Translation of Japanese Original
June 18, 2024
To All Concerned Parties:
REIT Issuer:
KDX Realty Investment Corporation
Representative: Hiroaki Momoi, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Representative: Akihiro Asano, President & CEO
Contact:
Michiru Nagamata, Head of Strategic Planning,
Listed REIT Department
TEL:+81-3-5157-6010

Notice Concerning Acquisition of Properties (1 Logistics Facility, 2 Hotels and 1 Healthcare Facility)
and Disposition of Property (1 Office Building)
KDX Realty Investment Corporation (“KDXR”) announced today that Kenedix Real Estate Fund Management, Inc.
(the “Asset Management Company”), an asset management company for KDXR, decided to acquire and dispose of
the following properties (respectively the “Acquisition” and the “Disposition”, and collectively the “Transactions”).
Each property to be acquired and disposed of is the “Property” and collectively the “5 Properties”.
The sellers of KDX Logistics Ebina Chuo, remm roppongi building (30% quasi co-ownership interest), Shin-Osaka
Esaka Tokyu REI Hotel and Irise Nerima Hikarigaoka are deemed a related-party under Article 201 of the Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended; the “Investment Trust Act”) and
Article 123 of the Enforcement Order of the Investment Trust Act (Order No. 480 of 2000, as amended) and a relatedparty under the Related-Party Transactions Rules of the Listed REIT Department of the Asset Management Company.
Furthermore, the buyer of KDX Nihonbashi 313 Building is deemed a related-party under the Related-Party
Transactions Rules of the Listed REIT Department of the Asset Management Company. Therefore, in accordancewith the above regulations, the Asset Management Company obtained resolutions of approval for the Transactions at
the Investment Committee meeting held on June 18, 2024, after deliberation and approval at the Compliance
Committee meeting held on June 17, 2024. Furthermore, for Irise Nerima Hikarigaoka, a resolution was approved at
the Board of Directors Meeting of KDXR held on the same date, and obtained the consent of the Executive Directorof KDXR based on the above resolution of the Board of Directors Meeting of KDXR.
1．Overview of the Transactions(1) Overview of the Acquisition

Property
Number

Property Name

Location

AnticipatedAppraisal
Acquisition PriceNOI Yield (%) Brokerage
Millions of Yen)
(Note 2)
(Note 1)

(Note 3)

D1009 KDX Logistics Ebina Chuoremm roppongi building
E1003 (30% of quasi co-ownershipinterest) (additional interest)
Shin-Osaka Esaka
E2002
Tokyu REI Hotel (Note 4)
F1016 Irise Nerima Hikarigaoka
(i)
(ii)
(iii)
(iv)
(v)

Ebina, Kanagawa

4,950

4.1

N/A

Minato-ku, Tokyo

5,940

3.6

N/A

Suita, Osaka

5,100

5.6

N/A

Nerima-ku, Tokyo

1,351

4.3

N/A

Contract Date:
June 18, 2024
Scheduled Acquisition Date: July 1, 2024
Seller:Please refer to “4. Overview of Seller and Buyer” for details.
Acquisition Funds:
The proceeds from the property to be disposed of described in “(2)Overview of the Disposition” and cash on hand (scheduled)
Settlement Method:
Payment in full on the date of acquisition(Note 1) “Anticipated Acquisition Price” is the purchase price (excluding acquisition costs, settlement of property tax and city
planning tax, and consumption tax, etc.) indicated in each trust beneficiary interest sale and purchase contract, and isrounded down to the nearest million yen. The same shall apply hereafter.
(Note 2) “Appraisal NOI Yield” is calculated by dividing the appraisal NOI of each property as on the appraisal report as of
May 1, 2024 by the anticipated acquisition price for each property and rounded to the first decimal place.

1

“Appraisal NOI” refers to NOI (Net Operating Income) before depreciation expenses, which is calculated bydeducting the operating expenses from the operating revenues described in the appraisal report, and thus, differs fromNCF (Net Cash Flow) which is calculated by adding the profit from the investment of tenant deposits to and deducting
capital expenditures from NOI. The appraisal NOI here is the NOI calculated using the direct capitalization method.
(Note 3) KDXR plans to change the property name after the Acquisition. Accordingly, the property name after the change isshown in this press release. The property name before the acquisition is not disclosed because the seller has not given
consent. The same shall apply hereafter.
(Note 4) “Shin-Osaka Esaka Tokyu REI Hotel” is the other unit-owned section of compartmentalized ownership property that
includes the retail facility “Carino Esaka”, property owned by KDXR, and which will become 100% owned after thisacquisition. After the Acquisition, “Carino Esaka” will be included and classified as a hotel. The same shall apply
hereafter.

(2) Overview of the Disposition

Property
Number

Property Name

Anticipated
Disposition Price(Note 1)

Difference between
AnticipatedBook Value (Note 2) Disposition Price(Millions of Yen)
and Book Value

Brokerage(Note 3)

(Millions of Yen)

(Millions of Yen)
A1001
(i)
(ii)
(iii)
(iv)
(v)

KDX Nihonbashi 313
Building

7,110

5,558

1,551

N/A

Contract Date:
June 18, 2024
Scheduled Disposition Date: June 28, 2024
Buyer :
Please refer to “4. Overview of Seller and Buyer” for details.
Use of Proceeds:
Funds for acquisition of the properties to be acquired described in “(1)Overview of the Acquisition” and related expenses
Settlement Method:
Payment in full on the date of disposition(Note 1) “Anticipated Disposition Price” is the disposition price (excluding the disposition costs, settlement of property tax
and city planning tax, and consumption tax, etc.) indicated in the trust beneficiary interest sale and purchase contract,and is rounded down to the nearest million yen. The same shall apply hereafter.
(Note 2) “Book Value” is as of the end of the fiscal period ended April 30, 2024, rounded down to the nearest million yen.
(Note 3) Figures are referential amount, calculated as a difference between anticipated disposition price and book value, anddifferent from gain or loss on sale, and is rounded down to the nearest million yen.

2．Reasons for the Acquisition and the Disposition
In accordance with the “Asset Management Targets and Policies” set forth in the Articles of Incorporation of
KDXR, KDXR has decided to acquire 1 logistics facility, 2 hotels and 1 healthcare facility and disposes of 1
office building with the aim of improving the quality of the portfolio and maximizing the value of investors.
Through the Transactions, it is expected that KDXR is able to secure gain on sale, improve portfolio NOI yieldand create further diversified portfolio through acquiring different type of assets.
Furthermore, the following characteristics were evaluated in determining the Acquisition.
(1) KDX Logistics Ebina Chuo
A logistic facility located close to the junction of the Tomei Expressway and Ken-O expressway, withconveniently located within walking distance from the nearest station which are advantageous in securing labor
force(ⅰ)Location
The Property is located approximately 2 km from the Ebina Interchange of Ken-O expressway, providing
excellent access to a wide range of production and consumption areas. Furthermore, the Property isapproximately 11 minutes from “Atsugi” station and approximately 12 minutes from “Ebina” station on
the Odakyu Odawara Line which are advantageous in securing labor force.
KDXR believes that the location also has redevelopment potential as a logistics facility or other type of
asset in the future.

