[For Translation Purposes Only]
March 29 2016

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Satoshi Yanagita, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Motomi Uki
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Property Acquisition and Disposition
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced thedecision made today by Nomura Real Estate Asset management Co., Ltd., a licensed investment trust
management company retained by the Fund to provide asset management services, that it will acquireand dispose assets (the “Acquisition” and the “Disposition,” respectively; the Acquisition and the
Disposition collectively referred to as the “Transaction”), as described below.

1. Summary of Assets to be Acquired/Disposed
1) Summary of Assets to be Acquired
N
o
1
2
3

Property name
Hirakata Kuzuha
Logistics Center（Note4）PRIME URBAN
Meguro Mita
（Note5）PRIME URBAN
Chikusa （Note6）

Use

Date ofagreement

Logistics

March 30,
2016

(Scheduled)
Acquisition priceDate of
Seller(¥million)(Note1)
acquisition
April 27, Godo Kaisha Osaka
3,460
2016
Hirakata Project

Residential

March 31,2016

April 25,
2016

Undisclosed

1,058

Residential

March 30,
2016

April 5,
2016

Undisclosed

1,110

Total

5,628

(Note 1) The amount excluding acquisition related costs, property tax, city planning tax, consumption tax and local consumption tax isstated.
(Note 2) Of the assets to be acquired, Hirakata Kuzuha Logistics Center is for its beneficial interest in real estate trust, PRIME URBAN
Meguro Mita and PRIME URBAN Chiksa are real estate.
(Note 3) Above three properties are scheduled to acquire using cash on hand including transfer payment of the properties schedule tobe disposed.
(Note 4) Although the current property name is “Hirakata Logistics Center,” the Fund plans to change the name to the one stated aboveat the earliest opportunity, after the acquisition.
(Note 5) Although the current property name is “Sunny Hill Meguro Mita,” the Fund plans to change the name to the one stated above1

at the earliest opportunity, after the acquisition.
(Note 6) Although the current property name is “Roijent Aoi,” the Fund plans to change the name to the one stated above at the earliest
opportunity, after the acquisition.
(Note 7) Undiscoled, since concent have not obetained from the seller.

The above three properties will be collectively referred to as the “Three Properties,” hereinafter.
2) Summary of Assets to be Disposed
No

Property nameUse

1

Central Shintomicho
Building

Office2

Toho Edogawabashi
Building

Office3

Toshin Meguro Building

4

PRIME URBAN Ochiai

5

PRIME URBAN
Nakano6

PRIME URBAN Ekoda

7

PRIME URBAN
UrayasuⅡ

8

PRIME URBAN
Yamahana

Date ofagreement(Scheduled)
Date ofdisposition

Transferee

Book Value
Transfer Price
Difference（¥million）（¥million）（¥million）(Note 1)
1,330
1,140

OfficeResidential
March 30,
2016
Residential
Residential
Residential
Residential

858

April 12,2016

Undisclosed Undisclosed(Note2)(Note3)338
489

Undisclosed(Note3)

409
227
273

Total

5,350

5,064

286

(Note 1) Book Value as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16, 2015. The
figures indicated are unaudited figures.
(Note 2) As the Fund has not obtained an agreement with the Buyer, this information is not disclosed.
(Note 3) This assignment is an assignment to a single assignee under a single purchase agreement. The purchase price of each property
is not disclosed as the assignee’s consent to the disclosure thereof has not been obtained. In addition to the foregoing, thedifference between the purchase price and the book value of each property is also not disclosed.
(Note 4) Of the assets to be disposed, Central Shintomicho Building and Toshin Meguro Building is for its beneficial interest in realestate trust, others are real estate.

The above eight properties will be collectively referred to as the “Eight Properties.”
2. Reason for the Acquisition and the Disposition of Properties
Nomura Master Fund” formulated the “Medium to Long Term Management Strategy” inNovember 2015 in order to realize stable management over the medium to long term through thesound growth of the portfolio size and the establishment of the fund brand. One of the main
strategies of the Medium to Long Term Management Strategy is to conduct the Strategic Property
Replacement (SPR) for the purpose of qualitatively improving the portfolio, taking advantage of thebenefits arising from the fact that Nomura Master Fund became one of the largest diversified type
REITs within Japan.
Nomura Master Fund has determined, at this time, to acquire three (3) properties and assign eight(8) properties as the first step of the SPR. This transaction is a crossover deal that crosses oversectors, taking advantage of the strengths of a diversified type REIT and aims to qualitatively improve
the portfolio through selling small-scale properties with older buildings and acquiring properties withnewer buildings.
Nomura Master Fund will conduct the SPR on an ongoing basis in the future and aims to establish
a sustainable portfolio with stable high-quality performance, which is realized through the property
replacement cycle.
2

3. Property Summary
1) Property Summary of Assets to be Acquired①

Hirakata Kuzuha Logistics Center(a) Location
・Hirakata City, where the Property stands, is located between Osaka City and Kyoto
City and thus has the two largest markets in the Kansai area within its reach. The
Property is located close to National Route 1 and 4.3km from Hirakata-Higashi IC
of Daini Keihan Road, enjoying access to a broad area and high convenience.
・The Property is located in an industrial park in an exclusive industrial area, andthere is little concern for issues such as noise pollution and mechanical vibrations
due to the location’s long history of being a place where industrial facilities such as
factories and logistics warehouses, etc. have been concentrated, allowing for 24hour operations. In addition, it is a location appropriate for logistics facility
management as it can expect to secure sufficient employment as residential districts
spread outside the industrial area.
(b) Property features
・The Property allows for an efficient loading/unloading, transfer of cargo within thefacility and storage due to the two-story structure (three-story when including theoffice, etc.) of storage area and the installment of vertical conveyance equipment (2elevators and 3 vertical conveyor machines), in addition to its high-functioning
logistics warehouse specifications such as 7.0-7.5m effective height under a lower
beam, 1.5t/m2 floor load and 1.0m raised floor.
・ The Property has a facility specification that takes the employees’ working
environment into consideration such as onsite parking space, office space, dining
room and changing room, etc.
Property Name
Type of Asset
Trustee
Trust term
Registry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)

Hirakata Kuzuha Logistics Center

Trust beneficial interest
Mizuho Trust & Banking Co., Ltd.
From March 31, 2015 to April 26, 2026
1-7 Shodai-Tachika, Hirakata City, Osaka
1-7 Shodai-Tachika, Hirakata City, Osaka
4.3km from Hirakata-Higashi IC and on the Daini Keihan Road
April 2003
Storage, office
S 3F

Seismic Risk (PML) (Note 2)

4.72%(Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake PML Appraisal
Report as of February, 2016)

Architect
Structural Strength Calculator
Constructor
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio

Daiken Sekkei, Inc.
Daiken Sekkei, Inc.
Kajima Corporation, Kansai Branch
K.K. Japan Kakunin Kensa Center
14,315.70 m2
19,628.03 m2
Ownership
Ownership
70% (Note 3)3Floor Area Ratio
Collateral
Property Management
Company (Note 4)

200％
None
Nomura Real Estate Development Co., Ltd., Nomura Real Estate Partners Co., Ltd.
・The property management company, Nomura Real Estate Development Co.,
Ltd., Nomura Real Estate Partners Co., Ltd. are considered Related Party under

the Law Concerning Investment Trust and Investment Corporation(“Investment Trust Law”).
Notes

Scheduled Acquisition PriceAppraisal Value and Method
Appraisal NOI (Note 5)

