June 29, 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 Japanand Leasing
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 June 29, 2020 to acquire the trust benefici alinterests in the following properties (hereinafter the “Assets to Be Acquired”) and to conduct theleasing thereof.
Because CRE, Inc. (hereinafter “CRE”), the seller and the lessee of the Assets to Be Acquired, isan interested person under the Act on Investment Trusts and Investment Corporations (Act No. 198of 1951 as amended, hereinafter the “Investment Trust Act”), the Asset Management Company has
obtained the consent of CRE REIT with the approval of a meeting of the Board of Directors of CRE
REIT held today based on the Investment Trust Act. In addition, because CRE is an interested party
under the Regulations for Transactions with Interested Parties, which is a set of internal regulations
for the Asset Management Company, the Asset Management Company has taken the decision-making
procedures stipulated in the Regulations for Transactions with Interested Parties for acquiring assets
and conducting lease transactions.

1． Overview of the acquisition
Property
Categoryno.

Logisticsrelated
facilities

Property name

Ｍ-13

LogiSquare Ageo

Ｍ-14

LogiSquare Miyoshi

Ｏ-２

LogiSquare Chitose

Total / Average (3 properties)

Location

Ageo-shi,
SaitamaMiyoshi-machi,
Saitama
Chitose-shi,
Hokkaido―

1

SellerPlannedAppraisedacquisition
NOI yield
price(%)(Million yen)
(Note 2)
(Note 1)

CRE

4,908

4.7

CRE

11,700

4.6

CRE

1,300

6.5

―

17,9084.8

(Note 1) “Planned acquisition price” is the purchase price of each Asset to Be Acquired as set forth in the agreement for sal eand purchase of the said Asset to Be Acquired. The purchase price does not include national and local consumption
taxes or acquisition costs and is rounded down to the nearest million yen. The same applies hereinafter.
(Note 2) “Appraised NOI yield” is the ratio expressed as a percentage of the appraised NOI of each Asset to Be Acquired tothe planned acquisition price (meaning the net operating income (NOI) that is obtained by deducting operating
expenses from operating revenue stated in real estate appraisal reports, and it is income before deducting
depreciation. It is different from net cash flow (NCF), which is obtained by dedu cting security deposits and otherearnings as well as capital expenditure from NOI. The same applies 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 Ass et to Be
Acquired to the sum of the planned acquisition prices of the Assets to Be Acquired, rounded to the first decimal
place. Appraised NOI yield and average appraised NOI yield have been calculated by the Asset Management
Company and do not represent the figures shown in the real estate appraisal reports. The actual values after theacquisition of the Assets to Be Acquired by CRE REIT may differ from those shown in this text.

(1) Sales and purchase agreement date / Date of determination of planned acqui sition: June 29,
2020(2) Payment date / Planned acquisition date (Note 1): July 13, 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 June 29, 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) “Payment date” and “Planned acquisition date” are the execution date of the transfer of each trust beneficiary rightdescribed in the sales and purchase agreement concerning each Asset to Be Acquired. However, the payment date
and the planned acquisition date may be changed in line with changes in the payment date for the issu ance of new
investment units in the primary offering stated in the “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” published today. The same applies hereinafter.
(Note 2) For more details, please refer to “Notice Concerning Issuance of New Investment Units and Secondary Offering ofInvestment Units” dated June 29, 2020.
(Note 3) For more details, please refer to “Notice Concerning Borrowing of Funds (New Borrowings and Refinancing)” dated
June 29, 2020.

2． Reasons for the acquisition and leasing
The Assets to Be Acquired are logistics-related facilities developed by CRE, the sponsor, and aresituated in locations suited to logistics. Bearing the high-quality brand name "LogiSquare" (Note),the facilities are universal and expandable to allow use by a range of tenants. The acquisition andleasing will be conducted with the aim of enhancing the portfolio of CRE REIT in accordance with its
Articles of Incorporation and improving unitholder values based on the policies of "Long-term, stableasset 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 diversify the portfolio and create stable,
long-lasting cash distribution backed by long-term lease agreements that generate cash flow. CRE
REIT believes that these characteristics will contribute to the realization of unitholder valueenhancement.
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 theIssuer of Real Estate Investment Trust Units and Related Parties submitted to Tokyo Stock Exchange

2on March 24, 2020.
(Note) Developed by CRE or Commercial RE Co., Ltd. before its business transfer to CRE (CRE took over the master leasebusiness and the lease management business of Commercial RE Co., Ltd. in August 2010), "LogiSquare" is the nameof quality logistics-related facilities that meet tenant needs. The same applies hereinafter.

