[For Translation Purposes Only]

February 7, 2019

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.
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 Property Acquisition
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” 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 “Acquisitions”), as
described below.
1.

Overview of the Acquisition

No.

Property Name

Use

1

PMO Tamachi Higashi

Office2

PMO Hatchobori Shinkawa(Note 2)

Office3

PMO Kyobashi Higashi

Office4

PMO Ochanomizu

Office5

GEMS Shinbashi

Retail6

GEMS Kayabacho

RetailDate of
Purchase andSale Agreement(Scheduled)
Date of
Acquisition

SellerAnticipatedAcquisitionPrice(¥ million)(Note 1)
10,900March 1, 2019

3,805
2,880

February 7,
2019

April 1, 2019

Nomura Real
EstateDevelopment
Co., Ltd.

3,890
2,810
2,594

March 1, 20197

Summit Store
Honamanuma

Retail2,160

8GEMS Shin-Yokohama

Retail1,820

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 1 -

9

GEMS Namba

Retail3,800

10Landport Ome I

Logistics

13,640Total(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)48,299The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption
tax.
The asset to be acquired is a compartmentalized ownership building, and the Fund is to acquire a part of the building.
The assets to be acquired are a trust beneficial interest in trust of real estate as for Summit Store Honamanuma, and realestate properties as for the other assets to be acquired.
The assets to be acquired are planned to be acquired though the proceeds from the issuance of new investment units (seeNote 5), new anticipated borrowings and cash on hand.
For details of the issuance of new investment units, please refer to the press release, “Notice Concerning the Issuance of
New Investment Units and Secondary Offering of Investment Units” dated today.

The above ten properties are individually or collectively referred to hereinafter as the “Assets to be Acquired. ”
2.

Reasons for the Acquisitions

The Fund determined that acquiring Assets to be Acquired 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 andpolicies specified in the Fund’s Articles of Incorporation.

3. Summary of the Assets to be Acquired(1) PMO Tamachi Higashi
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Asset to be Acquired is located in the area between Tokyo station and Shinagawa station on the JR
Yamanote Line and other lines. This area is surrounded by residential areas such as Azabu and Kamiyamacho and has a direct access via the JR Keihin Tohoku Line from dormitory suburbs in the Saitama andKanagawa areas.
・The Asset to be Acquired has high transportation convenience with access to two stations on four lines. It is
located two-minute walk from Mita Station on the Toei Asakusa Line and Mita Line, and five-minute walkfrom Tamachi Station on the JR Yamanote Line and Keihin-Tohoku Line.
・The Asset to be Acquired has good access to major areas in central Tokyo, such as, via the JR Yamanote Line,six minutes to Tokyo Station, three minutes to Shinagawa Station and two minutes to Hamamatsu-choStation. Furthermore, the Asset to be Acquired is convenient for boarding on the Shinkansen from
Shinagawa Station and has direct access to the airport (It takes 21 minutes to Haneda Airport Domestic
Terminal Station via the Toei Asakusa Line.).
・There are many head offices of large companies in the vicinity of the Asset to be Acquired, such as NEC
Corporation, Morinaga & Co., Ltd., and Mitsubishi Motors Corporation, and headquarters of a wide range
of industries (including affiliates of the aforementioned companies) are concentrated in the area.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 2 -・Given the standard floor area of 604.61m2, its high convenience of transportation and its area characteristics,
high tenant demand is expected, particularly from foreign-affiliated companies and companies with head
offices in local areas.
・The Asset to be Acquired has an excellent structure and equipment level which meets the tenants’ needs of
BCP (Business Continuity Plans). For instance, it has Class I Structure with 1.5 times stronger earthquake
resistance than the new earthquake resistance standards (Note 1) and is installed with emergency power
generator (emergency power supply: 15 VA/m2, 24 hours) for the tenant's exclusive portions. In addition, theAsset to be Acquired has obtained “four stars” under the DBJ Green Building Certification Program (Note 2)
and has high reputation for its environmental and social considerations.
(Note 1) Meaning the current earthquake resistance standards based on the Building Standards Act.
(Note 2) The DBJ Green Building Certification Program is a certification system established by the Development Bank ofJapan (DBJ) to support real estates with environmental and social considerations. Their evaluation is made in termsof not only environmental performance but also convenience, comfort, disaster mitigation, crime prevention,energy conservation and community involvement. The evaluation results are shown on a five-star to one-star scale.
The same applies hereinafter.

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)
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 4)
Master Leasing Company(Note 5)

Type of Master Leasing(Note 5)

Seismic Risk (PML) (Note 6)
Environmental Assessment

PMO Tamachi Higashi
Real estate
4-210-9 Shiba, Minato Ward, Tokyo and 3 other lots
4-13-3 Shiba, Minato Ward, Tokyo
2-minute walk from Mita Station on the Toei Asakusa Line and Mita Line
5-minute walk from Tamachi Station on the JR Yamanote Line and KeihinTohoku Line
February 28, 2018
OfficeFlat-roofed steel-frame, 10F
Toda Corporation, First-Class Architect Office
Toda Corporation Tokyo Branch
Urban Housing Evaluation Center
965.44 m2 (Note 2)
7,088.17 m2
Ownership
Ownership
100% (Note 3)
700%
None
Nomura Real Estate Development, Co., Ltd.
Nomura Real Estate Development, Co., Ltd.
Pass through7.00% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)
DBJ Green Building Certificate 2017★★★★

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 3 -Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

・The property management company and master leasing company, Nomura Real
Estate Development Co., Ltd., is considered a related party under the Act on
Investment Trusts and Investment Corporations (“Investment Trust Act”).
¥10,900 million¥11,400 million (Based on the capitalization approach and as of December 1,
2018)(Appraiser: Japan Real Estate Institute)¥394 million

Leasing Status (As of November 30, 2018) (Note 8)
Total Number 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)7¥528 million¥478 million
100.0%
5,441.49 m2
5,441.49 m2
August2014—

August2015

August2016—

August2017——

August2018
77.8%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Land Area
Includes the setback area (10.37 m2) to be deemed part of a road under Article 42, Paragraph 2 of the BuildingStandards Act.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle.
Because the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied
coverage ratio is 100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with
Nomura Real Estate Development Co., Ltd. Under this agreement, the building of the Asset to be Acquired will becollectively leased to Nomura Real Estate Development Co., Ltd. for the purpose of subleasing. The master leaseagreement is a pass-through scheme, in which Nomura Real Estate Development Co., Ltd., the master lease company,
pays to the Fund the same amount as the total sum of the rent based on the lease agreements that the master lease
company concludes with end tenants.
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 anticipatedperiod 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.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal
report with December 1, 2018 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to
be Acquired as of November 30, 2018.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area managementfee” under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as ofNovember 30, 2018 multiplied by 12 (rounded down to the nearest million yen). The figure does not include anyother 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

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 4 -(Note 9)agreements (truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total
Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of November 30, 2018 (If thecommon area, etc. is leased, the floor space thereof is included.).
Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed.

(2) PMO Hatchobori Shinkawa
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Asset to be Acquired is located within walking distance to Tokyo Station on the JR Yamanote Line, etc.,
and is located one-minute walk from Hatchobori Station on the JR Keiyo Line, four-minute walk from
Hatchobori Station on the Tokyo Metro Hibiya Line, and seven-minute walk from Kayabacho Station on theTokyo Metro Hibiya Line and Tozai Line. It is highly convenient for transportation to major areas in the city
center via two train stations and three lines.
・The Asset to be Acquired is located in the east side of Tokyo Station on the JR Yamanote Line, etc. The
north side of this area is adjacent to the Kayabacho area, which is a financial district. On the contrary, on thesouth side, there are many enterprises engaged in fisheries because of the proximity to the Tsukiji area. In
addition, there is a convention hall sponsored by iron and steel-related companies and many long-established
enterprises engaged in iron and steel-related businesses in this area. Therefore, it is considered that demand
for a wide range of tenants can be expected, including the use of the headquarters of iron and steel-related
enterprises and the needs of regional headquarters in Tokyo.
・As the PMO series, 15 buildings (including PMO Kyobashi Higashi) have been completed in Chuo Ward
(Note) and thus, the Asset to be Acquired is expected to be highly recognized in the ward.
・The Asset to be Acquired is operated under the consideration of the business continuity of the tenant, forexample, by installing an emergency generator for the tenant's exclusive portions. In addition, the Asset to be
Acquired, with excellent level of facilities such as seismic performance, has also obtained "Four Stars" under
the DBJ Green Building Certification Program and has high reputation for its environmental and social
considerations.
(Note)

Includes properties which the Fund has not decided to acquire as of the date hereof and there is no guarantee toacquire these properties in the future.

Summary of the Asset to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)

PMO Hatchobori Shinkawa
Real estate
2-1 Shinkawa, Chuo Ward, Tokyo
2-9-11 Shinkawa, Chuo Ward, Tokyo
1-minute walk from Hatchobori Station on the JR Keiyo Line
4-minute walk from Hatchobori Station on the Tokyo Metro Hibiya Line
7-minute walk from Kayabacho Station on the Tokyo Metro Hibiya and Tozai Line
April 20, 2018

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 5 -Use (Note 1)
Structure (Note 1)
Architect
Builder

OfficeFlat-roofed steel-frame, 9F
Nomura Real Estate Development Co., Ltd., First-Class Architect Office
JFE Civil Engineering & Construction Corporation

Building Inspection Agency

Urban Housing Evaluation Center

Land
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 6)
Master Leasing Company

830.08 m2 (Note 2)
5,000.86 m2 (Note 3)
Right of site
Compartmentalized ownership
100% (Note 4)500%, 700% (Note 5)
None

Area (Note 1)(Note 7)

Nomura Real Estate Development, Co., Ltd.
Nomura Real Estate Development, Co., Ltd.

