For Translation Purposes Only
For Immediate Release
Nomura Real Estate Master Fund, Inc.
Satoshi Yanagita, Executive Director(Securities Code: 3285)

December 16, 2014

Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Yasuaki Fukui, President and Chief Executive Officer
Inquiries: Motomi Uki, General Manager, NMF Investment Management
TEL: +81-3-3365-8767
EMAIL: nmf3285@nomura-re.co.jp

Notice Concerning Property Acquisition(Kawasaki More’s: Additional Acquisition of Compartmentalized Ownership)
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced
today that it has determined the acquisition of the asset, as stated below.
1. Summary of the Asset to be Acquired
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Type of asset: Beneficial Interest in Real Estate Trust
Property name: Kawasaki More’s
Acquisition price (Scheduled): ¥2,080 million (Note)
Scheduled date of agreement: December 19, 2014 (date of agreement on purchase and saleof beneficial interest in real estate trust)
Scheduled date of acquisition: December 19, 2014 (date of delivery of beneficial interest inreal estate trust)Seller: Refer to “4. Seller Profile” below
Financing: Fund on hand and borrowings
Others: Compartmentalized ownership (total exclusive floor space: 4,278.05m2) andbeneficial interest in trust with its land as asset in trust of the above property are
the assets to be acquired. Nomura Master Fund currently holds
compartmentalized ownership of the property (total exclusive area: 14,446.48m2)
and the beneficial interest in trust with its land as asset in trust. With thisadditional acquisition (the “Additional Acquisition”), Nomura Master Fund willhold approximately 86.9% of compartmentalized ownership of the property (total
exclusive floor space: 21,537.59m2). For an overview of the property, please see
Exhibit 4 “Property Conceptual Diagram.”(Note) Excluding property taxes, urban planning taxes, consumption taxes and local consumption taxes

The compartmentalized ownership as assets in trust of the above assets to be acquired, the abovebuilding including the land and the land in its entirety shall be referred to as the “Property”
hereinafter.

2. Grounds
Nomura Master Fund will acquire the asset to be acquired in accordance with the Fund’s policies
as stipulated in its Articles of Incorporation. The Fund values the following factors.
(1) Location
・JR Tokaido Line, JR Keihin Tohoku Line and JR Nambu Line are available at thenearest station, Kawasaki Station. The number of its daily train passengers combinedwith that of Keikyu Kawasaki Station on the Keikyu Line is approximately 510,000,
making it the second largest terminal station in Kanagawa Prefecture after Yokohama
Station.

・

In addition to the working population in the surrounding offices, the population
within a 1 km trading zone from the Property is large at 52,000. A highconcentration of commercial activity can be found around the station, such as atré
Kawasaki (JR Kawasaki Station building) and Kawasaki Le FRONT (Marui,
Yodobashi Camera) at the East Gate, and LAZONA Kawasaki Plaza, etc. at the West
Gate.

(2) Property Features
・The Property, which faces the East Gate of Kawasaki Station and thus offers astunning view, also guarantees excellent access to the terminal station via either anabove-ground route through the convenient station-front rotary or a route below
ground connecting the second basement floor to the station’s underground shopping
mall.

・

The Property building also has an entrance on the side facing the shopping street
which boasts a large number of pedestrians. It houses about 50 tenants providing
items that can expect to consistently be in demand, including food stores, a men’s
clothing store, an amusement facility, novelty goods shops and restaurants, and isoperated as a community-based retail facility.

(3) Enhancement of the Asset Value due to the Additional Acquisition
・

Nomura Master Fund already holds the beneficial interest in trust with part of thecompartmentalized ownership and such of the Property as asset in trust (the“Property already held”). (Trustee of beneficial trust: Mitsubishi UFJ Trust andBanking Corporation. The ownership ratios of the entire Property are 59.4% for theland and 67.1% for the building.)・

After the Additional Acquisition, Nomura Master Fund will hold, combined with theProperty already held, the beneficial interest in trust with 76.6% of the land and86.9% of the building (the respective ownership ratios of the land and building of
the entire Property) of the Property as asset in trust. Thus the Additional Acquisition
will contribute to the enhancement of asset value, operational efficiency and liquidity.

