Translation Purposes Only
January 27, 2022

For Immediate Release

Real Estate Investment Trust Securities Issuer
1-1-1 Akasaka, Minato-ku, TokyoXYMAX REIT Investment Corporation
Representative
Executive
ShotaroDirector
Kanemitsu(Securities Code 3488)
Asset Management Company
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative
Director and President
Head of Business
Planning Division
TEL: +81-3-5544-6880

ShotaroKanemitsu
Tatsuya
Nakayama

RepresentativeContact

Notice Concerning Acquisition of Domestic Trust Beneficiary Right in Real Estate (Valor Kachigawa

Store (Leasehold land) (50% quasi-co-ownership interest)) and Disposition of Domestic Real

Estate Trust Beneficiary Right (Renaissance 21 Chihaya)XYMAX REIT Investment Corporation (hereinafter “XYMAX REIT”) hereby announces that XYMAX REAL ESTATEINVESTMENT ADVISORS Corporation (hereinafter the “Asset Management Company”), the asset managementcompany to which XYMAX REIT entrusts the management of its assets, decided to acquire and dispose asset(hereinafter the "Acquisition" and the "Disposition," , and together with the Acquisition and the Disposition, the"Transactions") as described below.
1.

Overview of the Acquisition(1) Asset to Be Acquired
Category

RetailProperty
No.
(Note 1)

RT-06

Property
name

Valor
KachigawaStore(Leasehold
land)(50% quasico-ownershipinterest )Anticipatedacquisition
price(million
yen)

Location(Note 2)

KasugaiCity, Aichi
Prefecture

3,245

Appraisalvalue(millionyen)(Note 3)
3,330

Existence ofintermediaryNone(2) Scheduled purchase and sale agreement: January 27, 2022
(3) Scheduled payment date and acquisition date
: January 31, 2022
(4) Sellers: Please refer to "6. Profile of Seller/Assignee" below.
(5) Acquisition Funds: Borrowings (Note 4) and cash on hand(6) Settlement method: Full payment upon settlement(Note 1) “Property No.” refers to the property codes and numbers according to the type of the asset held by XYMAX REIT. For eachcode, OF represents Office, RT represents Retail, HT represents Hotel, and OT represents other. The same shall apply hereinafter.

(Note 2) “Anticipated acquisition price” is the purchase price of the Asset to Be Acquired as set forth in the purchase and saleagreement. The purchase price does not include national and local consumption taxes nor acquisition costs and is rounded down to1the nearest million yen. The same shall apply hereinafter.

(Note 3)The figures is equivalent to the quasi-co-ownership interest (50%) in trust beneficiary rights that the Investment

Corporation plans to acquire.

2.

(Note 4)Please refer to the “Notice Concerning Borrowings of Funds “announced today for more detail.

Overview of the sale(1) Asset to Be Disposed:Beneficiary right in a trust with real estate as the trust property(hereinafter referred to as the "Disposition of Beneficiary Right")(2) Property name: Renaissance 21 Chihaya(3) Scheduled sales price (Note 1):3,280 million yen (scheduled to sale the beneficiary rights in two
installments in the form of quasi-co-ownership interest (50% quasi coownership interest in each case), and the sales price of each case is asfollows:
1. 1,640 million yen (50% quasi-co-ownership interest)
2. 1,640 million yen (50% quasi-co-ownership interest)(4) Assumed book value (Note 2): 2,748 million yen(5) Difference between the estimated sales price: 531 million yen
And the assumed book value (Note 3)(6) Scheduled purchase and sale agreement : January 27, 2022
(7) Scheduled date of sale: 1. January 31, 2022
2. March 31, 2022
(8) Assignee: Please refer to "6. Profile of Seller/Assignee" below.
(9) Use of Transfer Price: To be used for the acquisition of Asset to Be Acquired, etc.
(10) Settlement method: Lump-sum settlement at the time of respective transfer(Note 1)Figures for "Scheduled sales price" are rounded down to the nearest million yen for the purchase and sales price of the Asset to
Be Disposed (excluding various expenses such as consumption tax, local consumption tax, transfer expenses, and settlement

amount of fixed property tax and city planning tax) stated in the purchase and sale agreement related to the Asset to Be Disposed.

(Note 2)"Assumed book value" is rounded down to the nearest million yen as of the end of the August 2021 (7th fiscal period).

(Note 3)This is a reference figure calculated as the difference between the Scheduled sales price and the assumed book value, and differs

3.

from the gain or loss on transfer.

