[For Translation Purposes Only]

February 27, 2024

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

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

1.

Summary of Asset to Be Acquired

Property Name

Scheduled Date
Use of Purchase andSales Agreement

Hotel Wing International
HotelsPremium Kanazawa Ekimae

February 29,
2024

Scheduled Dateof Acquisition

SellerMarch 1, 2024

Hyakumangoku
Property Godo
KaishaPresence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note1)

No

2,161

(Note1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note2) As of the date of this document, the seller holds the Asset to be Acquired as a beneficial interest in trust of real property, however, throughconsultation with the seller, the seller will cancel the trust agreement on the same date of the scheduled date of acquisition and transfer the asset
to be Acquired of as an actual real property. The same shall be applied throughout this document.

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

Reasons for the Acquisition
The Fund determined that the 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 ofIncorporation.
The business condition of the Asset to be Acquired is on an upward trend as demand for accommondation in Japan isrecovering due to lifting of the border measures including entry restrictions for foreign nationals in April 2023. In November
2023, the total number of overnight guests, including international visitors, marked an increase of +6.6% against preCOVID figures in 2019 (Note 1). Moreover, against a backdrop of resuming Chinese group tours in August 2023, the total
number of overnight stays for international visitors for November 2023 was up 31.1% compared with the figures from2019 (Note 1), and further tailwind is expected in the future.
Kanazawa City, where the hotel to be acquired this time is located in, is the capital of Ishikawa Prefecture and the businesscenter of the Hokuriku region, and there are many tourist spots, such as Kenroku-en Garden, Omicho Market, 21st Century
Museum of Contemporary Art, Kanazawa, Kanazawa Castle Park and Higashi Chaya District in Kanazawa City. Further,since the new section of the Hokuriku Shinkansen (between Kanazawa and Tsuruga) is scheduled to open by March, 2024
and access to the Kansai region and Nagoya Metropolitan Area will improve, demand for accommodations by domestic
and overseas visitors can be expected to grow further in the future.
－ １ －Please refer to 3. Summary of Asset to Be Acquired of below for details of the reasons for acquisition of Asset to be
Acquired.
(Note1) Source: Overnight Travel Statistics Survey announced on January 31, 2024, Japan Tourism Agency

－ ２ －

3.

Summary of Asset to Be Acquired
Hotel Wing International Premium Kanazawa Ekimae＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・ The Asset is excellent for convenient transportation since it is located at 5 -minute walk from theKenrokuen Exit (east exit) of the JR Kanazawa Station, which is a stop on the Hokuriku Shinkansen.
Therefore, the Asset can capture the accommodation needs of business passengers in the Hokuriku region
and also attract domestic and overseas leisure passengers since they are able to use bus routes from the bus
terminal in front of the station, which serves as a foot for tourism in the city to enjoy the famous tourist
spots representing Kanazawa.
・ The guest rooms of the Asset range from about 15 to 20 m 2 with just over 40% of the 121 rooms being
twin rooms, and they cater to a wide range of accommodation needs, including not only business guests
but also leisure guests. In addition, the front desk and restaurant are located on the top floor to provide
added value, including the view from the observation deck.
・ minacia co., ltd, the hotel operator, is a hotel management company that operates hotels nationwide, suchas “Hotel Wing International”, a lodging-specific hotel brand. It operates 41 hotels and 5,480 guest rooms(as of August 10, 2023, information from the company's press release). Accordingly, it can be expected tooperate stably with operational know-how that leverages its nationwide chain merits.