・From the amendment agreement of the lease agreement between Trustee and thetenant, notice to and agreement by the tenant is needed when transferring theProperty or the Trust beneficiary Interest, or having a collateral on the Asset(However, if the tenant does not appeals the reasonal grounds not agreeing thesaid transfer or the collateral, it is able to have the transfer or the collateral).
・However, after Nomura Master Fund acquired Trust Beneficiaty Interest, tenant
agreement will be needed when the Fund transfers the Trust Beneficiaty Interest to
the third party, and transfers the Property after cancelling the trust agreement thenreceiving the Property and transfers to the third party.
¥3,460 million¥3,690 million (Based on the capitalization approach as of February 29, 2016)(Appraiser: Daiwa Real Estate Appraisal Corporation)¥187 million

Leasing Status（As of March 29, 2016）(Note6)
1
Total Number of Tenants
Tenant Name
Itochu Logistics Corp.
Total Rental Income
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0％
Total Leased Floor Space
19,807.18 ㎡
Total Leasable Floor Space
19,807.18 ㎡
February
February
Occupancy Rates in the
2012
2013
Past(Note 7)
100.0%
100.0%

February2014

100.0%

February2015

100.0%

February2016
100.0%(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) PML shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to thereplacement cost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211%
annual chance (10% probability of once every 50 years, i.e., average life time of buildings) of major earthquake
occurring.
(Note 3) The Property is located in an exclusive industrial district where the building coverage ratio is 60% in principle. As thebuilding is on a corner lot, however, an increased ratio of 70% applies.
(Note 4) Property Management Company
Refers to the Property Management Company that is scheduled to be appointed. Same for 3 properties to be acquired(Note 5) Appraisal NOI“Appraisal NOI” indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal
report with February 29, 2016 as the appraisal date.
(Note 6) Leasing Status“Total Rental Income” and “Security Deposits” are undisclosed, as consent has not been obtained from the tenant.
(Note 7) Occupancy Rates in the Past
Based on the information from the seller.

②PRIME URBAN Meguro Mita(a) Location
・Since a total of 5 lines area are available at Ebisu Station and Meguro Station
allowing easy access to major areas (2 minutes to Shibuya Station, 6 minutes to
Roppongi Station, 16 minutes to Otemachi Station and 11 minutes to Tameike-Sanno
Station), the property has a strong appeal to tenants who seek transport convenience.
・Living convenience is also excellent as the concentrated commercial districts
centering on large facilities such as Yebisu Garden Place and atré Meguro are dotted in4the surrounding area.
(b) Property features
・As the property encapsulates many residential plans having a total of 8 types ofrooms from 1Rs to maisonette-type 2LDKs, it is able to meet the needs of tenants ofvarious lifestyles.
・Because of the above, the fund expects steady demand mainly from single adults
and DINKs who commute to central Tokyo.

Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date(Note 1)
Use(Note 1)
Structure(Note 1)
Leasable Units
Seismic Risk (PML)(Note 2)
Architect
Structural Strength Calculator
Constructor
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）
Notes
Acquisition PriceAppraisal Value and Method
Appraisal NOI（Note 6）

PRIME URBAN Meguro Mita
Real Estate2-178-1 Mita, Meguro Ward, Tokyo, Others
2-7-9 Mita, Meguro Ward, Tokyo
10-minute walk from Meguro Station on The JR Yamanote Line.
10-minute walk from Meguro Station on The Tokyo Metro Nanboku Line.
10-minute walk from Meguro Station on The Toei Subway Mita Line.
10-minute walk from Meguro Station on The Tokyu Meguro Line.
10-minute walk from Ebisu Station on The JR Yamanote Line.
12-minute walk from Ebisu Station on The Tokyo Metro Hibiya Line.
July 29,2008
Apartment
RC, B1/4F
28 units
8.06%（Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake PMLAppraisal Report as of March 2016）
ZERO-ONE OFFICE Architect Co., Ltd.
Kozo Live Co., Ltd.
SHINNIHON CORPORATIONThe Building Center Of Japan
515.34 ㎡
1,101.06 ㎡
Ownership
Ownership60%
160%（Note 3）
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass throughThe property management and master leasing company, Nomura Real Estate
Partners Co., Ltd., is considered a Related Party under the Law Concerning
Investment Trust and Investment Corporation (“Investment Trust Law”).
¥1,058 million¥1,080 million（ Based on the capitalization approach as of February 29, 2016）（Appraiser: Japan Valuers Co., Ltd.）¥47million

Leasing Status (As of March 29, 2016) （Note 7）
Total Number of Tenants
1
Total Rental Income¥50million
Security Deposits¥5million
Occupancy Rate
91.7%
Total Leased Floor Space
1,014.96 ㎡

5

Total Leasable Floor Space

1,106.71 ㎡

Occupancy Rates in the Past
（Note 8）February2012

February2013

February2014

February2015

February
2016

-%
-%
-%
-%
89.4%
(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) PML shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to thereplacement cost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211%
annual chance (10% probability of once every 50 years, i.e., average life time of buildings) of major earthquake
occurring.
(Note 3) Floor Area Ratio
The Property’s Floor Area Ratio limit was originally set at 300%, but the frontal road regulation (4.0 meters×40%) isprioritized.
(Note 4) Property Management Company
Refers to the Property Management Company that is scheduled to be appointed.
(Note 5) Leasing Status
The Fund, simultaneously with the acquisition of the Property, a master lease agreement, under which the building of
the Property will be collectively leased for the purpose of subleasing, with Nomura Real Estate Development Co., Ltd.
The master lease agreement is “pass-through scheme” where Nomura Real Estate Development Co., Ltd., the master
lease company, pays the same amount as the total sum of the rent based on the lease agreement which the master lease
company has concluded with each end tenant to the Fund. The items in the above chart are indicated based on thefollowing assumptions.
“Total Number of Tenants” is the total number of master lease tenants as of today.
(Note 6) Appraisal NOI“Appraisal NOI” indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal
report with February 29, 2016 as the appraisal date.
(Note 7) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.
(Note 8) Occupancy Rates in the Past
Regarding the occupancy rates before the end of February 2015, the figures are not stated, as the information has notbeen received from the seller.

③PRIME URBAN Chikusa(a) Location
・The property is a one-minute walk from Kurumamichi Station on the Municipal
Subway Sakura-dori Subway Line and a four-minute walk from Chikusa Station on the
Municipal Subway Higashiyama Line. It stands in a location where major businessareas (Nagoya Station and Fushimi Station), the district concentrated with public
offices (Marunouchi Station) and major commercial district (Sakae Station) areaccessible within 10 minutes of direct ride using three lines available at the
aforementioned two stations.
・In addition, living convenience in the surrounding area is excellent as convenientfacilities such as a supermarket, convenience store, dry cleaner are located all within 5minute walk.
(b) Property features
・The units consist of four variations of 1K units. Also, due to the design of theentrance and rooms and quality internal features, it adequately fulfills the living
requirements of tenants in the area.
・Because of the above, the Fund expects steady demand mainly from single adults
who commute to major business areas along the Municipal Subway Sakuradori/Higashiyama Subway Lines and JR Chuo Main line.

