January 7, 2020
To All Concerned Parties
Name of REIT Issuer:
CRE Logistics REIT, Inc.
2-10-1, Toranomon, Minato-ku, Tokyo, Japan
Tsuyoshi Ito, Executive Director(TSE Code: 3487)
Asset Management Company
CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Person of Contact:
Hirohisa Toda, Head of Corporate Planning
Tel: +81-3-5575-3600

Notice Concerning Acquisition of Trust Beneficiary Rights to Real Estate in Japan andLeasing
CRE Logistics REIT, Inc. (hereinafter “CRE REIT”) hereby announces that CRE REIT Advisers, Inc.
(hereinafter the “Asset Management Company”), an asset management company to which CRE REIT entrusts
the management of its assets, decided on January 7, 2020 to acquire the trust beneficial interests in thefollowing properties (hereinafter the “Assets to Be Acquired”) and to conduct the leasing thereof.

1. Overview of the acquisition
Category

Logisticsrelated
facilities

Propertyno.

Property nameLocationTokyo

Domestic leasing
company(Note 3)
Domestic leasing
company(Note 3)
Domestic leasing
company(Note 3)
Domestic leasing
company(Note 3)

―

―

M-9

LogiSquare Soka

Soka-shi,
Saitama

M-10

LogiSquare Yashio

Yashio-shi,
Saitama

M-11

LogiSquare Mizuho A

Mizuho-machi,
Tokyo

M-12

LogiSquare Mizuho B

Total / Average (4 properties)

SellerMizuho-machi,

Plannedacquisition
Appraised
price (Million NOI yield (%)yen)(Note 2)
(Note 1)
8,109

4.6

5,073

4.6

2,794

4.9

3,584

4.8

19,5604.7(Note 1) “Planned acquisition price” is the purchase price of each Asset to Be Acquired as set forth in the agreement for sale and purchaseof the said Asset to Be Acquired. The purchase price does not include national and local consumption taxes or acquisition cos ts
and is rounded down to the nearest million yen.
(Note 2) “Appraised NOI yield” is the ratio in percentage form of the appraised NOI of each Asset to Be Acquired to the plann ed
acquisition price (meaning net operating income (NOI) that is obtained by deducting operating expenses from operating
revenue stated in appraisal reports, and it is income before deducting depreciations. It is different from net cash flow (NCF )that is obtained from deducting security deposits and other earnings as well as capital expenditu re from NOI. The same applies

1hereinafter), rounded to the first decimal place. “Average appraised NOI yield” is the ratio in percentage form of the sum of
the appraised NOI of each Asset to Be Acquired to the sum of the planned acquisition prices of the A ssets to Be Acquired,
rounded to the first decimal place. Appraised NOI yield and average appraised NOI yield have been calculated by the AssetManagement Company and do not represent the figures shown in the appraisal reports. The actual values after the acquisitionof the Assets to Be Acquired by CRE REIT may differ from those shown in this text.
(Note 3) As consent from the seller for disclosure has not been obtained, the information has not been disclosed due to this unavoidable
reason. The seller does not fall under the interested persons under the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951 as amended, hereinafter the “Investment Trust Act”), and does not fall under the interested party inaccordance with the Regulations for Transactions with Interested Parties, the internal regulations of the Asset Management
Company.

(1) Sales and purchase agreement date / Date of determination of planned acquisition: January 7, 2020
(2) Payment date / Planned acquisition date (Note 1): February 3, 2020
(3) Acquisition financing:

Proceeds through the issuance of new investment units as
resolved at the Board of Directors’ meeting of CRE REIT
held on January 7, 2020 (Note 2), borrowings (Note 3) andfunds in hand(4) Settlement method:

To be paid in a lump sum upon delivery(5) Existence or non-existence of intermediary:

None(Note 1) “Planned acquisition date” is the execution date of the transfer of each trust beneficiary rights described in the s ales and purchaseagreement concerning each Asset to Be Acquired.
(Note 2) For more details, please refer to “Notice Concerning Issuance of New Investment Units and Offering for Sale of Investme nt
Units” dated January 7, 2020.
(Note 3) For more details, please refer to “Notice Concerning Borrowing of Funds (New Borrowings a nd Refinancing)” dated January
7, 2020.

2. Reasons for the acquisition and leasing
The Assets to Be Acquired are properties other than those in the sponsor pipeline and the first assets acquired
externally for CRE REIT (Note 1), unlike assets acquired in the past. Utilizing the Asset Management
Company’s abilities to collect information and its bargaining power for acquisition, CRE REIT has confirmedthat the Assets to Be Acquired are properties consistent with its investment policy and repeatedly conduct ed
negotiations on the acquisition of the Assets to Be Acquired and its terms and conditions with a fund, which
was the owner at that time (subsequently the Assets to Be Acquired were once sold to a domestic leasing
company, and the leasing company became the direct seller to CRE REIT), and the leasing company. As aresult, it became possible to externally acquire properties that were consistent with the investment policy of
CRE REIT at a planned acquisition price that CRE REIT thought was appropriate, and CRE REIT therefore
decided that the properties would be able to realize external growth that would contribute to the enhancementof unitholder value.
The Assets to Be Acquired are logistics-related facilities and situated in locations suited to logistics. Bearing
the high-quality brand name “LogiSquare” (Note 2), the facilities are universal and expandable to allow use
by a range of tenants. The acquisition and leasing will be conducted with the aim of enhancing the portfolioof CRE REIT in accordance with its Articles of Incorporation and improving unitholder values based on thepolicies of “Long-term, stable asset management” and “Distinct external growth strategy.” The characteristics
of each Asset to Be Acquired are as described in 3. Details of the Assets to Be Acquired below.
The acquisition of the Assets to Be Acquired is expected to create stable, long-lasting cash distribution
2

