September 6, 2021
FOR IMMEDIATE RELEASE
Activia Properties Inc.
21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo
Kazushi Sato
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Masaoki Kanematsu
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6455-3377)

Notice Concerning Borrowings of Funds
Activia Properties Inc. (“API”) announces today that it decided to borrow funds (the “Borrowings”).
Details are as follows:1.

Details of the borrowings< Short-term borrowing >Borrowing andrepayment
LoanInterest
Drawdown
Due date
Lendermethods,amountrate
date (plan)(Note 1)security, andguarantee
Borrowing basedon a borrowing
agreement withthe lenders
Sumitomo Mitsui Trust Bank, Limited
3.9
0.13%
September 10, September 10,
shown at left as
Mizuho Bank, Ltd.
billion+Base rate
2021
2022
the creditor,MUFG Bank, Ltd.
yen
(Note 2)lump-sum
repayment,
unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of September 2021 and the last day of each month thereafter aswell as on the due date of the principal. (If an interest payment date is a non-business day, it shall be the following
business day. If such day falls in the following month, it shall be the immediately preceding business day.)The base rate applicable to the period for the calculation of the interest payable on an interest payment date is theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediatelypreceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.
After this, API will not announce the interest rate decisions for the borrowing. For changes in the JBA Japanese Yen
TIBOR, the base rate, please check the website of the JBA TIBOR Administration (https://www.jbatibor.or.jp/english).

Disclaimer: This press release is an announcement by Activia Properties Inc. concerning the borrowings of funds, andhas not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read theprospectus for the issuance of new investment units, as well as any amendments thereto (if any), prepared by Activia
Properties Inc. before they invest and that they make decisions on investment at their own discretion.

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< Long-term borrowings>
Borrowing andrepayment
LoanInterest
Drawdown
Due date
Lendermethods,
amountrate
date (plan)(Note 1)security, andguarantee
Borrowing basedon a borrowing
agreement withthe lenders
Sumitomo Mitsui Trust Bank, Limited
2.5
0.14%
September 10, September 10,
shown at left as
Mizuho Bank, Ltd.
billion+Base rate
2021
2023
the creditor,
MUFG Bank, Ltd.
yen
(Note 2)lump-sum
repayment,unsecured, andunguaranteed
Borrowing basedon a borrowing
agreement with
Sumitomo Mitsui Trust Bank, Limited
To be
the lenders
Mizuho Bank, Ltd.
4.9
determined
September 10, September 10,
shown at left as
MUFG Bank, Ltd.
billion(Fixed rate)
2021
2029
the creditor,
Sumitomo Mitsui Banking Corporationyen(Note 3)lump-sum
Development Bank of Japan Inc.
(Note 4)
repayment,unsecured, andunguaranteed
Borrowing basedon a borrowing
agreement with
Sumitomo Mitsui Trust Bank, Limited
To be
the lenders
Mizuho Bank, Ltd.
4.9
determined
September 10, September 10,
shown at left as
MUFG Bank, Ltd.
billion(Fixed rate)
2021
2030
the creditor,
Sumitomo Mitsui Banking Corporation
yen(Note 3)
lump-sum
Development Bank of Japan Inc.
(Note 4)
repayment,unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of September 2021 and the last day of each month thereafter aswell as on the due date of the principal. (If an interest payment date is a non-business day, it shall be the following
business day. If such day falls in the following month, it shall be the immediately preceding business day.)The base rate applicable to the period for the calculation of the interest payable on an interest payment date is theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediatelypreceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.
After this, API will not announce the interest rate decisions for the borrowing. For changes in the JBA Japanese YenTIBOR, the base rate, please check the website of the JBA TIBOR Administration (https://www.jbatibor.or.jp/english).
(Note 3) Interest rate of the borrowing will be announced upon the determination.
(Note 4) The interest payment will be made on the last day of March 2022 and the last days of March and September in eachyear thereafter as well as on the due date of the principal. (If an interest payment date is a non-business day, it shallbe the following business day. If such day falls in the following month, it shall be the immediately preceding businessday.)Disclaimer: This press release is an announcement by Activia Properties Inc. concerning the borrowings of funds, andhas not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read theprospectus for the issuance of new investment units, as well as any amendments thereto (if any), prepared by Activia
Properties Inc. before they invest and that they make decisions on investment at their own discretion.

