[For Translation Purposes Only]

September 17, 2024

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.
Masaomi Katayama, President & Chief Executive Officer
Inquiries: Hiroyuki Masuko
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Acquisition of Trust Beneficial Interest in Domestic Real Estate
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 a property (the “Acquisition”), as described below.

1.

Summary of Asset to Be Acquired

Property Name

hotel androoms Shin-Osaka

Use

Hotel

Scheduled Dateof Purchase andSales Agreement
September 20,2024

Scheduled Dateof Acquisition

SellerOctober 1,
2024

DaibanHotel One
GodoKaisha

Presence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note 1)

Yes(Note 2)

4,230(Note1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note2) The brokerage involved in the acquisition is not considered a related party under the Investment Trust Act.

The above property to be acquired is referred to hereinafter as the “Asset to be Acquired.”2.

Reasons for the Acquisition
The Fund determined that the Acquisition 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 theFund’s Articles of Incorporation.
The demand for accommodation and tourism in Japan is on an upward trend, and the government has announced
that in 2024, the number of international visitors to Japan will be 35 million and the travel consumption amountwill reach a record high of 8 trillion yen (Note 1) .
The total number of overnight guests (including Japanese) from January to June 2024 in Osaka , where the Assetis located, was 26.79 million (Note 2) , rising significantly by 16.6% from the pre-COVID level in 2019 (Note 2) and by
21.0% from 2023 (Note 2) . This increase rate is far above the national average (+6.8% vs. 2019 and +10.0% vs. 2023
(Note 2) ). Moreover, the “EXPO 2025, Osaka, Kansai, Japan” will start on April 13, 2025, and we expect further growthin the market.
With the acquisition of the Asset, the Fund will hold 7 properties in the hotel sector and the amount allocated tothe sector will be 24.5 billion yen(Note 3) , representing 2.2% of all sectors (Note 3) . As the hotel properties are located in－ １ －tourism-dependent areas, we believe that the thriving market as stated above will continue to drive the hotel sector
forward.
Please refer to 3. Summary of Asset to Be Acquired below for details of the reasons for ac quisition of Asset tobe Acquired.
(Note 1) Source: Minutes of the 24 th meeting of the Ministerial Council on the Promotion of Japan as a Tourism -Oriented Country(Note 2) Source: Compiled and calculated by Nomura Real Estate Asset Management Co., Ltd. based on the Overnight Travel Statistics
Survey announced by the Japan Tourism Agency on March 29, April 30, May 31, June 28, July 31 , and August 30, 2024.
(Note 3) Based on (planned) acquisition price3.

Summary of Asset to Be Acquired
hotel androoms Shin-Osaka＜Reasons for the Acquisition of the Asset＞
The main strengths of the Asset to be Acquired are as follows.
・The Asset is located a 6-minute walk from Shin-Osaka Station on the JR Shinkansen Line as a gateway ofOsaka. As a transportation hub for the Kansai region, leisure demand from a wider area is expected including
Kobe and Kyoto. Furthermore, many branch offices of large companies which operate nationwide arelocated in the area and we can expect strong business demand.
・The Asset has 120 rooms of various types ranging from approx. 14 ㎡ to 37 ㎡ in size, with a wellbalanced room composition of single type (52.5%) and twin type or more(47.5%). The composition of guest
rooms is suitable to capture leisure demand including inbound tourists, such as the fact that approx. 4 7.5%of the rooms can accommodate more than 2 guests, as well as current diverse demand in business. The
facility and services are differentiated from surrounding hotels, including a large public bath, a uniquebreakfast service mainly of Japanese dishes offered at a breakfast venue built under a concept of soba
restaurants, and free late night snacks.
(Note) Ratios based on number of rooms

・The Asset is operated by Solare Hotels and Resorts Co., Ltd. which has a track record of operating 44 hotels
nationwide (as of August 31, 2024 according to its webpage), and stable operation can be expected with its
operational expertise of hotel chains.

＜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)
Building

hotel androoms Shin-Osaka
Beneficial interest in a trust in which a real estate is entrusted
4-12 (and one other parcel of land), 1-chome, Nishimiyahara, Yodogawa-ku,
Osaka City, Osaka
4-28, 1-chome, Nishimiyahara, Yodogawa-ku, Osaka City, Osaka
6-minute walk from Shin-Osaka Station on the JR Tokaido Shinkansen,
Sanyo Shinkansen, Tokaido Main Line and Osaka East Line.
6-minute walk from Shin-Osaka Station on the Osaka Metro Midosuji Line
July 10, 2018
Hotel
Nine-floor steel-framed reinforced structure with a flat roof、Reinforced
concrete structure with alloy plated steel, one story
ALPHA WORKS Co., Ltd.
Ichiken Co., Ltd. Kansai Branch
Kakunin Service Inc.
861.35 ㎡
3,340.90 ㎡－ ２ －Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note 3)