2

(ⅱ)Building
The Property is a BOX-type facility, with an L-shaped truck berth on the first floor, which provides a large
number of berths and high delivery functions. KDXR believes that it fully meets the standards to eliminate
the 2024 truck driver problem of waiting time.
(2) remm roppongi building (30% quasi co-ownership interest)
Hotel located in the Roppongi area, a popular tourist spot for foreigners, as well as being one of the central
business districts, it is expected to attract tourism demand and stable demand for business use.
(ⅰ)Location
The Property is located approximately a 1-minute walk from “Roppongi” station on Tokyo Metro Hibiya
Line / Toei Subway Oedo Line. Within walking distance, large scaled commercial complex such as“Roppongi Hills” and “Tokyo Midtown”, which has luxury brands as tenants, are located, and cultural
facilities such as “The National Art Center Tokyo“ are also scattered throughout the area. As such, the areasurrounding the property is a popular location as a sightseeing spot. Moreover, as a business area, it isconsidered as an office concentrated area, since there is “Roppongi Hills Mori Tower” and there are
numerous head quarter functions of the leading domestic companies and sales departments of foreigncompanies.
(ⅱ)Building
The Property is a relatively new hotel completed in February 2017, with a modern and luxury interior andexterior. The hotel, operated as “remm roppongi” by Hankyu-Hanshin Hotels Co., Ltd., has a concept of“good sleep” and offers several room types starting with 250 of semi-doubled rooms, 70 of tower viewablesemi double rooms, and 80 of twin rooms, making it a total of 400 rooms, including some rooms that canobserve the Tokyo Tower. Moreover, the Property has various safety and convenience features, such as theladies’ floor and introduction of the automatic check-in system. In the retail sections of the basement floor,
first floor, and the 3rd floor of the commercial shop area, restaurants, IT equipment sales and service storesare located. KDXR considers that since the Property is located in a tourist spot popular among foreigners,
it can capture tourism demand, and since it is also one of the central business districts, the Property is anaccommodation facility that can expect stable demand for business use as well.
(3) Shin-Osaka Esaka Tokyo REI HotelA hotel portion of retail / hotel complex within 1-minute walk from “Esaka” station, which has good access tocentral Osaka, exemplified by being 5 stations (10 minutes) to “Umeda” station and 2 stations (4 minutes) to“Shin-Osaka” station.
(ⅰ)Location
The Property is 1-minute walk from “Esaka” station on the Osaka Metro Midosuji Line and Kita Osaka
Kyuko Namboku Line. “Esaka” station is conveniently located on the transportation network that connects
central Osaka City and Suita City from north to south, and is only 5 stations (10 minutes) away from
“Umeda” station. This location with good access to the city center will help capture accommodation
demand from domestic and foreign tourists, also backed by a significant increase in demand from inboundtourists in Osaka Prefecture. Additionally, many companies have their headquarters in the city of Suita,
where “Esaka” station is located; therefore, demand for hotel in association with business trips and otherpurposes is expected.
(ⅱ)Building
The lower floors of the Property are retail facilities, and the upper floors are hotel. The Property bears the
Tokyu REI brand, which has the broadest range of demand in terms of daily use among the nationwide
Tokyu brands, and can expect stable demand for lodging from both business and leisure guests. The main
ancillary facilities include restaurants and banquet halls. Since the neighborhood and surrounding area isthe busiest area in the Esaka district, KDXR believes that demand for restaurants and banquet facilities by
local customers can also be expected.
(4) Irise Nerima Hikarigaoka
A relatively new serviced senior housing and private senior home (with nursing care) in the quiet residential
Hikarigaoka area. The operator is HITOWA Care Service, an operator of four properties owned by KDXR.
(ⅰ)Location
The Property is located approximately 1,500 meters northwest of “Hikarigaoka” station on the Toei Oedo
Line, in a quiet residential area close to greenery, with Hikarigaoka Park and green areas in theneighborhood. Moreover, as there are retail facilities in the vicinity of “Hikarigaoka” station, KDXR
believes that the location offers both convenience of living and a comfortable living environment.
3

(ⅱ)Building
The Property is a serviced senior housing and private senior home (with nursing care) that opened in March
2023. The building consists of 61 single-person rooms ranging in size from 18.27 to 22.33 m2, with eachroom being independent and privacy-conscious. In terms of services, KDXR believes that the Property hasa certain level of competitiveness, with full-time care staff available 24 hours a day, nursing staff available
365 days a year, meals tailored to residents' conditions, and a variety of activities such as in-roomrecreational activities.
HITOWA Care Service, the operator of this property, operates more than 130 nursing care facilities
nationwide, including paid nursing homes for the elderly and day care services under the Irise brand, andhas a total of more than 15,000 residents. Therefore, KDXR believes that the operator of these properties
is highly competitive.
The reason for the Disposition is as follows.
(5) KDX Nihonbashi 313 BuildingThis property is a mid-sized office building located within approximately 3-minute walk from “Nihonbashi” stationon the Tokyo Metro Ginza and Tozai Lines and the Toei Subway Asakusa Line. Although this property continues
stable occupancy due to its convenient transportation access, 50 years have been passed since construction of thisproperty has a limited upside as it is quite inferior to recently built shallow office buildings at the viewpoint ofspecifications. Also due to concerns about the increase in repair costs in the future, KDXR has been promoting the
replacement of existing tenants with fixed-term lease contracts with a view to dispose or future redevelopment.
However, in light of business risks such as no progress in switching lease contracts as expected and future increases
in development costs, KDXR has shifted its policy to the dispose the property on the assumption that KDXR will beable to secure preferential negotiation rights for the property after redevelopment, rather than redeveloping theproperty ourselves. The decision was made after reaching an agreement with the sponsor with disposition priceexceeding the book value and the appraisal value, as well as securing preferential negotiation rights after theredevelopment.

3．Overview of the 5 properties
The table below shows the overview of each property to be acquired and to be disposed of (the “Individual Asset
Table”). In addition, the terms used in the Individual Asset Table are as follows. Please refer to the Individual
Asset Table together with the explanation on the terms listed below. In principle, unless otherwise specified, thestatus as of April 30, 2024 is indicated.












“Location” is the indication of the residential address. In case there is no indication of the residential address, itis the building address under the lot address, or the building location indicated in the certificate of registeredmatters (if there are multiple buildings, the location of one of the buildings). If the building has not been
completed as of today, the lot number of the land is indicated (if there is more than one lot, the lot number of
one of them). The same shall apply hereafter.
“Building coverage ratio” and “Floor area ratio” are the designated building-to-land ratio and designated floorarea ratio provided in the city plan (if there are more than one, both). The designated building-to-land ratio may
be relaxed or restricted since the property is a fireproof building in a fire zone or for other reasons and may
differ from the building-to-land ratio actually applied. The designated floor area ratio may differ from the actual
applicable building-to-land ratio. The same shall apply hereafter.
“Type” for retail facility is among NSC (Neighborhood Shopping Center), SM (Supermarket), CSC(Community Shopping Center), Urban Station-Front SC (Urban Station-Front Shopping Center) and SS(Specialty Store). The same shall apply hereafter.
“Earthquake PML” indicates the figure described in the earthquake PML valuation report (level 2) prepared by
Sompo Risk Management Inc. in May 2024. The same shall apply hereafter.
“Master lease company” is the master lease company executed or scheduled to execute the master leaseagreement for the property. The same shall apply hereafter.
“Type of master lease” is described as follows; “Pass through” for those with a master lease agreement withouta rent guarantee concluded or scheduled to be concluded, “Rent guarantee” for those with a master leaseagreement with a rent guarantee concluded or scheduled to be concluded, and “-” in the case that the owner hasor will conclude a lease agreement directly with the end tenant, or where there is no end tenant. The same shallapply hereafter.
“Property management company” indicates the property management company that has entered into or willenter into a property management agreement for the property. The same applies below.
“Number of Tenants” indicates the number of lessees. In lease agreements for buildings, only lessees who use
the building for retail shops and offices, and where the same lessee leases more than one plot, the figure is
4
