Type of Master Leasing(Note 7)

Pass throughSeismic Risk (PML) (Note 8)

5.34% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)

Environmental Assessment

DBJ Green Building Certification 2018★★★★

Notes

AnticipatedAcquisition Price

・The property management company and master leasing company, Nomura Real
Estate Development Co., Ltd., is considered a related party under the Investment
Trust Act.
・ A Memorandum of Understanding has been concluded with othercompartmentalized owners, which stipulates restrictions on the transfer of acompartmentalized ownership, such as a prior notice to other compartmentalized
owners and a right to consider purchasing the compartmentalized ownerships
prior to other potential purchasers.
¥3,805 million¥3,990 million (Based on the capitalization approach and as of December 1, 2018)(Appraiser: Japan Real Estate Institute)(Note
9)
Appraisal NOI¥149 million
Leasing Status (As of November 30, 2018) (Note 10)
Total Number of Tenants
5
Total Rental Income¥206 million(Annual)Security Deposits¥206 million
Occupancy Rate
100.0%
Total Leased Floor Space
2,533.55 m2
Total Leasable Floor Space 2,533.55 m2
AugustAugustAugustAugustAugustHistorical Occupancy Rates
2014
2015
2016
2017
2018
(Note 11)
—
—
—
—
83.3%

Appraisal Value and Method

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 6 -(Note 1)

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry. The
land area is the total area of the entire building site, and the share of the right of site (co-ownership interest) is 625/1,000.
The floor area is the total floor area of the entire building, and the exclusive area of the compartmentalized ownership tobe acquired by the Fund is 2,533.55 ㎡.
(Note 2) Land Area
The land area is the total area of the entire building site, and the share of the right of site (co-ownership interest) is
625/1,000.
(Note 3) Floor Area
The floor area is the total area of the entire building. The exclusive area of the compartmentalized ownership to beacquired by the Fund is 2,533.55 ㎡.
(Note 4) Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is100%.
(Note 5) Floor Area Ratio
As part of the land of the Asset to be Acquired is located in a commercial district with a floor area ratio of 500% and theother part is located in one with a floor area ratio of 700%, a weighted average figure based on the area ratio (561.09%)
will be applied.
(Note 6) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 7) Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura
Real Estate Development Co., Ltd. Under this agreement, the entire building of the Asset to be Acquired will becollectively leased to Nomura Real Estate Development Co., Ltd. for the purpose of subleasing excluding the exclusive
area subject to the self-use by other compartmentalized owners. The master lease agreement is a pass-through scheme, inwhich Nomura Real Estate Development Co., Ltd., the master lease company, pays to each compartmentalized owner thesame amount as the total sum of the rent based on the lease agreements that the master lease company concludes withend tenants. Under the master lease agreement, the rent to be paid to each compartmentalized owner is the sum of (i) therent to be earned from the leasable exclusive area of the entire building (excluding the exclusive area subject to the selfuse by other compartmentalized owners; the same shall apply hereinafter for the Asset to be Acquired) multiplied by theratio of the area of the exclusive area owned by each compartmentalized owner, and (ii) the rent to be earned from thecommon area, etc. of the building multiplied by the share interest in ownership of the common area, etc.
(Note 8) 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 ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
(Note 9) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith December 1, 2018 as the appraisal date.
(Note 10) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” indicates the part of the “monthly rent + monthly common area management fee” under the leaseagreements with the end tenants to whom the Asset to be Acquired is actually leased as of November 30, 2018. The
figure is the sum (rounded down to the nearest million yen) of (i) the amount obtained by multiplying the rent, etc. of theleasable exclusive area of the entire building by 12 times the ratio of the area of the exclusive area to be acquired by theFund, and (ii) the amount obtained by multiplying the rent, etc. of the common area, etc. of the entire building by 12times the share of co-ownership interest to be acquired by the Fund. 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 andwarehouse fees.
“Security Deposits” indicates the part of the amount of security and other deposits specified in the aforementioned leaseagreements. The figure is the sum (rounded down to the nearest million yen) of (i) the amount obtained by multiplying
the amount of the security deposit and guarantee related to the leasable exclusive area of the entire building by the ratioof the area of the exclusive area to be acquired by the Fund, and (ii) the amount obtained by multiplying the security
deposit and guarantee related to the common area, etc. of the entire building by the share of co-ownership interest to beacquired by the Fund.
“Occupancy Rate” is calculated by dividing the leased floor space as of November 30, 2018 by the leasable floor space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018. The master
lease agreement stipulates that the rent is the sum of (i) the amount obtained by multiplying the rent obtained from theNote: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 7 -leasable exclusive area of the entire building by the area ratio of such exclusive area, and (ii) the amount obtained bymultiplying the rent obtained from the common area, etc. of the entire building by the share of co-ownership interest.
Therefore, the figure mentioned above is the sum of (x) the area obtained by multiplying the leased area of the leasable
exclusive area of the entire building by the area ratio of the exclusive area to be acquired by the Fund, and (y) the area
obtained by multiplying the leased area of the common area, etc. of the entire building by the share of co-ownershipinterest to be acquired by the Fund.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of November 30, 2018 (If the common area,etc. is leased, the floor space thereof is included.). The master lease agreement stipulates that the rent is the sum of (i) theamount obtained by multiplying the rent obtained from the leasable exclusive area of the entire building by the area ratioof the exclusive area owned by each compartmentalized owner, and (ii) the amount obtained by multiplying the rent
obtained from the common area, etc. of the entire building by the share of co-ownership interest. Therefore, the leasablearea is the exclusive area to be acquired by the Fund plus the area obtained by multiplying the leasable common area, etc.
of the entire building by the share of co-ownership interest to be acquired by the Fund.
(Note 11) Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed.

(3) PMO Kyobashi Higashi
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Asset to be Acquired is located within walking distance from Tokyo Station on the JR Yamanote Line, etc.
In addition, it is two-minute walk from Hatchobori Station on the JR Keiyo Line, one-minute walk from
Hatchobori Station on the Tokyo Metro Hibiya Line, five-minute walk from Takaracho Station on the Toei
Asakusa Line, seven-minute walk from Kayabacho Station on the Tokyo Metro Hibiya Line and Tozai Lineand eight-minute walk from Kyobashi Station on the Tokyo Metro Ginza Line. As above, it has hightransportation convenience to major areas in central Tokyo with access to four train stations and five lines.
・The Asset to be Acquired is located in the area with a high concentration of securities business on the northside due to being adjacent to Kayabacho area, which is financial district, and fishing business on the south
side due to being located near Tsukiji area. Also, there is a convention hall sponsored by iron and steel-relatedcompanies and many long-established enterprises engaged in iron and steel-related businesses in this area. As
such, thanks to the needs for headquarters of iron and steel-related companies and its high transportation
convenience, the Asset to be Acquired is expected to benefit from a wide range of tenant demand including
the needs of the companies which intend to locate their headquarters in the area with good access to Tokyo
Station and the regional companies which intend to have their bases in Tokyo.
・The Asset to be Acquired introduces the “Pantry Select Plan” in which the layout of the pantry can beselected from three plans and thus, it can respond flexibly to changes in the tenant’s work style.
・As the PMO series, 15 buildings (including PMO Hatchobori Shinkawa) have been completed in Chuo Ward
(Note) and thus, the Asset to be Acquired is expected to be highly recognized in the ward.
・The Asset to be Acquired has excellent level of facilities such as seismic performance. It has also obtained"Three Stars" under the DBJ Green Building Certification Program and has high reputation for its
environmental and social considerations.
(Note)

Includes properties which the Fund has not decided to acquire as of the date hereof and there is no guarantee toacquire these properties in the future.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 8 -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)
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 4)
Master Leasing Company (Note5)

Type of Master Leasing (Note 5)
Seismic Risk (PML) (Note 6)
Environmental Assessment
Notes
AnticipatedAcquisition PricePMO Kyobashi Higashi
Real estate
3-6-3 Hatchobori, Chuo Ward, Tokyo
3-18-6 Hatchobori, Chuo Ward, Tokyo
1-minute walk from Hatchobori Station on the Tokyo Metro Hibiya Line2-minute walk from Hatchobori Station on the JR Keiyo Line
7-minute walk from Kayabacho Station on the Tokyo Metro Hibiya Line andTozai Line
8-minute walk from Kyobashi Station on the Tokyo Metro Ginza Line
5-minute walk from Takaracho Station on the Toei Asakusa LineMay 11, 2018
OfficeFlat-roofed steel-frame, 10F
Nomura Construction Industrial Co., Ltd., First-Class Architect OfficeNomura Construction Industrial Co., Ltd., Tokyo Head OfficeUrban Housing Evaluation Center
279.17 m2
2,051.35 m2
Ownership
Ownership
100% (Note 2)
600%, 700% (Note 3)
None
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Pass through
5.89% (Based on the Earthquake PML Appraisal Report (as of January, 2019)
by Sompo Risk Management Inc.)
DBJ Green Building Certificate 2018★★★
・The property management company and master leasing company, Nomura
Real Estate Development Co., Ltd., is considered a related party under theInvestment Trust Act.
¥2,880 million¥3,020 million (Based on the capitalization approach and as of December 1,
2018)(Appraiser: Japan Real Estate Institute)
Appraisal NOI (Note 7)¥110 million
Leasing Status (As of November 30, 2018) (Note 8)
Total Number of Tenants
8
Total Rental Income (Annual) ¥143 million
Security Deposits¥136 million
Occupancy Rate
88.9%
Appraisal Value and Method

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 9 -Total Leased Floor Space
Total Leasable Floor Space

1,521.76 m2
1,711.98 m2

Historical Occupancy Rates

August2014(Note 9)August2015—(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)August2016—

August2018

August
2017
—

—

66.7%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is100%.
Floor Area Ratio
As part of the land of the Asset to be Acquired is located in a commercial district with a floor area ratio of 600% and theother part is located in one with a floor area ratio of 700%, a weighted average figure based on the area ratio (699.52%)
will be applied.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura
Real Estate Development Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively
leased to Nomura Real Estate Development Co., Ltd. for the purpose of subleasing. The master lease agreement is a passthrough scheme, in which Nomura Real Estate Development Co., Ltd., the master lease company, pays to the Fund thesame amount as the total sum of the rent based on the lease agreements that the master lease company concludes withend tenants.
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 ofuse (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 December 1, 2018 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as of November 30,
2018 multiplied by 12 (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(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of November 30, 2018 (If the common area,etc. is leased, the floor space thereof is included.).
Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed.

