For Translation Purposes Only
September 30, 2013

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
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced
today that it has determined the acquisition of real estate, as stated below.
1. Summary of the Asset to be Acquired (the “Property”)
(1)
(2)
(3)
(4)

Type of asset: Real Estate
Property name: Recipe SHIMOKITA
Acquisition price (Scheduled): ¥10,407 million (Note)
Date of agreement: September 30, 2013 (date of agreement on purchase and sale of realestate)(5) Scheduled date of acquisition: December 13, 2013 (date of delivery of real estate)(6) Seller: Refer to “4. Seller Profile” below(7) Financing: Fund on hand and borrowings(Note) 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. The Fund values the following factors.
(1) Location
・ The Property’s nearest station Shimokitazawa Station is a transportation hub serviced by
the Odakyu Odawara Line and the Keio Inokashira Line, and boasts highly convenient
access to Shinjuku Station, Shibuya Station and other major terminal stations.
・ With construction work to move Odakyu Odawara Line to underground being completed
in March 2013, and with scheduled ongoing implementation of a multiple double tracks
project, station building construction work and other efforts to enhance transportation
capacity and mitigate congestion, further enhancement of the convenience of
Shimokitazawa Station is anticipated.
・ The Shimokitazawa Station south exit vicinity where the Property is located is a bustlingarea with a concentration of stores, such as apparel stores, restaurants, drugstores andvariety stores, and also a high volume of pedestrian flow. In addition, the Property is
located a one-minute walk from Shimokitazawa Station. The Property thus boasts alocation that can be anticipated to attract a stable flow of customers.
(2) Property Features
・ The Property has two floors below ground and eight floors above ground and total floor
space of approximately 2,587 tsubo, making it one of the largest retail facilities in the
Shimokitazawa area. The tenants are lifestyle-oriented stores, such as a supermarket
mainly selling food products, an apparel store and a store selling daily necessities andmiscellaneous goods, as well as service-oriented stores that draw on the location being
close to the station. Synergistic effects in the capacity to attract customers are anticipated.
・ In addition, a property with over 200 tsubo per floor is highly rare in the area and it also
can be partitioned to flexibly respond to various tenant needs, making it a property thatboasts high appeal to tenants and high competitiveness in the area.
In addition to the above, the Fund adopts an investment policy of focusing investment on
the Greater Tokyo area (in principle, 80% or more on an acquisition price basis), where there
is strong demand, to construct a portfolio that generates stable income. The Property will beacquired in accordance with this policy and investment in the Greater Tokyo area is scheduled
to account for 84.6% of the portfolio as a result.
Moreover, completed in 2011, the Property is a relatively-newly-built property. The building
age of 13.4 years as at the end of September 2013 for the existing portfolio of 54 properties
held by the Fund will improve to 12.9 years when the Property is incorporated into theportfolio. The Fund also believes that it will contribute to the portfolio’s income stability.

－ 2 －3. Property Summary
Property Name
Type of AssetRegistry
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 ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 3)
Master Lessee (Note 4)
Type of Master Lease (Note 5)

Recipe SHIMOKITA
Real Estate
2-1045-7 Kitazawa, Setagaya-ku, Tokyo
2-20-17 Kitazawa, Setagaya-ku, Tokyo
1 minute walk from Shimokitazawa Station on the Odakyu Odawara Lineand Keio Inokashira LineJuly, 2011
Retail and clinic
S/RC, B2/8F
2.71%(Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake PMLAppraisal Report as of July 2013)
Tokyo Court Co., Ltd.
Sumitomo Mitsui Construction Co., Ltd.
Sumitomo Mitsui Construction Co., Ltd.
Japan Constructive Inspect Association
1,716.03 m2 (519.09 tsubo)
8,552.53 m2 (2,587.14 tsubo)
Ownership
Ownership
80%
500%
None
Geo-Akamatsu Co., Ltd.