calculated as one for each plot. In cases where the master lease company has entered into a pass-through master
lease agreement with the lessor, the number of end-tenants is stated in brackets after the number of master lease
companies. Unless otherwise noted, the number of end-tenants is given for each property.
“Total Leasable Area” is the floor area described in the lease agreements that is leasable at the property (in casewhere the property contains more than one building, the sum of the leasable floor area of such buildings). The
same shall apply hereafter.
“Total Leased Area” is the area indicated in the lease or sublease agreement with the end-tenant, unlessotherwise noted. If the building has not been completed as of today, it is stated as “-”. The same shall apply
hereafter.
“Total leasable units” is the number of leased residential units, where the lease agreements are actually executedwith end tenants. If the building has not been completed as of today, it is described with “-”. “Number of Rooms/ Retail Stores” is the number of rooms available for use as accommodation and the number of lots available foruse as stores. The same shall apply hereafter.
“Occupancy ratio” is the ratio of the “Total leased areas” (based on the lease agreements) to the “Total leasablearea” of the property rounded to the first decimal place.
“Monthly Rent and Common Area Charge (Excluding Consumption Tax, etc.)” is the sum of the rent andmonthly common-area charges under the lease or sublease agreement (excluding taxes, parking fees and trunk
room charges), rounded down to the nearest thousand yen.
“Security and guarantee deposit” is the sum of the security and guarantee deposits, etc. of each end tenant basedon the lease agreement executed with each end tenant, rounded down to the nearest thousand yen.
The “operator”, “date opened”, “type of facility”, “number of rooms”, “form of right of residence”, “capacity(persons/floor)”, “room area range (m2)”, “number of residents”, “requirements at occupancy”, “occupancyrate”, “average age of residents”, “fee payment method”, “care staff structure,” and “night staff structure(minimum number of persons per night)” are based on the information indicated in the important information
statement or information provided by the operator. In cases where the information is based on information
provided by the operator, the base time of the information is indicated in parentheses. In cases where there is no
description in the important information statement, where it is not applicable, where the information was notprovided by the operator, or where the consent for disclosure has not been obtained, “–” is indicated.
The “fee payment method” is what is indicated as the most common/standard plan in the important information
statement or in the information provided by the operator.
The “average nursing care level of residents” is the sum of the number of residents by the nursing care levelindicated in the important information statement, multiplied by 0 for Independence, 0.375 for Support 1, 1 for
Support 2, and 1 to 5 for Care 1 to 5, respectively, and then divided by the number of residents, rounded to thefirst decimal place. In cases where there is no description in the important information statement or no consent
for disclosure has been obtained, “–” is indicated.
“Cooperating medical institutions” and “cooperating dental institutions” indicate the cooperating medical
institutions, cooperating dental institutions, and designated medical institutions indicated in the important
information statement.
“Overview of contract with tenant” indicates the details of the lease agreement, etc. that has been concluded
with the operator.

(1) Outline of Property to be Acquired① KDX Logistics Ebina Chuo
Property Name
Type of Specified Asset
Trustee
Trust Period
Location
Form of OwnershipLand Area
Land
ZoningBuilding Coverage Ratio
Floor-area ratio
Form of Ownership
Gross Floor Area
Date Constructed
Building
Use

KDX Logistics Ebina Chuo
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
September 29, 2020 through July 31, 2034 (scheduled)
5-5-14, Kawaraguchi, Ebina, Kanagawa
Proprietary ownership
9,638m2
Quasi-industrial district
60%
200%
Proprietary ownership
14,645.40m2
March 18, 1992
Warehouse
Steel-framed reinforced concrete structure /4-story building
8.5%
4,950 million yen

Structure / No. of Stories
Earthquake PML
Anticipated Acquisition Price5

Appraisal

Appraisal Value
Base Date for Appraisal
Appraiser

5,070 million yen
May 1, 2024
Tanizawa Sogo Appraisal Co., Ltd.
Please refer to “10. Summary of Appraisal Report”
below.
None
Kenedix Property Design, Inc.(scheduled)

OutlineCollateral
Master Lease Company
Type of Master lease
Property Management Company
Details of Tenant
Number of End Tenants
1
Total Leasable Area
15,121.74m2
Total Leased Area
15,121.74m2
Occupancy Rate
100.0%
Monthly Rent and Common Area
Not disclosed (Note)
Charge (excluding consumption tax)
Security and Guarantee Deposits
Not disclosed (Note)
KDXR has agreed with the seller that the seller will be responsible for and bear the cost of
Remarks correcting the equipment that is in violation of the Fire Service Act and require correction insome parts of the building.
Other(Note) Not disclosed as the tenant’s consent has not been obtained.
② remm roppongi building (30% of quasi co-ownership interest) (additional interest)
Property Nameremm roppongi building
Trust beneficiary interest in real estate
Type of Specified Asset(30% of quasi co-ownership interest) (Note 1)
Trustee
Mitsubishi UFJ Trust and Banking Corporation
Trust Period
July 3, 2018 through November 30, 2043
Location
7-14-4, Roppongi, Minato-ku, Tokyo
Proprietary ownership and land leasehold interest
Form of Ownership(Note 2)
Land

1,622.17 m2 (Note 3)
Commercial area
80%
700% / 500%
a. Compartmentalized ownership (Note 4)
1st basement floor, parts of the 1st and 2nd floor, 3rd
floor, 4th floor, 6th to 21st floor; retail stores, hotel,
warehouse, parking area
Co-ownership interest of compartmentalized
ownership
5th floor; hotel (25.63%)
b. Proprietary ownership (Note 4)
a. 13,676.07 m2 (Note 4) (Note 5)b. 66.69 m2 (Note 4)
February 14, 2017
a. Retail stores, Hotel, Warehouse, Parking area (Note 4)b. Parking area (Note 4)
a. Steel-framed reinforced concrete structure,
Reinforced concrete structure / 21-story building with
1 basement floor and flat roof (Note 4)b. S-structure / 2-story, flat roof (Note 4)
1.3%
5,940 million yen
6,030 million yen
May 1, 2024
Daiwa Real Estate Appraisal Co., Ltd.
Please refer to “10. Summary of Appraisal Report”
below.
None

Land Area
ZoningBuilding Coverage Ratio
Floor-area Ratio

Form of Ownership

Building

Gross Floor Area
Date Constructed
Use

Structure / No. of stories
Earthquake PML
Anticipated Acquisition PriceAppraisal Value
Base Date for Appraisal
Appraisal
Appraiser
OutlineCollateral6

Master Lessee Company
Type of Master Lease
Property Management Company
Hankyu Hanshin Building Management Co.,Ltd.
Details of Tenant
Number of End Tenants
4
Total Leasable Area
12,329.12 m2 (Note 6)
Total Leased Area
12,329.12 m2 (Note 6)
Total Leasable Units / Number of4
Rooms / Retails StoresOccupancy Rate
100.0%
Monthly Rent and Common Area
ChargeNot disclosed (Note 7)(excluding consumption tax)
Security and Guarantee Deposits
Not disclosed (Note 7)
・The building is constructed utilizing the Joint Development Building Design System, whichallows for the utilization of surplus floor area ratio from adjacent properties. The subject
property and the adjacent property are considered as a single unit of land. As a result, a servitude
has been established on the adjacent land, designating the subject property as the dominant land
and the adjacent land as the servient land, prohibiting the construction of buildings on theservient land that exceed a total floor area of 730 m2.
・Regarding the shared portions of the building with other co-owners, the trustee has agreed
with the other co-owners that, when the trustee intends to transfer or otherwise dispose of their
Remarks
shared ownership interest, the other co-owners have the right to preferentially offer to purchaseit.
・Investment Corporation will enter into a trust beneficiary quasi co-ownership agreement withthe seller for the acquisition of quasi-co-ownership interest (30% quasi-co-ownership interest)in the subject property.
・In the trust beneficiary quasi co-ownership agreement, provisions are made regarding thedecision-making process for matters concerning the subject property, as well as a duty to notify
other co-owners on a preferential basis when a co-owner intends to transfer their quasi-coownership interest.
Note 1: KDXR will acquire additional quasi-co-ownership interest (30% trust beneficiary
quasi-co-ownership interest) of the trust beneficiary interest in the Property. KDXR has
acquired 20% trust beneficiary quasi-co-ownership interest as of November 1,
2023.Therefore, KDXR will own 50% trust beneficiary quasi-co-ownership interest
after the Acquisition.
Note 2: The outline of the leased portion of the subject land is as follows.
The type of leasehold right: Ordinary land leasehold
Not disclosed for lease term, rent and rent revision, and security and guarantee
deposits as the tenant’s consent has not been obtained.
Note 3: The provided information represents the total land area of the property. The
ownership status of the property in question is as follows.
Othera. 908.95 m2: The land is owned by a trustee.
b. 611.57 m2: The land is leased by a trustee.
c. 101.65 m2: The other unit owners own this building.
Note 4: a. refers to Main building, b. refers to parking, respectively.
Note 5: Total building area for the whole building of the Main building is shown. Concerning
the Property, the entire building, including the compartments of the Property, hascompartments (shop portions on the first and second floor) owned by a domestic
general business corporation. In addition, the fifth floor is co-owned with suchcorporation.
Note 6: Total building area for the whole building of the Property is shown.
Note 7: Not disclosed as the tenant’s consent has not been obtained.
③ Shin-Osaka Esaka Tokyu REI Hotel
Property Name
Type of Specified Asset
Trustee
Trust Period
Location
Land
Form of Ownership

Shin-Osaka Esaka Tokyu REI Hotel
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
March 31, 2015 through July 31, 2034
9-40 Toyotsu-cho, Suita, Osaka
Ownership (right of site) (approximately 37.6%)
7

5,830.66 m2 (Note 1)
Commercial area
80%600%
Sectional Ownership (100%)
42,681.56m2 (Note 1)
September 14, 1983
Inn, warehouse, machine room, Retail stores, Parking
area (Note 1)
Steel-framed reinforced concrete structure, Reinforced
concrete structure, Steel-framed structure / 16-story
building with 2 basement floors and flat roof (Note 1)
1.7%
5,100 million yen
5,360 million yen
May 1, 2024
Japan Real Estate Institute
Please refer to “10. Summary of Appraisal Report”
below.
None
ITOCHU Urban Community Ltd.