(4) PMO Ochanomizu
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 10 -

・The Asset to be Acquired is located one-minute walk from Shinochanomizu Station on the Tokyo Metro
Chiyoda Line, two-minute walk from Ochanomizu Station on the JR Chuo Line and Sobu Line, six-minute
walk from Ogawamachi Station on the Toei Shinjuku Line, six-minute walk from Awajicho Station on theTokyo Metro Marunouchi Line and eight-minute walk from Akihabara Station on the JR Chuo-Sobu Line,and has high transportation convenience to major areas in central Tokyo with access to five train stations andten lines.
・The Asset to be Acquired is located in the area with a high concentration of educational institutions (such as
Meiji University, Tokyo Medical and Dental University and professional training colleges) and medical
facilities (such as Tokyo Medical and Dental University Medical Hospital and Nihon University Hospital) andis expected to benefit from a wide range of tenant demand including educational, medical andpharmaceutical industry. In addition, in recent years, in the area southeast of Ochanomizu Station on the
JR Sobu-Chuo Line, large complex facilities were built as part of redevelopment, such as “WATERRAS
Tower” and “Ochanomizu Soracity” containing large and multipurpose offices, residences and commercial
facilities. These days, moving in of major companies and concentration of offices (For instance, Nippon
Paper Industries Co., Ltd. and Hitachi Building Systems Co., Ltd. have their head offices in the abovementioned large complex facilities and Mizuho Securities Co., Ltd. also has an office therein.) is enhancing
this area’s value as a business district and the Asset to be Acquired is expected to benefit from stable tenant
demand.
・The Asset to be Acquired has excellent level of facilities such as seismic performance. It has also obtained"Four Stars" under the DBJ Green Building Certification Program and has high reputation for its
environmental and social considerations.
Summary of the Asset to be Acquired
Property Name
Type of Asset
Location
Registry(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect
Builder

PMO Ochanomizu
Real estate
4-4-1, Kanda-Surugadai, Chiyoda Ward, Tokyo and 1 other lot
4-4-1, Kanda-Surugadai, Chiyoda Ward, Tokyo and 1 other lot (Note 2)
1-minute walk from Shinochanomizu Station on the Tokyo Metro Chiyoda Line2-minute walk from Ochanomizu Station on the JR Chuo Line and Sobu Line
6-minute walk from Ochanomizu Station on the Tokyo Metro Marunouchi Line
6-minute walk from Ogawamachi Station on the Toei Shinjuku Line
6-minute walk from Awajicho Station on the Tokyo Metro Marunouchi Line
8-minute walk from Akihabara Station on the JR Yamanote Line, etc.
July 31, 2018
OfficeFlat-roofed steel-frame, 9F
Nomura Construction Industrial Co., Ltd., First-Class Architect OfficeNomura Construction Industrial Co., Ltd., Tokyo Head Office

Building Inspection Agency

Urban Housing Evaluation Center

Land
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio

403.76 m2
2,670.12 m2
Ownership
Ownership
100% (Note 3)

Area (Note 1)

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 11 -

Floor Area Ratio
Collateral
Property Management
Company (Note 5)
Master Leasing Company(Note 6)

Type of Master Leasing (Note6)

500%, 600% (Note 4)
None
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Pass throughSeismic Risk (PML) (Note 7)

5.08% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)

Environmental Assessment

DBJ Green Building Certificate

Notes
AnticipatedAcquisition Price

2018★★★★

・The property management company and master leasing company, Nomura Real
Estate Development Co., Ltd., is considered a related party under theInvestment Trust Act.
¥3,890 million¥4,080 million (Based on the capitalization approach and as of December 1,
2018)(Appraiser: Japan Real Estate Institute)
Appraisal NOI (Note 8)¥146 million
Leasing Status (As of November 30, 2018) (Note 9)
Total Number of Tenants
6
Total Rental Income¥195 million(Annual)Security Deposits¥188 million
Occupancy Rate
100.0%
Total Leased Floor Space
1,975.66 m2
Total Leasable Floor Space
1,975.66 m2
AugustAugustAugustAugustAugustHistorical Occupancy Rates
2018
2014
2015
2016
2017

Appraisal Value and Method(Note 10)—(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)———100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
The Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is100%.
Floor Area Ratio
As part of the land of the Asset to be Acquired is located in a commercial district with a floor area ratio of 500% and theother part is located in one with a floor area ratio of 600%, a weighted average figure based on the area ratio (585.06%)
will be applied.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura
Real Estate Development Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively
leased to Nomura Real Estate Development Co., Ltd. for the purpose of subleasing. The master lease agreement is a passthrough scheme, in which Nomura Real Estate Development Co., Ltd., the master lease company, pays to the Fund thesame amount as the total sum of the rent based on the lease agreements that the master lease company concludes with

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 12 -

end tenants.
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 ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
(Note 8) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with December 1, 2018 as the appraisal date.
(Note 9) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as of November 30,
2018 multiplied by 12 (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(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of November 30, 2018 (If the common area,etc. is leased, the floor space thereof is included).
(Note 10) Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed.
(Note 7)(5) GEMS Shinbashi
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The property is a four-minute walk from Shinbashi Station on JR Lines and the Tokyo Metro Ginza Line anda three-minute walk from Uchisaiwaicho Station on the Toei Mita Line, and is situated in a good location
offering excellent access.
・As the Shinbashi area is surrounded by various eateries and sales outlets, attracting a large number of nearby
office workers, such as from Uchisaiwaicho, Shiodome and Toranomon looking for restaurants and shops,
strong customer needs can be expected. In addition, the leased area per floor of the property ranges fromaround 37 tsubo to 49 tsubo, which is an fit size for operating restaurants. As such, the Fund expects that theproperty will provide stable tenant demand.
・With respect to the present composition of tenants, the property attracts a variety of stores that satisfy thediverse needs of the customers, differentiating the property from surrounding restaurant buildings that rent
their spaces mainly to chain-store type Japanese “izakaya” pub businesses. Therefore, the property is
expected to be competitive by maintaining a tenant composition of a wide-range of businesses that arecapable of accommodating the variety of needs of the customers.
Summary of the Asset to be Acquired
Property Name
Type of Asset
Location
Registry

GEMS Shinbashi
Real estate
2-5-8, Shinbashi, Minato Ward, Tokyo

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 13 -Street(Note 1)

AccessCompletion 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(Note 4)

Type of Master Leasing(Note 4)

Seismic Risk (PML) (Note 5)
Environmental Assessment

Notes

AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

2-12-8, Shinbashi, Minato Ward, Tokyo

4-minute walk from Shinbashi Station on JR Lines and the Tokyo Metro
Ginza Line
3-minute walk from Uchisaiwaicho Station on the Toei Mita LineMay 24, 2018
Store
Flat-roofed steel-frame/steel reinforced concrete, B1F/9F
Ichiken Co., Ltd., Tokyo Office, Registered Architect’s Office
Ichiken Co., Ltd., Tokyo OfficeUrban Housing Evaluation Center
261.08 m2
1,478.44 m2
Ownership
Ownership
100% (Note 2)
700%
None
Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass through
4.62% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)
Under application (Note 6)
・ The property management company and master leasing company, GeoAkamatsu Co., Ltd., falls under a related party under the Investment Trust
Act.
・ Pursuant to a contract with Nomura Real Estate Development Co., Ltd., theuse, for no consideration, of the trademark “GEMS Shinbashi” is subject tothe property management agreement and the master lease agreement with
Geo-Akamatsu Co., Ltd. remaining in full force and effect.
¥2,810 million¥2,870 million (Based on the capitalization approach and as of December 1,
2018)(Appraiser: DAIWA REAL ESTATE APPRAISAL CO., LTD.)¥108 million

Leasing Status (As of November 30, 2018) (Note 8)
Total Number of Tenants
Total Rental Income(Annual)Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 9)9¥141 million¥110 million
100.0%
1,257.14 m2
1,257.14 m2
August2014

August2015

August2016

August2017

August2018

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 14 -

—(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)

—

—

—

0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is
100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with GeoAkamatsu Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to GeoAkamatsu Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme, in which GeoAkamatsu Co., Ltd., the master lease company, pays to the Fund the same amount as the total sum of the rent based on
the lease agreements that the master lease company concludes with end tenants.
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 ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
Environmental Assessment
As of the end of January 2019, DBJ Green Building Certification is being applied for. There is no assurance that thecertification can be obtained and the contents of the certification, if obtained, is not yet determined.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with December 1, 2018 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofNovember 30, 2018, multiplied by 12 (rounded down to the nearest million yen). The figure does not include any otherincidental 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(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired as of November 30, 2018, that can be leased (If the common area,etc. is leased, the floor space thereof is included.).
Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed. Also,
the occupancy rates for August 2018 is indicated as 0% because the leases in this building have not commenced yet.

(6) GEMS KayabachoStrengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The property is a two-minute walk from Kayabacho Station on the Tokyo Metro Hibiya and Tozai Lines. As
such, the property has excellent access, which contributes to the good living environment of the area. In
addition, the property is easily visible along the shores of the Kamejima River.
・Located nearby waterways and parks, equipped with terraces and other refreshing spaces, the property
provides a sense of freedom to visitors. The property is expected to attract office workers in the NihonbashiKayabacho area, where securities companies and leading cosmetic companies are located. In addition, theNote: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 15 -

leased area per floor of the property ranges from around 39 tsubo to 50 tsubo, which is a fit size forrestaurant operation. As such, it is expected that the property will provide stable tenant demand.
・With respect to the present composition of tenants, the property attracts a variety of stores that satisfy thediverse needs of the customers, differentiating the property from surrounding restaurant buildings that rent
their spaces mainly to chain-store type Japanese “izakaya” pub businesses. Therefore, the property is
expected to be competitive by maintaining a tenant composition of a wide-range of businesses that arecapable of accommodating the variety of needs of the customers.
・The property has high quality facilities such as in light of seismic performance, and has received "Two Stars"
under the DBJ Green Building Certification, as a property with high environmental and social awareness.
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)
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 4)
Master Leasing Company(Note 5)

Type of Master Leasing(Note 5)GEMS Kayabacho
Real estate
1-9-1 Shinkawa, Chuo Ward, Tokyo, and 1 other lot
1-1-7 Shinkawa, Chuo Ward, Tokyo

2-minute walk from Kayabacho Station on the Tokyo Metro Hibiya and Tozai
Lines
February 13, 2018
Store
Flat-roofed steel-frame, 10F
Konoike Construction Co., Ltd., Tokyo Head Office, Registered Architect’s Office
Konoike Construction Co., Ltd., Tokyo Head OfficeUrban Housing Evaluation Center
318.26 m2
1,779.29 m2
Ownership
Ownership
100% (Note 2)500%, 700% (Note 3)
None
Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass through

6.12% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)
Environmental Assessment DBJ Green Building Certification 2017★★
・ The property management company and master leasing company, GeoAkamatsu Co., Ltd., falls under a related party under the Investment Trust Act.
・Pursuant to a contract with Nomura Real Estate Development Co., Ltd., the use,
Notes
for no consideration, of the trademark “GEMS Kayabacho” is subject to theproperty management agreement and the master lease agreement with GeoAkamatsu Co., Ltd. remaining in full force and effect.
Seismic Risk (PML) (Note 6)

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 16 -

AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)¥2,594 million¥2,720 million (Based on the capitalization approach and as of December 1,
2018)(Appraiser: DAIWA REAL ESTATE APPRAISAL CO., LTD.)¥112 million

Leasing Status (As of November 30, 2018) (Note 8)
Total Number 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)10¥142 million¥115 million
100.0%
1,495.49 m2
1,495.49 m2
August2014—

August2015

August2016—

August2017——

August2018
100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is100%.
Floor Area Ratio
As part of the land of the Asset to be Acquired is located in a commercial district with a floor area ratio of 500% and theother part is located in one with a floor area ratio of 700%, a weighted average figure based on the area ratio (529.15%)
will be applied.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with GeoAkamatsu Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to GeoAkamatsu Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme, in which GeoAkamatsu Co., Ltd, the master lease company, pays to the Fund the same amount as the total sum of the rent based on
the lease agreements that the master lease company concludes with end tenants.
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 ofuse (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 report,with December 1, 2018 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofNovember 30, 2018, multiplied by 12 (rounded down to the nearest million yen). The figure does not include any otherincidental 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(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 17 -

(Note 9)“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired as of November 30, 2018, that can be leased (If the common area,etc. is leased, the floor space thereof is included.).
Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed.