Reasons for the Transactions
The XYMAX REIT intends to improve the quality of its portfolio by acquiring new properties that meet theinvestment criteria in the Asset Management Guidelines (hereinafter referred to as "Management Guidelines"),while comprehensively taking into account current and future real estate market trends and the characteristics(profitability, age of building, area, etc.) of each property, and updating the portfolio through the sale of owned
properties.
This transaction was realized through collaboration with the Sponsor Group, and this acquisition involves
the acquisition of leasehold land of retail facility with high profit stability, also, for which long-term and stablelease contracts have been concluded with the lessee who has a good business relationship with the Sponsor
Group, through face-to-face negotiations. We have comprehensively considered and decided to replace theassets (acquisition of Asset to Be Acquired and disposition of Asset to Be Disposed) because of 1. Profitability
and stability of the Asset to Be Acquired, 2. The positioning of the Asset to Be Disposed within the portfolio
and the Scheduled sales price, etc. XYMAX REIT believes the Transactions would contribute to theimprovement of unitholder value.
The XYMAX REIT intends to implement strategic and continuous asset replacements in the future.
In the course of the Transactions, the acquisition (Jan 31, 2022) will be conducted ahead of another portionof disposition (March 31, 2022). This will enable us to earn rent revenues from the Asset to Be Acquired at an
early stage and secure a portion of rent revenues from the Asset to Be Disposed for a certain period of time. At
the same time, by diversifying the timing of this transfer, it will be possible to distribute gains on the transfer
2

in a dispersed manner.

The Asset to Be Acquired is the retail facility and categorized as Main Asset in the portfolio of the XYMAXREIT and the details are as follow;(1) Characteristics of the property
 This is a leasehold land for a retail facility located seven minutes on foot from Kachigawa
Station of the JR Central Main Line.
 The Asset to Be Acquired is subject to a long-term business fixed lease agreement forbusiness use with the lessee, and is expected to provide a high level of earnings stability.
 The retail facility on the Asset to Be Acquired is composed of 100-yen stores, daily-use storessuch as drugstores and specialty stores for infants and children's general merchandise,
centered on food supermarkets, and we expect stable store sales. In addition, we believe it
has advantages as a retail because the store has three entrances and exits, have a highly
convenient flat parking lot that can accommodate 346 units, and have a high accessibility bypassenger vehicles.

(2) Overview of Trading Area
① Location and Transportation Access This is an area located within the walking distance of Kachigawa Station, which had 35,000
passengers per day in 2019, and is accessible to Nagoya Station by train in 20 minutes. As aresult, there are many commuters in Nagoya City.
② Characteristics of the surrounding trading area
 The population of the trading area based on the 2015 Population Census is about 11,000
within 5 minutes of driving hours and about 49,000 within 10 minutes, showing an
increasing trend of 108.8% and 104.0% compared to 2010, respectively.
 The population composition of the retail area is high in the 30s-40s age, with 12.8% ofhouseholds aged less than 6 in the 1km area, which is high compared to the national averageof 8.7%, while 29.2% of households aged 65 or older are low compared to the national
average of 40.7%. This location is suitable for retail facilities centered on food supermarkets
because it is a trading area with a large number of families at the child-rearing stage.
 Kasugai City's passenger car ownership rate is 122.9%, and a car society is formed in which
vehicles are used for shopping, so roadside retail facilities have a better advantage thanlocations in front of stations.

4.

Summary of Asset to Be Acquired
The summary of Asset to Be Acquired is as follows.
Refer to Reference 3 “Explanation of matters stated in Summary of Asset to Be Acquired” for explanationsof matters stated in the columns in the table.
RetailProperty Valor Kachigawa Store ((leasehold land) (50% quasi- Category
Name

Expectedacquisition

Anticipated
priceco-ownership interest))

dateAppraised value(appraisal date)ofacquisition

Location
residenceindication)
TransportationLand
Lot number

Property No.
Summary of Specified Assets

January 31, 2022

Type of specific assets

3,330 million yen(January 1, 2022)

Trust
maturity
date

3,245 million yen

2-1-1, Ono-cho, Kasugai-shi, Aichi

Outline of
Trust
Beneficial
Right

Trustee

RT-06

Trust beneficiary right (50%quasi-co-ownership interest)(Note 1)
Mitsubishi UFJ Trust andBanking Corporation
End of February, 2026

7-minute walk from Kachigawa Station on the JR Chuo Line
20,509.10 ㎡ (Note 2)
1-1,
Ono-cho2-chome, Site Area

