[For Translation Purposes Only]

October 18, 2022

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Shuhei Yoshida, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Koki Miura, President & Chief Executive Officer
Inquiries:

Hiroshi Ishigooka
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

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

1. Summary of Assets to Be Acquired/Disposed of(1) Summary of Asset to Be Acquired
Property NamePROUD FLAT Nezu Yanaka

Use

Residential

AnticipatedAcquisition
Price (million)

Date of
Purchase andSale Agreement

Scheduled
Date of
Acquisition

SellerOctober 18,
2022

January 6,
2023

Nomura Real
EstateDevelopment,
Co., Ltd.

(Note 1)

1,400

(Note 1)The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2)There is no brokerage involved in the acquisition of the asset to be Acquired.

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

Property Name

Use

Scheduled
Date ofAgreement

Scheduled
Date of
Disposition

Transferee

ScheduledTransferPrice(¥ million)(Note 1)PRIME URBAN
Takaido (Note 5)
PRIME URBAN
Mukojima(Note 5)Residential

October 18,
2022

October 31,
2022

Undisclosed(Note 4)PRIME URBAN
Nishi Funabashi
- 1 -

Book
Value
(¥ million)(Note 2)Difference(¥ million)(Note 3)

1,310

1,033

276

636

512

124

967

645

321

(Note 5)

PRIME URBAN
Aoi (Note 5)
PRIME URBAN
Tsurumai

October 18,
2022

October 31,
2022

763

639

123

1,281

846

434

300

205

95

257

194

62

459

361

97

5,974

4,439

1,535

Undisclosed(Note 4)(Note 5)PRIME URBAN
Chiji Kokan(Note 6)PRIME URBAN
Maruyama(Note 6)

Residential
October 18,
2022

October 31,
2022

Undisclosed(Note 4)PRIME URBAN
Kita Nijuyo Jo(Note 6)

Total

(Note 1)The amounts stated exclude adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes
and local consumption tax, etc.
(Note 2)Anticipated book value at the date of disposition.
(Note 3)This is only a reference value which is the difference between the scheduled transfer price and the anticipated book value, therefore,
it is different from gain or loss on sale.
(Note 4)Undisclosed, since a consent has not obtained from the transferee.
(Note 5)As of the date of this document, the asset to be Disposed of is an actual real estate, however, through consultation with thetransferee, NMF will conclude the trust agreement on the same date of the scheduled date of Disposition and transfer the asset
to be Disposed of as a trust beneficiary right. The same shall be applied throughout this document.
(Note 6)The asset to be disposed of is actual real estates.
(Note 7)The brokerage involved in the disposition of the asset to be Disposed of is not considered a related party under the Act on
Investment Trusts and Investment Corporations (“Investment Trust Act”).

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

2. Reasons for the Transaction
The Fund determined that the Transaction would help secure stable income and steady growth of the Fund’s
portfolio over the medium to long term, in line with the asset management objectives and policies specified in the
Fund’s Articles of Incorporation. As an external growth strategy, the Fund will mainly acquire sponsor developed
properties and will sell properties where there are concerns about their future competitive advantage. In this Transaction,
the Fund will acquire a residential facility, which was recently built and developed by the sponsor, Nomura Real Estate
Development Co., Ltd., in the good location of the greater Tokyo area, and will dispose eight residential facilities with
future profitability concerns due to being old and locally located. Through the asset replacement of the Transaction,
including the Acquisition, which utilizes such sponsor support, the Fund will improve the quality of the portfolio as
follows. In addition, the profits on sale will be directed to internal reserves with the intention of raising the distribution
level or stabilizing future distributions, while considering the future management status of the existing portfolio andothers.
Please refer to 3. Summary of Assets to Be Acquired/Disposed of below for details of the reasons for Assets to be
Acquired and the reasons for Assets to be Disposed of.
Reference: The portfolio indicators of the properties
PROUD FLAT Nezu Yanaka- 2 -Asset to be Disposed of(Asset to be Acquired)(Average of 8 facilities)

NOI yield

4.2%(Note 1)

4.8%(Note 2)

NOI yield after depreciation

3.5%(Note 3)

3.2%(Note 4)

Asset age(Note 5)

2.4 years

21.5 years(Note 1) The value entered is calculated by dividing the NOI based on the direct capitalization approach recorded in the appraisal summary
by the anticipated acquisition price. The value is rounded to the first decimal place.
(Note 2) The value entered is calculated by dividing the total NOI, for the 13th fiscal period ended February 28, 2022 and 14th fiscal period
ended August 31, 2022, by the Anticipated Disposition Price. The value is rounded to the first decimal place.
(Note 3) The value entered is calculated by deducting the estimated depreciation value, calculated by the asset management company, fromthe NOI based on the direct capitalization approach recorded in the appraisal summary, and then dividing by the AnticipatedAcquisition Price. The value is rounded to the first decimal place.
(Note 4) The value entered is calculated by dividing the total NOI after depreciation, for the 13th fiscal period ended February 28, 2022 and14th fiscal period ended August 31, 2022, by the Anticipated Disposition Price. The value is rounded to the first decimal place. The
value is rounded to the first decimal place.
(Note 5) The asset age entered is as of the scheduled date of Acquisition for the Asset to be Acquired and as of the scheduled transfer date
for the Asset to be Disposed of.

Greater Tokyo Area
（Residential only）

3.

March 8, 2022
After asset replacement alreadyannounced

After asset replacement
announced this time

84.3%

85.3%

Summary of Assets to Be Acquired/Disposed of(1)Summary of Asset to Be Acquired
PROUD FLAT Nezu Yanaka＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・ The Asset is a six-minute walk from Nezu Station on the Tokyo Metro Chiyoda Line, and five minutes toOtemachi Station and fifteen minutes to Tokyo Station by the metro. Accordingly, the Asset is excellent for
convenient transportation with good access to the terminal station and major business and commercial districts.
・ The Asset is highly convenient for daily living because there are convenience stores, restaurants and drug storesin the surrounding area of the nearest Nezu Station.
・ The Asset is excellent in competitiveness not only because about 50% of the Asset is composed of compact
and family-type units, but also because it is located very close to cultural facilities and natural environment in
the whole Ueno Imperial Gift Park area.

