November 5, 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 Regarding Acquisition and Leasing of Trust Beneficiary Interests in
Domestic Real Estates (Acquisition of Two Office Properties and One Hotel Property)
MCUBS MidCity Investment Corporation (hereafter “MCUBS MidCity”) announces that, its asset managementcompany, Mitsubishi Corp.- UBS Realty Inc. (hereafter the “Asset Management Company”), decided today toacquire and lease properties, as follows (the acquisition of the assets to be acquired will hereafter be referred toas the “Acquisition”).
1.

Overview of Acquisition (Assets to be Acquired)
Osaka YM Bldg.

East Square Tokyo

Type of Specified Asset

Trust beneficiary interestin real estate

Trust beneficiary interestin real estate

Hotel Vista
Premio Tokyo
Trust beneficiary interestin real estate

Location

Fukushima-ku, Osaka-shi

Koto-ku, Tokyo

Minato-ku, Tokyo－

Anticipated Acquisition
Price (Note 1) (A)¥6,310 million¥9,500 million¥11,200 million¥27,010 million

Appraisal Value (Note 2) (B)¥7,060 million¥10,200 million¥12,000 million¥29,260 million

Difference between
Anticipated Acquisition
Price and Appraisal Value(B-A)+¥750 million+¥700 million+¥800 million+¥2,250 million

NOI Yield (Note 3)

5.0%

4.9%

3.9%

4.5%

NOI Yield after
Depreciation (Note 4)

4.7%

4.2%

3.5%

4.0%

Agreement Execution Date

November 5, 2019

November 5, 2019

November 5, 2019 (Note 5)−

Anticipated Acquisition
Date (Note 6)

November 20, 2019

November 20, 2019

November 22, 2019−

A domestic
non-financial
corporation

A domestic
non-financial
corporation

A domestic non-financial
corporation−

Property Name

Seller (Note 7)

Total / Average－

Notes:
1.
“Anticipated Acquisition Price” indicates the sale price of respective Assets to be Acquired as stated in the trust beneficiary interest transfer agreement (excluding acquisition
expenses, property taxes, city planning taxes and consumption taxes, etc.). The same shall apply hereinafter.
2.
“Appraisal Value” indicates the appraisal value as of August 1, 2019 regarding Hotel Vista Premio Tokyo and as of October 1, 2019 regarding Osaka YM Bldg. and East SquareTokyo, respectively. The same shall apply hereinafter.
3.
“NOI Yield” indicates the ratio of the appraisal NOI (under the direct capitalization method) to the Anticipated Acquisition Price as of August 1, 2019 regarding Hotel Vista Premio
Tokyo and as of October 1, 2019 regarding Osaka YM Bldg. and East Square Tokyo. It is obtained by using the following formula. The same shall apply hereinafter.
NOI Yield = Appraisal NOI ÷ Anticipated Acquisition Price“Average NOI Yield” is calculated using the weighted average of the NOI Yield of respective Assets to be Acquired based on the anticipated acquisition price.
4.
“NOI Yield after Depreciation” indicates the ratio of NOI (under the direct capitalization method) after depreciation to the Anticipated Acquisition Price of respective Asset to be
Acquired and is obtained by using the following formula. “NOI after Depreciation” is calculated by deducting depreciation and amortization costs from Appraisal NOI.
NOI Yield after Depreciation = (Appraisal NOI - depreciation*) ÷ Anticipated Acquisition Price“Average NOI Yield after Depreciation” is calculated using the weighted average of the NOI Yield after Depreciation of respective Assets to be Acquired based on the anticipatedacquisition price.
*Depreciation for the Assets to be Acquired is calculated by using the depreciation rates in proportion to the useful life under the straight-line method, as is the case for the otherassets owned by MCUBS MidCity. The same shall apply hereinafter.
5.
With respect to Hotel Vista Premio, MCUBS MidCity will acquire the trust beneficiary interest for this property by succeeding the rights holder title as the purchaser as defined in
the trust beneficiary interest sales and purchase agreement concluded with the seller from a domestic non-financial corporation on November 21, 2019 or the day separately
agreed. Regarding Hotel Vista Premio, Agreement Execution date indicates the execution date of status transfer agreement.
Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

1

6.

7.

2.