3

Buildingcoverage ratio
Buildings

ZoningKasugai-shi, Aichi
60%

Floor-area ratio

Industrial area

Type of ownership

200%

Quasi-co-ownership(50%)

interest

Construction
Structure and number ofdatefloorsUse
Total floor area
Architect
Builder
Construction
Type of ownershipconfirmation
ML company (planned)
ML Type
PM company
Jones Lang LaSalle Incorporated
Remarks
・Upon the acquisition of the asset (50% quasi-co-ownership interest in the trust beneficiary right of this property), the
XYMAX REIT has entered into a Quasi-Co-Owners Agreement (hereinafter the "Agreement") with the seller of the asset. The
main contents of this Agreement are as follows.
(1) Special provision regarding Non-Split clause of Beneficiary Right in the Trust (for a period of five years from the date ofthis Agreement and to be renewed thereafter unless there is a manifestation of intention to refuse renewal)(2) In the event each quasi-co-owner wishes to sell its quasi-co-ownership interest to a third party, the other quasi-coowner has been granted the right of preferential negotiation rights for the purchase of the quasi-co-ownership interest
held by the other quasi-co-owners.

(Note 1) The XYMAX REIT plans to acquire a quasi-co-ownership interest (50%) in the trust beneficiary right in this property. The seller
will continue to retain a quasi-co-ownership interest (50%) in the trust beneficiary right.
(Note 2) The entire land area is shown below.

Leasable area
Occupancy rate
Annual rent

Outline of the lease
10,254.55 ㎡ (Note 1)
Leased area
100%
Number of tenants
Undisclosed (Note 2)
Lease deposits

Inspection company-

10,254.55 ㎡ (Note 1)
1
Undisclosed (Note 2)(Note 1) Figures are calculated by multiplying the leased area stipulated in the lease agreement for this property by the ratio of the quasico-ownership interest of the beneficial interest acquired by the XYMAX REIT (50%).
(Note 2) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed
due to this unavoidable reason.

Urgent and short-term
repair expenses.

-

Outline of Engineering Report (Note)
Date of investigation
Long-term
repairexpenses(annualaverage)-(NOTE)Separately, we have obtained a Soil Contamination Risk Assessment Report from Field Partners Co., Ltd.

Inspection company
State of collaterals
Changesrateofoccupancy

Outline of Earthquake Risk Analysis, etc.
PML
None
End of Mar.
End of Mar.
End of Mar. 2019
2017
2018
100.0%
100.0%
100.0%

4-

End of March
2020
100.0%End of March
2021
100.0%

Overview of the Appraisal Report
Property name

Valor Kachigawa Store (Leasehold land)

Appraisal value

Name of appraiser
Appraisal date

3,330,000 thousand yen
Tanizawa Co., Ltd.
January 1, 2022

Item

Value based on income approach

Value based on direct capitalization
methodDetails (Thousand yen)
3,330,000-(1)Operating revenue(i. - ii)-

i Effective gross revenue(a. +b. +c. +d. +e. +f.
+g. +h.)a.

Maintenancec.

Repair expensesb.

Utility expensesd.

approach

Discount rate

based

on

income

-

-

-

-

-

3,330,000-

4.1%

Other items considered by real estate appraiser None in particular.
upon appraisal--

Cost approach value
Building ratio--

Terminal capitalization rate

Land ratio--

Net income

Value

-

-

(5)Capital expenditures
Capitalization rate--(4) Gain from investment of deposits

DCF-based--(3)Net operating income((3)+(4)-(5))--

Other expenses((1)-(2))--

Insurance premiums

h.

-

-

Taxes and public dues

g.

-

-

Tenant leasing expenses, etc.

f.

-

-

PM feee.

-andmanagement fee

Only DCF method is applied.

--(2)Operating expenses

Calculated using the capitalized value based on the DCF method.
--ii Loss from vacancy, etc.

Outline, etc.

Assessment based on a comprehensive consideration of the content of thecurrent lease agreement, etc., based on a comparison with trade cases ofsimilar real estate and an accumulation method that adds the individualityof real estate to the yield of financial assets.

-

-

-

-

-

-

-

-

(NOTE)Figures are equivalent to the quasi-co-ownership interest (50%) of the trust beneficiary right the XYMAX REIT plans to acquire.

55.

Summary of Asset to Be Disposed
A summary of Asset to Be Disposed is as follows:
Please refer to Reference 3 “Explanation of matters stated in Summary of Assets to Be Acquired” forexplanations of matters stated in the columns in the table.

