For Translation Purposes Only
September 30, 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 Completion of Property Acquisition
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced thecompletion of acquisition of the following asset stated in the “Notice Concerning Property
Acquisition,” released on August 5, 2014. In addition, Nomura Master Fund announced today thedetails of the Property which were undisclosed in “Notice Concerning Property Acquisition andLease Contract with New Tenant” dated August 5, 2014.

1. Summary of the Property
Property nameLocation

Type of asset

Osaka-shi, Osaka

Beneficial Interest in
Real Estate Trust

Acquisition
price (¥million)(Note)

Universal CityWalk Osaka

15,500(Note) Excluding costs required to acquire the property, property taxes, urban planning taxes, consumption taxes
and local consumption taxes

With the acquisition of the Property mentioned above, the Fund’s portfolio now consists of 56
properties and the acquisition price is a total of ¥253.5 billion. For further details concerning theportfolio after this acquisition, refer to the attached reference material “Exhibit 2 Portfolio after
Acquisition of the Property”.

－ 1 －2. Grounds
Nomura Master Fund acquired the Property in accordance with the Fund’s policies as stipulated
in its Articles of Incorporation. The Fund values the following factors.
(1) Location
・ The Property has location characteristics featuring high scarcity value with a wide
trading zone, as its surrounding area constitutes a major urban resort which, centering
on Universal Studios Japan, a theme park representing Japan, integrates the Property(an adjacent retail facility) and four buildings of the Park’s official hotels.
・ To date, Universal Studios Japan has commanded a high capacity to attract guests,
with the number of visitors exceeding 100 million on a cumulative basis in 2012 andsurpassed 10 million yen in the single year of fiscal 2013. On top of this, the Park
opened The Wizarding World of Harry Potter in July this year, investing
approximately 45 billion yen – the largest amount of investment since it started
operations. This development is expected to further reinforce the topicality andattractiveness of the Park as well as enhance its capacity to attract guests.
・ The Property is very conveniently located as its nearest station, Universal City Stationon the JR Yumesaki Line, is an approximately 11 minute train ride from Osaka Station
on JR lines. In addition, the Property is situated almost in the center of the Osaka Bay
area, within about 8km from Osaka Station on JR lines, about 15km from Osaka
International Airport, about 20km from Kobe Airport and about 30km from KansaiInternational Airport, enjoying good accessibility not only from the Kansai area but
also from around Japan.
(2) Property Features
・ The Property is one of the largest multi-use retail facilities in the Osaka Bay area,
boasting over 5 million customers annually and housing an array of restaurants andshops with individuality in a colorful townscape presenting a taste of Hollywood. This,
combined with the synergistic effects with the adjacent Universal Studios Japan, is
expected to lead to realize a high capacity to attract guests.
・ The Property has a wide variety of tenants centering on restaurants with highentertainment quality, including such American restaurants as Hard Rock Café and
Bubba Gump Shrimp as well as a food theme park for takoyaki (Japanese octopus
dumpling balls), providing topicality and strong appeal to the users of the facility.
・ In addition to the customers coming to the area to visit Universal Studios Japan,
concentration of the population is taking place around the Property due toconstruction of condominiums. There are also manufacturing plants, laboratories andother business corporations. As such, the Property should be able to expect morestable demand by attracting these residents and workers in the neighborhood asweekday customers.

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

Universal CityWalk Osaka
Beneficial Interest in Real Estate Trust
Sumitomo Mitsui Trust Bank, Ltd.
December 28, 2012 - December 31, 2020
6-429, Shimaya, Konohana-ku, Osaka-shi, Osaka, and 4 others
6-2-61, Shimaya, Konohana-ku, Osaka-shi, Osaka
1 minute walk from Universal-city Station on the JR Yumesaki LineJune, 2001
Retail, office, and machinery room (Retail Property)
S/SRC, 5F
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 Japan1) 8,785.43 m2 (2,657.59 tsubo), 2) 8,788.67 m2 (2,658.57 tsubo)
Total floor space of the whole building
86,888.64 m2 (26,283.81 tsubo)
Exclusive elements that NMF acquired
17,769.42 m2 (5,375.24 tsubo)
1) Ownership (co-ownership)2) Leasehold interest of the land (quasi co-ownership)Compartmentalized ownership
90%
600%
None
Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass-through scheme

－ 3 －

1.