In the case that the Pricing Date indicated in “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” announced today is November
14, 2019, the anticipated acquisition dates of Osaka YM Bldg. and East Square Tokyo will be changed to November 21, 2019. In the case that the Pricing Date is November 15,
2019, the anticipated acquisition dates of Osaka YM Bldg. and East Square Tokyo will be changed to November 22, 2019. Also, in the case that the Pricing Date is November 18,
2019, the anticipated acquisition dates of all Osaka YM Bldg. and East Square Tokyo will be changed to November 25, 2019.
The names of the sellers are not disclosed because the sellers' approval has not been obtained. None of the sellers has any special interest in MCUBS MidCity or the AssetManagement Company.

Reason for the Acquisition and Leasing
MCUBS MidCity is committed to managing assets from a medium- to long-term perspective to assure
stable revenues and steady growth of assets under management and emphasizes investment in the threemajor metropolitan areas (the Tokyo metropolitan area, the Osaka metropolitan area and the Nagoya
metropolitan area) (Note 1).
All the Assets to be Acquired are competitive in terms of location, quality and profitability. MCUBSMidCity expects to be able to further enhance portfolio profitability drawing on our expertise in internal
growth. All the Assets to be Acquired are acquired through exclusive negotiation leveraging our advantages.
Regarding leasing of tenants for Assets to be Acquired, it is determined to meet the tenant selection
standards indicated on annual report, submitted on September 26, 2019. MCUBS MidCity will improve rent
revenues and occupancy rates based on the portfolio management policy.
For details of the individual Asset to be Acquired, please refer to “3. Details of the Assets to be Acquired”
below (Note 2).
Before Acquisition

Assets to be
Acquired

After Acquisition (Note 3)¥260.6 billion¥27.0
billion¥287.6 billion

4.5%

4.5%

4.5%

3.6%

4.0%

3.6%

(As of the end of the Fiscal Period
ended June 30, 2019)

Asset Size
(Based on (anticipated)acquisition price)

Average NOI
Yield
Average NOI
Yield after
Depreciation
Difference
between
AnticipatedAcquisition
Price andAppraisal Value
NAV per unit+¥16.4 billion+¥18.6 billion¥93,715¥96,391

Area
Diversification(Based on (anticipated)acquisition price)

Asset Type
Diversification(Based on (anticipated)acquisition price)

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

2Notes:1.
The “Tokyo metropolitan area” represents Tokyo, Kanagawa, Chiba and Saitama; the “Osaka metropolitan area” represents Osaka, Kyoto and Hyogo; and the “Nagoya
metropolitan area” represents Aichi. The same shall apply hereinafter. In addition, government-designated cities and other major cities or their equivalent outside of the threemajor metropolitan areas, as well as overseas cities, may be collectively referred to as “other areas”. The same shall apply hereinafter
2.
Explanations of the descriptions in each column for the overview of the respective Assets to be Acquired, described in "3. Details of the Assets to be Acquired” below are as
follows:
Among the descriptions about the Assets to be Acquired, “Land (Site Area)”, “Building (Structure/Floors)”, “Building (Total Floor Area)”, “Building (Use)”, and “Building(Completion Date)” are based on what is indicated in the registry. “Land (Zoning)” indicates the types of zoning as defined in Article 8-1-1 of the City Planning Act (Law No.100
of 1968, as amended). “Land (Floor-Area Ratio)” represents the ratio of the total floor area of a building to the site area, as stipulated in Article 52 of the Building Standards Act(Law No. 201 of 1950, as amended) (the "Building Standards Act"), and indicates the figure specified in city planning in accordance with the zoning, etc. “Land (Building-to-Land
Ratio)” represents the ratio of the building area to the site area, as stipulated in Article 53 of the Building Standards Act and indicates the figure applicable for each individual
real estate in trust in accordance with the zoning, etc. With regard to the “Overview of Building Condition Evaluation (PML),” PML (Probable Maximum Loss) is defined as“probable loss for a building with a recurrence interval of 475 years” based on the risk curve showing the relationship between loss and annual exceedance probability as
calculated by Engineering and Risk Services Corporation and OYO RMS Corporation. The probable loss for a building with a recurrence interval of 475 years represents “loss of
10% of exceedance probability over 50 years” under the BELCA's guidelines.
“Overview of Leasing” indicates the content of the lease agreement effective as of the end of August 2019 regarding the real estate in trust for each of the Assets to be Acquired,based on the figures and information provided by the sellers of each asset. “Overview of Leasing (Rentable Area)” indicates the rentable area of the building of the real estate intrust for each of the Assets to be Acquired (or total rentable area of respective buildings in the case where there are multiple buildings for each property; limited to the rental
spaces, and not including the areas of warehouses and parking lots, etc. However, with regard to Hotel Vista Premio, it includes the common area.). “Overview of Leasing (Rental
Area)” indicates the total area presented in the lease agreements, etc. with end tenants that are effective as of the end of August 2019 (limited to the rental spaces, and notincluding the areas of warehouses and parking lots, etc. However, with regard to Hotel Vista Premio, it includes the common area.). “Overview of Leasing (Total Tenants)” does
not include the number of the end tenants that leases warehouses, and parking lots, etc. only in the calculation. “Overview of Leasing (Total Annual Rent)” and “Overview ofLeasing (Security Deposit/Guarantee, Etc.)” indicate the total amount of the monthly rent, monthly common area charge, parking lot usage fee, warehouse rent and facility usage
fee, etc. stated in the lease agreements executed with end tenants that are effective as of the end of August 2019, multiplied by 12, and the balance of security deposits andguarantees (including those for the rental spaces, parking lots and warehouse lots, etc.), with amounts less than thousand yen rounded down, respectively.
3.
Figures “After Acquisition” indicate estimates that are calculated based on certain assumptions and may vary from the actual values.

