February 18, 2021
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 Acquisition 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 acquisition (the“Acquisition”) of domestic real estate trust beneficiary right (ArtizA Sengen-cho) (the “Asset to Be Acquired”) as
described below.
1. Outline of the Acquisition
Property name
ArtizA Sengen-cho(Note)

Location

Planned acquisition price(million yen) (Note)

Nagoya-shi, Aichi

495

Planned acquisition price indicates the purchase price of the real estate trust beneficiary right planned to be stated in the trust beneficiaryright sale and purchase agreement (excluding consumption tax, local consumption tax and other miscellaneous expense such as broker’scommissions) for the Asset to Be Acquired, which is planned to be concluded on February 18, 2021. The same applies hereinafter.

(1) Acquisition decision date(2) Planned sale and purchase agreement date(3) Planned payment date and plannedacquisition date
(4) Planned seller(5) Acquisition financing(6) Settlement method: February 18, 2021
: February 18, 2021
: February 26, 2021
: Please refer to “4. Overview of Planned Seller” later in this document: Cash on hand and borrowings (Note): Lump sum payment on the acquisition date(Note) For details of the borrowings, please refer to “Notice Concerning Borrowing of Funds” separately announced today.

2. Reason for the Acquisition
marimo REIT has comprehensively taken into account its portfolio building policy, trends of the real estate market,
individual characteristics of the property, etc. in deciding on the Acquisition with an aim to reinforce the portfolio.
The property, which is a residential property developed by Marimo Co., Ltd. (“Marimo”), satisfies the investment
criteria of marimo REIT. marimo REIT recognized following points in deciding on the Acquisition.

1

・Located approximately a 3-minute walk from Sengen-cho Station on the Nagoya City Subway Tsurumai Line,
the Asset to Be Acquired attracts a certain amount of demand as a residence in close proximity to a station.
It also enjoys favorable access to the city center since it is only one stop (approximately 2 minutes) fromSengen-cho Station to Marunouchi Station, the closest station to Nagoya’s office and government district.
There are many convenient facilities for residents in the vicinity, including AEON Mall’s Noritake-no-Mori
Project (provisional name) located about 800 meters to the southwest which is scheduled to open in the fallof 2021. Given its convenience for daily living, transportation access, etc., the area is likely to expect due
residential demand mainly from singles.
・The property is a relatively new residence with deserved recognition of quality in its interior, exterior, facilities
and such. It expects persistent residential demand mainly for rental housing provided by companies, etc. andis likely to continue to see stable income.
3. Details of the Asset to Be Acquired
Property name
ArtizA Sengen-cho

Asset TypeResidence
Outline of specified asset
Type of specified asset Real estate trust beneficiary rightPlanned acquisition
February 26, 2021
date
Planned acquisition
495 million yen
Appraisal value
517 million yen
price(Date of value)(December 31, 2020)
Location (indication of 1-19-30 Shinmichi, Nishi-ku, Nagoya-shi, Aichi
residential address)
Transportation
Approximately a 3-minute walk from Sengen-cho Station on the Nagoya City Subway TsurumaiLineLand
Lot number
1926 and 1927, Shinmichi 1Building Construction February 10, 2020
chome, Nishi-ku, Nagoya-shi, Aichi
completion
date
Building
80%
Structure /Reinforced concrete structure
coverage
number ofwith flat roof/11F
ratio
floorsFloor-area
400%
Gross floor
1,161.45 m2
ratio
area
NITTO CONSTRUCTION CO., LTD.
Use district
Commercial district
Designer
First-Class Architect OfficeSite area
284.64 m2
Builder
NITTO CONSTRUCTION CO., LTD.
Form of
Proprietorship
Form of
Proprietorshipownershipownership
Annual lease revenue 34 million yen
Security deposit andSecurity deposit: 2 million yen(including common
guarantee money
area fee)
Leasable area
1,093.60 m2
Occupancy rate
100%
Master lease company Marimo Co., Ltd.
Master lease typePass-through type
Property
Marimo Co., Ltd.
Trustee
Mitsubishi UFJ Trust and Bankingmanagement
Corporationcompany
Planned trust
February 26, 2021
Planned trust term
February 28, 2031
establishment dateexpiration date
Whether pledged asNone
Number of leasable
40 single units
collateral
units
Probable Maximum
8.3%
Name of appraisal
Japan Valuers Co., Ltd.
Lossagency(Earthquake PML)
Notes:
No applicable matters.