＜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 3)
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note 4)

Notes
AnticipatedAcquisition Price

Hotel Wing International Premium Kanazawa Ekimae
Real estate
75 Horikawashinmachi, Kanazawa City, Ishikawa
8-13 Horikawashinmachi, Kanazawa City, Ishikawa
5-minute walk from Kanazawa Station on the JR Hokuriku Line
4-minute walk from Hokutetsu-Kanazawa Station on the Hokutetsu-Asanogawa
Line
February 10, 2018
Hotel
Thirteen-floor steel-framed reinforced structure with a flat roof
Nikki Sekkei Co., Ltd.
Kumagai Gumi Co., Ltd.
Urban Housing Evaluation Center
498.06 m2
3,099.88 m2
Ownership
Ownership
100% (Note 2)
600%
None
THE DAI-ICHI BUILDING CO., LTD.
－－
1.1％(Based on the Earthquake PML Appraisal Report as of January 2024 by
Sompo Risk Management Inc.)
Not applicable.
¥2,161 million－ ３ －¥2,270 million (Based on the capitalization approach as of December 1, 2023)(Appraiser: JLL Morii Valuation & Advisory K.K.)
Appraisal NOI (Note 5)¥105 million
Leasing Status (As of December 31, 2023) (as of Scheduled Date of Acquisition) (Note 6)
Total Number of Tenants
1
Name of Tenant
minacia co., ltd
Hotel Operator
minacia co., ltd
Total Rental Income (Annual) Undisclosed (fixed rent)
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
3,335.79 m2
Total Leasable Floor Space
3,335.79 m2
December
December
December
December
December
Historical Occupancy Rates
2019
2020
2021
2022
2023
(Note 7)100.0%
100.0%
100.0%
100.0%
100.0%
Appraisal Value and Method(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) Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. However, because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, the applied coverage ratio is 100%.
(Note 3) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(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) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with
December 1, 2023 as the appraisal date.
(Note 6) Leasing Status“Total Number of Tenants” is based on the fixed-term lease agreement that is expected to go into effect on the dateof acquisition.
“Name of Tenant” is based on the fixed-term lease agreement that is expected to go into effect on the date ofacquisition.
“Total Rental Income” and “Security Deposits” are both undisclosed as the consent from the tenant has not beenobtained.
“Total Leased Floor Space” indicates the total floor space presented based on fixed-term lease agreement that is
expected to go into effect on the date of acquisition.
(Note 7) Historical Occupancy Rates

The historical occupancy rates are based on the information from the seller.

4.

Profile of Seller of the Asset to be Acquired

Company Name
Head Office
Representative
Principal Business
CapitalEstablished
Net Assets
Total Assets

Hyakumangoku Property Godo Kaisha
Nihonbashi 1-chome Building, 1-4-1 Nihonbashi, Chuo-ku, Tokyo,
MJIA ISH, Managing Partner
1. Acquisition, sale and management of beneficial interests in trust in which real estateis entrusted;
2. Acquisition, sale, leasing and management of real estate; and3. Any other businesses incidental to any of the preceding items.
100,000 yen
July 10, 2017
Not disclosed since the seller’s consent for disclosure has not been obtained
Not disclosed since the seller’s consent for disclosure has not been obtained

Major Shareholder
Not disclosed since the seller’s consent for disclosure has not been obtained(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller
Neither the Fund nor the Asset Management Company has any capital relationship with
Capitalthe said company. In addition, any persons or companies associated with the Fund or the－ ４ －Personal

Transactions

Related Party
Status5.

Asset Management Company have no notable capital relationship with those associatedwith the relevant company.
Neither the Fund nor the Asset Management Company has any personal relationship withthe said company. In addition, any persons or companies associated with the Fund or the
Asset Management Company have no notable personal relationship with those associatedwith the relevant company.
Neither the Fund nor the Asset Management Company has any notable transactions withthe said company. In addition, any persons or companies associated with the Fund or the
Asset Management Company have no notable transactions with those associated with therelevant company.
The said company does not fall under the definition of a related party of the Fund or the
Asset Management Company for the accounting purpose. In addition, any persons orcompanies associated with the said company does not fall under the definition of a related
party of the Fund or the Asset Management Company for the accounting purpose.

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

6.

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

7.

Form of Payment, etc.
Regarding the acquisitions, 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.

9.

