English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

June 22, 2021
To All Concerned Parties
REIT Issuer: Daiwa Securities Living Investment Corporation
6-2-1 Ginza, Chuo-ku, Tokyo 104-0061
Ikuo Shoda, Executive Director(Securities Code: 8986)
Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.
Toshio Fukushima, President and Chief Executive Officer
Inquiries: Takashi Chiba, General Manager, Corporate Division
Tel: +81-3-6757-9680

Notice Concerning Acquisition of Asset (Gran Casa Itabashi EAST)
Daiwa Securities Living Investment Corporation (hereinafter referred to as the “Investment Corporation”) hereby announcesthat Daiwa Real Estate Asset Management Co. Ltd. (hereinafter referred to as the “Asset Manager”), the asset manager of theInvestment Corporation, has resolved to acquire the asset (hereafter the “Asset to Be Acquired”) described below.

I. General Outline of the Acquisition

Name of property

Location

Propertytype(Note 1)Gran Casa Itabashi
EAST (Note 4)

Kita-ku, Tokyo

Residence(Studio)

Anticipatedacquisition price(A)(JPY thousand)(Note2) (Note 3)

Appraisal value(as of June 2021)(B)(JPY thousand)(Note 3)955,000

989,000

Difference between
anticipated acquisition
price and appraisalvalue(B)-(A)(JPY thousand)((A)/(B))(Note 3)34,000(96.6%)(Note 1) Studio means residences with 1R, 1K, 1DK, or 1LDK.
(Note 2) Anticipated acquisition price does not include acquisition expenses, adjustments to property tax and city planning tax, and consumption tax and local
consumption tax. The same applies hereinafter.
(Note 3) Amounts are rounded to the nearest unit and percentages are rounded to the first decimal place. Unless stated otherwise, the same applies hereinafter.
(Note 4) The current name of the property is not disclosed because the consent of the seller has not been obtained. The name will be changed to “Gran Casa
Itabashi EAST” on June 23, 2021.
(Note 5) The intermediary of the Acquisition does not correspond to the interested party.

Ⅱ. Reason for the Acquisition and Leasing
Based on the asset management objectives and policies set forth in the Investment Corporations Agreement, we have decided
to acquire the Asset to Be Acquired in order to diversify and enhance the portfolio to achieve asset size growth and secure stableearnings.
Ⅲ. Details of Asset to Be Acquired and Leasing
The details of the Asset to Be Acquired are summarized in the following individual property tables. The description of theitems mentioned in the individual property tables is as follows.

