July 20, 2020
For Translation Purposes Only
Real Estate Investment Fund Issuer:
Mori Hills REIT Investment Corporation(Securities Code: 3234)
1-12-32 Akasaka, Minato-ku, Tokyo
Hideyuki Isobe, Executive Director
Asset Manager:
Mori Building Investment Management Co., Ltd.
Hideyuki Isobe, President & CEO
Inquiries: Akira Nemoto
General Manager, Financial Department
TEL: +81-3-6234-3234
MHR Announces Transaction with a Related Party (Mori Building Co., Ltd.)(ARK Mori Building and Roppongi Hills Mori Tower)
Mori Hills REIT Investment Corporation (hereafter “MHR”) announced that Mori Building
Investment Management Co., Ltd. (hereafter “MIM”), to which MHR entrusts its asset management,
decided today to conduct a transaction with a related party, etc. as stipulated in the Act on
Investment Trusts and Investment Corporations (hereafter “Investment Trusts Act”). The details
are as follows.
1. Transaction Overview
MHR has decided to renew the building lease (master lease) and property management agreement
between Mori Building Co., Ltd. on February 1, 2021 of ARK Mori Building and Roppongi Hills
Mori Tower owned by MHR.
2. Summary of the Renewal and Reasons
Based on the appraisal on continuing rent from Japan Real Estate Institute and result of thediscussion between the parties, MHR has decided to renew the agreement under the same
conditions as below which are equivalent to those of before renewal.
(1) ARK Mori Building① Leased floor

13th floor

12th and 22nd floors② Leased area

2,728.96 ㎡

5,223.59 ㎡③ Monthly rent

26,630,406 yen

51,282,093 yen④ Security deposits

319,564,872 yen

520,923,738 yen⑤ LesseeMori Building Co., Ltd.

⑥ Leasing scheme

Leasing scheme Fixed-rent master lease⑦ Term of agreement

From February 1, 2021 to January 31, 2026

⑧ Planned date of change

February 1, 2021

⑨ Date of execution

July 31, 2020

1

① Leased floor

23rd and 25th floors

4th and 15th, 24th floors② Leased area

5,742.95 ㎡

7,680.52 ㎡③ Monthly rent

55,505,288 yen

73,868,425 yen④ Security deposits

555,052,880 yen

738,684,250 yen⑤ LesseeMori Building Co., Ltd.

⑥ Leasing scheme

Leasing scheme Fixed-rent master lease⑦ Term of agreement

From February 1, 2021 to January 31, 2026

⑧ Planned date of change

February 1, 2021

⑨ Date of execution

July 31, 2020

（2）Roppongi Hills Mori Tower① Leased floor

25th floor② Leased area

4,156.66 ㎡③ Monthly rent

45,894,722 yen④ Security deposits

458,947,220 yen⑤ LesseeMori Building Co., Ltd.

⑥ Leasing scheme

Leasing scheme Fixed-rent master lease⑦ Term of agreement

From February 1, 2021 to January 31, 2026

⑧ Planned date of change

February 1, 2021

⑨ Date of execution

July 31, 2020

3. Overview of Related Party, etc.
Name

Mori Building Co., Ltd.

Location6-10-1 Roppongi, Minato-ku, Tokyo

Representative

Shingo Tsuji, President & CEO

Scope of business

General developer

Capital79,500 million yen (as of March 31, 2020)

Established

June 2, 1959

Major shareholder

Mori Kiyo Co., Ltd. (as of March 31, 2020)

Net assets

399,597 million yen (as of March 31, 2020)

Total assets

1,799,309 million yen (as of March 31, 2020)

Relationship with MHR and Asset Manager (as of July 20, 2020)
Capital relationship

Mori Building is a major unitholder (15.0% stake) of MHR.
Mori Building is also the wholly owning parent company(100% stake) of the Asset Manager, and thus constitutes arelated party, etc. as defined in the Investment Trusts Act.

Personnelrelationship

There are no personal relationships to note between
MHR/MIM and Mori Building.
2

Mori Building has executed a support agreement andinformation provision agreement with MHR and the AssetManager and an advisory business consignment agreementwith the Asset Manager, and provides support, etc. inconnection with property acquisitions, etc. In addition, Mori
Building has executed a brand mark licensing contract withBusiness
MHR and grants the license to use the brand name “Mori Hills
relationshipREIT” and the “m” brand mark. Furthermore, as for assets
MHR owns in the form of trust beneficial interests, Mori
Building has executed a building lease agreement (so called“master lease agreement”) with a trustee, and leases theentire property as a master lessee. Mori Building has also
executed a property management agreement and conducts
property management of the property.
Mori Building falls under the category of other affiliatedApplication of statuscompanies of MHR. In addition, it is the parent company ofas a related party
the Asset Manager.
4. OtherUpon consultation with Mori Building Co., Ltd., the following appraisal values were decided to be
the revised amounts.
Appraisal value by Japan Real Estate Institute concerning continuous monthly rents
Leased property

ARK Mori Building

Roppongi Hills Mori Tower

Leased floor

Appraisal value

13th floor

26,630,406 yen

12th and 22nd floors

51,282,093 yen

23rd and 25th floors

55,505,288 yen

4th and 15th, 24th floors

73,868,425 yen

25th floor

45,894,722 yen

5. Procedures Concerning Transactions with Related Party, etc.
To comply with applicable laws and regulations and with the asset management agreement, as
well as to prevent the interests of MHR from being negatively impacted, the Asset Manager has
conducted adequate procedures pursuant to the Related Parties Transaction Guidelines. In
addition, MIM will deliver a written statement to MHR, pursuant to the Investment Trusts Act.
6. Outlook
There will be no impact on MHR’s forecasts of financial results for the fiscal period ending July
2020 (February 1, 2020 to July 31, 2020) and the fiscal period ending January 2021 (August 1,
2020 to January 31, 2021).
MHR’s website address is https://www.mori-hills-reit.co.jp/en/

3