(PROUD FLAT Series)
・ “PROUD FLAT” Series is the core brand of residential facilities developed for rental by the sponsor, Nomura
Real Estate Development Co., Ltd. Utilizing the information network and know-how of the Nomura Real EstateGroup’s housing development and sales business, this rental housing series was developed to provide location
choices suited to urban rental housing.
・ In addition to simple yet beautiful and refined designs, these buildings combine solid quality control withappropriate operation and management, with attention to detail in all aspects of construction, facilities, disaster
preparedness and security based on the extensive know-how of the Nomura Real Estate Group.

- 3 -<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
Type of Master Leasing

PROUD FLAT Nezu Yanaka
Real estate
1-5-2 (and two other parcels of land) Yanaka, Taito Ward, Tokyo
1-1-26 Yanaka, Taito Ward, Tokyo
6-minute walk from Nezu Station on the Tokyo Metro Chiyoda Line
July 15, 2020
Apartment
Eight-floor steel reinforced concrete structure with flat roof
YANAGI GAKU ARCHITECTS
Mabuchi Construction Co., Ltd.
Japan Constructive Inspect Association
391.63 m2
1,671.64 m2
Ownership
Ownership
76.33% (Note 2)
381.68% (Note 3)
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through(Note 5)

Seismic Risk (PML)(Note 6)
Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

7.8% (Based on the Earthquake PML Appraisal Report as of October 2022 by
Sompo Risk Management Inc.)･Nomura Real Estate Partners Co. Ltd., the property management company, isconsidered a related party under the Investment Trust Act.
¥1,400 million¥1,660 million (Based on the capitalization approach as of September 1, 2022)(Appraiser: Daiwa Real Estate Appraisal Co., Ltd.)¥58 million

Leasing Status (As of August 31, 2022) (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)

1
¥74 million¥6 million
98.2%
1,401.11 m2
1,426.44 m2
August2018—

August2019—

August2020
10.1%

August2021
94.1%

August2022
98.2%

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
For the building coverage ratio, the weighted average figure is applied according to the area ratio, because the ratio of
the neighboring commercial zone (80%) is applied to the 319.89 m2 of the property’s land and the ratio of category I
residential zone (60%) is applied to the 71.74 m2.
Floor Area Ratio
The weighted average figure is applied according to the area ratio, because the property’s land is located in both theneighboring commercial zone (400%) and a category I residential zone (300%).
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. Note that the “pass-through type” is- 4 -a scheme where a master lease company pays the same amounts as the rents stipulated in lease agreements with endtenants.
(Note 6) PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every
50 years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard
building) as a ratio (percentage) of the expected recovery cost to the replacement cost.
(Note 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal reportwith September 1, 2022 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a
block , and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to
the end tenants. “Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common
area charges stated in the lease agreements by the total number of end tenants as of August 31 , 2022, actually leasing
space in the building of the Asset (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 (rounded down to the nearest million yen). “Occupancy Rate” is calculated by
dividing Total Leased Floor Space as of August 31, 2022 , by Total Leasable Floor Space. “Total Leased Floor Space”
indicates the total floor space leased to end tenants as of August 31, 2022 “Total Leasable Floor Space” is the total
floor space of offices, retail facilities, logistics facilities, residential facilities, hotels, etc. within the As set that can beleased as of August 31, 2022 (if the common area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
There are no applicable matters before August 31, 2019 as the building was not completed yet. The historical occupancy
rates are based on the information obtained from the seller.

(2)Summary of Asset to Be Disposed of＜Reasons for the Disposition＞
The Fund selected properties based on the comprehensive consideration of factors such as decreasing competitivenessand increasing expense due to an increase in the building age, changes in the market environment and the portfolio balance,and decided on the dispositions because it can secure profits on sale while realizing improvement in the portfolio quality.

＜Summary of the Asset to be Disposed of＞
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Area (Note 1)

PRIME URBAN Takaido
Real estate
4-1060-16 Takaido-Higashi, Suginami Ward, Tokyo
4-10-12 Takaido-Higashi, Suginami Ward, Tokyo
9-minute walk from Takaido Station on the Keio Inokashira LineJanuary 10, 1987
Apartment
Five-floor steel reinforced concrete structure with flat roofLand

990.38 m2

Floor Area

2,247.35 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 3)
Type of Master Leasing(Note 3)
Seismic Risk (PML)(Note 4)

Ownership
Ownership
60%
200% and 300% (Note 2)
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through5.00% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)- 5 -NotesAcquisition Price
Scheduled Transfer PriceBook Value(Note 5)
Difference
Appraisal Value and Method･ Nomura Real Estate Partners Co. Ltd., the property managementcompany, is considered a related party under the Investment Trust Act.
¥1,060 million¥1,310 million¥1,033 million¥276 million¥873 million (Based on the capitalization approach as of August 31,
2022 )(Appraiser: Daiwa Real Estate Appraisal Co., Ltd.)¥56 million

Appraisal NOI (Note 6)
Leasing Status (As of September 30, 2022) (Note 7)
Total Number of Tenants
1
Total Rental Income(Annual)¥76 million
Security Deposits¥6 million
Occupancy Rate
96.3%
Total Leased Floor Space
1,682.01 m2
Total Leasable Floor Space
1,746.20 m2
August2018
Historical Occupancy Rates
97.2％(Note 1)
(Note 2)

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

August2019

August2020

August2021

August
2022

96.2％

99.1％

86.7％

97.2％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Floor Area
The property’s land is located in a semi-industrial zone. The floor area ratio is 300% for the area within 30 m from the Ring
Road No. 8 and 200% for the area over 30 m away from the road, and therefore, the weighted average figure is applied
according to the area ratio.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of Asset
Location(Note 1)

Registry
StreetAccessCompletion Date (Note 1)

PRIME URBAN Mukojima
Real estate
5-239-6 (and one other parcel of land) Higashi-Mukojima, Sumida Ward,Tokyo
5-19-14 Higashi-Mukojima, Sumida Ward, Tokyo
3-minute walk from Higashi Mukojima Station on the Tobu Skytree Line
September 5, 1989

- 6 -

Use (Note 1)
Structure (Note 1)
Land

Area (Note 1)

Floor Area

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 4)
Type of Master Leasing(Note 4)
Seismic Risk (PML)(Note 5)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 6)
Difference
Appraisal Value and Method

Apartment
Twelve-floor steel framed steel reinforced concrete structure with flatroof
281.64 m2 (Note 2)
1,350.89 m2
Ownership
Ownership
100% (Note 3)
500%
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through
5.90% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)･ Nomura Real Estate Partners Co. Ltd., the property managementcompany, is considered a related party under the Investment Trust Act.
¥528 million¥636 million¥512 million¥124 million¥501 million (Based on the capitalization approach as of August 31,
2022)(Appraiser: Japan Real Estate Institute)¥29 million