2(Note) Definitions of terms are as follows.
・“Asset type” indicates one of marimo REIT’s investment target properties (residential, retail, hotel, office and parking).
・“Planned acquisition date” indicates the date on which marimo REIT plans to acquire the real estate trust beneficiary right.
・“Type of specified asset” indicates the type of real estate and other assets as a specified asset.
・“Location (indication of residential address)” indicates the residential address description, in principle.
・“Transportation” indicates the time stated in the engineering report.
・”Lot number” for land indicate the location of the building stated in the registry.
・“Building coverage ratio” for land indicates, in principle, the maximum value (designated building coverage ratio) (in cases of multiple values,all of them) determined by City Planning in accordance with the land use district, etc. for the ratio of the construction area of the structure
to the site area, as set forth in Article 53 of the Building Standards Act (Act No. 201 of 1950; as amended; hereinafter referred to as the“Building Standards Act”). Designated building coverage ratio may be mitigated, increased or decreased due to reasons such as being a fireresistant building in a fire prevention district, and may differ from the actual building coverage ratio applied.
・“Floor-area ratio” for land indicates the maximum value (designated floor-area ratio) (in cases of multiple values, all of them) determined by
City Planning in accordance with the land use district, etc. for the ratio of the gross floor area of the building to the site area, as set forth inArticle 52 of the Building Standards Act. Designated floor-area ratio may be mitigated, increased or decreased due to reasons such as thewidth of roads connecting to the site, and may differ from the actual floor-area ratio applied.
・“Use district” for land indicates the type of land use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act (Act No. 100 of1968; as amended).
・“Site area” for land is based on the description in the registry and may differ from the present state.
・“Form of ownership” for land and building indicates the type of right planned to be held by marimo REIT.
・“Construction completion date” for building indicates the date of new construction of the principal building stated in the registry.
・“Structure / number of floors” is based on the description in the registry regarding the principal building.
・“Gross floor area” for building indicates the floor area including those of ancillary buildings based on the description in the registry.
・“Designer” and “Builder” for building indicate company names at the time of designing and construction of the principal building.
・“Annual lease revenue” indicates an amount obtained by multiplying the monthly fixed rent (including common area fee) specified in thelease agreements (however, concerning lease agreements for the building, land (including flat parking lot) is excluded) concluded with thelessees of the Asset to Be Acquired as of December 31, 2020, by 12, rounded down to the nearest million yen. Furthermore, as to the Assetto Be Acquired, when a master lease agreement is concluded, “Annual lease revenue” indicates the amount of annual rent or monthly rent
multiplied by 12, that are specified in the lease agreements concluded with end tenants, if the amount of rent is equal to the sum of rents
specified in the lease agreements concluded with end tenants, rounded down to the nearest million yen.
・“Security deposit and guarantee money” indicates the sum amount of security deposit and guarantee money (rounded down to the nearest
million yen) required at the time of moving in, for tenants who have already moved in. Furthermore, as to the Asset to Be Acquired, when amaster lease agreement is concluded, the sum amount of security deposit, guarantee money, etc. specified in the lease agreements concluded
with end tenants is indicated, if the amount of security deposit is equal to said sum amount, rounded down to the nearest million yen.
・“Leasable area” indicates an area marimo REIT considers leasable in the building of the Asset to Be Acquired.
・“Occupancy rate” indicates a figure obtained by dividing the total of leased areas shown in the lease agreements concluded with the tenantsof the Asset to Be Acquired as of the end of December 2020 by the area marimo REIT considers leasable in the building of the Asset to Be
Acquired, rounded to the first decimal place.
・“Master lease company” and “Property management company” refer to the master lease company and property management (“PM”)
company planned for after the acquisition of the Asset to Be Acquired. “Master lease type” indicates the type of the master lease (either
pass-through type or fixed-rent type) planned for after the acquisition.
・“Trustee” indicates the trustee for the Asset to Be Acquired planned for after the acquisition.
・“Whether pledged as collateral” indicates whether there is collateral that continues to exist after the acquisition by marimo REIT.
・“Number of leasable units” indicate the number of units (number of sections) marimo REIT is able to lease, by unit type.
・“Notes” indicate matters considered material in light of their impact on the valuation amount, profitability, and disposability of the Asset toBe Acquired, as well as matters considered material in relation to the right relations and use, etc. of the Asset to Be Acquired as of today.

34. Overview of Planned Seller
(1)
Name
(2)
Location
Name and title and of(3)representative
(4)
(5)
(6)
(7)
(8)

Business description

Marimo Co., Ltd.
1-17-23 Kougokita, Nishi-ku, Hiroshima-shi, Hiroshima
Makoto Fukagawa, President
Project planning/development/architectural designing/project supervision/marketing and sales of real estate; property liquidity; environmental health;overseas real estate development
100 million yen (as of July 31, 2020)
September 1, 1970
20,590 million yen (Based on the balance sheet as of July 31, 2020)
96,067 million yen (Based on the balance sheet as of July 31, 2020)

