January 6, 2020
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 Rights andAccompanying Commencement of Leasing
marimo Regional Revitalization REIT, Inc. (“marimo REIT”) announces that Marimo Asset Management Co., Ltd. (the“Asset Manager”), to which marimo REIT entrusts management of its assets, decided today on the acquisition (the“Acquisition”) of domestic real estate trust beneficiary rights (the “Assets to be Acquired”) as described below. marimo
REIT announces also the accompanying commencement of leasing (the “Leasing”) of the Assets to be Acquired.
Marimo Co., Ltd. (“Marimo”), the seller of the Assets to be Acquired excluding “(Tentative name) MRR Kitamoto(land ownership interests),” falls under the category of interested persons, etc. defined in the Act on Investment Trusts
and Investment Corporations (Act No. 198 of 1951, as amended) (the “Investment Trusts Act”). Therefore, the AssetManager has obtained the consent of marimo REIT based on approval of the Board of Directors of marimo REIT at a
meeting held on January 6, 2020. Marimo also falls under the category of interested persons, etc. defined in the rules
on transactions with interested persons, etc., which are the internal rules set by the Asset Manager. Therefore, theAsset Manager has followed the decision-making procedure specified in the rules on transactions with interested
persons, etc. (including approval of the Board of Directors of marimo REIT at a meeting held on January 6, 2020) upon
conducting asset acquisition transaction with Marimo.
1.

Outline of the Acquisition

Property
number

Property nameLocation(Note 1)

Rp-09

Plannedacquisition price(million yen)
(Note 1)

ArtizA Tsurumai

Naka-ku, Nagoya-shi, Aichi

Rp-10

ArtizA Awajieki-higashi

Higashiyodogawa-ku, Osaka-shi,
Osaka

Rp-11

(Tentative name) ArtizA Matsumoto

Matsumoto-shi, Nagano

640

Cp-12

(Tentative name) MRR Akita II

Akita-shi, Akita

970

Ichihara-shi, Chiba

700

Ct-01
Ct-02

(Tentative name) MRR Ichihara (land ownershipinterests)(Tentative name) MRR Kitamoto (land ownershipinterests)
Total (6 properties)

Kitamoto-shi, Saitama

430
1,180

1,030
4,950

(Note 1) For the definition of “Property number” and “Planned acquisition price,” please refer to “4. (1) Overview of the Assets to be Acquired” later in thisdocument. The same shall apply hereinafter.
(Note 2) The current names of “(Tentative name) ArtizA Matsumoto,” “(Tentative name) MRR Akita II,” “(Tentative name) MRR Ichihara (land ownershipinterests)” and “(Tentative name) MRR Kitamoto (land ownership interests)” differ. marimo REIT plans to change the names after the acquisition.
Therefore, in this press release, the names are those after the change. The property names to be changed are based on plans as of today, and are
subject to change without prior notice or the change of property names may not take place in the future.
(Note 3) As of the date of this document, the building name of “(Tentative name) ArtizA Matsumoto” is “Arco Matsumoto.”

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

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(1)
(2)
(3)
(4)

Acquisition decision date:
Sale and purchase agreement date:
Planned payment date and planned acquisition date:
Planned seller:(5)

Acquisition financing:(6)

January 6, 2020
January 6, 2020
January 21, 2020
Please refer to “5. Overview of Planned Seller” later inthis document.
Proceeds from the issuance of new investment units forwhich resolution was passed at the meeting of theBoard of Directors of marimo REIT held on January 6,2020 (Note 1), borrowings (Note 2) and cash on hand
Lump sum payment on the planned acquisition dateSettlement method:(Note 1) For details, please refer to “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” announced
today by marimo REIT.
(Note 2) For details, please refer to “Notice Concerning Borrowing of Funds” announced today by marimo REIT.

2.

Reason for the Acquisition
In pursuit of securing “profitability” and “stability” and steady growth of the portfolio while aiming to continuallyenhance unitholder value over the medium to long term through acquisition of new real estate trust beneficiaryrights, marimo REIT decided to acquire the Assets to be Acquired (total of six properties) after consideration inlight of market trends, the level of dividends per unit, etc. The features of each property are as shown in thefollowing table.
Property
number

Property name

Rp-09

ArtizA Tsurumai

Rp-10

ArtizA Awajieki-higashi

Rp-11(Tentative name) ArtizA
MatsumotoCp-12(Tentative name) MRR Akita II

Overview
With two railway lines and two railway stations available for use
being approximately a 4-minute walk from Tsurumai Station on
the JR Chuo Main Line and approximately a 5-minute walk from
Tsurumai Station on the Nagoya City Subway Tsurumai Line andwith many retail facilities within walking distance, this relatively
new residential property boasts excellent access to the city
center and convenience in terms of daily living
Located approximately a 6-minute walk from JR-Awaji Station on
the JR Osaka Higashi Line and with Awaji Station on the Hankyu
Kyoto Line and Hankyu Senri Line also within walking distance,
the property offers rental residential units targeting people ofone-person households commuting to work or school in central
districts. With supermarkets, convenience stores, restaurants,
etc. in the surrounding area, this relatively new residential
property boasts excellent convenience in terms of daily living.
This residential property is located approximately a 6-minute
walk from Matsumoto Station, which is served by two railway
lines JR Shinonoi Line and Oito Line, in the “Oote 1-chome area,”a location for which there is a certain level of demand as aresidential district near a railway station and that is comfortable
to live in for a wide range of people from one-person to family
households
This roadside retail property in close proximity to where main
arterial roads National Route 13 and Prefectural Road 56 Akita
Tenno Line intersect is located in the “Barajima area,” an area forwhich high needs can be expected as there is “MRR Akita,” anasset in marimo REIT’s portfolio, diagonally opposite to theproperty and a concentration of a wide variety of other retailfacilities, such as Aeon Akita Chuo Store and Aeon Town Barajima
Annex

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

2

Property
number3.

Property name

Ct-01

(Tentative name) MRR Ichihara(land ownership interests)

Ct-02(Tentative name) MRR Kitamoto(land ownership interests)

Overview
This retail property with a concentration of tenants closely
related to daily living is situated at the center of a residential
district where there are also schools, parks, etc. nearby locatedin an urban area within an approximately 5.8 km range of Goi
Station, which is served by two railway lines JR Uchibo Line andKominato Line in central Ichihara City, Chiba Prefecture
Land ownership interests to a K’s Denki stand-alone store thatstands in a prime location along main arterial road National
Route 17 accessible from both inbound and outbound lanes

Reason for Tenant Selection
The counterparties to the leasing in the Leasing (Note) have been verified to meet the following tenant selection
criteria stated in marimo REIT’s “Report on the Management Structure and System of the Issuer of Real Estate
Investment Trust Units and Related Parties” dated September 30, 2019.
(Note)

Refers to the counterparties to the subleasing by the master lease company in the case that marimo REIT or the trustee enters into a leaseagreement with a master lease company.

