March 29, 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 Borrowing of Funds
Activia Properties Inc. (“API”) announces today that it decided to borrow funds (the “Borrowings”).
Details are as follows:1.

Details of the Borrowings< Long-term borrowings >LenderLoanamountInterest
rate

Drawdown
date (plan)Due date(Note 1)

Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation

3.5 billion
yen0.255%+Base rate
(Note 2)

April 19,2019

July 5,
2027

Borrowing andrepayment
methods, security,and guarantee
Borrowing basedon a borrowing
agreement with thelenders shown atleft as the creditor,
lump-sum
repayment,
unsecured, andunguaranteed

Borrowing basedon a borrowing
To beagreement with thedetermined
lender shown at left
0.5 billion
April 19,
July 5,Development Bank of Japan Inc.
(Fixed rate)
as the creditor,yen
20192027(Note 3)lump-sum(Note 4)
repayment,unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of April 2019 and the last day of each month thereafter as well ason the due date of the principal. (If the interest payment date is a non-business day, it shall be the following businessday. If such day falls in the following month, it shall be the immediately preceding business day.)The base rate applicable to the period for the calculation of the interest payable on an interest payment date is theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediatelypreceding each interest payment date. However, if the base rate applicable to the calculation period doesn’t exist, the1base rate will be the one corresponding to the period that will be calculated based on a method provided in theagreement.
After this, API will not announce the interest rate decisions for its borrowings on a floating-rate basis. For changes
in the JBA Japanese Yen TIBOR, the base rate, please check the website of the JBA TIBOR Administration(http://www.jbatibor.or.jp/english).
(Note 3) Interest rate will be announced upon determination.
(Note 4) The interest payment will be made on the last day of October 2019 and the last days of April and October in eachyear thereafter as well as on the due date of the principal. (If the interest payment date is a non-business day, it shallbe the following business day. If such day falls in the following month, it shall be the immediately preceding businessday.)2.

Reasons for the Borrowings

API will use the Borrowings to redeem a long-term borrowing of 4 billion yen which becomes mature
on April 19, 2019 (the “Existing Long-term Borrowing”). For the details of the Existing Long-term
Borrowing, please refer to “Notice Concerning Borrowings of Funds” released on April 16, 2013.
3.

Amount, use and schedule of disbursement of funds to be raised(1) Total amount
4 billion yen in total(2) Specific purpose of use
Funds will be used to redeem the Existing Long-term Borrowing(3) Scheduled date of disbursement
April 19, 20194.

Status of borrowings payable, etc. after the Borrowings(1)

Interest-bearing debt balance after the Borrowings

Short-term borrowings

Beforethe Borrowings(As of March 29,2019)(In millions of yen)

Afterthe Borrowings(As of April 19,2019)

Change14,10014,100020,90020,400(500)

181,350

181,850500

216,350

216,3500Investment corporation bonds
to be redeemed within a year

8,000

8,0000Investment corporation bonds

10,00010,0000

234,350

234,3500000

234,350

234,3500(Note)

Long-term borrowings
to be repaid within a year
Long-term borrowings(Note)

Total amount of borrowings

Total amount of borrowings andinvestment corporation bonds
Other interest-bearing debt
Total interest-bearing debt

(Note) Short-term borrowings refer to borrowings with a maturity period of a year or less, and long-term borrowings refer toborrowings with a maturity period of more than a year. A long term borrowing due within one year will be repaid, tothe same extent as the amount of, and simultaneously with the Borrowings. As a result, the amount of long-term

2borrowings due within one year will decrease by 4 billion yen and the amount of long-term borrowings will increaseby 4 billion yen. Meanwhile, since the maturity period for a long-term borrowing of 3.5 billion yen with a due dateon March 31, 2020 will become due in less than one year, the amount of long-term borrowings due within one year
will increase by 3.5 billion yen and the amount of long-term borrowings will decrease by 3.5 billion yen.
Consequently, the amount of long-term borrowings due within one year will decrease by 0.5 billion yen, and theamount of long-term borrowings will increase by 0.5 billion yen, after the Borrowings as shown on the above table.

(2)

Basic financing information after the Borrowings
Beforethe Borrowings(As of March 29,2019)
Long-term borrowing ratio(Note 1) (Note 4)Long-term borrowing ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin a year) (Note 2) (Note 4)
Fixed interest ratio

Afterthe Borrowings(As of April 19,2019)

Change(point)

94.0%

94.0%

0

81.7%

81.9%

0.2

89.0%

89.0%

0

(Note 3) (Note 4)(Note 1) Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the portion of longterm borrowings to be repaid within a year) and the investment corporation bonds (including the investment
corporation bonds to be redeemed within a year) to the total of outstanding interest-bearing debt.
(Note 2) Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds
to be redeemed within a year) is the ratio of the outstanding long-term borrowings (excluding the long-termborrowings to be repaid within a year) and investment corporation bonds (excluding the investment corporation
bonds to be redeemed within a year) to the total of outstanding interest-bearing debt.
(Note 3) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the totalof 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 4) Figures are rounded to the first decimal place.

5.

OtherRegarding the risks related to the repayment of the Borrowings, 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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