6

Property Name
Type of Asset
Location(Note 1)

Registry
StreetAccessCompletion Date(Note 1)
Use(Note 1)
Structure(Note 1)
Leasable Units
Seismic Risk (PML)(Note 2)
Architect
Structural Strength Calculator
Constructor
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）
Notes

PRIME URBAN Chikusa
Real Estate
905, 906 Aoi, Higashi Ward, Nagoya City, Aichi
3-9-8, Aoi, Higashi Ward, Nagoya City, Aichi
1-minute walk from Kurumamichi Station on The Nagoya City Subway
Sakurado-ri Line.
5-minutes walk from Chikusa Station on The Nagoya City Subway
Higashiyama Line.

August 12, 2008
Apartment, retailRC, 13F

61 units
6.66%（Sompo Japan Nipponkoa Risk Management Inc.’s Earthquake
PML Appraisal Report as of February 2016）
Daiwa House Industry Co., Ltd.
FURUI STRUCTURAL DESIGN OFFICE
Daiwa House Industry Co., Ltd.
JAPAN ERI CO.,LTD.
400.53 ㎡
2,393.47 ㎡

Ownership
Ownership
100%（Note 3）
600%
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
Pass throughNone

Acquisition Price¥1,110 million¥1,130 million (Based on the capitalization approach as of February 29,
2016）
Appraisal Value and Method(Appraiser: Japan Valuers Co., Ltd.）
Appraisal NOI¥56million
Leasing Status (As of March 29, 2016) （Note 6）
Total Number of Tenants
1
Total Rental Income¥66million
Security Deposits¥7million
Occupancy Rate
86.7％
Total Leased Floor Space
1,982.72 ㎡
Total Leasable Floor Space
2,287.07 ㎡
Occupancy Rates in the Past
(Note7)

February2012

February2013

February2014

February2015

February
2016

-%
-%
-%
-%
91.7%
(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) PML shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to thereplacement cost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211%
annual chance (10% probability of once every 50 years, i.e., average life time of buildings) of major earthquake
occurring.
(Note 3) Building Coverage
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 4) Leasing Status

7

The Fund, simultaneously with the acquisition of the Property, a master lease agreement, under which the building of
the Property will be collectively leased for the purpose of subleasing, with Haseko Livenet, Inc. The master leaseagreement is “pass-through scheme” where Haseko Livenet, Inc., the master lease company, pays the same amount as
the total sum of the rent based on the lease agreement which the master lease company has concluded with each end
tenant to the Fund. The items in the above chart are indicated based on the following assumptions.
“Total Number of Tenants” is the total number of master lease tenants as of today.
(Note 5) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.
(Note 6) Occupancy Rates in the Past
Regarding the occupancy rates before the end of February 2015, the figures are not stated, as the information has notbeen received from the seller.

2）Property Summary of Assets to be Disposed① Central Shintomicho Building
Property Name
Type of Asset
Trustee
Trust term
Location
Registry(Note 1)StreetAccessArea

Building

Type of OwnershipLand(Note 1)
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Floor Area(Note 1)
Structure(Note 1)

Acquisition Price(Note4)
Transfer PriceBook Value(Note3)
Difference

Appraisal
Value

Appraiser

Central Shintomicho Building
Trust beneficial interest
Sumitomo Mitsui Trust Bank, Limited
From September 15, 2005 to June 30, 2018
3-8-5 Minato, Chuo Ward, Tokyo, Others
3-5-10 Minato,Chuo Ward, Tokyo
Shintomicho Station (Tokyo Metro Yurakucho Line)
Tsukiji Station (Tokyo Metro Hibiya Line)
Ownership
566.40 ㎡
100% (Note2)
500%
Ownership
Office, Retail
March 31 ,1990 (new built)
July 24,1992 (expansion)
2,777.61 ㎡
S, 8F¥1,330 million

Undisclosed(Note3)¥1,330 million

Undisclosed(Note3)
Japan Real Estate Institute

Appraisal Value¥1,330 million

Appraisal Date

April 30,2015

Leasing Status (As of March 29, 2016) (Note 5)
Total Number of6
Tenants
Total Rental Income¥98million
Security Deposits¥72 million
Occupancy Rate
100.0％
Total Leased Floor
2,465.86 ㎡
Space

8

Total Leasable Floor
Space

2,465.86 ㎡

Occupancy Rates in
the Past

February2012

February2013

February2014

February2015

February2016

100.0%
100.0%
100.0%
79.9%
100.0%(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Building Coverage
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 4) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

②Toho Edogawabashi Building
Property Name
Type of AssetRegistry
StreetAccessType of OwnershipLand(Note 1)
Area
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Building
Date(Note 1)
Floor Area(Note 1)
Structure(Note 1)

Location(Note 1)

Acquisition price(Note3)
Transfer PriceBook Value(Note3)
Difference

Appraisal
Value

Appraiser

Appraisal Value
Appraisal Date

Toho Edogawabashi Building
Real Estate
1-240-1 Sekiguchi,Bunkyo Ward, Tokyo, Others
1-24-8 Sekiguchi,Bunkyo Ward, Tokyo
Edogawabashi Station (Tokyo Metro Yurakucho Line)
Ownership
710.40 ㎡
100%(Note2)
500％
Ownership
OfficeMarch 16,1993
3,405.76 ㎡
SRC, B1/9F￥1,140million
Undisclosed￥1,140million
Undisclosed
Japan Real Estate Institute￥1,140million
April 30,2015

Leasing Status (As of March 29, 2016) (Note 4)
Total Number of9
Tenants
Total Rental Income¥91million
Security Deposits¥66million
Occupancy Rate
100.0％
Total Leased Floor
2,058.95㎡
Space

9

Total Leasable Floor
Space

2,058.95㎡

Occupancy Rates in
the Past

February2012

February2013

February2014

February2015

February2016

100.0%
65.7%
77.1%
94.5%
100.0%(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Building Coverage
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 4) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

③Toshin Meguro Building
Property Name
Type of Asset
Trustee
Trust term
Location
Registry(Note 1)StreetAccessArea

Building

Type of OwnershipLand(Note 1)
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Floor Area(Note 1)
Structure(Note 3)

Acquisition price(Note4)

500％
Ownership
OfficeSeptember 30,1989
1,595.27 ㎡
SRC/S, 9F¥858million

Appraisal Value

Undisclosed¥858million
Undisclosed
Japan Real Estate Institute¥858million

Appraisal Date

April 30,2015

Transfer PriceBook Value(Note 4)
Difference

Appraisal
Value

Toshin Meguro Building
Trust beneficial interest
Sumitomo Mitsui Trust Bank, Limited
From May 27, 2005 to June 30, 2018
2-392-10 Shimo Meguro, Meguro Ward, Tokyo, Others
2-20-28 Shimo Meguro, Meguro Ward, Tokyo
Meguro Station (JR Line, Tokyo Metro Namboku Line, Toei
Mita Line, and Tokyu Meguro Line)
Ownership
284.51 ㎡
100%(Note2)

Appraiser

Leasing Status (As of March 29, 2016) (Note 5)
Total Number of7
Tenants
Total Rental Income¥62million
Security Deposits¥60million

10Occupancy Rate
Total Leased Floor
Space
Total Leasable Floor
Space

100.0％
1,341.17㎡
1,341.17㎡

Occupancy Rates in
the Past

February2012

February2013

February2014

February2015

February2016

100.0%
100.0%
27.2%
27.2%
100.0%(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Building Coverage
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) Structure
According to confirmed notification based on the Building Standards Code, the structure is SRC,B2/9F with 3F
penthouse.
(Note 4) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 5) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

④PRIME URBAN Ochiai
Property Name

PRIME URBAN OchiaiType of AssetRegistry
StreetAccessType of OwnershipLand(Note 1)
Area
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Building
Floor Area(Note 1)
Structure(Note 1)
Units

Real Estate

Acquisition price(Note3)¥338million
Undisclosed¥338million
Undisclosed

Location(Note 1)

Transfer PriceBook Value(Note 3)
Difference

Appraisal
Value

Appraiser

2-2096-3 Nakai, Shinjuku Ward, Tokyo, Others
2-17-9 Nakai, Shinjuku Ward, Tokyo
Nakai Station on the Toei Subway Oedo Line and Seibu Shinjuku Line.