Land Area
ZoningBuilding Coverage Ratio
Floor-area Ratio
Form of Ownership
Gross Floor Area
Date Constructed
Building

Use
Structure / No. of Stories

Earthquake PML
Anticipated Acquisition PriceAppraisal Value
Base Date for Appraisal
Appraisal
Appraiser
OutlineCollateral
Master Lessee Company
Type of Master Lease
Property Management Company
Details of Tenant
Number of End Tenants
1
TenantTokyu Hotels Co., Ltd.
Contract Format
Fixed term building lease agreement
Contract Period
April 1, 2023 through March 31, 2028
Rent Revisions
Not disclosed (Note 2)
Contract Renewal
Not disclosed (Note 2)
Mid-Term Cancellation
Not disclosed (Note 2)
Total Leasable Area
14,455.85m2
Total Leased Area
14,455.85 m2
Number of Rooms / Retails Stores
363 rooms
Occupancy Rate
100.0%
Monthly Rent and Common Area
Not disclosed (Note 2)
Charge (excluding consumption
Rent structure: variable rents (sales-linked)
tax)
Security and Guarantee Deposits
Not disclosed (Note 2)
・The building is a compartmentalized ownership building, and the property's management
rules stipulate restrictions on the use of the property, and also stipulate that when a co-ownertransfers compartmentalized ownership or when a beneficiary of a trust whose main trust
asset is the exclusive use portion of the building transfers trust beneficiary rights, thecompartmentalized-owners or the beneficiary of a trust whose main trust asset is the
Remarks
exclusive use portion of the building shall have priority over other co-owners or other trust
beneficiaries. The trust beneficiaries of the trust whose main trust asset is the exclusive use
area of the building have priority in transferring their trust beneficiary rights.
・KDXR has been agreed with the seller that the seller will be responsible for and bear the costof correcting the equipment that is in violation of the Fire Service Act and require correction
in some parts of the building.
(Note 1) The entire land and building of the Property is shown.
Other(Note 2) Not disclosed as the tenant’s consent has not been obtained.
④ Irise Nerima Hikarigaoka
Property Name
Type of Specified Asset
Trustee
Trust Period
Location
Land
Form of Ownership

Irise Nerima Hikarigaoka
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
December 22, 2023 through July 31, 2034
1-14-10, Doshida, Nerima-ku, Tokyo
Proprietary ownership8Building

1,980.82m2
Category 1 low-rise exclusive residential district
50%
100%
Proprietary ownership
2,464.51m2
December 15, 2022
Nursing home for the elderly
Reinforced concrete structure / 3-story building
above ground
5.5%
1,351 million yen
1,500 million yen
May 1, 2024
Tanizawa Sogo Appraisal Co., Ltd.
Please refer to “10. Summary of Appraisal Report”
below.
None
HASEKO LIVENET, Inc.

Land Area
ZoningBuilding Coverage Ratio
Floor-area Ratio
Form of Ownership
Gross Floor Area
Date Constructed
Use
Structure / No. of Stories

Earthquake PML
Anticipated Acquisition PriceAppraisal Value
Base date for Appraisal
Appraisal
Appraiser
OutlineCollateral
Master Lessee Company
Type of Master Lease
Propoerty Management Company
Detail of Tenant
1
Number of End Tenants
2,464.51m2
Total Leasable Area
2,464.51m2
Total Leased Area
Total Leasable Units / Number of Rooms /61 units
Retails Stores
100.0%
Occupancy Rate
Monthly Rent and Common Area Charge
Not disclosed (Note)(excluding consumption tax)
Not disclosed (Note)
Security and Guarantee Deposits
Remarks
None
Other(Note) Not disclosed as the tenant’s consent has not been obtained.
Contract format：Regular lease contract
Contract period： January 13, 2023 through January 12, 2053
Rent revisions：
In principle, rent shall not be revised for 10 years. However, rents may berevised after 10 years from the delivery date of the Property upon mutual
agreement between the lessor and lessee when there are changes in taxes andpublic dues, the building price and other economic conditions, etc.
Contract renewal：
In the case that neither the lessor nor the lessee expresses any
written intention at least 12 months prior to the expiration of theOverview oflease term, the lease term shall be continued for another 5
contract withyears under the same conditions. The same shall apply thereafter.
tenantMid-term cancellation：
The lessee may not cancel this contract before the expiration of the nocancellation period which is from January 13, 2023 to January 12, 2038. If
there is an unavoidable reason, the contract can be terminated by paying the rent
equivalent to the rent from the day after the termination date until the mid-term
termination prohibition period as a penalty fee. In addition, the lessee may
terminate this contract before the expiration of the no-cancellation period bygiving written notice of the desired termination date at least 12 months prior to
the termination date and paying an amount equivalent to six months' monthly
rent after the expiration of the no-cancellation period.
Overview of Operator and Facility(as of the end of April, 2024)
Operator

HITOWA Care Service
Co., Ltd.
9

Opening Date

March 1, 2023

Private senior home(with nursing care)

Number of Rooms (room)

61

Condition of Rights for
Residence

Rights to use

Resident Capacity (people)

61

Main Room Area Range (m2)

18.27 - 22.33

Type of Facility

Entering Requirement
Care required
Average Nursing Care Level of
2.47
Residents
Service Fee Payment Method
Monthly Fee Basis

Number of Resident(people)Occupancy Rate (%)
Average Age of Residents(years old)

58
95.1
89.7

One-time Entrance
Fee Basis 1

One-time Entrance Fee
Basis 2

One-time Entrance Fee
(yen)

-

5,178,000

2,700,000

Monthly Service Fee(yen)

226,300

173,800

173,800

Staff at Night-time(number of staff
members at minimum)

1 or more carestaff members((Excluding thosetaking a break) 0
members)

Staff Engaged in Nursing Care

More than 3.0：1

Nerima General Hospital
Home Clinic Enishi
Cooperating Dental Institutions Mishima Dental Clinic

Cooperating Medical Institutions(2) Outline of Property to be disposed of① KDX Nihonbashi 313 Building
Property Name
Type of Specified Asset
Trustee
Trust Period
Location
Form of OwnershipLand Area
Land
ZoningBuilding Coverage Ratio
Floor-area Ratio
Form of Ownership
Gross floor area
Date constructed
Building
Use

KDX Nihonbashi 313 Building
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
November 30, 2001 through August 1, 2025
3-13-5 Nihonbashi, Chuo-ku, Tokyo
Proprietary ownership
1,047.72m2
Commercial area
80%
800%
Proprietary ownership
8,613.09m2
April 16, 1974 (Note)
Office building
Steel-framed reinforced concrete structure / 9-story
building with 2 basement floors and flat roof
6.8%
5,940 million yen
7,090 million yen
April 30, 2024
Daiwa Real Estate Appraisal Co. Ltd.
Please refer to “10. Summary of Appraisal Report”
below.
None
KDXR-

Structure / No. of stories
Earthquake PML
Anticipated Acquisition PriceAppraisal Value
Base Date for Appraisal
Appraisal
Appraiser
OutlineCollateral
Master Lessee Company
Type of Master Lease
Property Management Company after theAcquisition
Details of Tenant
Number of End Tenants
Total Leasable Area

Kenedix Property Design, Inc.
16
5,732.83 m2
10Remarks
Other

Total Leased Area
5,732.83 m2
Occupancy Rate
100.0%
Monthly Rent and Common Area
Charge30,485 thousand yen(excluding consumption tax)
Security and Guarantee Deposits
279,304 thousand yen
None(Note) Although the building was designed according to the old earthquake-proof standard,
the results of the seismic diagnosis indicated that it had the same seismic resistance asbuildings based on the new earthquake-proof standard.

