For Translation Purposes Only
August 5, 2014

For Immediate Release
Nomura Real Estate Master Fund, Inc.
Takashi Kataoka, Executive Director(Securities Code: 3285)
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Yasuaki Fukui, President and Chief Executive Officer
Inquiries: Takashi Kataoka, NMF Chief Investment Officer
TEL: +81-3-3365-8767
EMAIL: nmf3285@nomura-re.co.jp

Notice Concerning Property Acquisition and Lease Contract with New Tenant
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced
today that Nomura Real Estate Asset Management Co., Ltd. (“the Asset ManagementCompany”), the asset management company for the Fund, has determined the acquisition of realestate and lease contract with new tenant as briefly explained below.
1. Summary of the Asset to be Acquired (the “Property”)(1) Type of Asset: Beneficial Interest in Real Estate Trust(2) Property Name: - (Note 1)(3) Scheduled Price of Acquisition: ¥15,500 million (Note 2)(4) Scheduled Date of Agreement: August 8, 2014 (date of agreement on purchase and sale ofbeneficial interest in real estate trust)(5) Scheduled Date of Acquisition: September 30, 2014 (date of delivery of beneficial interestin real estate trust)(6) Seller: Refer to “4. Seller Profile” below(7) Financing: Fund on hand and borrowings(Note 1) Consent in conjunction with the corresponding contract related to the Property which
Seller contracts is not provided as of today, the information that may be connected to
the Property, including Property name, location, etc. cannot be disclosed until
September 30, 2014 (delivery of beneficial interest in real estate trust). In addition, theacquisition of the Property assumes that the consent mentioned above is provided
condition precedent, for more information about the Property will be announced after
the completion of the acquisition of the Property. Regarding the items that cannot bedisclosed are displayed in “-”.
(Note 2) Excluding property taxes, urban planning taxes, consumption taxes and local
consumption taxes－ 1 －2. Grounds
Nomura Master Fund will acquire the Property in accordance with the Fund’s policies as
stipulated in its Articles of Incorporation, as a result of having analyzed the location of theProperty and the pulling power of the customers of the retail facility from different angles, theproperty could security the stable profit for the medium-and-long term and the steady growth ofthe assets. In addition, for more information about the Property will be announced after thecompletion of the acquisition of the Property.
3. Property Summary
Property Name
Type of Asset
Trustee of Beneficial Trust
Beneficial Trust Contract
PeriodRegistry
Location
StreetAccessCompletion Date
Use (Note 1)
Structure
Seismic Risk (PML) (Note 2)
Architect
Structural Strength Calculator
Constructor
Building Inspection Agency
LandAreaBuildingLand
Type ofOwnership
Building
Building Coverage Ratio(Note 3)
Floor Area Ratio (Note 4)
Collateral
Property ManagementCompany (Note 5)
Master Lessee (Note 6)
Type of Master Lease (Note 7)

Notes

Acquisition Price (Scheduled)
Appraisal Value and Method
Appraisal NOI (Note 8)

Beneficial Interest in Real Estate Trust
Retail, office, and machinery room (Retail Property)
11.12%(Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake PMLAppraisal Report as of July 2014)
Nikken Sekkei Ltd., Obayashi Corporation
Nikken Sekkei Ltd., Obayashi Corporation
Construction Joint Venture (Representative Obayashi Corporation)
The Building Center of Japan
90%
600%
None
Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass-Through Scheme
The property management company and the master lessee company,
Geo-Akamatsu Co., Ltd., is considered a Related Party under the Law
Concerning Investment Trust and Investment Corporation (“Investment
Trust Law”).
Other notes regarding the Property will be announced after the completionof the acquisition of the Property.
¥15,500 million¥16,500 million(Based on the capitalization approach as of June 30, 2014)(Appraiser: Japan Valuers Co., Ltd.)¥914 million－ 2 －Leasing Status
Total Number of Tenants
Total Rental IncomeSecurity Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor Space
Occupancy Rates in the Past
(Notes)1.
UseMarch 31,2010

March 31,2011-

March 31,2012-

March 31,2013-

March 31,
2014--

“Use” is based on the main use of the type of building indicated in the real estate registry.

2.

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

3.

Building Coverage Ratio
The building coverage ratio of the Property is essentially 80% as its location belongs to a commercial
district, and an increased building coverage ratio of 90% is applied as it stands at a corner.

4.

Floor Area Ratio
The floor area ratio of the Property is designated to be a maximum of 400%, but an increased ratio of600% is applied due to district planning.

5.

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

6.

Master Lessee
Refers to the Master Lessee Company that is scheduled to be appointed after the acquisition.

7.

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

8.

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 June 30,
2014 as the appraisal date.

4. Seller Profile
As the Fund has not obtained an agreement with the Seller, who is Japanese Limited Company,
this information is not disclosed. There is no capital involvement, personnel involvement ortransaction involvement between the Seller and the Fund or asset management company as oftoday. The Seller is not Related Parties under the Investment Trust Law of the asset managementcompany.
5. Status of Owners
This transaction is not with Seller is specific Related Parties of the Fund and the AssetManagement Company.

－ 3 －6. Transaction with Related Parties
Transaction concerning Property Management Services and Master Lessee Services for theProperty
The scheduled property management company and master lessee company of the Property,
Geo-Akamatsu Co., Ltd. is a Related Party under the Investment Trust Law. Nomura MasterFund and the Asset Management Company determined the consignment and the terms andconditions of the transaction, including the fees, etc., pursuant to the restrictions andformalities concerning the transactions with related parties as set forth in the Investment Trust
Law and the Asset Management Company’s bylaws and duly authorized by the Compliance
Committee and Investment Committee in the Asset Management Company. In addition,
Geo-Akamatsu Co., Ltd. meets the tenant selection criteria (Note) for the Fund and the AssetManagement Company.
(Note) Regarding the tenant selection criteria, the creditworthiness of the tenant and a purpose of use that
influence to the Property and the total portfolio are taken into account, type of industry and an evaluationof the credit agency etc. are comprehensively considered.