Premises
Name

Expected date of sale
Estimated sale priceAppraisal value(appraisal date)
LocationTransportation
Land

Buildings

Category
Property No.
Summary of Specified Assets
1st sale January 31, 2022
(50%
quasi-co-ownershipinterest)
Type of specified assets
2nd sale March 31, 2022
(50%
quasi-co-ownershipinterest)

Renaissance 21 Chihaya

Location

Building
coverage ratio
ZoningConstruction
date
Use

Architect

3,280 million yen

3,280 million yen(As of August 31, 2021)

Outline ofTrustbeneficiary
right

80%

Floor-area ratio

October 19, 2006

Structure and number offloorsTrustee

Others (Residential)
OT-01

Trust beneficiary rights
Mitsubishi UFJ Trust
Banking Corporation

and

Trust
maturity
End of February, 2028
date
4-25, Chihaya 5-chome, Higashi-ku, Fukuoka-shi, Fukuoka
6-minute walk from Chihaya Station on the JR Kagoshima Main Line or Nishitetsu Chihaya
Station on the Kaizuka Line of the West Japan Railway Company.
2332, Chihaya 5-chome,
2,644.63 ㎡
Higashi-ku,
Fukuoka-shi, Site Area
Fukuoka, etc.
Commercial area

Type of ownership

Multiple residential and retail
Tei architectural design
officeTotal floor area
Builder

400%

Ownership
Steel-framed
reinforced
concrete building with 14
floors of flat roof
10,856.15 ㎡
Nishimatsu Construction Co.,
Ltd. Kyushu Branch

Construction
Japan ERI Co.,Ltd.
Type of ownership
Ownership
confirmation
ML company
Miyosi asset Management Co., Ltd.
ML TypePass-through type
PM company
Miyosi asset Management Co., Ltd.
Remarks
・Upon the acquisition of the asset (50% quasi-co-ownership interest in the trust beneficiary right of this property), the
XYMAX REIT has entered into a Quasi-Co-Owners Agreement (hereinafter the "Agreement") with the seller of the asset. The
main contents of this Agreement are as follows.
(1) Special provision regarding Non-Split clause of Beneficiary Right in the Trust (for a period of five years from the date ofthis Agreement and to be renewed thereafter unless there is a manifestation of intention to refuse renewal)(2) In the event each quasi-co-owner wishes to sell its quasi-co-ownership interest to a third party, the other quasi-coowner has been granted the right of preferential negotiation rights for the purchase of the quasi-co-ownership interest
held by the other quasi-co-owners.
Outline of the leasing
Leasable area
10,290.99 ㎡
Leased area
10,095.21 ㎡
Occupancy rate
98.1%
Number of tenants
139
Annual rent
208 million yen
Lease deposits
23 million yen
Profit and loss information (the total of actual results for the fiscal periods ending February 28, 2021 and 2021)
Income206 million yen
NOI
162 million yen
Profit
122 million yen
Changes of occupancyrate

End of August,
2019
92.7%

End ofFebruary, 2020
91.0%

6

End of August,
2020
96.7%

End ofFebruary,
2021
99.0%

End of August,
2021
96.5%

Summary of the Appraisal Report
Property name

Renaissance 21 ChihayaAppraisal value

3,280,000 thousand yen

Name of the appraiser
Appraisal date

Tanizawa Sogo Appraisal Co., Ltd.
August 31, 2021

Item

Value based on income approach
Capitalizedvalue

capitalization methodby(1)Operating revenue

thedirect((i)-(ii))(i)Possible total return

Details (Thousands ofyen)

3,280,000
3,340,000
224,854
237,179(ii)Loss on vacancy, etc.

12,325(2)Operating expenses

55,559(a. +b. +c. +d. +e. +f.
+g. +h.)Outline, etc.

Assessed mainly based on DCF-based value and compare it with the value
based on the direct capitalization method.
-

Assessed based on the rent level recognized to be stable level, considering
actual rent and recent leasing results, etc.

Assessed based on the vacancy rate recognized to be stable, considering
occupancy trend and market conditions, etc.
-

a. Maintenance and management

11,731

Assessed based on ML/PM/BM contract (including memorandums ofc. Repair expense

11,138

Assessed based on ER, similar events, etc.

e. Expenses for tenant leasing, etc.

4,084

fee

b. Utility costs
d. PM fee

f. Public taxes and impositions

g. Casualty insurance premiumh. Other expenses

3,704
6,509

17,356584
449(3)Net operating income

169,294(5)Capital expenditures

9,065((1)-(2))(4) Gain from investment of deposits
Net income((3)+(4)-(5))

Capitalization rate
DCF-based
approach

Value

Discount rate

basedLand ratio

Building ratio

160,492

4.8%

onTerminal capitalization rate

Cost approach value

262

income3,250,000

4.9%
5.0%

3,050,000

56.7%
43.3%

Other items considered by real estate appraiser None in particular.
upon appraisal

7

amendments) and revenue/expenditure results, etc.