<Description of Items>
a. Explanation of Overview of Properties
1. Where residential indication is not shown under “Residential indication” for Location, the building location is shownin accordance with either the housing number indication or the registry (including the Registration Record. The sameapplies hereinafter).
2. “Form of ownership” for both Land and Building refers the type of rights held by the Investment Corporation for realestate and by the Trustee for real estate trust beneficiary interests.
3. “Zoning” for Land refers to the types of use districts stipulated by Item 1, Paragraph 1, Article 8 of the City Planning
Act (Law No. 100 of 1968, including later amendments) (hereinafter referred to as the “City Planning Act”).
4. “Area” for Land is shown in accordance with the registry and may not correspond to the current reality.
5. “FAR” for Land refers to the ratio of the sum of the floor space of the building to the land area as stipulated in Article
52 of the Building Standards Act (Law No. 201 of 1950, including later amendments) (hereinafter referred to as theEnglish Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
“Building Standards Act”), and the upper limit of floor-to-area ratio (designated floor-to-area ratio) as determined bycity planning according to the use area. The designated floor-to-area ratio can be mitigated, increased, or reduced dueto the width of roads connected to the site and other reasons, and may differ from the floor-to-area ratio that is actuallyin use.
6. “Building-to-land ratio” for Land shows the ratio of the building area to the land area as stipulated in Article 53 of theBuilding Standards Act, and the upper limit of building-to-land ratio (designated building-to-land ratio) as determinedby city planning according to the use area. The designated building-to-land ratio can be mitigated, increased, orreduced due to fireproofed structures in a fire prevention districts and other factors, and may differ from the buildingto-land ratio that is actually in use.
7. “Use” for Building refers to the building type recorded in the registry.
8. “Structure/Floors” for Building is based on records in the registry.
9. “Number of leasable units” indicates the number of units that can be leased as of May 31, 2021, for the Asset to Be
Acquired (only recorded for residences).
10. “Number of leasable compartments” indicates the number of compartments of a building where a lease contract has
been concluded, and includes retail stores, offices, etc., if any (only recorded for healthcare facilities).
11. “Total floor area” for Building is based on records in the registry and does not include the floor area of annexedbuildings.
12. “Construction completion” for Building refers to the date of completion recorded in the registry.
13. “Estimated emergency repair expenses,” “Estimated short-term repair expenses,” and “Estimated long-term repair
expenses” are rounded down to the thousands, while ratios are rounded to the first decimal place.
14. “PML” data was acquired from Tokyo Marine & Nichido Risk Consulting Co., Ltd. in May 2021.
15. “Property manager” is the property management company entrusted with, or scheduled to be entrusted with theproperty management operations.
16. “Master lessee” is the party that has, or is scheduled to enter into a master lease agreement concerning the asset inquestion.
17. “Type of master lease” is either “Pass through” or “Guaranteed rent.” “Pass through” is a master lease agreement
where the master lessee passes on the rent equivalent to rent paid by the end tenant, and “Guaranteed rent” is a master
lease agreement in which the master lessee pays a fixed rent.
18. “Real estate rent revenue” is the monthly rental income (rent, common service fee, parking lot income, etc.) rounded
down to less than 1,000 yen based on the figures and information available as of May 31, 2021, of the Asset to Be
Acquired.
19. “Lease and guarantee deposits, etc.” are the lease or guarantee deposits (residences, retail stores, offices, parking lots,etc.) rounded down to less than 1,000 yen based on the figures and information available as of May 31, 2021, of theAsset to Be Acquired.
20. “Leasable area” shows the leasable area of each of the Asset to Be Acquired as of May 31, 2021, excluding area usedby storage spaces, parking spaces, custodian areas, signboards, vending machines, antennas and other spaces leased
to the lessee in addition to their main use, or other areas leased for the maintenance and supervision of the relevant
property (including loan for use). Furthermore, leasable area is calculated using the center line of the wall, and includes
the meter boxes and pipe spaces allotted to each unit.
21. “Number of tenants” shall be 1 if a master lease agreement has been concluded with a master lessee.
22. “Total leased area” is the sum of the area leased through lease agreements with end tenants (however, in cases whereproperties are wholly leased to realtors through guaranteed rent agreements or where a master lessee wholly leases it
to another company, lease agreements where properties are wholly leased to a lessee) at the Asset to Be Acquired thatare in effect as of May 31, 2021.
23. “Occupancy rate” is the figure obtained by dividing the total leased area by the leasable area for the Asset to Be
Acquired as of May 31, 2021.
24. The “Features” sections have been prepared based on the analyses of the Asset Manager and the appraisal reports of
the real estate appraiser concerning the Asset to Be Acquired.
25. The “Special Notes” section denotes important factors upon considering the rights, appraisal values, the impact on
profitability and disposability, etc., concerning the Asset to Be Acquired.
Overview of the Property
Category of anticipatedproperty for acquisitionTrustee (scheduled)
Trust agreement period
Scheduled acquisition priceAppraisal value(appraisal date)
Location(Residential indication)

Trust beneficiary interests
Mitsubishi UFJ Trust and Banking Corporation
From January 22, 2021 to December 31, 2031
JPY 955 million
Scheduled acquisition date
JPY 989 million
Appraisal firm
(as of June 1, 2021)
7-20-2, Takinogawa, Kita-ku, Tokyo

June 23, 2021
DAIWA REAL ESTATEAPPRAISAL CO.,LTD.

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
AccessLand

Form of ownershipArea
Form of ownership

BuildingStructure/Floors

Total floor area
Building engineer
Constructor
Building inspection agency
Estimated emergency
repair expenses
Estimated long-term repair
expenses
Property manager
Master lessee
Real estate rent revenue
Lease and guarantee deposits
Total leasable area
Total leased area
CollateralApproximately 450 meters from Itabashi Station on the JR Saikyo Line
Neighborhood commercial
Ownership
Zoning
districts
236.70 m²
FAR/Building-to-land ratio 400%／80%
Ownership
UseCondominium
RC, 10-story building with
Number of leasable units34 units
flat roof
1,080.22 m²
Construction completion
January 5, 2021
Seiwa Corporation First-class architect office
Seiwa Corporation
J Architecture Inspection Center
Estimated short-term
JPY 0 thousand
JPY 0 thousand
repair expenses
JPY 9,173 thousand

