[For Translation Purposes Only]

August 6, 2024

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Shuhei Yoshida, Executive Director
Asset Management Company: Nomura Real Estate Asset Management Co., Ltd.
Masaomi Katayama, President & Chief Executive Officer
Inquiries: Hiroyuki Masuko
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Acquisition of Property in Japan
Nomura Real Estate Master Fund, Inc. (“NMF” or the “Fund”) announces the decision made today by Nomura Real
Estate Asset Management Co., Ltd., a licensed asset management company retained by the Fund to provide asset
management services, to acquire a property (the “Acquisition”), as described below.

1.

Summary of Asset to Be Acquired

Property Name

La’gent Stay Hakodate
Ekimae/HAKOViVA

Use

Hotels/RetailScheduled Dateof Purchase andSales Agreement
August 9,
2024

Scheduled Dateof Acquisition

Seller

September 6,
2024

DAIWA
HOUSE
INDUST
RY
CO.,LTD.

Presence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note 1)

None

6,300

(Note1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.

The above property to be acquired is referred to hereinafter as the “Asset to be Acquired.”2.

Reasons for the Acquisition
The Fund determined that the Acquisition would help secure stable income and steady growth of the Fund’s portfolio
over the medium to long term in line with the asset management objectives and policies specified in the Fund’s Articles ofIncorporation.
The business condition of the Asset to be Acquired is on an upward trend as demand for accommodation in Japan isrecovering due to lifting of the border measures including entry restrictions for foreign nationals in April 2023. In April
2024, the total number of overnight guests, including international visitors, marked an increase of 2.3% against pre-COVID
figures of the same month in 2019 (Note 1). Moreover, the Japan Tourism Agency promotes strategies to create sustainable
tourism destinations and recover inbound tourism, and aims to increase the number of international visitors to Japan toapprox. 60 million in 2030 (Note 3), compared to 25 million in 2023 (Note 2). Hakodate City also aims to increase the average
number of nights stayed per visitor by revitalizing the tourism industry (Note 4), and further growth is expected going forward
thanks to stronger demand.
Please refer to 3. Summary of Asset to Be Acquired below for details of the reasons for acquisition of Asset to be
Acquired.
(Note 1) Source: Overnight Travel Statistics Survey announced on June 28, 2024, Japan Tourism Agency(Note 2) Source: Number of international travelers to Japan announced on January 17, 2024, Japan National Tourism Organization(Note 3) Source: Tourism Nation Promotion Basic Plan announced on March 31, 2023, Japan Tourism Agency(Note 4) Source: Hakodate City Tourism Basic Plan announced on March 28, 2024, Hakodat e City

－ １ －

3.

Summary of Asset to Be Acquired
La’gent Stay Hakodate Ekimae/HAKOViVA＜Reasons for the Acquisition of the Asset＞
The main strengths of the Asset to be Acquired are as follows.
・Hakodate City, where the Asset is located, is the second largest city in Hokkaido in terms of the total numberof overnight stays following Sapporo City (Note 1), and is full of tourist attractions such as Mount Hakodate(Hakodateyama), Kanemori Red Brick Warehouse, Daimon Yokocho, and Goryokaku Fort, as well as natural
resources such as seafood. Solid tourism demand is expected going forward. The Asset is located 1 -minute walkfrom JR Hakodate Station, the main station of Hakodate, and in a highly convenie nt area where bus stations
and stops of city trams for a city tour are located in front of Hakodate Station. The surrounding area is a gate
to the Hakodate Bay area, one of the famous tourist spots in Hakodate. A tour can be taken from Hakodate
Morning Market (Hakodate Asaichi) to Kanemori Red Brick Warehouse and Mount Hakodate, and highly
accessible to Goryokaku Fort by bus or tram.
(Note 1) Source: Report on the Survey of Total Number of Overnight Stays in Hokkaido announced in September 2023 by the
Tourist Promotion Section, Tourism Bureau, Department of Economic Affairs, Hokkaido Government

・The Asset has 261 rooms of various types ranging from approx. 16 ㎡ to 160 ㎡ in size, comprising Japanese-styletatami rooms, condominium rooms with kitchen facilities, and others to address diverse needs. The average room
size is approx. 24 ㎡ and 90% of the rooms can accommodate more than 2 guests, which is a better roomcomposition to draw in tourists. In addition to a large venue for breakfast, a public bath sourced from natural hot
springs and bars, etc., a convenience store and other facilities are located on the first floor of the hotel.
“HAKOViVA,” the commercial complex facility in the site, has various kinds of restaurants and a sports gym tosatisfy the various needs of guests.
・The Asset is operated by AB Accommo Co., Ltd. which has built track record by operating 26 hotels
nationwide (as of May 31, 2024 according to its webpage) and stable operation can be expected with its
operational expertise of hotel chains.