backed by long-term lease agreements that generate cash flow. CRE REIT believes that this will contribute to
the realization of unitholder value enhancement.
With regard to the tenants of the Assets to Be Acquired, CRE REIT believes that the tenants meet the tenant
selection criteria described in the Report on the Management Structure and System of the Issuer of Real Estate
Investment Trust Units and Related Parties submitted to Tokyo Stock Exchange on September 24, 2019.
(Note 1) When CRE REIT conducted the first public offerings on July 16, 2019, CRE REIT used the bridge function of the leasin gcompany to acquire properties flexibly while giving consideration to the investment unit price. As for the assets acquired inthe 7th fiscal period (ended December 31, 2019) with capital raised by the first public offerings, CRE, Inc. (hereinafter may
be referred to as “CRE”), the sponsor, once sold the asset to a domestic leasing company with a view toward their sal es to CRE
REIT in the future, and subsequently CRE REIT acquired it. The Assets to Be Acquired were developed by CRE or Commercial
RE Co., Ltd. before its business transfer to CRE (CRE took over the master lease business and the lease management businessof business real estate of Commercial RE Co., Ltd. in August 2010) and then sold to an external private fund with no special
interest, and the assets became managed by the fund. When CRE REIT acquires the Assets to Be Acquired, the fund will havesold the Assets to Be Acquired to a domestic leasing company to facilitate the sale to CRE REIT, as is the case of acquiring
assets in the 7th period. Therefore, the Assets to Be Acquired are currently owned by the domestic leasing company.
(Note 2) Developed by CRE or Commercial RE Co., Ltd., “LogiSquare” is the name of quality logistics-related facilities that meet tenantneeds.

3

3. Details of the Asset to Be Acquired
An overview of the trust beneficial interests in real estate, the Assets to Be Acquired, is shown in the tablebelow. The terms used in each column of the table are as described in the following, which is based on
information as of the end of November 2019 unless otherwise provided herein.
(i) Descriptions concerning “property no.” and “use”
・“Property no.” consists of a number and code that indicates the type of each property. The code “M” indicateslogistics-related facilities located in the Tokyo Metropolitan Area, and the code “O” indicates those located in areas
other than the Tokyo Metropolitan Area.
・“Use” is the use(s) of the Assets to Be Acquired.
(ii) Descriptions concerning “Outline of specified assets”
・“Planned acquisition date” is the planned acquisition date of each Asset to Be Acquired.
・“Planned acquisition price” is the purchase price of each trust beneficiary interest set forth in the respective agreement
for sale and purchase of the trust beneficiary interest for each Asset to Be Acquired. The purchase price does notinclude national and local consumption taxes or acquisition costs.
・“Overview of trust beneficiary right” is the content of the respective trust agreement for each real estate in trust thatis concluded or is scheduled to be concluded with a trust beneficiary or a prospective trust beneficiary.
・“Location” of the land is the residence indication or the location of the building recorded in the register (one of the
lot numbers, if more than one address was assigned).
・The land “area” is the area recorded in the register. This area is the entire area of the parcel for the building, both in
the case of properties pertaining to co-ownership and in the case of properties pertaining to quasi co-ownership. This
area may not match the actual conditions.
・“Zoning” of the land is the districts and zones prescribed in Article 8, paragraph 1, item 1 of the City Planning Act(Act No. 100 of 1968, including all subsequent amendments).
・“Building coverage ratio/floor-area ratio” for the land is the upper limit of the building coverage ratio determined bycity planning in accordance with zoning and other factors (designated building coverage ratio) and the upper limitof the floor-area ratio (designated floor-area ratio). Where there are more than two such ratios, all such ratios arelisted. The designated building coverage ratios may be relaxed or restricted due to being fire-resistant buildings infire zones or for other reasons. The designated floor-area ratio may also be relaxed or restricted due to the width of
the roads adjacent to the land or for other reasons. These ratios may differ from the actual building coverage ratio
and floor-area ratio applied.
・“Type of ownership” of the land and building is the type of rights pertaining to the land and building for each property
that CRE REIT, a trustee or a prospective trustee owns or is scheduled to own.
・“Building structure” and “completion date for construction” of the building are the building structure and thecompletion date for construction in the register for each building.
・“Total floor area” and “type” are the total floor area and the type in the register for each building. In addition, “total
floor area” is the sum of total floor area of the main building and annex.
・“Master lessee” is the company with which a master lease agreement is planned to be concluded at the time when
CRE REIT acquires the Assets to Be Acquired.
・“Master lease agreement” is the type of master lease agreement (distinction between the pass -through type and thefixed rent type) that is concluded or is scheduled to be concluded between the owner and the Master lessee for each
property.
・“PM Company” is the company with which a property management agreement is planned to be concluded at the time
when CRE REIT acquires the Assets to Be Acquired.
・“Number of tenants” is the number of persons who plan to lease the real estate from CRE REIT based on leaseagreements that are scheduled to become effective on the planned acquisition date for each Asset to Be Acquired by
CRE REIT. Where a master lease agreement has been signed or is planned to be signed wi th the Master Lessee,

