April 17, 2019

FOR IMMEDIATE RELEASE

Activia Properties Inc.
1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo
Kazuyuki Murayama
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Hiroyuki Tohmata
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6804-5671)

Notice Concerning Concluding Interest Rate Swap Agreement
Activia Properties Inc. (“API”) announces that it concluded today an interest rate swap agreement.
Details are as follows.

1. Reason for conclusion of interest rate swap agreement
API has executed the interest swap agreement to hedge the risks associated with interest rate fluctuations
by converting the interest rates payable into a fixed interest rate for the below long-term borrowing
disclosed in the “Notice Concerning Borrowings of Funds” released on March 29, 2019 (the “Borrowing”).
< Long-term borrowing >LenderLoanamountInterest
rate

Drawdown
date (plan)Due date(Note 1)

Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation

3.5
billionyen

0.255% +Base rate(Note 2)

April 19,2019July 5,
2027

1

Borrowing andrepayment
methods, security,and guarantee
Borrowing basedon a borrowing
agreement with thelenders shown atleft as the creditor,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 April 2019 and the last day of each month thereafter as well ason the due date of the principal. (If an interest payment date is a non-business day, it shall be the following businessday. 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. However, if the base rate applicable to the calculation period doesn’t exist,
the base rate will be the one corresponding to the period that will be calculated based on a method provided in theagreement. 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(http://www.jbatibor.or.jp/english).

2. Details of the interest rate swap agreement< Long-term borrowing >(1) Counterparty(2) Notional principal amount(3) Interest rate(4) Date of the agreement(5) Commencement date(6) Termination date(7) Interest payment date

Sumitomo Mitsui Trust Bank, Limited
3.5 billion yenFixed interest rate payable at 0.54375%
Floating interest rate receivable will be the JBA one-month
Japanese Yen TIBOR+0.255%
April 17, 2019
April 19, 2019
July 5, 2027
The interest payments will be made on the last day of April 2019
and the last day of each month thereafter as well as on thetermination date. (If the interest payment date is a non-businessday, it shall be the following business day. If such day falls in thefollowing month, it shall be the immediately preceding businessday.)(Note) The interest rate for the long-term borrowing will be, in effect, fixed at 0.54375% by the conclusion of theinterest rate swap agreement.

3. Other
Regarding the risks related to the repayment of the Borrowing, there are no significant changes in the“Investment Risk” section of the securities report submitted on February 26, 2019.

*Website of API: https://www.activia-reit.co.jp/en/2