November 16, 2021
To All Concerned Parties
Real Estate Investment Trust Securities Issuer
1-1-21 Toranomon, Minato-ku, Tokyo
marimo Regional Revitalization REIT, Inc.
Representative: Takashi Kitagata, Executive Director(Securities Code: 3470)
Asset Manager
Marimo Asset Management Co., Ltd.
Representative: Takashi Kitagata, CEOContact:
Katsuhiro Shimada, Financial Management Officer
TEL: +81-3-6205-4755
Notice Concerning Disposition of Domestic Real Estate Trust Beneficiary Rightmarimo Regional Revitalization REIT, Inc. (“marimo REIT”) hereby announces that Marimo Asset Management Co., Ltd.,
to which marimo REIT entrusts management of its assets (the “Asset Manager”), decided today on the disposition (the“Disposition”) of domestic real estate trust beneficiary right as described below.
1. Overview of the Disposition
Name of asset to be disposed
Planned disposition price (Note 2)

ArtizA Hakataeki-MinamiFirst disposition (50% quasi co-ownership interest): 350 million yen
Second disposition (50% quasi co-ownership interest): 350 million yen
Total: 700 million yen (Each disposition is planned to be made in the form ofquasi co-ownership interest (50% quasi co-ownership interest each) on two
separate dates (the “Disposition in Parts”), and the planned disposition pricefor each planned disposition date is as stated above.)Book value (Note 3)
459 million yen
Gain from sale (estimate) (Note4) First disposition (50% quasi co-ownership interest): 120 million yen
Second disposition (50% quasi co-ownership interest): 120 million yen
Buyer
Please refer to “4. Overview of Buyer” later in this document.
Intermediation
Yes (Note 5)
Disposition decision dateNovember 16, 2021
Sales contract conclusion dateNovember 18, 2021
Planned disposition date
First disposition (50% quasi co-ownership interest): December 22, 2021
(delivery and settlement date)
Second disposition (50% quasi co-ownership interest): January 26, 2022
(delivery and settlement date)Settlement method
Payment for the portion in accordance with the quasi co-ownership interest to
be disposed and delivery of such on each disposition date.
(Note 1) Amounts are rounded down to the nearest million yen.
(Note 2) “Planned disposition price” does not include the reimbursed amount equivalent to fixed asset tax and city
planning tax as well as consumption tax, etc.
(Note 3) “Book value” indicates the amount as of the end of the fiscal period ended June 2021 (10th fiscal period).
(Note 4) “Gain from sale (estimate)” is the amount calculated by deducting the book value from the planned disposition
price. The actual gain/loss from sale may differ from the gain from sale (estimate) stated above(Note 5) As of today, the intermediary does not fall under the category of interested persons, etc. defined in the Act
on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) nor of interested
persons, etc. defined in the rules on transactions with interested persons, etc. set by the Asset Manager.

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(Note 6) The purchase and sale agreement for the Disposition (the “Purchase and Sale Agreement”) falls within forward
commitments, etc. by marimo REIT as stipulated in the Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc. established by the Financial Services Agency. Under the Purchase andSale Agreement, when it turns out that either marimo REIT or the buyer does not intentionally or negligently
fulfill obligations stated in the Purchase and Sale Agreement, or materially violates the representations andwarranties matters of marimo REIT or representations and warranties matters of the buyer stipulated in thePurchase and Sale Agreement and the purpose of the Purchase and Sale Agreement becomes unachievable,
the agreement may be cancelled after making such demand. When such a cancellation is made, the cancelled
party shall immediately pay an amount equivalent to 20% of the planned disposition price (excluding amountequivalent to consumption tax and local consumption tax) to the counterparty as cancellation penalty.
However, since marimo REIT is the seller under this Purchase and Sale Agreement and there are no concerns
over being unable to procure funds for execution of the Purchase and Sale Agreement, etc., marimo REIT
believes that it is unlikely for marimo REIT to incur the aforementioned penalty and that the transaction isunlikely to materially impact the financial standing of marimo REIT.
2.