PML

Tokyu Housing Lease Corporation
G.K. Japan Rental Housing Type of master lease
Overview of Leasing
JPY 823 thousand
JPY 1,193 thousand
934.40 m²
Number of tenants
188.52 m²
Occupancy rate
NoneFeatures

5.6%
Pass through

1
20.2%

Site features:
The property is a condominium completed in January 2021, located a 6-minute walk from Itabashi Station on the JR SaikyoLine. It has good access to Ikebukuro, Shinjuku, and Shibuya. It is also possible to use the Toei Subway Mita Line
Nishisugamo station, located a 12-minute walk, and has excellent access to business districts such as Otemachi and Hibiya.
The property is located in the good residential area with convenience facilities such as retail stores and parks. There is astable need from single people who commute to the city center with an emphasis on transportation access and living
convenience.
Property features:
The property is the 10-story reinforced concrete structure, consisting of 1K(32 units) and 2LDK(2 units). In addition tobeing equipped with common facilities such as an auto lock, intercom with monitor, security camera, delivery box, bathroomdryer, hot water washing toilet seat, etc., each unit is equipped with an Internet line as standard equipment. The property
provides an attractive life that makes full use of IoT technology, such as a non-contact locking system compatible withsmartphones and ceiling lighting with a built-in voice AI.
Special Notes
NoneIV. Profile of the Counterparty
The seller of the asset to be acquired is a domestic company, whose name is not disclosed because the seller’s consent has notbeen obtained. There are no capital, human, or business relationships between the Investment Corporation or the Asset Manager
and the seller. The seller is not related party of the Investment Corporation or the Asset Manager.
The seller does not fall under the category of interested persons under the Order for Enforcement of the Act on Investment
Trusts and Investment Corporations, nor does it fall under the category of interested party, etc. under the internal rules on dealings
with interested parties of the Asset Manager.
V. Profile of the Property Seller
The seller of the anticipated property is not classified as a special related party of the Investment Corporation and the AssetManager.
VI. Funds for Acquisition
Own funds

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
VII. Acquisition Schedule・ Decision of acquisition and conclusion of purchase agreement: June 22, 2021
・ Payment and delivery: June 23, 2021
Ⅷ. Payment Method, Etc.
Lump-sum payment at the time of transaction.
Ⅸ. Future Prospects
The Acquisition will have only a slight impact on the asset management condition in the fiscal period ending September 30,2021 (from April 1, 2021 to September 30, 2021) and the fiscal period ending March 31, 2022 (from October 1, 2021 to March31, 2022), and there is no change in the asset management forecast.
X. Summary of Appraisal Report
Property nameAppraisal value
Appraiser
Date of appraisal

Gran Casa Itabashi EAST
989,000,000 yen
DAIWA REAL ESTATE APPRAISAL CO.,LTD.
June 1, 2021

Item
Value indicated by income approach
Value indicated by the direct capitalization
method(1) Total Operating Income: (a) – (b)

(a)

(b)

JPY thousand

Details
989,000

Outline, etc.
－

JPY thousand

1,030,000－

JPY thousand

47,800Rental revenues includingcommon service fees

JPY thousand

47,904

Parking fees

JPY thousand

21

Other revenues

JPY thousand

1,312

Losses from vacancies

JPY thousand

1,437

JPY thousand
JPY thousand

08,989Operation costs

JPY thousand

2,472

Utilities

JPY thousand

340

Repairs and maintenanceexpense

JPY thousand

606

Property management fees

JPY thousand

697

Tenant promotion fees, etc.

JPY thousand

1,291

Taxes and public dues

JPY thousand

2,553

Nonlife insurance

JPY thousand

63

Other expenses－Taking into account mid- to long-term competitiveness of the property based on
the level and movements of new rents of similar properties in the same supplydemand area, posted assumed standardized revenues from the rental units andcommon service fees of the property.
Taking into account assumed vacancy rates of such parking space of the property
based on lease cases.
Posted key money and other revenues by applying the number of months for eachtenant based on assessed tenants change and vacancy rates.
Renewal fee revenue was assessed and recorded, based on the consideration ofrenewal ratios and vacancy ratios.
Posted loss from vacant units, etc. by assessing vacancy rates in relation torevenues from rental units that are deemed to be stable over a mid- to long-term
period, common service fees and parking space revenues and by taking into
account competitiveness, etc. of the property based on standardized vacancy ratesof similar properties.
Not posted because bad debt losses are deemed to be secured by key money, etc.
－Posted operation costs by assessing the level of operation costs for similar
properties.
Posted utility costs by assessing the level of utility costs for similar properties.
Posted repairs and maintenance expenses by assessing the level of repairs andmaintenance expenses for similar properties.
Assessed and posted tenant change costs, taking into account tenant change andvacancy rates.
Posted property management fees by assessing the level of property management
fees for similar properties.
Posted secretarial costs associated with solicitation for new tenants for rental units
and parking space by assessing the portion to which the assumed tenant change
rate would apply, taking into account the level of secretarial costs associated withsolicitation for new tenants of similar properties.
【Land】Assessed and posted Taxes and public dues by the tax registered book forfiscal year 2021.
【Property】Posted taxes and public dues, by assessing from a mid- to long-term
perspective the assumed amount of taxes for the year which is 11 years after
construction based on the replacement value of the planned building.
Assessed in reference to the level of non-life insurance premiums for similarproperties.
Posted internet expenses and miscellaneous expenses, etc. by assessing the levelof these for similar properties.

