July 3, 2019
FOR IMMEDIATE RELEASE
Activia Properties Inc.
1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo
Kazuyuki Murayama
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Hiroyuki Tohmata
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6804-5671)

Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds)
Activia Properties Inc. (“API”) announces that it decided today to issue investment corporation bonds(green bonds). The investment corporation bonds will be issued as green bonds which were announced in“Notice Concerning Submission of Amendment to the Shelf Registration Statement related to Issuance ofGreen Bonds” released on January 17, 2019. Details are as follows.

1. Summary of the investment corporation bonds (green bonds)(1) Name(2) Total issue amount(3) Form of bond certificate(4) Issue price(5) Redemption price(6) Interest rate(7) Denomination price(8) Offering method(9) Offering date(10) Payment date(11) Collateral(12) Redemption method and date(13) Interest payment date(14) Financial covenant(15) Credit rating(16) Depository

The 10th unsecured investment corporation bonds (green bonds)(with pari passu conditions among specified investment corporationbonds) (“the Investment Corporation Bonds”)¥5 billion
Subject to the provisions of the Act on Book-Entry Transfer ofCorporate Bonds, Shares, etc., the investment bond certificates will
not be issued for the Investment Corporation Bonds.
¥100 per ¥100 of each bond¥100 per ¥100 of each bond
0.220% per annum¥100 million
Public Offering
July 3, 2019 (Wednesday)
July 9, 2019 (Tuesday)
Neither collateral nor guarantee is provided for the Investment
Corporation Bonds, and no asset has been particularly secured for theInvestment Corporation Bonds.
The total amount of the Investment Corporation Bonds will be
redeemed on July 9, 2024.
Redemption by purchase of the Investment Corporation Bonds by API
will be available any time on and after the following day of the payment
date, unless otherwise determined by the depository.
January 9 and July 9 every year
Negative pledge among unsecured bonds
AA (Japan Credit Rating Agency, Ltd.)
Japan Securities Depository Center, Inc.

1(17) Fiscal agent, issuing agent andpaying agent(18) Underwriter

Sumitomo Mitsui Trust Bank, Limited
Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities
Co., Ltd., Daiwa Securities Co. Ltd. and SMBC Nikko Securities Inc.

2. Reasons for the issuance
API has decided to issue the Investment Corporation Bonds in order to extend and balance the debt
maturity and diversify the financing methods. Also, through the issuance of the Investment Corporation
Bonds as green bonds in accordance with the Green Bond Framework as described in “Notice Concerning
Submission of Amendment to the Shelf Registration Statement related to Issuance of Green Bonds”
released on January 17, 2019, API aims to further promote its sustainability initiatives and invite newinvestors to its investment corporation bonds by stimulating their demand who have interest in ESG
investment.

3. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure(1) Amount of funds to be raised (estimated amount of net proceeds)¥4,978 million(2) Specific use of proceeds and scheduled timing of expenditure
Deducting the approximate amount of expenses for issuance of ¥22 million from the total issue amount of
the Investment Corporation Bonds of ¥5 billion, the estimated net proceeds will be ¥4,978 million.
¥ 4 billion out of the funds raised will be used on July 18, 2019 for the funds for an early repayment of theshort-term borrowing of the same amount which will become due and payable on November 24, 2019 (the“Existing Short-term Borrowing①”), and the remaining amount of the funds raised will be used on July18, 2019 for part of the funds for a partial early repayment of the short-term borrowing of ¥5 billion which
will become due and payable on June 3, 2020 (the “Existing Short-term Borrowing②”). The Existing
Short-term Borrowing① was used to refinance the borrowing for part of the funds to acquire Osaka
Nakanoshima Building, and the Existing Short-term Borrowing② was used to refinance the borrowing forpart of the funds to acquire A-PLACE Shinagawa Higashi, both of which fall into the Eligible Green
Projects aligned with the Eligibility Criteria defined in “Notice Concerning Submission of Amendment
to the Shelf Registration Statement related to Issuance of Green Bonds ” released on January 17,2019.

2(AA-7) Osaka Nakanoshima
Building

Certification for CASBEE
for Real Estate 2016

S(★★★★★)(TO-16) A-PLACE Shinagawa
Higashi

Certification for CASBEE
for Real Estate 2018

S(★★★★★)For further details, please refer to “Notice Concerning Partial Early Repayments of Funds” released as oftoday.