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

33. Details of the Assets to be Acquired[Osaka YM Bldg.]
Type of Specified Asset
Location (Indicated for
Residence)
Site Area
Land

Building

Trust beneficiary interest in realestateAnticipated Acquisition Price¥6,310,000 thousand

Anticipated Acquisition Date

November 20, 20197-15-26, Fukushima, Fukushima-ku,
Osaka-shi, Osaka

Appraisal Value
Appraiser

2,869.79 ㎡

ZoningCommercial zone
Type of Ownership Fee simple
Floor-Area Ratio/
Building-to-Land
505.14％ (Note 1) / 90％ (Note 2)
Ratio

Overview of
Building
Condition
Evaluation¥7,060,000 thousand
Japan Real Estate Institute

Date ofPreparation ofReportEvaluation
Company

October, 2019
SOMPO RISK MANAGEMENT
Inc.

Short-term
Repair Cost

¥0¥513,720 thousand

Structure/ Floors

RC/SRC with flat roof, B2F/12F

Long-term
Repair Cost

Total Floor Area

16,533.95 ㎡

PML

6.0%

Type of Ownership Fee simple

Rentable Area

9,957.53 ㎡

Use

Office, parking lot, shop

Rental Area

9,957.53 ㎡Completion Date

March 21, 1991

Property Management
Consignee
Building Management
Consignee
TrusteeSpecial Notations

Overview ofLeasing

Kanden Properties Co., Ltd.
Kanden Properties Co., Ltd.

Occupancy Rate
Total Tenants
Total Annual Rent

100.0% (Note 3)
25 (Note 3)¥387,398 thousand

Mitsubishi UFJ Trust and Banking
Security Deposit¥292,401 thousand
Corporation/ Guarantee, Etc.
Given that a portion of the property is registered as open public space, an easement was obtained for thefloor-area ratio. Such public open spaces shall be available for public passage and must be properly
managed and maintained.

Notes:
1.
While the original Floor-Area ratio applicable to the land of this property is 400%, a ratio of 505.14% is applied to the land of this property given that the Sogo Sekkei Seido(Integrated Architecture System) is applicable for the building.
2.
While the original Building-to-Land ratio applicable to the land of this property is 80%, a ratio of 90% is applied to the land of this property because the building is located on acorner lot.
3.
Data as at August 31, 2019. However, given that a termination notice (effective as of April 30, 2020) has already been received, the number of tenants and occupancy after thetermination is expected to be 24 and 67.8%, respectively.

In the decision-making process to acquire this property, the following
aspects were appreciated.
(1) Highly appealing property to tenants
・Standard floors with approx. 245 tsubo floor area and high layout
efficiency, located at Fukushima area where majority of buildings
are small scale buildings
・Renovation works for common area implemented in 2008
(2) Potential upside from internal growth・Supply of new offices in the Osaka area is limited for the time being
・Potential upside due to the gaps in rents(Note) on the back of thefavorable office market(3) Close to Umeda area, in which redevelopment projects haverecently been promoted
・Location in an area of superior transportation access, a 3-minute
walk from Fukushima Station on the JR Line, a 6- minute walk from

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

4

Fukushima Station on the Hanshin Electric Railway Line, and one
station away from the Umeda area in central Osaka
・With its location close to Umeda area, in which redevelopment
projects have recently been promoted, enhancement of the relative
superiority as office area can be expected
Note: “Gaps in rents (Rent Gap)” indicates the difference between the concluded rent and the market rent(including common service expenses) which refers to the estimated rent for new contracts stated in CBRE K.K.’s
market report prepared at the request of the MCUBS MidCity.