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”).
2. In the case of transfer, etc. of the land, leasehold and the building of
the Property to any third party, the following requirements shall be
fulfilled: 1) acquisition of consent from other business owners basedon the agreement among business owners regarding development of
the new station bloc in the Konohana western coastal area (October1999) and succession of the said agreement to the third party; 2)
discussion with and acquisition of consent from the Osaka city
government based on the basic agreement regarding the development
project for the new station bloc in the Konohana western coastal area
between business owners and the Osaka city government (November1999), and succession of the basic agreement to the third party; 3)(with regard to the leasehold interest of the Property) acquisition ofprior written consent from the Osaka city government based on theland lease agreement between the business owners and the Osaka city
government (July 2001) (20 years lease term of land lease right forbusiness use); and 4) (with regard to the building of the Property)
prior written notification on the transfer of the exclusive portions to
the manager based on the supplementary provisions of the
management bylaws (June 2001) (part of the building of the Property(the heating supply subplant) is leased to a domestic operationcompany (subleased through a master lease agreement) and, in case thelessor transfers the building of the Property to any third party, it isrequired to acquire prior written consent of the said domestic
Notes
operating company, which is the lessee, and succeed the status of thelessee under the relevant building lease agreement to the third party).
In addition, in the case of transfer of the beneficiary interest in trustof the Property to any third party, the following requirements shall be
fulfilled, among other things: 5) acquisition of prior written consent
from the Osaka city government and succession of this obligation to
the third party; and 6) acquisition of prior written consent from someof the other business owners and succession of this obligation to thethird party.
3. Furthermore, the trustee of the beneficiary interest in trust for theasset shares the liability for implementing the obligations under theleasehold agreement in 2. 3) above as quasi co-owner of the leaseholdinterest of the land. In particular, it is liable for purchasing the leased
land at a price equivalent to the market price as a vacant lot, in
accordance with its equity interest.
4. Pursuant to the sublicense agreement with the sublicensor regarding
the name of the Property’s building and other trademarks, etc., there
are cases in which leasing may not be allowed to tenants or that
discussions with and approval by the sublicensor are required withregard to leasing to tenants as well as the fixtures, equipment andmaintenance of the facilities.
5. The management association of the Property’s building has received arequest from the operators and the Osaka city government, which aredeveloping a building on the land adjacent to the Property, to connect
the said building under development and the Property’s building by asky corridor. Discussions are underway with the management
association.
Acquisition Price¥15,500 million¥16,500 million
Appraisal Value and Method(Based on the capitalization approach as of June 30, 2014)(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI (Note 7)¥914 million
Leasing Status (As of August 31, 2014) (Note 8)
Total Number of Tenants
48(Note 9)－ 4 －Total Rental Income (Note 10)
Security Deposits (Note 11)
Occupancy Rate (Note 12)
Total Leased Floor Space(Note 13)
Total Leasable Floor Space(Note 14)
Occupancy Rates in the Past
(Note 15)¥52million¥573million
95.9%
9,330.61 m2 (2,822.50 tsubo)
9,733.24 m2 (2,944.30 tsubo)
March 31,
2010

94.9%

March 31,
2011

97.2%

March 31,
2012

96.0%

March 31,
2013

97.4%

March 31,
2014

97.1%

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

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

3.

Type of Ownership
The trust property of the beneficiary interest in trust acquired by the Fund comprises co-ownershipinterest of land, quasi-coownership interest of leasehold (for the land owned by the Osaka city
government) and exclusive portions of the building in compartmentalized ownership, etc. The
percentage of the co-ownership of the land and co-ownership of the leasehold, which are part of thetrust property, is 54.11% (270,460/499,870). The building of the Property, which is an entire buildingof Universal CityWalk Osaka comprising two hotel buildings, a retail and cooling facility building and an
office building, is under compartmentalized ownership, and the Fund acquired beneficiary interest in
trust for the portion of the retail and cooling facility building (with a voting right ratio of 25.22%).
Furthermore, part of the land and the leasehold of the Property have been leased or subleased to adomestic industrial corporation that is the owner of the office building. For the overview of the titles
and rights regarding the Property, please see Exhibit 5 “Right-related Summary Figure”.

4.

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.

5.

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.

6.

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

7.

Appraisal NOINOI means the net operating income that is the gross income from the leasing operation less the total
operation costs and expenses.
“Appraisal NOI” indicates the annual NOI described in the real estate appraisal report with June 30,
2014 as the appraisal date.

8.

Leasing Status
Indicates the leasing status with end tenants when the Type of Master Lease is pass-through scheme.

9.

Total Number of Tenants
Indicates the total number of end tenants to which the Property’s building is actually being leased as ofAugust 31, 2014.

10.

Total Rental Income
Refers to the sum total of monthly rent and common service fees in lease agreements actuallyconcluded with end tenants that are valid as of August 31, 2014. (If common-use space, etc. is being
leased based on the lease agreement, rents for such are included, and if rents include the amountequivalent for using parking space, such are included. Also, if the Master Lessee has a master lease for－ 5 －part or all of a rental room with a guaranteed rental scheme, the amount for that section is based on therent, etc. in the lease agreement concluded with the Master Lessee.) Furthermore, regarding tenants who
have been exempt from rent payment for a certain period of time in their agreements, such exemption
periods are not considered and the amount is calculated based on the monthly rent and common service
fees immediately after the exemption periods end. Also, the standard levels of rents are used for tenantswith rents that depend on sales.
11.

Security Deposits
Indicates the amount of leasehold and security deposits in the lease agreements (rounded down to thenearest million yen).

12.

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

13.