Ownership
284.67 ㎡
70%(Note 2)
200％

Ownership
Residential
March28, 1986
553.75 ㎡
RC, 4F
32

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value¥338million

Appraisal Date

May 31,2015

Leasing Status (As of March 29, 2016) (Note 4)
Total Number of1
Tenants11

Total Rental Income
Security Deposits
Occupancy Rate
Total Leased Floor
Space
Total Leasable Floor
Space¥22million¥2million
93.6％
484.56 ㎡
517.53 ㎡

Occupancy Rates in
the Past

February2012

February2013

February2014

February2015

February
2016

97.0%

100.0%

90.9%

97.2%

96.6%

(Note 1) Location and other Items
Location (registry), Area, Completion Date, Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Building Coverage
As the property is located in category 1 residential district, the Building Coverage would originally be 60%, however, theBuilding Coverage has been increased to 70%, as the Property is on a corner.
(Note 3) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 4) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

⑤PRIME URBAN Nakano
Property Name
Type of AssetRegistry
StreetAccessType of OwnershipLand(Note 1)
Area
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Building
Floor Area(Note 1)
Structure(Note 1)
Units

Location(Note 1)

Acquisition price(Note4)
Transfer PriceBook Value(Note 4)
Difference

Appraisal
Value

Appraiser

Appraisal Value
Appraisal Date

PRIME URBAN Nakano
Real Estate
2-17-1 Kami Takada, Nakano Ward, Tokyo
2-17-1 Kami Takada, Nakano Ward, Tokyo
Araiyakushimae Station on the Seibu Shinjuku Line.
Ownership
563.59 ㎡(Note 2)
60%
160％(Note 3)
Ownership
Residential
February15, 1985
917.91 ㎡
RC, 4F51¥489million
Undisclosed¥489million
Undisclosed
Daiwa Real Estate Appraisal Co., Ltd.

¥489million
May 31,2015

Leasing Status (As of March 29, 2016) (Note 5)
Total Number of1
Tenants
12

Total Rental Income
Security Deposits
Occupancy Rate
Total Leased Floor
Space
Total Leasable Floor
Space¥35million¥1million
92.9％
744.70 ㎡
801.30 ㎡

Occupancy Rates in
the Past

February2012

February2013

February2014

February2015

February
2016

98.2%

91.1%

94.5%

100.0%

92.9%(Note 1) Location and other Items
Location (registry), Area, Completion Date, Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Regarding Area
Regarding Area, approx. 7.47 sq. meters is considered to be part of the road according to Article 42, Paragraph 2 of the
Building Standard Law(Note 3) Floor Area Ratio
The Property’s Floor Area Ratio limit was originally set at 200%, but the frontal road regulation (4.0 meters×40%) isprioritized.
(Note 4) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 5) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

⑥PRIME URBAN Ekoda

Property Name

PRIME URBAN Ekoda

Type of AssetRegistry
StreetAccessType of OwnershipLand(Note 1)
Area
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Building
Floor Area(Note 1)
Structure(Note 1)
Units

Real Estate

Acquisition price(Note3)¥409million

Transfer Price

Undisclosed¥409million
Undisclosed

Location(Note 1)

Book Value(Note 3)
Difference

Appraisal
Value

Appraiser

1-10-9 Asahigaoka, Nerima Ward, Tokyo
1-10-5 Asahigaoka, Nerima Ward, Tokyo
Ekoda Station on the Seibu Ikebukuro Line and Toei Oedo Line

Ownership
535.45 ㎡
60%
181.6％（Note2）

Ownership
Residential
July 1,1989
951.84 ㎡
RC, 4F
35

Chuo Real Estate Appraisal Co.,Ltd.

Appraisal Value¥409million

Appraisal Date

May 31,2015

Leasing Status (As of March 29, 2016) (Note 4)13

Total Number ofTenants
Total Rental Income
Security Deposits
Occupancy Rate
Total Leased Floor
Space
Total Leasable Floor
Space

1

¥29million¥3million
100.0％
872.49㎡
872.49㎡

Occupancy Rates in
the Past

February2012

February2013

February2014

February2015

February
2016

94.8%
97.4%
97.5%
100.0%
94.8%(Note 1) Location and other Items
Location (registry), Area, Completion Date, Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Floor Area Ratio
The Property’s Floor Area Ratio limit was originally set at 200%, but the frontal road regulation (4.54 meters×40%) isprioritized.
(Note 3) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 4) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

⑦PRIME URBAN Urayasu II

Property Name

PRIME URBAN Urayasu II

Type of AssetRegistry
StreetAccessType of OwnershipLand(Note 1)
Area
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Building
Floor Area(Note 1)
Structure(Note 1)
Units

Real Estate

Acquisition price(Note3)¥227million

Transfer Price

Undisclosed¥227million
Undisclosed

Location(Note 1)

Book Value(Note 3)
Difference

Appraisal
Value

Appraiser

2-394-3 Todaijima, Urayasu City, Chiba
2-11-5 Todaijima, Urayasu City, Chiba
Urayasu Station on the Tokyo Metro Tozai Line.

Ownership
288.33 ㎡
60%
186.4％(Note 2)

Ownership
Residential
April 12,1993
590.60 ㎡
RC, 4F
27

Japan Real Estate Institute

Appraisal Value¥227million

Appraisal Date

May 31,2015

Leasing Status (As of March 29, 2016) (Note 4)14

Total Number ofTenants
Total Rental Income
Security Deposits
Occupancy Rate
Total Leased Floor
Space
Total Leasable Floor
Space

1¥17million¥1million
100.0％
437.94 ㎡
437.94 ㎡
February2012

Occupancy Rates in
the Past

February2013

February2014

February2015

February
2016

88.9%
100.0%
96.3%
100.0%
92.6%(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Floor Area Ratio
The Property’s Floor Area Ratio limit was originally set at 200%, but the frontal road regulation (4.66 meters×40%) isprioritized.
(Note 3) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 4) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

⑧PRIME URBAN Yamahana

Property Name

PRIME URBAN YamahanaType of AssetRegistry
StreetAccessType of OwnershipLand(Note 1)
Area
Building Coverage
Ratio
Floor Area Ratio
Type of Ownership
Use(Note 1)
Completion
Date(Note 1)
Building
Floor Area(Note 1)
Structure(Note 1)
Units

Real Estate

Acquisition price(Note3)¥273million

Transfer Price

Undisclosed¥273million
Undisclosed

Location(Note 1)

Book Value(Note 3)
Difference

Appraisal
Value

Appraiser

1539-1 Minami 17-Jo Nishi 14-Chome, Chuo Ward, Sapporo City, Hokkaido
1-27 Minami 17-Jo Nishi 14-Chome, Chuo Ward, Sapporo City, Hokkaido
Nishisen Jyuroku Jo Station on the Sapporo City Street Car Line

Ownership
1,108.69 ㎡
80%・60%(Note 2)
300％・200％(Note 3)