The tenants occupying (including potential tenants to newly occupy) properties owned and operated orproperties to be newly acquired by marimo REIT shall be decided by conducting a review and analysis of thefollowing content and screening that comprehensively takes such content into account.
Even if the criteria are met, the contract shall not be concluded if found to have a relationship with anti-social
forces.
(1) For corporations① Business type
② Financial status and corporate size
③ Capital ties
④ Purpose of use and contract terms and conditions⑤ Other matters(2) For individuals① Income level② Profession③ Employer and years of service④ Whether there is a joint and several surety⑤ Other matters
4.

Details of the Assets to be Acquired(1) Overview of the Assets to be Acquired
The following presents an individual overview of the real estate of the trust beneficiary right that are the Assets
to be Acquired.
・ “Property number” is the number assigned property by property by combining the asset type classificationsof “investment targets” and “investment ratio by region” for the Assets to be Acquired of marimo REIT.
“Investment targets” are represented by R for residential, C for retail, H for hotel and O for office, while p isfor regional and t is for Tokyo metropolitan area. The same shall apply hereinafter. In cases of mixed-use
properties of several uses (asset types), the investment target classification is based on the asset type that
accounts for the largest percentage of lease revenue when full occupancy is assumed.
・ “Asset type” indicates one of marimo REIT’s investment target properties (residential, retail, hotel, officeand parking).
Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

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・ “Planned acquisition date” indicates the date marimo REIT plans to acquire each real estate trust
beneficiary right. The date may be postponed by a few days or so upon finalization of the payment due dateof the primary offering stated in “Notice Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” dated today or the drawdown date of the borrowing stated in “NoticeConcerning Borrowing of Funds” dated today.
・ “Type of specified asset” indicates the type of real estate and other assets as a specified asset.
・ “Planned acquisition price” indicates the purchase price of each real estate trust beneficiary right stated ineach trust beneficiary right sale and purchase agreement (excluding consumption tax, local consumption
tax and other miscellaneous expenses such as broker’s commissions) for the Assets to be Acquired, rounded
down to the nearest million yen.
・ “Appraisal value” indicates the appraisal value stated in the real estate appraisal report for each Asset to be
Acquired obtained from Japan Valuers Co., Ltd. and The Tanizawa Sōgō Appraisal Co., Ltd.
・ “Location (indication of residential address)” indicates, in principle, the indication of residential address. In
cases of properties that have no indication of residential address, the location of the building (if there areseveral, one of the locations) stated in the registry. In cases of properties of land ownership interests, thelocation of the land (if there are several, one of the locations) stated in the registry.
・ “Transportation” indicates the time it takes to walk the distance from the nearest railway station at a speedof 80 meters per minute as calculated by the Asset Manager (rounded up to the nearest specified unit) or
the time stated in the real estate appraisal report or engineering report.
・ ”Lot number” for land indicates the location of the building (if there are several, one of the locations) statedin the registry. In cases of properties of land ownership interests, the location of the land (if there areseveral, one of the locations) 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 53of the Building Standards Act (Act No. 201 of 1950; as amended; the “Building Standards Act”). Designatedbuilding coverage ratio may be mitigated, increased or decreased due to reasons such as being afire-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 the width ofroads 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 (if there are several, all of them) 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 (if there is a leasehold, including the area under leasehold)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 thedescription 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 theacquisition by marimo REIT.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

4

・ “Annual lease revenue” indicates an amount obtained by multiplying the monthly fixed rent (includingcommon area fee) specified in the lease agreements (however, concerning lease agreements for thebuilding, warehouse and land (including flat parking lot) are excluded) concluded with the lessees of each
Asset to be Acquired as of the end of November 2019 by 12, rounded down to the nearest million yen(however, concerning those for which agreement has been made by a memorandum, etc. as of the end of
November 2019 that the rent will fluctuate before the acquisition by marimo REIT, reflecting such
fluctuation). Furthermore, for the Assets 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 ofrents specified in the lease agreements concluded with end tenants, rounded down to the nearest million
yen (however, concerning those for which agreement has been made by a memorandum, etc. as of the endof November 2019 that the rent will fluctuate before the acquisition by marimo REIT, reflecting such
fluctuation). In addition, if the master lease type is planned to be changed to a fixed-rent type master leaseagreement upon the acquisition by marimo REIT, “Annual lease revenue” indicates the sum amount ofmonthly rent (including common area fee, but excluding usage fee for parking lot, trunk room and otherattached facilities) specified in the lease agreements, etc. concluded between marimo REIT or the trustee
and the master lease company. Consumption tax, etc. are excluded. The case of ArtizA Awajieki-higashi, forwhich change from a fixed-rent type master lease agreement to a pass-through type master leaseagreement on July 1, 2020 is planned, is treated as a pass-through type master lease agreement.
・ “Security deposit and guarantee money” indicates the sum amount of security deposit and guaranteemoney (rounded down to the nearest million yen) required at the time of moving in, for tenants who havealready moved in. However, if a portion of such has been returned, the abovementioned sum amount of
security deposit and guarantee money differs from the sum amount of security deposit and guaranteemoney held by the lessor as of the end of November 2019. Furthermore, for the Assets to be Acquired,when a master 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. The case of ArtizA Awajieki-higashi,
for which change from a fixed-rent type master lease agreement to a pass-through type master leaseagreement on July 1, 2020 is planned, is treated as a pass-through type master lease agreement.
・ “Leasable area” indicates an area marimo REIT considers leasable in the building (however, in cases ofproperties of land ownership interests, the land) of each Asset to be Acquired.
・ “Occupancy rate” indicates a figure obtained by dividing the total of leased areas shown in each leaseagreement concluded with the tenants of each Asset to be Acquired as of the end of November 2019 by thearea marimo REIT considers leasable in the building of (however, in cases of properties of land ownershipinterests, the land) of each Asset to be Acquired, rounded to the first decimal place. This is on a master
lessee basis in cases of properties for which a fixed-rent type master lease agreement is concluded, and on
an end tenant basis in cases of properties for which a pass-through type master lease agreement isconcluded. The case of ArtizA Awajieki-higashi, for which change from a fixed-rent type master leaseagreement to a pass-through type master lease agreement on July 1, 2020 is planned, is treated as apass-through type master lease agreement.
・ “Master lease company” and “Property management company” refer to the companies that are to be themaster lease company and the property management company after the acquisition for each Asset to be
Acquired. “Master lease type” indicates the type of the master lease (either pass-through type or fixed-renttype) planned after the acquisition.
・ “Trustee” indicates the party that is to be the trustee after the acquisition for each Asset to be Acquired.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

5

・ “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 November 2019.
However, for the Assets to be Acquired, when a master lease agreement is concluded, the end tenant isindicated as “Main tenant” for a property under pass-through type master lease agreement, and the land
lessee (if under subleasing, the land sublessee) is indicated as “Main tenant” when acquisition is of landownership interests only. Furthermore, when a fixed-rent type master lease agreement is concluded withmarimo REIT or the trustee, the master lease company under the agreement is indicated. The case of ArtizA
Awajieki-higashi, for which change from a fixed-rent type master lease agreement to a pass-through typemaster lease agreement on July 1, 2020 is planned, is treated as a pass-through type master leaseagreement.
・ “Number of leasable units” indicates the number of sections marimo REIT considers leasable or the numberof units (number of sections) marimo REIT is able to lease in the Assets to be Acquired or sections that are
for residential units, by unit type.
・ “Notes” indicates matters considered material in light of their impact on the valuation amount, profitability,and disposability of each Asset to be Acquired, as well as matters considered material in relation to theright relations and use, etc. of each Asset to be Acquired as of today.

