December 19, 2018
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 Acquisition 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 acquisition (the“Acquisition”) of domestic real estate trust beneficiary right (ArtizA Higashi-Shimada) (the “Asset to be Acquired”) as
described below.
1. Outline of the Acquisition
Property name
ArtizA Higashi-Shimada(Note)

Location

Planned acquisition price(million yen) (Note)

Okayama-shi, Okayama

700

Planned acquisition price indicates the purchase price planned to be stated in the trust beneficiary right sale and purchase agreement(excluding consumption tax, local consumption tax and other miscellaneous expense such as broker’s commissions) for the Asset to be
Acquired, which is planned to be concluded on January 4, 2019. The same applies hereinafter.

(1) Acquisition decision date(2) Planned sale and purchase agreement date(3) Payment date and planned acquisition date
(4) Planned seller(5) Acquisition financing(6) Settlement method: December 19, 2018
: January 4, 2019
: January 4, 2019
: Please refer to “4. Overview of Planned Seller” later in this document: Cash on hand and borrowings (Note): Lump sum payment on the acquisition date

(Note) For details of the borrowings, please refer to “Notice Concerning Borrowing of Funds” separately announced today.

2. Reason for the Acquisition
marimo REIT has comprehensively taken into account the portfolio building policy, trends of the real estate market,
individual characteristics of each property, etc. upon deciding on the Acquisition with an aim to reinforce the portfolio.

1The property, which is a residential property developed by Marimo Co., Ltd. (“Marimo”), satisfies investment criteria
of marimo REIT. marimo REIT recognized following points upon deciding on the Acquisition.
・The property is located approximately 900 meters southwest of Okayama Station on the JR Sanyo Main
Line/Sanyo Shinkansen, and the central-Okayama office district and “AEON MALL Okayama” (one of thelargest shopping mall in West Japan) are within walking distance alongside other convenient facilities foreveryday life in neighboring areas. With such convenience for daily life and transportation, the area is likely
to expect due residential demand mainly from singles.
・Completed two years ago, the property is relatively new with due quality in its interior, facilities and such. It
expects persistent residential demand mainly for rental housing provided by companies, etc. and is likely tocontinue having stable income going forward.
3. Details of the Asset to be Acquired
Property name
ArtizA Higashi-Shimada
Planned acquisition
date
Planned acquisition
price
Location (indication ofresidential address)
TransportationLand
Lot number

January 4, 2019

Asset Type
Residence
Outline of specified asset
Type of specified asset Real estate trust beneficiary right

700 million yen

Appraisal value(Date of value)
1-5-4 Higashi-shimada, Kita-ku, Okayama-shi, Okayama

730 million yen(October 31, 2018)

Approximately 12 minutes from Okayama Station on the JR Sanyo Main Line/Sanyo Shinkansen
1-46-1 Higashi-shimada, Kita-ku,
Building Construction December 16, 2016
Okayama-shi, Okayama
completiondate
80%
Structure /Reinforced concrete structure
number ofwith flat roof/9F
floors400%
Gross floor
2,029.25 m2
area
Commercial district
Designer
Marimo Co., Ltd.
572.80 m2
Builder
Minami Co., Ltd.
Proprietorship
Form of
Proprietorshipownership
None

Building
coverage
ratio
Floor-area
ratio
Use district
Site area
Form ofownership
Whether security isestablished
Annual lease
51 million yen
revenue (includingcommon area fee)
Leasable area
1,809.60 m2
Master lease company Marimo Co., Ltd.
Property management Marimo Co., Ltd.
company
Trust establishment January 4, 2019
date
Main tenant
Relocation Japan, Limited
Probable Maximum 3.1%
Loss
(Earthquake PML)
Notes:
No applicable matters.

Security deposit andguarantee money

Security deposit: 7 million yen

Occupancy rate
Master lease type
Trustee100％
Pass-through type
Mitsubishi UFJ Trust and Banking
Corporation
January 31, 2029

Trust term expiration
date
Number of leasable units 52 single units
Name of appraisal
Tanizawa Sōgō Appraisal Co., Ltd.
agency(Note) Definitions of terms are as follows.
・“Asset type” indicates one of marimo REIT’s investment target properties (residential, retail, hotel, office and parking).
・“Planned acquisition date” indicates the date marimo REIT plans to acquire the real estate trust beneficiary right.
・“Type of specified asset” indicates the type of real estate and other assets as a specified asset.
・“Location (indication of residential address)” indicates the residential address description, in principle.
・“Transportation” indicates the time stated in the engineering report.