Ownership
Residential
February25, 2005
1,868.69 ㎡
RC, 4F
33

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value¥273million

Appraisal Date

May 31,2015

Leasing Status (As of March 29, 2016) (Note 5)15

Total Number ofTenants
Total Rental Income
Security Deposits
Occupancy Rate
Total Leased Floor
Space
Total Leasable Floor
Space
Occupancy Rates in
the Past

1¥23million¥1million
97.7％
1,483.48㎡
1,518.58㎡

February2012

February2013

February2014

February2015

February
2016

93.4%
92.5%
90.1%
96.4%
97.7%
(Note 1) Location and other Items
Location (registry), Area, Completion Date,Use , Structure, and Area are based on the information in the real estateregistry.
(Note 2) Building Coverage
For the land of the Property, the building coverage ratio is 80% for the area within 50 meters from the boundary lineof the road on the western side, which belongs to the neighborhood commercial district, and 60% for the area farther
than 50 meters from the boundary line of the road on the western side, which belongs to the category I residential
district. For the whole area, the weighted-average percentage is applied in accordance with the space of the respective
areas.
(Note 3) Floor Area Ratio
The property’s land is a Commercial district of 300% and a Category 2 residential district of 200%, and the weighted
average figures are applied according to the area ratio(Note 4) The acquisition price as of October 1, 2015, is calculated based on “Notice of the Appraisal Value” dated December 16,
2015. The figures indicated are unaudited figures.
(Note 5) Leasing Status“Total Rent Income” is the amount obtained by multiplying the monthly rent stated the lease agreement with end
tenants actually leasing the building of the Property as of today by 12 (rounded down to the nearest million yen).
“Security Deposits” indicates the amount of security deposits, etc. stated in the aforementioned lease agreement(rounded down the nearest million yen).
“Total Leased Floor Space” indicates the floor space that is being leased to end tenants as of today.

4．Seller Profile
1）Hirakata Kuzuha Logistics Center
Company Name
Head OfficePrincipal Business

Representative
CapitalEstablished

Godo Kaisha Osaka Hirakata Project3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo
1. Acquisition, holding, sale of real estate
2. Leasing and management of real estate
3. Acquisition, holding and sale of real estate trust beneficiary rights
4. All operations pertaining to or associated with each of business listed above
General Incorporated Associations Osaka Hirakata Project, Managing Partner
Takehisa Tei, Functional Manager¥100,000February 20, 2015

Relationship with the Fund and/or NREAM
There is no capital involvement between the said company and the Fund or asset
Capitalmanagement company. Nomura Master Fund holds silent partnership equity
interest investment of ¥ 91 million of Godo Kaisha Osaka Hirakata Project..
There is no personnel involvement between the said company and the Fund or
asset management company. There is also no personnel involvement between
Personnel
related parties of the said company and related parties of the Fund or asset
management company.
There is no transaction between the said company and the Fund or asset
Transactions
management company. There is also no transaction between related parties ofthe said company and related parties of the Fund or asset management company.
The said company is not considered a directly associating party of the Fund.
Status of
Also, the said company is not considered a Related Party, etc., of the asset
Related Parties
management company under the Investment Trusts Act.
(Note) Godo Kaisha Osaka Hirakata Project is the operator of the silent partnership in which Nomura Master Fund has invested 91 million yen

16

(approximately 9.6% of the initial silent partnership equity interest) and Nomura Master Fund exercised, for the acquisition of this property,
the preferential negotiation right that was granted to the former Nomura Real Estate Master Fund, Inc. prior to the merger upon theacquisition of the silent partnership equity interest and to which Nomura Master Fund succeeded upon the merger. For the details of the
Silent Partnership Equity Interest and the Preferential Negotiation Right granted, please refer to the “Notice Concerning Acquisition of
Investment Assets (Equity Interest in Silent Partnership)” that was released by the former Nomura Real Estate Master Fund, Inc. dated
March 24, 2015.

2) Prime Urban Meguro Mita
As the Fund has not obtained an agreement with the Seller, who is Japanese Individual, this information is notdisclosed. There is no capital involvement, personnel involvement or transaction involvement between the Seller andthe Fund or asset management company as of today. The Seller is not Related Parties under the Investment Trust
Law of the asset management company.
3) Prime Urban Chikusa
As the Fund has not obtained an agreement with the Seller, who are Japanese General Operating Companies, thisinformation is not disclosed. There is no capital involvement, personnel involvement or transaction involvement
between the Seller and the Fund or asset management company as of today. The Seller is not Related Parties underthe Investment Trust Law of the asset management company.

5．Buyer Profile
As the Fund has not obtained an agreement with the transferee, who are Japanese specificpurpose Companies, this information is not disclosed. The transferee is not related parties under
the Law Concerning Investment Trusts and Investment Corporations (Investment Trust Law) of
the asset management company.
6．Transaction with Related Parties
None. The current owner of three properties are a Japanese company and Japanese individual,
and there is no special relation between the said company and the Fund or asset managementcompany.
7．Transaction with Related Parties
1) Three Properties① Hirakata Kuzuha Logistics Center
The property management companies of the Hirakata Kuzuha Logistics Center, Nomura Real
Estate Development Co., Ltd. and Nomura Real Estate Partners Co., Ltd. are Related Parties underthe Investment Trust Law as stated above. The Asset Management Company determined theconsignment and the terms and conditions of the transaction, including the fees, pursuant to therestrictions and formalities concerning the transactions with related parties as set forth in theInvestment Trust Law and the Asset Management Company’s bylaws and duly authorized by theCompliance Committee and Investment Committee in the Asset Management Company.
② PRIME URBAN Meguro Mita

The property management companies of the PRIME URBAN Meguro Mita, Nomura Real Estate
Partners Co., Ltd. are Related Parties under the Investment Trust Law as stated above. The AssetManagement Company determined the consignment and the terms and conditions of the transaction,
including the fees, pursuant to the restrictions and formalities concerning the transactions with relatedparties as set forth in the Investment Trust Law and the Asset Management Company’s bylaws andduly authorized by the Compliance Committee and Investment Committee in the Asset Management
Company.

17

③ PRIME URBAN Chikusa

There is no special relation between the said company and the Fund or asset management company
for this transaction.

2) Eight Properties.
There is no special relation between the said company and the Fund or asset managementcompany for this transaction.

8．Brokerage Profile
1) Three Properties,① Hirakata Kuzuha Logistics center

There is no brokerage involved for this property.
② Prime Urban Meguro Mita

As the Fund has not obtained consent to disclosure from the broker, this information is notdisclosed.
There are no capital, personnel and transaction relationships between the broker and the Fund
and/or the asset management company as of today. Also, the broker is not considered a directly
associating party of the Fund and/or the asset management company.
③ Prime Urban Chikusa

As the Fund has not obtained consent to disclosure from the broker, this information is notdisclosed.
There are no capital, personnel and transaction relationships between the broker and the Fund
and/or the asset management company as of today. Also, the broker is not considered a directly
associating party of the Fund and/or the asset management company.