－－The property management company, Geo-Akamatsu Co., Ltd., is considered
Notes
a Related Party under the Law Concerning Investment Trust and Investment
Corporation (“Investment Trust Law”).
Acquisition Price (Scheduled) ¥10,407 million¥10,600 million
Appraisal Value and Method(Based on the capitalization approach as of September 30, 2013)(Appraiser: Japan Valuers Co., Ltd.)
Estimated NOI (Note 6)¥459 million
Leasing Status (As of September 30, 2013) (Note 7)
Total Number of Tenants
10(Note 8)
Total Rental Income (Note 9) ¥44million
Security Deposits (Note 10)¥368million
Occupancy Rate (Note 11)
99.5%
Total Leased Floor Space
6,264.31 m2 (1,894.95 tsubo)(Note 12)
Total Leasable Floor Space
6,295.22 m2 (1,904.30 tsubo)(Note 13)
Occupancy Rates in the Past
(Note 14)

August 31,
2009

August 31,
2010

－

－

August 31,
2011

52.9%

August 31,
2012

96.4%

August 31,
2013

99.5%

(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.

－ 3 －

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.

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

4.

Master Lessee
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.

5.

Type of Master Lease
Indicates the rights of lease with end tenants when the Type of Master Lease is pass-through scheme.

6.

Estimated NOINOI means the net operating income that is the gross income from the leasing operation less the total
operation costs and expenses.
“Estimated NOI” shows the forecast amount for one year without considering the special factors
affecting the year of the acquisition and is calculated based on the following assumptions. It is not aforecast of the fiscal period ending February 28, 2014 or any other specific periods.
(a) Occupancy rate: 98.5%(b) Tax amounts: same as those imposed in 2013 tax year for the land and estimated amounts forthe building
Leasing Status
Indicates the leasing status with end tenants when the Type of Master Lease is pass-through scheme.

7.
8.

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

9.

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 today. (If common-use space, etc. is being leased basedon the lease agreement, rents for such are included, and if rents include the amount equivalent for using
parking space, such are included. Also, if the Master Lessee has a master lease for part or all of a rentalroom with a guaranteed rental scheme, the amount for that section is based on the rent, etc. in the leaseagreement 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 notconsidered 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 tenants withrents that depend on sales.

10.

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

11.

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).

12.

Total Leased Floor Space
Indicates the floor space that is being leased to end tenants as of today.

13.

Total Leasable Floor Space
Indicates the total area of leasable spaces of retail 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 but shows thearea 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 necessarily equal to the Total Floor
Space based on the indications in the registry and may occasionally surpass the Total Floor Space.

14.

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

－ 4 －4. Seller Profile
As the Fund has not obtained an agreement with the Seller, who is Japanese Limited Company,
this information is not disclosed. The transferee is not Related Parties under the Investment
Trust Law of the asset management company.
5. Status of Owners
This transaction is not with Seller is specific Related Parties 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, Geo-Akamatsu Co., Ltd. is a
Related Party under the Investment Trust Law. Nomura Master Fund and the AssetManagement Company determined the consignment and the terms and conditions of thetransaction, including the fees, etc., pursuant to the restrictions and formalities
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.
7. Brokerage Profile
Two Japanese Limited Companies was used for the transaction, however, as the Fund has not
obtained an agreement with the brokerage agencies, this information is not disclosed. The
brokers are not Related Parties under the Investment Trust Law of the asset managementcompany.
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. Details of the cancellation clauses are as follows:1)
In case there are any significant violations concerning the provisions of theAgreement by the seller or the purchaser (the party hereto, the “defaulting
party”), the other party can urge the defaulting party to fulfill the obligation
fixing a period of time. When the defaulting party does not correct theviolations within that time limit, the other party may cancel the Agreement.
2)
In case of the cancellation of the Agreement, the other party may make a claim
for the penalty equivalent to 20% of the sales price to the defaulting party.
3)
However, the preceding item shall not preclude the claim for damages
exceeding the penalty of 20% 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.
－ 5 －9. Forecasts of Financial Results
Forecasts of financial results of the Fund for the fiscal period ending February 28, 2014
(September 1, 2013 to February 28, 2014) including the acquisition of the Property in theportfolio are scheduled to be announced in the financial statement for the fiscal period ended
on August 31, 2013 (January 31, 2013 to August 31, 2013).

