[For Translation Purposes Only]

June 25, 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.
Masaomi Katayama, 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 a property (the “Acquisition”), as described below.

1.

Summary of Asset to Be Acquired

Property Name
PRIME URBAN
Nishi Nippori

Use

Residential

Scheduled Dateof Purchase andSales Agreement

Scheduled Dateof Acquisition

June 27, 2024

June 27, 2024

SellerPresence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note 1)

DEAR
LIFE
CO.,LTD.

None

981

(Note2)(Note1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note2) The current property name is “DeLCCS NISHINIPPORI, ”but it will be changed to the above name promptly upon NMF’s acquisition.

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.

－ １ －

3.

Summary of Asset to Be Acquired
PRIME URBAN Nishi Nippori＜Reasons for the Acquisition of the Asset＞
The main strengths of the Asset to be Acquired are as follows.
・The Asset is 7-minute walk from the Tokyo Metro Chiyoda Line Nishi-Nippori Station, and 8-minute walkfrom the JR Nishi-Nippori Station. Travel time is 9 minutes to Otemachi Station, 13 minutes to Tokyo
Station, and 20 minutes to Shinjuku Station. Accordingly, the Asset has good access to t erminal stations andmajor business and commercial areas, making it excellent in terms of convenient transportation.
・The Asset boasts high convenience for daily living as there are financial institutions, supermarkets, convenience
stores, and restaurants in the area surrounding Nishi-Nippori Station, which is the nearest station. Solid demand canalso be expected for the Asset as all of its units are family-oriented two-bedroom units with an area ofapproximately 65 m2.
・The Asset had been designated as specified good rental housing until March 2024, and its rent has a large gap
with market rent. Therefore, by executing construction works for enhancing the value of common spaces
and exclusive use spaces, medium- to long-term upside can be expected.

＜Summary of the Asset to be Acquired＞
Property Name
Type of AssetRegistry

Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasing Units
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)(Note2)
Building
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note 4)Master Leasing Company
Type of Master Leasing(Note 5)

Seismic Risk (PML)(Note 6)PRIME URBAN Nishi Nippori
Real estate
1-355 and 371 (one-fifth of the combined parcels of land) Nishi-Nippori,
Arakawa Ward, Tokyo
1-49-10 Nishi-Nippori, Arakawa Ward, Tokyo
8-minute walk from Nishi-Nippori Station on the JR Line
7-minute walk from Nishi-Nippori Station on the Nippori Toneri Liner andthe Tokyo Metro Chiyoda Line
5-minute walk from Shin-Mikawajima Station on the Keisei Honsen Line
8-minute walk from Mikawajima Station on the JR Joban Line
February 25, 2004
Residential , Office
10-floor steel-reinforced concrete structure with a flat roof
19
Powers Project Management First-Class Registered Architectural Office Co.,Ltd.
Powers Project Management Co., Ltd.
Urban Housing Evaluation Center
416.52 m2
1,438.52 m2
Ownership
Ownership
100%(Note 3)
500%
None
Tokyu Housing Lease Corporation
Tokyu Housing Lease Corporation
Pass through5.6% (Based on the Earthquake PML Appraisal Report as of April 2024 by
Sompo Risk Management Inc.)－ ２ －To conform with urban planning, a road is to be constructed on theProperty’s north side. The timing of this construction has yet to be
Notes
determined. When the plan is executed, the Property’s boundary will moveback approximately 6.2 m from the current boundary line of the road on its
north side, and the property’s land area will decrease by approximately 93 m2.
Anticipated Acquisition Price¥981 million¥1,140 million (Based on the capitalization approach as of May 1, 2024)
Appraisal Value and Method(Appraiser: Japan Valuers Co., Ltd.)(Note
7)
Appraisal NOI¥45 million
Leasing Status (As of April 30,2024) (Note 8)
Total Number of Tenants
19
Total Rental Income (Annual)¥32 million
Security Deposits¥6 million
Occupancy Rate100%
Total Leased Floor Space
1,297.63 m2
Total Leasable Floor Space
1,297.63 m2
April
April
April
April
April
Historical Occupancy Rates
2020
2021
2022
2023
2024
(Note 9)100.0%
100.0%
100.0%
100.0%
100.0%(Note 1) Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Land Area
Under Article 42, Paragraph 2 of the Building Standards Act, the land includes the area of about 20.84 m2 (a private road), which isregarded as a road.
(Note 3) Building Coverage Ratio
As the location of the Asset is within a commercial zone, a building coverage ratio of 80% is normally applied; however, the applied ratio
has been increased to 100% because the Asset is a certified fireproof building in a fire prevention zone.
(Note 4) Property Management Company
Property Management Company refers to the one that is scheduled to be appointed after acquisition.
(Note 5) Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. Note that the “pass-through type” is a scheme where amaster lease company pays the same amounts as the rents stipulated in lease agreements with end-tenants.
(Note 6) PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50 years with 10%
probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building) as a ratio (percentage) of the
expected recovery cost to the replacement cost.
(Note 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with April 1, 2024
as the appraisal date.
(Note 8) Leasing Status“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the leaseagreements with the end tenants actually leasing space in the building of the Asset as of April 30, 2024 (rounded down to the nearest
million yen). The figure does not include any other incidental rent that may be agreed upon in connection with the said lease agreements,
such as parking fees, signboard fees and warehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of April 30, 2024 by Total Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of April 30, 2024.
“Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities, residential facilities, hotels, etc. within
the Asset that can be leased as of April 30, 2024 (if any common area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller. Note that the occupancy rates from the end of April 2020 tothe end of April 2023 are those for the residential area only because as for the office area, which accounts for 125.20 ㎡ of the Asset, theoccupancy rates after the current lessee moved in are unknown.