(7) Summit Store Honamanuma
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The vicinity of the property has abundant north-south direction bus traffic lines, and it is accessible toOgikubo Station on the JR Chuo-Sobu Line and the Tokyo Metro Marunouchi Line, Asagaya Station on the
JR Chuo-Sobu Line and Shimoigusa Station on the Seibu Shinjuku Line. In addition, the vicinity is located in
an area that is highly popular as a detached housing area with a high percentage of category 1 exclusive
district for low-rise residential buildings.
・The number of households in the commercial area within a radius of 1 km from the property is 30,000, andthe vicinity has an excellent market as a commercial area.
・In the vicinity of the property, the percentage of category 1 exclusive district for low-rise residentialbuildings is high, and the site for future store development is limited. As a result, competition will not be soharsh so that the property is expected to bring stable retail business.
・The property was newly opened on October 2, 2018, and it is expected that the property will be able todifferentiate itself by offering easy-to-buy and comfortable sales floor services, including the adoption of a
new layout for sales floor, the installation of eating spaces such as “Sami Cafe”, and the placement ofdedicated “information staff.”
・The property has high quality facilities such as in light of seismic performance, and has obtained “Three stars”
rated by the DBJ Green Building Certification System and is highly evaluated for its environmental and social
considerations.

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
Area (Note 1)
Land

Summit Store Honamanuma
Trust beneficiary interests in real estate
Mitsubishi UFJ Trust and Banking Corporation
From March 31, 2004 to September 13, 2048
2-185-1 Honamanuma, Suginami Ward, Tokyo
2-42-11 Honamanuma, Suginami Ward, Tokyo
12-minute walk from Shimoigusa Station on the Seibu Shinjuku Line
1-minute walk from Shimoigusa 1 chome Bus Stop on the Kanto Bus
September 4, 2018
Store
Flat-roofed steel-frame, 3F
Fukuda Corporation, Tokyo Office, Registered Architect’s Office
Fukuda Corporation, Tokyo Head Office
Awey Building Evaluation Network Inc.
1,831.00 m2

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 18 -

Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML) (Note 5)
Environmental Assessment
Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 6)

2,014.36 m2
Ownership
Ownership
60%, 90% (Note 2)
100%, 200% (Note 3)
None
Geo-Akamatsu Co., Ltd.
——
6.94% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)
DBJ Green Building Certification 2018★★★
・The property management company, Geo-Akamatsu Co., Ltd., fall under arelated party under the Investment Trust Act.
¥2,160 million¥2,880 million (Based on the capitalization approach and as of December 1,
2018)(Appraiser: JLL Morii Valuation & Advisory K.K.)¥130 million

Leasing Status (As of November 30, 2018) (Note 7)
Total Number of Tenants
Name of Tenant
Total Rental Income(Annual)Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 8)(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)

1
SUMMIT,INC.
Not Disclosed
Not Disclosed
100.0%
3,176.84 m2
3,176.84 m2
August2014—

August2015

August2016—

August2017—

August2018——

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
As part of the land of the Asset to be Acquired is located in a category 1 low-rise exclusive residential district with abuilding coverage ratio of 50% and the other part is located in neighborhood commercial district with a building coverage
ratio of 80% in principle. However, because the Asset to be Acquired is in a corner lot, the building coverage ratios haveincreased to 60% and 90%, respectively, and as a result, a weighted average figure based on the area ratio (79.41%) will beapplied.
Floor Area Ratio
As part of the land of the Asset to be Acquired is located in a district with a floor area ratio of 100% and the other partis located in one with a floor area ratio of 200%, a weighted average figure based on the area ratio (164.71%) will beapplied.
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 period ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 19 -

(Note 6)(Note 7)(Note 8)

Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with December 1, 2018 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” and “Security Deposits” are not disclosed because consent of the end tenant to such disclosure
has not been obtained.
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of November 30, 2018 (if the common area,etc. is leased, the said area is included).
Historical Occupancy Rates
There are no applicable occupancy rates for August 2018 and before because the building was not yet completed.

(8) GEMS Shin-Yokohama
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The property is located in a convinient location with excellent traffic access, 4-minute walk from ShinYokohama Station on the JR Tokaido Shinkansen Line and the JR Yokohama Line and 2-minute walk from
Shin-Yokohama Station on the Yokohama Subway Blue Line. As, at Shin-Yokohama Station, the Tokaido
Shinkansen arrives and departs and airport shuttle buses to the Tokyo International Airport and Narita
International Airport are operating, it has good access to each cities in Japan and to overseas. Furthermore, inthe fiscal year 2022, the Shin-Yokohama Station (tentative name) on the Sotetsu Shin-Yokohama Line and the
Tokyu Shin-Yokohama Line is scheduled to open in the area. Through the use of these lines, direct operation
between Nishiya Station on the Sotetsu Line and Hiyoshi Station on the Tokyu Toyoko Line and Meguro Line
via Shin-Yokohama Station will be realized, and it is expected that the access and convenience of the central
part of the city will be improved further.
・The property is located in the Shin-Yokohama area, where office workers flourish on weekdays because, atthe area, there are many automobile related companies and foreign-invested enterprises and on weekends
visitors flourish to attend events and concerts. Therefore, it is expected that there will be strong demand
from nearby office workers and visitors. In addition, the leased area per floor of the property ranges fromapproximately 38 tsubo to 44 tsubo, which is a fit size for restaurant operation. As such, stable demand bytenants is expected.
・The current tenant composition of the property is differentiated from that of nearby restaurant buildings inwhich most restaurants are operated by izakaya-type chain stores by attracting stores that are focused on local
Kanagawa local food and ingredients, therefore, it is expected that the property will be able to maintain its
competitiveness by maintaining the tenant composition which includes a wide range of stores with various
business structures that can respond to various needs.
・The property has excellent level of facilities such as seismic performance, and has also obtained “Two stars”
rated by the DBJ Green Building Certification System and is highly evaluated for its environmental and social
considerations.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 20 -

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)
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(Note 6)

Type of Master Leasing(Note 6)GEMS Shin-Yokohama
Real estate
2-5-17 Shin-Yokohama, Kohoku Ward, Yokohama City, Kanagawa, and other 1
lot
2-5-17 Shin-Yokohama, Kohoku Ward, Yokohama City, Kanagawa, and other 1
lot (Note 2)
4-minute walk from Shin-Yokohama Station on the JR Tokaido Shinkansen Lineand the JR Yokohama Line2-minute walk from Shin-Yokohama Station on the Yokohama Subway Blue LineMay 11, 2018
Store
Flat-roofed steel-frame, B1F/10F
Fukuda Corporation, Tokyo Office, Registered Architect’s Office
Fukuda Corporation, Tokyo Head OfficeUrban Housing Evaluation Center
352.00 m2 (Note 3)
1,777.40 m2
Ownership
Ownership
100% (Note 4)
800%
None
Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass through

6.11% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)
Environmental Assessment
DBJ Green Building Certification 2018★★
・ The property management company and master leasing company, GeoAkamatsu Co., Ltd., fall under a related party under the Investment Trust Act.
・Pursuant to a contract with Nomura Real Estate Development Co., Ltd., the use,
Notes
for no consideration, of the trademark “GEMS Shin-Yokohama” is subject tothe property management agreement and the master lease agreement with GeoAkamatsu Co., Ltd. remaining in full force and effect.
Anticipated¥1,820 million
Acquisition Price¥1,890 million (Based on the capitalization approach and as of December 1,
Appraisal Value and Method 2018)(Appraiser: DAIWA REAL ESTATE APPRAISAL CO.,LTD.)
Appraisal NOI (Note 8)¥97 million
Seismic Risk (PML) (Note 7)

Leasing Status (As of November 30, 2018) (Note 9)
Total Number of Tenants10

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 21 -

Total Rental
Income(Annual)
Security Deposits
Occupancy Rate (Note 10)
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 11)¥126 million¥95 million
100.0%
1,517.44 m2
1,517.44 m2
August2014—

August2015

August2016—

August2017——

August2018
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) The Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
(Note 3) Floor Area
Includes setback area (approximately 27.05 m2) pursuant to Shin-Yokohama north area urban development consultation
principles, etc.
(Note 4) Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is100%.
(Note 5) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 6) Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with GeoAkamatsu Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to GeoAkamatsu Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme, in which GeoAkamatsu Co., Ltd., the master lease company, pays to the Fund the same amount as the total sum of the rent based on
the lease agreements that the master lease company concludes with end tenants.
(Note 7) 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 ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
(Note 8) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with December 1, 2018 as the appraisal date.
(Note 9) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of November 30, 2018.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofNovember 30, 2018 multiplied by 12 (rounded down to the nearest million yen). The figure does not include any otherincidental 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(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of November 30, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of November 30, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of November 30, 2018 (If the common area,etc. is leased, the floor space thereof is included.).
(Note 10) Occupancy RateAs there is a tenant which vacated as of the end of December, 2018 due to the termination of the agreement, theoccupancy rate after the vacation is 93.6%.
(Note 11) Historical Occupancy Rates
There are no applicable occupancy rates for August 2017 and before because the building was not yet completed.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 22 -