4

“number of tenants” is the total number of end tenants with regard to properties based on a pass -through type master
lease. Moreover, where an end tenant lives with a third party or subleases all or a portion of the leased lot to a th ird
party, such third party is not included in “number of tenants.”
・“Existence or non-existence of collateral” is an outline of the collateral for each Asset to Be Acquired in the casewhere CRE REIT is scheduled to provide the collateral after acquiring the Asset to Be Acquired.
・“Total leasable area” is the area of the portions that are deemed leasable based on the respective lease agreements
concerning each Asset to Be Acquired that has been concluded as of the end of November 2019 or the floor plan, etc.
・“PML (probable maximum loss) value” is the value equivalent to Level 2 in the Earthquake Risk (PML) Evaluation
Report prepared by Sompo Risk Management Inc.
・“Features of the properties” are the basic features and characteristics of each Asset to Be Acquired, the evaluation
conducted by CRE REIT, and special features of the communities where the asset is located, among other things,
which are based on descriptions of a real estate appraisal report prepared by Tanizawa Sogo Appraisal Co., Ltd. an d
Daiwa Real Estate Appraisal Co., Ltd. or based partly on materials obtained by the Asset Management Company.
・“Notes” are matters that are deemed to be material with respect to relationships of the rights, usage, etc. of each
property as of January 7, 2020 and other matters that are deemed to be material in consideration mainly of thepotential impact on the appraised value of each Asset to Be Acquired, and the profitability or disposability thereof.
(iii) Descriptions in the column for “capacity utilization rate”
・“Capacity utilization rate” is the ratio of total leased area to leasable area of each Asset to Be Acquired at each point
in time, rounded to the first decimal place.
(iv) Descriptions in the column for “outline of leasing”
・“Lessee,” “lease form,” “lease period,” “leased area,” “rent,” “security deposit and guarantee money,” “rent revision,”“premature cancellation” and “penalty” are the contents of each lease agreement that has been concluded with regard
to each Asset to Be Acquired as at November 31, 2019 (in the case of the pass-through type master lease agreement,
the lease agreement with the end tenant).
(v) Explanations in the column for “outline of real estate appraisal report”
・The column for “outline of real estate appraisal report” is written based on the appraisal report obtained from
Tanizawa Sogo Appraisal Co., Ltd. and Daiwa Real Estate Appraisal Co., Ltd.

5

(1) LogiSquare Soka
Property no.
M-9

LogiSquare Soka

Type of specified assets
Planned acquisition date
Planned acquisition price

Land

Use

Outline of specified assets
Trust beneficial interest
Overvi Entrustment date
ew ofFebruary 3, 2020
Trusteetrust
benefic
Trustmaturity
ial¥8,109,000,000
dateinterest

Location

1-5-35
Aoyagi,Soka-shi,
Saitama (residence indication)Area

15,056.45 m2

April 30, 2014
Mitsubishi UFJ Trust
Banking Corporation

andFebruary 29, 2040
Reinforced
concrete,
steel
construction, alloy coated steel
sheet roof, four floors

Building
structure

Completion dateJune 14, 2013
for construction
Buildin
Total floor area
28,817.59 m2
g

ZoningExclusive industrial district
Building coverage
ratio/floor-area
60% (Note)/200%
ratioType of ownership

Logistics-related facilities

Type
Type
ownership
PM Company
Number of tenants

Proprietary ownership

Warehouse, officeofProprietary ownership

Master lessee
CRE, Inc.
CRE, Inc.
Master lease agreement
Pass-through1
Existence or non-existence ofNone
Total leasable area
29,073.87 m2
collateral
PML (probable maximum
3.14%loss) value
Features of the property:
・The property has excellent traffic convenience and proximity to the city center because it is located inside the Tokyo Gaikan
Expressway, approximately 3 km from Gaikan Misato-nishi Interchange on the Tokyo Gaikan Expressway, and approximately
4.5 km from Yashio-mimami Interchange on the Misato Route of the Shuto Expressway. It is also possible to access major
expressways through the Tokyo Gaikan Expressway.
・Surrounded by numerous warehouses and factories, the property is located in the exclusive industri al district in Soka Yashio
Industrial Park and can be operated 24 hours a day.
・As there are large residential estates in front of Dokkyo Daigaku-mae Station on the Tobu Isesaki Line, the nearest station,
there is no difficulty securing the labor force, and the property meets the needs of vehicle commuters by securing a parking
space for 65 passenger cars on the premises.
・Thirty-four heavy trucks can park and load at the same time and space is available as a heavy trucks holding area.
・The entire area of the truck yard uses semi-flexible pavement that reduces the generation of wheel tracks and contributes tothe reduction of the road surface temperature.
・The basic specifications for the warehouse portion include a floor weight capacity of 1.5 t/m 2 and an effective ceiling heightof 6.0 m on each floor, a column span of 10.5 m × 10.0 m, the depth of berth eave of 10.0 m and an illumination intensity of
300 Lux, securing sufficient versatility and required levels.
・Well-insulated, waterproof sandwich panels, which also give consideration to design, are used on the exterior walls. As thebuilding has a pure Rahmen structure without braces, it is possible to build a flexible working traffic line inside the wareh ouse.
・The transportation equipment inside the warehouse includes six cargo elevators (movable load of 4.1 t), making the facility
versatile with rapid and effective operation inside the warehouse.
・It is possible to add two cargo elevators and four vertical carrier machines as an option to secure versatility.
・The property is a highly versatile facility that is able to respond to a variety of logistics needs, including future needs o f tenants,
such as securing space for expanding substation equipment that can deal with a further increase in power consumption derived
from the installation of freezing and refrigeration equipment and material handling equipment.

