[For Translation Purposes Only]
August 9, 2016

Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Satoshi Yanagita, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Ken Okada
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Debt Financing and Repayment of Debt Financing (“Financing”)
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced thedecision made today that it will procure debt financing (“Debt Financing”) to refinance, to acquire
new asset, and to conduct early repayment (the “Early Repayment”), as described below.
I.Debt Financing
1.Debt financing for refinance(1) Purpose
The Fund has decided to procure the loan in order to repay current outstanding loans which mature on
August 26, 2016.
(2) Details①

Loan Type：Term Loan (Scheduled contract date: August 24, 2016)
Lenders

AmountInterest Rate

(millions of yen)

(Note1)The Chugoku Bank, Ltd.

1,000

0.41%

Resona Bank, Ltd.

1,000

(To be determined)

Fixed(Note3)

Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Ltd

3,000

Fixed

(To be determined)(Note3)

Drawdown
DateTerm

RepaymentDate(Note2)

August 26,
2016

7 years

August 26,
2023

August 26,
2016

8 years
Lump-sum
Unsecured,
February 26,
and 6
repayment on the unguara
2025
monthsrepayment datenteed

August 26,
2016

9 years

August 26,
2025

Terms ofRepayment

CollateralLump-sum
Unsecured,
repayment on the unguara
repayment datenteed

Lump-sum
Unsecured,
repayment on the unguara
repayment datenteed(Note 1) February 26, 2017, the first interest payment date, and 26th of every February and August thereafter until the Repayment Date. (or the following
business day if the date is a non-business day, or the prior business day if the following business date is in the next month)(Note 2) Repayment Date is the following business day if the date is a non-business day, or the prior business day if the following business date is in the nextmonth.
(Note 3) The interest rate will be determined on or before the anticipated borrowing date based on the contract scheduled on August 24, 2016 concerning thisborrowing. We will make an announcement about the interest when it is determined.

－ 1 －(3) Use of Funds① Specifics:② Scheduled Date of Use :To be used for repayment of the existing borrowings based on theterm loan(Note) agreement totaling ¥5 billion which will mature on
August 26, 2016.
August 26, 2016(Note) For details of the term loan agreement, please refer to the press releases “Notice Concerning Debt Financing” announced by Nomura Real
Estate Office Fund on August 24, 2011 and on September 21, 2012.

2.Debt financing for refinance and for acquiring new asset(1) Purpose
The Fund has decided to procure the loan in order to repay current outstanding loans which mature on
August 29, 2016, and to acquire new asset.
(2) Details
Loan Type：Term Loan (Scheduled contract date: August 29, 2016)
Lenders
Development Bank of Japan, Inc.

Interest Rate

Amount(millions of yen)

(Note1)

2,430(To be determined)

Fixed(Note3)

Drawdown
Date

Term

RepaymentDate(Note2)

August 31,
2016

8 years

August 26,2024

Terms ofRepayment

CollateralLump-sum
Unsecured,
repayment on the unguararepayment datenteed(Note 1) February 26, 2017, the first interest payment date, and 26th of every February and August thereafter until the Repayment Date. (or the following
business day if the date is a non-business day, or the prior business day if the following business date is in the next month)(Note 2) Repayment Date is the following business day if the date is a non-business day, or the prior business day if the following business date is in the nextmonth.
(Note 3) The interest rate will be determined on or before the anticipated borrowing date based on the contract scheduled on August 29, 2016 concerning
this borrowing. We will make an announcement about the interest when it is determined.