Bad debt losses(2) Total Operating Expenses

JPY thousand

965(3) Net Operating Income (NOI):(1) – (2)

JPY thousand

38,810(4) Lump-Sum Investment Return

JPY thousand

35(5) Capital Expenditure

JPY thousand

811(6) Net Cash Flow (NCF): (3) + (4) – (5)JPY thousand

38,033－
By comprehensively taking into account the actual situation of investing lumpsum paid, etc. from both investment and funding perspectives and assuming
investment yields, posted an amount calculated by multiplying said assumed
investment yields by an amount equivalent to assumed key money in custody, etc.
Posted by assessing the level of renewal expenses for similar properties withtaking into account assumed CM fees.
－English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.
(7) Capitalization Rate
Value indicated by DCF method(%)
JPY thousand

3.7
972,000

Discount rate(%)

3.5

Terminal capitalization rate

(%)

3.9

Value indicated by cost approach
Land ratio
Property ratio

JPY thousand(%)(%)

Other items of note by appraiser

URL: https://www.daiwa-securities-living.co.jp/en/

984,000
67.0
33.0
None.

－－
Assessed the discount rate, taking into account discount rates used in transactionsof similar properties, comparison with yields from other financial instruments andso forth.
Assessed terminal capitalization rate, taking into account factors such as themarketability of the property at the maturity of the holding period in relation tocapitalization rate.
－－－

English Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

(Reference Material) Exterior and Map of the Asset to Be AcquiredEnglish Translation
The following is an English translation of the Japanese original press
release and is being provided for information purposes only.

(Additional Material) Overview of Portfolio accompany the Acquisition<Number of Properties, Etc.>

Total number ofproperties
Total number ofleasable units
Total leasable area

Properties owned asof today(a)Asset to Be Acquired(b)

Other assets to beacquired(c) (Note)

229 properties

1 property

2 properties

232 properties

16,658 units

34 units

44 units

16,736 units

722,419.77 m2

934.40 m2

1,360.90 m2

724,715.07 m2(a) + (b) + (c)(Note) This refers to the 2 properties (Gran Casa Monzennakacho and Gran Casa MagomeⅡ) scheduled to be acquired, announced on October 21, 2020.

<Asset Size, Etc.>

Total (anticipated)acquisition price(Note 1)
Appraisal value(Note 2)

Properties owned asof today(a)Asset to Be Acquired(b)

Other assets to beacquired(c)

JPY 327.3 billion

JPY 0.9 billion

JPY 1.4 billion

JPY 329.7 billion

JPY 387.0 billion

JPY 0.9 billion

JPY 1.5 billion

JPY 389.5 billion(a) + (b) + (c)(Note 1) Total (anticipated) acquisition price is calculated based on the (anticipated) acquisition price.
(Note 2) Among the Appraisal value of the "Properties owned as of today” is calculated based on the appraisal value as of March 31, 2021. "Asset to Be
Acquired" is calculated based on the appraisal value as of June 1, 2021, and "Other assets to be acquired" are calculated based on the appraisal value
as of March 21, 2021.

<Amount and Rate of Investment by Type (Based on (Anticipated) Acquisition Price>

StudioFamilyHealthcare

Properties owned asof today(a)
JPY 152.0 billion(46.5%)
JPY 79.6 billion(24.3%)
JPY 95.5 billion(29.2%)

Asset to Be Acquired(b)

Other assets to beacquired(c)(a) + (b) + (c)JPY 0.9 billion

JPY 1.4 billion----

JPY 154.5 billion(46.9%)
JPY 79.6 billion(24.2%)
JPY 95.5 billion(29.0%)