Appraisal NOI (Note 7)
Leasing Status (As of September 30, 2022) (Note 8)
Total Number of Tenants
1
Total Rental Income(Annual)¥42 million
Security Deposits¥3 million
Occupancy Rate
96.4%
Total Leased Floor Space
1,069.23 m2
Total Leasable Floor Space
1,108.91 m2
August2018
Historical Occupancy Rates
98.2％(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)August2019

August2020

August2021

August
2022

96.4％

96.3％

90.8％

91.0％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Land Area
Under the Building Standards Act Article 42 Paragraph 2, the land includes the area of about 1.66 m2, which is regarded asa road.
Building Coverage Ratio
The Asset is located in a commercial zone where the building coverage ratio is 80% in principle. However, because the Assetis a certified fireproof building in a fire prevention zone, the applied coverage ratio is 100%.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,- 7 -and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Area (Note 1)

PRIME URBAN Nishi Funabashi
Real estate437-1 (and one other parcel of land) Hongocho, Funabashi City, Chiba
437-1, 437-2 Hongocho, Funabashi City, Chiba(Note 2)
6-minute walk from Nishi-Funabashi Station on the JR Sobu Line
February 28, 2006
Apartment
Eleven-floor steel reinforced concrete structure with flat roofLand

323.60 m2

Floor Area

1,319.34 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 3)
Type of Master Leasing(Note 3)
Seismic Risk (PML)(Note 4)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 5)
Difference
Appraisal Value and Method

Ownership
Ownership
80%
400%
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through7.40% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)･ Nomura Real Estate Partners Co. Ltd., the property managementcompany, is considered a related party under the Investment Trust Act.
¥761 million¥967 million¥645 million¥321 million¥958 million (Based on the capitalization approach as of August 31,
2022)(Appraiser: Japan Real Estate Institute)¥44 million

Appraisal NOI (Note 6)
Leasing Status (As of September 30, 2022) (Note 7)
Total Number of Tenants
1
Total Rental Income(Annual)¥53 million
Security Deposits¥4 million
Occupancy Rate
95.0%
Total Leased Floor Space
1,175.91 m2
Total Leasable Floor Space
1,237.80 m2
August2018
Historical Occupancy Rates
100.0％(Note 1)
(Note 2)

August2019

August2020

August2021

August2022

100.0％

96.7％

96.7％

93.3％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Street Address- 8 -(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)As the Street Address is not indicated officially, the building location in the real estate registry is noted.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of AssetRegistry

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

PRIME URBAN Aoi
Real estate
1-1312 (and one other parcel of land) Aoi, Higashi Ward, Nagoya City,
Aichi
1-13-24 Aoi, Higashi Ward, Nagoya City, Aichi
4-minute walk from Shin-Sakaemachi Station on the Nagoya Municipal
Subway Higashiyama Line
August 9, 2006
Apartment
Nine-floor steel reinforced concrete structure with flat roof

Land

710.49 m2

Floor Area

1,686.33 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 3)
Type of Master Leasing(Note 3)
Seismic Risk (PML)(Note 4)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 5)
Difference
Appraisal Value and Method

Ownership
Ownership
80%
240% (Note 2)
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
Pass through
4.30% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
There are no applicable matters.
¥712 million¥763 million¥639 million¥123 million¥679 million (Based on the capitalization approach as of August 31,
2022 )(Appraisal agency: Chuo Real Estate Appraisal Co., Ltd.)¥34 million

Appraisal NOI (Note 6)
Leasing Status (As of September 30, 2022) (Note 7)- 9 -Total Number of Tenants
Total Rental Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

1
¥44 million¥3 million
98.1%
1,540.92 m2
1,571.04 m2
August2018

August2019

August2020

August2021

August
2022

96.2％

94.2％

88.4％

94.2％

98.1％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Floor Area
While the maximum floor area ratio for the property is designated as 400% in principle, the regulation on the width of thefront road (4.00 m X 60%) is prioritized.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of Asset
Location

Registry(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)

Area (Note 1)

PRIME URBAN Tsurumai
Real estate
5-819 (and one other parcel of land) Chiyoda, Naka Ward, Nagoya City,
Aichi
5-8-29 Chiyoda, Naka Ward, Nagoya City, Aichi
5-minute walk from Tsurumai Station on the JR Chuo Main Line
June 26, 2008
Apartment
Fourteen-floor steel reinforced concrete structure with flat roofLand

553.10 m2

Floor Area

2,893.35 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 2)

Ownership
Ownership
80%
500%
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
- 10 -

Type of Master Leasing(Note 2)
Seismic Risk (PML)(Note 3)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 4)
Difference
Appraisal Value and Method

Pass through2.20% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
There are no applicable matters.
¥1,020 million¥1,281 million¥846 million¥434 million¥1,020 million (Based on the capitalization approach as of August 31,
2022)(Appraisal agency: Japan Valuers Co., Ltd.)¥55 million

Appraisal NOI (Note 5)
Leasing Status (As of September 30, 2022) (Note 6)
Total Number of Tenants
1
Total Rental Income(Annual)¥76 million
Security Deposits¥5 million
Occupancy Rate
95.2%
Total Leased Floor Space
2,381.80 m2
Total Leasable Floor Space
2,502.11 m2
August2018
Historical Occupancy Rates
94.2％(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)

August2019

August2020

August2021

August
2022

92.3％

98.1％

99.0％

96.1％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)

PRIME URBAN Chiji Kokan
Real estate
17-1-12 Kita 4-jo Nishi, Chuo Ward, Sapporo City, Hokkaido
17-1-12 Kita 4-jo Nishi, Chuo Ward, Sapporo City, Hokkaido(Note 2)
9-minute walk from Nishi 18-chome Station on the Sapporo Municipal
Subway Tozai LineJanuary 17, 2008
Apartment- 11 -

Structure (Note 1)
Area (Note 1)

Eight-floor steel reinforced concrete structure with flat roofLand

269.14 m2

Floor Area

1,363.61 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 4)
Type of Master Leasing(Note 4)
Seismic Risk (PML)(Note 5)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 6)
Difference
Appraisal Value and Method