3． Details of the Assets to Be Acquired
An overview of the trust beneficial interests in real estate, the Assets to Be Acquired, is shown in
the table below. 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 May 2020 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”
indicates logistics-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 not include 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 intrust that is 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 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 by city planning in accordance with zoning and other factors (designated building coverage
ratio) and the upper limit of the floor-area ratio (designated floor-area ratio). Where there are more than
one such ratio, all such ratios are listed. The designated building coverage ratios may be relaxed or restricted
due to being fire-resistant buildings in fire 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 foreach 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 andthe completion 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 an effective master lease agreement is concluded as of today foreach property.
・“Master lease agreement” is the type of master lease agreement (with a distinction between the pass -throughtype and the fixed rent type) that is 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 have leased the real estate from CRE REIT based onlease agreements as of the end of May 2020 for LogiSquare Ageo and as of today for LogiSquare Miyoshi
and LogiSquare Chitose. Where a master lease agreement has been signed or is pla nned to be signed with
the Master Lessee, “number of tenants” is the total number of end tenants with regard to properties based3

on a pass-through type master lease. Moreover, where an end tenant lives with a third party or subleases allor a portion of the leased lot to a third 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 thecase where 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 leaseagreements concerning each Asset to Be Acquired that has been concluded or the floor plan, etc. as of th eend of May 2020 for LogiSquare Ageo and as of today for LogiSquare Miyoshi and LogiSquare Chitose.
・“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, theevaluation conducted by CRE REIT, and special features of the communities where the asset is located,among other things, which are based on descriptions in the real estate appraisal report prepared by Japan
Real Estate Institute and Tanizawa Sogo 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. ofeach property as of June 29, 2020 and other matters that are deemed to be material in consideration mainlyof the potential impact on the appraised value of each Asset to Be Acquired, and the p rofitability or
disposability thereof.
(iii) Descriptions in the column for “capacity utilization rate”
・“Capacity utilization rate” is the ratio expressed as a percentage of the total leased area to leasable area of
each Asset to Be Acquired as of the end of May 2020 for LogiSquare Ageo and as of today for LogiSquare
Miyoshi and LogiSquare Chitose, 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,” “rentrevision,” “premature cancellation” and “penalty” are the contents of each lease agreement that has beenconcluded with regard to LogiSquare Ageo as of the end of May 2020 and LogiSquare Miyoshi and
LogiSquare Chitose as of today (in the case of the pass-through type master lease agreement, the leaseagreement with the end tenant).
(v) Descriptions in the column for “outline of real estate appraisal report”
・The column for “outline of real estate appraisal report” is written based on the real estate appraisal reportobtained from Japan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd.

4

(1) LogiSquare Ageo
Property no.
LogiSquare Ageo
Ｍ-13

Category

Logistics-related facilities

Outline of specified assets
Type of specified assets

Trustbeneficial(planned) (Note 1)

Planned acquisition dateJuly 13, 2020

Planned acquisition price\4,908,000,000

Land

interest Overvi
ew of
trust
beneficial
interest

Location

449-12 Aza Tenjinya, Ooaza
Jitogata, Ageo-shi, Saitama

Area

12,737.24 m2

Trustee

Mitsubishi UFJ Trust andBanking
Corporation(planned)

Trust maturity
July 31, 2040 (planned)
date
Steel
construction,alloy
coated steel sheet roof, threefloorsCompletion
datefor April 7, 2019
construction
Total floor area 19,142.84 m2
Type

Warehouse

CRE, Inc.
Pass-through2 (Note 2)Typeownership
PM Company
Number of tenantsNone

Total leasable area

19,127.67 m2

2.89%

Capacity utilization rate

100.0%

Type of ownership Proprietary ownership
Master lessee
Master lease agreement
Existence or non-existenceof collateral
PML (probable maximumloss) value

September 1, 2016, January
31, 2018 and July 13, 2020
(planned)