Assessed based on the actual balance of payments, etc.

Assessment based on ML, PM, BM Agreement (including memorandum of
amendments), etc.

Assume that 25.0% of tenants will be replaced annually in housing and10.0% in retail spaces.

Actual amount based on information of fiscal 2021 tax and public dues.

Actual amount based on client presentation materials. Earthquake
insurance is not included.

Assessed based on earnings performance, etc.
-

Assessed investment profit with investment yield of 1.0%.
Assessed based on ER, similar events, etc.
-

Assessed by comprehensively considering the location, building, andother conditions of the subject property and by referring to capitalization
rate of similar properties in the same trading area.
-

Assessed by setting the base yield of residence based on the accumulation
method based on the yields of financial instruments and adjusting
individual risks of the subject property.

Assessed by taking into account future forecast uncertainty based on thecapitalization rate.
-

6.

Profile of Seller/Assignee
Name
Japan Metropolitan Fund Investment Corporation
Tokyo Building 7-3, Marunouchi 2-chome,
Address
Title/NameofRepresentative
DescriptionofBusinesses
Totalamountofinvestment
Date of Establishment
Net assets
Total assets

Major shareholders andtheir shareholding ratio

Chiyoda-ku Tokyo

Executive Officer Masahiko Nishida

Assets are mainly invested in real estate and other assets.
¥411,878 million (as of August 31, 2021)

September 14, 2001
¥623,671 million (as of August 31, 2021)¥1,235,720 million (as of August 31, 2021)
The Master Trust Bank of Japan, Ltd. (Trust Account) (17.57%)
Custody Bank of Japan, Ltd. (Trust account) (15.37%)
The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) (4.46%)
Custody Bank of Japan, Ltd. (Securities Investment Trust Account) (3.05%)
SMBC Nikko Securities Inc. (2.46%)(As of the end of August 2021)

Relationship between the investment corporation and asset management company and the said company

Capitalrelationship
Personnel
relationship
Businessrelationship

Status of relationship

7.

8.
9.

There is no capital relationship between the Investment Corporation and theAsset Management Company.
There is no capital relationship between the Investment Corporation and theAsset Management Company.
There is no capital relationship between the Investment Corporation and theAsset Management Company.
There is no capital relationship between the Investment Corporation and theAsset Management Company.

Transactions with interested parties
Xymax Trust Co., Ltd., a brokerage agent for the Asset to Be Disposed is the parent company of AssetManagement Company and falls under the category of an interested party set forth in Paragraph 1 Article 201of the Enforcement Order of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951,as amended) (hereinafter referred to as the “Investment Trust Act”) and Article 123 of the Act on Investment
Trust and Investment Corporations (Cabinet Order No. 480 of 2000, as amended thereafter), as well as aninterested party set forth in the REIT Stakeholder Transaction Management Rules, which are internal rules of
the Asset Management Company Accordingly, in entering into brokerage agreement related to the purchaseand sale agreement of said beneficiary right in trust, the Asset Management Company has conducted therequired deliberations and resolutions in accordance with the provisions of the Rules on the Management ofTransactions of Interested Persons.
Status of Acquisition for Property, etc.
Not applicable as the seller of the Asset to Be Acquired is not a special related party both of the XYMAX REIT
and the Asset Management Company
Outline of intermediation(1) Outline of the intermediary in the Acquisition
Not applicable.
(2) Outline of the intermediation in the Transfer
Name
Xymax Trust Corporation
Address
1-1-1, Akasaka, Minato-ku, Tokyo
Job
Title/Nameof Motoyuki Oyama President and Representative Director
Representative
Business description(1) Management and operation of office buildings, retail facilities, and other8

type of real estate(2) Planning, design, construction, supervision, contracting, and consulting
services related to buildings, construction, and equipment construction(3) Ownership, sale, purchase, leasing, supervision and brokerage of realestate, agency services, and appraisal of real estate¥30 million (as of March 31, 2021)
November 1, 2005
Xymax Corporation (100%)

CapitalDate of establishment
Major shareholders and theirshareholding ratio
Relationship between the XYMAX REIT and the Asset Management Company and the said company
Capital relationship
The XYMAX REIT is a 100% subsidiary of Xymax Corporation, the parent

Personnel
relationship
Business relationshipTo the related parties
Applicable situation

Brokerage
Amount

fees,

etc.

company of the Asset Management Company. Xymax Corporation holds 5.59%of the XYMAX REIT's outstanding units as of today.
Corresponds to the concurrent position of director and corporate auditor of
the Asset Management Company.
The XYMAX REIT, the Asset Management Company and Xymax Corporation
have entered into the Spencer Support Agreement. .
Xymax Corporation is the parent company of the Asset Management Company,
and is the related party of the XYMAX REIT and the Asset Management
Company.
Brokerage fees for the sale and purchase of trust beneficiary right.
¥98,460,000 (Excluding taxes)