Ownership
Ownership
90%(Note 3)
400%
None
Takara Co., Ltd.
Takara Co., Ltd.
Pass through1.20% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
There are no applicable matters.
¥249 million¥300 million¥205 million¥95 million¥252 million (Based on the capitalization approach as of August 31,
2022)(Appraisal agency: Japan Valuers Co., Ltd. )¥16 million

Appraisal NOI (Note 7)
Leasing Status (As of September 30, 2022) (Note 8)
Total Number of Tenants
1
Total Rental Income(Annual)¥24 million
Security Deposits¥1 million
Occupancy Rate
100.0%
Total Leased Floor Space
1,007.30 m2
Total Leasable Floor Space
1,007.30 m2
August2018
Historical Occupancy Rates
97.6％(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)August2019

August2020

August2021

August2022

100.0％

92.8％

97.7％

95.3％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
Building Coverage Ratio
The property is located in a commercial zone where the building coverage ratio is 80% in principle, however, the applied
ratio is 90% because of its location at a corner.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (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- 12 -

Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Area (Note 1)

PRIME URBAN Maruyama
Real estate
22-8-1 Kita 4-jo Nishi, Chuo Ward, Sapporo City, Hokkaido
22-1-1 Kita 4-jo Nishi, Chuo Ward, Sapporo City, Hokkaido
10-minute walk from Nishi 28-chome Station on the Sapporo Municipal
Subway Tozai LineJanuary 22, 2008
Apartment
Ten-floor steel reinforced concrete structure with flat roofLand

481.41 m2

Floor Area

1,085.98 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 2)
Type of Master Leasing(Note 2)
Seismic Risk (PML)(Note 3)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 4)
Difference
Appraisal Value and Method

Ownership
Ownership
60%
200%
None
Takara Co., Ltd.
Takara Co., Ltd.
Pass through1.20% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
There are no applicable matters.
¥229 million¥257 million¥194 million¥62 million¥215 million (Based on the capitalization approach as of August 31,
2022)(Appraisal agency: Japan Valuers Co., Ltd.)¥13 million

Appraisal NOI (Note 5)
Leasing Status (As of September 30, 2022) (Note 6)
Total Number of Tenants
1
Total Rental Income(Annual)¥19 million
Security Deposits¥1 million
Occupancy Rate
100.0%
Total Leased Floor Space
911.07 m2
Total Leasable Floor Space
911.07 m2
August2018
Historical Occupancy Rates
96.3％(Note 1)
(Note 2)

(Note 3)

August2019

August2020

August2021

August
2022

96.3％

92.5％

96.3％

100.0％

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50- 13 -

(Note 4)(Note 5)(Note 6)

years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Area (Note 1)

PRIME URBAN Kita Nijuyo Jo
Real estate
1-304-60 Kita 23-jo Higashi, Higashi Ward, Sapporo City, Hokkaido
1-2-1 Kita 23-jo Higashi, Higashi Ward, Sapporo City, Hokkaido
6-minute walk from Kita 24-jo Station on the Sapporo Municipal Subway
Namboku LineJanuary 18, 2008
Apartment
Ten-floor steel reinforced concrete structure with flat roofLand

928.54 m2

Floor Area

2,228.22 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company(Note 3)
Type of Master Leasing(Note 3)
Seismic Risk (PML)(Note 4)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value(Note 5)
Difference
Appraisal Value and Method

Ownership
Ownership
70%(Note 2)
200%
None
Takara Co., Ltd.
Takara Co., Ltd.
Pass through
2.50% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
There are no applicable matters.
¥437 million¥459 million¥361 million¥97 million¥456 million (Based on the capitalization approach as of August 31,
2022)(Appraisal agency: Japan Valuers Co., Ltd.)¥26 million

Appraisal NOI (Note 6)
Leasing Status (As of September 30, 2022) (Note 7)
Total Number of Tenants
1
Total Rental Income(Annual)¥36 million
Security Deposits¥2 million
Occupancy Rate
100.0%
Total Leased Floor Space
1,773.90 m2
Total Leasable Floor Space
1,773.90 m2- 14 -

Historical Occupancy Rates(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7

August2018

August2019

August2020

August2021

August2022

100.0％

94.4％

97.2％

100.0％

97.2％

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 property is located in a semi-industrial zone where the building coverage ratio is 60% in principle, however, the applied
ratio is 70% because of its location at a corner.
Master Lease
The master lease agreement to be concluded is a “pass-through type” lease, which takes a form such that a master lease
company pays the Fund the same amount as the total rent based on lease agreements between the master lease company
and end-tenants.
PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50
years with 10% probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building)as a ratio (percentage) of the expected recovery cost to the replacement cost.
Book Value
Anticipated book value at the date of disposition.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with
August 31, 2022 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block ,and then the lessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in
the lease agreements by the total number of end tenants as of September 30 , 2022, actually leasing space in the buildingof the Asset (rounded down to the nearest million yen). The figure does not include any other incidental rent that may be
agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees. “Security
Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded
down to the nearest million yen). “Occupancy Rate” is calculated by dividing Total Leased Floor Space as of September 30,
2022, by Total Leasable Floor Space. “Total Leased Floor Space” indicates the total floor space leased to end tenants as of
September 30, 2022 “Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities,
residential facilities, hotels, etc. within the As set that can be leased as of September 30, 2022 (if the common area, etc. isleased, the floor space thereof is included).

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

Nomura Real Estate Development Co., Ltd.

Head Office

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

Representative

Daisaku Matsuo, President & CEO

Principal Business

Real Estate

Capital¥2,000 million (as of March 31, 2022)

Established

April 15, 1957

Net Assets¥91.3 billion (as of March 31, 2022)

Total Assets¥1,527.3 billion (as of March 31, 2022)

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

CapitalPersonal

Nomura Real Estate Development Co., Ltd. holds 4.47% of the Fund’s investment
units (as of August 31, 2022). As a wholly owned subsidiary of Nomura Real Estate
Holdings, Inc., which also holds 100% interests in the shares of the AssetManagement Company, Nomura Real Estate Development Co., Ltd. is a related partyof the Asset Management Company as defined in the Investment Trust Act.
The Asset Management Company’s employees and officers are seconded from
Nomura Real Estate Development Co., Ltd.

- 15 -

Transactions

Related Party
Status

Nomura Real Estate Development Co., Ltd. is a property management company of
the Fund and a lessee of real estate properties owned by the Fund. Moreover, theAsset Management Company has entered into an agreement on provision of
information and a basic agreement on the leasing value chain with the said company.
Nomura Real Estate Development Co., Ltd. does not fall under the definition of a
related party of the Fund for the accounting purpose. However, the said company isa related party of the Asset Management Company as it is a subsidiary of a common
parent company, as stated above.