Reason for the Disposition
In constructing its portfolio, marimo REIT considers disposition or replacement of properties when such is judged
to be appropriate over the medium to long term by taking into account market conditions. As for the asset to bereplaced, marimo REIT considers disposition for properties of which profitability, etc. assumed at the time ofacquisition cannot be expected as well as for properties facing concerns over future competitiveness due to change
in the supply-demand balance and competitive environment of the area. Upon comprehensively judging the effects
of replacement over the medium to long term, marimo REIT decides on the replacement of the asset.
ArtizA Hakataeki-Minami (the “Property), which is the asset to be disposed, has competitiveness appropriate fora residence located in Fukuoka City, Fukuoka Prefecture, in terms of tenant leasing, being walkable to Hakata
Station. On the other hand, 15 years have elapsed since its completion, and an increase in life cycle cost, including
repair expenses and capital expenditure, is expected going forward. marimo REIT has decided on the disposition to
the buyer this time around because disposition at a price significantly surpassing the book value and the most recent
real estate appraisal value can be expected despite the circumstances in which the impact of the spread of COVID19 is unforeseeable, and it was judged that returning gain from sale to unitholders will contribute to themaximization of benefits of unitholders.
While marimo REIT will make efforts to acquire assets using the proceeds from the disposition of the Property,
it has decided to dispose the Property on two separate dates, each in the form of quasi co-ownership interest of
the beneficiary right, by comprehensively taking into account factors such as the impact of the decrease in operating
revenue from leasing due to the disposition of the Property on the operating results of marimo REIT, in light ofpossible acquisition of assets for replacement or assumed schedule of such acquisition.

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3. Details of the Asset to be Disposed
Name of asset to be disposed
ArtizA Hakataeki-Minami
Type of specified asset
Real estate trust beneficiary right
Trustee
Sumitomo Mitsui Trust Bank, Limited.
Contract period
From March 29, 2016, to March 31, 2026
Location
Lot number
5-133 and 134 Hakataekiminami, Hakata Ward, Fukuoka City, Fukuoka(Note 1)
Indication of
5-16-19 Hakataekiminami, Hakata Ward, Fukuoka City, Fukuoka
residential address
Land
Form of ownership
Proprietorship
Use
Commercial district
Site area (Note 1)
454.93 m2 (Note 2)
Building coverage ratio 80%
Floor-area ratio
400%
Building
Form of ownership
Proprietorship
Main use
Residence
Completion dateJune 20, 2006
Gross floor area
1,811.55 m2
Structure
Steel-framed reinforced concrete structure, flat roof, 15 floors
Acquisition price
500 million yen
Planned disposition price
700 million yen (total)
Book value (Note 3)
459 million yen
Difference between planned
240 million yen
disposition price and book value
Appraisal Appraisal method
Appraisal by Japan Valuers Co., Ltd.
value
Appraisal value
589 million yen
Date of value
November 1, 2021
Details of lease (Note 4)
Master lease company
Marimo Co., Ltd.
Total number of tenants
64
Total lease revenue (annual)
41 million yen
Security deposit and0 million yen
guarantee money
Total leased area
1,642.38 m2
Total leasable area
1,691.50 m2
Change in occupancy rate
June 30, 2019 Dec. 31, 2019 June 30, 2020 Dec. 31, 2020
June 30, 2021
100.0%
98.6%
97.1%
91.3%
100.0%
Other special notes－(Note 1) “Location (lot number)” and “Site area” are based on the description in the real estate registry.
(Note 2) The area of the owned land is indicated.
(Note 3) “Book value” indicates the amount as of the end of the fiscal period ended June 2021 (10th fiscal period).
(Note 4) “Total number of tenants” indicates the number of end tenants for the Property as of today.
“Total lease revenue” indicates an amount obtained by multiplying the total monthly rent (sum of rent andcommon area fee. However, when the amount equivalent to the parking fee is included in the rent in the leaseagreements, such amount will be included) in the currently effective lease agreements concluded with end
tenants for the property by 12 (rounded down to the nearest million yen).
“Security deposit and guarantee money” indicates the amount of security deposit and guarantee money(rounded down to the nearest million yen) in the above lease agreements.
“Total leased area” indicates the area leased to end tenants.
“Total leasable area” indicates the total area that can be leased.

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Overview of Buyer
The buyer is a business company in Japan. However, details are not disclosed as consent on disclosure has not beenobtained from the buyer. As of today, the buyer does not fall under the category of interested persons, etc. definedin the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) nor of interestedpersons, etc. defined in the rules on transactions with interested persons, etc. set by the Asset Manager.
Furthermore, there are no capital, personnel, or business ties to note between the buyer and marimo REIT or theAsset Manager, and the buyer does not fall under the category of related parties of marimo REIT.