(9) GEMS Namba
Strengths of the Asset to be Acquired
The main strengths of the asset to be acquired are as follows.
・The property is located in a favorable location with good access of one-minute walk from Namba Station on
the Osaka Metro Lines, two-minute walk from Osaka Namba Station on the Kintestu Railway Line and theHanshin Railway Line, two-minute walk from Namba Station on the Nankai Railway Line, and seven-minute
walk from JR Namba Station on the JR Kansai Honsen Line. In addition, it faces the Midosuji Street of
Osaka and has excellent visibility.
・The Namba area in which the property is located, has station buildings, department stores, shopping districts,
underground malls centered around the terminal station Namba Station forming a large commercial area, andstrong demand is expected from station users and tourists. In addition, the property consists of goods storeson the first and second floors, and restaurants on the third floor and above, and one floor ranges fromapproximately 42 tsubo to 47 tsubo. As the size of the property is good for restaurants to operate, stabledemand by tenants is expected.
・The current structure of tenants is differentiated from that of restaurant buildings centered on izakaya-type
chain stores located in the vicinity of the property, and it is considered that the property will be able tomaintain its competitiveness by maintaining the tenant composition which includes a wide range of storeswith various business structures that can respond to diverse needs.
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)
Architect
Builder

GEMS Namba
Real estate
3-42-20 Namba, Chuo Ward, Osaka City, Osaka
3-7-19 Namba, Chuo Ward, Osaka City, Osaka
1-minute walk from Namba Station on Osaka Metro Lines
2-minute walk from Osaka Namba Station on the Kintesu Railway Line andHanshin Railway Line
7-minute walk from JR Namba Station on the JR Kansai Honsen Line2-minute walk from Namba Station on the Nankai Railway Line
November 30, 2018
Store, Bicycle parking
S, SRC B1F/13F
Konoike Construction Co., Ltd., Osaka Head Office, Class 1 Architect Office
Konoike Construction Co., Ltd., Osaka Head Office

Building Inspection Agency

General Building Research Corporation of JapanLand
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral

256.09 m2 (Note 2)
2,421.83 m2
Ownership
Ownership
100% (Note 3)
1000%
None

Area (Note 1)

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 23 -

Property Management
Company (Note 4)
Master Leasing Company(Note 5)

Type of Master Leasing(Note 5)

Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass through

6.38% (Based on the Earthquake PML Appraisal Report (as of January, 2019) by
Sompo Risk Management Inc.)
Environmental Assessment
Under application (Note 7)
・ The property management company and master leasing company, GeoAkamatsu Co., Ltd., fall under a related party under the Investment Trust Act.
・Pursuant to a contract with Nomura Real Estate Development Co., Ltd., the use,
Notes
for no consideration, of the trademark “GEMS Namba” is subject to theproperty management agreement and the master lease agreement with GeoAkamatsu Co., Ltd. remaining in full force and effect.
Anticipated¥3,800 million
Acquisition Price¥4,260 million (Based on the capitalization approach and as of December 1,
Appraisal Value and Method 2018)(Appraiser: JLL Morii Valuation & Advisory K.K.)
Appraisal NOI (Note 8)¥167 million
Seismic Risk (PML) (Note 6)

Leasing Status (As of December 1, 2018) (Note 9)
Total Number of Tenants
Total Rental Income(annual)Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 10)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)12¥210 million¥180 million
100.0%
1,959.37 m2
1,959.37 m2
August2014—

August2015

August2016—

August2017—

August2018——

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Land Area
Includes setback area (around 14.18 m2) pursuant to the Osaka Building Aesthetic Area Guidance System.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. Because
the Asset to be Acquired is a certified fireproof building in a fire prevention zone, however, the applied coverage ratio is
100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with GeoAkamatsu Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to GeoAkamatsu Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme, in which themaster lease company, pays to the Fund the same amount as the total sum of the rent based on the lease agreements thatthe master lease company concludes with end tenants.
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 ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 24 -

(Note 7)

Environmental Assessment
As of the end of January 2019, DBJ Green Building Certification is being applied for. There is no assurance that thecertification can be obtained and the contents of the certification, if obtained, is not yet determined.
(Note 8) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with December 1, 2018 as the appraisal date.
(Note 9) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of December 1, 2018, the date on which the lease with respect to the building of the Asset to be Acquiredcommenced.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofDecember 1, 2018 multiplied by 12 (rounded down to the nearest million yen). The figure does not include any otherincidental 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(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space as of December 1, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of December 1, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of December 1, 2018 (If the common area, etc.
is leased, the floor space thereof is included.).
(Note 10) Historical Occupancy Rates
There are no applicable occupancy rates for August 2018 and before because the building was not yet completed.

(10) Landport Ome I
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・This property is located approximately 2.8 kilometers from the Ome Interchange on the Metropolitan
Inter-City Expressway and near National Route 16, so it is located in a favorable location allowing for
wide-area delivery to the entire Tokyo metropolitan area.
・This property is located in the Nishi-Tokyo Industrial Park, which is 11 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,
enabling tenants to maintain a steady flow of workers.
・This property is a three-story slope facility, in which cars can park at both berths (Note 1) on the first andsecond floors. The interior of the building is equipped with three elevators and three verticalconveyors. The building also offers improved rack storage efficiency (Note 1) by adopting an 11 m x 11 m
grid (Note 1) and a beam effective height of 6.5 m, and is environment-friendly by adopting LED lighting
in the whole building. In addition to the versatile specifications that ensure high operational efficiency,
the building is a logistics facility that pursues optimization and efficiency by adopting a category-wide
multi-function (Note 2) that adds functions specific to the target tenant’s industry needs.
(Note 1) A “berth” is a space where cargo trucks can stop for loading and unloading, a “grid” is a lattice-shaped space
formed by pillars and joists and “rack storage efficiency” refers to the storage efficiency of a rack.
(Note 2) A “category-wide multi-function” refers to a logistic facilities equipped with functions specific to the target
tenant’s identified industry needs, in addition to standard specifications.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 25 -

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)
Architect
Builder

Landport Ome I
Real estate
2-9-1, Suehiro-cho, Ome City, Tokyo
2-9-1, Suehiro-cho, Ome City, Tokyo (Note 2)
11-minute walk from Ozaku Station on the JR Ome Line
2.8 km from the Ome Interchange on the Metropolitan Inter-City Expressway
November 30, 2018
Warehouse
RC, Alloy plating copper roofing 3F
The Zenitaka Corporation, Class 1 Architect Office
The Zenitaka Corporation, Tokyo Branch

Building Inspection Agency

Japan Constructive Inspect Association

Land
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral

39,391.90 m2
57,721.34 m2
Ownership
Ownership
70% (Note 3)
200%
None
Nomura Real Estate Development Co., Ltd., Nomura Real Estate Partners Co.,

Area (Note 1)

Property Management
Company (Note 4)
Master Leasing Company
Type of Master Leasing

Ltd.

—

—
2.64% (Based on the Earthquake PML Appraisal Report (as of January, 2019) bySeismic Risk (PML) (Note 5)
Sompo Risk Management Inc.)
Environmental Assessment
Under application (Note 6)
・The property management companies, Nomura Real Estate Development Co.,
Notes
Ltd. and Nomura Real Estate Partners Co., Ltd. fall under related parties underthe Investment Trust Act.
Anticipated¥13,640 million
Acquisition Price¥14,200 million (Based on the capitalization approach as of December 1, 2018)
Appraisal Value and Method(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI (Note 7)¥628 million
Leasing Status (As of December 1, 2018) (Note8)
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)1
Not disclosed
Not disclosed
Not disclosed
100.0%
57,751.27 m2
57,751.27 m2
August2014

August2015

August2016

August2017

August2018

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 26 -

—(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)

—

—

—

—

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
The Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
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 period ofuse (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
Environmental Assessment
As of the end of January 2019, DBJ Green Building Certification is being applied for. There is no assurance that thecertification can be obtained and the contents of the certification, if obtained, is not yet determined.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with December 1, 2018 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of December 1, 2018, the date on which the lease with respect to the building of the Asset to be Acquiredcommenced.
“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 the Total Leased Floor Space as of December 1, 2018 by the Total Leasable
Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of December 1, 2018.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential facilities,
lodging facilities, etc. within the Asset to be Acquired that can be leased as of December 1, 2018 (If the common area, etc.
is leased, the floor space thereof is included).
Historical Occupancy Rates
There are no applicable occupancy rates for August 2018 and before because the building was not yet completed.

4. Profile of Seller of the Assets to be Acquired
Company Name

Nomura Real Estate Development, Co., Ltd.

Head Office

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

Representative

Seiichi Miyajima, President & CEO

Principal Business

Real Estate

Capital¥2,000 million (as of April 1, 2018)

Established

April 15, 1957

Net Assets¥161.7 billion (as of March 31, 2018)

Total Assets¥1,188.4 billion (as of March 31, 2018)

Major Shareholder
Nomura Real Estate Holdings, Inc. (100.0%) (as of March 31, 2018)(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller
Capital

Nomura Real Estate Development, Co., Ltd. holds 4.87% of the Fund’s investment
units (as of August 31, 2018). As a wholly owned subsidiary of Nomura Real Estate

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 27 -

Personal

Transactions

Related Party
StatusHoldings, Inc., which also holds 100% interests in the shares of the AssetManagement Company, Nomura Real Estate Development, Co., Ltd. is a related
party of 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. Status of Owner of the Assets to Be Acquired
Status of Owner (Note)

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 Assets to Be Acquired” above

Background/Reasons for

For development for later sale

Acquisition, etc.
Acquisition Price(Including Other RelatedExpenses)Acquisition Date
(Note)

Previous Owner and/or Trustee
—
—
—

—

—

—

—

All Assets to Be Acquired subject to the Acquisitions have the same owner.