5. Profile of Transferee of the Asset to be Disposed of
As the Fund has not obtained consent of the Purchaser of the Asset, which is a domestic specific purpose
companies and joint‐stock company, this information is not disclosed. As of today, neither the Fund nor the
Asset Management Company has any notable capital, personnel or transactional relationship with the Purchaser,
and the Purchaser is not a related party of either the Fund or the Asset Management Company.

6. Status of Owner of the Asset to be Acquired
Status of Owner

Current Owner and/or Trustee

Company Name

Nomura Real Estate Development
Co., Ltd.

Relationship with Parties

Please refer to “4. Profile of Seller

with Special Interestof the Asset to be Acquired” above

Background/Reasons for
Acquisition, etc.

Previous Owner and/or Trustee——

For development for later sale

—

—

—

Acquisition Price(Including Other RelatedExpenses)Acquisition Date

(Note)——(Note) Omitted because, for the land, the current owner owned for more than one year, and, for the building, there is no previous owner.

7. Transactions with Related Parties(1) Transactions related to the acquisition of the Asset to be Acquired
The acquisition of the Asset to be Acquired is considered to fall under transactions with a related party underthe Investment Trust Act as stated above. Accordingly, the acquisitions of each property, the acquisition prices,and other relevant terms have been duly examined and authorized by the Asset Management Company’s
compliance committee and investment committee pursuant to its investment committee rules, rules ofcompliance, compliance manual, rules concerning transactions with related parties, and other relevant internal
rules and guidelines.
(2) Transactions related to the disposition of the Asset to be Disposed of
There is no transactions with related parties.
(3) The property management and master lease transactions of PROUD FLAT Nezu Yanaka
The property management company and master leasing company of PROUD FLAT Nezu Yanaka, Nomura
Real Estate Partners Co., Ltd., is considered a related party under the Investment Trust Act as stated above.
Accordingly, the fees and other terms of the consignment of property management, as well as the lease period,
rental rate, and other leasing terms, related to PROUD FLAT Nezu Yanaka have been duly examined andauthorized by the Asset Management Company’s compliance committee and investment committee pursuant to- 16 -

relevant internal rules and guidelines.
Since none of the transactions described in (1) and(3) above falls under the category of transactions between theFund and a related party of an asset management company as set forth in Article 201-2, Paragraph 1 of the Investment
Trust Act, the approval of the Board of Directors of the Fund has not been obtained.

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

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

i.

Under the Sale Agreement, procuring funds equivalent to the acquisition price is set forth as a condition
precedent for the obligation of the buyer.
Where there is material breach of terms of the contract by the seller or buyer (hereinafter such seller orbuyer shall be referred to as the “violating party”), the other party may cancel the contract if such breachis not remedied after the passage of a prescribed period following the date of the non-violating party
issuance of a notification requiring the violating party to perform its obligation or if such breach isobjectively and reasonably deemed impossible to remedy.
If the contract is cancelled in accordance with paragraph ii) above, the non-violating party may require theviolating party to pay a penalty charge that is equivalent to 20% of the acquisition price.The penalty charge
is the liquidated damages amount, and neither party may request an increase or decrease of the penalty
charge irrespective of whether the monetary damage actually suffered by the canceling party due to thecancellation exceeding or failing to reach an amount that is equivalent to 20% of the acquisition price.
The buyer may negotiate with the seller to change the acquisition price if the buyer has obtained an
appraisal report of the Asset to be Acquired by the scheduled date of acquisition and the appraisal value
shown in the appraisal report goes below the acquisition price. In such case, the buyer may cancel thecontract without any indemnification or compensation, if the parties have failed to agree on theacquisition price by the scheduled date of acquisition.

ii.

iii.

iv.

9. Schedule for the Transaction
October 18, 2022

Conclusion of a purchase agreement for the acquisition of the Asset
Conclusion of sale agreements for the dispositions of the Assets

October 31, 2022

Dispositions of the Assets to be Disposed ofJanuary 6, 2023

Acquisition of the Asset to be Acquired- 17 -

10. Outlook
Regarding the impact of the Transactions on the Fund’s management status in the fiscal periods ending February
28, 2023 (September 1, 2023 to February 28, 2023) and August 31, 2023 (March 1, 2023 to August 31, 2023), pleaserefer to the summary of financial statements (REIT) for the fiscal period ended August 31, 2022, which weannounced as of today.

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

PROUD FLAT Nezu Yanaka¥1,660,000,000
Daiwa Real Estate Appraisal Co., Ltd.
September 1, 2022
(Yen)

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

Amount orPercentage
1,660,000,000

1,700,000,000

76,862,041
3,860,228
3,290,400
776,268

Property Management Fees

2,131,450

Advertisement for Leasing
Costs, etc.

2,410,978

Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))

Calculated based on appropriate rent levels recognized asstable over the medium to long term.
Calculated on the premise of the occupancy level recognized
as stable over the medium to long term.

14,123,815

803,445

Insurance Premium

Calculated by evaluating the capitalization approach price withthe direct capitalization approach, using the capitalization
approach price calculated by the discounted cash flow
approach as the baseline.
Calculated by reducing the standardized net cash flow
recognized as stable over the medium to long term by thecapitalization rate.

73,001,813

Repair Costs

Taxes

Grounds

4,005,100
85,160621,014

Recorded based on the judgment that the current BM contract
is reasonable.
Calculated based on actual amounts recorded in the past fiscal
years.
Repair cost: The amount equivalent to 0.12% of the building
replacement cost is recorded.
Tenant replacement cost: Maintenance cost associated withtenants’ move-out is assessed and recorded in consideration ofrestoration by tenants.
The amount equivalent to 3% of rent income and others isrecorded based on the judgement that the agreed-upon
contract is reasonable.
Calculated as two months’ rent paid by a new tenant withreference to leasing advertisement costs for similar properties
and others.
Calculated based on actual amounts recorded in the fiscal year
2022.
Recorded based on the judgement that the estimated amountobtained from the requester is reasonable.
Calculated and recorded with reference to actual fixed andvariable expenses..

58,877,998- 18 -

(4) Profit throughManagement of Temporary

54,449Deposits, etc.
(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

1,077,480

3.4%

Price Calculated by the
Discounted Cash Flow Approach

3.2%

Terminal Capitalization Rate

3.6%

of Indicated Value andDetermination of Appraisal
Value by the Appraisal Agency

Calculated in comprehensive consideration of the property’s
conditions of location, building and agreement.

