(a) + (b) + (c)(Note 1) Total (anticipated) acquisition price is calculated based on the (anticipated) acquisition price.
(Note 2) Among the Appraisal value of the "Properties owned as of today”, Gran Casa Magome I is calculated based on the appraisal value as of October 1,
2020, Splendide Nambamamotomachi, Gran Casa Fujisawa, Good Time Living Osaka Bay, Sunny Life Hiyoshi, and Sunny Life Chofu arecalculated based on the appraisal value as of October 1, 2020, and other properties are calculated based on the appraisal value as of September 30,
2020. "Asset to Be Acquired" is calculated based on the appraisal value as of November 1, 2020, and "Other assets to be acquired" are calculated
based on the appraisal value as of October 1, 2020.

<Amount and Rate of Investment by Type (Based on (Anticipated) Acquisition Price>
Properties owned as
Other assets to be
Asset to Be Acquiredof todayacquired
(b)
(a)
(c)
JPY 144.5 billion
StudioJPY 2.6 billion
JPY 6.3 billion(45.2%)
JPY 79.6 billion
Family(24.9%)
JPY 95.5 billion
Healthcare(29.9%)(a) + (b) + (c)JPY 153.5 billion(46.7%)
JPY 79.6 billion(24.2%)
JPY 95.5 billion(29.1%)