10. Matters concerning forward commitments, etc.
The scheduled date of this transfer is March 31, 2022 for the second scheduled date of transfer of theasset, and is more than one month after the date of conclusion of the purchase and sale agreement.
Therefore, the purchase and sale agreement falls under the category of forward commitments, etc.
stipulated in the Financial Services Agency's "Comprehensive Supervisory Guidelines for Financial
Instruments Business Operators, etc." (referred to the purchase and sale agreement with an earlier datethat requires settlement and delivery of properties after one month or more has elapsed from the date ofconclusion of the contract and other similar contracts).
Under the purchase and sale agreement , in the event either party breaches any of the agreed matters
stipulated in the purchase and sale agreement or the representations and warranties of either party
stipulated in the purchase and sale agreement are found to be untrue or inaccurate, the other party may
terminate the purchase and sale agreement by making a representation and warranty that is in violationof the agreed matters or that is not true or accurate, if the party requests the party to rectify any grounds
that are contrary to such representations and warranties or promptly cure such breach within areasonable period of time, and such correction or cure is not carried out within such period of time, or if
it is obvious that the purpose of the purchase and sale agreement cannot be achieved due to such breach,
representation, or breach of warranty, the other party who has made such representation and warranty
that is in violation of the agreed matters or is not true or accurate. In addition, in the event the purchaseand sale agreement is cancelled, the breaching party may be charged an amount equivalent to 20% of thesales price (excluding the amount equivalent to the consumption tax and local consumption tax) as apenalty. Since the XYMAX REIT is the seller and there are no financing risks or other concerns with respect
to the execution of the Purchase and Sales Agreement, it is unlikely that the XYMAX REIT will be liable fordamages and have a material impact on its financial condition, etc.

11. Future Outlook
Regarding the prospects of operation for the period ended February 2022 (September 1, 2021 to
February 28, 2022) and the period ended August 2022 (March 1, 2022 to August 31, 2022) due to thistransaction, please refer to the " Notice Concerning Revision of the Operating Forecasts and Distribution
Forecast for the Fiscal Period Ending February 2022 (the 8th Fiscal Period) and the Fiscal Period Ending
August 2022 (the 9th Fiscal Period)" of this date.
9

*Website address of the Investment Corporation: https://xymaxreit.co.jp/(For reference)
Notice Concerning Revision of the Operating Forecasts and Distribution Forecast for the Fiscal PeriodEnding February 2022 (the 8th Fiscal Period) and the Fiscal Period Ending August 2022 (the 9th Fiscal
Period) dated January 27, 2022
Notice Concerning Borrowings of Funds dated January 27, 2022
Supplementary Material dated January 27, 2022
<Attachments>
Reference Material 1
Reference Material 2
Reference Material 3

Photograph and location map of the Asset to Be Acquired
Portfolio Status after the Transactions
Explanation of items to be described in the details of the assets to be traded in theTransactions herein.

10Reference Material 1

Photograph and location map of the property to be acquired

Valor Kachigawa Store (Leasehold land)11Reference Material 2
Categ Property
oryno.

Minato-ku, Tokyo

February 16, 2018

OF-03

XYMAX Shinjuku-Gyoen Building

Shinjuku-ku, Tokyo

February 16, 2018

OF-04
OF-05
OF-06
OF-08

Ho
tel

Location

XYMAX Nishi-Shimbashi Building

OF-07

Co
m
me
rci
al
fac
iliti
es

Property name(Expected)
acquisition
date

OF-01
OF-02

Off
ice

Portfolio Status after the Transactions

XYMAX Iwamotocho Building
XYMAX Kamiyacho Building

XYMAX Higashi-Azabu Building
XYMAX Higashi-Ueno Building
XYMAX Hachioji Building
XYMAX Mita Building
Subtotal/Average

RT-01

Muza Kawasaki

RT-03

Vita Seiseki-Sakuragaoka

RT-02
RT-04
RT-05
RT-06
HT-01

Life Kawasaki Miyuki StoreLife Fukuizumi StoreThe Park House Totsuka Front (theRetail Portions of 1st and 2nd
Floors)Valor Kachigawa store ( Leaseholdland) (Note 4)
Subtotal/Average