＜Summary of the Asset to be Acquired＞
Property Name
Type of AssetRegistry

Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Building
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio

La’gent Stay Hakodate Ekimae/HAKOViVA
Real estate43-5 (and two other parcels of land) Wakamatsu-cho, Hakodate City,
Hokkaido12-8 Wakamatsu-cho, Hakodate City, Hokkaido
1-minute walk from Hakodate Station on the JR Hakodate Main Line
October 11, 2019
Hotel, retail, gymnasium
11-floor steel-reinforced concrete structure with a roof, 2-floor wooden
structure with a galvanized steel sheet roof
Keiichi Nihonyanagi Architect & Associates
IWATA CHIZAKI, Morikawa, Imai and Sawada Special Construction Joint
VentureHakodate City building officials
9,516.73 m2
13,302.87 m2
Land lease right(Note 2)
Ownership
80%
400%
－ ２ －

Collateral
Property Management Company(Note 3)None
JLL Retail Management K.K.

Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)JLL Retail Management K.K. (other than hotels)
Pass through
4.1% (Based on the Earthquake PML Appraisal Report as of May 2024 by(Note 4)
Sompo Risk Management Inc.)
In signing a contract for the purpose of the right of lease or any other rightto use and derive profit from the subject property, a prior consent of the land
Notes
leasehold contract lessor is necessary (this refers to signing a new master lease
for the Asset and excludes leasing a part of the Asset to end tenants).
Anticipated Acquisition Price¥6,300 million¥8,500 million (Based on the capitalization approach as of June 1, 2024)
Appraisal Value and Method(Appraiser: The Tanizawa SōGō Appraisal Co.,Ltd.)
Appraisal NOI (Note 5)¥502 million
Leasing Status (As of May 31,2024) (Note 6)
Total Number of Tenants
15
Name of Tenant
AB Accommo Co., Ltd., etc.
Hotel Operator
AB Accommo Co., Ltd.
Hotel
Variable rent linked to Hotel GOP
Total Rental Income (Annual)
Retail
¥76 million
Hotel
Security Deposits
Retail¥20 million
Occupancy Rate
99.0%
Total Leased Floor Space
12,688.73 m2
Total Leasable Floor Space
12,810.96 m2
May
May
May
May
May
Historical Occupancy Rates
2020
2021
2022
2023
2024
(Note 7)
99.0%
99.0%
99.0%
99.0%
99.0%
(Note 1) Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Land leasehold contract
Lessors: Hakodate City 6,412.79 m2, Hokkaido Railway Company 3,103.94 m2
Type of leasehold: Business periodic leasehold interest in land
Leasehold period: From March 15, 2018 to March 12, 2068
(Note 3) Property Management Company
Property Management Company refers to the one that is scheduled to be appointed after acquisition.
(Note 4) PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50 years with 10%
probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building) as a ratio (percentage) of the
expected recovery cost to the replacement cost.
(Note 5) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with April 1, 2024
as the appraisal date.
(Note 6) Leasing Status“Name of Tenant” is based on the fixed-term lease agreement that is expected to go into effect on the date of acquisition.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the leaseagreements with the end tenants actually leasing space in the building of the Asset as of May 31, 2024 (rounded down to the nearest
million yen). The figure does not include any other incidental rent that may be agreed upon in connection with the said lease agreements,
such as parking fees, signboard fees and warehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen).
Total Rental Income and Security Deposits of which related to the Hotel are not disclosed because a consent has not been obtained fromtenants.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of May 31, 2024.
(Note 7) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller.

－ ３ －

4.

Profile of Seller of the Asset to be Acquired

Company Name
Head Office
Representative
Principal Business

DAIWA HOUSE INDUSTRY CO.,LTD.
3-3-5 Umeda, Kita-ku, Osaka City, Osaka
Keiichi Yoshii, President, CEOGeneral Construction Business
Capital¥161,957 million(As of March 31, 2024)
EstablishedMarch 4, 1947
Net Assets¥1,742,474 million(As of March 31, 2024)
Total Assets¥4,155,476 million(As of March 31, 2024)
The Master Trust Bank of Japan, Ltd. (trust account) (15.1%)
Major Shareholder
Custody Bank of Japan, Ltd. (trust account) (6.6%）(Shareholding Ratio)(As of March 31, 2024)
Relationships with the Fund and/or the Asset Management Company and the Seller
Neither the Fund nor the Asset Management Company has any capital relationship withthe said company. In addition, any persons or companies associated with the Fund or the
CapitalAsset Management Company have no notable capital relationship with those associatedwith the relevant company.
Neither the Fund nor the Asset Management Company has any personal relationship withthe said company. In addition, any persons or companies associated with the Fund or the
Personal
Asset Management Company have no notable personal relationship with those associatedwith the relevant company.
Neither the Fund nor the Asset Management Company has any notable transactions withthe said company. In addition, any persons or companies associated with the Fund or theTransactions
Asset Management Company have no notable transactions with those associated with therelevant company.
The said company does not fall under the definition of a related party of the Fund or theRelated Party Asset Management Company for the accounting purpose. In addition, any persons or
Statuscompanies associated with the said company does not fall under the definition of a related
party of the Fund or the Asset Management Company for the accounting purpose.

5.

Status of Owner of the Asset to be Acquired
The Asset to be Acquired is not acquired from parties who have special interests in the Fund or the Asset Management
Company.

6.

Transactions with Related Parties
There is no transaction with related parties.