4．Overview of Seller and Buyer(1) Overview of Seller① KDX Logistics Ebina Chuo
Company Name
Location

G.K. KRF93
2-1-6 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Ippan Shadan Hojin KRF93
Title and Name of Representative
Office administrator: Masanori Nakatsu
1. Acquisition, holding, disposal, leasing and management of realestateDescription of Business
2. Acquisition, holding and disposal of trust beneficiary interests inreal estate
3. All business incidental to the above
Amount of Capital
1 million yen
Date of Incorporation
August 24, 2020
Net Assets
Not disclosed as the seller’s consent has not been obtained.
Total Assets
Not disclosed as the seller’s consent has not been obtained.
Major Shareholder and Ratio
Please refer to “Capital Relationship” below.
Relationship between Seller and KDXR/the Asset Management Company
Kenedix, Inc.(“KDX”), which is the 100% parent company of theAsset Management Company and a parent company, etc. under the
Financial Instruments and Exchange Act is the 100% parent company
of Kenedix Investment Partners, Inc. (“KIP”), which contribute to a
Capital Relationshipgeneral incorporated association fund that holds all of the seller’s
equity interest. Also, KDX owns 70.0% and Kenedix Property
Design, Inc. (“KPD”), wholly owned subsidiary of KDX, owns 30.0%of the silent partnership equity interest.
There is no special personnel relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is no
Personnel Relationshipspecial personnel relationship between any related-parties or
associated companies of KDXR or the Asset Management Company
and any related-parties or associated companies of the seller.
There is no special business relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is nobusiness personnel relationship between any related-parties or
Business Relationshipassociated companies of KDXR or the Asset Management Company
and any related-parties or associated companies of the seller. The
asset management agreement has been concluded between KIP and
the seller.
The seller is a related-party, etc. as defined in the Investment Trust
Law and a related-party as defined in the Related-Party Transaction
Related Party Relationships
Rules of Listed REIT Department of the Asset Management
Company.

② remm roppongi building (30% quasi co-ownership interest)
Company Name
G.K. RRB
Mentor Capital Tax Corporation 1-2-9 Nishi-shinbashi, Minato-ku,
LocationTokyo
Representative: Ippan Shadan Hojin RRB
Title and Name of Representative
Office administrator: Shinya Takenouji

111. Acquisition, holding, disposal, leasing and management of realestate2. Acquisition, holding, and disposition of trust beneficiary interest
Description of Businessin real estate
3. Any and all other businesses related to the businesses listed in thepreceding items
1million yen
Amount of Capital
May 8, 2018
Date of Incorporation
Net Assets
Not disclosed as the seller’s consent has not been obtained.
Total Assets
Not disclosed as the seller’s consent has not been obtained.
Major Shareholder and Ratio
Please refer to “Capital Relationship” below.
Relationship between Seller and KDXR/the Asset Management Company
A general incorporated association to which Kenedix, Inc., theparent company of the Asset Management Company under the
Financial Instruments and Exchange Act, contributes funds holds all
Capital Relationshipshares in the company. In addition, concerning the silent partnership
equity interest that places the seller as the operator, Kenedix, Inc.
owns 100%.
There is no special personnel relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is no
Personnel Relationshipspecial personnel relationship between related parties or associatedcompanies of KDXR or the Asset Management Company and relatedparties or associated companies of the seller.
There is no special business relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is no
Business Relationshipbusiness personnel relationship between related parties or associatedcompanies of KDXR or the Asset Management Company and relatedparties or associated companies of the seller.
The seller is a related party as defined in the Investment Trust Law
Related Party Transaction
and a related party as defined in the Related-party Transaction Rulesof Listed REIT Department of the Asset Management Company.
③ Shin-Osaka Esaka Tokyu REI Hotel
Company Name
G.K. KHF8
Location
2-1-6 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Ippan Shadan Hojin KHF8
Title and Name of Representative
Office administrator: Masanori Nakatsu
1. Acquisition, holding, disposal, leasing and management of realestateDescription of Business
2. Acquisition, holding and disposal of trust beneficiary interests inreal estate
3. All business incidental to the above
Amount of Capital
1 million yen
Date of Incorporation
January 5, 2022
Net Assets
Not disclosed as the seller’s consent has not been obtained.
Total Assets
Not disclosed as the seller’s consent has not been obtained.
Major Shareholder and Ratio
Please refer to “Capital Relationship” below.
Relationship between Seller and KDXR/the Asset Management Company
KDX, which is the 100% parent company of the Asset Management
Company and a parent company, etc. under the Financial Instruments
and Exchange Act is the 100% parent company of KIP, which
contribute to a general incorporated association fund that holds all ofCapital Relationshipthe seller’s equity interest. Also, KDX owns 69.11% and SMFL Mirai
Partners Corporation, the parent company holding 70% of KDX'sissued shares, owns 30.89% of the silent partnership equity interest inwhich the seller is the operator.
There is no special personnel relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is no
Personnel Relationshipspecial personnel relationship between any related-parties or
associated companies of KDXR or the Asset Management Company
and any related-parties or associated companies of the seller.
12

Business Relationship

Related Party Relationships

There is no special business relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is nobusiness personnel relationship between any related-parties or
associated companies of KDXR or the Asset Management Company
and any related-parties or associated companies of the seller.
The seller is a related-party, etc. as defined in the Investment Trust
Law and a related-party as defined in the Related-Party Transaction
Rules of Listed REIT Department of the Asset Management
Company.

④ Irise Nerima Hikarigaoka
Company Name
Location

G.K. KRF106
2-1-6, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Ippan Shadan Hojin KRF104
Title and Name of Representative
Office administrator: Masanori Nakatsu
1. Acquisition, holding, disposal, leasing and management of realestateDescription of Business
2. Acquisition, holding and disposal of trust beneficiary interests inreal estate
3. All business incidental to the above
Amount of Capital
1 million yen
Date of Incorporation
October 27, 2023
Net Assets
Not disclosed as the seller’s consent has not been obtained.
Total Assets
Not disclosed as the seller’s consent has not been obtained.
Major Shareholder and Ratio
Please refer to “Capital Relationship” below.
Relationship between Seller and KDXR/the Asset Management Company
KDX, which is the 100% parent company of the Asset Management
Company and a parent company, etc. under the Financial Instruments
and Exchange Act is the 100% parent company of KIP, which
Capital Relationshipcontribute to a general incorporated association fund that holds all of
the seller’s equity interest. In addition, concerning the silent
partnership equity interest that places the seller as the operator,
Kenedix, Inc. owns 100%.
There is no special personnel relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is no
Personnel Relationshipspecial personnel relationship between any related-parties or
associated companies of KDXR or the Asset Management Company
and any related-parties or associated companies of the seller.
There is no special business relationship between KDXR or the
Asset Management Company and the seller. Furthermore, there is no
Business Relationshipbusiness personnel relationship between any related-parties or
associated companies of KDXR or the Asset Management Company
and any related-parties or associated companies of the seller.
The seller is a related-party, etc. as defined in the Investment Trust
Law and a related-party as defined in the Related-Party Transaction
Related Party Relationships
Rules of Listed REIT Department of the Asset Management
Company.