Ownership
Ownership
100%(Note 2)
400%
None
THE DAI-ICHI BUILDING CO., LTD

Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)

None
None
6.3% (Based on the Earthquake PML Appraisal Report as of August 2024 by(Note 4)
Sompo Risk Management Inc.)
In the event of transfer, etc. of all or part of the land, building or trust
beneficial interest pertaining to the Asset to be Acquired to a third party, theNotes
tenant is to be given preferential negotiating rights for a certain period oftime regarding said purchase.
Anticipated Acquisition Price¥4,230 million¥5,330 million (Based on the capitalization approach as of August 1, 2024)
Appraisal Value and Method(Appraiser: JLL Morii Valuation & Advisory K.K..)
Appraisal NOI (Note 5)¥236 million
Leasing Status (As of May 31,2024) (Note 6)
Total Number of Tenants
1
Name of Tenant
Solare Hotels and Resorts Co., Ltd.
Hotel Operator
Solare Hotels and Resorts Co., Ltd.
Undisclosed (fixed-rent-plus-variable-rent type contract）
Of which, hotel
Undisclosed
fixed rent
Total Rental Income (Annual)In addition to the fixed rent, the variable rent
Of which, hotel is added by applying the following formula.
variable rent
(Accommodation revenue – fixed amount)× predetermined rate
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
3,353.68㎡
Total Leasable Floor Space
3,353.68㎡
AugustAugustAugustAugustAugustHistorical Occupancy Rates
2020
2021
2022
2023
2024
(Note 7)100.0%
100.0%
100.0%
100.0%
100.0%(Note 1) Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Floor Area
The applied building coverage ratio is 100% because the Asset is a certified fireproof building in a fire prevention zone and is located at acorner designated by the Specified Administrative Agency.
(Note 3) Property Management Company
Property Management Company refers to the one that is scheduled to be appointed after acquisition.
(Note 4) 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 theexpected recovery cost to the replacement cost.
(Note 5) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with August 1,
2024 as the appraisal date.
(Note 6) Leasing Status“Name of Tenant,” “Total Rental Income,” “Occupancy Rate,” “Total Leased Floor Space,” and “Total Leasable Floor Space” are basedon the fixed-term lease agreement that is expected to go into effect on the date of acquisition.
(Note 7) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller.

－ ３ －4.

Profile of Seller of the Asset to be Acquired

Company NameHead Office
Representative
Principal BusinessCapital
Established
Net Assets
Total Assets

Daiban Hotel One Godo Kaisha
Within TOKYO UNITED GROUP, 9-15, 2-chome, Yotsuya, Shinjuku-ku, TokyoManaging Partner, Daiban Hotel One General Incorporated Association
1. Acquisition and holding of real estate
2. Leasing and management of real estate
3. Acquisition, holding and disposal of real estate trust beneficial interests
4. Any other business incidental or related to the businesses listed in each of the preceding
items
10,000 yen
April 17, 2023
Not disclosed since the seller’s consent for disclosure has not been obtained
Not disclosed since the seller’s consent for disclosure has not been obtained

Major Shareholder
Not disclosed since the seller’s consent for disclosure has not been obtained(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller
Neither the Fund nor the Asset Management Company has any capital relationship withthe said company. In addition, any persons or companies associated with the Fund or theCapital
Asset Management Company have no notable capital relationship with those associatedwith the relevant company.
Neither the Fund nor the Asset Management Company has any personal relationship withthe said company. In addition, any persons or companies associated with the Fund or thePersonal
Asset Management Company have no notable personal relationship with those associatedwith the relevant company.
Neither the Fund nor the Asset Management Company has any notable transactions withthe said company. In addition, any persons or companies associated with the Fund or theTransactions
Asset Management Company have no notable transactions with those associated with therelevant company.
The said company does not fall under the definition of a related party of the Fund or theRelated Party Asset Management Company for the accounting purpose. In addition, any persons or
Statuscompanies associated with the said company does not fall under the definition of a related
party of the Fund or the Asset Management Company for the accounting purpose.
5.

Status of Owner of the Asset to be Acquired
The Asset to be Acquired is not acquired from parties who have special interests in the Fund or the AssetManagement Company.

6.

Transactions with Related Parties
There is no transaction with related parties.

7.

Form of Payment, etc.
Regarding the Acquisition, on the scheduled date of acquisition, the Fund will pay the seller the entire purchaseprice of the Asset to be Acquired in a lump sum by using cash on hand and borrowings.

8.

Schedule for the Acquisition
September 20,2024
October 1, 2024

Conclusion of a purchase agreement for the acquisition of the Assets
Acquisition of the Assets to be Acquired－ ４ －9.