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

5

[East Square Tokyo]
Type of Specified Asset

Trust beneficiary interest in real estate

Location (Indicated for
Residence)

1-6-35, Shinsuna, Koto-ku, Tokyo

Land

Building

Anticipated Acquisition Price¥9,500,000 thousand

Anticipated Acquisition Date

November 20, 2019

Appraisal Value

Site Area

8,926.00 ㎡

ZoningType ofOwnership
Floor-Area Ratio/
Building-to-Land
Ratio

Exclusive industrial zone

Structure/ Floors¥10,200,000 thousand
The Tanizawa Sōgō
Appraisal Co., Ltd.

Appraiser
Date of Preparationof Report

October, 2019

Evaluation
Company

Tokio Marine & Nichido
Risk Consulting Co., Ltd.

Short-term
Repair Cost

¥0

RC/SRC with flat roof, 7F

Long-term
Repair Cost

¥671,907 thousand

Total Floor Area

18,051.08 ㎡

PML

Type ofOwnership

Fee simple

Rentable Area

12,208.42 ㎡

Use

Office, electrical room, parking lot

Rental Area

9,888.58 ㎡Completion Date

November 9, 1989

Property Management
Consignee
Building Management
ConsigneeFee simple

Overview of
Building
Condition
Evaluation

200% / 60%

Overview ofLeasingXYMAX ALPHA Corporation.

3.9%

Occupancy Rate

81.0%

Total Tenants

13

XYMAX ALPHA Corporation.

Total Annual Rent

¥609,933 thousand

Trustee

Sumitomo Mitsui Trust Bank, Limited

Security Deposit/ Guarantee, Etc.

¥375,461 thousand

Special Notations

Not applicable

In the decision-making process to acquire this property, the following
aspects were appreciated.
(1) Expected Stable demand from tenants
・Located in an area in which a number of major companies areheadquartered. Expected stable demand as it may cater to needs ofthe financial and software manufacturing sectors to use as a
backup office or a development center, respectively
・Number of employees in the area is increasing(2) Property with high-level quality attracting tenants attachingimportance on size
・Property with sufficient office space of approx. 600 tsubo standard
floor and with superior specifications, such as sufficient weightcapacity for office use, attracting potential tenants attachingimportance on size
・Well-prepared for Business Continuity Planning with emergency
generators equipped(3) Convenient location
・Located in the Toyocho area, approximately 4km east from JR
Tokyo Station, and good access to Otemachi and Nihombashi about
a 10-minute Tozai Line ride・Ability to meet needs from tenants using vehicles in business activities with approximately 100 flatparking spaces
Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

6

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

7

[Hotel Vista Premio Tokyo]
Type of Specified Asset

Trust beneficiary interest in real estate

Location (Indicated for
Residence)

4-3-2, Akasaka, Minato-ku, Tokyo

Land

Building¥11,200,000 thousand

Anticipated Acquisition Date

November 22, 2019

Appraisal Value

930.29 ㎡

ZoningIndustrial zone, category 2 residentialzone
Fee simple

Overview of
Building
Condition
Evaluation

441.57% (Note 1) / 94.15% (Note 2)¥12,000,000 thousand
The Tanizawa Sōgō
Appraisal Co., Ltd.

Appraiser
Date of Preparationof Report

Site Area

Type ofOwnership
Floor-Area Ratio/
Building-to-Land
Ratio

Anticipated Acquisition Price

August, 2019

Evaluation
Company

DAIWA REAL ESTATEAPPRAISAL CO., LTD.

Short-term
Repair Cost

¥0

Structure/ Floors

Main Building: S with flat roof, 11F
Annex: Zinc-coated steel-roofed steelframed flat building

Long-term
Repair Cost

Total Floor Area

4,248.19 ㎡ (including Annex)

PML

Type ofOwnership

Fee simple

Rentable Area

4,236.46 ㎡

Use

Main Building：Hotel, shop
Annex：Parking lot

Rental Area

4,236.46 ㎡Completion Date

April 30, 2018

Property Management
Consignee
Building Management
Consignee

FUJITA BUILDING MAINTENANCE CO.,LTD.
FUJITA BUILDING MAINTENANCE CO.,LTD.

