[For Translation Purposes Only]

October 13, 2021

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 and Disposition
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 or dispose of a property (the “Acquisition” or the “Disposition” or collectively the“Transaction”), as described below.

1. Summary of Assets to Be Acquired/Disposed of(1) Summary of Asset to Be Acquired
Property Name

Landport Ome Ⅲ

Use

Logistics

Date of
Purchase andSale Agreement
October 13,
2021

AnticipatedAcquisition
Price (million)

Scheduled
Date of
Acquisition

SellerJanuary 6,
2022

Nomura Real
EstateDevelopment,
Co., Ltd.

(Note 1)

17,000(Note 1)The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2)There is no brokerage involved in the acquisition of the asset to be Acquired.
(Note 3)The asset to be Acquired are a trust beneficial interest in trust of real estate.

The above property is referred to hereinafter as the “Asset to be Acquired.”(2) Summary of Asset to Be Disposed of
Property NameNMF Utsunomiya
Building

Use

OfficeScheduled
Date ofAgreement

Scheduled
Date of
Disposition

October 14,
2021

October 29,
2021

Transferee
Undisclo-sed

ScheduledTransferPrice(¥ million)

Book
Value
(¥ million)

2,720

2,445

(Note 3)Difference(¥ million)(Note 4)274

(Note 2)

(Note 1)The amounts stated exclude adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes
and local consumption tax, etc.
(Note 2)Undisclosed, since a consent has not obtained from the transferee.
(Note 3) Anticipated book value at the date of disposition.
(Note 4) This is only a reference value which is the difference between the scheduled transfer price and the anticipated book value,
therefore, it is different from gain or loss on sale.

- 1 -(Note 5)The brokerage involved in the disposition of the asset to be Disposed of is not considered a related party under the Act on
Investment Trusts and Investment Corporations (“Investment Trust Act”).
(Note 6)The asset to be Disposed of are a trust beneficial interest in trust of real estate.

The above property is referred to hereinafter as the “Asset to be Disposed of.” The Asset to be Acquired andAsset to be Disposed of may be separately referred to as the “Asset.”

2. Reasons for the Transaction
The Fund determined that the Transaction 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. Furthermore, replacement of assets in the Fund’s portfolio in accordance with theTransaction will improve the quality of the portfolio as follows.
• Improved NOI yield after depreciation• Improved asset age• Improved percentage(Note) of properties with Green certification for materiality (three stars or more or equivalent)• Expanded investment ratio in logistics facilities, which is a stable sector(Note) Green certification (with three stars or more or equivalent to) refers to DBJ Green Building Certification (three stars or more)or BELS Certification (three stars or more), or CASBEE for Real Estate (B+ or higher)

The portfolio indicators of the properties are as follows.
NMF Utsunomiya Building

Landport Ome III(Asset to be Disposed of)(Asset to be Acquired)

NOI yield after depreciation

2.9%(Note 1)

3.7%(Note 2)

Asset age(Note 3)

21.8 years

1.1 years

Green certification status (Note 4)-

DBJ Green Building Certification: ★★★★
BELS Certification: ★★★★★

(Note 1) The value entered is calculated by dividing the total NOI after depreciation, for the 11th fiscal period ended February 28, 2021 and12th fiscal period ended August 31, 2021, by the Anticipated Disposition Price. The value is rounded to the first decimal place.
(Note 2) The value entered is calculated by deducting the estimated depreciation value, calculated by the asset management company, fromthe NOI based on the direct capitalization approach recorded in the appraisal summary, and then dividing by the AnticipatedAcquisition Price. The value is rounded to the first decimal place.
(Note 3) The asset age entered is as of the scheduled transfer date for the Asset to be Disposed of and as of the scheduled date of Acquisition
for the Asset to be Acquired.
(Note 4) The number of stars entered in the certification is as of today.