1,640,000,000

Discount Rate

Matters Noted in Reconciliation

Recorded with the assessment of the amount equivalent to0.28% of building replacement cost after considering CM fee.

57,854,967(7) Capitalization Rate

Cost Approach Price
Ratio of Land
Ratio of Building

Calculated based on an investment yield of 1.0%

Calculated by comparing to similar real estate transaction casesand considering the yield of the financial asset with theproperty’s specific characteristics taken into account.
Calculated in consideration of factors such as the capitalization
rate, the characteristics of net cash flow adopted, future
uncertainties, liquidity and marketability.

1,770,000,000
77.7%
22.3%
We determined that the property is located in the same supply and demand zone as
the residential and mixed (residential and commercial) areas within walking distancefrom railway stations in Taito Ward and the neighboring wards. Considering theproperty’s competitiveness in the rental housing market and the real estate market,
we judged that the best use would be keeping the property as a condominium forrent. While demanders in the real estate market, in which the property is involved,
are assumed to be mainly investors, the demanders show a strong tendency to maketransactions with a focus on the property’s profitability and investment profitability.
Therefore, we decided that the capitalization approach price would relatively be moreconvincing than the cumulative price in the Transaction.

(2) Assets to Be Disposed of
Property Name

PRIME URBAN Takaido¥873,000,000
Daiwa Real Estate Appraisal Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

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

Amount orPercentage
873,000,000

884,000,000

Grounds
Calculated by evaluating the capitalization approach price withthe direct capitalization approach, using the capitalization
approach price calculated by the discounted cash flow
approach as the baseline.
Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

75,607,551
80,362,071
4,754,520

Calculated based on appropriate rent levels recognized asstable over the medium to long term.
Calculated on the assumption of a stable occupancy rate overthe medium to long term

19,546,508
3,763,800

Recorded based on the judgment that the current contract
amount is reasonable- 19 -

Utilities Costs

1,077,691

Repair Costs
5,557,699
Property Management Fees

2,263,094

Advertisement for LeasingTaxes

3,426,424
2,816,600

Insurance Premium

141,200

Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.
(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

500,000

Calculated based on actual amounts recorded in the past fiscal
years.
Repair cost: Calculated based on the annual average amountgiven in the engineering report
Tenant replacement cost: Calculated in consideration of thereplacement and vacancy rates
Recorded based on the judgment that the current contract
amount is reasonableCalculated with reference to the levels of similar properties
Calculated based on the actual amount recorded in the fiscal
year 2022
Recorded based on the judgement that the actual amount isreasonableCalculated based on the actual amounts

56,061,043
57,107
18,120,875

Calculated based on an investment yield of 1.0%
Calculated in consideration of the annual average renewal fees
given in the engineering report and CM fee

37,997,275
4.3%
868,000,000
4.1%

Terminal Capitalization Rate
4.5%
Cost Approach Price
Ratio of Land
Ratio of Building

Calculated with comprehensive consideration of the property’s
specific characteristics with reference to yields on investments
in similar properties
Calculated, combining comparison with the transaction casesof similar properties and a method where the yield of thefinancial asset is calculated with its specific characteristics taken
into account, and also referring to investors’ opinions

702,000,000
86.2%
13.8%

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

Property Name

PRIME URBAN Mukojima¥501,000,000
Chuo Real Estate Appraisal Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

(Yen)
Item
Capitalization Approach Price
Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income

Amount orPercentage
501,000,000
501,000,000

Grounds
Calculated with an emphasis on the capitalization approachprice calculated using the discounted cash flow approach,associating it also with the capitalization approach pricecalculated using the direct capitalization approachCalculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

43,787,000
45,983,000

Calculated based on appropriate rent levels recognized asstable over the medium to long term.
- 20 -

(b) Losses due to Vacancies,etc.

2,196,000(2) Operating Expenses
Maintenance Costs

14,004,000
3,127,000

Utilities Costs

1,264,000

Repair Costs

4,164,000

Property Management Fees

1,362,000

Advertisement for Leasing

2,286,000

Taxes
Insurance Premium
Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.

29,783,000(5) Capital Expenditure
Reserve

8,274,000

1,700,000
101,000
0

33,000(6) Net Cash Flow
(NCF = (3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

Calculated based on the current BM contract conditions in
consideration of the past results, the cost levels at similar
properties and other factors
Calculated based on past results taking in consideration costlevels at similar properties and other factors
The total amount of small-scale repair costs and restoration
costs is recorded.
The total amount of property management fees andconstruction management fees is recorded.
The total amount of brokerage fees and other expenses,
advertisement cost and renewal fees is recorded.
The most recent results were adopted.
The most recent results were adopted.
There are no specific expenses to record as other expenses.

Calculated based on an investment yield of 1.0%
Large-scale repair costs and facility renewal costs expected to
be incurred are recorded equally in each year, and the annual
average amount of renewal costs estimated by ER is recorded.

21,542,000
4.3%
501,000,000
4.1%

Terminal Capitalization Rate
4.5%
Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated based on a stable occupancy rate (vacancy rate) overthe medium to long term, taking into consideration theoccupancy results of the property and similar properties aswell as the future market outlook and other factors

Calculated with comprehensive consideration of the property’s
specific characteristics with reference to yields on investments
in similar properties
Calculated based on a comprehensive consideration of factors
such as the yield on similar property transactions, the probablefuture movement of the yield on investment, risks of theproperty as an investment, general forecasts of the economic
growth rate and price trends in real estate and rents

271,000,000
66.8%
33.2%
―

Property Name
Appraisal Value
Appraiser

PRIME URBAN Nishi Funabashi¥958,000,000
Japan Real Estate Institute

Appraisal Date

August 31, 2022
(Yen)

Item

Amount orPercentage

Grounds- 21 -

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

Property Management Fees
Advertisement for Leasing
Taxes
Insurance Premium

Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.

