September 13, 2019
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: Ryosuke Kanazawa
Chief General Manager andGeneral Manager of Planning Department
TEL: +81-3-6234-3234
MHR Announces Transaction with a Related Party(Mori Building Ryutsu System Co., Ltd.) (Laforet Harajuku (land))Mori Hills REIT Investment Corporation (hereafter “MHR”) announced that Mori Building
Investment Management Co., Ltd. (hereafter “the Asset Manager”), 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 Trust Act”).
The details are as follows.
1. Transaction Overview
MHR will conclude a Memorandum to revise rent on Business-use fixed-term land leaseagreement with lessee, Mori Building Ryutsu System Co., Ltd. as below for the revision of themonthly rent of Laforet Harajuku (land) concluded with Mori Building Ryutsu System Co., Ltd..
(1)

Leased property: Laforet Harajuku (land)(2)

Leased area

: 2,565.06m2(3)

Lessee: Mori Building Ryutsu System Co., Ltd.

(4)

Monthly rent before change: 104,900,000 yen(5)Monthly rent after change: 111,300,000 yen(6)Planned date of change: October 1, 2019(7)

Planned date of execution: September 30, 201912. Overview of Related Party, etc.
Name

Mori Building Ryutsu System Co., Ltd.

Location

1-9-13 Jingumae, Shibuya-ku, Tokyo

Representative

Shingo Tsuji, President & CEO

Scope of business

Commercial developer primarily involved in management andconsulting of shopping center (Laforet Harajuku) and multi-purpose
hall (Laforet Museum)

Capital1,500 million yen (as of September 13, 2019)

Established

July 3, 1986

Relationship with MHR
and the Asset Manager

Morikiyo Co., Ltd., the parent company of Mori Building Co., Ltd.,
which is the wholly owning parent company (100% stake) of theAsset Manager, and thus constitutes a related party, etc. as definedin the Investment Trust Act.

3. OtherUpon consultation with Mori Building Ryutsu System Co., Ltd., the following appraisal values
were decided to be the revised monthly rents.
Appraisal value by Japan Real Estate Institute concerning continuous monthly rents (landrent)
Appraisal value

111,300,000 yen

Appraisal date

September 1, 2019

4. 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. Inaddition, the Asset Manager will deliver a written statement to MHR, pursuant to theInvestment Trust Act.
5. Outlook
For the forecast of business results, please refer to the “Financial Report for the Twenty-sixth
Fiscal Period Ended July 2019” separately announced today.
This press release was distributed to the Kabuto Club (the press club of the Tokyo Stock
Exchange), the Ministry of Land, Infrastructure, Transport and Tourism Press Club, and theMinistry of Land, Infrastructure, Transport and Tourism Press Club for Construction
Publications.
MHR’s website address is https://www.mori-hills-reit.co.jp/en/2