Reference: Changes in Portfolio Diversification by Property Type
Retail(Residential areas)
5.5%
Retail(Station areas)

Retail (Residential areas)

Other 0.5%

5.4%
RetailHotels0.6%(Station areas)

11.4%
Residential
18.9%

Other 0.5%

Hotels
0.6%

11.2%
OfficeResidential

44.3%

18.7%

Logistics

Logistics

18.8%

20.1%

Office43.5%

After the Transaction

End of August 2021
(Note) Based on the (scheduled) acquisition

- 2 -

3.

Summary of Assets to Be Acquired/Disposed of(1)Summary of Asset to Be Acquired
Landport Ome Ⅲ＜Reasons for the Acquisition＞
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 2.9 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
tenants to maintain a favorable employment environment.
・ The building is a box-like facility where cars can park at two berths(Note 1) on the north and south sides of thefirst floor. The interior of the building is equipped with two freight elevators. It offers improved rack storage
efficiency(Note 1) by adopting a 10.5 m × 10.5 m grid(Note 1) and a first-floor beam effective height of 7.0 m
and a second- and third-floor beam effective height of 5.5 m. In addition to the versatile specifications that
ensure high operational efficiency, environmentally friendly LED lighting is adopted in the whole building.
Furthermore, it is a logistics facility that pursues optimization and efficiency by adopting a category-wide multifunction(Note 2) that adds functions specific to the target tenant’s needs for a mechanized warehouse (first floor
weight capacity of 2.0 t/m2, shuttered fire partitions, increased electric power capacity, etc.).
(Note 1) A “berth” is a space where cargo trucks can stop for loading and unloading, a “grid” is a lattice-shaped space formed bypillars 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.

<Summary of the Asset to be Acquired>
Property Name
Type of Asset
TrusteeTerm of Trust Agreement
Registry
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 5)
Master Leasing Company

Landport Ome Ⅲ
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
From January 6, 2022 to November 30, 2035
2-9-14, Suehiro-cho, Ome City, Tokyo
2-9-14, Suehiro-cho, Ome City, Tokyo(Note 2)
2.9 km from the Ome Interchange on the Ken-O Expressway
10-minute walk from Ozaku Station on the JR Ome Line
November 6, 2020
Warehouse
RC, Alloy plating copper roofing 3F
The Zenitaka Corporation, Class 1 Architect Office
The Zenitaka Corporation
Japan Constructive Inspect Association
39,747.10 m2
73,087.15 m2 (Note 3)
Ownership
Ownership
70% (Note 4)
200%
None
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
－- 3 -Type of Master Leasing
Seismic Risk (PML)(Note 6)

Notes

AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)－
2.97% (Based on the Earthquake PML Appraisal Report as of September 2021 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 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.
¥17,000 million¥18,300 million (Based on the capitalization approach as of September 1, 2021)(Appraiser: Japan Valuers Co., Ltd.)¥760 million

Leasing Status (As of October 13, 2021) (Note 8)
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 9)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)1
Not disclosed
Not disclosed
Not disclosed
100.0%
67,353.35 m2
67,353.35 m2
August2017—

August2018

August2019—

August2020——

August2021
100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
Floor Area
Area of adjacent building, including parking lots, (5,744.32 m2) is also included.
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%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
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.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith September 1, 2021 as the appraisal date.
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).
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 -(2)Summary of Asset to Be Disposed of
NMF Utsunomiya Building＜Reasons for the Disposition＞
Based on a comprehensive consideration of such factors as the possibility of future competitiveness decline basedon the increase in repair costs due to the aging of the building and the future supply situation, as part of asset
replacement aimed at improving the quality of the portfolio, it was decided to dispose of the Asset.

