[For Translation Purposes Only]

September 23, 2020

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.
Koki Miura, President & Chief Executive Officer
Inquiries:

Hiroshi Ishigooka
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Property Acquisition
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 Fundto provide asset management services, to acquire a property (the “Acquisition”), as described below.

1. Overview of the Acquisitions
Property Name

Use

Date of
Purchase andSale Agreement

Scheduled
Date of
Acquisition

SellerOctober 1,
2020

Nomura Real
EstateDevelopment,
Co., Ltd.

AnticipatedAcquisitionPrice(¥ million)(Note 1)

Landport Ome II(Note 1)
(Note 2)

Logistics

September 23,
2020

14,620

The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption
tax.
There is no brokerage involved in the acquisition of the assets to be acquired.

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

2. Reasons for the Acquisition
The Fund determined that acquiring the Asset to be Acquired 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 of Incorporation.
The main strengths of the Asset to be Acquired are as follows.
・ The Asset to be Acquired is in a favorable location allowing for wide-area delivery to the entire Tokyo
metropolitan area as it is located approximately 2.4 km from the Ome Interchange on the Ken-O Expressway
and close to National Route 16.
・ The Asset to be Acquired is located in the Nishi-Tokyo Industrial Park, which is a 10-minute walk from Ozaku
Station on the JR Ome Line, the nearest station, so it can operate 24 hours a day, 365 days a year and allows- 1 -tenants to maintain a favorable employment environment.
・ The Asset to be Acquired is a three-story slope facility where cars can park at two berths (Note1) on the northand south sides of the first floor and a berth on the second floor. The interior of the building is equippedwith two freight elevators and five vertical conveyors. The building also offers improved rack storage
efficiency (Note1) by adopting a 10.5 m × 10.5 m grid (Note1) and a beam effective height of 6.5 m, and isenvironmentally friendly by adopting LED lighting in the whole building. In addition to the versatile specifications
that ensure high operational efficiency, the building is a logistics facility that pursues optimization and efficiency
by adopting a category-wide multi-function (Note2) that adds functions specific to the target tenant’s industry needs.
(Note 1) A “berth” is a space where cargo trucks can stop for loading and unloading, a “grid” is a lattice-shaped space formedby pillars and joints, and “rack storage efficiency” refers to the storage efficiency of a rack.
(Note 2) A “category-wide multi-function” refers to a logistics facility which identifies the industry (category) of the target
tenant and adds functions specific to the category as standard specifications in the general specifications.

3. Summary of the Assets 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)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note 5)

Notes

AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 6)

Landport Ome II
Real estate
2-9-13, Suehiro-cho, Ome City, Tokyo
2-9-13, Suehiro-cho, Ome City, Tokyo(Note 2)
2.4 km from the Ome Interchange on the Ken-O Expressway
10-minute walk from Ozaku Station on the JR Ome Line
February 20, 2020
Warehouse
RC, Alloy plating copper roofing 3F
The Zenitaka Corporation, Class 1 Architect Office
The Zenitaka Corporation
Japan Constructive Inspect Association
40,826.67 m2
63,879.98 m2
Ownership
Ownership
70% (Note 3)
200%
None
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
－－
3.06% (Based on the Earthquake PML Appraisal Report as of August 2020 by
Sompo Risk Management Inc.)
・The property management companies, Nomura Real Estate Development Co.,
Ltd. and Nomura Real Estate Partners, Co., Ltd., are each considered a related
party under the Act on Investment Trusts and Investment Corporations(“Investment Trust Act”).
・A part of the land of the Asset to be Acquired is the servient land for the easementof entering the land for the purpose of the installation and maintenance of electric
cables.
¥14,620 million¥15,100 million (Based on the capitalization approach as of September 1, 2020)(Appraiser: Japan Valuers Co., Ltd.)¥672 million- 2 -Leasing Status (As of September 23, 2020) (Note 7)
Total Number of Tenants
Name of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 8)1
Not disclosed
Not disclosed
Not disclosed
100.0%
63,748.85 m2
63,748.85 m2
August2016—

