September 30, 2019
To all concerned parties:Investment Corporation
MCUBS MidCity Investment Corporation
Representative: Katsuhiro Tsuchiya, Executive Director
TSE Code: 3227, LEI Code: 353800WZPKHG2SQS1P32
URL: https://www.midcity-reit.com/en/

Asset Management Company
Mitsubishi Corp.‐ UBS Realty Inc.
Representative: Katsuji Okamoto, President & CEO
Inquiries:
Katsura Matsuo, Head of Office Division

TEL: +81-3-5293-4150

Notice of Conclusion of Fixed-Term Building Lease Renewal Agreement
on AEON MALL Tsudanuma
MCUBS MidCity Investment Corporation (hereafter "MCUBS MidCity") has entered into a fixed-term building
lease renewal agreement with AEON RETAIL Co., Ltd., one of the major tenant of MCUBS MidCity, as follows.

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Background of conclusion of the Renewal Agreement(1) Environment surrounding the AEON MALL Tsudanuma"AEON MALL Tsudanuma" (Narashino City, Chiba) (hereafter "the Property") owned by MCUBS MidCity isa retail property that is directly connected to “Shin-Tsudanuma” station on the Shin-Keisei Line.
The population of Narashino City and the neighboring Funabashi City has been consistently increasing since2011. At the same time, the population of those with purchasing power is high in terms of income and age,and hence the potential for retail property is high. Also, in March 2016, Narashino City formulated the "Policy
for Considering Community Development around JR Tsudanuma Station" and designated the area connecting
JR “Tsudanuma” station and Shin-Keisei Line "Shin-Tsudanuma" station as the entrance to the city front,
which promotes redevelopment by the private sector. As a result, redevelopment around the station isexpected in the future.
(2) Background to conclusion of the Renewal Agreement
AEON RETAIL Co., Ltd. (hereafter "the Tenant"), a tenant of the Property, regards the Property as a core
store in the Kanto region. While the Tenant is considering medium-and long-term strategies about theProperty, in response to the intention that the extension of the contract with MCUBS MidCity is essential forplanning and implementing large-scale investments such as large-scale renewals, MCUBS MidCity has
decided to conclude a renewal agreement with the Tenant.
The specific plans for the renewal contemplated by the Tenant have not yet been determined, but MCUBSMidCity will bear part of the construction cost for maintaining and improving the value of property in linewith the renewal. However, the amount of the investment will be added as "investment rent" in addition tothe annual rent, and the whole amount will be collected during the renewal contract period.

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2.

Main contents of the Renewal Agreement
Contents of the present agreement
Type ofFixed-term building lease contract
Contract
Contract
Sep. 30, 2003 to Sep. 29, 2023 (20 years)
PeriodTotal¥ 1,452 million
Annual Rent
Revision of Consultation every three years
Rent3.

Contents of the renewal agreement
Fixed-term building lease contract
Sep. 30, 2023 to Sep. 29, 2043 (20 years)¥ 1,524.6 million
Revisions are not allowed for ten years(discussions are held every three years after the 10th year)

Early
Setting penalties according to years elapsed
Termination

Ten-year non-cancelable

RentalArea

101,210.44 m2

96,033.49 m2(28.7% of total rental area)* The Contract Area shall be changed from the actual measurement
to the official register at the time of the re-contract.

(Cancellation penalty is set according to the number of years
elapsed from the 10th year onward)

Outlook
Since the change in the basic monthly rent due to the conclusion of this renewal agreement applies from 2023,
there will be no impact on the business results for the fiscal period ending December 31, 2019 (the 27th fiscalperiod: July 1 to December 31, 2019) and the fiscal period ending June 2020 (the 28th fiscal period: January 1to June 30, 2020), and the outlook of the business results will remain unchanged.

This English language release is for informational purposes only, and the Japanese language release should be referred to as the original.

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