Outlook
There is currently no revision to the forecast for the fiscal period ending February 28, 2025 (September 1, 2024 toFebruary 28, 2025) because the impact of the Transaction on the management status of the entire portfolio isminimal.

－ ５ －10. Appraisal Summary
Property Name

hotel androoms Shin-OsakaAppraisal ValueAppraiser
Appraisal Date

¥5,330,000,000
JLL Morii Valuation & Advisory K.K.
August 1, 2024
(Yen)
Item

Capitalization Approach Price
Price Calculated by the Direct Capitalization
Approach(1) Operating Income
Total Potential Income, sum of (a) to(d)Amount orPercentage
5,330,000,000

Undisclosed
Undisclosed
Undisclosed(b) Utilities Costs Income

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed(d) Other Income
Losses due to Vacancies, etc.
Bad Debt Loss
(2) Operating Expenses
Maintenance Costs
Utilities Costs
Repair Costs
Property Management Fees
Advertisement for LeasingTaxes
Insurance Premium
Other Expenses(3) Net Operating Income from Leasing Business(NOI＝(1)-(2))

Undisclosed(5) FF&E Reserve

Undisclosed(6) Capital Expenditure Reserve

Undisclosed(7) Net Cash Flow (NCF＝(3)+(4)-(5) -(6))

230,639,000

Price Calculated by the Discounted Cash Flow
Approach

Discount Rate

Terminal Capitalization Rate
Cost Approach Price(Undisclosed)

236,236,000(4) Profit through Management of Temporary
Deposits, etc.

(8) Discount Rate

Emphasized price calculated by the discounted cash flow approachand considered after comparison against price calculated by thedirect capitalization approach

5,600,000,000(a) Rental Income including
Common Service Expenses(c) Parking Lot IncomeGrounds(Undisclosed)

Calculated by incorporating the risk of fluctuations in income andprincipal, based on the discount rate, and with reference to the4.1%
capitalization rate of J-REITs that are recognized as having a certain
degree of normality with the Property.
5,220,000,000
Calculated by comprehensively considering investor surveys, REIT
case studies, market trends in the transaction market, etc., after taking
into account local and individual risk factors such as location, building
3.9% conditions, contract terms, and rights, etc. of the Property, with a basecapitalization rate of an A-class building located in the Marunouchi andOtemachi areas of Tokyo, and including trends in the interest rates oflong-term government bonds, etc.
Calculated based on capitalization rate by considering the uncertainty
4.3% of the forecasted fluctuation of net cash flow at a future point in time,
future deterioration of the building, and risks associated with sale
2,500,000,000

Ratio of Land

79.0%

Ratio of Building

20.1%

Ratio of FF&E

0.9%

－ ６ －Matters Noted in Reconciliation of Indicated Valueand Determination of Appraisal Value

The neighborhood where the Property is located has access to multiple train lines, including
JR Shin-Osaka Station and the Osaka Metro Midosuji Line, and exceptionally well located asa hotel. The building was completed in 2018, and is superior to alternative competitive
properties in terms of building quality and other factors. The rooms, mainly standard double
and standard twin rooms, meet the needs of guests traveling alone and in groups.
Differentiating factors include facilities such as a large public bath and wireless LAN in all
rooms, and services such as a Japanese buffet breakfast. In view of the above factors, theProperty is not recognized as presenting particular risk of income fluctuation and has been
judged to possess a standard level of competitiveness within its supply demand zone.

(Note) The information that is subject to a confidentiality obligation to the lessee and information that can be used to calculate the said information
is included. Therefore, that information is not disclosed because disclosure of such information may cause a disadvantage to NMF due to abreach of confidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Acquisition

Exhibit 2

Photos and Map of the Asset to be acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ ７ －Exhibit 1
Overview of the Portfolio after the Acquisition（¥ million）
Area
SectorGreater Tokyo AreaOthers(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

Acquisition Price(%)(by Sector)(Note 2)

Office379,175

65,100444,275

39.9

Logistics

237,992

3,460

241,452

21.7

Residential(including healthcare
facilities)

189,833

27,934

217,767

19.6

Retail111,768

67,890179,659

16.1

Hotels2,360

22,141

24,501

2.2

Others

4,900―

4,9000.4(Anticipated) Total
Acquisition Price(by Area)

926,029

186,526

1,112,555

100.0

Investment Ratio (%)(Note 2)

83.2

16.8

100.0

(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 and their 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 toexactly 100%.

Exhibit 2Photos and Map of the Asset to be acquired
hotel androoms Shin-Osaka

Guest room

Fuji-no-Yu

SOBA AND CAFE SHIJUHACCHA HYAKUNEZUMI