6

・Divided use by multiple tenants is also possible by setting an office, a bicycle-parking area and a smoking space in two placesin the east and west.
・As a seismic countermeasure, a hybrid construction method is used for the building structure to control the shaking ofearthquakes better than a steel-frame structure. It is also possible to issue an alarm inside the building against epicentral
earthquakes, which are not covered by the emergency earthquake alert of the Japan Meteorological Agency by introducing an
emergency earthquake alert system, which is standard equipment from LogiSquare.
・As a flood control measure, substation equipment is set up on a level about 3 meters higher than GL in two places in the east
and west to prevent the loss of power due to flooding.
・From an environmental point of view, consideration is given to the energy saving of electric equipment, water supply anddrainage equipment and air-conditioning equipment by using human detecting sensors and water-saving sanitary appliances
and installing energy recovery ventilation as well as solar panels.
・The property uses signs that visualize functions inside the facility, and the sign design inside the facility, which was made tosatisfy both functionalities required for a logistics facility and design that makes the workers happier, received the SDA Aw ard
from the Japan Sign Design Association. The signs use different colors for each floor to enable the workers to easily identify
their present location, and the scale marks on columns are used as a guide when loading cargo.
Notes:
On part (46.29 m2) of the subject land, servitude is set up with the site at 716-4 Matsue, Soka-shi, Saitama as the dominant land
for the purpose of installing an electric power transmission line, prohibiting entry into the land to conserve the transmissi on line
and prohibiting acts that comprise an obstacle to the transmission line. In addition, on part (869.17 m 2) of the subject land, acontract is concluded with Tokyo Electric Power Company Holdings, Inc. to prohibit acts that comprise an obstacle to thetransmission line of the company.
(Note) The building coverage ratio is originally 60%, but has been eased to 70% as a result of applying the loosened regulati ons to thecorner lot.

Capacity utilization rate
End of July 2019100.0%End of August
2019
100.0%End of September
2019
100.0%End of October2019
100.0%End of November
2019
100.0%End of December
2019
100.0%

Outline of leasing

LesseeType ofbusiness

Lease form

Lease period

Leased area

Rent

Security
deposit andguarantee
money

Undisclosed(Note)

Land
transportation

Fixed term
building lease

Undisclosed(Note)

29,073.87 m2

Undisclosed(Note)

Undisclosed(Note)

Rent revision
Premature
cancellation

Undisclosed (Note)

Penalty

Undisclosed (Note)

Undisclosed (Note)(Note) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed
due to this unavoidable reason.

Property nameAppraisal value
Real estate appraiser
Date of valuation

Outline of real estate appraisal report
LogiSquare Soka
¥8,580,000,000
The Tanizawa Sogo Appraisal Co., Ltd.
November 30, 20197

ItemsAppraisal value indicated by the income
approachAppraisal value based on the direct
capitalization method(1) Operating Revenue(i) Effective gross Income(ii) Losses from vacancy, etc.
(2) Operational Expenses
a. Building maintenance costs
b. Utility expensesc. Repair expenses
d. Property management feese. Tenant soliciting fees etc.
f. Taxes and public dues
g. Insurance premiumsh. Other expenses(3) Net operating income(4) Earnings from temporary
deposits(5) Capital expenditure
Net cash flow
Capitalization rate

Appraisal value using the DCF
methodDiscount rate

Details

Comments, etc.
The appraisal value is estimated using the income approachafter conducting an examination using the direct¥8,580,000,000
capitalization method based on the appraisal value indicatedby the DCF (Discount Cash Flow) method as the standard.
¥8,790,000,000

Undisclosed (Note) (i)-(ii)Undisclosed (Note)
Undisclosed(Note)
Undisclosed
Sum of values listed under a. to h.
(Note)
Undisclosed(Note)
Undisclosed(Note)
Undisclosed(Note)
Undisclosed(Note)
Undisclosed(Note)
Undisclosed(Note)
Undisclosed(Note)
Undisclosed(Note)¥373,841,168 (1)-(2)Undisclosed (Note)
Undisclosed (Note)¥369,206,612 (3)+(4)-(5)4.2% Appraised by comparing and examining several market
capitalization rates of properties in peripheral areas or insimilar districts, etc. in the same market area, by taking into
account anticipated variations in future net cash flow and by
paying attention to the relationship to the discount rate.
¥8,490,000,000

First to fourth year Appraised by first determining the base yield of the
4.1% warehouse using the built-up method, etc. in reference to theFifth to ninth year 4.2% yields of financial instruments, and then by taking into
Tenth year and account the individual risks pertaining to the subject real
thereafter 4.3% estate in relation to the said base yield.
Terminal capitalization rate
4.4% Appraised by using the capitalization rate as the standard andby evaluating the uncertainty of future projections.
Integrated value¥8,400,000,000
Proportion of land
70.4%
Proportion of building
29.6%
Other matters for consideration by the Noneappraiser(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This is because
the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm the interests ofunitholders.