958,000,000
964,000,000

Calculated taking into account the capitalization approachprice determined using both the direct capitalization approachand the discounted cash flow approach.
Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

55,131,000
58,017,000
2,886,000

Calculated based on appropriate rent levels recognized asstable over the medium to long term.
Calculated on the assumption of a stable occupancy rate overthe medium to long term

11,005,000
1,620,000
420,000
2,833,000
1,578,000
1,784,000
2,421,000
79,000270,000

Calculated with reference to the actual amounts in past fiscal
years and cost levels for comparable properties
Calculated with reference to the actual amounts in past fiscal
years and cost levels for comparable properties
Recorded based on a consideration of restoration costcalculated, the annual average amount of repair and renewal
costs given in the engineering report and other factors
Calculated with reference to the current compensation fee rate,compensation fee rates adopted to similar properties and otherfactors
Calculated with reference to the current contract conditions,the rental conditions at similar properties in the surroundingarea and other factors
Calculated based on the tax base amounts in the fiscal year2022
Calculated with reference to the premium based on the current
insurance contract, the premium rates at similar properties andother factors
The residents’ association membership fees, etc. are recorded
as other expenses,

44,126,000
41,000Calculated based on an investment yield of 1.0%
Calculated based on the assumption of average allocations(5) Capital Expenditure
Reserve

4,650,000

each period, capital expenditure levels at similar properties, thebuilding’s age, the annual average maintenance and renewal
fees given in the engineering report and other factors(6) Net Cash Flow
(NCF = (3)+(4)-(5))

39,517,000(7) Capitalization Rate

4.1%

Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

951,000,000
3.9%

Terminal Capitalization Rate
4.2%
Cost Approach Price
Ratio of Land
Ratio of Building

Calculated based on a comprehensive consideration of theproperty’s conditions of location, building and others
Calculated with comprehensive consideration of the property’s
specific characteristics with reference to yields on investments
in similar properties
Calculated based on a comprehensive consideration of factors
such as the yield on similar property transactions, the probablefuture movement of the yield on investment, risks of theproperty as an investment, general forecasts of the economic
growth rate and price trends in real estate and rents

459,000,000
54.3%
45.7%
- 22 -

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value―

Property Name

PRIME URBAN Aoi¥679,000,000
Chuo Real Estate Appraisal Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

(Yen)
Item
Capitalization Approach Price
Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to Vacancies,etc.
(2)Operating Expenses
Maintenance Costs
Utilities Costs
Repair Costs
Property Management Fees
Advertisement for Leasing

Amount orPercentage
679,000,000
687,000,000

Calculated with an emphasis on the capitalization approachprice calculated using the discounted cash flow approach,associating it also with the capitalization approach pricecalculated using the direct capitalization approachCalculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

47,944,000
50,722,000
2,778,000

Calculated based on appropriate rent levels recognized asstable over the medium to long term.
Calculated based on a stable occupancy rate (vacancy rate) overthe medium to long term, taking into consideration theoccupancy results of the property and similar properties aswell as the future market outlook and other factors

12,998,000
2,451,000
719,000
3,466,000
1,477,000
1,540,000

Taxes
Insurance Premium
Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.

34,946,000(5) Capital Expenditure
Reserve

4,117,000(6) Net Cash Flow
(NCF = (3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

Grounds

2,968,000
101,000
276,000

72,000Calculated based on the current BM contract conditions in
consideration of the past results, the cost levels at similar
properties and other factors
Calculated based on past results taking in consideration costlevels at similar properties and other factors
The total amount of small-scale repair costs and restoration
costs is recorded.
The total amount of property management fees andconstruction management fees is recorded.
The total amount of brokerage fees and other expenses,
advertisement cost and renewal fees is recorded.
The most recent results were adopted.
The most recent results were adopted.
CATV usage fee

Calculated based on an investment yield of 1.0%
Large-scale repair costs and facility renewal costs expected to
be incurred are recorded equally in each year, and the annual
average amount of renewal costs estimated by ER is recorded.

30,901,000
4.5%
676,000,000
4.3%

Calculated with comprehensive consideration of the property’s
specific characteristics with reference to yields on investments
in similar properties- 23 -

Terminal Capitalization Rate
4.7%
Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated based on a comprehensive consideration of factors
such as the yield on similar property transactions, the probablefuture movement of the yield on investment, risks of theproperty as an investment, general forecasts of the economic
growth rate and price trends in real estate and rents

715,000,000
62.8%
37.2%
―

Property Name

PRIME URBAN Tsurumai¥1,020,000,000
Japan Valuers Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

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

Property Management Fees
Advertisement for Leasing
Taxes
Insurance Premium
Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.
(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

Amount orPercentage
1,020,000,000
1,030,000,000

Grounds
Calculated taking into account the capitalization approachprice determined using both the direct capitalization approachand the discounted cash flow approach.
Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

79,137,522
83,440,613
4,303,091

Calculated based on consideration of current rents, rent levelsin the market and other factors
Calculated based on consideration of the current vacancy rate,vacancy rates in the market and other factors

23,444,666
3,546,000
954,000
6,366,298
2,351,556
3,495,110
5,582,030
166,920982,752

Calculated with reference to the contract amount, cost levels
at comparable properties and other factors
Calculated with reference to actual amounts, the general levels
and other factors
Calculated based on consideration of average annual repair
and renewal costs indicated in the engineering report and otherfactors
Calculated with reference to the contract amount, generallevels at comparable properties and other factors
The average annual amount calculated based on past results,
general levels and other factors is recorded
Calculated based on tax base amounts for fiscal year 2022 andother factors
Recorded based on actual amounts, the general level and otherfactors
Calculated with reference to past results, the general level andother factors (incl. CM fees)

55,692,856
57,757
8,496,833

Calculated based on an investment yield of 1.0%
Calculated with reference to the average annual repair andrenewal costs indicated in the engineering report

47,253,780- 24 -

(7) Capitalization Rate

4.6%

Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

1,010,000,000
4.4%

Terminal Capitalization Rate

4.8%

Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated in consideration of the property’s locality andspecific characteristics, referring to the yields of similartransactions and other factors
Calculated in consideration of the property’s locale andspecific characteristics, referring to the yields of comparable
transactions and other factors
Calculated based on consideration of the capitalization ratestated above, the future trend of investment yields and otherfactors

522,000,000
60.5%
39.5%
―

Property Name

PRIME URBAN Chiji Kokan¥252,000,000
Japan Valuers Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

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

Property Management Fees
Advertisement for Leasing
Taxes
Insurance Premium
Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))

Amount orPercentage
252,000,000
253,000,000

Grounds
Calculated taking into account the capitalization approachprice determined using both the direct capitalization approachand the discounted cash flow approach.
Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

24,886,569
26,750,194
1,863,625

Calculated based on consideration of current rents, rent levelsin the market and other factors
Calculated based on consideration of the current vacancy rate,vacancy rates in the market and other factors