Trustee

Sumitomo Mitsui Trust Bank, Limited

Special Notations

Not applicable

Overview ofLeasing¥314,806 thousand (Note
3)

5.2%

Occupancy Rate100%

Total Tenants2

Total Annual Rent

Not disclosed (Note 4)

Security Deposit/ Guarantee, Etc.

Not disclosed (Note 4)

Notes:
1.
The property is located on both 500% and 300% Floor-Area Ratio zones. In addition, permissible Floor-Area Ratio is determined on a weighted average basis that reflects the
proportions of the two sectors.
2.
The original building-to-land ratio applicable to land located within an area that is zoned for commercial use and Category 2 residential zones are 80% and 60% respectively.
Because the building of the Property is a fire-resistant building located within a fire protection district and located on a corner lot, the ratio of 100% and 80% is applied to theland of this property. In addition, permissible Floor-Area Ratio is determined on a weighted average basis that reflects the proportions of the two sectors.
3.
Because less than 3 years has passed since this building was completed, “Long-term Repair Cost” indicates expenses for repairs projected to be needed over the next 20 years
based on the building condition evaluation report by the evaluation companies. The figures have been rounded down to the nearest thousand yen.
4.
The figures are not disclosed as the approval from tenant has not been obtained. Structure of the lease agreement with fixed rent revenues is defined as a core revenue sourceand secures potential upsides from variable rent if total hotel sales exceed a certain coefficient.

In the decision-making process to acquire this property, the following aspects were appreciated.
(1) Superior location in a 3-minute walk from the major stations in central Tokyo
・Located along Hitotsugi-Dori Avenue in the center of the Akasaka area, within a 3-minute walk from
Akasaka-Mitsuke Station and Akasaka-Station on the Tokyo Metro Lines, respectively
・Akasaka area, one of the areas with the strongest ability to attract visitors in Tokyo, in which
headquarters of a leading media company and others are located and stable demand for hotel rooms
exists(2) Accommodation-specialized hotel, newly-opened in Jun. 2018
・Newly-opened hotel specialized in accommodation with 140 guest rooms, which is able to meet
extensive demand both of business persons and inbound tourists for leisure・Modern designs, with strong competitiveness in the Akasaka area because of cozy, comfortable andlarge guest rooms of approx. 21m2 on average(3) Secured stability mainly based on fixed rent revenue and growth potential supported by ADR (Note)
improvement
・Lease agreement based on the fixed rent, with upsides through variable rent per portion
Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

8

・Operated by Vista Hotel Management, ADR
improvement that can be achieved by pursuing an
optimal guest room unit price, taking location, grade
and room size into consideration.
Note: "Average Daily Rate" indicates the average guest room rate per guest room (average
guest room rate), calculated by the following formula:
ADR = total income from guest room ÷ number of guest rooms soldNote: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

9

4.

Overview of the Sellers
While each of the seller is a domestic non-financial corporation, its name and the details are notdisclosed because the seller’s approval has not been obtained. There are no ties to be specified between
each seller and MCUBS MidCity or the Asset Management Company. Also, there are no ties to be specified
between the related parties/related companies of MCUBS MidCity or the Asset Management Company andthe related parties/related companies of them.

5.

Status of the Property Owners
The acquisition of the asset is not from a party having particular vested interest with MCUBS MidCity or
the Asset Management Company.

6.

Overview of Brokerage
Not applicable regarding Osaka YM Bldg. and East Square Tokyo. With regard to Hotel Vista Premio
Tokyo, the details of the brokerage are not disclosed because the broker’s approval has not been obtained.
There is no capital, personal or business relationships to note between the broker and MCUBS MidCity or
the Asset Management Company. Also, there is no capital, personal or business relationships to note
between the related parties/related companies of MCUBS MidCity or the Asset Management Company andthe related parties/related companies of the broker.

7.

Settlement Method, etc.
MCUBS MidCity will cover the cost of the Acquisition with the funds raised through issuance of new
investment units as announced today in “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units”, new borrowings and cash reserves.
As for the issuance of new investment units and new borrowings, please refer to “Notice Concerning
Issuance of New Investment Units and Secondary Offering of Investment Units” and “Notice Concerning
Debt Financing” announced today, respectively.
With regard to the settlement method, MCUBS MidCity plans to settle the Acquisition by making a single
payment of the entire amount of the acquisition price upon delivery of each property.