Property
numberRp-09

Property
nameArtizA Tsurumai

Asset type

Residential

Outline of specified asset
Planned acquisition
January 21, 2020
Type of specified asset Real estate trust beneficiary rightdate
Planned acquisition
Appraisal value
468 million yen
430 million yen
price(Date of value)(November 30, 2019)
Location (indication of
5-17-23 Chiyoda, Naka-ku, Nagoya-shi, Aichi
residential address)
Approximately 4-minute walk from Tsurumai Station on the JR Tokai Chuo Main Line;
Transportation
Approximately 5-minute walk from Tsurumai Station on the Nagoya City Subway Tsurumai Line
Construction
5-1719 Chiyoda, Naka-ku, Nagoya-shi,
Lot number
completion February 6, 2019
Aichi, etc.
date
Building
Structure /Reinforced concrete structure with flat
coverage
80%
Number ofroof / 11F
ratio
floorsFloor-area
Land
Building Gross floor
400%
968.51 m2
ratio
area
Kabushiki Kaisha Nitto Kensetsu
Use district
Commercial district
Designer
First-Class Architect OfficeSite area
213.21 m2
Builder
Kabushiki Kaisha Nitto Kensetsu
Form ofForm of
Proprietorship
Proprietorshipownershipownership
Whether security isNoneestablished
Security deposit andAnnual lease revenue 26 million yen
Security deposit: 2 million yen
guarantee money
Leasable area
841.50 m2
Occupancy rate
96.7%
Master lease company Marimo Co., Ltd.
Master lease typePass-through type
Property management
Mitsubishi UFJ Trust and Banking
Marimo Co., Ltd.
Trusteecompany
Corporation
Planned trust
Planned trust term
January 21, 2020
End of January 2030
establishment dateexpiration date
Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

6

Main tenant

Individual

Appraisal agency

The Tanizawa Sōgō Appraisal Co., Ltd.

Number of leasableunits
PML value(probable maximum loss)

Single: 30 units
7.3%

Notes:
Renting a parking lot outside the site in order to fulfil the obligation to attach a parking lot as set forth in the ordinance on
preventing, coordinating, etc. disputes pertaining to construction of medium- to high-rise buildings in Nagoya City.

Property
number

Property
name

Rp-10

ArtizA Awajieki-higashi

Asset type

Residential

Outline of specified asset
Planned acquisition
date
Planned acquisition
price
Location (indication ofresidential address)
Transportation
Lot number
Building
coverage
ratio
Land

Floor-area
ratio
Use district

Site area
Form ofownership
Whether security isestablished

January 21, 2020

Type of specified asset Real estate trust beneficiary right

1,180 million yen

Appraisal value(Date of value)

1,290 million yen(November 30, 2019)

7-1-29 Sugahara, Higashiyodogawa-ku, Osaka-shi, Osaka
Approximately 6-minute walk from JR-Awaji Station on the JR Osaka Higashi Line
Construction
7-255 Sugahara, Higashiyodogawa-ku,
completion October 4, 2019
Osaka-shi, Osaka
date
Structure /Reinforced concrete structure with flat
60%
Number ofroof / 14F
floorsPortion up to 25 m from boundary with
Building Gross floor
the road on the east side: 300%
2,294.66 m2
area
Portion exceeding 25 m: 200%First-Class Architect Office Sunada
Quasi-industrial district
Designer
Kensetsu Kabushiki Kaisha
856.49 m2
Builder
Sunada Kensetsu Kabushiki Kaisha
Form of
Proprietorship
Proprietorshipownership
None

Annual lease revenue

10 million yen (Note)

Leasable area

2,180.10 m2

Master lease company Marimo Co., Ltd. (Note)
Property management
Marimo Co., Ltd.
company
Planned trust
January 21, 2020
establishment date
Main tenant

Individual

Appraisal agency

Japan Valuers Co., Ltd.

Security deposit andguarantee money
Occupancy rate
Master lease type
TrusteePlanned trust term
expiration date
Number of leasableunits
PML value(probable maximum loss)

Security deposit: 0 million yen
14.3% (Note)
Fixed-rent type, then pass-through typefrom July 1, 2020 (Note)
Mitsubishi UFJ Trust and Banking
Corporation
End of January 2030
Single: 91 units
7.0%

Notes:Part of a structure (U-shaped ditch) is crossing the boundary from the adjacent land on the east side of the land, but
a memorandum on crossing of boundary is planned to be concluded with the adjacent land’s owners.
(Note) With construction completed on October 4, 2019, the occupancy rate as of the end of November 2019 is 14.3%. However, as of the date of thisdocument, the trustee and Marimo plan to (but have yet to) enter into a fixed-rent type master lease agreement for the period from January 21,
2020 to the end of June 2020 of content that (i) Regardless of the rent that Marimo receives from end tenants, Marimo shall pay the trustee rent
equivalent to 95% of the assumed full-occupancy lease revenue, and (ii) If the rent that Marimo receives from end tenants exceeds the amountequivalent to 95% of the assumed full-occupancy lease revenue, Marimo shall pay the trustee that exceeding amount.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

7

Property
numberPlanned acquisition
date
Planned acquisition
price
Location (indication ofresidential address)
Transportation
Lot number

Land

Property
name

Rp-11

Building
coverage
ratio
Floor-area
ratio
Use district

Site area
Form ofownership
Whether security isestablished(Tentative name) ArtizA
Matsumoto
Outline of specified asset

Asset type

Residential

January 21, 2020

Type of specified asset Real estate trust beneficiary right

640 million yen

Appraisal value(Date of value)

665 million yen(November 30, 2019)

1-1-28 Oote, Matsumoto-shi, Nagano
Approximately 6-minute walk from Matsumoto Station on the JR Shinonoi Line and Oito Line
Construction
1-442-2 Oote, Matsumoto-shi, Nagano,completion March 2, 1998
etc.
date
Structure /Reinforced concrete structure with flat
60%
Number ofroof / 10F
floorsBuilding Gross floor
200%
3,103.67 m2 (Note 2)
area
Kinki General Architectural Design Co.,
Quasi-industrial district
DesignerLtd.
1,528.65 m2 (Note 1)
Builder
Kitano Construction Corp.
Form of
Proprietorship
Proprietorshipownership
None

Annual lease revenue

47 million yen

Leasable area
Master lease company
Property managementcompany
Planned trust
establishment date

3,012.53 m2
Marimo Co., Ltd.

Security deposit andguarantee money
Occupancy rate
Master lease type

Marimo Co., Ltd.

TrusteeMain tenant

Relocation Japan, Limited

Appraisal agency

Japan Valuers Co., Ltd.