(2) Overview of Buyer① KDX Nihonbashi 313 Building
Company Name
Location
Title and Name of Representative

Description of BusinessAmount of Capital
Date of Incorporation

G.K. KIRF1
2-1-6, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Ippan Shadan Hojin KLF3
Office administrator: Masanori Nakatsu
1. Acquisition, holding, disposal, leasing and management of realestate2. Acquisition, holding and disposal of trust beneficiary interests inreal estate
3. All business incidental to the above
1 million yen
February 22, 2024
13

Net Assets
Not disclosed as the buyer’s consent has not been obtained.
Total Assets
Not disclosed as the buyer’s consent has not been obtained.
Major Shareholder and Ratio
Please refer to “Capital Relationship” below.
Relationship between Buyer and KDXR/the Asset Management Company
KDX, which is the 100% parent company of the Asset Management
Company and a parent company, etc. under the Financial
Instruments and Exchange Act is the 100% parent company of KIP,
Capital Relationshipwhich contribute to a general incorporated association fund that
holds all of the buyer’s equity interest.Also, KDX, the operator,
owns portion of the silent partnership equity interest.
There is no special personnel relationship between KDXR or the
Asset Management Company and the buyer. Furthermore, there isno special personnel relationship between any related-parties or
Personnel Relationshipassociated companies of KDXR or the Asset Management
Company and any related-parties or associated companies of thebuyer.
There is no special business relationship between KDXR or theBusiness Relationship
Asset Management Company and the buyer. The asset management
service is scheduled to be entrusted from the buyer to KIP.
The buyer is a related-party as defined in the Related-Party
Related Party Relationships
Transaction Rules of Listed REIT Department of the AssetManagement Company.
5． Property Acquirer and Previous Owner’s Profile(1) KDX Logistics Ebina Chuo
Current Owner/ Trust Benericiary
Company Name

G.K. KRF93

Relationship with Related Party

The related-party as defined in
Related-Party Transaction Rulesof the Listed REIT Department of
the Asset Management Company
and a related-party, etc. as defined
under the Investment Trust Act
Acquired for the purpose ofinvestment management
September 29, 2020
Omitted as the property has been
owned by current trust beneficiaryfor more than a year

Acquisition Background /Purpose
Acquisition Date
Acquisition PricePrevious Owner/
Trust Beneficiary
Other than those with a special
interest--(2) remm roppongi building (30% quasi co-ownership interest)
Current Owner/
Trust Benericiary

Previous Owner/
Trust Beneficiary

Company Name

G.K. RRB

G.K. KRF22

Relationship with Related Party

The related-party as
defined in Related-Party
Transaction Rules of the
Listed REIT Departmentof the Asset Management
Company and a relatedparty, etc. as defined
under the Investment
Trust ActThe related-party as
defined in Related-Party
Transaction Rules of the
Listed REIT Departmentof the Asset Management
Company and a relatedparty, etc. as defined
under the Investment
Trust Act

14

Ex-Previous
Owner /
Trust
Beneficiary
Other thanthose with a
specialinterest-Acquisition Background /Purpose

Acquired for the purposeof development-(Land) November 29,
2007(Building) February 14,2017 (Note)
Acquisition Price
Omitted as the property
Omitted as the property
has been owned byhas been owned bycurrent trust beneficiaryprevious trust
for more than a year
beneficiary for morethan a year
(Note) The acquisition date of the building is based on its completion date.

-

Acquisition Date

Acquired for the purposeof invsetment andmanagement
July 3, 2018(3) Shin-Osaka Esaka Tokyu REI Hotel
Current Owner/
Trust Benericiary

Company Name

G.K. KHF8

Relationshipwith Related
Party

The related-party as
defined in RelatedParty Transaction
Rules of the Listed
REIT Departmentof the AssetManagement
Company and a
related-party, etc. as
defined under theInvestment Trust
Act
Acquired for the
purpose ofinvestment andmanagement
March 30, 2022

Acquisition
Background/Purpose
Acquisition
Date
Acquisition
Price

Omitted as theproperty has been
owned by current
trust beneficiary formore than a year

Previous Owner/
Trust Beneficiary

Kenedix Private
Investment
Corporation
The related-party as
defined in the
Related-Party
Transaction Rulesof Listed REIT
Department of theAsset Management
Company.

Ex-Previous
Owner/ Trust
Beneficiary
G.K. KRF56

Acquired for the
purpose ofinvestment andmanagement
July 12, 2017

The related-party as
defined in RelatedParty Transaction
Rules of the Listed
REIT Departmentof the AssetManagement
Company and a
related-party, etc. as
defined under theInvestment Trust
Act
Acquired for the
purpose ofinvestment andmanagement
March 31, 2015

Omitted as theproperty has been
owned by previous
trust beneficiary formore than a year

Omitted as theproperty has been
owned by previous
trust beneficiary formore than a year-

Ex-Previous Owner
before Ex-Previous
Owner / Trust
Beneficiary
Other than thosewith a special
interest---(4) Irise Nerima Hikarigaoka
Current owner/ Trust Benericiary
Company name

G.K. KRF106

Relationship with Related Party

The related-party as defined in
Related-Party Transaction Rulesof the Listed REIT Department of
the Asset Management Company
and a related-party, etc. as defined
under the Investment Trust Act
Acquired for the purpose ofinvestment and management
December 12, 2023
1,210,000,000 yen

Acquisition Background /Purpose
Acquisition Date
Acquisition Price

15

Previous Owner/
Trust Beneficiary
Other than those with a special
interest--

6．Details of Brokerage
Not applicable
7．Related Party Transaction
As described above, the Acquisition is considered as a related-party transaction as defined in the Investment
Trust Law and a related-party as defined in the Related-Party Transaction Rules of Listed REIT Department of
the Asset Management Company, and the Disposition is considered as a related-party as defined in the RelatedParty Transaction Rules of Listed REIT Department of the Asset Management Company. Therefore, in
accordance with the above regulations and other internal rules, the Asset Management Company obtained
resolutions of approval for the Transactions at the Investment Committee meeting held on June 18, 2024, after
deliberation and approval at the Compliance Committee meeting held on July 17, 2024. Furthermore, for Irise
Nerima Hikarigaoka, a resolution was approved at the Board of Directors Meeting of KDXR held on June 18,2024, and obtained the consent of the Executive Director of KDXR based on the above resolution of the Boardof Directors Meeting of KDXR. The Asset Management Company issues documents to KDXR in accordancewith the provisions of the Investment Trust Act regarding the Transactions with the related party.
Appointment of a Property Management Company
KDXR plans to execute a property management agreement for KDX Logistics Ebina Chuo with KPD on thescheduled date of acquisition. Fees relating to property management remain at the same level and rate asproperties owned by KDXR.
8．Schedule of the Transactions
Acquisition Decision Date/ Disposition Decision Date
Contract Date
Payment Date/ Disposition Date
KDX Nihonbashi 313 Building
Payment Date/ Acquisition Date
KDX Logistics Ebina Chuoremm roppongi building (30% quasi co-ownership interest)
Shin-Osaka Esaka Tokyu REI Hotel
Irise Nerima Hikarigaoka

June 18, 2024
June 28, 2024 (scheduled)

July 1, 2024 (scheduled)

9．Forecast
The difference between anticipated disposition price and book value is 1,551 million yen and gain on sale will berecorded. Moreover, the portion of the gain on sale will be retained internally as reserve for reduction entry. For
details of the operating forecasts for the fiscal periods ending October 31, 2024 (May 1, 2024 to October 31,2024) and April 30, 2025 (November 1, 2024 to April 30, 2025), please refer to the financial report “FINANCIALREPORT FOR THE FISCAL PERIOD ENDED April 30, 2024 (REIT)” dated today.

1610．Summary of Appraisal Report
Property Name

KDX Logistics Ebina Chuo

Appraisal Value
Appraiser
Date of Appraisal

5,070,000,000 yen
Tanizawa Sogo Appraisal Co., Ltd.
May 1, 2024
Unit: Yen

Item

Breakdown

Income Capitalization Approach Value

5,070,000,000

Value based on Direct Capitalization
Method5,170,000,000(1) Gross Operating Revenue

Not disclosed

General Operating Revenue

Not disclosed

Vacancy-Related Loss

Not disclosed

Basis
Calculated with the value based on the DCF method,with reference to the value based on direct
capitalization method
Calculated by dividing the standardized NCF
that is expected to remain stable over the
medium term by the cap rate(2) Operating Expenses

Not disclosed

Maintenance Fees0

Not applicable due to tenant burden

Utility Expenses

0

Not applicable due to tenant burden

Repairs

Not disclosed

PM Fees

3,000,000

Tenant Marketing Expenses

0Real Estate Taxes

Not disclosed

Insurance Expenses

Not disclosed

Other Property-RelatedExpenses(3) Net Operating Income(NOI= (1)-(2))

Not disclosed
202,089,150(4) One-Time Gain

0(5) Capital Expenditure

15,960,000(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

186,129,150(7) Cap Rate

3.6%

Not applicable as there is no leasehold deposit
Assessed considering CM fees in the annual
assessment based on medium-to long-term repair andrenewal costs in the Engineering Report