(3) Use of Funds① Specifics:② Scheduled Date of Use :（i）Out of the loan amount, ¥1.08 billion to be used for repaymentof the existing borrowings based on the term loan agreement totaling¥1.08 billion which will mature on August 26, 2016(Note1) (Note2)（ii）, ¥1.35
billion proceeds will be used in order to pay for a part of theacquisition of an asset (Landport Kashiwa Shonan II) (Note3) and therelated expenses together with the loan stated 3 below, scheduled on
September 1, 2016.
（i） August 31, 2016（ii）September 1, 2016

(Note 1) For details of the term loan agreement, please refer to the press releases “Notice Concerning Debt Financing” announced by Nomura Real
Estate Residential Fund on August 25, 2009.
(Note 2) The Fund will repay the debt on August 29, 2016 using cash on hand, the above mentioned loan will be executed in order to cover the decreaseamount in cash on hand due to the concerned utilization on August 31, 2016. The above mentioned loan is, in effect, to be applied for therefinancing.
(Note 3) For a profile of the property, refer to the “Notice Concerning Property Acquisition and Disposition”, released on May 9, 2016.

3.Debt financing for acquiring new asset(1) Purpose
The Fund has decided to procure the debt financing in order to pay for the acquisition of anasset.
(2) Details
Loan Type：Term Loan (Scheduled contract date: August 29, 2016)
Lenders
Mizuho Bank, Ltd.
Mitsubishi UFJ Trust and BankingCorporation
Sumitomo Mitsui Trust Bank., Ltd.

Amount(millions of yen)

4,050Interest Rate

Fixed
(To be determined)(Note2) (Note4)

Drawdown
DateTerm

RepaymentDate(Note1)

August 31,
2016

9 years

August 26,2025－ 2 －Terms of
Repayment

CollateralLump-sum
Unsecured,
repayment on the unguara
repayment datenteedLenders

Amount(millions of yen)

The Bank of Tokyo-Mitsubishi UFJ,
Ltd.

2,700

Sumitomo Mitsui Banking
Corporation

2,700Interest Rate

Fixed
(To be determined)(Note3) (Note4)

Fixed(To be determined)(Note2) (Note4)

Drawdown
DateTerm

RepaymentDate(Note1)

Terms ofRepayment

August 31,
10 years
2016

August 26,
2026

Lump-sum
Unsecured,repayment on the unguara
repayment datenteed

August 31,
10 years
2016

August 26,
2026

Lump-sum
Unsecured,
repayment on the unguara
repayment date
nteed

Collateral(Note 1) Repayment Date is the following business day if the date is a non-business day, or the prior business day if the following business date is in thenext month.
(Note 2) February 26, 2017, the first interest payment date, and 26th of every February and August thereafter until the Repayment Date. (or the following
business day if the date is a non-business day, or the prior business day if the following business date is in the next month)(Note 3) November 26, 2016, the first interest payment date, and 26th of every February, May, August and November thereafter until the Repayment Date.
(or the following business day if the date is a non-business day, or the prior business day if the following business date is in the next month)(Note 4) The interest rate will be determined on or before the anticipated borrowing date based on the contract scheduled on August 29, 2016 concerning
this borrowing. We will make an announcement about the interest when it is determined.

(3) Use of Funds① Specifics:② Scheduled Date of Use :Loan proceeds will be used in order to pay for a part of theacquisition of an asset (Landport Kashiwa Shonan II) and the related
expenses, together with the loan sated 2 above.
September 1, 2016

4.Debt financing to conduct early repayment(1) Purpose
The Fund has decided to procure the loan in order to conduct early repayment stated in II below.
(2) Details
Loan Type：Term Loan (Scheduled contracted on August 29, 2016)
Lenders

Amount(millions of yen)

Sumitomo Mitsui Banking
Corporation

2,700

Sumitomo Mitsui Banking
Corporation

2,000Interest Rate
(Note1)

Fixed(To be determined)(Note3)Fixed(To be determined)(Note3)

Drawdown
DateTerm

RepaymentDate(Note2)

Terms of
Repayment

Collateral

7yearsLump-sum
Unsecured,andJune 26,
repayment on the unguara
102024
repayment datenteedmonths9 years
NovemberLump-sum
Unsecured,andAugust 31,
repayment on the unguara
26,
2016
3
repayment date
nteed2025
monthsAugust 31,
2016(Note 1) February 26, 2017, the first interest payment date, and 26th of every February and August thereafter until the Repayment Date. (or the following
business day if the date is a non-business day, or the prior business day if the following business date is in the next month)(Note 2) Repayment Date is the following business day if the date is a non-business day, or the prior business day if the following business date is in the nextmonth.
(Note 3) The interest rate will be determined on or before the anticipated borrowing date based on the contract scheduled on August 29, 2016 concerning thisborrowing. We will make an announcement about the interest when it is determined.