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・”Lot number” for land indicate the location of the building stated in the registry.
・“Building coverage ratio” for land indicates, in principle, the maximum value (designated building coverage ratio) (in cases of multiple values,
all of them) determined by City Planning in accordance with the land use district, etc. for the ratio of the construction area of the structure
to the site area, as set forth in Article 53 of the Building Standards Act (Act No. 201 of 1950; as amended; the “Building Standards Act”).
Designated building coverage ratio may be mitigated, increased or decreased due to reasons such as being a fire-resistant building in a fire
prevention district, and may differ from the actual building coverage ratio applied.
・“Floor-area ratio” for land indicates the maximum value (designated floor-area ratio) (in cases of multiple values, all of them) determined by
City Planning in accordance with the land use district, etc. for the ratio of the gross floor area of the building to the site area, as set forth in
Article 52 of the Building Standards Act. Designated floor-area ratio may be mitigated, increased or decreased due to reasons such as thewidth of roads connecting to the site, and may differ from the actual floor-area ratio applied.
・“Use district” for land indicates the type of land use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act (Act No. 100 of
1968; as amended).
・“Site area” for land is based on the description in the registry and may differ from the present state.
・“Form of ownership” for land and building indicates the type of right planned to be held by marimo REIT.
・“Construction completion date” for building indicates the date of new construction of the principal building stated in the registry.
・“Structure / number of floors” is based on the description in the registry regarding the principal building.
・“Gross floor area” for building indicates the floor area including those of ancillary buildings based on the description in the registry.
・“Designer” and “Builder” for building indicate company names at the time of designing and construction of the principal building.
・“Whether security is established” indicate whether there is security that continues to exist after the acquisition by marimo REIT.
・“Annual lease revenue” indicates an amount obtained by multiplying the monthly fixed rent (including common area fee) specified in thelease agreements (however, concerning lease agreements for the building, land (including flat parking lot) is excluded) concluded with thelessees of the Asset to be Acquired as of October 31, 2018 by 12, rounded down to the nearest million yen. Furthermore, as to the Asset to
be Acquired, when a master lease agreement is concluded, “Annual lease revenue” indicates the amount of annual rent or monthly rent
multiplied by 12, that are specified in the lease agreements concluded with end tenants, if the amount of rent is equal to the sum of rents
specified in the lease agreements concluded with end tenants, rounded down to the nearest million yen.
・“Security deposit and guarantee money” indicates the sum amount of security deposit and guarantee money (rounded down to the nearest
million yen) required at the time of moving in, for tenants who have already moved in. Furthermore, as to the Asset to be Acquired, when amaster lease agreement is concluded, the sum amount of security deposit, guarantee money, etc. specified in the lease agreements concluded
with end tenants is indicated, if the amount of security deposit is equal to said sum amount, rounded down to the nearest million yen.
・“Leasable area” indicates an area marimo REIT considers leasable in the building of the Asset to be Acquired.
・“Occupancy rate” indicates a figure obtained by dividing the total of leased areas shown in the lease agreements concluded with the tenantsof the Asset to be Acquired as of the end of October 2018 by the area marimo REIT considers leasable in the building of the Asset to be
Acquired, rounded to the first decimal place.
・“Master lease company” and “Property management company” refer to companies which have concluded a master lease agreement and aproperty management (“PM”) agreement, respectively, for the Asset to be Acquired. “Master lease type” indicates the type of the master
lease (either pass-through type or fixed-rent type).
・“Trustee” indicates the trustee for the Asset to be Acquired.
・“Main tenant” indicates a tenant which has the largest leased area among tenants that lease the property from marimo REIT or the trustee
based on a lease agreement valid as of the end of October 2018. However, for the Asset to be Acquired, when a master lease agreement isconcluded, the end tenant is indicated as “Main tenant” for a property under pass-through type master lease agreement.
・“Number of leasable units” indicate the number of units (number of sections) marimo REIT is able to lease, by unit type.
・“Notes” indicate matters considered material in light of their impact on the valuation amount, profitability, and disposability of the Asset to
be Acquired, as well as matters considered material in relation to the right relations and use, etc. of the Asset to be Acquired as of today.