＜Summary of the Asset to be Disposed of＞
Property Name
Type of Asset
TrusteeTerm of Trust Agreement
Registry

Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Land

Area (Note 1)

Floor Area

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note 4)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 5)
Difference
Appraisal Value and Method

NMF Utsunomiya Building
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
From July 5, 2001 to July 4, 2031
2-1-1 (Total 10 parcels of land) Baba-dori, Utsunomiya-shi, Tochigi
Prefecture)
2-1-1 Baba-dori, Utsunomiya-shi, Tochigi Prefecture
5-minute walk from Tobu-Utsunomiya Station on the Tobu-UtsunomiyaLine
15-minute walk from Utsunomiya Station on the JR Utsunomiya Line
December 7, 1999
Retail,OfficeTen-floor steel-framed/steel framed reinforced concrete structure withflat roof and two underground levels
1,545,13 m2 (Note 2)
10,479.63 m2
Ownership (Partial land lease right)
Ownership
100% (Note 3)
600%
None
Nomura Real Estate Partners Co., Ltd.
2.67% (Based on the Earthquake PML Appraisal Report as of
September 2021 by Sompo Risk Management Inc.)
・The property management companies, Nomura Real Estate Partners,
Co., Ltd., are each considered a related party under Investment TrustAct.
¥2,320 million¥2,720 million¥2,445 million¥274 million¥2,390 million (Based on the capitalization approach as of August 31,2021) (Appraiser: The Tanizawa Sogo Appraisal Co., Ltd.)¥145 million

Appraisal NOI (Note 6)
Leasing Status (As of October 13, 2021) (Note 7)
Total Number of Tenants
32
Total Rental Income(Annual)¥243 million (Including common area management fee)
Security Deposits¥185 million
Occupancy Rate
100.0%
Total Leased Floor Space
5,882.20 m2- 5 -Total Leasable Floor SpaceHistorical Occupancy Rates(Note 9)5,882.20 m2
August2017

August2018

August2019

August2020

August2021

100.0%

100.0%

97.3%

94.1%

94.4%

(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 rights of 18.01 m2 are also included.
(Note 3) Building Coverage Ratio
The Asset is located in a commercial zone where the building coverage ratio is 80% in principle. However, because the Assetis a certified fireproof building in a corner lot, the applied coverage ratio is 100%.
(Note 4) 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 period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
(Note 5) Book Value
Anticipated book value at the date of disposition.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with
August 31, 2021 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Property.
“Total Rental Income” is the amount obtained by multiplying the monthly rent stated in the lease agreements by the total
number of end tenants actually leasing space in the building of the Property by 12 (truncated at the nearest million yen).
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

- 6 -4. Profile of Seller of the Asset to be Acquired
Company Name

Nomura Real Estate Development Co., Ltd.

Head Office

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

Representative

Daisaku Matsuo, President & CEO

Principal Business

Real Estate

Capital¥2,000 million (as of April 1, 2021)

Established

April 15, 1957

Net Assets¥193.0 billion (as of March 31, 2021)

Total Assets¥1,432.0 billion (as of March 31, 2021)

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

CapitalPersonal

Transactions

Related Party
Status

Nomura Real Estate Development Co., Ltd. holds 4.47% of the Fund’s investment
units (as of August 31, 2021). 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. Profile of Transferee of the Asset to be Disposed of
As the Fund has not obtained a consent with the Purchaser, who is a joint‐stock company, this information is
not disclosed. As of today, neither the Fund nor the Asset Management Company has any notable capital, personnel
or transactional relationship with the Purchaser, and the Purchaser is not a related party of either the Fund or the AssetManagement Company.

- 7 -6. Status of Owner of the Asset 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 Asset to be Acquired” above

Background/Reasons for
Acquisition, etc.

Previous Owner and/or Trustee——

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.

7. Transactions with Related Parties(1) Transactions related to the acquisition of the Asset to be Acquired
The acquisition of the Asset 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) Transactions related to the disposition of the Asset to be Disposed of
There is no transactions with related parties.
(3) The property management of Landport Ome Ⅲ
The property management companies of Landport Ome Ⅲ, 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 Ⅲ 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 (3) above falls under the category of transactions between theFund 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 been obtained.