Building
structure

Building

Zoning
Quasi-industrial district
Building coverage
ratio/floor-area
60%/ 200%
ratio

Entrustment
date

5

of

Proprietary ownership
CRE, Inc.
2

Features of the property:
・The property is located approximately 6.9 km from Okegawa Kitamoto Interchange on the Metropolitan Inter -City
Expressway (Ken-O Expressway) and approximately 8.4 km from Yono Interchange on the Omiya Route of the
Shuto Expressway and connected to National Route 17 Shin-Omiya Ageo Road (width 57 m) and Prefectural Road
51, major trunk roads. In addition, given that an extension project for an expressway from Yono Interchange on the
Omiya Route of the Shuto Expressway to near LogiSquare Ageo is underway, con venience is expected to improve.
・Ageo-shi is located in southeast Saitama, with a population exceeding 229,000 people and approximately 103,000
householders (as of May 1, 2020), which has been increasing in recent years. The property is located in a rel atively
advantageous environment from the perspective of securing labor, because LogiSquare Ageo is very convenient forcommuting, being approximately 7 minutes from Ageo Station on the JR Takasaki Line by bus,whose stop is a 1
minute-walk from LogiSquare Ageo , and the population is concentrated in the surrounding area.
・The property has two gates on the side facing National Route 17 Shin-Omiya Ageo Road and the side facing
Prefectural Road 51, and this improves access for trucks to all quarters. The property secures a parking lot forpassenger cars and an area of approximately 2,200 m 2 that can be used as a heavy truck holding area on the site witha passageway from Prefectural Road 51.
・The entire paved area where heavy trucks pass through uses a semi-flexible pavement that reduces the creation ofwheel tracks and has a high resistance to plastic deformation. In addition, safety inside the propert y is improved by
the adding of black pigment to the semi-flexible pavement, which increases the visibility of guidelines and thiscontributes to maintaining the aesthetic beauty of the pavement by making vehicle tire marks imperceptible.
・The basic specifications for the warehouse portion include an average intensity of 300 Lux or more, a berth depthof 10.25 m and a berth eave of 4.0 m, an effective ceiling height of 6.0 m on each floor, a column span of 10.2 m ×
9.8 m, and a floor weight capacity of 1.5 t/m2 capable of supporting the operation of 2.5 t forklifts on each floor.
The property is designed to increase storage efficiency by using metal insulated sandwich panels on the exterior
walls and fire-resistant insulated panels on the walls of fireproof compartments inside the warehouse and by
removing braces and intermediate posts.
・As protective equipment, durable, flexible guard polls made of special polymers are used. These guard polls arealso installed for exterior protection, taking advantage of their improvement of safety inside the warehouse, highvisibility, and high resistance to ultraviolet light.
・The lifting equipment includes two cargo elevators (movable load of 4.1 t, 45 m/min) and two vertical carriermachines, realizing efficient operation for vertical transportation between floors and for incoming and outgoingdeliveries.
・The property pays attention to the initial cost of tenants and is able to respond to a wide range of layouts inside thewarehouse because it uses a structural design assuming vertical carrier machines in two locations and floor openings
for conveyors in the future on each floor to enable the installation of vertical carrier material handling equipment
across the floors when a tenant moves in.
・As an environmental measure, the property has acquired CASBEE Saitama Rank A certification and a BELS
evaluation (★★★★★) as a result of using LED lighting in all buildings, human detecting sensors and water -saving
sanitary appliances.
・Attention is paid to the business continuity plan (BCP) of tenants by preventing the breakdown of fire shutters due
to a short in wiring in case of a fire and preventing the spread of fire by installing an isolator in automatic fire alert
systems, in addition to introducing an emergency earthquake alert system, which is standard equipment on
LogiSquare, and installing AEDs.
・With regard to signs on the property, ways to increase amenities for workers have been devised, including the useof designs creating a sense of intimacy that visualizes warehouse features such as the effective ceiling height, floor
weight capacity and lighting intensity.
Notes:
Not applicable.
(Note 1) The property is planned to be composed of two trust beneficial interests with Mitsubishi UFJ Trust and Banking
Corporation as the trustee. Of this land, the entrustment date represents each entrustment date of the land for which
a trust has already been established and the planned entrustment date of the land for which an additional trust isplanned to be established when CRE REIT acquires it.
(Note 2) While a pass-through type master lease agreement has been concluded as of today, an agreement has been made on
fixing the monthly rent to be received by the trustee from the master lessee under the master lease agreement at
22,491,829 yen from July 13, 2020 to December 31, 2020 and at 23,016,648 yen from January 1, 2021 to July 31,
2021.