January 21, 2020

Planned trust term
expiration date
Number of leasableunits
PML value(probable maximum loss)

Security deposit: 7 million yen
78.9%
Pass-through type
Mitsubishi UFJ Trust and Banking
Corporation
End of January 2030
Single: 6 units; Family: 50 units; Store: 1
13.7%

Notes:・ As of the date of this document, the land’s boundaries with all adjacent land are yet to be determined, but ongoing discussions
are underway with the adjacent land’s owners to determine the boundaries. The decision to set as an investment target wasmade in light of the investment criteria and after verifying the impact on operations and degree of risk of the fact that theboundaries are yet to be determined.
・ Part of a fence on the land is crossing the boundary with the adjacent land on the north side and also crossing the boundarywith the adjacent land on the east side, but a memorandum on crossing of boundary is planned to be concluded with eachadjacent land’s owners.
・ The engineering report pointed out that it was not known whether or not periodic inspection of the small-scale private watersupply has been performed for this building. With respect to the matter pointed out, marimo REIT has reached an agreementwith the seller that, at the seller’s responsibility and expense, a statutory inspection shall be implemented by the date of
execution of the transaction and rectifications completed within three months of the date of execution of the transaction.
・ After completion of construction of the building, the necessary change filing procedures had not been implemented when thebuilding underwent construction for conversion of the bicycle storage on the first floor into store use and simultaneously
extension and reduction of the existing store portion in 2008. However, with respect to the extension and reduction
construction work, etc., a report based on the provisions of Article 12, Paragraph 5 of the Building Standards Act was submitted
to and accepted by the City of Matsumoto’s building official in February 2019.
(Note 1) The measured area of the land is 1,668.51 m2, and this area includes the setback portion (50.65 m2).
(Note 2) The building underwent construction for extension (10.91 m2) and reduction (7.694 m2) of the existing store portion in 2008, but the registration ofchange in the heading section for the building pertaining to the extension and reduction has not been completed. The registration of change isplanned to be made at the seller’s expense after the acquisition by marimo REIT.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

8

Property
number

Property
name

Cp-12

(Tentative name) MRR Akita II

Asset type

RetailOutline of specified asset
Planned acquisition
date
Planned acquisition
price
Location (indication ofresidential address)
Transportation
Lot number
Building
coverage
ratio
Floor-area
ratio
Land
Use district

Site area
Form ofownership
Whether security isestablished

January 21, 2020

Type of specified asset Real estate trust beneficiary right

970 million yen

Appraisal value(Date of value)

994 million yen(November 30, 2019)

1-4-63 Barajima, Akita-shi, Akita
Approximately 22-minute walk from Ugo-Ushijima Station on the JR Uetsu Main Line
Construction① March 23, 2004
1-12-1 Barajima, Akita-shi, Akita
completion② April 2, 1985
date
① Steel-frame structure with
Structure /alloy-plated steel plate roofing / 1F
80%
Number of② Steel-frame structure withfloorsgalvanized steel plate roofing / 2F
Gross floor ① 4,304.81 m2
200%② 1,314.39 m2
area① Daiwa House Industry Co., Ltd.
Akita Branch First-Class Architect
Building
Office② Daiwa House Industry Co., Ltd.
Neighborhood commercial district
Designer
Yugen Kaisha Yanagi Sekkei
Jimusho (first extension)
Yugen Kaisha Takahashi Keishi
Sekkei Jimusho (second extension)① Daiwa House Industry Co., Ltd.
Akita Branch
14,902.48 m2
Builder② Daiwa House Industry Co., Ltd.
Form of
Proprietorship
Proprietorshipownership
None

Annual lease revenue

84 million yen

Leasable area
Master lease company
Property managementcompany
Trust establishment
date

5,587.25 m2
Marimo Co., Ltd.

Security deposit andguarantee money
Occupancy rate
Master lease type

Marimo Co., Ltd.

TrusteeMain tenant① XEBIO Co., Ltd.
② Aoyama Trading Co., Ltd.

Trust term expiration
date
Number of leasable
units

Appraisal agency

Japan Valuers Co., Ltd.

PML value

January 21, 2020

(probable maximum loss)

Security deposit: 92 million yen
100%
Pass-through type
Mitsubishi UFJ Trust and Banking
Corporation
End of January 2030
2
① 7.5%② 9.5%

Notes:・ As of the date of this document, the land’s boundaries with all adjacent land are yet to be determined, but ongoing discussions
are underway with the adjacent land’s owners to determine the boundaries. The decision to set as an investment target wasmade in light of the investment criteria and after verifying the impact on operations and degree of risk of the fact that theboundaries are yet to be determined.
・ Part of a fence, floor tile and signboard on the land may each possibly be crossing the boundary with a public road, but if foundto be crossing the boundary, the matter is planned to be dealt with in consultation with road administrators, etc.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

9

Property
number

Property
name

Ct-01

Planned acquisition
date
Planned acquisition
price
Location (indication ofresidential address)
Transportation
Lot number
Building
coverageratio
Land
Floor-area
ratio
Use district
Site area
Form ofownership
Whether security isestablished(Tentative name) MRR Ichihara(land ownership interests)
Outline of specified asset

Asset type

RetailJanuary 21, 2020

Type of specified asset

Real estate trust beneficiary right

700 million yen

Appraisal value(Date of value)

1,190 million yen(November 30, 2019)

6-7 Chigusa, Ichihara-shi, Chiba
Approximately 5.8 km southwest of Goi Station on the JR Uchibo Line and Kominato Line
Construction
6-7 Chigusa, Ichihara-shi, Chiba, etc.
completion
date
Structure /60%
Number offloorsBuilding
Gross floor
200%
area
Category 1 residential district
Designer
18,326.77 m2
BuilderForm of
Proprietorshipownership
None

Annual lease revenue

42 million yen

Leasable area
Master lease company
Property managementcompany
Trust establishment
date

18,326.76 m2
Marimo Co., Ltd.

Security deposit andguarantee money
Occupancy rate
Master lease type

Marimo Co., Ltd.