3. Property Summary
Property Name
Type of Asset
Trustee of Beneficial Trust
Beneficial Trust Contract
PeriodRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Seismic Risk (PML) (Note 2)
Architect
Structural Strength Calculator
Constructor
Building Inspection Agency
Land
Area (Note 1)
Building
Land
Type ofOwnership
Building
Building Coverage Ratio(Note 3)
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Lessee (Note 5)
Type of Master Lease(Note 6)

Notes

Acquisition Price (Scheduled)

Kawasaki More’s
Beneficial Interest in Real Estate Trust
Mitsubishi UFJ Trust and Banking Corporation
December 1, 2004 – December 1, 2019
6-1, Ekimae-Honcho, Kawasaki-ku, Kawasaki-shi, Kanagawa, others
7-1, Ekimae-Honcho, Kawasaki-ku, Kawasaki-shi, Kanagawa
1 minute walk from Kawasaki Station on the JR Line and 2-minute walk from
Keikyu Kawasaki Station on the Keihin Kyuko Line
August, 1980
Retail
SRC, B2/11F
7.39%(Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake PMLAppraisal Report as of November 2014)
Yamashita Sekkei, Inc.
Yamashita Sekkei, Inc.
Takei Construction Corporation (Kajima Corporation for construction ofunderground structure)
Kawasaki-shi
2,719.72 m2 (822.71 tsubo)
22,235.96 m2 (6,726.37 tsubo)
OwnershipCompartmentalized Ownership
100%
800%
None
Nomura Real Estate Partners Co., Ltd.
Yokohama Okadaya Co., Ltd.
Guaranteed rental scheme
・ The property management company, Nomura Real Estate Partners Co.,
Ltd., is considered a Related Party under the Law Concerning Investment
Trust and Investment Corporation (“Investment Trust Law”).
・ The site of the entire building including the building of the Property isowned by the holders of compartmentalized ownership for theirrespective portions, and constitutes what is called a mutually leased land
where it is mutually leased among the holders of the compartmentalized
ownership. The land area the Fund will be leasing from other holders ofcompartmentalized ownership will be 605.18m2.
・ The management regulations among the holders of compartmentalized
ownership for the Property state that, when any of the holders ofcompartmentalized ownership wishes to transfer the whole or part of its
compartmentalized ownership, the party shall notify it to other holders ofcompartmentalized ownership in writing and grant them a preferential
negotiation right for a certain period of time.
・ The master lessee of the Property has removed the physical partitions
between some part of the building of the Property and the adjacentexclusive areas of other holders of compartmentalized ownership inorder to utilize the space in an integrated manner with the adjacentexclusive areas leased from other holders of compartmentalized
ownership.
¥2,080 million¥2,670 million(Based on the capitalization approach as of October 31, 2014)(Appraiser: The Tanizawa Sogo Appraisal Co., Ltd.)
Appraisal NOI (Note 7)¥132 million
Leasing Status (As of December 16, 2014)
Total Number of Tenants
1
Total Rental Income
Undisclosed (Note 8)
Security Deposits
Undisclosed (Note 8)
Occupancy Rate (Note 9)
100.0%
Total Leased Floor Space
4,363.83 m2 (1,320.06 tsubo)(Note 10)
Total Leasable Floor Space
4,363.83 m2 (1,320.06 tsubo)(Note 11)

Appraisal Value and Method

Occupancy Rates in the Past
(Note 12)

August 31,
2010

100.0%

August 31,
2011

100.0%

August 31,
2012

100.0%

August 31,
2013

100.0%

August 31,
2014

100.0%(Notes)1.
Location (registry) and Several Other Items“Location (registry)”, “Completion Date”, “Structure” and “Area” are based on the information in thereal estate registry. Use is based on the main use of the type of building indicated in the real estateregistry.
2.

