August 18, 2022
To All Concerned Parties
Real Estate Investment Trust Securities Issuer
1-1-21 Toranomon, Minato-ku, Tokyo
marimo Regional Revitalization REIT, Inc.
Representative: Takashi Kitagata, Executive Director(Securities Code: 3470)
Asset Manager
Marimo Asset Management Co., Ltd.
Representative: Takashi Kitagata, CEOContact:
Katsuhiro Shimada, Financial Management Officer
TEL: +81-3-6205-4755
Notice Concerning Disposition of Domestic Real Estate Trust Beneficiary Rightmarimo Regional Revitalization REIT, Inc. (“marimo REIT”) hereby announces that Marimo Asset Management Co., Ltd.,
to which marimo REIT entrusts management of its assets (the “Asset Manager”), decided today on the disposition (the“Disposition”) of domestic real estate trust beneficiary right as described below.
1. Overview of the Disposition
Name of asset to be disposed
Planned disposition price (Note 2)

ArtizA Tsuzuki Chuo Koen
First disposition (50% quasi co-ownership interest): 665 million yen
Second disposition (50% quasi co-ownership interest): 665 million yen
Total: 1,330 million yen (Each disposition is planned to be made in the form ofquasi co-ownership interest (50% quasi co-ownership interest each) on two
separate dates (the “Disposition in Parts”), and the planned disposition pricefor each planned disposition date is as stated above.)Book value (Note 3)
1,066 million yen
Gain from sale (estimate) (Note4) First disposition (50% quasi co-ownership interest): 132 million yen
Second disposition (50% quasi co-ownership interest): 132 million yen
Buyer
Please refer to “4. Overview of Buyer” later in this document.
Intermediation
Yes (Note 5)
Disposition decision dateAugust 18, 2022
Sales contract conclusion dateAugust 26, 2022Planned disposition date
First disposition (50% quasi co-ownership interest): September 30, 2022
(delivery and settlement date)
Second disposition (50% quasi co-ownership interest): January 11, 2023
(delivery and settlement date)Settlement method
Payment for the portion in accordance with the quasi co-ownership interest to
be disposed and delivery of such on each disposition date.
(Note 1) Amounts are rounded down to the nearest million yen.
(Note 2) “Planned disposition price” does not include the reimbursed amount equivalent to fixed asset tax and city
planning tax, consumption tax, etc.
(Note 3) “Book value” indicates the amount as of the end of the fiscal period ended June 2022 (12th fiscal period).
(Note 4) “Gain from sale (estimate)” is the amount calculated by deducting the book value from the planned disposition
price. The actual gain/loss from sale may differ from the gain from sale (estimate) stated above.
(Note 5) As of today, the intermediary does not fall under the category of interested persons, etc. defined in the Act
on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) nor of interested
persons, etc. defined in the rules on transactions with interested persons, etc. set by the Asset Manager.

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

Reason for the Disposition
In constructing its portfolio, marimo REIT considers disposition or replacement of properties when such is judged
to be appropriate over the medium to long term by taking into account market conditions. As for the asset to bereplaced, marimo REIT considers disposition for properties of which profitability, etc. assumed at the time ofacquisition cannot be expected as well as for properties facing concerns over future competitiveness due to change
in the supply-demand balance and competitive environment of the area. Upon comprehensively judging the effects
of replacement over the medium to long term, marimo REIT decides on the replacement of the asset.
ArtizA Tsuzuki Chuo Koen (the “Property”), which is the asset to be disposed, has competitiveness appropriate
for a residence located in Yokohama City, Kanagawa Prefecture, in terms of tenant leasing, providing walking accessto Center-Minami Station on the Yokohama Municipal Subway Line. On the other hand, 33 years have elapsed since
its completion, and an increase in life cycle cost, including repair expenses and capital expenditure, is expectedgoing forward. marimo REIT has decided on the disposition to the buyer this time around because disposition at aprice significantly surpassing the book value and the most recent real estate appraisal value can be expected, andit was judged that returning gain from sale to unitholders will contribute to the maximization of benefits ofunitholders.
While marimo REIT will make efforts to acquire assets using the proceeds from the disposition of the Property,
it has decided to dispose the Property on two separate dates, each in the form of quasi co-ownership interest of
the beneficiary right, by comprehensively taking into account factors such as the impact of the decrease in operating
revenue from leasing due to the disposition of the Property on the operating results of marimo REIT, considering
the possibility of acquisition of assets for replacement or assumed schedule of such acquisition.

