For Translation Purposes Only
March 31, 2015

For Immediate Release
Nomura Real Estate Master Fund, Inc.
Satoshi Yanagita, Executive Director(Securities Code: 3285)
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
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced
today that Nomura Real Estate Asset Management Co., Ltd. (“the Asset Management
Company”), the asset management company for the Fund, has determined the acquisition of realestate, as sated below.
1. Summary of the Asset to be Acquired
(1)
(2)
(3)
(4)

Type of asset: Trust beneficiary interest in mainly real estate
Property name: Kawaguchi Ryoke Logistics Center (Note 1)
Acquisition price (Scheduled): ¥10,790 million (Note 2)
Date of agreement (Scheduled): April 10, 2015 (date of agreement on purchase and sale ofbeneficial interest in real estate trust)(5) Date of acquisition (Scheduled): July 1, 2015 (date of delivery of beneficial interest in realestate trust)(6) Seller: Refer to “4. Seller Profile” below(7) Financing: Fund on hand and borrowings(Note 1) Although the current property name is “NIPPON EXPRESS CO., LTD. North Tokyo Distribution
Center”, the Fund plans to change the name to the one stated above at the earliest opportunity, after theacquisition.
(Note 2) Excluding property taxes, urban planning taxes, consumption taxes and local consumption taxes

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

-1-2. Grounds
Nomura Master Fund will acquire the Property be acquired in accordance with the Fund’s
policies as stipulated in its Articles of Incorporation. The seller of the Property is the operatorof the silent partnership in which Nomura Master Fund has made investment, and the Fund has
exercised, for the acquisition of the Property, the preferential negotiation right granted upon theacquisition of silent partnership equity interest. The Fund values the following factors.
(1) Location
・Kawaguchi City, where the Property is located, has convenient access to a wide area
toward central Tokyo and Tohoku as it is located within 20km from central Tokyo, hasfavorable approach to expressways as it is located approximately 2.3km from “KagaIC” and 3.0km from “Shikahamabashi IC” on the Metropolitan Expressway
Kawaguchi Route, and is in the immediate vicinity of National Route 122 andMetropolitan Route 318 (Kannana-dori).
・The Property is located in an industrial area and there is little concerns for issues suchas noise pollution and mechanical vibrations due to the location’s long history of
being a place where industrial facilities such as factories and logistics warehouses, etc.
have been concentrated. The Property is also capable of 24 hour operations. In
addition, it is a location appropriate for logistics facility management as it can expect
to secure sufficient employment as residential districts spread across the edge of theindustrial area and there is an abundance of bus routes.
(2) Property Features
・The Property has high specifications with capability for an efficient transfer of cargo
inside and outside and storage with 3 truck berths (2 on the 1st floor and 1 on the 2nd
floor) and vertical loading equipment (6 elevators and 2 vertical conveyor machines).
In addition, the Property has high-functioning facility specifications such as 5.5m ofeffective height under a lower beam and 1.5t/m2 of floor load.
・The Property has a facility specification that takes the employees’ working environment
into consideration such as onsite parking space, office space, resting room andchanging room, etc.

-2-

3. Property Summary
Property Name
Asset type
Trustee
Trust term
Registry
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 of Ownership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note 5)

Kawaguchi Ryoke Logistics Center
Trust beneficiary interest in mainly real estateMizuho Trust & Banking Co., Ltd.
From August 13, 2002 to October 31, 2023
5-2114-1 Ryoke, Kawaguchi City, Saitama
5-1-57 Ryoke, Kawaguchi City, Saitama
1.5km from Kawaguchi-Motogo Station on the Saitama Railway Line
2.3km from Kaga IC and 3.0km from Shikahamabashi IC on the
Metropolitan Expressway Kawaguchi Route
October 2003
Storage, office
S/SRC 5F
3.91%
(Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake PMLAppraisal Report as of March 2015)
Nittsu Real Estate, Tokyo Branch, First-Class Architect
Nittsu Real Estate, Tokyo Branch, First-Class Architect
Matsui Kensetsu, K. K.
UHEC
22,770.72 m2 (6,888.14 tsubo）
41,867.82 m2 (12,665.01 tsubo)
Ownership
Ownership
70% (Note 3)
200%
None (Note 4)
Nomura Real Estate Development Co., Ltd, Nomura Real Estate
Partners Co., Ltd.

¥11,400 million(Based on the capitalization approach as of February 28, 2015)(Appraiser: Morii Appraisal & Investment Consulting, Inc.)
Appraisal NOI (Note 6)¥582 million
Leasing Status (As of March 31, 2015)
Total Number of Tenants
1
Tenant NameNIPPON EXPRESSS CO., LTD.
Total Rental Income
Undisclosed (Note 7)
Security Deposits
Undisclosed (Note 7)
Occupancy Rate (Note 8)
100.0%
Total Leased Floor Space
42,840.91 m2 (12,959.37 tsubo)(Note 9)Total Leasable Floor Space
42,840.91 m2 (12,959.37 tsubo）(Note 10)February
February
February
February
February
Occupancy Rates in the Past
28, 2011
28, 2012
28, 2013
28, 2014
28, 2015(Note 11)100.0%
100.0%
100.0%
100.0%
100.0%
Appraisal Value and Method(Note 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.