6

Outline of leasing

LesseeUndisclosed(Note)
Rent revision
Premature
cancellation
Penalty

Type ofbusiness

Lease form

Land
Fixed termtransport
building leaseation
Not allowed.

Lease period

Leased area

Rent

Undisclosed(Note)

7,400.93 m

Undisclosed(Note)

2

Security
deposit andguarantee
money
Undisclosed(Note)

Not allowed; provided, however, that premature cancellation may be approved underunavoidable circumstances on the condition that the intent of the premature cancellation is
notified in writing no later than 1 (one) year before the intended date of premature cancellationand that a penalty for the premature 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 notbeen disclosed due to this unavoidable reason.

Outline of leasing

LesseeType ofbusiness

Lease form

Lease period

Leased area

Rent

Security
deposit andguarantee
money

Undisclosed(Note)

Pharmaceuticalproducts

Fixed term
building lease

Undisclosed(Note)

11,726.74 m2

Undisclosed(Note)

Undisclosed(Note)

Rent revision
Premature
cancellation
Penalty

Not allowed.
Not allowed; provided, however, that premature cancellation may be approved underunavoidable circumstances on the condition that the intent of the premature cancellation is
notified in writing no later than 1 (one) year before the intended date of premature cancellationand that a penalty for the premature 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 notbeen disclosed due to this unavoidable reason.

7

Outline of real estate appraisal report
LogiSquare Ageo
\4,950,000,000
The Tanizawa Sogo Appraisal Co., Ltd.
May 31, 2020
Items
Details
Comments, etc.
Appraisal value indicated by the income approach
The appraisal value is estimated using theincome approach after conducting an
examination using the direct capitalization\4,950,000,000
method based on the appraisal value
indicated by the DCF (Discount Cash Flow)method as the standard.
Appraisal value based on the direct\5,020,000,000
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\228,691,770 (1)-(2)(4) Earnings from temporary deposits
Undisclosed (Note)(5) Capital expenditure
Undisclosed (Note)
Net cash flow
\226,105,365 (3)+(4)-(5)Capitalization rate
4.5％ Appraised by comparing and examining
several market capitalization rates ofproperties in peripheral areas or in similar
districts, etc. in the same market area, by
taking into account anticipated variations infuture net cash flow and by paying attention
to the relationship to the discount rate.
Appraisal value using the DCF method\4,920,000,000
Discount rate
First to tenth year Appraised by first determining the base yield
4.3% of the warehouse using the built-up method,
Eleventh year 4.5% etc. in reference to the yields of financial
instruments, and then by taking into accountthe individual risks pertaining to the subject
real estate in relation to the said base yield.
Terminal capitalization rate
4.6% Appraised by using the capitalization rate as
the standard and by evaluating theuncertainty of future projections.
Integrated value\4,840,000,000
Proportion of land
51.3%
Proportion of building
48.7%
Other matters for consideration by the appraiser None
Property nameAppraisal value
Real estate appraiser
Date of valuation(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. Thisis because the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm
the interests of unitholders.

8(2) LogiSquare Miyoshi
Property no.
LogiSquare Miyoshi
Ｍ-14

Category

Logistics-related facilities

Outline of specified assets
Type of specified assets

Trustbeneficial(planned)

Planned acquisition dateJuly 13, 2020

Planned acquisition price\11,700,000,000

interest Overvi
ew of
trust
beneficial
interest

Entrustment
date

July 13, 2020 (planned)

Trustee

Sumitomo Mitsui Trust Bank,
Limited (planned)

Trust maturity
July 31, 2040 (planned)
date

Location2291-1
Aza
HigashiNagakubo, Ooaza Kamitome,
Miyoshi-machi, Iruma-gun,
Saitama

Building
structureArea

18,786.09 m2

Completion
datefor May 24, 2020
construction

Land
ZoningBuildi
Districtnotdesignated ng(urbanization control area)

Steelconstruction,alloy
coated steel sheet roof, four
floorsTotal floor area

37,931.49 m2

Building coverage
ratio/floor-area
60% (Note 1)/200%
ratio

Type

WarehouseType of ownership Proprietary ownershipTypeownershipof

Proprietary ownership

Master lessee

CRE, Inc.