8(2) LogiSquare Yashio
Property no.
M-10

LogiSquare Yashio

Type of specified assets
Planned acquisition date

Planned acquisition priceLand

Category

Outline of specified assets
Trust beneficial interest
Overvi Entrustment date
ew ofFebruary 3, 2020
Trusteetrust
benefic
ial¥5,073,000,000
Trust maturity dateinterest

Location

116-2 Tsubuta-Kita, MinamiUshiroya, Yashio-shi, Saitama

Area

10,507.68 m2

ZoningIndustrial district

Building structure

October 31, 2014
Mitsubishi UFJ Trust and Banking
Corporation
February 29, 2040
Reinforced
concrete,
steel
construction, alloy coated steel
sheet roof, four floors

Completion date
January 31, 2014
Buildin for constructiongTotal floor area
19,068.60 m2

Building coverage
ratio/floor-area
60%/200%
ratio
Type of ownership Proprietary ownership
Master lessee
CRE, Inc.

Logistics-related facilities

Type

Warehouse, officeType of ownership Proprietary ownership
PM Company
CRE, Inc.

Master lease agreement
Pass-throughNumber of tenants
1
Existence or non-existenceNone
Total leasable area
18,330.05 m2of collateral
PML (probable maximum
2.94%loss) value
Features of the property:
・The property has excellent traffic convenience and proximity to the city center because it is located approximately 3.8 km
from Soka Interchange on the Tokyo Gaikan Expressway and approximately 4.0 km from Yashio -Minami Interchange on theMisato Route of the Shuto Expressway. It is also possible to access major expressways through the Tokyo Gaikan Expressway.
・ Surrounded by numerous industrial complexes because it is located in the industrial district inside the Tokyo Gaika nExpressway, the property has excellent accessibility to production areas. It also has convenient proximity to the largest
consuming region because it is located less than 25 km from central Tokyo.
・The property is geographically advantageous from the perspective of securing employment because it is within a walking
distance of approximately 1.5 km from Soka Station on the Tobu Isesaki Line and there are apartment buildings around Soka
Station.
・At the truck berths, 20 large trucks can park and load at the same time.
・The truck yard and the gateways for trucks use semi-flexible pavement that controls the generation of wheel tracks andcontributes to the reduction of the road surface temperature.
・The basic specifications for the warehouse portion include a floor weight capacity of 1.5 t/m 2 and an effective ceiling heightof 6.0 m on each floor, a column span of 11.5 m × 9.8 m, the depth of berth eave of 10.0 m and an illumination intensity of
300 Lux, securing sufficient versatility and required levels.
・Well-insulated, waterproof sandwich panels, which also give consideration to design, are used on the exterior walls.
・The transportation equipment inside the warehouse includes two cargo elevators (movable load of 4.1 t) and two vertical carriermachines (movable load of 1.5 t), and it is possible to add two vertical carrier machines as an option to meet tenant needs.
・As a seismic countermeasure, a hybrid construction method is used for the building structure to contro l the shaking ofearthquakes better than a steel-frame structure. It is also possible to issue an alarm inside the building against epicentral
earthquakes, which are not covered by the emergency earthquake alert of the Japan Meteorological Agency by introd ucing an
emergency earthquake alert system, which is standard equipment from LogiSquare.
・Flood control and torrential rainfall measures are taken by increasing and dispersing the inlet of rainwater storage tanks, a nd9the loss of power due to unexpected flooding is planned to be prevented by installing cubicles on a level about 2.7 meters
higher than GL.
・From an environmental point of view, the environmental load is reduced by incorporating the building wall greening and green
parking, in addition to the installation of solar panels. Consideration is given to the energy saving of electric equipment, watersupply and drainage equipment and air-conditioning equipment by using human detecting sensors and water-saving sanitary
appliances and adopting energy recovery ventilation.
Notes:
While there are some findings in the fire defense equipment inspection result report, they are to be corrected at the seller’s own
expense and risk by the time CRE REIT acquires the property.
Capacity utilization rate
End of July 2019100.0%End of August
2019
100.0%End of September
2019
100.0%End of October2019
100.0%End of November
2019
100.0%End of December
2019
100.0%

Outline of leasing

LesseeType ofbusiness

Lease form

Lease period

Leased area

Rent

Security
deposit andguarantee
money

Undisclosed(Note)

Land
transportation

Fixed term
building lease

Undisclosed(Note)

18,330.05 m2

Undisclosed(Note)

Undisclosed(Note)

Rent revision
Premature
cancellation
Penalty

Not allowed.
Not allowed; provided, however, that premature cancellation may be approved under unavoidable
circumstances on the condition that the intent of the premature cancellation is notified in writing no later
than 6 (six) months before the intended date of premature cancellation and that a penalty for thepremature cancellation be paid.
Amount equivalent to unexpired rent

(Note) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed
due to this unavoidable reason.

10Outline of real estate appraisal report
Property name

LogiSquare Yashio

Appraisal value
Real estate appraiser¥5,330,000,000
The Tanizawa Sogo Appraisal Co., Ltd.

Date of valuation

November 30, 2019
Items

Details

Appraisal value indicated by the income
approachAppraisal value based on the direct
capitalization method(1) Operating Revenue(i) Effective gross Income(ii) Losses from vacancy, etc.
(2) Operational Expenses
a. Building maintenance costs

Comments, etc.