8.

Schedule for the Acquisition
Osaka YM Bldg.

Agreement Execution
Date
November 5, 2019

Anticipated Acquisition
Date (Note1)
November 20, 2019

Anticipated Payment
Date (Note1)
November 20, 2019

East Square Tokyo

November 5, 2019

November 20, 2019

November 20, 2019

November 22, 2019

November 22, 2019

Property Name

Hotel Vista Premio Tokyo

November 5, 2019

(Note2)

Notes:
1.
In the case that the Pricing Date indicated in “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” announced today is November
14, 2019, the anticipated acquisition dates of Osaka YM Bldg. and East Square Tokyo will be changed to November 21, 2019. In the case that the Pricing Date is November 15,
2019, the anticipated acquisition dates of Osaka YM Bldg. and East Square Tokyo will be changed to November 22, 2019. Also, in the case that the Pricing Date is November 18,
2019, the anticipated acquisition dates of Osaka YM Bldg. and East Square Tokyo will be changed to November 25, 2019.
2.
With respect to Hotel Vista Premio, MCUBS MidCity will acquire the trust beneficiary interest for this property by succeeding the rights holder title as the buyer as defined in thetrust beneficiary interest sales and purchase agreement concluded with the seller from a domestic non-financial corporation on November 21, 2019 or the day separately agreed.
Regarding Hotel Vista Premio, Agreement Execution date indicates the execution date of status transfer agreement.

9.

OutlookAs for the outlook of the business results for the 27th Fiscal Period (from July 1, 2019 to December 31,2019) and the 28th Fiscal Period (from January 1, 2020 to June 30, 2020) for result of the Acquisition of theAssets to be Acquired, please refer to “Notice Regarding Revision of Business Outlook and Distributions
Forecast for the 27th Period Ending December 31, 2019 and the 28th Period Ending June 30, 2020”
announced today.

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

10

10.

Overview of Appraisal Report of the Properties to be Acquired[Osaka YM Bldg.]
Appraiser
Final Appraisal Value (Note)
Appraisal Date

Item
Revenue price
Value Calculated Using Direct
Capitalization (DC) Method
Operating revenues
Potential gross revenue
Vacancy loss, etc.
Operating expenses
Maintenance expenses
Utility expenses
Repair expenses
PM fees
Tenant solicitation expenses,
etc.
Real estate taxes
Insurance premiums
Other expenses
Net operating income (NOI)
Gain on management of income
from lump-sum payment
Capital expenditures
Net Cash Flows
Overall Capitalization Rate
Value Calculated Using Discount Cash
Flow (DCF) Method
Discount Rate

Terminal Capitalization Rate
Cost method value
Ratio of Land Price
Ratio of Building Price
Other items considered by real estate appraisal
agent upon appraisal

Japan Real Estate Institute¥7,060,000 thousand
October 1, 2019
Details(thousand yen)
7,060,000 -Overview, etc.

7,110,000 488,575 Estimated revenue that can be stably earned on a medium and
512,728
long-term basis
Calculated on the premise that the level of occupancy rates
24,153will be stable on a medium and long-term basis
170,087 With reference to actual results of past years and maintenance
52,134
expenses of similar properties
48,100 Calculated in consideration of actual results of past years andoccupancy rates
12,843 With reference to the ER and similar properties, etc.
4,050 With reference to fee ratios of similar properties, etc.
4,664 Assessed based on the estimated tenant turnaround period
47,567 Assessed based on standard tax amounts and measures for tax
burden adjustment described in the materials related to taxes
and public dues
693 Taking into consideration of premium rates of similarbuildings
36
318,488
Assessed by setting a targeted investment return that is
considered as appropriate, based on comprehensive
3,470
consideration on the level of interest rates from perspectivesof both management and procurement aspects
30,570 With reference to the ER and similar properties, etc.
291,388 Assessed in consideration of locational conditions, building
4.1% conditions, future uncertainties and transaction yields ofsimilar properties, etc.
7,000,000 Assessed comprehensively considering individuality of the
3.7% property, etc., with reference to investment returns of similar
properties, etc.
Assessed comprehensively considering cases of transactionsof similar properties, future trends of investment returns,
4.1%
risks related to the property, forecast of economic growth
rates and trends of real estate prices, etc.
7,470,000 86.5% 13.5% Not applicable