2) Eight Properties
Company Name

Head Office
Representative
Principal Business
Registration Number ofSecurities Dealer
CapitalSumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi Chiyoda-word,Tokyo
President: Kunitaro Kitamura
Chairman: Hitoshi Tsunekage
Loan trust, Banking￥342,000,000,000July 28,1925

Relationship with the Fund and/or NREAM
There is no capital involvement between the said company and the Fund or
asset management company. There is also no capital involvement between
Capitalrelated parties of the said company and related parties of the Fund or asset
management company.
There is no personnel involvement between the said company and the Fund or
asset management company. There is also no personnel involvement between
Personnel
related parties of the said company and related parties of the Fund or asset
management company.
Acts as NMF’s asset custodian, lender, trustee of properties NMF holds. There
Transactions
is also no personnel involvement between related parties of the said company
and related parties of the Fund or asset management company.
Acts as NMF’s asset custodian. The said company is considered a directly
Status of
associating party of the Fund. Also, the said company is not considered a
Related Parties
Related Party, etc., of the asset management company under the Investment
Trusts Act.
The brokerage fee is not disclosed due to the fact that the broker’s consent toBrokerage Fee
disclosure has not been obtained.
18

9. Form of Payment, etc.
1) Transactions regarding the acquisition of three (3) properties subject to the acquisition
With respect to the purchase price of PRIME URBAN Chikusa, Nomura Master Fund plans tomake a package payment to the Seller of the purchase price through funds on hand on the scheduled
date of the acquisition. With respect to the purchase price of Hirakata Kuzuha Logistics Center and
PRIME URBAN Meguro Mita, Nomura Master Fund plans to provide a package payment to theSeller of the purchase price on the scheduled date of each acquisition through funds on hand that are
to be obtained from the assignment of eight (8) properties that are subject to the assignment.

2) Transactions regarding the assignment of eight (8) properties subject to the assignment
On the scheduled date of the assignment, Nomura Master Fund plans to receive a package
payment of the whole purchase price of the eight (8) properties subject to the assignment.

10．Schedule for Acquisition and Disposition
March 30, 2016

March 31, 2016
April 5, 2016
April 12, 2016
April 25, 2016
April 27, 2016

Conclusion of agreement on purchase and sale of real estate for theacquisition of Hirakata Kuzuha Logistics Center and PRIME URBAN
Chikusa; and conclusion of agreement on purchase and sale for the
disposition of the Eight Properties
Conclusion of agreement on purchase and sale for the acquisition of PRIMEURBAN Meguro Mita
Delivery of trust beneficiary rights of PRIME URBAN Chikusa
Delivery of real estate and trust beneficiary rights of the Eight Properties
Delivery of real estate of PRIME URBAN Meguro Mita
Delivery of trust beneficiary rights of Hirakata Kuzuha Logistics Center

11．Forecasts of Financial Results
There is no impact to Nomura Master Fund’s forecasts of financial results for the fiscal period
ending February 29, 2016 (November 1, 2015 to February 29, 2016) and the fiscal period ending
August 31, 2016 (March 1, 2016 to August 31, 2016), there is no revision to the forecast offinancial results.

1912. Appraisal Summary1）Acquisition 3 properties
Property Name

Hirakata Kuzuha Logistics center

Appraisal Value¥3,690,000,000

Appraiser

Daiwa real estate appraisal co., Ltd.

Appraisal Date

Feb. 29, 2016
(Yen)
Item

Capitalization approach pricePrice calculated by the direct capitalization
approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.
(2) Operating expenses
MaintenanceUtilities costs
Repair costs
Property management fees
Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

Amount orpercentage
3,690,000,000
3,700,000,000-

Flow Approach

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on anormalized net cash flow (NCF)(Note)

187,709,280-(Note)

192,202,080(7) Capitalization rate
Price calculated by the Discounted Cash

Grounds

5.2％

Assumed based mainly on the yield on investment ofsimilar retail facilities while taking into consideration
the area characteristics and specific individual
characteristics of the Property

3,680,000,000

Discount rate

4.8％

Terminal capitalization rate

5.2％

Cost Approach Price
Ratio of land
Ratio of building

Assumed by taking into consideration the individual
risks, etc. of the Property
Assumed based on the capitalization rate as well as
future forecast uncertainty

3,070,000,000
58.8％
41.2％
It has been determined that the same supply/demand zone for the subject property is
Mattersnotedinthroughout the industrial area around the main arterial highways within the Kinki region.
reconciliation of indicated
Taking into consideration the level of competitiveness in the rental market and trading
value and determination ofmarket, it has been determined that the most effective use would be to continue the current
appraisal value
use as logistic facilities.
(Note) The Property is occupied only by a tenant who is a third party not having a special interest relationshipwith Nomura Master Fund or the Asset Management Company. Thus information on these items havenot been disclosed since the lease conditions may be assumed by such and negatively affect the Godo
Kaisha’s competitiveness and possibly undermining the interests of Nomura Master Fund andunitholders. Furthermore, the information is not disclosed as consent has not been obtained from thetenant.

20

Property Name

Prime Urban Meguro Mita

Appraisal Value¥1,080,000,000

Appraiser

Japan Valuers Co.,Ltd.

Appraisal Date

Feb. 29, 2016
(Yen)
Amount orpercentage

Item
Capitalization approach price

1,080,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)1,100,000,000
61,605,399(b) Losses due to vacancies, etc.

2,463,428(2) Operating expenses
MaintenanceUtilities costs
Repair costs
Property management fees
Advertisement for leasing, etc.

11,861,776
1,920,000
842,932
801,012
1,698,454
3,219,530

Taxes

3,069,232

Insurance premium

142,030

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

168,586

93,6591,340,000

4.2％

Assumed interest rates of 2.0%.
Assumed based on the Engineering.
Assumed based on conditions of the location, thebuilding, and the contract of the Property.

1,050,000,000
4.0％

Terminal capitalization rate

4.4％

Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Assumed based on the estimated amount.
Assumed based on the estimated performance, etc.
Assumed based on the Engineering.
Assumed based on the estimated amount.
Assumed based on the estimated amount
Assumed based on the actual amount imposed in2015 tax year for the land, the estimated amount forthe building.
Assumed based on the insurance premium and theestimated amount, etc., of a similar building
None

46,033,854

Discount rate

Cost Approach Price
Ratio of land
Ratio of building

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.

47,280,195(7) Capitalization rate

Flow Approach

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

59,141,971(a) Gross rental income

Price calculated by the Discounted Cash

Grounds

Assumed based on the yield on investment of similarbuildings and the characteristics of the Property
Assumed based on the yield on investment of similarbuildings, the future movement of the yield on
investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

792,000,000
83.0％
17.0％
The nearest train stations to the subject property are “Meguro” station and “Ebisu” stationon the JR Yamanote Line; the subject property is located in a transportation convenientarea. The rental demand is steady in the area surrounding “Ebisu” station based on thefact that it ranks high among the best places to live in Tokyo and it has substantial facilities,
etc. for convenience of life. In addition, the dwelling units of the building are mainly
duplex apartments with highly sophisticated design. This property is highly competitive
even among other propertieswithin the area; and it is a rental condominium for which stable
occupancy is expected into the future.
In view of the matters stated above, the appraisal value was determined with an emphasison the capitalization approach price in which the investment profitability value wasappropriately reflected.

21

Property Name

Prime Urban Chikusa

Appraisal Value¥1,130,000,000

Appraiser

Japan Valuers Co.,Ltd.

Appraisal Date

Feb. 29, 2016
(Yen)
Amount orpercentage

Item
Capitalization approach price

1,130,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)1,140,000,000
77,245,771(b) Losses due to vacancies, etc.

3,862,288(2) Operating expenses
MaintenanceUtilities costs
Repair costs
Property management fees
Advertisement for leasing, etc.

