December 23, 2019
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
Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests)
Disposition price
229 million yen
Book value
223 million yen
Gain from sale
5 million yen
Buyer
Marimo Co., Ltd.
Intermediation
Not applicable
Disposition decision date
December 23, 2019
Contract conclusion date
December 27, 2019
Planned disposition dateDecember 27, 2019
Payment receipt date
December 27, 2019
(Note 1) Amounts are rounded down to the nearest million yen.
(Note 2) “Disposition price” does not include the reimbursed amount equivalent to fixed asset tax and city planningtax as well as consumption tax, etc.
(Note 3) “Book value” indicates the estimated amount as of the planned disposition date.
(Note 4) “Gain from sale” is the amount calculated by deducting the estimated amount of book value as of thedisposition date from the disposition price.
2. Reason for the Disposition
In constructing its portfolio, marimo REIT considers disposition or replacement of properties when such is judged to beappropriate over the medium to long term by taking into account market conditions. As for the asset to be replaced,marimo REIT considers disposition for properties of which profitability, etc. assumed at the time of acquisition cannot
be expected as well as for properties facing concerns over future competitiveness due to change in the supply-demandbalance and competitive environment of the area. Upon comprehensively judging the effects of replacement over themedium to long term, marimo REIT decided on the replacement of the asset.
As for Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests) (the “Land”), marimo REIT has received anotice of cancellation from the tenant, and the lease agreement for the Land is scheduled to terminate on January 3,2020.
marimo REIT considered the following options with regard to its management policy on the Land after the move-out

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of the tenant.
① Lease to succeeding tenant as a retail facility② Selling the property to an external party③ Selling the property to the sponsor (Marimo Co., Ltd.)As a result, marimo REIT judged that the selling of the Land to the sponsor will contribute to the maximization ofunitholder value.
3. Details of the Asset to be Disposed
Name of asset to be disposed
Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests)
Type of specified asset
Real estate trust beneficiary right
Trustee
Sumitomo Mitsui Trust Bank, Limited.
Contract period
From July 15, 2015, to July 14, 2045
Location
Lot number
1-168-2 Aioi, Kofu-shi, Yamanashi(Note 1)
Indication of
1-3-18 Aioi, Kofu-shi, Yamanashi
residential address
Land
Form of ownership
Proprietorship
UseRetail
Site area (Note 1)
904.27m2 (Note 2)
Building coverage
80%
ratio
Floor-area ratio
400%
Building
Form of ownership－Main use－
Completion date－
Gross floor area－Structure－Acquisition price
220 million yen
Disposition price
229 million yen
Book value (Note 3)
223 million yen
Difference between planned
5 million yen
disposition price and book value
Appraisal
Appraisal method
Appraisal by Japan Real Estate Institutevalue
Appraisal value
212 million yen
Date of value
November 30, 2019
Details of lease (Note 4)
Master lease company
Marimo Co., Ltd.
Total number of tenants
1
Total lease revenue
15 million yen
Security deposit and1 million yen
guarantee money
Total leased area
904.27 m2
Total leasable area
904.27 m2
Change in occupancy rate
June 30, 2017 Dec. 31, 2017 June 30, 2018
Dec. 31, 2018 June 30, 2019100.0%
100.0%
100.0%
100.0%
100.0%
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 estimated amount as of the disposition date.
(Note 4) “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 the2lease agreements, such amount will be included) in the lease agreements actually concluded with end tenantsby 12 for the property (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.
4.

Overview of Buyer(1) Name(2) Location(3) Name and title ofrepresentative(4) Business description

Marimo Co., Ltd.
1-17-23 Kougokita, Nishi-ku, Hiroshima-shi, Hiroshima
Makoto Fukagawa, President
Project planning/development/architectural design/project supervision/marketing and sales of real estate; property liquidity; overseas real estatedevelopment
100 million yen (as of July 31, 2019)
March 27, 1969
21,056 million yen (Based on the balance sheet as of July 31, 2019)
98,419 million yen (Based on the balance sheet as of July 31, 2019)
Marimo Holdings Co., Ltd.: 100%