6. Transactions with Related Parties(1) Transactions related to the acquisition of the Assets to be Acquired
The acquisition of the Assets to be Acquired are considered to fall under transactions with a related party
under the 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 of compliance, compliance manual, rules concerning transactions with related parties, and other relevantinternal rules and guidelines.
(2) The property management and master lease transactions of PMO Tamachi Higashi, PMO Hatchobori
Shinkawa, PMO Kyobashi Higashi and PMO Ochanomizu
The property management company and master lease company of PMO Tamachi Higashi, PMO Hatchobori
Shinkawa, PMO Kyobashi Higashi and PMO Ochanomizu, Nomura Real Estate Development Co., Ltd., isconsidered to fall under a related party under the Investment Trust Act as stated above. Accordingly, the feesand other terms of the consignment of property management as well as the lease period, rental rate, and other
Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 28 -

leasing terms related to PMO Tamachi Higashi, PMO Hatchobori Shinkawa, PMO Kyobashi Higashi and
PMO Ochanomizu 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.
(3) The property management and master lease transactions of GEMS Shinbashi, GEMS Kayabacho, GEMS

Shin-Yokohama and GEMS Namba
The property management company and master lease company of GEMS Shinbashi, GEMS Kayabacho,
GEMS Shin-Yokohama and GEMS Namba, Geo-Akamatsu Co., Ltd., is considered to fall under a related
party under the Investment Trust Act as stated above. Accordingly, the fees and other terms of theconsignment of property management as well as the lease period, rental rate, and other leasing terms related
to GEMS Shinbashi, GEMS Kayabacho, GEMS Shin-Yokohama and GEMS Namba have been duly
examined and authorized by the Asset Management Company’s compliance committee and investmentcommittee pursuant to its investment committee rules, rules of compliance, compliance manual, rules
concerning transactions with related parties, and other relevant internal rules and guidelines.

(4) The property management transaction of Summit Store Honamanuma
The property management company of Summit Store Honamanuma, Geo-Akamatsu Co., Ltd., is considered
to fall under a related party under the Investment Trust Act as stated above. Accordingly, the fees and otherterms of the consignment of property management related to Summit Store Honamanuma have been duly
examined and authorized by the Asset Management Company’s compliance committee and investmentcommittee pursuant to its investment committee rules, rules of compliance, compliance manual, rules
concerning transactions with related parties, and other relevant internal rules and guidelines.
(5) The property management transactions of Landport Ome I
The property management companies of Landport Ome I, 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 I have been duly examined and authorized by the Asset Management
Company’s compliance committee and investment committee pursuant to its investment committee rules,
rules of compliance, compliance manual, rules concerning transactions with related parties, and other relevantinternal rules and guidelines.
7.

BrokerThere is no brokerage involved in the acquisition of the Assets to be Acquired.

8.

Form of Payment, etc.
(1) Form of Payment
The Fund will complete settlement by a lump-sum payment on the date of acquisition by paying theagreed price for the property in full to the seller using proceeds from the issuance of new investment units
resolved at the Board of Directors meeting held today (Note), borrowings and cash on hand.
(Note ) For details, please refer to “Notice Concerning the Issuance of New Investment Units and Secondary Offering ofInvestment Units” released today.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 29 -

(2) Impact on the Financial Position of the Fund in Case of a Failure to Fulfill Our Forward Commitment
The purchase and sale agreement to be executed in connection with the acquisition of PMO Ochanomizu
is considered to be a forward commitment (Note) as stipulated in the Financial Services Agency’sComprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. The said
contract includes the provisions below.
(Note)

i.
ii.

iii.

iv.

9.

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.

Under the said contract, 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
or buyer shall be referred to as the “violating party”), the other party may cancel the contract if suchbreach is not remedied after the passage of a prescribed period following the date of the nonviolating party issuance of a notification requiring the violating party to perform its obligation or ifsuch breach is objectively and reasonably deemed impossible to remedy.
If the contract is cancelled in accordance with paragraph ii) above, the non-violating party may
require the violating party to pay a penalty charge that is equivalent to 20% of the acquisition price. A
non-violating party may not request to increase or decrease the amount of the penalty charge even ifmonetary damage it has actually suffered due to the breach is in excess of or falls short of 20% of theacquisition price.
The buyer may negotiate with the seller to change the acquisition price if the buyer has obtained an
appraisal report 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 or compensation, if the parties have failed to agree on the acquisition price by thescheduled date of acquisition.

Schedule for the Acquisitions
February 7, 2019Conclusion of purchase and sale agreements for the Assets to be Acquired
March 1, 2019

Acquisition of PMO Tamachi Higashi, PMO Hatchobori Shinkawa, PMO
Kyobashi Higashi, GEMS Shinbashi, GEMS Kayabacho, GEMS ShinYokohama, GEMS Namba and Landport Ome I (delivery of real estate) andacquisition of Summit Store Honamanuma (delivery of trust beneficial interest)

April 1, 2019

Acquisition of PMO Ochanomizu (delivery of real estate)

10. Outlook
There is no impact of the Acquisitions on operations in the fiscal period ending February 28, 2019
(September 1, 2018 to February 28, 2019) as the Acquisitions are scheduled to be completed in thefiscal period ending August 31, 2019 (March 1, 2019 to August 31, 2019). Regarding impact of theAcquisitions on operations in the fiscal period ending August 31, 2019 (March 1, 2019 to August 31,2019) and in the fiscal period ending February 29, 2020 (September 1, 2019 to February 29,2020), pleaserefer to the “Notice Concerning Forecasts of the Financial Results for the Fiscal Periods Ending August 31,
2019 and February 29, 2020” announced today.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 30 -

11. Appraisal Summary

Property NamePMO Tamachi Higashi

Appraisal Value¥11,400,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

11,400,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to508,690,000
538,398,000
29,708,000
25,136,000
28,880,000

Repair Costs

2,970,000

Management

Fees
Advertisementfor

Leasing Costs, etc.
Taxes

Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

4,053,000

Calculated as an annualized amount based onassumed tenant turnover rates.

39,945,000
316,000

Other Expenses

180,000(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Management

Calculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties andthe occupancy rate of the leased portion of theproperty.
Calculated based on costs at similar properties andthe average annual maintenance and renewal fees
given in the engineering report.

12,717,000

Insurance Premiumof Temporary Deposits, etc.

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.

114,197,000

Utilities Costs

Property

11,500,000,000

Grounds

Calculated based on taxes paid in the 2018 tax year
(depreciable asset tax is an assumed amount)
Calculated based on insurance quotes and thepremiums of similar properties.
Residents’ association membership fee recorded asother expenses.

394,493,000
4,406,000

Estimated profit based on an investment yield of
1.0%.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 31 -

(5)CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

7,280,000

391,619,000
3.4%
11,200,000,000
3.2%

Terminal Capitalization Rate
3.6%

Cost Approach Price
Ratio of Land

Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

11,400,000,000
79.8%

Ratio of Building
20.2%
The Tamachi district, where the Property is located, has a good access to the central Tokyo,
the Haneda Airport and the other major areas such as Kawasaki and Yokohama, and it has
traditionally been an area where strong demand for rentals is expected, particularly in the
Matters Noted in
manufacturing industry such as electrical equipment manufacturers. In such area, theReconciliation ofproperty has good location for office buildings because it is close to the JR Line and Toei
Indicated Value and
Subway stations.
Determination of
The Building is newly-built and designed as a high-value-added office building, offering
Appraisal Valuesuperior quality and high-standard facilities compared to the office buildings of similar size.
In view of the above factors, the appraisal value was determined.

Property NamePMO Hatchobori Shinkawa

Appraisal Value¥3,990,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

December 1, 2018
(Yen)

Item
Capitalization Approach Price
Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)(b)

Amount orPercentage
3,990,000,000
4,010,000,000

Grounds
Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.

197,630,000

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 32 -

(a) Gross
IncomeRental(b) Losses due to
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

10,860,000
12,181,000

1,291,000

Property Management
Fees
for

Leasing Costs, etc.
Taxes

1,561,000

Calculated as an annualized amount based onassumed tenant turnover rates.

137,000

Other Expenses

60,000CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price
CalculatedbytheDiscounted Cash Flow Approach
Discount Rate

1,844,000

Estimated profit based on an investment yield of
1%.

3,170,000

Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

148,475,000
3.7%
3,960,000,000
3.4％

Terminal Capitalization Rate
3.9%

Cost Approach Price

Calculated based on taxes paid in the 2018 tax year
(depreciable asset tax is an assumed amount).
Calculated based on insurance quotes and thepremiums of similar properties.
Residents’ association membership fee recorded asother expenses.

149,801,000

Deposits, etc.
(5)

Calculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties andthe occupancy rate of the leased portion of theproperty.
Calculated based on costs at similar properties andthe average annual maintenance and renewal fees
given in the engineering report.
Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

Insurance PremiumManagement of Temporary

term stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

5,341,000

13,818,000(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4)
ProfitthroughCalculated based on the expected medium- to long-

47,829,000

13,440,000

Repair Costs

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208,490,000

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

3,800,000,000

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 33 -

Ratio of Land

76.9％

Ratio of Building
23.1％
The Hatchobori and Shinkawa areas, where the property is located, are close to the
Nihonbashi and Kyobashi areas, which both are the main office areas in central Tokyo.
Therefore, steady rental demands can be expected due to expanded demands from these
Matters Noted inareas. Furthermore, as the property is located close to Hatchobori Station on the Tokyo
Reconciliation of
Metro Hibiya Line and the JR Keiyo Line, which are the nearest stations, it is more
Indicated Value andcompetitive in the areas.
Determination of
The Building is relatively new and designed as a high-value-added office building, offering
Appraisal Valuesuperior quality and high-standard facilities compared to the office buildings of similarsize.
In view of the above factors, the appraisal value was determined.

Property NamePMO Kyobashi Higashi

Appraisal Value¥3,020,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

3,020,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to

Insurance Premium

8,168,000

845,000

Fees

Taxes

157,128,000

9,600,000

Management

Leasing Costs, etc.

148,960,000

11,673,000

Repair Costs

Advertisement

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.
Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

38,059,000

Utilities Costs

Property

3,060,000,000

GroundsforCalculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties andthe occupancy rate of the leased portion of theproperty.
Calculated based on costs at similar properties andthe average annual maintenance and renewal fees
given in the engineering report.

3,724,000

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

1,182,000

Calculated as an annualized amount based onassumed tenant turnover rates.

10,945,000
90,000Calculated based on taxes paid in the 2018 tax year
(depreciable asset tax is an assumed amount).
Calculated based on insurance quotes and thepremiums of similar properties.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 34 -

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

0110,901,000
1,358,000

2,080,000

Estimated profit based on an investment yield of
1.0%.
Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

110,179,000
3.6%
2,980,000,000
3.4%

Terminal Capitalization Rate
3.8%

Cost Approach Price
Ratio of LandNo particular expenses to be recorded as otherexpenses.