22． Reasons for the borrowings
API will use the borrowings for a part of the purchase price and the related expenses of the real estate trust
beneficiary interests in the three anticipated properties announced in “Notice of Acquisition of Assets andLease Contract with New Tenants (Three Properties Including Meguro Tokyu Building) ” released on
August 24, 2021. For the details of the anticipated properties, please refer to “Notice of Acquisition ofAssets and Lease Contract with New Tenants (Three Properties Including Meguro Tokyu Building)”
released on August 24, 2021.
3． Amount, use and schedule of disbursement of funds to be raised(1) Total amount16.2 billion yen in total(2) Specific purpose of use
A part of the purchase price and the related expenses of the real estate trust beneficiary interests in theanticipated properties(3) Scheduled date of disbursement
September 10, 2021
4．Status of borrowings payable, etc. after the Borrowings(1) Interest-bearing debt balance after the Borrowings(In millions of yen)
Beforethe Borrowings(As of September 6,2021)

After
the Borrowings(As of September 10,2021)

0

3,900

3,900

26,10026,1000195,250

207,550

12,300221,350

237,550

16,200Investment corporation bonds
to be redeemed within one year

1,000

1,0000Investment corporation bonds

21,80021,8000244,150

260,350

16,200

Short-term borrowings(Note)

Long-term borrowings
to be repaid within one year
Long-term borrowings(Note)

Total amount of borrowings

Total amount of borrowings andinvestment corporation bonds

Change(Note) Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer
to borrowings with a maturity period of more than one year.

Disclaimer: This press release is an announcement by Activia Properties Inc. concerning the borrowings of funds, andhas not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read theprospectus for the issuance of new investment units, as well as any amendments thereto (if any), prepared by Activia
Properties Inc. before they invest and that they make decisions on investment at their own discretion.

3(2) Basic financing information after the Borrowings
Beforethe Borrowings(As of September 6,2021)

After
the Borrowings(As of September 10,2021)

100.0%

98.5%

(1.5)

88.9%

88.1%

(0.8)

97.4%

95.1%(2.3)

Long-term debt ratio(Note 1) (Note 4)Long-term debt ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin one year) (Note 2) (Note 4)
Fixed interest ratio(Note 3) (Note 4)

Change(point)(Note 1) Long-term debt ratio is the ratio of the outstanding long-term borrowings (including the long-term borrowings tobe repaid within one year) and investment corporation bonds (including the investment corporation bonds to beredeemed within one year) to the total of outstanding interest-bearing debt.
(Note 2) Long-term debt ratio (excluding the long-term borrowings to be repaid and investment corporation bonds to beredeemed within one year) is the ratio of the outstanding long-term borrowings (excluding the long-termborrowings to be repaid within one year) and investment corporation bonds (excluding the investment corporation
bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.
(Note 3) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the totalof outstanding interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates
includes debts whose interest rates were converted into fixed interest rates by interest rate swap agreements.
(Note 4) Figures are rounded to the first decimal place.

5．Other
Regarding the risks related to the repayment of the Borrowings, there are no significant changes in the“Investment Risk” section of the securities registration statement submitted on August 24, 2021.

*Website of API: https://www.activia-reit.co.jp/en/

Disclaimer: This press release is an announcement by Activia Properties Inc. concerning the borrowings of funds, andhas not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read theprospectus for the issuance of new investment units, as well as any amendments thereto (if any), prepared by Activia
Properties Inc. before they invest and that they make decisions on investment at their own discretion.

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