PM Company

CRE, Inc.

Master lease agreement

Pass-through (Note 2)

Number of tenants

1

Existence or non-existenceNone
Total leasable area
37,931.49 m2
of collateral
PML (probable maximum
2.11%
Capacity utilization rate 100.0%
loss) value
Features of the property:
・The property is located approximately 0.6 km from the Miyoshi Smart Interchange on the Kan -Etsu Expressway,
and access to National Route 254 (Kawagoe Kaido) and National Route 463 (Urawa Tokorozawa Bypass) is alsoeasy. It is projected that the Miyoshi Smart Interchange will become a full interchange and begin to be used for
expanded types of vehicles from fiscal 2021. Given that improvement projects including connected neighboring
roads are being promoted, convenience is expected to further improve.
・Southern Saitama, particularly the Tokorozawa and Miyoshi areas, has excellent access to central T okyo, and it is
one of the areas where need for logistics bases is the highest in Saitama Surrounded by numerous warehouses andfactories, the property can be operated 24 hours a day.
・A total of 44 heavy trucks can park and load at the same time because there is a slope enabling heavy trucks to go
directly to the third floor and there are truck berths on the first and the third floors. Combined with a holding spacefor eight trucks, efficient incoming and outgoing delivery operations are possible.
・The basic specifications for the warehouse portion include an average light intensity of 300 Lux or more, a berth
depth of 13.5 m, an effective ceiling height of 5.5 m on each floor (excluding some areas), a column span of 9.5 m
×12.0 m, and a floor weight capacity of 1.5 t/m2 capable of supporting the operation of 2.0 t forklifts. Metal
insulated sandwich panels are used on exterior walls.
・Specifications have the capacity to respond to the future needs of tenants because it is possible to install additionalcargo elevators and vertical carrier machines, add offices and install air conditioners inside the warehouse, in
addition to the already installed four cargo elevators (4.1 t) and four vertical carrier machines.
・ As an environmental measure, the property has acquired Rank A CASBEE Saitama certification and a BELS

9evaluation (★★★★★) for its facilities plan giving consideration to the environment and energy saving, including
the use of LED lighting in all buildings, human detecting sensors and water-saving sanitary appliances.
Notes:
On a part (5.68 m2) of this land, a sectional right of superficies is established for the purpose of installing water supply
facilities with Miyoshi-machi, Iruma-gun as the superficiary. In addition, if the land is transferred, it is necessary toobtain consent from the superficiary in advance under the agreement for the creation of sectional right of superficies.
(Note 1) The building coverage ratio is originally 60%, but has been eased to 70% as a result of applying the loosened
regulations to the corner lot.
(Note 2) While a pass-through type master lease agreement has been concluded as of today, an agreement has been made on
fixing the monthly rent to be received by the trustee from the master lessee under the master lease agreement at
19,595,510 yen from July 13, 2020 to August 31, 2020 and at 51,371,343 yen from September 1, 2020 to July 31,
2021.

Outline of leasing

LesseeUndisclosed(Note)
Rent revision
Premature
cancellation
Penalty

Type ofbusiness

Lease form

Land
Fixed termtransport
building leaseation
Not allowed.

Lease period

Leased area

Rent

Security
deposit andguarantee
money

Undisclosed(Note)

37,931.49 m2

Undisclosed(Note)

Undisclosed(Note)

Not allowed; provided, however, that premature cancellation may be approved underunavoidable circumstances on the condition that the intent of the premature cancellation is
notified in writing no later than 1 (one) year before the intended date of the premature
cancellation and that a penalty for the premature 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 notbeen disclosed due to this unavoidable reason.