4. Investors who declared intention to invest in the Investment Corporation Bonds
Listed below in alphabetical order are investors to date who declared their intention of investment in theInvestment Corporation Bonds and agreed to disclose their names.
- Daitokyo Shinyokumiai- IZAWA METAL Co., Ltd.
- Mitsubishi UFJ Trust and Banking Corporation- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- THE OITA BANK, LTD.
- The Miyazaki Taiyo Bank, Ltd.
- The Sugamo Shinkin Bank
- Wakayamaken Ishi Shinyokumiai

35. Status of borrowings payable, etc. after the issuance of the Investment Corporation Bonds(1) Interest-bearing debt after the issuance of the Investment Corporation Bonds
Beforethe issuance(As of July 3, 2019)
Short-term borrowings(In millions of yen)
Afterthe issuance
Change(As of July 18, 2019)(Note 1)

14,0009,000(5,000)12,00010,300(1,700)

194,350

196,050

1,700

220,350

215,350(5,000)Investment corporation bonds
to be redeemed within one year

6,000

6,000

0

Investment corporation bonds

8,000

13,0005,000

234,350

234,3500(Note 2)Long-term borrowings
to be repaid within one year
(Note 2)Long-term borrowings(Note 2)

Total amount of borrowings(Note 2)

Total amount of borrowing andinvestment corporation bonds(Note 1)

The figures are based on assumption that the early repayment of part of the Existing Short-term Borrowings (5 billion yen) will
be made on July 18, 2019.

(Note 2)

Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer toborrowings with a maturity period of more than one year. Investment corporation bonds of 5 billion yen will be issued as ofJuly 9, 2019, and an early repayment of 4 billion yen and a partial early repayment of 1 billion yen will be executed as of July18, 2019, as stated in “3. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure”. As a result, theamount of short-term borrowings will decrease by 5 billion yen and the amount of investment corporation bonds will increaseby 5 billion yen. In addition, a long-term borrowing due within one year will be repaid, to the same extent as the amount of,and simultaneously with, a long-term borrowing scheduled to be made as of July 9, 2019. As a result, the amount of long-termborrowings to be repaid within one year will decrease by 1.7 billion yen and the amount of long-term borrowings will increaseby 1.7 billion yen. For details of the said borrowing, please refer to the “Notice Concerning Borrowings of Funds” announced
on June 20, 2019. Consequently, the amount of short-term borrowings will decrease by 5 billion yen, the amount of long-termborrowings to be repaid within one year will decrease by 1.7 billion yen, the amount of long-term borrowings will increase by
1.7 billion yen, and the amount of investment corporation bonds will increase by 5 billion yen, after the issuance as shown on
the above table.

(2) Basic financing information after the issuance of the Investment Corporation Bonds
Beforethe issuance(As of July 3, 2019)
Long-term borrowing ratio(Note 2) (Note 5)Long-term borrowing ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin one year)

Afterthe issuance(As of July 18, 2019)

Change(point)(Note 1)

94.0%

96.2%

2.1

86.3%

89.2%

2.9

89.0%

91.1%

2.1

(Note 3) (Note 5)

Fixed interest ratio(Note 4) (Note 5)4

(Note 1)

The figures are based on assumption that the early repayment of the Existing Short-term Borrowings (¥5 billion) will be madeon July 18, 2019.

(Note 2)Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the portion of long-term borrowings
to be repaid within one year) and investment corporation bonds (including the investment corporation bonds to be redeemed(Note 3)

within one year) to the total of outstanding interest-bearing debt.
Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds to be redeemedwithin one year) is the ratio of the outstanding long-term borrowings (excluding the long-term borrowings to be repaid within
one year) and investment corporation bonds (excluding the investment corporation bonds to be redeemed within one year) to thetotal of outstanding interest-bearing debt.

(Note 4)

Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the total of outstanding
interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates includes debts whose interest rates
were converted into fixed interest rates by interest rate swap agreements.

(Note 5)Figures are rounded to the first decimal place.

6. Other
Regarding the risks related to the redemption of the Investment Corporation Bonds, there are no significant
changes in the “Investment Risk” section of the securities report submitted on February 26, 2019.

*Website of API: https://www.activia-reit.co.jp/en/

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