16,804,737
1,764,000
913,216
1,861,742
1,791,528
2,591,423

Taxes

4,734,200

Insurance premium

96,737

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

3,051,891

186,624
1,855,875

4.8%

Assumed interest rates of 2.0%.
Assumed based on the Engineering.
Assumed based on conditions of the location, thebuilding, and the contract of the Property.

1,120,000,000
4.6%

Terminal capitalization rate

5.0%

Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Assumed based on the estimated amount.
Assumed based on the estimated performance, etc.
Assumed based on the Engineering.
Assumed based on the estimated amount.
Assumed based on the estimated amount
Assumed based on the actual amount imposed in2015 tax year for the land, the estimated amount forthe building.
Assumed based on the insurance premium and theestimated amount, etc., of a similar building
None54,909,495

Discount rate

Cost Approach Price
Ratio of land
Ratio of building

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.

56,578,746(7) Capitalization rate
Cash Flow Approach

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accou
Calculated by capitalization rate based on a net
revenue of the stable mid-to-long term

73,383,483(a) Gross rental income

Price calculated by the Discounted

Grounds

Assumed based on the yield on investment of similarbuildings and the characteristics of the Property
Assumed based on the yield on investment of similarbuildings, the future movement of the yield on
investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

611,000,000
62.0%
38.0%
Multiple lines/stations are within walking distance; for example, exit 3 of “Kurumamichi”
station on the Nagoya Municipal Subway Sakura-dori Line is close to the subject property,
and “Chikusa” station on the Nagoya Municipal Subway Higashiyama Line and the JR line isapproximately four hundred (400) meters south of the subject property. It takes
approximately nine (9) minutes from “Kurumamichi” station on the Nagoya Municipal
Subway Sakura-dori Line, the nearest station, to “Nagoya” station, a terminal station, andapproximately four (4) minutes from “Chikusa” station on the Nagoya Municipal Subway
Higashiyama Line, which is within walking distance, to “Sakae” station around which there
are many department stores or luxury-brand shops in close proximity; thus, the accessibility
to the city center is excellent. In addition, the building has standard-grade facilities; thesubject property is a rental condominium for which stable occupancy is expected into the
future.
In view of the matters stated above, the appraisal value was determined with an emphasison the capitalization approach price in which the investment profitability value wasappropriately reflected.

222）Disposition 8 properties
Property NameCentral Shintomicho Building

Appraisal Value¥1,330,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

April 30, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price

Grounds

1,330,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)1,340,000,000

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

107,680,000(a) Gross rental income

114,558,000(b) Losses due to vacancies, etc.

6,878,000(2) Operating expenses

33,443,000

Maintenance

8,643,000

Utilities costs

10,000,000

Repair costs

3,973,000

Property management fees

1,938,000

Advertisement for leasing, etc.

605,000

Taxes

8,119,000

Insurance premium

165,000

Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed based on mid to long term perspectiveof the tax base of year 2015.
Allocation, taking into account the actual amount,insurance premium rates of similar buildings, etc.
None

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

74,237,000
1,279,000

Assumed interest rates of 2.0%.

(5) Capital Expenditure Reserve

9,740,000

Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.

(6) Net Cash Flow
(NCF = (3)+(4)-(5))

65,776,000(7) Capitalization rate

4.9％

Price calculated by the Discounted Cash
Flow Approach

0

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.

1,310,000,000

Discount rate

4.7％

Terminal capitalization rate

5.1％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Assumed based on conditions of the location, thebuilding, and the contract of the Property.

1,240,000,000
75.7％
24.3％
―

23

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

Toho Edogawabashi Building

Appraisal Value¥1,140,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

April 30, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price

1,140,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)1,150,000,000

Grounds
In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

106,303,000(a) Gross rental income

110,736,000(b) Losses due to vacancies, etc.

4,433,000(2) Operating expenses

41,677,000

Maintenance

10,600,000

Utilities costs

11,500,000

Repair costs

4,263,000

Property management fees

2,126,000

Advertisement for leasing, etc.

600,000

Taxes

12,117,000

Insurance premium

183,000

Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed based on mid to long term perspectiveof the tax base of year 2015.
Allocation, taking into account the actual amount,insurance premium rates of similar buildings, etc.
Assumed CATV fees as Other Expenses.

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

64,626,000
1,157,000

Assumed interest rates of 2.0%.

(5) Capital Expenditure Reserve

10,450,000

Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.

(6) Net Cash Flow
(NCF = (3)+(4)-(5))

55,333,000(7) Capitalization rate

4.8%

Price calculated by the Discounted Cash
Flow Approach

288,000

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.

1,130,000,000

Discount rate

4.6%

Terminal capitalization rate

5.0%

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Assumed based on conditions of the location, thebuilding, and the contract of the Property.

1,220,000,000
69.1％
30.9％
―

24

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

Toshin Meguro Building

Appraisal Value¥858,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

April 30, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price

Grounds

858,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)874,000,000

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

68,803,000(a) Gross rental income

72,576,000(b) Losses due to vacancies, etc.

3,773,000(2) Operating expenses

20,460,000

Maintenance

5,230,000

Utilities costs

6,100,000

Repair costs

2,716,000

Property management fees

1,262,000

Advertisement for leasing, etc.

488,000

Taxes

4,554,000

Insurance premium

110,000
0

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed based on mid to long term perspectiveof the tax base of year 2015.
Allocation, taking into account the actual amount,insurance premium rates of similar buildings, etc.
None

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

48,343,000
1,148,000

Assumed interest rates of 2.0%.

(5) Capital Expenditure Reserve

6,660,000

Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.

(6) Net Cash Flow
(NCF = (3)+(4)-(5))

42,831,000(7) Capitalization rate

4.9％

Price calculated by the Discounted Cash
Flow Approach

841,000,000

Discount rate

4.7％

Terminal capitalization rate

5.1％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Assumed based on conditions of the location, thebuilding, and the contract of the Property.

824,000,000
69.6％
30.4％
―

25

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

PRIME URBAN Ochiai

Appraisal Value¥338,000,000
Daiwa Real Estate Appraisal Co., Ltd.

Appraiser
Appraisal Date

May 31, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price

338,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)342,000,000

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

25,480,501(a) Gross rental income

26,945,622(b) Losses due to vacancies, etc.

1,465,121(2) Operating expenses

6,177,965

Maintenance

1,428,000

Utilities costs

507,157

Repair costs

1,453,872

Property management fees

750,621

Advertisement for leasing, etc.

1,103,537

Taxes

714,391

Insurance premium

32,587

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

19,302,536(5) Capital Expenditure Reserve

2,601,500(6) Net Cash Flow
(NCF = (3)+(4)-(5))

16,737,821(7) Capitalization rate

4.9％

187,800

36,785

Price calculated by the Discounted Cash
Flow Approach

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed discretionary reserve

Assumed interest rates of 2.0%.
Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.
Assumed based on conditions of the location, thebuilding, and the contract of the Property.

336,000,000

Discount rate

4.7％

Terminal capitalization rate

5.1％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Grounds

209,000,000
81.0％
19.0％
―

26

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

PRIME URBAN Nakano

Appraisal Value¥489,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

May 31, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price489,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)495,000,000

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

35,680,407(a) Gross rental income

37,539,074(b) Losses due to vacancies, etc.

1,858,667(2) Operating expenses

9,708,215

Maintenance

1,938,600

Utilities costs

436,176

Repair costs

3,129,480

Property management fees

1,062,333

Advertisement for leasing, etc.

1,615,826

Taxes

1,219,600

Insurance premium

56,200

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

250,000

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed discretionary reserve

25,972,192(5) Capital Expenditure Reserve

53,861

Assumed interest rates of 2.0%.