The appraisal value is estimated using the income approachafter conducting an examination using the direct¥5,330,000,000
capitalization method based on the appraisal value indicatedby the DCF (Discount Cash Flow) method as the standard.
¥5,410,000,000
Undisclosed (Note) (i)-(ii)Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note) Sum of values listed under a. to h.
Undisclosed (Note)b. Utility expensesc. Repair expenses

Undisclosed (Note)
Undisclosed (Note)d. Property management feese. Tenant soliciting fees etc.

Undisclosed (Note)
Undisclosed (Note)

f. Taxes and public dues
g. Insurance premiums

Undisclosed (Note)
Undisclosed (Note)

h. Other expenses(3) Net operating income(4) Earnings from temporary
deposits(5) Capital expenditure
Net cash flow

Undisclosed (Note)¥230,831,084 (1)-(2)Undisclosed (Note)
Undisclosed (Note)¥227,124,587 (3)+(4)-(5)Capitalization rate

Appraisal value using the DCF
methodDiscount rate

Terminal capitalization rate

4.2% Appraised by comparing and examining several market
capitalization rates of properties in peripheral areas or insimilar districts, etc. in the same market area, by taking into
account anticipated variations in future net cash flow and by
paying attention to the relationship to the discount rate.
¥5,290,000,000
First to fifth year 4.1% Appraised by first determining the base yield of the
Sixth year and warehouse using the built-up method, etc. in reference to thethereafter 4.3% yields of financial instruments, and then by taking into
account the individual risks pertaining to the subject realestate in relation to the said base yield.
4.4% Appraised by using the capitalization rate as the standard andby evaluating the uncertainty of future projections.

Integrated value
Proportion of land
Proportion of building
Other matters for consideration by the Noneappraiser¥5,310,000,000
71.0%
29.0%

(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This is because
the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm the interests ofunitholders.

11(3) LogiSquare Mizuho A
Property no.
Ｍ-11

LogiSquare Mizuho A

Type of specified assets
Planned acquisition date

Planned acquisition price

Location

Area
Land

ZoningCategory

Outline of specified assets
Trust beneficial interest
Overvi Entrustment date
ew ofFebruary 3, 2020
Trusteetrust
benefic
ial¥2,794,000,000
Trust maturity dateinterest
896-4 Musashino, Hakonegasaki,
Mizuho-machi, Nishitama-gun,
Building structureTokyo
Completion date
13,223.33 m2
Buildin for construction
Industrial districtg
Total floor area

Building coverage
ratio/floor-area
60%/200%
ratio

Type

Type of ownership Proprietary ownership
Master lessee
CRE, Inc.

Logistics-related facilities

March 29, 2006
Mizuho Trust & Banking Co.,Ltd.
February 29, 2040
Reinforced concrete, steel
construction, alloy coated steel
sheet roof, two floors
February 5, 2007
13,755.16 m2
WarehouseType of ownership Proprietary ownership
PM Company
CRE, Inc.

Master lease agreement
Pass-throughNumber of tenants
1
Existence or non-existenceNone
Total leasable area
13,471.04 m2
of collateral
PML (probable maximum
4.75%loss) value
Features of the property:
・The property has excellent access to expressways because it is located approximately 2.6 km from Ome Interchange of the
Ken-O Expressway and approximately 14.6 km from Hachioji Interchange of the Chuo Expressway, and it is situat ed in areadily accessible location as National Route 16, a major trunk road, is approximately 1.0 km away.
・It is located almost in the middle of the Tama area of Tokyo, and it is used as a base for the wide -ranging metropolitan area by
consigners and logistics operators who require high-frequency, small-lot delivery. Distribution to the Hokuriku, Tohoku andTokai areas is also possible.
・Securing employees is relatively easy as houses are accumulated mainly in neighboring Musahimurayama -shi and Tokorozawashi, which are hinterland, and the property is located approximately 750 m from a bus stop.
・Truck berths for 20 trucks are set up almost entirely on the north side of the first floor, which is very convenient for inco mingand outcoming deliveries. In addition, the depth of the berth eave is 12.5 m and designed not to pose an obstacle to incoming
and outcoming deliveries even in inclement weather, ensuring a variety of types of incoming and outcoming delivery
operations.
・It is a two-story warehouse with the floor area of a little more than 13,000 m 2 and designed with consideration for theconvenience of tenants.
・Specifications are highly versatile with an effective ceiling height of 5.5 m and a floor weight capacity of 1.5 t/m 2 for eachfloor.
・The warehouse secures versatility, able to respond to various types of layouts inside the warehouse, with a column span of
10.2 m × 10.2 m.
・The transportation equipment inside the warehouse include four freight elevators (movable load of 4.1 t) and two dock le velers,
ensuring efficient indoor operations.
・The subject property is a build-to-suit (BTS) facility that features versatility, and the same logistics operator has been thetenant continuously since the completion. In addition, given that a tenant who is the sublessee of part of the facility has brought
in and uses refrigeration equipment, long-term use is expected.

12Notes:
While there are some findings in the fire defense equipment inspection result report, they are to be corrected at the tenant’s own
expense and risk by the time CRE REIT acquires the property.

End of July 2019100.0%End of August
2019
100.0%

Capacity utilization rate
End of September
End of October
2019
2019
100.0%
100.0%End of November
2019
100.0%End of December
2019
100.0%

Outline of leasing

LesseeType ofbusiness

Lease form

Lease period

Leased area

Rent

Security
deposit andguarantee
money

Undisclosed(Note)

Land
transportation

Fixed term
building lease

Undisclosed(Note)

13,471.04 m2

Undisclosed(Note)

Undisclosed(Note)

Rent revision
Premature
cancellation
Penalty

Not allowed.
Not allowed; Not allowed; provided, however, that premature cancellation may be approved underunavoidable circumstances of the lessee on the condition that a penalty for the premature cancellation be
paid.
Amount equivalent to rents from the first day of the month to which the day when the premature
cancellation is scheduled belongs to the expiration date of the lease period(Note) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed
due to this unavoidable reason.