(3) Use of Funds① Specifics:② Scheduled Date of Use :To be used for early repayment of the existing borrowings based on
the term loan(Note1) agreement totaling ¥4.7 billion which will mature
on December 27, 2016.
August 31, 2016

(Note) For the details of the term loan, please refer to “II Early Repayment (2) Details of Early Repayment of Debt Financing” below

II.Early Repayment(1) Purpose
To contribute stable financing, condition about the prolongation of the term and the immobilizationof the interest rate was set among the lender.

－ 3 －(2) Details of Early Repayment of Debt Financing(Note1)
Term Loan (Floating Rate, contracted on June 23, 2016)
Lenders

Borrowing
BorrowingAmountAmountPrepayment
before theafter theAmount
prepayment (millions of yen) prepayment(millions of yen)

Sumitomo Mitsui
Banking Corporation

Interest Drawdown
Rate
Date

Term

Repayment Scheduled
Repayment Collateral
Date
Date

(millions of yen)

4,700

4,700-Basic
Interest
Rate+0.09％

June 27,2016

Unsecured,6
December 27, August 31,
unguara2016
2016
monthsnteed(Note2)(Note3)(Note 1) No penalty is required by this prepayment(Note 2) Basic Interest Rate, which applies to the calculation period of the interest rate to be paid on the Interest Payment Date, will be JBA 1 month JPY
TIBOR as of two business days before the previous Interest Payment Date of the respective interest payment dates (however, the Drawdown Datefor the first interest rate calculation period) announced by the JBA TIBOR Administration.
(Note 3) Basic Interest Rate indicated in (Note 2) will be reviewed on each Interest Payment Date. However, in the case the rate that applies to the calculation
period of the interest rate does not exist, what is calculated based on the method stated in the contract will be the Basic Interest Rate that applies tothe concerned period. Refer to the JBA TIBOR Administration website regarding the changes in the respective JBA Japanese Yen TIBOR, the baseinterest rate.

III.Status of Interest Bearing Debts after Financing(millions of yen)

Before Financing(Note 1)

After Financing(Note 1)

Increased/Decreased
AmountShort-term Borrowings

4,700－▲4,700Current portion of Long-termborrowings (Note 2)

26,272

20,192▲6,080Long-term borrowings(Note 3)

335,499

357,079

21,580366,471377,271

10,8005,000

5,000－

27,50027,500－Total Investment Corporation Bonds

32,50032,500－Total Interest-Bearing Debts

398,971409,771

10,800Total Borrowings
Current portion of Investment
Corporation Bonds(Note 2)
Investment Corporation
Bonds(Note 4)(Note 1) Both columns indicate figures assuming that agreed repayments (¥71.4 million in total) scheduled for August 26, 2016.
(Note 2) Nature of term is as of the end of the 1st fiscal period (February 29, 2016).
(Note 3) Excludes Long-term Borrowings due within one year.
(Note 4) Excludes Investment Corporation Bond due within one year.

IV.Forecasts of Financial Results
There is only small impact to Nomura Master Fund’s forecasts of financial results for the fiscal period
ending August 31, 2016 (March 1, 2016 to August 31, 2016) and ending February 28, 2017 (September 1,2016 to February 28, 2017), there is no revision to the forecast of financial results.
V.Other Matters Required for Investors to Accurately Understand and Evaluate theInformation
No change has been made to the content of “Section 1 Fund Information / 1 Status of Fund / 3
Investment Risks” of the Security Report (in Japanese) filed on May 25, 2016, regarding the risk involvedin the debt financing.
Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/－ 4 －