TrusteeMain tenant

Kabushiki Kaisha Sendo

January 21, 2020

Trust term expiration
date
Number of leasableunits
PML value

Security deposit: 27 million yen
100%
Pass-through type
Mitsubishi UFJ Trust and Banking
Corporation
End of January 2030
5

Appraisal agency
Japan Valuers Co., Ltd.
(probable maximum loss)
Notes:The property’s land is leased by entering into an agreement on establishment of fixed-term land leasehold rights for businesspurposes. The agreement is of the following content.
① Agreement on establishment of fixed-term land leasehold rights for business purposes with Kabushiki Kaisha Chiba Yakuhin
The agreement is for a period of 20 years from August 30, 2005. The matters concerning security deposit, rent and early
contract termination are not disclosed, because consent has not been obtained from Kabushiki Kaisha Chiba Yakuhin. Transfer
of rights and obligations under the agreement to a third party shall be subject to consent being obtained from Kabushiki
Kaisha Chiba Yakuhin.
② Agreement on establishment of fixed-term land leasehold rights for business purposes with Maruya Co., Ltd.
The agreement is for a period of 20 years from August 30, 2005. The matters concerning security deposit, rent and early
contract termination are not disclosed, because consent has not been obtained from Maruya Co., Ltd.
③ Agreement on establishment of fixed-term land leasehold rights for business purposes with Komeri Co., Ltd.
The agreement is for a period of 20 years from December 28, 2005. The matters concerning security deposit, rent and early
contract termination are not disclosed, because consent has not been obtained from Komeri Co., Ltd. Transfer of the land to athird party shall be subject to consent being obtained from Komeri Co., Ltd.
④ Agreement on establishment of fixed-term land leasehold rights for business purposes with Daiwa Royal Co., Ltd.
The agreement is for a period of 20 years from March 22, 2007. The matters concerning security deposit, rent and early
contract termination are not disclosed, because consent has not been obtained from Daiwa Royal Co., Ltd.
Agreement on establishment of fixed-term land leasehold rights for business purposes with Shimamura Co., Ltd.
⑤ The agreement is for a period of 20 years from August 31, 2006. The matters concerning security deposit, rent and early
contract termination are not disclosed, because consent has not been obtained from Shimamura Co., Ltd.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

10

(Note)

The acquisition price of “(Tentative name) MRR Ichihara (land ownership interests)” is calculated in consideration of the surrounding area’s going rate
for ground rent, etc., but the method of calculating by assuming sale as vacant land to a third party upon expiration of the business lease agreement
is adopted as part of the valuation method for the appraisal value. Usually, the vacant land price at the time of valuation is formed by also taking into
consideration the market rate for ground rent, etc. and so there is no large difference between the price calculated based on the surrounding area’s
going rate for ground rent, etc. and the vacant land price. However, in this particular case, its peculiarity in that the surrounding area’s going rate forground rent, etc. is particularly low relative to the vacant land price at the time of valuation has led to appraisal value exceeding acquisition price toform a large discrepancy between the two prices. As of the date of this document, there is no plan to sell the land upon expiration of the agreement.

Property
number

Property
name

Ct-02

Planned acquisition
date
Planned acquisition
price
Location (indication ofresidential address)
Transportation
Lot number
Building
coverageratio
Land
Floor-area
ratio
Use district
Site area
Form ofownership
Whether security isestablished(Tentative name) MRR Kitamoto
Asset type(land ownership interests)
Outline of specified asset

January 21, 2020

Type of specified asset

1,030 million yen

Appraisal value(Date of value)

RetailReal estate trust beneficiary right(Note 1)
1,120 million yen(November 30, 2019)4-46 Fukai, Kitamoto-shi, Saitama
Approximately 1.9 km north of Kitamoto Station on the JR Takasaki Line
Construction
4-46-1 Fukai, Kitamoto-shi, Saitama,completion etc.
date
Structure /60%
Number offloorsBuilding
Gross floor
200%
area
Area with no designation
Designer
11,452.94 m2
BuilderForm of
Proprietorshipownership
None

Annual lease revenue

Not disclosed (Note 2)

Leasable area
Master lease company
Property managementcompany
Trust establishment
date

11,451.00 m2
Marimo Co., Ltd.

Security deposit andguarantee money
Occupancy rate
Master lease type

Marimo Co., Ltd.

TrusteeMain tenant

K’S HOLDINGS CORPORATION

Appraisal agency

The Tanizawa Sōgō Appraisal Co., Ltd.

January 21, 2020

Trust term expiration
date
Number of leasableunits
PML value(probable maximum loss)

Not disclosed (Note 2)
100%
Pass-through type
Mitsubishi UFJ Trust and Banking
Corporation
End of January 2030
1-

Notes:The property’s land is leased by entering into an agreement on establishment of fixed-term land leasehold rights for businesspurposes as land ownership interests in order to own the building to be used for business by K’S HOLDINGS CORPORATION. The
agreement is for a period of 21 years from June 11, 2019. The matters concerning security deposit, rent and early contract
termination are not disclosed, because consent has not been obtained from K’S HOLDINGS CORPORATION.
(Note 1) The sale and purchase agreement with the seller for the property provides that if a real estate management and disposition trust agreement withthe property as trust asset is not concluded by the date of execution of the agreement for grounds not attributable to the seller, marimo REIT shallpurchase the property in kind in place of the real estate trust beneficiary right for the same amount and other substantially equivalent contract
terms and conditions as the purchase price and other contract terms and conditions specified in the agreement.
(Note 2) Not disclosed, because consent has not been obtained from the tenant.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

11

5. Overview of Planned Seller(1) “ArtizA Tsurumai,” “ArtizA Awajieki-higashi,” “(Tentative name) ArtizA Matsumoto,” “(Tentative name) MRR Akita
II,” and “(Tentative name) MRR Ichihara (land ownership interests)”
(1)

Name

Marimo Co., Ltd.

(2)

Location
Name and title ofrepresentative

1-17-23 Kogokita, Nishi-ku, Hiroshima-shi, Hiroshima(3)

Makoto Fukagawa, President(4)

Business description(5)

CapitalPlanning, development, design, supervision and marketing of for-sale residential
properties, real estate securitization business, and overseas condominium sales
business
100 million yen (as of the end of July 2019)(6)

Date establishedMarch 27, 1969(7)

Net assets

21,056 million yen (based on the balance sheet as of the end of July 2019)(8)

Total assets
98,419 million yen (based on the balance sheet as of the end of July 2019)
Major shareholders and(9)Marimo Holdings Co., Ltd.: 100%
shareholding ratio(10) Relationship between marimo REIT / Asset Manager and the company
Capital ties
As of today, the company holds approximately 10.5% (13,950 units) of the number ofmarimo REIT’s investment units issued and outstanding. SMBC Nikko Securities Inc.,an underwriter of the primary offering stated in “Notice Concerning Issuance of New
Investment Units and Secondary Offering of Investment Units” dated today, isscheduled to allot 2,081 units to the company, which marimo REIT has designated as aparty to which investment units are to be sold. In the event of such, the company isscheduled to hold approximately 10.5% of the total number of investment units issued
and outstanding. In addition, the company is a subsidiary of Marimo Holdings Co.,
Ltd., which holds 100% stake in the Asset Manager.
Personnel ties
As of today, two of the officers and employees of the Asset Manager are seconded
from the company.
Business ties
The company has entered into a sponsor pipeline and support agreement (asamended) with marimo REIT and the Asset Manager. In addition, the company hasentered into a master lease agreement and property management agreement withmarimo REIT.
Disposition of real estate trust beneficiary right (ArtizA Higashi-Shimada) to marimo
REIT for 700 million yen took place on January 4, 2019 based on a trust beneficiaryright sale and purchase agreement entered together with marimo REIT on January 4,
2019.
Concerning related parties
The company is a subsidiary of the parent company of the Asset Manager, and falls
under the category of related parties. In addition, the company thus falls under the
category of interested persons, etc. defined in the Investment Trusts Act.
Furthermore, since the company is an interested person, etc. defined in the rules ontransactions with interested persons, etc., which are the internal rules set by the
Asset Manager, the Asset Manager has followed the decision-making procedure
specified in the rules on transactions with interested persons, etc. upon conducting
the transaction to acquire the Assets to be Acquired.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