Property name

Outline of real estate appraisal report
LogiSquare Mizuho A

Appraisal value
Real estate appraiser¥2,940,000,000
Daiwa Real Estate Appraisal Co., Ltd.

Date of valuation

November 30, 2019

13

Item
Appraisal value indicated by the income
approachAppraisal value based on the direct
capitalization method(1) Operating Revenue(i) Effective gross Income(ii) Losses from vacancy, etc.
(2) Operational Expenses
a. Building maintenance costs

Details

Comments, etc.
The appraisal value is estimated by conducting an
examination using the value estimated by the direct
capitalization method based on the judgment that the¥2,940,000,000
appraisal value indicated by the DCF (Discount Cash Flow)method that arrived at the value by clearly showing
variations in future net cash flow is more persuasive.
¥2,980,000,000

Undisclosed (Note) (i)-(ii)Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note) Sum of values listed under a. to h.
Undisclosed (Note)b. Utility expensesc. Repair expenses

Undisclosed (Note)
Undisclosed (Note)d. Property management feese. Tenant soliciting fees etc.

Undisclosed (Note)
Undisclosed (Note)

f. Taxes and public dues
g. Insurance premiums

Undisclosed (Note)
Undisclosed (Note)

h. Other expenses(3) Net operating income(4) Earnings from temporary
deposits(5) Capital expenditure
Net cash flow
Capitalization rate

Appraisal value using the DCF
methodDiscount rate

Terminal capitalization rate
Integrated value
Proportion of land
Proportion of building

Undisclosed (Note)¥137,227,713 (1)-(2)Undisclosed (Note)
Undisclosed (Note)¥131,191,882 (3)+(4)-(5)4.4% Appraised by reference to the capitalization rates in theappraisal of J-REIT properties in the same market area andits surrounding area by using capitalization rates ofproperties for similar use located in an area with the leastrisk as a benchmark.
¥2,920,000,000
4.2% Appraised by using a method of seeking the rate incomparison with transaction cases of similar real estate inconjunction with a method of seeking the rate by adding theindividuality of the real estate to the yields of financial
instruments.
4.6% Appraised by using the capitalization rate as the standard
and by evaluating the uncertainty of future projections.
¥2,780,000,000
63.8%
36.2%

Other matters for consideration by the Noneappraiser(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This is because
the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm the interests ofunitholders.

14(4) LogiSquare Mizuho B
Property no.
Ｍ-12

LogiSquare Mizuho B

Type of specified assets
Planned acquisition date

Planned acquisition price

Location

Area
Land

ZoningCategory

Outline of specified assets
Trust beneficial interest
Overvi Entrustment date
ew ofFebruary 3, 2020
Trusteetrust
benefic
ial¥3,584,000,000
Trust maturity dateinterest
896-3
Musashino,
Hakonegasaki, Mizuho-machi,
Building structure
Nishitama-gun, Tokyo
Completion date
15,371.92 m2
Buildin for construction
Industrial districtg
Total floor area

Building coverage
ratio/floor-area
60%/200%
ratio
Type of ownership
Master lessee

Type

Proprietary ownership
CRE, Inc.

Logistics-related facilities

March 29, 2006
Mizuho Trust & Banking Co.,Ltd.
February 29, 2040
Reinforced concrete, steel
construction, alloy coated steel
sheet roof, two floors
February 5, 2007
16,016.37 m2
WarehouseType of ownership Proprietary ownership
PM Company
CRE, Inc.

Master lease agreement
Pass-throughNumber of tenants
1
Existence or non-existence ofNone
Total leasable area
15,708.00 m2
collateral
PML (probable maximum
4.75%loss) value
Features of the property:
・The property has excellent access to expressways because it is located approximately 2.6 km from Ome Interchange of the
Ken-O Expressway and approximately 14.6 km from Hachioji Interchange of the Chuo Expressway, and it is situated in areadily accessible location as National Route 16, a major trunk road, is approximately 1.0 km away.
・It is located almost in the middle of the Tama area of Tokyo, and it is used as a base for the wide -ranging metropolitan area by
consigners and logistics operators who require high-frequency, small-lot delivery. Distribution to the Hokuriku, Tohoku andTokai areas is also possible.
・Securing employees is relatively easy as houses are accumulated mainly in neighboring Musahimurayama -shi and Tokorozawashi, which are hinterland, and the property is located approximately 750 m from a bus stop.
・Truck berths for 22 trucks are set up almost entirely on the north side of the first floor, which is very convenient for inco mingand outcoming deliveries. In addition, the depth of the berth eave is 11.0 m and designed not to pose an obstacle to incoming
and outcoming deliveries even in inclement weather, ensuring a variety of types of incoming and outcoming delivery
operations.
・It is a two-story warehouse with the floor area of a little more than 15,000 m2 and designed with consideration for theconvenience of tenants.
・Specifications are highly versatile with an effective ceiling height of 5.5 m and a floor weight capacity of 1.5 t/m 2 for eachfloor.
・The warehouse secures versatility, able to respond to various types of layouts inside the warehouse, with a column span of
10.2 m × 10.2 m.
・The transportation equipment inside the warehouse include two freight elevators (movable load of 4.1 t), two vertical carriermachines and two dock levelers, ensuring efficient indoor operations.
・The subject property is a build-to-suit (BTS) facility that features versatility, and the same logistics operator has been thetenant continuously since the completion.
Notes:
Not applicable.