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3. Details of the Asset to be Disposed
Name of asset to be disposed
ArtizA Tsuzuki Chuo Koen
Type of specified asset
Real estate trust beneficiary right
Trustee
Mitsubishi UFJ Trust and Banking Corporation
Contract period
From March 29, 2016, to March 31, 2026
Location Lot number
4-25-4 Edahigashi, Tsuzuki Ward, Yokohama City, Kanagawa, etc.
(Note 1)
Indication of residential 4-25-5 Edahigashi, Tsuzuki Ward, Yokohama City, Kanagawa
address
Land
Form of ownership
Proprietorship
Use
Category 2 medium-to-high-rise exclusive residential district
Site area (Note 1)
2,707.36 m2
Building coverage ratio 60%
Floor-area ratio
150%
Building
Form of ownership
Proprietorship
Main use
Residence
Completion date
April 27, 1989
Gross floor area
3,913.86 m2
Structure
Reinforced concrete structure, flat roof, 5 floors
Acquisition price
1,050 million yen
Planned disposition price
1,330 million yen
Book value (Note 3)
1,066 million yen
Difference between planned
264 million yendisposition price and book value
Appraisal Appraisal method
Appraisal by Daiwa Real Estate Appraisal Co., Ltd.
value
Appraisal value
1,150 million yen
Date of value
June 30, 2022
Details of lease (Note 4)
Master lease company
Marimo Co., Ltd.
Total number of tenants
58
Total lease revenue (annual)
72 million yen
Security deposit and guarantee
8 million yen
money
Total leased area
3,492.23 m2
Total leasable area
3,731.75 m2
Change in occupancy rate
June 30,December 31, June 30,December 31, June 30,2020
2020
2021
2021
2022
95.2%88.5%
93.6%
92.1%
93.6%
Other special notes－(Note 1) “Location (lot number)” and “Site area” are based on the description in the real estate registry.
(Note 2) The area of the owned land is indicated.
(Note 3) “Book value” indicates the amount as of the end of the fiscal period ended June 2022 (12th fiscal period).
(Note 4) “Total number of tenants” indicates the number of end tenants for the Property as of today.
“Total lease revenue” indicates an amount obtained by multiplying the total monthly rent (sum of rent andcommon area fee. However, when the amount equivalent to the parking fee is included in the rent in the leaseagreements, such amount will be included) in the currently effective lease agreements concluded with end
tenants for the property by 12 (rounded down to the nearest million yen).
“Security deposit and guarantee money” indicates the amount of security deposit and guarantee money(rounded down to the nearest million yen) in the above lease agreements.
“Total leased area” indicates the area leased to end tenants.
“Total leasable area” indicates the total area that can be leased.

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

5.

Outline of Intermediation(1) Overview of Intermediary
(1)
Name
(2)
Location(3)
Name and title of representative(4)
Business description(5)
Capital(6)Date established(7)
Net assets(8)
Total assets
Major shareholders and(9)shareholding ratio(10)

Relationship between marimo
REIT/Asset Manager and thecompany

Colliers International Japan KK
2-2-3 Uchisaiwaicho, Chiyoda-ku, Tokyo
Yukihiro Ogasawara, Managing Director & Chairman
Real estate investment brokerage (domestic and overseas), etc.
10 million yen
December 20, 2016
Not disclosed (Note)
Not disclosed (Note)
Not disclosed (Note)
As of today, the intermediary has no capital ties, personnel ties orbusiness ties to be stated with marimo REIT and the AssetManager. The intermediary also does not fall under the categoryof related parties of marimo REIT or the Asset Manager.

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

(2) Amount of Intermediary Fee
Intermediary fee: 39,900,000 yen
6.

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

7.