August2017

August2018—

August2019——

August2020
100.0%(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) Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
(Note 3) Building Coverage Ratio
The Asset to be Acquired is located in an industrial zone where the building coverage ratio is 60% in principle. Because
the Asset to be Acquired is in a corner lot, however, the applied coverage ratio is 70%.
(Note 4) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 5) PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is
expected to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated periodof use (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith September 1, 2020 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is the total number of end tenant actually leasing space in the building of the Asset to be
Acquired as of today.
“Name of Tenants”, “Total Rental Income (annual)” and “Security Deposits” are not disclosed because consent of theend tenant to such disclosure has not been obtained.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of today by Total Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of today.
“Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities, residential facilities,
hotels, etc. within the Asset to be Acquired that can be leased as of today (If the common area, etc. is leased, the floor
space thereof is included).
(Note 8) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2020 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

4. Profile of Seller of the Assets to be Acquired
Company Name

Nomura Real Estate Development Co., Ltd.

Head Office

1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Representative

Seiichi Miyajima, President & CEO

Principal Business

Real Estate

Capital¥2,000 million (as of April 1, 2020)

Established

April 15, 1957

Net Assets¥184.5 billion (as of March 31, 2020)

Total Assets¥1,298.0 billion (as of March 31, 2020)

Major Shareholder
Nomura Real Estate Holdings, Inc. (100.0%) (as of March 31, 2020)(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller
Capital

Nomura Real Estate Development Co., Ltd. holds 4.47% of the Fund’s investment- 3 -Personal

Transactions

Related Party
Statusunits (as of February 29, 2020). As a wholly owned subsidiary of Nomura Real
Estate Holdings, Inc., which also holds 100% interests in the shares of the AssetManagement Company, Nomura Real Estate Development Co., Ltd. is a related partyof the Asset Management Company as defined in the Investment Trust Act.
The Asset Management Company’s employees and officers are seconded from
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd. is a property management company of
the Fund and a lessee of real estate properties owned by the Fund. Moreover, theAsset Management Company has entered into an agreement on provision of
information and a basic agreement on the leasing value chain with the said company.
Nomura Real Estate Development Co., Ltd. does not fall under the definition of a
related party of the Fund for the accounting purpose. However, the said company isa related party of the Asset Management Company as it is a subsidiary of a common
parent company, as stated above.

5. Status of Owner of the Assets to be Acquired
Status of Owner

Current Owner and/or Trustee

Company Name

Nomura Real Estate Development
Co., Ltd.

Relationship with Parties

Please refer to “4. Profile of Seller

with Special Interestof the Assets to be Acquired”

Previous Owner and/or Trustee
—

—

above
Background/Reasons for
Acquisition, etc.

For development for later sale

—

—

—

Acquisition Price(Including Other RelatedExpenses)Acquisition Date

(Note)——(Note) Omitted because, for the land, the current owner owned for more than one year, and, for the building, there is no previous owner.

6. Transactions with Related Parties(1) Transactions related to the acquisition of the Assets to be Acquired
The acquisition of the Assets to be Acquired is considered to fall under transactions with a related party underthe Investment Trust Act as stated above. Accordingly, the acquisitions of each property, the acquisition prices,and other relevant terms have been duly examined and authorized by the Asset Management Company’s
compliance committee and investment committee pursuant to its investment committee rules, rules ofcompliance, compliance manual, rules concerning transactions with related parties, and other relevant internal
rules and guidelines.
(2) The property management of Landport Ome II
The property management companies of Landport Ome II, Nomura Real Estate Development Co., Ltd. andNomura Real Estate Partners Co., Ltd., are each considered to fall under a related party under the Investment
Trust Act as stated above. Accordingly, the fees and other terms of the consignment of property management
related to Landport Ome II have been duly examined and authorized by the Asset Management Company’s
compliance committee and investment committee pursuant to its investment committee rules, rules ofcompliance, compliance manual, rules concerning transactions with related parties, and other relevant internal
rules and guidelines.
Since none of the transactions described in (1) and (2) above falls under the category of transactions- 4 -between the Fund and a related party of an asset management company as set forth in Article 201-2,
Paragraph 1 of the Investment Trust Act, the approval of the Board of Directors of the Fund has not beenobtained.