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

2,900,000,000
77.4%

Ratio of Building
22.6%
The Hatchobori area, where the property is located, is close to the Nihonbashi andKyobashi areas, which are the main office areas in central Tokyo. Therefore, steady rental
Matters Noted indemands can be expected due to expanded demands from these areas. Furthermore, as theReconciliation ofproperty is located close to Hatchobori Station on the Tokyo Metro Hibiya Line and the JR
Indicated Value andKeiyo Line, which are the nearest stations, it is more competitive in the areas.
Determination of
The Building is newly-built and designed as a high-value-added office building, offering
Appraisal Valuesuperior quality and high-standard facilities compared to the office buildings of similar size.
In view of the above factors, the appraisal value was determined.
Property NamePMO Ochanomizu

Appraisal Value¥4,080,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

December 1, 2018
(Yen)

Item
Capitalization Approach Price

Amount orPercentage

Grounds

4,080,000,000

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 35 -

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to10,940,000

1,153,000

Managementfor

Leasing Costs, etc.
Taxes

Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
Expenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

Calculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties andthe occupancy rate of the leased portion of theproperty.
Calculated based on costs at similar properties andthe average annual maintenance and renewal fees
given in the engineering report.

4,729,000

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

1,508,000

Calculated as an annualized amount based onassumed tenant turnover rates.

11,775,000

Insurance Premium

Capital200,089,000

10,400,000

Fees

(5)

189,149,000

13,125,000

Repair Costs

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Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.

42,811,000

Utilities Costs

Property

4,150,000,000

121,0000

Calculated based on taxes paid in the 2018 tax year
(depreciable asset tax is an assumed amount).
Calculated based on insurance quotes and thepremiums of similar properties.
No particular expenses to be recorded as otherexpenses.

146,338,000
1,746,000

2,830,000

Estimated profit based on an investment yield of
1.0%.
Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

145,254,000
3.5%
4,010,000,000
3.3%Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 36 -

Terminal Capitalization Rate
3.7%

Cost Approach Price
Ratio of Land

Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

4,050,000,000
77.5%

Ratio of Building
22.5%
The Ochanomizu district, where the property is located, has good access to each office area
in central Tokyo. It is close to the Shin-Ochanomizu Station on the Tokyo Metro Chiyoda
Line, which are the nearest stations, and it is also accessible via several other lines, including
Matters Noted in
the JR line. Furthermore, this district has recently developed as business district, following
Reconciliation of
the completion of the large-scale buildings such as “Ochanomizu Solacity” andIndicated Value and“WATERRAS Tower,” and this district is located in Chiyoda Ward. Therefore, there is
Determination ofstrong tenant demand and this district meets the requirements for excellent office area.
Appraisal Value
The Building is newly-built and designed as a high-value-added office building, offeringsuperior quality and high-standard facilities compared to the office buildings of similar size.
In view of the above factors, the appraisal value was determined.

Property NameGEMS Shinbashi

Appraisal Value¥2,870,000,000

Appraiser

DAIWA REAL ESTATE APPRAISAL CO., LTD.

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

2,870,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to

Utilities Costs
Repair Costs
Property
Fees

Management

2,930,000,000

Grounds
Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.

164,648,430
168,572,832
3,924,402

Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm occupancy rate.

55,753,783
9,161,400
22,813,800
563,640
4,209,885

Examined based on the costs at similar buildings andcalculated based on scheduled maintenance andmanagement costs.
Calculated based on costs at similar properties andthe occupancy rate of the leased portion of theProperty.
Calculated based on costs at similar properties andthe building replacement values.
Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 37 -

Advertisementfor

Leasing Costs, etc.
Taxes

11,850,500

Insurance Premium

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)

Capital1,152,746

Expenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

89,2605,912,552

Calculated based on taxes paid in the 2018 tax year.
Examined based on the premiums of similar
properties and calculated based on insurance quotes
obtained by the clients.
Examined based on the other expenses of similar
properties and calculated on the sales promotion
costs and various costs.

108,894,647
1,068,038

1,409,100

Estimated profit based on an investment yield of
1.0%.
Calculated based on the building replacement values
in consideration of capital expenditure reserve ofsimilar properties and recorded in consideration of
CM fee.

108,553,585
3.7%Calculated based on a comprehensive considerationof conditions of location, building and contract

2,850,000,000
3.5%

Terminal Capitalization Rate
3.9%

Cost Approach Price
Ratio of Land

Calculated as an annualized amount based onassumed tenant turnover rates.

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the Property as aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

2,610,000,000
80.1%

Ratio of Building
19.9%
The property is a restaurant building located near Uchisaiwai-cho Station on the Toei Mita
Subway Line and JR Shinbashi Station. Since the area of the office extends to thesurrounding area, the property is located in an area where there is strong demand by office
Matters Noted inworkers for food and drink. In addition, since the property is occupied by tenants with a
Reconciliation ofwide variety, demand from a wide range of customers is expected, and it is expected that the
Indicated Value andproperty will continue to operate stably in the future. Typical users of the property are
Determination of
mainly investors who intend to acquire the property for the purpose of earning profits. In
Appraisal Valueconsideration of the above, the appraisal value was determined with an emphasis on thevalue indicated by income capitalization, which appropriately reflects the profit value ofinvestment.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 38 -

Property NameGEMS KayabachoAppraisal Value¥2,720,000,000

Appraiser

DAIWA REAL ESTATE APPRAISAL CO., LTD.

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

2,720,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

toManagement
for

Taxes

Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm occupancy rate.

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
Expenditure

Examined based on the costs at similar buildings andcalculated based on scheduled maintenance andmanagement costs.
Calculated based on the actual costs in the past fiscal
years and the occupancy rate of the leased portion of
the Property.
Calculated based on costs at similar properties andthe building replacement values.

4,168,952

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

1,141,377

Calculated as an annualized amount based onassumed tenant turnover rates.

7,044,700

Insurance Premium

Reserve

4,015,090

600,000

Leasing Costs, etc.

Capital172,042,132

27,139,800

Fees

(5)

168,027,042

9,106,800

Repair Costs

Advertisement

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.

55,110,723

Utilities Costs

Property

2,750,000,000

Grounds

94,9005,814,194

Calculated based on taxes paid in the 2018 tax year.
Examined based on the premiums of similar
properties and calculated based on insurance quotes
obtained by the clients.
Examined based on the other expenses of similar
properties and calculated on the sales promotion
costs and consumables costs.

112,916,319
1,141,376

1,460,000

Estimated profit based on an investment yield of
1.0%
Calculated based on the building replacement values
in consideration of capital expenditure reserve ofsimilar properties and recorded in consideration of
CM fee.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 39 -

(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

112,597,695
4.1%
2,700,000,000
3. 9%

Terminal Capitalization Rate
4.3%

Cost Approach Price
Ratio of Land

Calculated based on a comprehensive considerationof conditions of location, building and contract
Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
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 aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

1,910,000,000
71.1%

Ratio of Building
29.0%
The property is a restaurant building located near Kayaba-cho Station on the Tokyo Metro
Tozai Line and Hibiya Line. Kayaba-cho is an office area where finance related companies
mainly gather as well as residential area extending to the surrounding area, and the property
Matters Noted in
is located in an area where there is strong demand by office workers for food and drink. In
Reconciliation of
addition, since the property is occupied by tenants with a wide variety, demand from a wide
Indicated Value andrange of customers is expected, and it is expected that the property will continue to operate
Determination of
stably in the future. Typical users of the property are mainly investors who intend to
Appraisal Valueacquire the property for the purpose of earning profits. In consideration of the above, theappraisal value was determined with an emphasis on the value indicated by income
capitalization, which appropriately reflects the profit value of investment.

Property Name

Summit Store Honamanuma

Appraisal Value¥2,880,000,000

Appraiser

JLL Morii Valuation & Advisory K.K.

Appraisal Date

December 1, 2018
(Yen)

Item

Capitalization Approach Price
Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)
(a)
Gross
RentalIncome(b) Losses due to
Vacancies, etc.

Amount orPercentage
2,880,000,000

2,920,000,000

Grounds
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 the expected level of stable
net revenue over the medium to long term by thecapitalization rate

Undisclosed
Undisclosed
Undisclosed(Note)

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 40 -

(2) Operating Expenses
Maintenance Costs

Undisclosed
Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management
Fees
Advertisementfor

Leasing Costs, etc.

Undisclosed
Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4)
Profitthrough

Undisclosed

Management of Temporary

Undisclosed

130,323,000

Deposits, etc.
(5)

Capital(Note)
Expenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach

Undisclosed
131,451,000

4.5%

4.3%

Terminal Capitalization Rate
4.7%

Ratio of Land

Calculated based in part on the past capitalization
rate of the property and of J-REITs judged to beadequately representative, with reference to revenues
based on the discount rate and the risk of capitalfluctuations.

2,830,000,000

Discount Rate

Cost Approach Price(Note)

Calculated based on a comprehensive considerationof such factors as investor surveys, REIT
performance and real estate market conditions, withyields on suburban large shopping center
metropolitan area of Tokyo as the base yield, taking
into account interest rates on long-term sovereign
bonds. Consideration was given to risks related to thearea and specific property in light of such factors as
the conditions of the Property’s location, building,contract and rights-related issues.
Calculated based on the capitalization rate, withconsideration given to uncertainty regarding initial
predictions of changes in net cash flow, futurebuilding deterioration and sale-related risk.

1,930,000,00082.7%

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 41 -

Ratio of Building
17.3%
Neighboring areas are located along Waseda Street, which has a large traffic volume. In
the background of the neighboring area, detached houses and apartment houses expand,making it highly convenient for residents outside the walking area using vehicles as a meansof transportation and for neighboring residents to use as stores for everyday use. In the
Matters
Notedinvicinity of the property, most of the supermarkets are small-sized, targeting neighborhood
Reconciliationof residents and railway users. Since there are no medium-sized supermarkets equipped withparking lots such as the property, there is a superiority in location and store structure. In
Indicated Value andaddition, as a result of examining tenant attributes, etc., there will be low possibility of
Determinationof vacation by the tenant. In addition, judging from the information disclosed with respect
to the tenant and the materials presented by the client, and it is concluded that there is no
Appraisal Value
serious concern about the performance of the company who is the tenant, and there is no
particular problem with the tenant credit.
Based on the above, it was judged that the property has standard competitiveness in the
primary market area.
(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.

Property NameGEMS Shin-Yokohama

Appraisal Value¥1,890,000,000

Appraiser

DAIWA REAL ESTATE APPRAISAL CO., LTD.