(Note 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 of-3-

buildings) of major earthquake occurring.
(Note 3)

Building Coverage Ratio

The Property is located in an industrial district where the building coverage ratio is 60% in principle. As
the building is on a corner lot, however, an increased ratio of 70% applies.

(Note 4)

Collateral
Although a pledge with the lender of the non-recourse loan as the pledgee has been established to theProperty, it is planned to be cancelled by the scheduled date of acquisition.

(Note 5)

Property Management Company
Refers to the Property Management Company that is scheduled to be appointed after the acquisition.
(The above Property Management Companies are entrusted the property management of the Property
by the seller as of today. However, a new property management agreement is planned to be concluded
between Nomura Master Fund and each of the above Property Management Companies after theacquisition of the Property by the Fund.)(Note 6)

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 February 28,
2015 as the appraisal date.

(Note 7)

Total Rental Income and Security Deposits
Undisclosed as consent has not been obtained from the tenant.

(Note 8)

Occupancy Rate
Indicates the ratio of the Total Leased Floor to the Total Leasable Floor Space (rounded to the firstdecimal place).

(Note 9)Total Leased Floor Space
Indicates the floor space that is being leased to tenants as of today.

(Note 10) Total Leasable Floor Space
Indicates the total area of leasable spaces of logistics 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 butshows the area 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 necessarilyequal to the Total Floor Space based on the indications in the registry and may occasionally surpass the
Total Floor Space.
(Note 11) Occupancy Rates in the Past
Based on the information from the seller.

-4-4. Seller Profile
Company Name
Head OfficePrincipal Business

Ryoke Capital Godo Kaisha
Tokyo Kyodo Accounting Office, 1-1 Marunouchi 3-chome, Chiyoda-ku, Tokyo
1. Acquisition, holding, sale, leasing and management of real estate
2. Acquisition, holding and sale of real estate trust beneficiary rights
3. All operations pertaining to or associated with each of business listed above
Representative
Ryoke Capital General Incorporated Associations, Managing Partner
Mitsuru Maeda, Functional Manager
Capital¥100,000
Established
November 7, 2013
Relationship with the Fund and/or NREAM
There is no capital involvement between the said company and the Fund or asset
Capitalmanagement company. Nomura Master Fund holds silent partnership equity
interest investment of ¥ 500 million of Ryoke Capital Godo Kaisha.
There is no personnel involvement between the said company and the Fund or
asset management company. There is also no personnel involvement between
Personnel
related parties of the said company and related parties of the Fund or asset
management company.
Apart from the silent partnership equity interest investment stated above, there isno transaction between the said company and the Fund or asset managementcompany. The property management companies, Nomura Real EstateTransactions
Development Co., Ltd. and Nomura Real Estate Partners Co., Ltd., areconsidered a Related Party under the Law Concerning Investment Trust andInvestment Corporation (“Investment Trust Law”).
The said company is not considered a directly associating party of the Fund.
Status of
Also, the said company is not considered a Related Party, etc., of the asset
Related Parties
management company under the Investment Trusts Act.
(Note)

Ryoke Capital Godo Kaisha is the operator of the silent partnership in which Nomura Master Fund has made investment of
500 million yen (approximately 17.9% of the silent partnership equity interest), and the Fund exercised, for the acquisition, thepreferential negotiation right granted upon the acquisition of silent partnership equity interest. For the details of the Silent
Partnership Equity Interest and the Preferential Negotiation Right preferential, please refer to “Notice Concerning Acquisitionof Investment Assets (Equity Interest in Silent Partnership)” dated November 29, 2013.

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 Property, Nomura Real Estate Development
Co., Ltd. and Nomura Real Estate Partners Co., Ltd. are Related Parties under theInvestment Trust Law. Nomura Master Fund and the Asset Management Company
determined the consignment and the terms and conditions of the transaction, including
the fees, etc., pursuant to the restrictions and formalities concerning the transactions withrelated parties as set forth in the Investment Trust Law and the Asset Management
Company’s bylaws and duly authorized by the Compliance Committee and Investment
Committee in the Asset Management Company.

-5-

7. Brokerage ProfileNo brokers were involved in the transaction of the Property.
8. Form of Payment, etc.
(1) Form of Payment
At the time of the turnover of the Property, the Fund plans a package payment of thewhole acquisition price through fund on hand and borrowings.
(2) Impact on the Fund’s Financial Status in Case of Failure of the Forward Commitment, etc.
The agreement on purchase and sale of real estate concerning the Property (the“Agreement”) falls into the Forward Commitment, etc., (Note) as set forth in theComprehensive Guideline for Supervision of Financial Instruments Business Operators set
by the Financial Services Agency. Scheduled details of the cancellation clauses are as
follows. However, the obligation of Nomura Master Fund on the Agreement, is scheduled
to be conditions precedent for completing the financing relative to the acquisition price on
the date of acquisition
1)

2)
3)

In case there are any significant violations concerning theprovisions of the Agreement by the seller or the purchaser (theparty hereto, the “defaulting party”), the other party can urge thedefaulting party to fulfill the obligation fixing a period of time.
When the defaulting party does not correct the violations withinthat time limit, the other party may cancel the Agreement.
In case of the cancellation of the Agreement, the other party may
make a claim for the penalty equivalent to 5% of the sales price tothe defaulting party.
However, the preceding item shall not preclude the claim fordamages exceeding the penalty of 5% of the sales price.