7.

Form of Payment, etc.
Regarding the acquisition, The Fund will complete settlement by a lump-sum payment on the date of acquisition by
paying the agreed price for the property in full to the seller using cash on hand.

8.

Schedule for the Acquisition
August 9,2024

Conclusion of a purchase agreement for the acquisition of the Assets

September 6, 2024

Acquisition of the Assets to be Acquired
－ ４ －

9.

Outlook
Since the Acquisition will be made after the end of the fiscal period ending August 2024 (March 1, 2024 to August 31,2024), there will be no impact on the operating status for the fiscal period ending August 2024. Also, as the effect of thedisposition on the operating status of the entire portfolio for the fiscal period ending February 2025 (September 1, 2024 to
February 28, 2025) is immaterial, there is currently no change in the outlook for the fiscal period ending February 2025.

－ ５ －10. Appraisal Summary
Property Name

La’gent Stay Hakodate Ekimae/HAKOViVAAppraisal Value¥8,500,000,000

Appraiser

The Tanizawa SōGō Appraisal Co.,Ltd.

Appraisal Date

June 1, 2024

(Yen)
Amount orPercentage

Item

Capitalization Approach Price

Grounds

8,500,000,000

Price Calculated by the Direct Capitalization
Approach (Revised Inwood Method)(1) Operating Income (a) -b))a) Gross Rental Incomeb) Losses due to Vacancies, etc.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

9,010,000,000
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Repair Costs
Property Management Fees
Advertisement for Leasing
Taxes
Insurance Premium
Other Expenses(3) Net Operating Income from Leasing
Business (NOI＝(1)-(2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Undisclosed(Undisclosed)

Undisclosed(Undisclosed)

487,006,368

5.1%

Price Calculated by the Discounted Cash Flow
Approach
Discount Rate (during holding period)

A base yield for the hotel was set by a cost approach,etc. based on the yields of financial instruments andthen calculated by incorporating individual risks ofthe property to this base yield and reviewing trading
comps.

8,500,000,000

5.1%

Discount Rate (Calculated sales price)

Ratio of Land
Ratio of Building
Ratio of FF&E

(Undisclosed)

502,693,154(7) Discount Rate

Cost Approach Price

As income-based value derived by clarifying thefluctuation estimate of net operating income using a
discounted cash flow approach is more convincing,a direct capitalization approach (revised inwood
method) was used just as a reference. Income-basedvalue was calculated by a discounted cash flow
approach as the baseline.

5.3%
5,580,000,000
48.8%
50.0%
1.2%

－ ６ －

A base yield for the hotel was set by a cost approach,etc. based on the yields of financial instruments andthen calculated by incorporating individual risks ofthe property to this base yield and reviewing trading
comps.
Calculated based on the discount rate during theholding period, with consideration given to levels of
future uncertainty

Matters Noted in Reconciliation of Indicated
Value and Determination of Appraisal Value

The property is located approx. 1-minute walk from Hakodate Station on the JR Hakodate MainLine (Hakodate Honsen). The surrounding area has become a main commercial area in Hakodate
City following the large-scale land readjustment project launched around 2000. It has become a maincommercial area visited by tourists in and outside Japan, equally famous as the area in front of
Goryokaku Fort. It is expected to grow stably as a commercial area. On the hardware aspect, mostof all 261 rooms are twin-types with a room size of over 20 m2, and rooms such as family-type andsuites allow to actively capture leisure demand. The public bath fully equipped with saunas is one ofits features. The appraisal value was determined taking the above factors into consideration.

(Note) The information that is subject to a confidentiality obligation to the lessee and information that can be used to calculate the said information
is included. Therefore, that information is not disclosed because disclosure of such information may cause a disadvantage to NMF due to abreach of confidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Acquisition

Exhibit 2

Photos and Map of the Asset to be acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ ７ －Exhibit 1
Overview of the Portfolio after the Acquisition（¥ million）
Area
SectorGreater Tokyo Area

Others(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

Acquisition Price(%)(by Sector)(Note 2)

Office379,175

65,100444,275

40.1

Logistics

237,992

3,460

241,452

21.8

Residential(including healthcare
facilities)

189,833

27,934

217,767

19.6

Retail111,768

67,890179,659

16.2

Hotels

2,360

17,911

20,271

1.8

Others

4,900

―

4,900

0.4

(Anticipated) Total
Acquisition Price(by Area)

926,029

182,296

1,108,325

100.0

16.4

100.0

Investment Ratio (%)(Note 2)

83.6

(Note 1) “Greater Tokyo Area” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama 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 those in Greater Tokyo Area.
(Note 2) “Investment Ratio” indicates the ratio of the (anticipated) total acquisition price of properties for each use or in each area to the(anticipated) total acquisition price of the entire portfolio. As the figures are rounded to the first decimal place, they may not add up to
exactly 100%.

Exhibit 2
Photos and Map of the Asset to be acquired
La’gent Stay Hakodate Ekimae/HAKOViVA
Overview of Hotel and Commercial Complex

Commercial complex

Guest room

Natural hot spring(large public bath)
Pon-no-yu