Hotel Vista Sendai

Subtotal/Average

Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Taito-ku, Tokyo

Hachioji-shi, Tokyo
Minato-ku, Tokyo-

Kawasaki-shi,
Kanagawa
Kawasaki-shi,
Kanagawa

Tama-shi, Tokyo

February 16, 2018
February 16, 2018

668

3.2
7.3

1.9

51.9

February 16, 2018

790

2.2

February 16, 2018

4,100

February 16, 2018

3,100

July 1, 2021

540

Sendai-shi, Miyagi

February 16, 2018

―

1,150

4.3

18,618January 31, 2022

Total/Average

2.5

14.0

-

Kasugai-shi, Aichi

―

880

5,020

2,600

July 1, 2021

7.0

11.9

February 16, 2018

February 16, 2018

Share ofportfolio(%)(Note 2)

4,250

1,550

September 1, 2020

―

2,500

February 16, 2018

Sakai-shi, Osaka
Yokohama-shi,
Kanagawa(Anticipated)acquisition price(million yen)
(Note 1)

1,065
3,245

11.4
8.6

3.0
1.5
9.0

―

12,840

35.8

―

4,400

12.3

―

4,400

35,858

12.3

100.0

(Note 1) "(Anticipated) acquisition price" refers to the transaction amount excluding acquisition expenses, (brokerage fees, tax and dues, etc.)(Note 2)
(Note 3)(Note 4)listed in respective purchase and sale agreement, and is rounded down to the nearest million yen.

“Share of portfolio” is the percentage of acquisition price or (anticipated) acquisition price of each portfolio asset versus the total ofacquisition price and (anticipated) acquisition prices, rounded to one decimal place.

Renaissance 21 Chihaya is not stated because it plans to transfer a 50% quasi-co-ownership interest in the trust beneficiary right toJapan Metropolitan Fund Investment Corporation on January 31, 2022, and to transfer a 50% quasi-co-ownership interest in theremaining trust beneficiary right on March 31, 2022.

"(Anticipated) acquisition price" related to the Valor Kachigawa Store (Leasehold land) is the price based on the 50% quasi-co-ownership interest to be acquired by the XYMAX REIT.

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Reference 3 Explanation of matters to be stated in Summary of Assets to Be Acquired(a) Explanation of the “Category” and “Property No.”・ “Category” refers to Office, Retail, Hotel, and Other that XYMAX REIT has invested and will invest in.
・ “Property No.” is numbered as OF for Office, RT for Retail, HT for Hotel, and OT for Other.

(b) Explanation of the “Summary of the Specified Asset”

・ “Expected date of acquisition” indicates the expected date of acquisition of the trust beneficiary rightcontained under the purchase and sale agreement for the Asset to Be Acquired. “Scheduled date of sale”

indicates the expected date of acquisition of the trust beneficiary right under the purchase and saleagreement for the Asset to Be Disposed.

・ “Type of the specified asset” describes the type of real estate and other assets as specified assets and theassets incidental or related thereto.

・ “Anticipated acquisition price” rounds down the sales price (excluding consumption tax, local consumption

tax, and brokerage fees) stated in the purchase and sale agreement pertaining to the Assets to Be Acquired

to the nearest million yen.

・ “Appraisal value (appraisal date)” refers to Appraisal value stated in the real estate appraisal report
relating to the Asset to Be Acquired prepared by Tanizawa Sogo Appraisal Co., Ltd.

・ Outline of Trust beneficiary right lists the terms of the trust agreement entered into with Trustee for the
Assets to Be Acquired.

・In principle, the “Location” describes the residential address.

・ “Transportation” describes the time (rounded up to the nearest minute) when the distance from thenearest station calculated by Asset Management Company is walked at 80 meters per minute or the time
indicated in the real estate appraisal report or Engineering Report.

・ “Lot number” describes the building's location on the real estate register (or location of one of them if
there is more than one).

・ “Site area” is based on the description in the real estate registry (including the leased land area if any) andmay not coincide with the current situation.

・ Land's “Building coverage ratio” refers, in principle, to the ratio of the building area of a building to sitearea set forth in Article 53 of the Building Standards Act (Law No. 201 of 1950, including subsequent

revisions; the same shall apply hereinafter), and includes the upper limit of building coverage ratio(designated building coverage ratio), if any, set forth in the City Planning in accordance with Zoning, etc.

The specified building coverage ratio may be relaxed, increased or reduced due to fire-resistant buildingsin the Fire Protection Geographic Area or for other reasons and may differ from building coverage ratio
actually applied.

・ “Floor‐area ratio” refers to the ratio of the total area of buildings to Site Area set forth in Article 52 of the
Building Standards Act, and includes the upper limit (designated floor‐area ratio) of floor‐area ratio set
forth in the city plan according to Zoning, etc. (if there are two or more such values, both). The specified

floor‐area ratio may be relaxed, increased or decreased due to the width of the road to be connected to thesite or for other reasons, and may differ from floor‐area ratio actually applied.