12

(2)

(Tentative name) MRR Kitamoto (land ownership interests)

(1)

Name

Godo Kaisha Kitamoto Project(2)

Location
Name and title ofrepresentative(4)

Business description(5)

Capital1-6-2 Ginza, Chuo-ku, Tokyo
Representative member: Ippan Shadan Hojin Kitamoto Kaihatsu Kenkyukai
Executor of duties: Mamoru Hiramatsu
Acquisition, holding and disposition of real estate; leasing and management of realestate; acquisition, holding, management and disposition of real estate trust
beneficiary rights; acquisition, holding and disposition of shares, equity investment,
specified equity, etc. in companies whose purpose is the businesses listed in thepreceding items
200,000 yen(6)

Date established

August 15, 2018(7)

Net assets

Not disclosed (Note)(8)

Total assets
Major shareholders andshareholding ratio
Relationship between
marimo REIT / AssetManager and the operating
partnerNot disclosed (Note)

(3)

(9)

(10)

Not disclosed (Note)
As of today, the seller has no capital ties, personnel ties or business ties to be statedwith marimo REIT and the Asset Manager. The seller also does not fall under the
category of related parties of marimo REIT or the Asset Manager.

(Note) Not disclosed, because consent has not been obtained from the seller.

6. Transactions with Interested Persons, etc.
Marimo, the planned seller of the Assets to be Acquired excluding “(Tentative name) MRR Kitamoto (landownership interests),” is a subsidiary of Marimo Holdings Co., Ltd. (100% stake), the parent company of the AssetManager. Marimo thus falls under the category of interested persons, etc. defined in Article 201-2 of theInvestment Trusts Act and Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations, and also falls under the category of interested persons, etc. defined in the rules ontransactions with interested persons, etc., which are the internal rules set by the Asset Manager. The buyer withwhich the status transfer agreement has been concluded for “(Tentative name) MRR Kitamoto (land ownershipinterests),” too, falls under the category of interested persons, etc. Therefore, the Asset Manager has followed theprocedure 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 held on January 6, 2020).

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

13

7.

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
with special relationship (the “Persons of Special Interest”) is as follows (①: Name of the company or name of theperson, ②: Relationship with Persons of Special Interest, ③: Acquisition particulars and reason).
Property name
(Location)

ArtizA Tsurumai

ArtizA Awajieki-higashi(Tentative name) ArtizA
Matsumoto(Tentative name) MRR Akita II(Tentative name) MRR Ichihara(land ownership interests)(Tentative name) MRR
Kitamoto (land ownershipinterests)(Note 1)
(Note 2)Previous owner or trust beneficiary

Second previous owner①, 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.
(Note 1)
September 2017
① 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.
(Note 1)February 2018
① Marimo Co., Ltd.
② Sister company of the Asset Manager③ Acquired since it can expect stable
operations over a medium- to long-term,
after evaluating the market andmarketability.
574 million yen
November 2019
① Marimo Co., Ltd.
② Sister company of the Asset Manager③ Acquired since it can expect stable
operations over a medium- to long-term,
after evaluating the market andmarketability.
850 million yen
September 2019
① Marimo Co., Ltd.
② Sister company of the Asset Manager③ Acquired since it can expect stable
operations over a medium- to long-term,
after evaluating the market andmarketability.
620 million yen
March 2019
Other than Persons of Special Interest-

Acquisition (transfer) price
Acquisition (transfer) timing
Other than Persons of Special
Interest

Other than Persons of Special
Interest

Other than Persons of Special
Interest

Other than Persons of Special
Interest

Other than Persons of Special
Interest-

The description of acquisition price from the second previous owner, etc. is omitted, because the period from the previous owner’s property
acquisition to sale to marimo REIT is more than one year.
In the acquisition of “(Tentative name) ArtizA Matsumoto,” “(Tentative name) MRR Akita II” and “(Tentative name) MRR Ichihara (land ownershipinterests),” no intermediation fees, special purpose company arrangement expenses, etc. were paid by marimo REIT to Marimo Co., Ltd.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

14

8.

Outline of Intermediation
There is no intermediary appointed on the marimo REIT side pertaining to the above transaction.

9.

Settlement Method, etc.
The entire amount is scheduled to be paid on the planned acquisition date.

10. Future Outlook
For the operating and dividend forecasts of marimo REIT for the fiscal period ending June 2020 (from January 1,
2020 to June 30, 2020) and the fiscal period ending December 2020 (from July 1, 2020 to December 31, 2020),
please refer to “Notice Concerning Revision of Operating and Dividend Forecasts for the Fiscal Period Ending June
2020, and Operating and Dividend Forecasts for the Fiscal Period Ending December 2020” dated today.
11. Summary of Appraisal Statements
Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyDate of value
Items

ArtizA Tsurumai
468 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
November 30, 2019

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

Details (Unit: thousand yen)
468,000

472,000

Summary, etc.
Estimated by correlation of the value based on the
direct capitalization method with the value basedon the DCF method
Assessed as the net income recognized as being
stable over the medium to long term, discounted
by the capitalization rate

28,528① Potential gross income

29,987② Vacancy loss, etc.

1,458(2) Operating expenses

7,235

a. Maintenance andmanagement expenses

1,009

b. Water and utility fees302

c. Repair costs

910

d. Property management fee

831

e. Tenant solicitation
expenses, etc.

539

Assessed after taking into account the medium- tolong-term competitiveness of the subject real
property, based on the new rent levels for similar
real property within the same supply and demandarea, 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 theengineering report and the levels of similar real
property from the medium- to long-term
perspective. In addition, assessed costs forrestoration to original condition after taking into
consideration the move-out rate, etc.
Set based on the property managementagreement, etc.
Assessed after taking into consideration tenantsolicitation expenses assessed based on the levels
for similar real property, the property
management agreement, etc.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

15

f. Taxes and other publiccharges

2,449

g. Non-life insurance
premiums

137

h. Other expenses

1,055(3) Net operating income (NOI)(4) Revenue from investment oflump sum payments

21,293548

Net income (NCF)

20,766

Capitalization rate

4.4%

Value based on DCF method

466,000

Discount rate

4.5%

Terminal capitalization rate

4.6%

Other matters taken into considerationby the appraisal agency when
performing the appraisal

Assessed using an investment yield of 1.0%

21(5) Capital expenditures

Cost method value
Land ratio
Building ratio

For the land, assessed as residential land based on
the value assessed for 2019. For the building,assessed based on the building replacement cost,
etc.
Assessed based on the standard premium rate
assumed from insurance premiums for similar real
property, etc.
Assessed based on the levels of expenses for
similar real property, etc.