Schedule for the Acquisition
February 29, 2024

Conclusion of a purchase agreement for the acquisition of the Asset

March 1, 2024

Acquisition of the Asset to be Acquired

Outlook
Since the Transaction will be implemented after the end of the fiscal period ending February 2024 (September 1, 2023
to February 29, 2024), there will be no impact on the operating status for the fiscal period ending February 2024. Also, as
the effect of the disposition on the operating status of the entire portfolio for the fiscal period ending August 2024 (March
1, 2024 to August 31, 2024) is immaterial, there is currently no change in the outlook for the fiscal period ending August
2024.

－ ５ －

10. Appraisal Summary
Property Name
Appraisal Value
Appraiser
Appraisal Date

Hotel Wing International Premium Kanazawa Ekimae¥2,270,000,000
JLL Morii Valuation & Advisory K.K.
December 1, 2023
(Yen)

Item
Capitalization Approach Price
Price Calculated by the Direct Capitalization
Approach(1) Operating Income
Total Potential Income, sum of (a) to(d)(a) Rental Income including Common
Service Expenses(b) Utilities Costs Income

Amount orPercentage
2,270,000,000
2,310,000,000
Undisclosed
Undisclosed
Undisclosed
Undisclosed(c) Parking Lot Income

Undisclosed(d) Other Income

Undisclosed

Losses due to Vacancies, etc.

Undisclosed

Bad Debt Loss

Undisclosed(2) Operating Expenses

Undisclosed

Maintenance Costs

Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management Fees

Undisclosed

Advertisement for Leasing

Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Other Expenses

Undisclosed(3) Net Operating Income from Leasing
Business ((1) - (2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow((3) + (4) - (5))(7) Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach(Undisclosed)

105,729,000
Undisclosed(Undisclosed)

Undisclosed
103,970,000
4.5%Calculated in consideration of the property’s local andspecific characteristics with reference to yields on
investments in similar properties

2,230,000,000

Discount Rate

4.3%

Terminal Capitalization Rate

4.7%

Cost Approach Price

Grounds
Determined by associating the price calculated by the direct
capitalization approach with the price calculated by thediscounted cash flow approachCalculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

1,440,000,000

Ratio of Land

61.9%

Ratio of Building

38.1%

－ ６ －

Calculated in consideration of the property’s local andspecific characteristics with reference to yields on
investments in similar properties
Calculated with consideration of the above capitalization
rate and other factors such as the probable future movementof the yield on investment

Matters Noted in Reconciliation ofIndicated Value and Determination of
Appraisal Value

The Property is located within walking distance from Kanazawa Station, which is on the JR Hokuriku
Main Line and the Hokuriku Shinkansen, and it is a lodging-specific hotel located in a region where thehotels concentrated therein serve as accommodation centers for businesses and tourism. With
Kanazawa Station as the starting point, the Property has locational advantage given that travelling by
bus provides access to an abundance of tourist resources, including Kenrokuen, and the Property,
which was constructed five years ago, has competitiveness in the area in terms of the quality of thebuildings and facilities.
The hotel management status is also expected to remain stable in the future as the tourism demand in
Kanazawa City rises.
Taking the above factors into consideration, the appraisal value was determined by focusing on theincome value that appropriately reflects the investment profitability value.

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

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Acquisition

Exhibit 2

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

Others(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

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

Office397,115

65,100462,215

42.0

Logistics

220,472

3,460

233,932

20.3

Residential(including healthcare
facilities)

188,852

27,934

216,786

19.7

Retail111,768

67,890179,659

16.3

Hotels2,360

11,611

13,971

1.3

Others

4,900

―

4,900

0.4

(Anticipated) Total
Acquisition Price(by Area)

925,468

175,996

1,101,464

100.0

16.0

100.0

Investment Ratio (%)(Note 2)84.0

(Note 1) “Greater Tokyo Area” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other Areas” refers
to cabinet-order designated cities, prefectural capitals, and cities having a population of at least 100,000 and their peripheral areas,
excluding those in Greater Tokyo Area.
(Note 2) “Investment Ratio” indicates the ratio of the (anticipated) total acquisition price of properties for each use or in each area to the(anticipated) total acquisition price of the entire portfolio. As the figures are rounded to the first decimal place, they may not add up to
exactly 100%.

Exhibit 2
Photos and Map of the Asset to be Acquired