PML (Probable Maximum Loss)PML shows the probable losses caused by a major earthquake, as a percentage of the expected recovery
cost to the replacement cost. PML is calculated based on the statistical assumption that within next 475
years there is a 0.211% annual chance (10% probability of once every 50 years, i.e., average life time ofbuildings) of major earthquake occurring.

3.

Building Coverage Ratio
The Property is located in a commercial district where the building coverage ratio is 80% in principle.
As the building is fire-resistant in a fire zone, however, an increased ratio of 100% applies.

4.

Property Management Company
Refers to the Property Management Company that is scheduled to be appointed after the acquisition.

5.

Master Lessee
Indicates the master leasing company concluded the master leasing agreement or scheduled to enter intoa master leasing agreement after the completion of the acquisition.

6.

Type of Master Lease
Indicates “pass-through scheme” for the form of the executed master lease agreement called
pass-through type in which a Master Lessee would pay the Fund the same amount as the rents from end
tenants based on the lease agreements with them, and “guaranteed rental scheme” for the form of theexecuted master lease in which a Master Lessee would pay fixed rents to the Fund.

7.

Appraisal NOINOI means the net operating income that is the gross income from the leasing operation less the total
operation costs and expenses.
“Appraisal NOI” indicates the annual NOI described in the real estate appraisal report with October 31,
2014 as the appraisal date.

8.

Total Rental Income and Security Deposits Leasing Status
Undisclosed as consent has not been obtained from the master lease company.

9.

Occupancy Rate
Indicates the ratio of the Total Leased Floor to the Total Leasable Floor Space in each property(rounded to the first decimal place).

10.

Total Leased Floor Space
Indicates the floor space that is being leased to master lease company as of today.

11.

Total Leasable Floor Space
Indicates the total area of leasable spaces of retail property (including the area of common-use spaces,
etc. if they are leased). The Total Leasable Floor Space is not an indication on the registry but shows thearea indicated in the lease agreements or the calculated areas based on the building completion drawings
and other documents. As such, the Total Leasable Floor Space is not necessarily equal to the Total Floor

Space based on the indications in the registry and may occasionally surpass the Total Floor Space.
12.

Occupancy Rates in the Past
Based on the information from the seller.

4. Seller Profile
As the Fund has not obtained an agreement with the Seller, who is a Japanese Limited Company,
this information is not disclosed. The transferee is not a Related Party under the Investment
Trust Law of the asset management company.
5. Status of Owners
This transaction is not with a Seller that not is a specific Related Party of the Fund and the AssetManagement Company.
6. Transaction with Related Parties
Transaction concerning Property Management Services for the Property
The property management company of the asset to be acquired, Nomura Real Estate
Partners Co., Ltd. is a Related Party under the Investment Trust Law. Nomura MasterFund and the Asset Management Company determined the consignment and the terms
and conditions of the transaction, including the fees, etc., pursuant to the restrictions andformalities concerning the transactions with related parties as set forth in the Investment
Trust Law and the Asset Management Company’s bylaws and duly authorized by theCompliance Committee and Investment Committee in the Asset Management Company.
7. Brokerage ProfileNo brokers were involved in the transaction of the asset to be acquired.
8. Forecasts of Financial Results
As the impact of the acquisition of the asset to be acquired on Nomura Master Fund’s forecastsof financial results for the fiscal period ending February 28, 2014 (September 1, 2013 to February
28, 2014) and the fiscal period ending August 31, 2014 (March 1, 2014 to August 31, 2014) will
be minimal, there is no revision to the forecast of financial results.

9. Forecasts of Financial Results
Property Name

Kawasaki More’s (Additional Acquisition)

Appraisal Value¥2,670,000,000

The Tanizawa Sogo Appraisal Co., Ltd.