7. Form of Payment, etc.
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
September 23, 2020

Conclusion of purchase and sale agreements for the Asset to be Acquired

October 1, 2020

Acquisition of Landport Ome II (delivery of real estate)

9. Outlook
The impact of the Acquisition on the NMF’s forecast of the financial results for the fiscal period ending
February 28, 2021 (September 1, 2020 to February 28, 2021) is assumed to be insignificant. Therefore, NMF will
announce the forecasts of financial results for the fiscal period ending February 28, 2021 (September 1, 2020 toFebruary 28, 2021) in which the impact of the Acquisition incorporated, taking the operating status of the entire
portfolio into consideration, at the time of the announcement of the summary of financial results for the 10th
fiscal period ended August 31, 2020 scheduled for October 14, 2020.

- 5 -10. Appraisal Summary
Property Name

Landport Ome II

Appraisal Value¥15,100,000,000

Appraiser

Japan Valuers Co., ltd.

Appraisal Date

September 1, 2020
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

Grounds

15,100,000,000

Price Calculated by the Direct
Capitalization Approach

15,700,000,000(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

Undisclosed
Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management
Fees
Advertisementfor

Leasing Costs, etc.

Undisclosed
Undisclosed
Undisclosed(Note)
Undisclosed
Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Management

Undisclosedof Temporary Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable net
revenue over the medium to long term by thecapitalization rate.

672,951,600
Undisclosed(Note)
Undisclosed
675,797,307

4.3%

Calculated by considering the yield of surrounding
property transactions, with reference to thecharacteristics of the area surrounding the property
and the property’s particular characteristics.

14,900,000,000
4.1%

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the property’s specific characteristics.

- 6 -Terminal Capitalization Rate
4.5%

Cost Approach Price
Ratio of Land

Calculated based on a comprehensive consideration ofsuch factors as the yield on investment in similarbuildings, the probable future movement of the yield
on investment, risks of the property as an investment,
general forecasts of the economic growth rate andprice trends in real estate and rents.

17,100,000,000
63.9%

Ratio of Building
36.1%
The neighborhood area is an industrial area with large-scale factories for metals, machineryand other products, as well as large-scale logistics facilities. Its local characteristics ofMatters
Noted
in having excellent connection and accessibility to the central Tokyo and the Saitama andChiba areas constitute factors that greatly contribute to demonstrating the utility of using
Reconciliationofland as an industrial park.
Indicated Value and Under such locational conditions, the Building is a recently constructed logistics facility with
Determinationof high versatility and functionality. This facility is capable of meeting the locational needs oflogistics bases in a variety of industries, and can be judged as being capable of stable
Appraisal Value
operation over the medium to long term. In consideration of the above, the appraisal value
was determined with an emphasis on the value indicated by income capitalization, whichappropriately reflects the profit value of investment.
(Note) These items contain information for which the Fund owes a duty of confidentiality to the lessees or information that could be
used to calculate such information. The disclosure of these items could result in a breach of said duty of confidentiality, which
could negatively impact the Fund and thus the interests of its unitholders. Accordingly, these items are undisclosed.

Exhibits
Exhibit 1 Overview of the Portfolio after the Acquisition
Exhibit 2 Photos and Maps 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 Acquisitions(¥ million)
Area

Greater Tokyo
Area (Note 1)

Sector(Anticipated) Total
Other Areas

Acquisition Price(by Sector)

Investment Ratio(%) (Note 2)

Office401,655

71,930473,585

44.4

Retail111,626

66,716

178,342

16.7

Logistics

197,7223,460

201,182

18.9

Residential

168,719

33,328202,047

18.9

Hotels

―

6,250

6,250

0.6

Others

4,900

―

4,900

0.5

(Anticipated)
Total Acquisition Price(by Area)

884,622

181,684

1,066,306

100.0

83.0

17.0

100.0

Investment Ratio (%)(Note 2)

(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 andtheir 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 Access Map of the Assets to be Acquired
Landport Ome II