(Note) The forward commitment, etc., refers to postdated sale agreements where the conclusion and delivery of
the property is scheduled over one month ahead of the contract date, and other similar agreements.

9. 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, 2015 (September 1, 2014 to February
28, 2015) and the fiscal period ending August 31, 2015 (March 1, 2015 to August 31, 2015) will
be minimal, there is no revision to the forecast of financial results.

-6-10. Fppraisal Summary
Property Name

Kawaguchi Ryoke Logistics Center

Appraisal Value¥11,400,000,000

Appraiser

Morii Appraisal & Investment Consulting, Inc.

Appraisal Date

February 28, 2015
(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

11,400,000,000
11,500,000,000
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed(Note)

Undisclosed
Undisclosed(Note)

565,455,000
4.9%

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

11,200,000,000
4.7%

Terminal capitalization rate

5.1%

Matters noted inreconciliation ofindicated value anddetermination ofappraisal value

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)

582,444,000

Discount rate

Cost Approach Price
Ratio of land
Ratio of building

Grounds

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

7,240,000,000
62.1%
37.9%
The neighboring area of the Property has excellent proximity to central Tokyo, which is a large
market. In addition, since Kawaguchi City has highly concentrated residential districts, securing
sufficient employment is considered smooth. Furthermore, as there are very few regular housing andsuch in the surrounding area including the neighboring area, using trucks and loading/unloading atnight is possible. Concerning the quality of the building, it has normally expected specifications as toeffective height under a lower beam, floor load, space between pillars, etc., and also has a truck berthlarge enough for a truck to turn around. It can be divided vertically for separate leasing and efficiency
of logistics operations is relatively high. There seems to be no particular issue in its general versatility.
For the above reasons, no particular risk for income fluctuation is recognized and it is judged to holdaverage-level competitiveness in the same supply-demand zone.

(Note) The Property is occupied only by a tenant who is a third party not having a special interest relationship with
Nomura Master Fund or the Asset Management Company. Thus information on these items have not been
disclosed since the lease conditions may be assumed by such and negatively affect the Godo Kaisha’s
competitiveness and possibly undermining the interests of Nomura Master Fund and unitholders.
Furthermore, the information is not disclosed as consent has not been obtained from the tenant.

-7-

【Exhibits】
Exhibit 1
Exhibit 2
Exhibit 3

Portfolio after Acquisition of the Property
Property Photo
Property Map*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/-8-

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
Kawaguchi Ryoke Logistics Center
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

Logistics Sub-total
Morisia Tsudanuma
Yokosuka More’s City
Recipe SHIMOKITA
Kawasaki More’s

Greater Tokyo

RetailKinki Area

Other areas

Retail (landwithGreater Tokyo
leaseholdinterest)

Kinki Area
Retail Sub-total

EQUINIA Shinjuku
EQUINIA 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

Acquisition Price(million yen)
(Note 2)
17,40015,71013,70011,41010,79010,600
8,700
8,250
7,340
4,660
4,590
3,810
3,750
2,830
2,690
3,430
2,170
650
330
132,810
16,60013,64010,407
4,000
2,080
4,260
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
266,393

Percentage to Total(%)(Note 3)
6.5
5.9
5.1
4.3
4.1
4.0
3.3
3.1
2.8
1.7
1.7
1.4
1.4
1.1
1.0
1.3
0.8
0.2
0.1
49.9
6.2
5.1
3.9
1.5
0.8
1.6
1.5
1.3
1.2
1.0
1.0
0.9
0.6
0.6
0.4
5.8
3.4
2.5
1.7
1.1
1.8
0.6
1.0
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
50.1
100.0

Date of Acquisition
June 14, 2013
June 14, 2013
July 31, 2013
June 14, 2013
July 1, 2015
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
December 19, 2014
June 14, 2013
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
Kinki Area

Ryoke Capital Godo Kaisha Silent Partnership
Equity Interest (Note 4)
Godo Kaisha Osaka Hirakata Project
Partnership Equity Interest

500-

March 25, 2014

100-

March 30, 2015

(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%.
(Note 4) In line with the acquisition of the asset to be acquired by Nomura Master Fund, Ryoke Capital Godo Kaisha is planned
to be dissolved. The Fund is to receive settlement money in accordance with the silent partnership equity interest.

Exhibit 2
Photo of Kawaguchi Ryoke Logistics Center

Exhibit 3
Map of Kawaguchi Ryoke Logistics Center

Kawaguchi Ryoke Logistics Center