Appraiser
Appraisal Date

October 31, 2014
(Yen)
Item

Amount or percentage

Capitalization approach pricePrice calculated by the direct
capitalization approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.
(2) Operating expenses
MaintenanceUtilities costs
Repair costs
Property management fees
Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(3) Net operating income fromleasing business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))(7) Capitalization rate
Price calculated by the Discounted Cash
Flow Approach

Grounds

2,670,000,000
2,690,000,000--(Note)

134,540,262
5.0%

Assumed based mainly on the yield on investment ofsimilar retail facilities while taking into consideration thearea characteristics and specific individual characteristicsof the Property

2,660,000,000
5.0%

Terminal capitalization rate

5.2%

Matters noted inreconciliation ofindicated value anddetermination ofappraisal value(Note)

132,697,723

Discount rate

Cost Approach Price
Ratio of land
Ratio of building

In calculating, both the discounted cash flow approachand the direct capitalization approach are taken into
account
Calculated by capitalization rate based on a normalized net
cash flow (NCF)

Assumed by taking into consideration the individual risks,etc. of the Property
Assumed based on the capitalization rate as well as futureforecast uncertainty

1,.320,000,000
83.3%
16.7%
The Property is located at the East Gate of JR Kawasaki Station and, together with the building heldin compartmentalized ownership beyond the scope of this appraisal, is operated as a large
station-front retail facility (“Kawasaki More’s”). As for its location, etc., it has excellent proximity to astation and to central Tokyo while also boasting superiority in scale and other factors when comparedwith the competitors in the surrounding area. Thus it is a property that can continue to generate
stable profit going forward and we took into consideration that it is judged to hold mid-level orhigher competitiveness in the same supply-demand zone.

(Note) The Property is under a master lease agreement with a guaranteed rental scheme concluded with amaster lease company who is a third party not having a special interest relationship with Nomura
Master Fund or the Asset Management Company. Thus disclosing information on these items may
negatively affect Nomura Master Fund’s competitiveness, possibly undermining unitholderinterests. Furthermore, the items are not disclosed since consent regarding the disclosure of theinformation has not been obtained from the master lease company.

【Exhibits】
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4

Portfolio after Acquisition of the Property
Property Photo
Property Map
Property Conceptual Diagram*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/Exhibit 1
Portfolio after Acquisition of the Property
Use

Logistics

Area(Note 1)

Greater Tokyo

Other areas

Property Name
Landport Urayasu
Landport Itabashi
Landport Kawagoe
Landport Atsugi
Sagamihara Tana Logistics Center
Sagamihara Onodai Logistics Center
Landport Hachioji
Landport Kasukabe
Funabashi Logistics Center
Atsugi-Minami Logistics Center B Tower
Hanyu Logistics Center
Kawaguchi Logistics Center B Tower
Kawaguchi Logistics Center A Tower
Atsugi-Minami Logistics Center A Tower
Ota Nitta Logistics Center
Ota Higashi-Shinmachi Logistics Center
Ota Kiyohara Logistics Center
Chiyodamachi Logistics Center

Yokosuka More’s City

13,640

Recipe SHIMOKITAEQUINIA Shinjuku

10,407
4,260
4,000
2,080
3,990
3,440
3,080
2,730
2,600
2,490
1,700
1,560
1,000
15,500
8,930
6,640
4,406
3,020
4,700
1,640
2,740
1,760
1,570
1,240
950
850
800
800
770
740
600
450
370
350
200
160
820
133,583
255,603

4.1
1.7
1.6
0.8
1.6
1.3
1.2
1.1
1.0
1.0
0.7
0.6
0.4
6.1
3.5
2.6
1.7
1.2
1.8
0.6
1.1
0.7
0.6
0.5
0.4
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.3
52.3
100.0

Morisia Tsudanuma

Kawasaki More’s

RetailKinki Area

Other areas

Retail (landwithGreater Tokyo
leaseholdinterest)

Kinki Area
Retail Sub-total

Percentage to Total(%)(Note 3)
6.8
6.1
5.4
4.5
4.1
3.4
3.2
2.9
1.8
1.8
1.5
1.5
1.1
1.1
1.3
0.8
0.3
0.1
47.7
6.5
5.3