10Outline of real estate appraisal report
Property name
LogiSquare Miyoshi
Appraisal value\12,100,000,000
Real estate appraiser Japan Real Estate Institute
Date of valuation
May 31, 2020
Items
Details
Comments, etc.
Appraisal value indicated by the income approach\12,100,000,000 Appraised by applying the direct
capitalization method and the DCF(Discount Cash Flow) method.
Appraisal value based on the direct\12,200,000,000
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\540,797,000 (1)-(2)(4) Earnings from temporary deposits
Undisclosed (Note)(5) Capital expenditure
Undisclosed (Note)
Net cash flow
\536,185,000 (3)+(4)-(5)Capitalization rate
4.4% Appraised by adding and subtracting
spreads
attributabletolocational
conditions, building conditions and theterms of contract, etc. of the subject realestate to and from the yield that serves as abenchmark for each region.
Appraisal value using the DCF method\11,900,000,000
Discount rate
4.0% Appraised by comprehensively taking into
consideration the individuality of thesubject real estate with reference to theinvestment yields of similar real estate.
Terminal capitalization rate
4.5% Appraised by comprehensively taking into
consideration future trends of theinvestment yield, risks of the subject realestate as an investment target, a generalprojection of the future economic growthrate and trends of real estate prices andrents, etc.
Integrated value\11,200,000,000
Proportion of land
45.5%
Proportion of building
54.5%
Other matters for consideration by the appraiser None
(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. Thisis because the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm
the interests of unitholders.

11(3) LogiSquare Chitose
Property no.
LogiSquare Chitose
Ｏ-２

Type of specified assets

Planned acquisition date

Planned acquisition priceLand

Category

Logistics-related facilities

Outline of specified assets
Trustbeneficial
interest Overvi Entrustment(planned)ew of datetrust
July 13, 2020
benefi Trustee
cialinteres Trust maturity\1,300,000,000t
date

Location

1007-281 Izumisawa Chitoseshi, Hokkaido

Area

49,599.00 m2

July 31, 2040 (planned)

Completion
datefor November 9, 2017
construction
Total floor area 19,760.00 m2
Type

Type
ownership
PM Company
Number of tenants

Type of ownership Proprietary ownership

Mitsubishi UFJ Trust andBanking
Corporation(planned)Steelconstruction,alloy
coated steel sheet roof, single
floor

Building
structure

Building

Zoning
Quasi-industrial district
Building coverage
ratio/floor-area
60%/200%
ratio

July 13, 2020 (planned)

WarehouseofProprietary ownership

Master lessee
CRE, Inc.
CRE, Inc.
Master lease agreement
Fixed
1
Existence or non-existenceNone
Total leasable area
19,760.00 m2
of collateral
PML (probable maximum
1.04%
Capacity utilization rate 100.0%
loss) value
Features of the property:
・The property has high potential as a logistics base for air cargo using New Chitose Airport because it has excellent
access to the airport, located approximately 8.8 km from it and approximately 2.4 km from the New Chitose Airport
Interchange on the Hokkaido Expressway (Do-O Expressway). It is also possible to use the property as a balanced,
strategic base for air, marine and land transportation because it can be a relay point between Sapporo, the largest
consuming region in Hokkaido, and Tomakomai Port, a central international port boasting the largest volume ofmarine cargo in Hokkaido, via the Do-O Expressway. In addition, surrounded by numerous warehouses andfactories because the property lies adjacent to Chitose Airport Industrial Complex, it can be operated 24 hours aday.
・Because the property is a high-floored single-story building with truck berths on both east and west sides, a total of
64 heavy trucks can park and load at the same time. The property is leased separately to multiple tenants.
・There are two gateways, one exclusively for the entrance and another for the exit, and vehicle traffic lines on the site
are one way. In addition, with a holding area for 80 heavy vehicles, efficient incoming and outgoing delivery
operations are possible. There is also a parking lot for 136 passenger cars for commuters and visitors.
・The basic specifications for the warehouse portion include an average light intensity of 300 Lux or more, a berth
depth of 13.0 m and a berth eave of 3.0 m, a floor weight capacity of 1.5 t/m2, an effective ceiling height of 5.5 m or
more (7.0 m at the highest), and a column span of 11.0 m × 10.0 m. The single-story structure also contributes toan improvement in storage efficiency because the equipment and cargo handling spac e required for transportation
between floors unique to multi-story facilities are unnecessary. In addition, single-floor operations enable speedy
operations in the warehouse without the lost time associated with transportation between floors.
・Specifications are capable of responding to a broad range of future tenant needs, including the securing of piping
routes, a yard for outdoor units and a space for additional cubicles in cases where air conditioners are installed in