Assessed by comprehensively considering theproperty’s location, building conditions, and contract
conditions

5,020,000,000

Value based on DCF Method

Years 1-4 3.5%
Years 5-11 3.7%

Discount Rate
Terminal Cap Rate

3.8%

Value based on Cost Method

Assessed by comparing the comparable sales data ofsimilar properties and by adding the individuality ofthe property to the yield of financial assets
Assessed by considering future forecast uncertainty inaddition to the cap rate

4,930,000,000

Ratio of Land

82.5%

Ratio of Building

17.5%

The appraiser’s points to consider upon
appraisal other than the above

Assessed based on scheduled PM contract amounts,
verifying PM fee ratios of similar properties.
Assuming continued occupancy by the current lessee,
costs with tenant vacating are not applicable as they
are considered in the cap rate

None

(Note) Figures used in the direct capitalization method (1) and (2) include information for which KDXR has not
obtained consent for disclosure from the lessee or which enables one to calculate such information. If such
figures are disclosed, due to loss of trust relationship between the lessee and KDXR, claims for damages orrequest for termination may be brought against KDXR for breach of confidentiality obligation, or it may
17become difficult to renew the agreement over a long term, causing disadvantages and in turn causing damage
to the investors’ interests. Therefore, information and figures are not disclosed in (1) and (2) above except
where it is determined that such disclosure causes no harm.

18Property Nameremm roppongi building (30% of quasi co-ownership interest)

Appraisal Value
Appraiser
Date of Appraisal

6,030,000,000 yen (Note 1)
Daiwa Real Estate Appraisal Co., Ltd.
May 1, 2024
Unit: Yen

Item

Breakdown

Income Capitalization Approach Value

6,030,000,000

Value based on Direct Capitalization
Method6,190,000,000(1) Gross Operating Revenue

Not disclosed (Note 2)

General Operating Revenue

Not disclosed (Note 2)

Vacancy-Related Loss

Not disclosed (Note 2)(2) Operating Expenses

352,204,443

Maintenance Fees

76,638,700

Utility Expenses

88,175,748

Repairs

4,819,250

PM Fees

1,118,400

Tenant Marketing Expenses

965,919

Real Estate Taxes

84,137,800

Insurance Expenses

2,595,800

Other Property-RelatedExpenses

93,752,826(3) Net Operating Income(NOI= (1)-(2))

706,516,444(4) One-Time Gain

8,698,523(5) Capital Expenditure

14,209,485(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

701,005,482(7) Cap Rate
Value based on DCF Method
Discount Rate

Basis
Calculated with the value based on the DCF method,with reference to the value based on direct
capitalization method
Calculated by dividing the standardized NCF
that is expected to remain stable over the
medium term by the cap rate

3.4%

Assessed based on the appropriate rent level, etc.
recognized as stable over the medium to long term
Assessed based on medium-to long-term stable
occupancy rate levels

Based on the level of similar properties, thecurrent contract amount is judged to beappropriate and recorded.
The amount assessed based on the actual amount isverified and recorded based on the level of similar realestate.
Assessed and recorded based on ER 12-year averaged
repair costs

Based on the level of similar properties, thecurrent contract amount is judged to beappropriate and recorded.
Among the rental rooms, the annual averageamount assessed based on the assumption
turnover period of the lessee is recorded withreference to the contractual terms and conditionsof the lease of similar properties, etc. for thestores.
Assessed and recorded based on the actual
amount in fiscal 2023
Recorded based on the estimated amountobtained from the client with reference to theinsurance premium rates of similar properties
Land rent is assessed based on the terms of thecontract, while the land rent is recorded based on
the contract amount.

Investment profit is assessed with an investment yieldof 1.0% (taking into account the deposit for the leased
land portion)
Recorded based on ER's 12-year averaged renewal
cost, considering CM fees

Assessed by comprehensively considering thelocation, building conditions, and other conditions of
the subject property

5,960,000,000
3.2%

19

Assessed by comprehensively considering theindividuality of the subject property with reference toinvestment yields, etc. in Transactions of similar
properties

Terminal Cap Rate

Value based on Cost Method

3.6%

6,430,000,000

Ratio of Land

89.1%

Ratio of Building

10.9%

The appraiser’s points to consider upon
appraisal other than the above

Assessed based on a comprehensive consideration offactors such as future trends in investment yields, risksof the subject property as an investment target, general
forecasts of future economic growth rates, and trends
in real estate prices and rents, with reference totransaction yields, etc. related to similar properties

Adopted income approach value from the judgment that the income
approach value is more persuasive because it is the price calculated
according to price formation process from the aspect of earnings, while
using the value calculated based on the cost approach as a reference.

(Note 1) Regarding appraisal value, capitalized value, value by direct capitalization method, value by DCF method,and value by cumulative value, figures are corresponding to the ratio of 30% quasi co-ownership interest.
For other figures, the figures for the entire properties and buildings are presented, respectively. The appraisal
value of the entire land and building of this property is 20,100,000,000 yen.
(Note 2) Figures used in the direct capitalization method (1) include information for which KDXR has not obtained
consent for disclosure from the lessee or which enables one to calculate such information. If such figures aredisclosed, due to loss of trust relationship between the lessee and KDXR, claims for damages or request for
termination may be brought against KDXR for breach of confidentiality obligation, or it may become
difficult to renew the agreement over a long term, causing disadvantages and in turn causing damage to theinvestors’ interests. Therefore, information and figures are not disclosed in (1) above except where it isdetermined that such disclosure causes no harm.

20

Property Name

Shin-Osaka Esaka Tokyu REI Hotel

Appraisal Value
Appraiser
Date of Appraisal

5,360,000,000 yen (Note 1)
Japan Real Estate InstituteMay 1, 2024
Unit: Yen

Item
Income Capitalization Approach Value
Value based on Direct Capitalization
Method(1) Gross Operating Revenue

Breakdown
5,290,000,000
5,310,000,000
Not disclosed (Note 2)

General Operating Revenue

Not disclosed (Note 2)

Vacancy-Related Loss

Not disclosed (Note 2)

Basis
Estimated using the capitalized value based on the
direct capitalization method and the capitalized value
based on DCF method in a comparable manner
Assessed by capitalizing medium-to long-term stablenet income at a capitalization rate
Assessed taking into account the hotel's operating
status, etc.

(2) Operating Expenses

Not disclosed (Note 2)

Maintenance Fees

Not disclosed (Note 2)

Utility Expenses

Not disclosed (Note 2)

Repairs

Not disclosed (Note 2)

PM Fees

Not disclosed (Note 2)

Tenant Marketing Expenses

Not disclosed (Note2)

Not record

Real Estate Taxes

Not disclosed (Note 2)

Insurance Expenses

Not disclosed (Note 2)

Other Property-RelatedExpenses(3) Net Operating Income(NOI= (1)-(2))

Not disclosed (Note 2)

Assessed based on data related to taxes and publicdues
Recorded with reference to premium rates for similar
properties, etc.
Recorded road occupancy fees and other expenses asother expenses(4) One-Time Gain

Not disclosed (Note 2)

284,831,000(5) Capital Expenditure

29,727,000(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

255,104,000(7) Cap Rate
Value based on DCF Method

4.8%

4.5%

Terminal Cap Rate

4.9%

Ratio of Land

Assuming that the funds are set aside on an averagebasis each fiscal year, the assessment takes into
account the level of capital expenditures and the ageof buildings in similar properties.

Assessed by comprehensively considering thelocation, building conditions, and other conditions of
the subject property

5,270,000,000

Discount Rate

Value based on Cost Method

Assessed with reference to the maintenance andmanagement expenses based on the contract terms, thecost level of similar properties, etc.
Recorded based on the actual amount for the previous
fiscal year
Assessed taking into consideration such factors as
actual amounts in prior years, the level of costs for
similar properties and the annual average amount of
repair and renewal expenses in the engineering report
Assessed with reference to the amount ofcompensation based on the contractual terms, thecompensation rates of similar properties, etc.