8,884,266
1,237,680
695,473
2,369,887
746,597
882,550
2,472,858
53,633425,588

Calculated with reference to the contract amount, cost levels
at comparable properties and other factors
Calculated with reference to actual amounts, the general levels
and other factors
Calculated based on consideration of average annual repair
and renewal costs indicated in the engineering report and otherfactors
Calculated with reference to the contract amount, generallevels at comparable properties and other factors
The average annual amount calculated based on past results,
general levels and other factors is recorded
Calculated based on tax base amounts for fiscal year 2022 andother factors
Recorded based on actual amounts, the general level and otherfactors
Calculated with reference to past results, the general level andother factors (incl. CM fees)

16,002,303- 25 -

(4) Profit throughManagement of Temporary
Deposits, etc.
(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF=(3)+(4)-(5))

18,6203,609,083

Calculated with reference to the average annual repair andrenewal costs indicated in the engineering report

12,411,840(7) Capitalization Rate

4.9%

Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

Calculated in consideration of the property’s locality andspecific characteristics, referring to the yields of similartransactions and other factors

251,000,000
4.7%

Terminal Capitalization Rate

5.1%

Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated based on an investment yield of 1.0%

Calculated in consideration of the property’s locale andspecific characteristics, referring to the yields of comparable
transactions and other factors
Calculated based on consideration of the capitalization ratestated above, the future trend of investment yields and otherfactors

179,000,000
63.1%
36.9%
―

Property Name

PRIME URBAN Maruyama¥215,000,000
Japan Valuers Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

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

Property Management Fees
Advertisement for Leasing
Taxes

Amount orPercentage
215,000,000
216,000,000

Grounds
Calculated taking into account the capitalization approachprice determined using both the direct capitalization approachand the discounted cash flow approach.
Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

20,962,560
22,177,560
1,215,000

Calculated based on consideration of current rents, rent levelsin the market and other factors
Calculated based on consideration of the current vacancy rate,vacancy rates in the market and other factors

7,790,449
820,800
965,558
1,769,989
628,877
956,8022,121,687

Calculated with reference to the contract amount, cost levels
at comparable properties and other factors
Calculated with reference to actual amounts, the general levels
and other factors
Calculated based on consideration of average annual repair
and renewal costs indicated in the engineering report and otherfactors
Calculated with reference to the contract amount, generallevels at comparable properties and other factors
The average annual amount calculated based on past results,
general levels and other factors is recorded
Calculated based on tax base amounts for fiscal year 2022 andother factors- 26 -

Insurance Premium

40,013

Other Expenses

486,723(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.
(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

13,172,111
16,1352,583,583

Calculated based on an investment yield of 1.0%
Calculated with reference to the average annual repair andrenewal costs indicated in the engineering report

10,604,663(7) Capitalization Rate

4.9%

Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

Calculated in consideration of the property’s locality andspecific characteristics, referring to the yields of similartransactions and other factors

214,000,000
4.7%

Terminal Capitalization Rate

5.1%

Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Recorded based on actual amounts, the general level and otherfactors
Calculated with reference to past results, the general level andother factors (incl. CM fees)

Calculated in consideration of the property’s locale andspecific characteristics, referring to the yields of comparable
transactions and other factors
Calculated based on consideration of the capitalization ratestated above, the future trend of investment yields and otherfactors

167,000,000
72.5%
27.5%
―

Property Name

PRIME URBAN Kita Nijuyo Jo¥456,000,000
Japan Valuers Co., Ltd.
August 31, 2022

Appraisal Value
Appraiser
Appraisal Date

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

Amount orPercentage
456,000,000
458,000,000

Grounds
Calculated taking into account the capitalization approachprice determined using both the direct capitalization approachand the discounted cash flow approach.
Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

38,928,338
41,431,704
2,503,366

Calculated based on consideration of current rents, rent levelsin the market and other factors
Calculated based on consideration of the current vacancy rate,vacancy rates in the market and other factors

11,982,400
1,101,840
1,477,431
2,780,074

Calculated with reference to the contract amount, cost levels
at comparable properties and other factors
Calculated with reference to actual amounts, the general levels
and other factors
Calculated based on consideration of average annual repair
and renewal costs indicated in the engineering report and otherfactors- 27 -

Property Management Fees

1,167,850

Advertisement for Leasing

1,091,360

Taxes

3,536,175

Insurance Premium

84,130

Other Expenses

743,540(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4) Profit throughManagement of Temporary
Deposits, etc.
(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

26,945,938
30,421
4,055,333

Calculated based on an investment yield of 1.0%
Calculated with reference to the average annual repair andrenewal costs indicated in the engineering report

22,921,026(7) Capitalization Rate

5.0%

Price Calculated by the
Discounted Cash Flow Approach
Discount Rate

Calculated in consideration of the property’s locality andspecific characteristics, referring to the yields of similartransactions and other factors

453,000,000
4.8%

Terminal Capitalization Rate

5.2%

Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated with reference to the contract amount, generallevels at comparable properties and other factors
The average annual amount calculated based on past results,
general levels and other factors is recorded
Calculated based on tax base amounts for fiscal year 2022 andother factors
Recorded based on actual amounts, the general level and otherfactors
Calculated with reference to past results, the general level andother factors (incl. CM fees)

Calculated in consideration of the property’s locale andspecific characteristics, referring to the yields of comparable
transactions and other factors
Calculated based on consideration of the capitalization ratestated above, the future trend of investment yields and otherfactors

241,000,000
58.5%
41.5%
―

Exhibits
Exhibit 1 Overview of the Portfolio after the Transaction
Exhibit 2 Photos and Maps of the Asset to be Acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/- 28 -

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

Greater Tokyo
Area (Note 1)

Sector(Anticipated) Total
Other Areas

Acquisition Price(by Sector)

Investment Ratio(%) (Note 2)

Office403,585

69,610473,195

43.6

Retail109,888

64,155174,044

16.0

Logistics

214,7223,460

218,182

20.1

Residential

177,340

30,681

208,021

19.2

Hotels

―

6,250

6,250

0.6

Others

4,900

―

4,900

0.5

(Anticipated)
Total Acquisition Price(by Area)

910,436

174,156

1,084,593

100.0

Investment Ratio (%)

83.9

16.1

100.0

(Note 2)

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

Exhibit 2
Photos and Access Map of the Asset to be Acquired
PROUD FLAT Nezu Yanaka