12the warehouse as well as legal response assuming the expansion of office.
・As a specification for cold regions, the property includes anti-freezing equipment such as heated roads using hotwater pipes and drainpipe duct heaters and gates without rails for snow removal vehicles. In additi on, well-insulated
sandwich panels and resin sashes (with argon gas-filled low-e double-pane glass) are used. Attention is also paid toprevent tenant operations from backing up, even during snowfall, by securing a vast snow-dumping area on the site.
・As an environmental measure, the property has acquired a BELS evaluation (★★★★★) as a result of using LED
lighting in all buildings, human detecting sensors and water-saving sanitary appliances.
・Attention is paid to tenant business continuity plans (BCPs) by preventing the breakdown of fire shutters due toshorts in wiring in the event of a fire and preventing the spread of a fire by installing isolators in automatic fire alert
systems, in addition to the installation of an emergency earthquake alert system, which is standard equipment on
LogiSquare, and AEDs.
・Regarding signs on the property, ways to increase amenities of workers have been devised, including the use ofdesign with a sense of intimacy that visualizes warehouse features such as effective cei ling height, floor weightcapacity and lighting intensity.
Notes:
Not applicable.
Outline of leasing

LesseeCRE
Rent revision

Premature
cancellation

Penalty

Type ofbusiness

Lease form

Lease period

Leased area

Rent

Security
deposit andguarantee
money

Real
Fixed term
Undisclosed
Undisclosed
estate21.0 years
19,760.00 m2
building lease(Note)(Note)
business
Not allowed.
Not allowed; provided, however, that premature cancellation may be approved underunavoidable circumstances until 11 years have elapsed since the commencement date of the leaseon the condition that the intent to prematurely cancel is notified in writing no less than six (6)months before the intended date of premature cancellation and that a penalty for the premature
cancellation be paid. In addition, after 11 years have elapsed since the commencement date of
the lease, premature cancellation may be approved on the condition that the intent toprematurely cancel is notified in writing no less than six (6) months before the intended date ofpremature cancellation.
Until 11 years have elapsed since the commencement date of the lease, an amount equivalent tothe unpaid rent up to the date when 11 years have elapsed No penalty after 11 years haveelapsed since the commencement date of the lease(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.

13

Outline of real estate appraisal report
Property name
LogiSquare Chitose
Appraisal value\1,500,000,000
Real estate appraiser Japan Real Estate Institute
Date of valuation
May 31, 2020
Items
Details
Comments, etc.
Appraisal value indicated by the income approachAppraisedbyapplyingthedirect\1,500,000,000 capitalization method and the DCF(Discount Cash Flow) method.
Appraisal value based on the direct\1,510,000,000
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\84,697,000 (1)-(2)(4) Earnings from temporary deposits
Undisclosed (Note)(5) Capital expenditure
Undisclosed (Note)
Net cash flow
\81,474,000 (3)+(4)-(5)Capitalization rate
5.4% Appraised by adding and subtracting spreads
attributable to locational conditions, building
conditions and the terms of contract, etc. ofthe subject real estate to and from the yieldthat serves as a benchmark for each region.
Appraisal value using the DCF method\1,490,000,000
Discount rate
5.3% Appraised by comprehensively taking into
consideration the individuality of the subject
real estate with reference to the investment
yields of similar real estate.
Terminal capitalization rate
5.5% Appraised by comprehensively taking into
consideration future trends of the investment
yield, risks of the subject real estate as aninvestment target, a general projection of the
future economic growth rate and trends ofreal estate prices and rents, etc.
Integrated value\1,730,000,000
Proportion of land
19.5%
Proportion of building
80.5%
Other matters for consideration by the appraiser None
(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. Thisis because the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm
the interests of unitholders.