【Exhibits】
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4

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

Recipe SHIMOKITA

Appraisal Value¥10,600,000,000

Japan Valuers Co., Ltd.

Appraiser
Appraisal Date

September 30, 2013
(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

10,600,000,000
10,700,000,000
629,130,953
638,286,262
9,155,309
174,410,614
50,160,000
71,609,500

Repair costs

745,250

Property management fees

6,140,389

Advertisement for leasing, etc.

1,686,704

Taxes

29,968,492

Insurance premium
Other expenses

556,120
13,544,159(3) Net operating income fromleasing business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve

1,738,917

Assumed based on the Tokio Marine & Nichido Risk
Consulting Co., Ltd.’s Engineering Report

4.3%

Matters noted inreconciliation ofindicated value anddetermination ofappraisal value

Assumed based on the estimated amount 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 the similar properties, general level,
and hearing survey
Assumed based on the similar properties and generallevel
Assumed based on the actual amount imposed in 2013 tax
year and general level
Assumed based on the estimated amount and general level
Assumed based on the past performance and general level
Assumed remote parking lot fees, etc. as other expenses

Assumed based on yield of ordinary deposits, etc.

(7) Capitalization rate

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

10,500,000,000
4.1%

Terminal capitalization rate
Cost Approach Price
Ratio of land
Ratio of building

Assumed based on both current rents and market rents
Assumed based on both current occupancy rates andmarket vacancy rates

7,294,279

460,275,701

Discount rate

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)

454,720,339(6) Net Cash Flow
(NCF = (3)+(4)-(5))
Price calculated by the Discounted Cash
Flow Approach

Grounds

4.5%
7,210,000,000
78.1%
21.9%

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

The subject property is a retail property located in a place that is an approximate
one-minute walk from Shimokitazawa Station on the Odakyu Line. It is in the
Shimokitazawa area, which is highly popular with the young, and thus also has a favorable
underlying population. With a station square and bus terminal scheduled to be establishedin the station vicinity, further development is expected. In addition, being in an area thathas a concentration of small- to medium-scale stores, a retail building of a large scale likethe subject property is rare and recognized to have high competitiveness, and occupancy isthus expected to be stable into the future. The appraisal value was determined in light of
the above, focusing on the value indicated by the income approach (capitalization approachprice), which properly reflects the value for typical investors.

Exhibit 2
Portfolio after Acquisition of the Property
Use

Logistics

Acquisition Price(Scheduled)(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)

Yokosuka More’s City

13,640

5.7%

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
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
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

4.4%
1.8%
1.7%
1.7%
1.4%
1.3%
1.1%
1.1%
1.0%
0.7%
0.7%
0.4%
3.8%
2.8%
1.9%
1.3%
2.0%
0.7%
1.2%
0.7%
0.7%
0.5%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.1%
0.1%
0.1%
0.3%
48.7%
100.0%

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 Logsitics Center B Tower
Kawaguchi Logsitics Center A Tower
Atsugi-Minami Logsitics 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

7.3%
6.6%
5.8%
4.8%
4.5%
3.7%
3.5%
3.1%
2.0%
1.9%
1.6%
1.6%
1.2%
1.1%
1.4%
0.9%
0.3%
0.1%
51.3%
7.0%

Date of Acquisition(Scheduled)
June 14, 2013
June 14, 2013
July 31, 2013
June 14, 2013
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
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
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-

(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) “Acquisition Price (Scheduled)” indicates the amount excluding expenses required for the acquisition of relevant
properties, such as transaction brokerage fees and taxes and duties (or the transaction price of properties shown in thesales agreement with suspensive conditional clauses).
(Note 3) “Percentage to Total” indicates the ratio of the acquisition price (scheduled) of respective properties to the totalacquisition price (scheduled) of the entire portfolio (55 properties in total). Furthermore, as the figures were rounded to
the first decimal place, the total may not necessarily be 100%.

Exhibit 3
Photo of Recipe SHIMOKITA

Exhibit 4
Map of Recipe SHIMOKITA