- 8 -8. Form of Payment, etc.
(1) Form of Payment
Regarding the disposition, on the scheduled sale date, the Fund will receive from the seller the entire purchase priceof the Property to Be Sold in a lump sum. The Fund plans to use the cash obtained through the sale of the Property
for portfolio management, including the repayment of borrowings and the acquisition of properties.
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.
(2) Impact on the Financial Position of the Fund in Case of a Failure to Fulfill Our Forward Commitment
The sale agreement associated with the Acquisition (the “Sale Agreement”) is considered to be a forward
commitment (Note) as stipulated in the Financial Services Agency’s Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc. The Sale Agreement includes the provisions below.
(Note)

Defined as purchase and sale agreements or similar contract which are signed one month or more in advance of the actual
date on which the purchase price is paid and the property is transferred to the purchaser.

i.

Under the Sale Agreement, procuring funds through the issuance of new investment units by theacquisition date is set forth as a condition precedent for the obligation of the buyer.
Where there is material breach of terms of the contract by the seller or buyer (hereinafter such seller orbuyer shall be referred to as the “violating party”), the other party may cancel the contract if such breachis not remedied after the passage of a prescribed period following the date of the non- violating party
issuance of a notification requiring the violating party to perform its obligation or if such breach isobjectively and reasonably deemed impossible to remedy.
If the contract is cancelled in accordance with paragraph ii) above, the non-violating party may require theviolating party to pay a penalty charge that is equivalent to 20% of the acquisition price. Where monetarydamage it has actually suffered due to the breach is in excess of 20% of the acquisition price, a claim forindemnification in excess of this 20% shall not be precluded.
The buyer may negotiate with the seller to change the acquisition price if the buyer has obtained an
appraisal report of the Asset to be Acquired and the appraisal value shown in the appraisal report goes
below the acquisition price. In such case, the buyer may cancel the contract without any indemnification orcompensation, if the parties have failed to agree on the acquisition price by the scheduled date ofacquisition.

ii.

iii.

iv.

9. Schedule for the Transaction
October 13, 2021

Conclusion of purchase and sale agreements for the acquisition of the Asset

October 14, 2021

Conclusion of purchase and sale agreements for the disposition of the Asset

October 29, 2021

Delivery of trust beneficiary rights of the Asset to be Disposed ofJanuary 6, 2022

Delivery of trust beneficiary rights of the Asset to be Acquired

10. Outlook
Regarding impact of the Transaction on operations in the fiscal period ending February 28, 2022 (September 1,
2021 to February 28, 2022) and the fiscal period ending August 31, 2022 (March 1, 2021 to August 31, 2022), pleaserefer to the “SUMMARY OF FINANCIAL RESULTS (REIT) for the 12th Fiscal Period Ended August 31, 2021”
announced today.
.

- 9 -

11. Appraisal Summary(1)Asset to Be Acquired
Property Name

Landport Ome Ⅲ

Appraisal Value¥18,300,000,000

Appraiser

Japan Valuers Co., ltd.

Appraisal Date

September 1, 2021
(Yen)

Amount orPercentage

Item
Capitalization Approach Price
Price Calculated by
Capitalization Approach

Grounds

18,300,000,000
theDirect18,200,000,000(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to Vacancies,etc.
(2) Operating Expenses
Maintenance Costs

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management Fees

Undisclosed

Advertisement for Leasing
Costs, etc.

Undisclosed

Insurance Premium

Undisclosed

Other Expenses(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Management ofUndisclosed(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted Cash
Flow Approach
Discount Rate

(Note)

Undisclosed

Taxes

Temporary Deposits, etc.

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated the standard level of stable net revenue
over the medium to long term based on acomprehensive consideration of such factors as the
cash flow analysis using the discounted cash flow
approach, and calculated by reducing thecapitalization rate.

760,550,057
Undisclosed(Note)

Undisclosed
762,602,251

4.2%

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.

18,300,000,000
4.0%Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the property’s specific characteristics.

- 10 -

Terminal Capitalization Rate
4.4%

Cost Approach Price

Calculated based on a comprehensive considerationof such 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.