Assessed referring to the figure stated in theengineering report and the levels of similar real
property from the medium- to long-term
perspective
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
Assessed using the yield of property with similar
use that is located in an area with the lowest risk
as a standard and comprehensively taking into
account the individual characteristics of thesubject real property
Assessed on the basis of capitalization rate and byincorporating future unpredictability

564,000
41.8%
58.2%
In light of the value forming process and request purpose in which market participantsvalue profitability in the subject real property, as well as the typology, used the value
based on income approach that appropriately reflects profitability of investment forinvestors as a standard and verified using the cost method value, deciding on the value
based on income approach as the appraisal value.

Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyDate of value
Items

ArtizA Awajieki-higashi
1,290 million yen
Japan Valuers Co., Ltd.
November 30, 2019

Value based on income approach

Details (Unit: thousand yen)

1,290,000

Value based on direct capitalization
method1,300,000(1) Operating revenue① Potential gross income

76,43180,407

Summary, etc.
In light of the characteristics of each method andthe degree of equilibrium between the two values
based on income approach, estimated using thevalue based on the DCF method as a standard andverifying with the value based on the direct
capitalization method
Assessed as the standardized net income
recognized as being stable over the medium tolong term, discounted by the capitalization rate
Recorded after taking into account the medium-

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

16

② Vacancy loss, etc.

3,976(2) Operating expenses

17,995a. Maintenance andmanagement expenses

2,364

b. Water and utility fees

1,027

c. Repair costs

1,552

d. Property management fee

2,212

e. Tenant solicitation
expenses, etc.

3,018

f. Taxes and other publiccharges

6,810

g. Non-life insurance
premiums

338

h. Other expenses

671(3) Net operating income (NOI)(4) Revenue from investment oflump sum payments

58,436(5) Capital expenditures

1,225

Net income (NCF)

57,210to long-term competitiveness of the subject real
property, based on the current rent levels, the
new rent levels for similar real property within thesame supply and demand area and their trends
Recorded taking into consideration thecompetitiveness of the subject real property, etc.,
based on the actual vacancy rate and the standard
vacancy rate of similar real property
Assessed after taking into consideration
maintenance and management expenses assessed
based on the levels for similar real property
Assessed based on the levels of water and utility
fees for similar real property
Recorded costs for restoration to original
condition for exclusive area portions, in addition
to 30% of the 12-year average amount of repair
and renewal costs in the engineering report
Assessed at 3.0% of effective gross income
Assessed after taking into consideration tenantsolicitation expenses assessed based on the levels
for similar real property, etc.
For the land, assessed as residential land based on
the value assessed for 2019. For the building,assessed based on the building replacement cost,
etc.
Assessed based on the standard premium rate
assumed from insurance premiums for similar real
property, etc.
Assessed based on the levels of expenses for
similar real property, etc.
Assessed investment income using an investment
yield of 1.0%
Assessed at 70% of the 12-year average amount of
repair and renewal costs in the engineering report－

Assessed using discount rate analysis as a premise,incorporating the prospects for net income thatare not factored into the discount rate, etc., andreferring to the yield of similar real property

Capitalization rate

4.4%

Value based on DCF method

1,270,000

Discount rate

4.2%

Terminal capitalization rate

4.6%

Cost method value
Land ratio
Building ratio
Other matters taken into considerationby the appraisal agency when
performing the appraisal

Assessed by combining the method of calculatingby incorporating the individual characteristics ofthe real property into the yield of financial assets
and the method of calculating from a comparisonof cases of transaction of similar real property,
and further referring to the results of The
Japanese Real Estate Investor Survey
Assessed by identifying the risks of comparison
with capitalization rate from the characteristics ofthe real estate market, potential of the subject
real property, etc.

1,560,000
52.2%
47.8%
No applicable matters.

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

17

Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyDate of value
Items(Tentative name) ArtizA Matsumoto
665 million yen
Japan Valuers Co., Ltd.
November 30, 2019

Value based on income approach

Value based on direct capitalization
method(1) Operating revenue

Details (Unit: thousand yen)

665,000

664,000
59,192① Potential gross income

64,632② Vacancy loss, etc.

5,440(2) Operating expenses

14,505a. Maintenance andmanagement expenses

1,972

b. Water and utility fees

1,315

c. Repair costs

3,190

d. Property management fee

1,763

e. Tenant solicitation
expenses, etc.

1,867

f. Taxes and other publiccharges

4,033

g. Non-life insurance
premiums

253

h. Other expenses

109(3) Net operating income (NOI)(4) Revenue from investment oflump sum payments

44,687(5) Capital expenditures

4,375

Net income (NCF)

40,387

Capitalization rate

Summary, etc.
In light of the characteristics of each method andthe degree of equilibrium between the two values
based on income approach, estimated bycorrelation of the value based on the direct
capitalization method with the value based on the
DCF method
Assessed as the net income recognized as being
stable over the medium to long term, discounted
by the capitalization rate
Recorded after taking into account the mediumto long-term competitiveness of the subject real
property, based on the current rent levels, the
new rent levels for similar real property within thesame supply and demand area and their trends
Recorded taking into consideration thecompetitiveness of the subject real property, etc.,
based on the actual vacancy rate and the standard
vacancy rate of similar real property
Assessed after taking into consideration
maintenance and management expenses assessed
based on the levels for similar real property
Assessed based on the levels of water and utility
fees for similar real property
Recorded costs for restoration to original
condition for exclusive area portions, in addition
to 30% of the 12-year average amount of repair
and renewal costs in the engineering report
Assessed at 3.0% of effective gross income
Assessed after taking into consideration tenantsolicitation expenses assessed based on the levels
for similar real property, etc.
Assessed based on the value assessed for fiscal
2019
Assessed based on the standard premium rate
assumed from insurance premiums for similar real
property, etc.
Assessed based on the levels of expenses for
similar real property, etc.
Assessed using an investment yield of 1.0%75

Assessed at 70% of the 12-year average amount of
repair and renewal costs in the engineering report
Assessed using discount rate analysis as a premise,incorporating the prospects for net income thatare not factored into the discount rate, etc., andreferring to the yield of similar real property

5.7%

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

18

Value based on DCF method

665,000

Discount rate

5.5%

Terminal capitalization rate

5.9%

Cost method value
Land ratio
Building ratio
Other matters taken into considerationby the appraisal agency when
performing the appraisal

Assessed by combining the method of calculatingby incorporating the individual characteristics ofthe real property into the yield of financial assets
and the method of calculating from a comparisonof cases of transaction of similar real property,
and further referring to the results of The
Japanese Real Estate Investor Survey
Assessed by identifying the risks of comparison
with capitalization rate from the characteristics ofthe real estate market, potential of the subject
real property, etc.

444,000
66.2%
33.8%
No applicable matters.

Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyDate of value
Items(Tentative name) MRR Akita II
994 million yen
Japan Valuers Co., Ltd.
November 30, 2019

Value based on income approach

Value based on direct capitalization
method(1) Operating revenue

Details (Unit: thousand yen)

994,000

996,000

Summary, etc.
In light of the characteristics of each method andthe degree of equilibrium between the two values
based on income approach, estimated using thevalue based on the DCF method as a standard andverifying with the value based on the direct
capitalization method
Assessed as the standardized net income
recognized as being stable over the medium tolong term, discounted by the capitalization rate

82,469① Potential gross income

84,151② Vacancy loss, etc.