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

11

[East Square Tokyo]
Appraiser
Final Appraisal Value
Appraisal Date

The Tanizawa Sōgō Appraisal Co., Ltd.
¥10,200,000 thousand
October 1, 2019

Item
Revenue price
Value Calculated Using Direct
Capitalization (DC) Method
Operating revenues
Potential gross revenue
Vacancy loss, etc.
Operating expenses
Maintenance expenses
Utility expenses
Repair expenses
PM fees
Tenant solicitation expenses,
etc.
Real estate taxes
Insurance premiums
Other expenses
Net operating income (NOI)
Gain on management of income
from lump-sum payment
Capital expenditures
Net Cash Flows
Overall Capitalization Rate
Value Calculated Using Discount Cash
Flow (DCF) Method
Discount Rate
Terminal Capitalization Rate
Cost method value
Ratio of Land Price
Ratio of Building Price
Other items considered by real estate appraisal
agent upon appraisal

Details(thousand yen)
10,200,000 -Overview, etc.

10,300,000 888,082
936,476
48,394423,183-

Assessed based on the building management operations
133,901 outsourcing contract and actual results of revenue andexpenditure, etc.
190,451 Assessed considering actual results of revenue and expenditure,etc.
17,850 Assessed by allocating the figure based on the engineering
report and similar cases to repair expenses and capital
expenditures (Repair Expenses (30%) and Capital Expenditures(70%))
13,321 Assessed based on the change in leasing contract etc.
6,480 Assessed based on 10.0% annual tenant replacement
58,689 Amount of taxes for FY2019 is assessed based on a list ofamounts of payment of property taxes and city planning taxes for
FY2019712 Assessed based on disclosed material
1,776 Assessed considering actual results of revenue and expenditure,etc.
464,898 4,232 38,250 Assessed by allocating the figure based on the engineering reportand similar cases to repair expenses and capital expenditures(Repair Expenses (30%) and Capital Expenditures (70%))
430,880 4.2% 10,200,000 4.3%
4.4%
10,200,000
80.6%
19.4%

-

Not applicable

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

12

[Hotel Vista Premio Tokyo]
Appraiser
Final Appraisal Value
Appraisal Date

The Tanizawa Sōgō Appraisal Co., Ltd.
¥12,000,000 thousand
August 1, 2019

Item
Revenue price
Value Calculated Using Direct
Capitalization (DC) Method
Operating revenues
Potential gross revenue
Vacancy loss, etc.
Operating expenses
Maintenance expenses
Utility expenses
Repair expenses
PM fees
Tenant solicitation expenses,
etc.
Real estate taxes
Insurance premiums
Other expenses
Net operating income (NOI)
Gain on management of income
from lump-sum payment
Capital expenditures
Net Cash Flows
Overall Capitalization Rate
Value Calculated Using Discount Cash
Flow (DCF) Method
Discount Rate
Terminal Capitalization Rate
Cost method value
Ratio of Land Price
Ratio of Building Price
Other items considered by real estate appraisal
agent upon appraisal

Details(thousand yen)
12,000,000 -Overview, etc.

12,200,000 482,330 482,330 0 46,025 2,084 Assessed based on the building maintenance contract etc.
101 Assessed considering actual results of revenue and expenditure,etc.
3,810 Assessed by allocating the figure based on the engineering
report and similar cases to repair expenses and capital
expenditures (Repair Expenses (30%) and Capital Expenditures(70%)).
2,400 Assessed based on the change in leasing contract etc.
0 35,036 Amount of taxes for FY2019 is assessed based on a list ofamounts of payment of property taxes and city planning taxes for
FY2019181 Assessed based on disclosed material
2,411 Assessed considering actual results of revenue and expenditure,etc.
436,305 979 9,525 Assessed by allocating the figure based on the engineering reportand similar cases to repair expenses and capital expenditures(Repair Expenses (30%) and Capital Expenditures (70%)).
427,759 3.5% 11,900,000 3.5%
3.7%
11,900,000
88.4%
11.6%

-

Not applicable

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

13

<Reference>
Assumed NOI and depreciation of Assets to be Acquired
Property name
Osaka YM Bldg.
East Square Tokyo.
Hotel Vista Premio Tokyo
Total