144． Seller profile(1) Name: CRE, Inc.
(2) Location: 2-10-1, Toranomon, Minato-ku, Tokyo(3) Title and name of representative: Representative Director and President Tadahide Kameyama(4) Business: Logistics facility leasing, management, development, brokerage and investment advice(5) Capital: 2,236 million yen (as of April 30, 2020)(6) Established: December 2009(7) Net assets: 18,098 million yen (as of April 30, 2020)(8) Total assets: 66,577 million yen (as of April 30, 2020)(9) Large shareholders and shareholding ratio: Kyobashi Kousan, Inc. 47.59% (as of January 31, 2020)(10) Relationships of CRE, Inc. with CRE REIT and the Asset Management Company
Capital relationship: CRE, Inc. holds 7.0% of the total number of investment units outstandingof CRE REIT as of today. CRE, Inc. also holds 100.0% of the total number of shares
outstanding of the Asset Management Company as of today.
Personal relationship: Two directors and one corporate auditor of the Asset Management
Company concurrently serve as directors of CRE, Inc. as of today. In addition, three
officers or employees of CRE, Inc. are seconded from the Asset Management
Company.
Business relationship: CRE, Inc. has entered into a sponsor support agreement with CRE REIT
and the Asset Management Company. CRE, Inc. has also entered into a property
management agreement and a master lease agreement with CRE REIT and thetrustee.
Relevance to related party: CRE, Inc. is categorized as a related party of CRE REIT and theAsset Management Company.
5． Interested-party transaction
Because CRE, which is the seller and the master lessee of the Assets to Be Acquired, is the parent
company of the Asset Management Company and falls under the interested persons under theInvestment Trust Act, the Asset Management Company has obtained the consent of CRE REIT basedon an approval at the meeting of the Board of Directors of CRE REIT held today based on theInvestment Trust Act. In addition, because CRE is an interested party under the Regulations forTransactions with Interested Parties, which are internal regulations of the Asset Management
Company, the Asset Management Company has taken the decision-making procedures stipulated in
the Regulations for Transactions with Interested Parties.
Moreover, because CRE, the property management company, is also an interested party under the
Regulations for Transactions with Interested Parties, which are internal regulations of the AssetManagement Company, the Asset Management Company has taken the decision-making procedures
stipulated in the Regulations for Transactions with Interested Parties.

15

6． Status of owners, etc. of the properties
The status of properties acquired from a person with a special interest in CRE REIT and the AssetManagement Company or a person who is thought to be equivalent to a person with a special interestin CRE REIT and the Asset Management Company is as follows.

16

Property(location)

nameStatus of owners, etc. of
the property

M-13 LogiSquare Ageo (Ageo-shi, Saitama)Previous owner, etc.

Owner before
owner, etc.

Name

CRE, Inc.

Other than a person with special
interest

Relationship with aperson with special
interest

Parent company of the Asset Management
Company

Details and reason for
acquisition

Acquired for the purpose of developing thebuilding

Acquisition price

Omitted because the property has been owned
for more than a year.

Time of acquisition

December 2016, December 2017, January
2018 and April 2019 (land in all cases)

Property
name(location)
Status of owners, etc. of
the property

theprevious

M-14 LogiSquare Miyoshi (Miyoshi-machi, Saitama)Previous owner, etc.

Owner before
owner, etc.

Name

CRE, Inc.

Other than a person with special
interest

Relationship with aperson with special
interest

Parent company of the Asset Management
Company

Details and reason for
acquisition
Acquisition price

Acquired for the purpose of developing thebuilding
Omitted because the property has been owned
for more than a year.

Time of acquisition

November 2017 and December 2018 (land inboth cases)

Property
name(location)
Status of owners, etc. of
the property
Nameprevious

O-2 LogiSquare Chitose (Chitose-shi, Hokkaido)
Previous owner, etc.

Owner before the previous
owner, etc.
Other than a person with special
interest

CRE, Inc.

Relationship with aperson with special
interest

Parent company of the Asset Management
Company

Details and reason for
acquisition
Acquisition price

Acquired for the purpose of developing thebuilding
Omitted because the property has been owned
for more than a year.
December 2016 (land)Time of acquisition

the

17

7． Brokerage
Not applicable.
8． Future Outlook
The acquisition of the Assets to Be Acquired is scheduled to be implemented on July 13, 2020, andit will have no impact on the operating results for the fiscal period ending June 30, 2020. For
information on the outlook of the operating results of CRE REIT for the periods ending December
31, 2020 and June 30, 2021, please refer to the “Notice Concerning Revision of Forecasts of Operating
Results for the Period ending December 31, 2020 and Forecasts of Operating Results for the Period
ending June 30, 2021,” announced on June 29, 2020.
* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/

18