Total Leased Floor Space
Indicates the floor space that is being leased to end tenants as of August 31, 2014.

14.

Total Leasable Floor Space
Indicates the total area of leasable spaces of retail property as of August 31, 2014 (including the area ofcommon-use spaces, etc. if they are leased). The Total Leasable Floor Space is not an indication on theregistry but shows the area indicated in the lease agreements or the calculated areas based on thebuilding completion drawings and other documents. As such, the Total Leasable Floor Space is notnecessarily equal to the Total Floor Space based on the indications in the registry and may occasionallysurpass the Total Floor Space.

15.

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

4. 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) including the acquisition of the Property has beenstated in “Notice Concerning Property Acquisition and Lease Contract with New Tenant”
dated August 5, 2014, however, the Fund schedules to announce the forecasts anew in thefinancial statement for the fiscal period ended on August 31, 2014 (March 1, 2014 to August
31, 2014) after taking into account for the operational status of the entire portfolio.

【Exhibits】
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5

Appraisal Summary
Portfolio after Acquisition of the Property
Property Photo
Property Map
Right-related Summary Figure*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/－ 6 －Exhibit 1
Appraisal Summary
Property Name

Universal CityWalk Osaka

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 costs

14,271,751

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

Matters noted inreconciliation ofindicated value anddetermination ofappraisal value

The subject property is a retail facility adjacent to Universal Studios Japan, a theme park
boasting the most prominent capacity to attract guests in Western Japan. As the property issituated on the traffic line connecting Universal City Station, its nearest station, and themain gate of Universal Studios Japan, it has location characteristics featuring high scarcity
value as a retail facility targeting visitors to the Park. The number of guests visiting the Parkhas been on an increasing trend over recent years due to the holding of highly attractive
events and introduction of popular attractions. On top of this, the effect of The Wizarding
World of Harry Potter that opened in July this year, is anticipated to significantly increase
the number of guests going forward, which also allows for expectations of increased sales
at stores housed in the subject property.
As stated above, the subject property is recognized to have high scarcity value andcompetitiveness as a retail facility, and is anticipated to operate at stable occupancy for years
to come. Accordingly, the appraisal value has been determined with a focus on thecapitalization approach price that appropriately reflects the economic value of investments.

Exhibit 2
Portfolio after Acquisition of the Property
Use

Logistics

Acquisition Price(million yen)
(Note 2)
17,40015,71013,70011,41010,600
8,700
8,250
7,340
4,660
4,590
3,810
3,750
2,830
2,690
3,430
2,170
650
330
122,020
16,600Percentage to Total(%)(Note 3)
6.9
6.2
5.4
4.5

Yokosuka More’s City

13,640

5.4

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

Recipe SHIMOKITAEQUINIA Shinjuku
Kawasaki More’s
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

10,407
4,260
4,000
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
116,003
238,023

4.1
1.7
1.6
1.6
1.4
1.2
1.1
1.0
1.0
0.7
0.6
0.4
6.1
3.5
2.6
1.7
1.2
1.9
0.6
1.1
0.7
0.6
0.5
0.4
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.3
51.9
100.0

December 13, 2013
June 14, 2013
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-

Area
(Note 1)

Greater Tokyo

Other areas

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

Logistics Sub-total
Morisia Tsudanuma

Greater Tokyo

RetailKinki Area

Other areas

Retail (landwithGreater Tokyo
leaseholdinterest)

Kinki Area
Retail Sub-total

Total

4.2
3.4
3.3
2.9
1.8
1.8
1.5
1.5
1.1
1.1
1.4
0.9
0.3
0.1
48.1
6.5

Date of Acquisition
June 14, 2013
June 14, 2013
July 31, 2013
June 14, 2013

Investment
Securities

GreaterTokyo

Ryoke Capital Godo Kaisha Silent Partnership
Equity Interest

500-

March 25, 2014

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

Exhibit 3
Photo of Universal CityWalk OsakaExhibit 4
Map of Universal CityWalk OsakaExhibit 5
Right-related Summary Figure of Universal CityWalk Osaka

Name

Building

Exclusive
Elements(ratio of voting
rights）

Commercial Tower,
Cooling Facility

NMF(25.22%)Business Tower

Hotel Kintetsu
Universal City

Hotel Keihan
Universal City

Compartmentalized
Owner A

Compartmentalized
Owner B

Compartmentalized
Owner C

(21.45%)(31.18%)(22.15%)Co-ownership
Elements（ratio of coownershipinterest）

Co-ownership
NMF(25.22%)Compartmentalized
Owner A

Compartmentalized
Owner B

Compartmentalized
Owner C

(21.45%)(31.18%)(22.15%)Co-ownershipLand①8,785.43㎡

Land

NMF
(54.11%)Compartmentalized
Owner B

Compartmentalized
Owner C(26.83%)(19.06%)

Osaka City (Quasi co-ownership of Leasehold)Land②8,788.67㎡

NMF(54.11%)Compartmentalized
Owner B

Compartmentalized
Owner C(26.83%)(19.06%)