・ “Zoning” describes the types of Zoning (if there are more than one) listed in Article 8, Clause 1, item 1 of
the Urban Planning Law (Law No. 100 of 1968, including any subsequent revisions).

・ The “Type of ownership” of land and building describes the types of rights pertaining to the Assets owned
by XYMAX REIT.

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・ “Construction date” indicates the date of the new construction of the main building described in the realestate register.

・ “Structure and number of floors” is based on real estate registers for the main building.

・ “Use” is based on building types of entries in the real estate registry for the main building.

・ “Total floor area” includes the floor area of the attached building based on the description in the real estateregister.

・ “Architect,” “Constructor” and “Inspection agency” are listed in the name of the company or institution at
the time the building was designed and constructed.

・ “ML company” and “PM company” represent the master leasing company and PM company for the Asset
to Be Acquired or the Asset to Be Disposed. “ML type” is the master lease type of the Asset to Be Acquiredor the Asset to Be Disposed (pass-through type, fixed rent type, or variable rent type).

・ In addition to matters that are considered to be important for rights and use relating to the Asset to Be

Acquired or the Asset to Be Disposed as of today, remarks include matters that are considered to be ofimportance considering the appraised value, profitability, and impact on disposal potential.

(c) “Overview of Leasing”

・ “Leasable area” represents the sum of leased area based on building drawing and other drawings attachedto the lease agreements as of the end of December 2021 and the vacant area based on building drawing andother drawings.

・ “Leased area” presents the totals of leased area based on the lease agreements relating to the Asset to Be
Acquired or the Asset to Be Disposed as of the end of December 2021 and building drawings attached to

the lease agreements. In the event that a master lease agreement has been concluded for the Assets to Be
Acquired or the Asset to Be Disposed, the total area actually concluded and leased with the end tenant isrounded to the nearest third decimal place.

・ “Occupancy rate” represents the ratio of leased area to leasable area related to the Asset to Be Acquiredor the Asset to Be Disposed as of today, rounded off to the first decimal place.

・ “Number of tenants” presents the sum of number of tenants on the Asset to Be Acquired or the Asset to Be

Disposed under a lease agreement entered into as of the end of December 2021. (the total number of end

tenants if the pass-through master lease agreement is concluded).

・ “Annual rent revenue” rounds down the sum of the annual rent (one-year rent calculated in accordancewith the provisions of the lease agreement if only the monthly rent is provided)including the CAM set forthin the respective lease agreement for which the Asset to Be Acquired or the Asset to Be Disposed has been
executed as of the end of December 2021 to the nearest million yen.

・“Security deposit” with respect to tenants already occupied, rounds down the sum of the security deposit

specified in the respective lease agreement as of today to the nearest million yen. In addition, in the eventthat the master lease agreement has been concluded for the Asset to Be Acquired or the Asset to Be
Disposed and if the security deposit is equal to the total of the security deposit stipulated in the leaseagreements concluded with the end tenants, the sum of the security deposit and is rounded down to thenearest million yen.

(d) Explanation concerning the “Outline of Engineering Report”

・ “Short-term repair expenses” and “Long-term repair expenses (annual averages)” are stated based onEngineering Report.

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・ “Short-term repair expenses” refers to the cost of repairing and renewing defects that require repairs, etc.

in preference to daily maintenance, and describes the estimated total amount of repair expenses required
within one year from the date of Engineering Report.

・ “Long-term repair expenses (annual average)” refers to the cost of repair and renewal for the purpose ofmaintaining functions or safety in operation for aging deterioration. The aggregate amount of repair

expenses and renewal costs required within 12 years from the date of Engineering Report is converted into
the annual average amount by the Asset Management Company and rounded off to the nearest thousandyen.

(d) Explanation of the “Outline of Earthquake Risk Analysis, etc.”

・ “PML” means the expected loss rate (Probable Maximum Loss) due to earthquakes. Although there is no

uniform and rigorous definition of PML, this document defines expected losses and probabilities for large
and small earthquakes that may occur in 475 years as the percentage of expected losses relative to building
replacement cost calculated and statistically processed. PML is calculated based on the ground conditions,geographic area factors, and structural considerations. PML figures are based on Seismic Risk Evaluation

Report dated June 2021 issued by Tokio Marine & Nichido Risk Consulting Co., Ltd.

(E) Explanation of the “Status of collaterals”

・ If the collaterals are cancelled after the acquisition of the Asset to Be Acquired, stated as “None.”15