(5) Capital(6) Date established(7) Net assets(8) Total assets(9) Major shareholders andshareholding ratio(10) Relationship between marimo REIT/Asset Manager and the company
Capital ties
As of today, the company holds 10.5% (13,950 units) of marimo REIT’sinvestment units outstanding. In addition, the company is a subsidiary ofMarimo Holdings Co., Ltd., which holds a 100% stake in the Asset Manager.
Personnel ties
As of today, two of officers and employees of the Asset Manager are seconded
from the company.
Business ties
The company has entered into a sponsor pipeline and support agreement (asamended) with marimo REIT and the Asset Manager. In addition, the company
has entered into a master lease agreement and property managementagreement with marimo REIT. Real estate trust beneficiary right (ArtizA HigashiShimada) was disposed to marimo REIT for 700 million yen on January 4, 2019,
based on a real estate trust beneficiary right sale and purchase agreement
entered together with marimo REIT on January 4, 2019.
Concerning Related Parties
The company is a subsidiary of the parent company of the Asset Manager, andfalls under the category of related parties. In addition, the company falls under
the category of interested persons, etc. defined in the Act on Investment Trusts
and Investment Corporations. Furthermore, since the company is an interestedperson, etc. defined in the rules on transactions with interested persons, etc.,which are the internal rules set by the Asset Manager, the Asset Manager has
followed the decision-making procedure specified in the rules on transactions
with interested persons, etc. upon conducting the transaction to acquire theAsset to be Acquired.
5. Outline of Intermediation
There is no applicable intermediation pertaining to the Disposition.
6. Payment Method, Etc.
Payment is scheduled to be made by receiving the entire amount of the sale and purchase price for the Land in a lumpsum from the buyer on the planned disposition date.
Moreover, cash on hand gained from the Disposition is scheduled to be used for portfolio operation including future3

property replacements, etc.
7. Future Outlook
The impact of the Disposition on the management status forecast is minimal, and there will be no change to themanagement status forecasts for the fiscal period ending December 2019 and the fiscal period ending June 2020.
8. Summary of Appraisal Statements
Property name

Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests)

Appraisal value
Name of appraisal agency
Time of valuation

212 million yen
Japan Real Estate InstituteNovember 30, 2019Items
Value based on income approachValue based on direct capitalization
methodOperating Revenue
Potential gross income

Details
212,000,000

215,000,000
12,802,000
12,802,000

Vacancy loss, etc.

0Operating Expenses
Maintenance andmanagement expenses
Property management fee

974,000
0Taxes and other publiccharges
Non-life insurance
premiums
Other expense

590,000

Net Operating Income (NOI)
Revenue from investmentof lump sum payments

11,828,000
11,000384,000004

Summary, etc.
Deeming that value based on income approach
which accurately replicates the pricedetermination process from earnings aspects
better matches the market, assessed byadopting value based on income approach while
using cost method value only for reference.
－－
Recorded expected lease revenue based on thenew leasing agreement.
Judged that recording vacancy loss, etc. is
unnecessary considering the status of thelessee, the content of the agreement, etc.
－
There are no expenses to be recorded asmaintenance and management expenses.
Upon assessing property management fee, which
is a commission to be paid to a service provider
responsible for contracted management services,etc., considered the fee rate of similar real
property, the individual characteristics of thesubject real property, etc. referring to the fee rate,etc. based on the contract terms.
Recorded based on materials related to taxes
and other public charges.
There are no non-life insurance premiums.
There is no particular expense to be recorded asother expense.
－Assessed by multiplying one month’s rent basedon the new leasing agreement (assuming theamount as security deposit) by the investment
yield. The investment yield deemed appropriate
for fund management during the deposit period

Capital expenditures
Net Income (NCF)Capitalization rate

Value based on DCF method
Discount rate

011,839,000
5.5%

209,000,000
4.6%

Terminal capitalization rate

6.1%

Value based on land and leasehold ratio
method138,000,000－－

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

is assessed as 1.0% considering the levels ofinterest rates for both management andprocurement.
－－
Assessed taking into account the future
uncertainties of the subject real property,
transaction yield of similar real property, etc.
while reflecting the spread attributable togeographical conditions, contract terms andother conditions (land right relations, etc.),
based on the yield of real estate recognized tohave the lowest investment risk.
－Assessed by comprehensively considering thetransaction yield based on the published caseexamples of J-REITs, transaction yield of othersimilar real property, results of investor survey
as well as the remaining period of the contract,etc.
Assessed by comprehensively considering thefuture trends of investment yield, risks of thesubject real property as an investment target,
general outlook of the future economic growthrate, real estate prices, rent trends, etc., whilereferring to the transaction yield of similar realproperty.
Assessed by multiplying the raw land price by
the ratio of land with leasehold interest derived
pursuant to “Fundamental Directive of AssetValuation” set forth by the National Tax Agency.
－－The subject real property is located in the center of Kofu City, an area
which can draw not only office workers but also residents from thesurrounding residential areas. In addition, the current land rent of thesubject real property is judged to be higher than other land rent in its
vicinity, and such was considered a factor in raising the capitalization
rate. The appraisal value was determined by taking into account theabove.

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

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