－ ３ －

4.

Profile of Seller of the Asset to be Acquired

Company Name
Head Office
Representative

DEAR LIFE CO., LTD.
Hulic Kudan Building 2F, 1-13-5 Kudankita, Chiyoda Ward, Tokyo
Yukihiro Abe, Representative Director and President
Real estate development, investment, brokerage, leasing, sales, and management work
Real estate appraisal, market survey, and consulting
Surveying, planning, design, supervision, and execution of construction works in general,
as well as contracting of such work
Principal BusinessContracting of security and safety management operations for buildings, facilities, etc.,
maintenance for such operations, and work related to facilities and improvements
Planning, design, operations, and management of hotels, inns, and otheraccommodations, restaurants, amusement places, beauty salons, and massage and othercare facilities, as well as consulting on such places
Capital¥4,125 million(As of March 31, 2024)
Established
November 1, 2004
Net Assets¥22,501 million(As of March 31, 2024)
Total Assets¥45,322 million(As of March 31, 2024)
Dearness Co., Ltd. (35.41%)
Major Shareholder
The Master Trust Bank of Japan, Ltd. (trust account) (9.26%）(Shareholding Ratio)(As of March 31, 2024)
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 withthe said company. In addition, any persons or companies associated with the Fund or the
CapitalAsset 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
Personal
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 theTransactions
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 theRelated Party Asset Management Company for the accounting purpose. In addition, any persons or
Statuscompanies 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.

5.

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 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.

－ ４ －

8.

9.

Schedule for the Acquisition
June 25,2024

Date of decision on acquisition of the Asset to be Acquired

June 27, 2024

Date of purchase and sales agreement pertaining to the acquisition of the Asset to
be Acquired and date of payment

June 27,2024

Acquisition of the Asset to be Acquired

Outlook
There is currently no revision to the forecast for the fiscal period ending August 31, 2024 (March 1, 2024 to August 31,2024) and the fiscal period ending February 28, 2025 (September 1, 2024 to February 28, 2025) because the impact of theAcquisition on operation of the entire portfolio is minimal.

－ ５ －10. Appraisal Summary
Property Name

PRIME URBAN Nishi Nippori

Appraisal Value¥1,140,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

May 1, 2024

(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(c) Parking Lot Income

Amount orPercentage

Grounds

1,140,000,000
1,230,000,000
58,223,196
60,685,726
58,926,972

0
1,758,754

Losses due to Vacancies, etc.

2,462,530
0(2) Operating Expenses

12,410,025

Maintenance Costs

1,798,800

Utilities Costs

766,066

Repair Costs

2,215,109

Property Management Fees

1,131,127

Advertisement for Leasing

2,528,699

Taxes

2,972,263

Insurance Premium

81,350

Other Expenses

916,611(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
ApproachCalculated in consideration of current rent and market rent levels,and other factors

0(d) Other Income

Bad Debt Loss

Determined by associating the price calculated by the direct
capitalization approach with the price calculated by the discounted
cash flow approachCalculated in consideration of current rent and market rent levels,and other factors
Calculated referring to actual amounts in the past, general levels,and other factors
Calculated in consideration of the current occupancy rate, market
occupancy rate, and other factors
Determined that no losses need to be recorded in considerationof factors such as the situation of the lessee
Calculated referring to estimated amounts, general levels, andother factors
Calculated referring to actual amounts in the past, general levels,and other factors
Calculated referring to the engineering report
Calculated referring to the planned amount, general levels, andother factors
Calculated referring to actual amounts in the past, general levels,and other factors
Calculated based on the actual amount for fiscal 2024, generallevels, and other factors
Calculated based on estimated amounts, general levels, and otherfactors
Calculated referring to actual amounts in the past, general levels,and other factors

45,813,171
121,527
1,242,583

Taking into consideration rates of interest on ordinary deposits
and other factors
Calculated referring to the engineering report

44,692,115
3.4%

Calculated in consideration of the property’s local and specificcharacteristics while referring to factors such as yields ontransactions of surrounding properties

1,110,000,000

Discount Rate

3.2%

Calculated in consideration of the property’s local and specificcharacteristics while referring to factors such as yields ontransactions of surrounding properties

Terminal Capitalization Rate

3.6%

Calculated in consideration of the above capitalization rate andother factors such as future trends in investment yields

Cost Approach Price

949,000,000

Ratio of Land

94.2%

Ratio of Building

5.8%

－ ６ －

Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

The property is an apartment house with an office in Arakawa Ward, Tokyo. The neighborhood and surrounding area isa residential and commercial area with medium- to high-rise apartment houses, and stores, business sites, etc. targetingneighboring residents. Many facilities that are convenient for daily life are available near the closest station, and the property
also boasts excellent access to various places in Tokyo as multiple train lines are available. In this area, the land is a lot of a
relatively large scale, and has high utilization efficiency as an apartment house site. In addition, the building has been
properly maintained and repaired, and is expected to have stable occupancy in the future. Taking the above factors into
consideration, the appraisal value was determined by focusing on the income value that appropriately reflects the investment
profitability value.

[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)

Office397,375

65,100462,475

41.9

Logistics

220,472

3,460

223,932

20.3

Residential(including healthcare
facilities)

189,833

27,934

217,767

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)

926,709

175,996

1,102,705

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
PRIME URBAN Nishi Nippori