1,682(2) Operating expenses
a. Maintenance andmanagement expenses
b. Water and utility fees

13,787

Assessed after taking into account the medium- tolong-term competitiveness of the subject real
property, based on the current leasing status, the
new rent levels for similar real property within thesame supply and demand area, their trends, etc.
Recorded taking into consideration thecompetitiveness of the subject real property, etc.,
based on the actual vacancy rate and the standard
vacancy rate of similar real property－－

c. Repair costs

1,661

d. Property management fee

2,473

e. Tenant solicitation
expenses, etc.

343

f. Taxes and other public

8,378

Assessed at 30% of the 12-year average amount of
repair and renewal costs in the engineering report
Assessed at 3.0% of effective gross income
Assessed after taking into consideration tenantsolicitation expenses assessed based on the levels
for similar real property, etc.
Assessed based on the value assessed for fiscal

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

19

charges
g. Non-life insurance
premiums

683

h. Other expenses

247(3) Net operating income (NOI)(4) Revenue from investment oflump sum payments

68,681(5) Capital expenditures

3,877

Net income (NCF)

65,705

Assessed investment income using an investment
yield of 1.0%
Assessed at 70% of the 12-year average amount of
repair and renewal costs in the engineering report

901

Capitalization rate

6.6%

Value based on DCF method

992,000

Discount rate

6.4%

Terminal capitalization rate

6.8%

Cost method value
Land ratio
Building ratio
Other matters taken into considerationby the appraisal agency when
performing the appraisal

2019
Assessed based on the standard premium rate
assumed from insurance premiums for similar real
property, etc.
Assessed based on the levels of expenses for
similar real property, etc.

Assessed using discount rate analysis as apremise, incorporating the prospects for net
income that are not factored into the discountrate, etc., and referring to the yield of similar real
property
Assessed by combining the method of calculatingby incorporating the individual characteristics ofthe real property into the yield of financial assets
and the method of calculating from a comparisonof cases of transaction of similar real property,
and further referring to the results of The
Japanese Real Estate Investor Survey
Assessed by identifying the risks of comparison
with capitalization rate from the characteristics ofthe real estate market, potential of the subject
real property, etc.

1,110,000
81.4%
18.6%
No applicable matters.

Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyDate of value
Items(Tentative name) MRR Ichihara (land ownership interests)
1,190 million yen
Japan Valuers Co., Ltd.
November 30, 2019

Value based on income approach

Details (Unit: thousand yen)

1,190,000

Value based on direct capitalization
method1,190,000(1) Operating revenue① Potential gross income② Vacancy loss, etc.
(2) Operating expenses

42,453－－
7,259

Summary, etc.
In light of the characteristics of each method andthe degree of equilibrium between the two values
based on income approach, estimated bycorrelation of the value based on the direct
capitalization method with the value based on the
DCF method
Assessed as the net income recognized as being
stable over the medium to long term, discounted
by the capitalization rate

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

20

a. Maintenance andmanagement expenses
b. Water and utility feesc. Repair costs
d. Property management feee. Tenant solicitation
expenses, etc.
f. Taxes and other publicchargesg. Non-life insurance
premiums
h. Other expenses(3) Net operating income (NOI)(4) Revenue from investment oflump sum payments(5) Capital expenditures
Net income (NCF)

－
－
－
250

Recorded the projected amount－
Assessed based on the actual amount for fiscal
2019

7,009
－
－
35,194

Assessed using an investment yield of 1.0%274－
35,468

Assessed using discount rate analysis as apremise, incorporating the prospects for net
income that are not factored into the discountrate, etc., and referring to the yield of similar real
property

Capitalization rate

4.8%

Value based on DCF method

1,180,000

Discount rate

Assessed by combining the method of calculatingby incorporating the individual characteristics ofthe real property into the yield of financial assets
and the method of calculating from a comparisonof cases of transaction of similar real property,
and further referring to the results of The
Japanese Real Estate Investor Survey

4.2%

Terminal capitalization rate
Cost method value
Land ratio
Building ratio
Other matters taken into considerationby the appraisal agency when
performing the appraisal－－－－
No applicable matters.

Summary of Appraisal Statements
Property nameAppraisal value
Name of appraisal
agencyDate of value
Items(Tentative name) MRR Kitamoto (land ownership interests)
1,120 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
November 30, 2019

Value based on income approach

Value based on direct capitalization
method(1) Operating revenue① Potential gross income② Vacancy loss, etc.
(2) Operating expenses

Details (Unit: thousand yen)

1,120,000

Summary, etc.
Estimated the value based on income approach
using the value based on the DCF method as astandard and verifying with the value based on the
direct capitalization method (modified Inwood
method)1,120,000
Not disclosed (Note)
Not disclosed (Note)
Not disclosed (Note)
3,453

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

21

a. Maintenance andmanagement expenses
b. Water and utility feesc. Repair costs－－－

d. Property management fee

250

e. Tenant solicitation
expenses, etc.

－

f. Taxes and other publiccharges

3,203

g. Non-life insurance
premiums
h. Other expenses(3) Net operating income (NOI)(4) Revenue from investment oflump sum payments(5) Capital expenditures
Net income (NCF)

Assessed based on the property managementagreement

For land, assessed based on fixed asset tax
roadside land prices, standard residential land
prices, etc.

－－
50,018
Assessed using an investment yield of 1.0%534－
50,553This is a reference value calculated based on “landownership interests’ net income divided by thevalue based on the direct capitalization method(Inwood method)” and is not the capitalization
rate specified in the real estate appraisal
standards

Capitalization rate

4.5%

Value based on DCF method

1,120,000

Discount rate

4.4%

Terminal capitalization rate

4.5%

Assessed based on the method of comparison
with transaction yield for cases of transaction ofland
ownership
interests,
etc.,
and
comprehensively taking into account the current
lease agreement details, real estate investment
market trends, etc.
Assessed as shown to the left using theabovementioned discount rate as the basis and byincorporating the feasibility of sale as vacant land,
etc.

Cost method value－
Land ratio－
Building ratio－
Other matters taken into consideration
Taking into consideration the value forming process and request purpose in whichby the appraisal agency whenmarket participants value profitability in the subject real property, etc., decided on theperforming the appraisal
value based on income approach as the appraisal value.
(Note) The item is not disclosed, because contains information for which consent for disclosure has not been obtained from the tenant or information fromwhich the concerned information can be derived, meaning that any disclosure of such could undermine the relationship of trust with the tenant, etc.
and thereby lead to marimo REIT being sued for damages for breach of the duty of confidentiality or other disadvantages, ultimately undermining
the interests of unitholders.

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

Disclaimer: This press release is a document for making a public announcement concerning acquisition of domestic real estate trust
beneficiary rights and accompanying commencement of leasing of marimo REIT, and has not been prepared for the purpose ofsoliciting investment. Investors should ensure that they have read the prospectus for the issuance of new investment units andsecondary offering of investment units, as well as any amendments thereto, prepared by marimo REIT before investing and makeinvestment decisions at their own discretion.

22