Future Outlook
For the outlook of the management status for the fiscal period ending December 2022 (from July 1, 2022, toDecember 31, 2022) and the fiscal period ending June 2023 (from January 1, 2023, to June 30, 2023) after thedisposition of the asset to be disposed, please refer to “(REIT) Financial Report for the Fiscal Period Ended June2022” dated today.
Since the Disposition will take place on September 30, 2022, and January 11, 2023, there is no impact on themanagement status for the fiscal period ended June 2022 (12th fiscal period).

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8.

Summary of Appraisal Statements

Property name

ArtizA Tsuzuki Chuo Koen

Appraisal value
Name of appraisal agency
Date of value

1,150 million yen
Daiwa Real Estate Appraisal Co., Ltd.
June 30, 2022

Items
Value based on income approach

Details
1,150,000,000

Value based on direct capitalization
method1,160,000,000

Operating Revenue
Potential gross income

77,743,000
81,797,000

Vacancy loss, etc.

4,053,000

Operating Expenses
Maintenance andmanagement expenses

19,154,000
2,138,000

Utility costs

541,000

Repair costs

572,000

Costs to restore
exclusively owned
section
Property managementfee

2,948,000

Tenant solicitation

2,246,000

2,311,000

5Summary, etc.
Deeming that value based on income approach
which accurately replicates the pricedetermination process from earnings aspects
better matches the market, assessed by adopting
value based on income approach while using cost
method value only for reference.
Assessed net income that is stable over the
medium to long term, discounted by thecapitalization rate.
Assessed after taking into account the mediumto long-term competitiveness of the subject realproperty, based on the current rent level, the
new rent level for similar real property within thesame supply and demand area and their trends.
Assessed taking into consideration thecompetitiveness of the subject real property,
etc., based on the actual vacancy rate of thesubject real property and the standard vacancy
rate of similar real property.
Judging that the details of the building
management are generally at a standard level,
assessed through verification using the level ofmaintenance and management expenses for
similar real property, based on the amount ofcontract, etc.
Assessed through verification using the level ofutility costs for similar real property, based on
the past actual results.
Assessed by judging the annual average repair
costs stated in the ER as being appropriate fromthe verification using the level of repair costs for
similar real property.
Assessed tenant replacement costs taking into
consideration the turnover rate and vacancy
rate.
Judging that the details of the property
management contract are generally at a standard
level, assessed through verification using thelevel of property management fee for similar real
property, based on the contract, etc.
Assessed based on the level for similar real

expenses

Taxes and other publicchargesNon-life insurance
premiums

5,857,000

Other expense

2,302,000

Net Operating Income (NOI)
Revenue frominvestment of lumpsum payments

58,588,000
114,000

Capital expenditures

4,304,000

Net Income (NCF)
Capitalization rate

Value based on DCF method
Discount rate

236,000

54,399,000
4.7%

1,140,000,000
4.5%

Terminal capitalization rate

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

4.9%

property referring to the past actual results ofthe portion subject to replacement whenapplying the estimated turnover rate for therental rooms and parking lots.
Assessed based on materials related to taxes andother public charges.
Assessed through verification using the level ofnon-life insurance premiums for similar real
property by judging the amount of contract asbeing appropriate.
Assessed other property operating expenses,
such as supplies expense and reserve fund,referring to the actual amounts obtained fromthe requestor.
Assessed investment yield after comprehensively
taking into account the actual conditions ofinvestment of lump sum payments, etc. from theperspective of both management andprocurement aspects.
Assessed by judging the annual average renewal
costs stated in the ER as being appropriate fromthe verification using the level of renewal costs
for similar real property.
Assessed comprehensively taking into accountthe competitiveness of the subject real property,etc.
Assessed by using both the method of calculatingfrom comparison with the appraisal cases ofsimilar real property, etc. and the method ofcalculating by incorporating the individual
characteristics of the real property to the yield offinancial assets.
Assessed comprehensively taking into accountthe future trend of investment yield, the general
outlook of the future economic growth rate ofthe subject real property as the investment
target, the trend of real estate price, etc. whilereferring to the appraisal yield for similar
appraisal cases, etc.

1,580,000,000
91.9%
8.1%
Although the cost method value was higher compared with the value
based on income approach, adopted the value based on income
approach as the appraisal value by judging it as being morepersuasive after comprehensive examination.

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

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