5.

Outline of Intermediation(1) Overview of Intermediary
Details are not disclosed as consent on disclosure has not been obtained from the intermediary. There are nocapital, personnel, or business ties to note between the intermediary and marimo REIT or the Asset Manager,
and the intermediary does not fall under the category of related parties of marimo REIT or the Asset Manager.
(2) Amount of Intermediary Fee
The information is not disclosed as a case of non-disclosure due to uncontrollable circumstances because
consent has not been obtained from the intermediary.

6.

Settlement Method, Etc.
Settlement will be made through payment for the portion in accordance with the quasi co-ownership interest to bedisposed and delivery of such on each planned disposition date.
The gain from the Disposition will be returned to unitholders as distribution, and any remaining amount will be
used for portfolio operation including future property replacements, etc.

7.

Future Outlook
For the outlook of the management status for the fiscal period ending December 2021 (from July 1, 2021, toDecember 31, 2021) and the fiscal period ending June 2022 (from January 1, 2022, to June 30, 2022) after thedisposition of the asset to be disposed, please refer to “Notice Concerning Revision of Operating and Dividend
Forecasts for the Fiscal Period Ending December 2021 and the Fiscal Period Ending June 2022” dated today.

48.

Summary of Appraisal Statements

Property name

ArtizA Hakataeki-Minami

Appraisal value
Name of appraisal agency
Date of value

589 million yen
Japan Valuers Co., Ltd.
November 1, 2021

ItemsValue based on income approach

Details
589,000,000

Value based on direct capitalization
method593,000,000

Operating Revenue
Potential gross income

43,998,000
46,576,000

Vacancy loss, etc.

2,577,000

Operating Expenses
Maintenance andmanagement expenses
Utility costs

11,446,000
1,584,000
859,000

Repair costs

1,753,000

Costs to restore exclusively
owned section
Property management fee

1,228,000

Tenant solicitation
expenses
Taxes and other publiccharges
Non-life insurance
premiums
Other expense

1,282,000

Net Operating Income (NOI)
Revenue from investmentof lump sum payments
Capital expenditures

1,307,000

3,210,000
97,000122,000
32,552,000
5,000
4,092,000

5Summary, etc.
Deeming that value based on income approach
which accurately replicates the pricedetermination process from earnings aspects
better matches the market, assessed byadopting value based on income approach
while using cost method value only forreference.
Assessed net income that is stable over themedium to long term, discounted by thecapitalization rate.
Assessed based on the appropriate rent level
recognized as being stable over the medium tolong term.
Assessed taking into account the occupancy
status of the subject real property and future
supply-demand trends.
Assessed referring to past actual results andthe level of similar real property.
Assessed referring to past actual results andthe level of similar real property.
Assessed referring to the maintenance andrepair cost stated in the ER and the level ofsimilar real property.
Assessed referring to past actual results andthe level of similar real property.
Assessed referring to the contract terms and thelevel of similar real property.
Assessed referring to the contract terms and thelevel of similar real property.
Assessed based on materials related to taxes
and other public charges.
Assessed referring to the contents of theinsurance and the level of similar real property.
Assessed referring to past actual results andthe level of similar real property.
Assessed using an investment yield of 1.0%.
Assessed referring to the maintenance andrepair cost stated in the ER and the level ofsimilar real property.

Net Income (NCF)
Capitalization rate

Value based on DCF method
Discount rate

28,464,000
4.8%

584,000,000
4.6%

Terminal capitalization rate

Cost method valueLand ratio
Building ratio
Other matters taken into consideration by
the appraisal agency when performing theappraisal

5.0%

Assessed comprehensively taking into accountthe competitiveness of the subject realproperty, etc.
Assessed by comparing with the transaction
yield of similar real property and yields of otherfinancial instruments.
Assessed comprehensively taking into accountthe characteristics of the real estate market,
potential of the subject real property, etc.

320,000,000
68.75%
31.25%
Although the value based on income approach was higher comparedwith the cost method value, adopted the value based on income
approach as the appraisal value recognizing it being appropriate
after comprehensive examination.

*Website of marimo REIT: https://www.marimo-reit.co.jp/en/

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