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

1,890,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to158,808,280
3,705,765

27,537,000
697,440

Management

Fees
Leasing Costs, etc.

155,102,515

9,151,200

Repair Costs

Advertisement

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable
net revenue over the medium to long term by thecapitalization rate.
Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm occupancy rate.

57,373,028

Utilities Costs

Property

1,900,000,000

Groundsfor

Examined based on the costs at similar buildings andcalculated based on scheduled maintenance andmanagement costs.
Calculated based on the actual costs in the past fiscal
years and the occupancy rate of the leased portion of
the Property.
Calculated based on the repair costs at similar
properties and the building replacement values.

3,758,591

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

1,027,387

Calculated as an annualized amount based onassumed tenant turnover rates.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 42 -

Taxes7,556,700

Insurance Premium

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

103,230
7,541,480
97,729,487
821,909
1,743,600

Estimated profit based on an investment yield of
1.0%
Calculated based on the capital expenditure reserveof similar properties in consideration of CM fee
based on the building replacement values.

96,807,796
5.1%

Calculated based on a comprehensive considerationof conditions of location, building and contract

1,890,000,000
4.9%

Terminal Capitalization Rate
5.3%

Cost Approach Price
Ratio of Land

Calculated based on taxes paid in the 2018 tax year.
Examined based on the premiums of similar
properties and calculated based on insurance quotes
obtained by the clients.
Examined based on the other expenses of similar
properties and calculated on the sales promotion
costs and consumables costs.

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
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 aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

1,440,000,000
55.2%

Ratio of Building
44.8%
The property is a restaurant building located near Shin-Yokohama Station on JR Tokaido
Shinkansen, JR Yokohama Line and Yokohama Subway Blue Line. Since the area of theoffice extends to the surrounding area, the property is located in an area where there is
Matters Noted instrong demand for food and drink by office workers and the audiences of the surrounding
Reconciliation of
event halls. In addition, since the property is occupied by tenants with a wide variety,Indicated Value anddemand from a wide range of customers is expected, and it is expected that the property
Determination ofwill continue to operate stably in the future. Typical users of the property are mainly
Appraisal Value
investors who intend to acquire the Property for the purpose of earning profits. In
consideration of the above, the appraisal value was determined with an emphasis on thevalue indicated by income capitalization, which appropriately reflects the profit value ofinvestment.

Property NameGEMS Namba

Appraisal Value¥4,260,000,000

Appraiser

JLL Morii Valuation & Advisory K.K.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 43 -

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item

Capitalization Approach Price

4,260,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)
(a)
Gross
RentalIncome4,330,000,000

to5,133,000(2) Operating Expenses
Maintenance Costs

65,420,000

Utilities Costs

23,471,000

11,449,000

Repair Costs
419,000
Property Management
Fees
Advertisement
Leasing Costs, etc.

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 the expected level of stable
net revenue over the medium to long term by thecapitalization rate

233,363,000

238,496,000(b) Losses due
Vacancies, etc.

Grounds

4,935,000

for
2,756,000

Taxes
15,845,000
Insurance Premium
131,000

Calculated the medium- to long-term stable rent
based on the rent under the current agreement andthe rent if the Property is newly leased and recorded
the rent revenue.
Calculated the utilities cost revenues and the parking
lot revenues based on such revenues of similar
properties.
The expected medium- to long-term stable vacancy
rate was calculated and recorded based on typicalrates and demand balance and the particularcharacteristics of the Property. Since the credit losses
are secured by the deposits, etc., it will not berecorded.
Calculated based on the scheduled agreement andmedium- to long-term maintenance fee withreference to that of similar properties.
Calculated with reference to the actual costs ofsimilar properties.
The estimates of the Engineering Report were judged
to be reasonable based in part on the levels of similar
properties, and 30% of the standard value for suchproperties was also recorded.
Calculated the fee rate based on the scheduled
agreement, with reference to rates for similar
properties.
Calculated the eviction rate in consideration of thevacancy rate and calculated and recorded theadvertisement for leasing etc., arising at the change ofthe rent room based on the scheduled agreement andlocal practices.
Calculated taking into account movement in land
prices for the land and appraised tax amount and age
depreciation for the building and depreciable assets
with reference to actual amount equivalent.
Calculated based on the estimates provided by
Nomura Master Fund which is judged to bereasonable with reference to the levels of similar
properties.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 44 -

Other Expenses

6,414,000(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))

167,943,000(4)Profitthrough

Management of Temporary

1,770,000

Deposits, etc.

(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach

978,000

Profit through management of temporary deposit iscalculated by multiplying the assumed interest ratewith comprehensive consideration given to interest
rates, etc., of long-term government bonds, etc., by
the security deposits, etc., after deducting the amountequivalent to security deposits, etc. of vacant rooms
from the amount of security deposits, etc. upon fulloccupancy.
The estimates of the Engineering Report were judged
to be reasonable based in part on the levels of similar
properties, and 70% of the standard value for suchproperties was recorded.

168,735,000

3.9%Calculated based in part on the past capitalization
rate of the Property and of J-REITs judged to beadequately representative, with reference to revenues
based on the discount rate and the risk of capitalfluctuations.

4,180,000,000

Discount Rate

3.7%

Terminal Capitalization Rate
4.1%
Cost Approach Price

Calculated based on the contracts provided by
Nomura Master Fund which is judged to bereasonable with reference to the levels of similar
properties.

Calculated based on a comprehensive considerationof such factors as investor surveys, REIT
performance and real estate market conditions, withyields on boutiques in Ginza area of Tokyo as thebase yield, taking into account interest rates on longterm sovereign bonds. Consideration was given torisks related to the area and specific property in lightof such factors as the conditions of the Property’s
location, building, contract and rights-related issues.
Calculated based on the capitalization rate, withconsideration given to uncertainty regarding initial
predictions of changes in net cash flow, futurebuilding deterioration and sale-related risk.

3,500,000,000

Ratio of Land

76.6%

Ratio of Building

23.4%

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 45 -

Matters

Noted

in

ReconciliationofIndicated

and

Value

DeterminationofAppraisal Value

The property is located in the Namba Shinsaibashi area, which is recognized as acommercial area representing Osaka. This is a retail building with Osaka Metro Namba
Station as the closest station and the main restaurant building adjacent to the above-groundstairs of the station. Namba Station has multiple routes such as Kintetsu, and Nankai
Namba Station is also known as the gateway to Kansai Airport, and is located in an areawith a convenience and ability to attract customers. 11 varied restaurants and 1 retail
outlet are located and it is expected to attract business customers, general shoppers andtourists. This is the first GEMS brand in the Kansai region, and it is considered that
there are no problems with the planning and operation system due to the appropriate
placement of tenants according to consumer trends in the GEMS series, which has alreadybeen in operation in Tokyo. A city hotel is scheduled to open in the autumn of 2019 in
the former Kabuki-za site on the opposite side of Midosuji. After such opening, it isconsidered to have a positive impact on the flow of people in neighboring areas, including
neighboring areas. Based on the above, it was judged that the property has standard
competitiveness in the primary market area.

Property Name

Landport Ome I

Appraisal Value¥14,200,000,000

Appraiser

Japan Valuers Co., ltd.

Appraisal Date

December 1, 2018
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

14,200,000,000

Price Calculated by the Direct
Capitalization Approach
13,900,000,000(1) Operating Income (a)-(b)
(a)
Gross
RentalIncome(b) Losses due to
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management
Fees
Advertisement
Leasing Costs, etc.

for

Grounds
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

Undisclosed
Undisclosed
Undisclosed
Undisclosed(Note)

Undisclosed
Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 46 -

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4)
Profitthrough

Undisclosed

Management of Temporary

Undisclosed

628,491,623

Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

Undisclosed
625,390,539

4.5%

4.3%

4.7%

Ratio of Land

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.

14,500,000,000

Terminal Capitalization Rate

Cost Approach Price(Note)

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the property’s specific characteristics.
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 aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

16,200,000,000
64.3%

Ratio of Building
35.7%
Landport Ome I 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 a major highway andMatters
Notedineasy access from the Ome IC on the Metropolitan Inter-City Expressway, the property has
Reconciliationof convenient access, and is well-situated as a logistic property. The property is newly built
logistic facility at such location with high versatility and operational efficiency. Landport
Indicated Value andOme I is a multi-category logistics facility, which is equipped with versatile specifications to
Determinationof meet the specific needs of various industries. The property is expected to provide stable
rent over the medium to long term. In view of the above factors, the appraisal value was
Appraisal Value
determined, attaching importance to reflecting the investment profitability value of theProperty.
(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.

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 47 -

Exhibits
Exhibit 1 Overview of the Portfolio after the Acquisitions
Exhibit 2 Photos and Maps of the Assets to be Acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/

Note: This press release is a public announcement concerning the Fund’s acquisition of properties and has not been prepared for the
purpose of solicitation of investment and has not been prepared for an inducement or invitation for investment. This press releaseshould not be construed as an offer or solicitation of an offer to purchase any investment units or other investment of the Fund.
Prospective investors are advised to make any investment decisions at their own risk and responsibility.

- 48 -

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

Greater Tokyo
Area (Note 1)

Sector(Anticipated) Total
Other Areas

Acquisition Price

Investment Ratio(Note 2)(by Sector)

Office384,095

71,930456,025

45.2

Retail109,81166,716

176,527

17.5

Logistics

171,230

3,460

174,690

17.3

Residential

159,574

33,328

192,902

19.1

Hotels

-

3,600

3,600

0.4

Others

4,900

-

4,900

0.5

(Anticipated)
Total Acquisition Price(by Area)

829,610179,034

1,008,644

100.0

Investment Ratio (Note 2)

82.3

17.7

100.0

(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 eacharea 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%.
(Note 3) The figures are based on the assumption that the dispositions of Prime Urban Esaka I, Prime Urban Esaka II, Prime
Urban Esaka III, Prime Urban Tamatsukuri and Prime Urban Chikusa announced in the press release “NoticeConcerning Property Disposition” dated January 15, 2019 has been completed.

Exhibit 2
Photos and Access Map of the Assets to be Acquired
PMO Tamachi Higashi

PMO Hatchobori Shinkawa

PMO Kyobashi Higashi

PMO Ochanomizu

GEMS Shinbashi

GEMS KayabachoSummit Store Honamanuma

GEMS Shin-Yokohama

GEMS Namba

Landport Ome I