15

End of July 2019100.0%End of August
2019
100.0%

Capacity utilization rate
End of September
End of October
2019
2019
100.0%
100.0%End of November
2019
100.0%End of December
2019
100.0%

Rent

Security
deposit andguaranteemoney

Outline of leasing

LesseeUndisclosed(Note)

Rent revision

Premature
cancellation
Penalty

Type ofbusiness

Lease form

Lease period

Leased area

Land
Fixed term
Undisclosed
Undisclosed
Undisclosed
transporta
15,708.00 m2
building lease(Note)(Note)(Note)
tion
Rent revision is allowed by mutual consent upon consultation if there are significant changes in
economic conditions such as fluctuations in prices, an increase/decrease in taxes and dues on land andbuilding, and fluctuations in rents on neighboring land and buildings when five years have passed since
the commencement date of leasing and every five years subsequently.
Not allowed; provided, however, that premature cancellation may be approved under unavoidable
circumstances of the lessee on the condition that the intent of the premature cancellation is notified inwriting no later than six months before the intended date of premature cancellation and that a penalty forthe premature cancellation be paid.
―(Note) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed
due to this unavoidable reason.

16

Outline of real estate appraisal report
Property name
LogiSquare Mizuho B
Appraisal value¥3,760,000,000
Real estate appraiser
Daiwa Real Estate Appraisal Co., Ltd.
Date of valuation
November 30, 2019
Item
Details
Comments, etc.
Appraisal value indicated by the income
The appraisal value is estimated by conducting anapproachexamination using the value estimated by the direct
capitalization method based on the judgment that the¥3,760,000,000
appraisal value indicated by the DCF (Discount Cash Flow)method that arrived at the value by clearly showing
variations in future net cash flow is more persuasive.
Appraisal value based on the direct¥3,790,000,000
capitalization method(1) Operating Revenue
Undisclosed (Note) (i)-(ii)(i) Effective gross Income
Undisclosed (Note)(ii) Losses from vacancy, etc.
Undisclosed (Note)(2) Operational Expenses
Undisclosed (Note) Sum of values listed under a. to h.
a. Building maintenance costs
Undisclosed (Note)b. Utility expenses
Undisclosed (Note)c. Repair expenses
Undisclosed (Note)d. Property management fees
Undisclosed (Note)e. Tenant soliciting fees etc.
Undisclosed (Note)
f. Taxes and public dues
Undisclosed (Note)
g. Insurance premiums
Undisclosed (Note)
h. Other expenses
Undisclosed (Note)(3) Net operating income¥171,246,755 (1)-(2)(4) Earnings from temporary
Undisclosed (Note)
deposits(5) Capital expenditure
Undisclosed (Note)
Net cash flow
¥166,966,284 (3)+(4)-(5)Capitalization rate
4.4% Appraised by reference to the capitalization rates in theappraisal of J-REIT properties in the same market area andits surrounding area by using capitalization rates ofproperties for similar use located in an area with the leastrisk as a benchmark.
Appraisal value using the DCF¥3,740,000,000
methodDiscount rate
4.2% Appraised by using a method of seeking the rate incomparison with transaction cases of similar real estate inconjunction with a method of seeking the rate by adding theindividuality of the real estate to the yields of financial
instruments.
Terminal capitalization rate
4.6% Appraised by using the capitalization rate as the standard
and by evaluating the uncertainty of future projections.
Integrated value¥3,210,000,000
Proportion of land
64.2%
Proportion of building
35.8%
Other matters for consideration by the Noneappraiser(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This is because
the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm the interests ofunitholders.

174. Seller profile
The seller of the Assets to Be Acquired is a domestic leasing company, but the inform ation has not been
disclosed as consent for disclosure has not been obtained from the seller. The seller does not fall under a personwith special interest in CRE REIT and the Asset Management Company.
5. Interested-party transaction
As the master lessee and the property management company of the four properties that are the Assets to be
Acquired, CRE qualifies as an interested party in accordance with the Regulations for Transactions with
Interested Parties, which are the internal regulations of the Asset Management Company. Consequently, theAsset Management Company is following the decision-making procedures set forth in the said Regulations forTransactions with Interested Parties for executing transactions for the acquisition of assets.
6. Status of owners, etc. of the properties
Disclosure is omitted as the properties are not acquired from a person with special interest in CRE REIT
and the Asset Management Company or a person who is thought to be equivalent to a person with special
interest in CRE REIT and the Asset Management Company.
7. Brokerage
Not applicable.
8. Future Outlook
The acquisition of the Assets to be Acquired is scheduled to be implemented on February 3, 2020, and it
will have no impact on the operating results for the fiscal period ending December 31, 2019. For informationon the outlook of the operating results of CRE REIT for the periods ending June 30, 2020 and December 31,
2020, please refer to the “Notice Concerning Revision of Forecasts of Operating Results for th e Period ending
June 30, 2020 and Forecasts of Operating Results for the Period ending December 31, 2020,” announced on
January 7, 2020.

* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/

18