March 25, 2020
FOR IMMEDIATE RELEASE
Activia Properties Inc.
21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo
Kazushi Sato
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: +81-3-6455-3377)

Notice Concerning Borrowings 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 >LenderResona Bank, Limited.

The Gunma Bank, Ltd.

The Bank of Fukuoka, Ltd.
The Norinchukin Bank

Loan amount

1.5
billionyen

Interestrate

0.11625%+Base rate
(Note 2)

0.5
billionyen

0.15625%+Base rate
(Note 2)

1.5
billionyen

To bedetermined(Fixed rate)(Note 3)(Note 4)

Drawdown
date (plan)

March 31,2020

March 31,2020

March 31,2020

Due date(Note 1)

Borrowing andrepayment methods,
security, and guarantee

September 30,
2023

Borrowing based on aborrowing agreementwith the lenders shownat left as the creditor,
lump-sum repayment,
unsecured, andunguaranteed

September 30,
2023

Borrowing based on aborrowing agreementwith the lenders shownat left as the creditor,
lump-sum repayment,unsecured, andunguaranteed

September 30,
2027

Borrowing based on aborrowing agreementwith the lenders shownat left as the creditor,
lump-sum 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.

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(Note 2) The interest payment will be made on the last day of April 2020 and the last day of each month thereafter as well ason the due date of the principal. (If an 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. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.
After this, API will not announce the interest rate decisions for the borrowing. 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 of the borrowing will be announced upon determination.
(Note 4) The interest payment will be made on the last day of September 2020 and the last days of March and September ineach year thereafter as well as on the due date of the principal. (If an interest payment 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 precedingbusiness day.)

2．Reasons for the borrowings
API will use the borrowings to redeem a long-time borrowing of 3.5 billion yen which becomes mature
on March 31, 2020 (the “Existing Long-term Borrowing”). For the details of the Existing Long-term
Borrowing, please refer to “Notice Concerning Borrowing of Funds” released on March 26, 2015.
3．Amount, use and schedule of disbursement of funds to be raised(1) Total amount
3.5 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
March 31, 202024．Status of borrowings payable, etc. after the Borrowings(1) Interest-bearing debt balance after the Borrowings(In millions of yen)
Beforethe Borrowings(As of March 25,2020)
Short-term borrowings

Afterthe Borrowings(As of March 31,2020)

Change

9,000

9,000

0

15,50012,500(3,000)200,850

203,850

3,000

225,350

225,3500Investment corporation bonds
to be redeemed within one year

2,000

2,0000Investment corporation bonds

17,00017,0000244,350

244,3500(Note)

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

Total amount of borrowings

Total amount of borrowings andinvestment corporation bonds(Note) Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer
to borrowings with a maturity period of more than one year.
(2) Basic financing information after the Borrowings

Beforethe Borrowings(As of March 25,2020)
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 one year) (Note 2) (Note 4)
Fixed interest ratio(Note 3) (Note 4)

After
the Borrowings(As of March 31,2020)

Change(point)

96.3%

96.3%

089.2%

90.4%

1.2

89.7%

88.9%

(0.8)

(Note 1) Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the long-termborrowings to be repaid within one year) and investment corporation bonds (including the investment corporation
bonds to be redeemed within one 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 one year) is the ratio of the outstanding long-term borrowings (excluding the long-termborrowings to be repaid within one year) and investment corporation bonds (excluding the investment corporation
bonds to be redeemed within one 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.

35．Other
Regarding 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 27, 2020.

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

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