Logistics Sub-total

Greater Tokyo

Acquisition Price(million yen)
(Note 2)
17,40015,71013,70011,41010,600
8,700
8,250
7,340
4,660
4,590
3,810
3,750
2,830
2,690
3,430
2,170
650
330
122,020
16,600EQUINIA Ikebukuro
covirna Machida
Nitori Makuhari
Konami Sports Club Fuchu
FESTA SQUAREGEMS Shibuya
Sundai Azamino
EQUINIA Aobadai
Megalos Kanagawa
Universal CityWalk Osaka
Izumiya Senrioka
Merad Owada
Izumiya Yao
Izumiya Obayashi
Ichibancho Stear
EQUINIA Aobadori
Mitsubishi Motors Meguro
Mitsubishi Motors Chofu
Mitsubishi Motors Shibuya
Mitsubishi Motors Nerima
Mitsubishi Motors Kawasaki
Mitsubishi Motors Takaido
Mitsubishi Motors Katsushika
Mitsubishi Motors Higashi-Kurume
Mitsubishi Motors Setagaya
Mitsubishi Motors Suginami
Mitsubishi Motors Sekimachi
Mitsubishi Motors Higashi-Yamato
Mitsubishi Motors Motosumiyoshi
Mitsubishi Motors Kawagoe
Mitsubishi Motors Edogawa
Mitsubishi Motors Sayama
Mitsubishi Motors Ibaraki Maintenance Center
Total

Date of Acquisition
June 14, 2013
June 14, 2013
July 31, 2013
June 14, 2013
July 19, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
June 14, 2013
December 13, 2013
June 14, 2013
June 14, 2013
December 19, 2014
June 14, 2013
June 14, 2013
June 13, 2013
June 13, 2013
June 13, 2013
July 31, 2013
June 14, 2013
June 14, 2013
June 13, 2013
September 30, 2014
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 14, 2013
June 14, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013
June 13, 2013-

Investment
Securities

GreaterTokyo

Ryoke Capital Godo Kaisha Silent Partnership
Equity Interest

500-

March 25, 2014

(Note 1) “Greater Tokyo” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Kinki
Area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture and Nara Prefecture. “Chukyo Area” refers to
Aichi Prefecture, Gifu Prefecture and Mie Prefecture. “Other Areas” refers to cabinet-order designated cities,
prefectural capitals, and cities having a population of at least 100,000 and their peripheral areas, excluding Greater
Tokyo, Kinki Area and Chukyo Area.
(Note 2) The Acquisition Price is the amount (the amount of transaction payment of real estate, etc. described in the sales
agreement with condition precedent and the investment amount described in the Silent Partnership Agreement)
excluding costs required to acquire the properties, etc. and the Silent Partnership Equity Interest (transaction brokerage
fee, taxes and public dues, etc.).
(Note 3) “Percentage to Total” indicates the ratio of the acquisition price of respective properties to the total acquisition priceof the entire portfolio (56 properties in total). The calculation of investment ratio excludes the Silent Partnership
Equity Interest. Furthermore, as the figures were rounded to the first decimal place, the total may not necessarily be
100%.

Exhibit 2
Photo of Kawasaki More’sExhibit 3
Map of Kawasaki More’sExhibit 4
Property Conceptual Diagram

8F
7F
6F
5F
4F
3F
2F
1F
B1F
B2F

①
②
④ ⑤
③
①

Exclusively held
floor space (Note)
Mitsubishi UFJ Trust Bank
1,294.11 tsubo① Compartment to be acquired
Compartment
already
held
byNMF
Mitsubishi
UFJ
Trust
Bank
4,370.06 tsubo②
Owner A
479.07 tsubo
③
Other
owner
Owner
B
320.22 tsubo④
Owner C
51.64 tsubo⑤(Note) Figures are for exclusively held floor space stated in the management bylaws.
Compartment

Owner(Ratio)
19.9%
67.1%
7.4%
4.9%
0.8%