Assumed NOI (Note 1)¥307 million per year
¥441 million per year
¥439 million per year
¥1,188 million per year

Depreciation (Note 2)¥25 million per year
¥53 million per year
¥49 million per year
¥127 million per year

Notes:
1.
Assumed NOI (Net Operating Income) is the estimated amount of property leasing revenue, less property leasing expenses, assuming the burden of property taxes and city
planning taxes for the full year based on the lease agreement terms and conditions, etc. on the anticipated acquisition date. MCUBS MidCity’s estimated figures for time of steadystable occupancy. In addition, Assumed NOI presented in the table above have been rounded down to the nearest million yen. Accordingly, the sum of the line items for each group
may not add up to the amount shown in the subtotal.
2.
MCUBS MidCity’s estimated figures for time of steady stable occupancy. Depreciation presented in the table above have been rounded down to the nearest million yen.
Accordingly, the sum of the line items for each group may not add up to the amount shown in the subtotal.

The figures above are not the forecast figures for the current period or subsequent periods.
Property Portfolio after the Transactions
Type

Region(Anticipated)
Acquisition Price(Note 1) (Millions of
Yen)

Property Name

Investment
Ratio (Note 2)(Anticipated)
Acquisition Date

Office Building

Tokyo
Metropolitan
Area

Osaka
Metropolitan
Area
Other

Sumitomo Fudosan Ueno Bldg. No. 6
G-Square Shibuya Dogenzaka
Shibuya Sakuragaoka Square
Yokohama Creation Square
Cube Kawasaki
Higashi-Nihombashi Green Bldg.
Sasazuka Center Bldg.
USC Bldg.
Yoshiyasu Kanda Bldg.
TOYOTA MOBILITY SERVICE Bldg.
M-City Akasaka 1-chome Bldg.
Yokohama i-land Tower
M-City Edogawabashi Bldg.
East Square Tokyo
Twin 21 (Note 3)
MID Imabashi Bldg.
Kitahama MID Bldg.
MID Nishihonmachi Bldg.
Higobashi MID Bldg.
Osaka YM Bldg.
Sendai Capital Tower
Subtotal (21 properties)

Other than Office Building
Tokyo
AEON MALL Tsudanuma
Metropolitan
Hotel Vista Premio Tokyo
Area
Osaka
Metropolitan
Area
Other

Konami Sports Club Kyobashi

Dormy Inn Hakata Gion
Subtotal (4 properties)
Silent Partnership Interest for Office Building
NagoyaNagoya Lucent Tower
Metropolitan(Silent partnership interest)
Area
Subtotal (1 asset)
Total (26 properties)

7,460
12,22017,1307,080
20,0502,705
8,700
10,800
4,000
9,200
4,205
22,1004,070
9,500
68,7003,270
10,800
3,550
3,000
6,310
5,500
240,350

2.6%
4.2%
6.0%
2.5%
7.0%
0.9%
3.0%
3.8%
1.4%
3.2%
1.5%
7.7%
1.4%
3.3%
23.9%
1.1%
3.8%
1.2%
1.0%
2.2%
1.9%
83.6%

May, 2015
August, 2015
August 2015, etc.
August, 2015
August, 2015
December, 2015
March, 2017
April 2017, etc.
February, 2018
March, 2018
March, 2018
September, 2018
March, 2019
November, 2019
August, 2006
April, 2007
April, 2008
October, 2008
June, 2013
November, 2019
February, 2017

26,1009.1%

August, 2006

11,2003.9%

November, 2019

2,780

1.0%

August, 2006

2,280
42,3600.8%
14.7%

September, 2013

4,919

1.7%

August, 2015

4,919
287,6291.7%
100.0%

Notes:
1. (Anticipated) Acquisition Prices are rounded down to the nearest million yen.
2. Investment Ratios are rounded to the nearest first decimal place. Accordingly, the sum of the investment ratio figures may not add up to 100.0%.
3. Data for Twin 21 includes the trust beneficiary interest in Twin 21 and Twin 21 (partial ownership of land with leasehold interest), collectively.

Note: This press release provides information regarding MCUBS MidCity’s acquisition of trust beneficiary interests in domestic real estate and is not prepared as an
inducement or invitation for investment. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (ifprepared) before making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. This press release does notconstitute an any offer of securities in the United States of America. The investment units to herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “Securities Act”). The investment units may not be offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. The investment units referred to above herein will not be publicly offered or sold in the United States.

14