782,250

Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.

(6) Net Cash Flow
(NCF = (3)+(4)-(5))

25,243,803(7) Capitalization rate

5.1％

Price calculated by the Discounted Cash
Flow Approach

Assumed based on conditions of the location, thebuilding, and the contract of the Property.

487,000,000

Discount rate

4.9％

Terminal capitalization rate

5.3％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

Grounds

375,000,000
82.3％
17.7％
―

27

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

PRIME URBAN Ekoda

Appraisal Value¥409,000,000

Appraiser

Chuo Real Estate Appraisal Co., Ltd.

Appraisal Date

May 31, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price

Grounds

409,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)397,000,000
30,600,000(a) Gross rental income

32,160,000(b) Losses due to vacancies, etc.

1,560,000(2) Operating expenses

7,757,000

Maintenance

1,256,000

Utilities costs

398,000

Repair costs

2,603,000

Property management fees

1,350,000

Advertisement for leasing, etc.

920,000

Taxes

1,182,000

Insurance premium

48,000

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

22,843,000(5) Capital Expenditure Reserve

1,888,000(6) Net Cash Flow
(NCF = (3)+(4)-(5))

21,047,000(7) Capitalization rate

5.3％

0

92,000Price calculated by the Discounted Cash
Flow Approach

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed based on mid to long term perspectiveof the tax base of year 2015.
Allocation, taking into account the actual amount,insurance premium rates of similar buildings, etc.
None

Assumed interest rates of 2.0%.
Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.
Assumed based on conditions of the location, thebuilding, and the contract of the Property.

409,000,000

Discount rate

5.1％

Terminal capitalization rate

5.5％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

292,000,000
77.4％
22.6％
―

28

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

PRIME URBAN UrayasuⅡ

Appraisal Value¥227,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

May 31, 2015
(Yen)
Amount orpercentage

Item
Capitalization approach price

Grounds

227,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)230,000,000
18,719,000(a) Gross rental income

20,212,000(b) Losses due to vacancies, etc.

1,493,000(2) Operating expenses

4,202,000

Maintenance996,000

Utilities costs

350,000

Repair costs

956,000

Property management fees

542,000

Advertisement for leasing, etc.

583,000

Taxes

746,000

Insurance premium

29,000

Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

14,517,000(5) Capital Expenditure Reserve

1,450,000(6) Net Cash Flow
(NCF = (3)+(4)-(5))

13,121,000(7) Capitalization rate

5.7%

0

54,000Price calculated by the Discounted Cash
Flow Approach

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.
Assumed based on the estimated amount and of asimilar building.
Assumed based on past actual expences takinginto
account the occupancy rate
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Assumed based on agreement conditions, generalstandard, etc.
Assumed based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit.
Assumed based on mid to long term perspectiveof the tax base of year 2015.
Allocation, taking into account the actual amount,insurance premium rates of similar buildings, etc.
None

Assumed interest rates of 2.0%.
Assumed in consideration of building age, as well
as average maintenance and lease renewal fees
based on the engineering report.
Assumed based on conditions of the location, thebuilding, and the contract of the Property.

223,000,000

Discount rate

5.5%

Terminal capitalization rate

5.9％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

199,000,000
62.7%
37.3%
―

29

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

Property Name

PRIME URBAN Yamahana

Appraisal Value¥273,000,000

Appraiser

The Tanizawa Sogo Appraisal Co., ltd.

Appraisal Date

May 31, 2015
(Amount：¥)
Amount orpercentage

Item
Capitalization approach price

Grounds

273,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)271,000,000
25,181,837(a) Gross rental income

26,657,640(b) Losses due to vacancies, etc.

1,475,803(2) Operating expenses

Assumed based on the expected mid- to long-term
stable rent.
Assumed based on the expected mid- to long-term
stable occupancy rate.

6,898,882

Maintenance0

Utilities costs

0

Repair costs

1,237,600

Property management fees

2,100,576

Advertisement for leasing, etc.

462,028Taxes

2,297,100

Insurance premium

46,123

Other expenses

755,455(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

Decided the allocation is unnecessary, basedon
Property Management Agreement
Decided the allocation is unnecessary, basedon
Property Management Agreement
Allocation of appraised restoration expenses andrepair expenses based on the Engineering Report.
Appraisal based on agreement conditions, generalstandard, etc.
Appraisal based on the agreement conditions,taking into account the standard tenant recruit
expenses of similar buildings, and applying theestimated turnover ratio of unit and parking lot
lease.
Appraisal based on mid to long term perspectiveof the tax base of year 2015.
Allocation, taking into account the actual amount,insurance premium rates of similar buildings, etc.
Appraised in consideration of consumer goods
fees, etc. as Other Expenses.

18,282,955
35,114

Assumed interest rates of 2.0%.

2,873,000
15,445,069(7) Capitalization rate

5.7％

Price calculated by the Discounted Cash
Flow Approach

Assumed based on conditions of the location, thebuilding, and the contract of the Property.

274,000,000

Discount rate

5.6％

Terminal capitalization rate

5.9％

Cost Approach Price
Ratio of land
Ratio of building
Mattersnotedinreconciliation of indicatedvalue and determination ofappraisal value

In calculating, both the discounted cash flow
approach and the direct capitalization approach aretaken into accountCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

295,000,000
47.6％
52.4％
―

30

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of the yield
on investment, risks of the Property as a preferredinvestment, general forecasts of economic growthrate, and price trends of real estate and rents

【Exhibits】
Exhibit 1
Exhibit 2
Exhibit 3

Portfolio Over View after Acquisition of three Properties
Photos of three Properties
Maps of three Properties*<Nomura Real Estate Master Fund, Inc> URL: http://www.nre-mf.co.jp/en/

31

Exhibit 1

Portfolio Overview after Acquisition of three Properties

Asset Type

OfficeRetailLogistics

Residential

Grand Total

Area(Note 1)

Acquisition Price(mln)(Note 2)

Percentage tototal(%) (Note 3)

Tokyo Area

291,190

36.1

Other Area

75,2009.3

Total

366,390

45.4

Tokyo Area

95,317

11.8

Other Area

44,836

5.6

Total

140,153

17.4

Tokyo Area

126,230

15.6

Other Area

10,0401.2

Total

136,270

16.9

Tokyo Area

131,962

16.3

Other Area

32,5274.0

Total

164,48920.4-

807,302100.0(Note 1) “Greater Tokyo” 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 Greater Tokyo.
(Note 2) “Total Acquisition Price” is calculated based on “Notice of the Appraisal Value” dated December
16,2015. The figures indicated are unaudited figures.
(Note 3) “Percentage to Total” indicates the ratio of the total acquisition price of properties for respective uses
and in respective areas to the total acquisition price of the entire portfolio (264 properties in total) basedon acquisition prices explained in (Note 2). The calculation of percentage to total excludes silent
partnership equity interests. Furthermore, as the figures were rounded to the first decimal place, the total
may not necessarily be 100%.

32

Exhibit 2-(1)Photos of three Properties
Hirakata Kuzuha Logistics Center

33

Exhibit 2-(2)PRIME URBAN Meguro Mita

34

Exhibit 2-(3)PRIME URBAN Chikusa

35

Exhibit 3-(1)Maps of three Properties
Hirakata Kuzuha Logistics Center

36

Exhibit 3-(2)PRIME URBAN Meguro Mita

37

Exhibit 3-(2)PRIME URBAN Chikusa

38