Assessed by comprehensively considering theindividuality of the subject property with reference toinvestment yields, etc. in Transactions of similar
properties
Assessed based on a comprehensive consideration offactors such as future trends in investment yields, risksof the subject property as an investment target, general
forecasts of future economic growth rates, and trends
in real estate prices and rents, with reference totransaction yields, etc. related to similar properties

5,560,000,000
87.7%

21

An entire buildingRatio of Building

12.3%

An entire building

The appraiser’s points to consider upon
None
appraisal other than the above(Note 1) The appraised value represents the value of the compartmentalized ownership of 37.6% of the entire property that
KDXR intends to acquire. The appraisal value is a limited value that takes into account an income value of
5,290,000,000 yen and an incremental value of 65,900,000 yen. The appraisal value of the entire property's land andbuilding after the Acquisition is 12,200,000,000 yen.
(Note 2) Information that has not been approved for disclosure by the lessee and information that can be calculated is included.
If such information is disclosed, there is a possibility that the interests of the investor will be impaired in the end, andthe disclosure of such information will not be disclosed, except for some matters that are judged not to be detrimental tothe disclosure, such as a claim for damages or a request for termination due to a breach of the obligation ofconfidentiality by KDXR or a difficulty in maintaining the contractual relationship of the re-contract, etc. in the long
term.

22

Property Name

Irise Nerima Hikarigaoka

Appraisal Value
Appraiser
Date of Appraisal

1,500,000,000 yen
Tanizawa Sogo Appraisal Co., Ltd.
May 1, 2024
Unit: Yen

Item
Income Capitalization Approach Value

Breakdown
1,500,000,000

Value based on Direct Capitalization
Method(1) Gross Operating Revenue

Not disclosed (Note)

General Operating Revenue

Not disclosed (Note)

Vacancy-Related Loss

Not disclosed (Note)

1,520,000,000(2) Operating Expenses

8,237,088

Maintenance Fees

0

Utility Expenses

0

Repairs

570,000

PM Fees

1,800,000

Tenant Marketing Expenses

Basis
Calculated using the capitalized value based on DCF
method and the capitalized value based on the direct
capitalization method.
Assessed by capitalizing medium-to long-term stablenet income at a capitalization rate

Assessed taking into account the cost level of similar
properties and the annual average amount of repair
and renewal expenses in the engineering report
Recorded based on the contract content

0
Assessed based on actual amount and similar cases

Real Estate Taxes

5,212,200

Insurance Expenses

194,240

Recorded based on insurance materials, etc.

460,648

Assessed with reference to the expense level of similar
properties, etc.

Other Property-RelatedExpenses(3) Net Operating Income(NOI= (1)-(2))(4) One-Time Gain

57,569,712
329,034(5) Capital Expenditure

1,710,000(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

56,188,746(7) Cap Rate
Value based on DCF Method
Discount Rate

Terminal Cap Rate
Value based on Cost Method

3.7%

Assessment of similar real estate by comparing withtransaction yields pertaining to Transactions

1,490,000,000
Years 1-9 3.6%
Years 10 3.7%
Years 11 3.8%
3.9%

Assessed by comprehensively considering theindividuality of the subject property with reference toinvestment yields, etc. in Transactions of similar
properties
Assessed based on capitalization rates and taking into
account future forecast uncertainty

1,620,000,000

Ratio of Land

67.5%

Ratio of Building

32.5%

The appraiser’s points to consider upon
appraisal other than the above

Assessed income from investments by using an
investment return of 1.0%.
Assessed taking into account the cost level of similar
properties and the annual average amount of repair
and renewal expenses in the engineering report

Adopted income approach value from the judgment that the income approachvalue is more persuasive because it is the price calculated according to priceformation process from the aspect of earnings, verifying by the value calculated
based on the cost approach as a reference.

23

(Note) The above-mentioned direct capitalization method prices (1) includes information for which the approval of disclosure
has not been obtained from the lessee and information for which such information can be calculated. Accordingly, if
such information is disclosed, KDXR receives claims for damages or cancellation of claims due to a breach ofconfidentiality obligations or receives claims for cancellation of such claims or makes it difficult to maintain thecontractual relationship of the re-contract, etc. on a long-term basis, which may ultimately impair the interests of theunitholders. Accordingly, the disclosure of such information is not disclosed, except for some matters that are judged to
be unimpaired.

24

Property NameKDX Nihonbashi 313 Building

Appraisal Value
Appraiser
Date of Appraisal

7,090,000,000 yen
Daiwa Real Estate Appraisal Co., Ltd.
April 30, 2024
Unit: Yen

Item
Income Capitalization Approach Value
Value based on Direct Capitalization
Method(1) Gross Operating Revenue
General Operating Revenue
Vacancy-Related Loss

Breakdown
7,090,000,000

7,350,000,000
396,577,918
413,684,916
17,106,998(2) Operating Expenses

119,736,052

Maintenance Fees

17,538,521

Utility Expenses

30,703,106

Repairs

8,242,667

PM Fees

7,358,434

Tenant Marketing Expenses

2,347,340

Real Estate Taxes

50,972,400

Insurance Expenses

373,584

Other Property-RelatedExpenses(3) Net Operating Income(NOI= (1)-(2))

2,200,000

2,268,101(5) Capital Expenditure

14,380,388(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

264,729,579

Value based on DCF Method

3.6%

Assessed based on the actual amount and verified
based on the level of similar properties
Assessed based on the actual amount and verified
based on the level of similar properties
Verification based on the level of repair costs for
similar properties and recording the average annual
amount of repair costs in the Engineering Report
Assessment of standardized PM premium rates basedon PM rates for similar properties
Assessed considering assumption replacement andvacancy rates based on the level of tenant offering
expenses, etc. for similar properties
Assessed based on the actual amount for fiscal 2023
Assessed based on actual amount
Assessed and recorded with reference to past actual
amounts

Investment profit is assessed with an investment yieldof 1.0%
Verified by the renewal cost level of similar properties
and recorded by adding CM fees to the annualized
renewal cost in the engineering report

Assessed by comprehensively considering thelocation, building conditions, and other conditions of
the subject property

6,980,000,000

Discount Rate

3.4%

Terminal Cap Rate

3.8%

Value based on Cost Method

Assessed based on the appropriate rent level, etc.
recognized as stable over the medium to long term
Assessed based on medium-to long-term stable
occupancy rate levels

276,841,866(4) One-Time Gain

(7) Cap Rate

Basis
Calculated by using the capitalized value based on
DCF method as the standard and verified by thecapitalized value based on the direct capitalization
methodAssessed by capitalizing medium-to long-term stablenet income at a capitalization rate

7,990,000,000

25

Assessed by taking into consideration the comparison
with the discount rate in the transaction case of similar
real estate and the method for determining the yield offinancial assets by considering the individuality of thesubject property
Assessed based on a comprehensive consideration offactors such as future trends in investment yields, risksof the subject property as an investment target, general
forecasts of future economic growth rates, and trends
in real estate prices and rents, with reference totransaction yields, etc. related to similar properties

Ratio of Land

97.9%

Ratio of Building

2.1%

The appraiser’s points to consider upon
appraisal other than the above

Adopted income approach value from the judgment that the income
approach value is more persuasive because it is the price calculated
according to price formation process from the aspect of earnings, while
using the value calculated based on the cost approach as a reference.

26

＜Attached Materials＞
・Reference Material 1
・Reference Material 2

Photographs and Maps of the Properties to be Acquired
List of Property Portfolio of KDXR (After the Transactions)Website Address： https://www.kdx-reit.com/

27

Reference Material 1 Photographs and Maps of the Properties to be Acquired
1．KDX Logistics Ebina Chuo28

2．remm roppongi building (30% quasi co-ownership interest)29

3．Shin-Osaka Esaka Tokyu REI Hotel30

4．Irise Nerima Hikarigaoka

31

Reference Material 2 List of Property Portfolio of KDXR (After the Transactions)

Property Type
Office Buildings
Residential Properties
Retail Facilities
Logistics Facilities
HotelsHealthcare Facilities
Portfolio Total(Anticipated)
Acquisition Price(Millions of Yen)
429,996
320,374
287,421
26,262
48,64083,7681,196,462

Number of Properties
93
143
61
13
5
40
355

Investment Ratio (Note)
(%)
35.9
26.8
24.0
2.2
4.1
7.0
100.0

(Note) “Investment Ratio” indicates the ratio of (Anticipated) Acquisition Price of each asset type to Portfolio Total and isrounded to the first decimal place.

32