34. Overview of Planned Seller
(1)
Name
(2)
Location
Name and title and of(3)
representative
(4)
(5)
(6)
(7)
(8)

Business description

Marimo Co., Ltd.
1-17-23 Kougokita, Nishi-ku, Hiroshima-shi, Hiroshima
Makoto Fukagawa, President
Project planning/development/architectural designing/project supervision/
marketing and sales of real estate; property liquidity; environmental health,overseas real estate development and hot spa operation in China.
100 million yen (as of July 31, 2018)
September 1, 1970
18,776 million yen (Based on the balance sheet as of July 31, 2018)74,194 million yen (Based on the balance sheet as of July 31, 2018)

CapitalDate establishedNet assets
Total assets
Major shareholders andMarimo Holdings Co., Ltd.: 100%
(9)shareholding ratio(10) Relationship between marimo REIT/Asset Manager and the company
Capital ties
As of today, the company holds 10.5% (13,950 units) of thenumber of marimo REIT’s investment units outstanding. In
addition, the company is a subsidiary of Marimo Holdings
Co., Ltd., which holds the 96% stake in the Asset Manager.
Personnel ties
As of today, two of officers and employees of the AssetManager are seconded from the company.
Business ties
The company has entered into a sponsor pipeline and support
agreement (as amended) with marimo REIT and the AssetManager. In addition, the company has entered into a master
lease agreement and property management agreement withmarimo REIT. Seven properties of the portfolio assets weretransferred to marimo REIT for 7,700 million yen (totalacquisition price) on January 23, 2018 based on a real estate
trust beneficiary right sale and purchase agreement entered
together with marimo REIT on January 4, 2018.
Concerning Related Parties
The company is a subsidiary of the parent company of theAsset Manager, and falls under the category of related parties.
In addition, the company falls under the category of interested
persons, etc. defined in the Act on Investment Trusts andInvestment Corporations. Furthermore, since the company is
an interested person, etc. defined in the rules on transactions
with interested persons, etc., which are the internal rules set
by the Asset Manager, the Asset Manager has followed thedecision-making procedure specified in the rules ontransactions with interested persons, etc. upon conducting
the transaction to acquire the Asset to be Acquired.
(Note)

Acquisition price indicates the purchase price stated in the trust beneficiary right sale and purchase agreement (excluding consumption
tax, local consumption tax and other miscellaneous expense such as broker’s commissions) for the acquired assets.

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5. Information on Property Acquirers, etc.
Status of property acquisition, etc. from interested persons, etc. of marimo REIT, special purpose companies(subsidiaries) of which decision-making bodies are controlled by the interested persons, etc. and other persons withspecial relationship (the “Persons of Special Interest”) is as follows. (①: Name of the company or the name of theperson, ②: relationship with Persons of Special Interest, ③: Acquisition particulars and reason).
Property name
(Location)

ArtizA HigashiShimada

Previous owner/trust beneficiary

Second previous owner/trust
beneficiary①, ②, ③①, ②, ③Acquisition (transfer) price
Acquisition (transfer) timing① Marimo Co., Ltd.
② Sister company of the Asset Manager③ A property developed by Marimo Co., Ltd.;
Acquired since it can expect stable
operations over a medium- to long-term,
after evaluating the market andmarketability.

Acquisition (transfer) price
Acquisition (transfer) timing
Not a person of special interest

Omitted since the previous owner/beneficiary
had owned it for more than one year before
transferring it to marimo REIT.
December 2016
6. Transactions with Interested Persons, etc.
Marimo, the subsidiary of the parent company of the Asset Manager, will be the seller of the Asset to be Acquiredand entrusted with property management and master lease management for the Asset to be Acquired. Marimo falls
under the category of interested persons, etc. defined in Article 201 of the Act on Investment Trusts and Investment
Corporations and Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment
Corporations, and under the category of interested person, etc. defined in the rules on transactions with interested
persons, etc., which are the internal rules set by the Asset Manager. Therefore, the Asset Manager has followed
procedure specified in the rules on transactions with interested persons, etc. (including consent based on approvalof the Board of Directors of marimo REIT at a meeting to be held on December 19, 2018) upon conducting acquisitiontransaction of the Asset to be Acquired and concluding the agreement with these parties.
7. Outline of Intermediation
There is no applicable intermediation pertaining to the above transaction.
8. Future Outlook
The impact of the Acquisition on the management status forecast is minimal. For details, please refer to “NoticeConcerning Revisions to Management Status Forecast and Distribution Forecast for the Fiscal Period Ending June 2019”
separately announced today.

59. Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyTime of valuation
Items

Summary of Appraisal Statements
ArtizA Higashi-Shimada
730 million yen
Tanizawa Sogo Appraisal Co., Ltd.
October 31, 2018
Details (Unit: thousand yen)

Value based on income approach
Value based on direct
capitalization method(1) Operating Revenue

730,000

735,000
50,000① Potential gross income

52,677② Vacancy loss, etc.

2,676(2) Operating Expenses

12,635a. Maintenance andmanagement expenses

1,715

b. Water and utility fees

434

c. Repair costs

1,812

d. Property management
fee

1,499

e. Tenant solicitation
expenses, etc.

1,963

f. Taxes and other publiccharges

3,487

g. Non-life insurance
premiums

222

h. Other expense

1,500(3) Net Operating Income(NOI)(4) Revenue from investmentof lump sum payments(5) Capital expenditures

Summary, etc.
Estimated through verification using direct
capitalization method, with value using DCF
method as standard.
Assessed upon capitalization using standardized
net income which is recognized stable over the
medium to long term.
Assessed after taking into account the medium- tolong-term competitiveness of the subject real
property, based on the rent levels for similar real
property within the same supply and demand area,
their trends, etc.
Assessedtaking
into
consideration
thecompetitiveness of the subject real property, etc.
based on the standard vacancy rate of similar real
property.
Assessed through verification using the levels ofmaintenance and management expenses for
similar real property, based on the property
management agreement, etc.
Assessed based on the levels of water and utility
fees for similar real property.
Assessed referring to the figure stated in the ER andthe levels of similar real property from the mediumto long-term perspective. In addition, assessed
costs for restoration to original condition after
taking into account the move-out rate, etc.
Decided based on the property managementagreement, etc.
Assessed taking into account tenant solicitation
expenses assessed based on the levels for similar
real property, the property managementagreement, etc.
Assessed based on the value assessed for 2018.
Assessed based on the standard premium rate
assumed from insurance premiums for similar real
property.
Assessed based on the levels of expenses for similar
real property.

37,365
Assessed investment income using an investment
yield of 1.0%.
Assessed referring to the figure stated in the ER and

38
666

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the levels of similar real property from the mediumto long-term perspective.
Net Income (NCF)

36,737
Assessed by comparing with transaction yield forsimilar real property and comprehensively taking
into account the location/building conditions andother conditions of the subject real property.

Capitalization rate

5.0%

Value based on DCF method

728,000

Discount rate

5.1%

Terminal capitalization rate

5.2%

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

Assessed comprehensively taking into account theindividual characteristics of the subject real
property, based on the yield of a property withsimilar use that is located in an area with the lowest
risk.
Assessed by incorporating future unpredictability,
based on the capitalization rate.

731,000
30.2%
69.8%
Based on a value forming process and request purpose in which a market participant
values profitability in the subject real property, as well as the typology, we used as
our standard an income amount that appropriately reflected future profitability for
an investor to examine the cost method value and set the appraised price at theincome amount.

*This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of the Ministryof Land, Infrastructure, Transport and Tourism, and the press club for construction trade publications of the Ministryof Land, Infrastructure, Transport and Tourism.
*Website of marimo REIT: https://www.marimo-reit.co.jp/en/<Attached Materials>
Reference Materials 1
Reference Materials 2

Property Photo
Location Map

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Reference Materials 1(Note)

Property Photo

The photo of the Asset to be Acquired represents the condition of the asset at the time the photo was taken, and thus
the present state may differ due to changes, etc. over time.

8Reference Materials 2

Location Map
Asahi River
Okayama Prefectural Museum
Okayama Korakuen
Okayama Orient Museum

OkayamaStationBic Camera
ICOTNICOTAEONMALLOKAYAMA

Okayama Castle
Hayashibara Museum of Art
Okayama Prefectural Library
Okayama Prefectural Government

Kencho-dori Street
Akura-doriStreetArtizA
Higashi-Shimada

Okayama City
OfficeTenmaya
Yanagawa-suji Street

Shiyakushosuji
StreetTakashimaya

Momotaro-dori Street

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