7. Brokerage Profile
As the Fund has not obtained an agreement with the brokerage agency, who is Japanese Limited
Company, this information is not disclosed. There is no capital involvement or personnel
involvement between the broker and the Fund or asset management company as of today. The
broker is not Related Parties under the Investment Trust Law of the asset management company,
however, broker is a General Administrator of the Fund, a lender of the Fund, and a trustee ofthe multiple properties held by the Fund.
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 beneficial interest in real estate trust concerning
the Property (the “Agreement”) falls into the Forward Commitment, etc., (Note) as set
forth in the Comprehensive Guideline for Supervision of Financial Instruments Business
Operators set by the Financial Services Agency. Details of the cancellation clauses are as
follows:
1)
If either the seller or the buyer violates any material obligation of theAgreement, the other party may cancel the Agreement after notifying theviolating party in writing, setting a reasonable period for correction. However,
if it is evidently impossible for the violating party to correct the violation
within the reasonable period, or the buyer does not complete payment of thesales price on the execution date of the transaction, the other party may
immediately cancel the Agreement without any notice.
2)
In the case of 1), the violating party shall pay the other party the amountequivalent to 20% of the total sales value (including an amount equivalent toconsumption tax, etc.) as a violation fee.
3)
Whether the amount of the arising damage surpasses or just falls below theabove-mentioned violation fee, the seller and the buyer shall settle the issue－ 4 －with the violation fee and shall not make any objections to the amount of theviolation fee.
(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
Forecasts of financial results of the Fund for the fiscal period ending February 28, 2015
(September 1, 2014 to February 28, 2015) announced in Summary of the Financial Results
dated April 15, 2014 are revised as follows, including the acquisition of the Property in theportfolio, since the Fund cannot disclose the details of the Property as of today.
CashDistributions
per Unit

Distributions
in Excess ofNet Incomeper Unit¥9,383 mln ¥4,552 mln ¥3,997mln ¥3,996 mln¥2,400-¥9,991 mln ¥4,689 mln ¥4,065 mln ¥4,064 mln¥2,440-¥608 mln¥136 mln¥67 mln¥67 mln

¥40

-

6.5%

3.0%

1.7%

1.7%

1.7%

-

Operating
Revenues
Previous
Forecasts (A)Revised
Forecasts (B)Amount of
Increase /Decrease(B-A)
Ratio of
Increase /Decrease

Operating
Profits

CurrentProfitsNet
Income(Note 1) Expected number of investment units outstanding: 1,665,260 units(Note 2) Amounts less than units are rounded off, percentages have been rounded to the nearest first decimal place.

[Document Disclaimer]
The revised forecasts presented in this document are calculated under precondition as oftoday, the actual operating revenues, operating profits, current profits, net income and cash
distribution per unit may vary due to the acquisition and sale of properties, if any, changes in
the real estate market and other factors affecting the Fund. Nomura Master Fund does notguarantee the cash distribution amount identified above.

【Exhibits】
ExhibitAppraisal Summary*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/－ 5 －Exhibit
Appraisal Summary
Property Name

-Appraisal Value¥16,500,000,000

Japan Valuers Co., Ltd.

Appraiser
Appraisal Date

June 30, 2014
(Yen)
Item

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
MaintenanceManagement association fees
Utilities costs

Amount or percentage
16,500,000,000
17,300,000,000
1,603,576,889
1,646,472,284
42,895,395
689,465,105
83,188,000
50,649,000
286,136,420

Repair costs14,271,751

Property management fees
Advertisement for leasing, etc.
Merchandising expenses

73,561,837
6,816,379
48,950,000

Taxes

50,441,844

In calculating, both the discounted cash flow approachand the direct capitalization approach are taken into
account
Calculated by capitalization rate based on a normalized net
cash flow (NCF)
Assumed based on both current rents and market rents
Assumed based on both current occupancy rates andmarket vacancy rates
Assumed based on the past performance and general level
Assumed based on the past performance and general level
Assumed based on the past performance and general level
Assumed based on the Tokio Marine & Nichido Risk
Consulting Co., Ltd.’s Engineering Report
Assumed based on general level, and hearing survey
Assumed based on the similar properties and general level
Assumed based on the past performance and general level
Assumed based on the actual amount imposed in 2014 tax
year and general level
Assumed based on the estimated amount and general level
Assumed based on the past performance and general level

Insurance premium
Other expenses(3) Net operating income fromleasing business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

914,111,784
16,205,233

Assumed based on yield of ordinary deposits, etc.

(5) Capital Expenditure Reserve

21,911,959

Assumed based on the Tokio Marine & Nichido Risk
Consulting Co., Ltd.’s Engineering Report(6) Net Cash Flow
(NCF = (3)+(4)-(5))

908,405,058(7) Capitalization rate

4.9%

Price calculated by the Discounted Cash
Flow Approach
Discount rate
Terminal capitalization rate
Cost Approach Price
Ratio of land
Ratio of building

1,545,691
73,904,183

Grounds

Assumed based on the yield on investment of similarbuildings and the characteristics of the Property

16,200,000,000
4.7%
5.1%
4,160,000,000
42.3%
57.7%

Assumed based on the yield on investment of similarbuildings and the characteristics of the Property
Assumed based on comparison of capitalization rate