18,400,000,000

Ratio of Land
Ratio of Building

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

62.1%
37.9%
Landport Ome III is a large-scale logistics facility and premises located in Ome,Tokyo, in the area known to have industrial parks from early days. Located near amajor highway and easy access from the Ome IC on the Metropolitan Inter-City
Expressway, it is well-situated as a logistic property. Under such locational conditions,
the Building is a newly constructed logistics facility with high versatility andfunctionality. This facility is capable of meeting the locational needs of logistics bases
in a variety of industries, and can be judged as being capable of stable operation overthe medium to long term. In consideration of the above, the appraisal value wasdetermined 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.

(2)Asset to Be Disposed of
Property Name
Appraisal Value
Appraiser
Appraisal Date

NMF Utsunomiya Building¥2,390,000,000
The Tanizawa Sogo Appraisal Co., Ltd.
August 31, 2021
(Yen)

Item

Capitalization Approach Price
Price
Calculatedbythe
DirectCapitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to Vacancies,etc.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

Amount orPercentage
2,390,000,000

2,270,000,000
257,874,511
273,736,432
15,861,921
39,528,384
27,881,628
11,720,000

Advertisement for Leasing
Costs, etc.
Taxes

An income-based value was calculated using thecapitalization approach by using the value calculatedusing the discounted cash flow approach as thebaseline and evaluating it using the income-based
approach.
Calculated by reducing a standard level of net cash
flow by the capitalization rate.
Calculated based in part on market rent levels.
Calculated based on the standard stable medium- tolong-term vacancy rate.

112,671,968

Repair Costs

Property Management Fees

Grounds

6,446,863

Calculated based in part on schedules ofmanagement contracting rates.
Calculated based on the balance results, etc.
Repair costs for the building were estimated withreference to the Engineering Report, the building’s
age, costs recorded at similar properties and otherfactors.
Calculated based on the property managementagreement.

2,063,414

Calculated based on the property managementagreement.

23,794,500

Calculated based on materials for fiscal 2021.

- 11 -

Insurance Premium

481,430

Other Expenses

515,749(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))

145,202,543
1,507,035

Calculated based on an investment yield of 1.0%.

26,370,000

Calculated based in part on past levels of income
and costs, and on the land lease contract.
Calculated with reference to the Engineering
Report, the building’s age, amounts recorded atsimilar properties and other factors.

120,339,578(7) Capitalization Rate

5.3％

Price Calculated by the Discounted Cash
Flow ApproachCalculated based mainly on the yield of similar
office building transactions, with reference to thecharacteristics of the area surrounding the property,
the property’s particular characteristics and otherfactors.

2,440,000,000

Discount Rate

5.3％

Terminal Capitalization Rate
Cost Approach Price

Calculated based on relevant insurance premium
rate tables.
Calculated based in part on past levels of income
and costs, and on the land lease contract.

5.5％

Calculated with reference to the individual risks forthe property and other factors.
Calculated based on the capitalization rate, withconsideration given to levels of future uncertainty
and other factors.

1,990,000,000

Ratio of Land

29.2％

Ratio of Building

70.8％

Matters Noted in Reconciliation ofIndicated Value and Determination-of Appraisal Value

Exhibits
Exhibit 1 Overview of the Portfolio after the Transaction
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/- 12 -

Exhibit 1
Overview of the Portfolio after the Transaction(¥ million)
Area

Greater Tokyo
Area (Note 1)

Sector(Anticipated) Total
Other Areas

Acquisition Price(by Sector)

Investment Ratio(%) (Note 2)

Office401,655

69,610471,265

43.5

Retail

111,588

68,855

180,444

16.7

Logistics

214,7223,460

218,182

20.1

Residential

168,719

33,328202,047

18.7

Hotels

―

6,250

6,250

0.6

Others

4,900

―

4,900

0.5

(Anticipated)
Total Acquisition Price(by Area)

901,585

181,503

1,083,089

100.0

83.2

16.8

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 Asset to be Acquired
Landport OmeⅢ