September 14, 2022
For Translation Purposes Only
Real Estate Investment Fund Issuer:
Mori Hills REIT Investment Corporation(Securities Code: 3234)
1-12-32 Akasaka, Minato-ku, Tokyo
Hideyuki Isobe, Executive Director
Asset Manager:
Mori Building Investment Management Co., Ltd.
Hideyuki Isobe, President & CEO
Inquiries: Ryosuke Kanazawa
Chief General Manager andGeneral Manager of Planning Department
TEL: +81-3-6234-3234

MHR Announces Transaction with a Related Party(Mori Building Ryutsu System Co., Ltd.) (Laforet Harajuku (land))Mori Hills REIT Investment Corporation (hereinafter “MHR”) announced that Mori Building
Investment Management Co., Ltd. (hereinafter “MIM”), to which MHR entrusts its asset
management, decided today to conduct a transaction with a related party, etc. as stipulated in theAct on Investment Trusts and Investment Corporations (hereinafter “Investment Trusts Act”). The
details are as follows.
1. Transaction Overview
MHR has decided to conclude a memorandum to revise rent on business-use fixed-term land leaseagreement with lessee, Mori Building Ryutsu System Co., Ltd. as below for the revision of themonthly rent of Laforet Harajuku (land) concluded with Mori Building Ryutsu System Co., Ltd.
2. Summary of the Revision and Reasons
Based on the appraisal on continuing rent from Japan Real Estate Institute and result of thediscussion between the parties, MHR has decided to revise the rent as below which are equivalent
to that of before revision.
(1)

Leased property:

Laforet Harajuku (land)(2)

Leased area:

2,385.51m2 (Note 1)(3)

Lessee:Mori Building Ryutsu System Co., Ltd.

(4)

Monthly rent before renewal:

103,509,000 yen (Note 2)(5)Monthly rent after renewal:

103,509,000 yen (Note 2)(6)

Planned date of change:

October 1, 2022

(7)

Date of execution:

September 30, 2022

(Note 1) The area indicates an area obtained by multiplying the quasi co-ownership interest ratio of trust
beneficial interests (93%) by total leased area of real estate in trust.
(Note 2) The figure indicates an amount obtained by multiplying the quasi co-ownership interest ratio of trust
beneficial interests by monthly rent of the real estate in trust.

1

3. Overview of Related Party, etc.
NameMori Building Ryutsu System Co., Ltd.

Location

1-9-13 Jingumae, Shibuya-ku, Tokyo

Representative

Shingo Tsuji, President & CEO

Scope of business

Management and consulting of shopping center (Laforet Harajuku)
and multi-purpose hall (Laforet Museum)

Capital1,500 million yen (as of March 31, 2022)

Established

July 3, 1986

Major shareholder

Mori Kiyo Co., Ltd. (as of March 31, 2022)

Net assets

931 million yen (as of March 31, 2022)

Total assets

2,588 million yen (as of March 31, 2022)

Relationship with MHR and Asset Manager (as of September 14, 2022)
Capital relationship

Mori Kiyo the parent company of Mori Building which is the wholly
owning parent company (100% stake) of the Asset Manager, andthus constitutes a related party, etc. as defined in the Investment
Trusts Act.

Personnel relationship There are no personnel relationships to note.
Business relationship

There are no business relationships to note.

Application of status Mori Building Ryutsu System falls under the category of a related
as a related party
party of MHR and the Asset Manager.
4. OtherUpon consultation with Mori Building Ryutsu System Co., Ltd., the following appraisal values
were decided to be the revised monthly rents.
Appraisal value by Japan Real Estate Institute concerning continuous monthly rents (land rent)
Appraisal value

103,509,000 yen (Note)

Appraisal date

September 1, 2022

(Note) The figure indicates an amount obtained by multiplying the quasi co-ownership interest ratio of trust
beneficial interests (93%) by the appraisal value.

5. Procedures Concerning Transactions with Related Party, etc.
To comply with applicable laws and regulations and with the asset management agreement, as
well as to prevent the interests of MHR from being negatively impacted, the Asset Manager has
conducted adequate procedures pursuant to the Related Parties Transaction Guidelines. Inaddition, MIM will deliver a written statement to MHR, pursuant to the Investment Trusts Act.
6. Outlook
For the forecast of business results, please refer to the “Financial Report for the Thirty-second
Fiscal Period Ended July 2022” separately announced today.
MHR’s website address is https://www.mori-hills-reit.co.jp/en/2