CapitalDate establishedNet assets
Total assets
Major shareholders and(9)Marimo Holdings Co., Ltd.: 100%
shareholding ratio(10) Relationship between marimo REIT/Asset Manager and the company
Capital ties
As of today, the company holds 10.5% (16,031 units) of thenumber of marimo REIT’s investment units outstanding. Inaddition, the company is a subsidiary of Marimo Holdings
Co., Ltd., which holds the 100% stake in the Asset Manager.
Personnel ties
As of today, two of officers and employees of the AssetManager are seconded from the company.
Business ties
The company has entered into a sponsor pipeline and support
agreement (as amended) with marimo REIT and the AssetManager. In addition, the company has entered into a master
lease agreement and property management agreement withmarimo REIT. The company transferred five properties of its
portfolio assets to marimo REIT for 3,920 million yen (totalacquisition price) on January 21, 2020, based on a real estate
trust beneficiary right sale and purchase agreement it enteredwith marimo REIT on January 6, 2020.
Concerning Related Parties
The company is a fellow subsidiary of the Asset Manager andfalls under the category of related parties. In addition, thecompany falls under the category of interested persons, etc.
defined in the Act on Investment Trusts and Investment
Corporations. Furthermore, since the company is aninterested person, 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 thedecision-making procedures specified in the rules ontransactions with interested persons, etc. upon conducting
the transaction to acquire the Asset to Be Acquired.
(Note)

Acquisition price indicates the purchase price stated in the trust beneficiary right sale and purchase agreement (excluding consumption
tax, local consumption tax and other miscellaneous expense such as broker’s commissions) for the acquired assets.

4

5. Information on Property Acquirers, Etc.
Status of property acquisition, etc. from interested persons, etc. of marimo REIT, special purpose companies(subsidiaries) of which decision-making bodies are controlled by the interested persons, etc. and other persons withspecial relationship (the “Persons of Special Interest”) is as follows. (①: Name of the company or the name of theperson, ②: relationship with Persons of Special Interest, ③: Acquisition particulars and reason).
Property name(Location)

ArtizA Sengen-cho

Previous owner/trust beneficiary

Second previous owner/
trust beneficiary①, ②, ③①, ②, ③Acquisition (transfer) price
Acquisition (transfer) timing

Acquisition (transfer) price
Acquisition (transfer) timing① Marimo Co., Ltd.
② Sister company of the Asset Manager③ A property developed by Marimo Co., Ltd.;

Not a person of special interest

Acquired since it can expect stable
operations over a medium- to long-term,
after evaluating the market andmarketability.
Omitted since the previous owner/beneficiary
had owned it for more than one year beforetransferring it to marimo REIT.
February 2020

6. Transactions with Interested Persons, Etc.
Marimo, the fellow subsidiary of the Asset Manager, will be the seller of the Asset to Be Acquired and entrusted withproperty management and master lease management for the Asset to Be Acquired. Marimo falls under the categoryof interested persons, etc. defined in Article 201 of the Act on Investment Trusts and Investment Corporations andArticle 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations, and under
the category of interested person, etc. defined in the rules on transactions with interested persons, etc., which are
the internal rules set by the Asset Manager. Therefore, the Asset Manager has followed procedures specified in therules on transactions with interested persons, etc. (including consent based on approval of the Board of Directors ofmarimo REIT at a meeting to be held on February 18, 2020) in conducting acquisition transaction of the Asset to Be
Acquired and concluding the agreement with these parties.
7. Outline of Intermediation
There is no applicable intermediation pertaining to the above transaction.
8. Future Outlook
The impact of the Acquisition on the management status forecast is minimal. For details, please refer to “(REIT)
Financial Report for the Fiscal Period Ended December 2020” separately announced today.

59. Summary of Appraisal Statements
Summary of Appraisal Statements
Property name

ArtizA Sengen-choAppraisal value

517 million yen

Name of appraisal
agencyJapan Valuers Co., Ltd.

Time of valuation

December 31, 2020

Items
Value based on income approach

Details (Unit: thousand yen)

517,000

Value based on direct
capitalization method(1) Operating Revenue

519,000
33,785① Potential gross income

35,590② Vacancy loss, etc.

1,804(2) Operating Expenses

8,360

a. Maintenance andmanagement expenses

1,201

b. Water and utility fees

357

c. Repair costs andrestoration costs for
exclusive area portions

Summary, etc.
In light of the characteristics of each method and thedegree of equilibrium between the two values basedon income approach, estimated by correlation of thevalue based on the direct capitalization method withthe value based on the DCF method.
Assessed upon capitalization using standardized net
income which is recognized stable over the medium tolong term.

Recorded after taking into account the medium- tolong-term competitiveness of the subject real property,
based on the current rent levels, the new rent levels for
similar real property within the same supply anddemand area and their trends.
Recordedtaking
into
consideration
thecompetitiveness of the subject real property, etc.,
based on the actual vacancy rate and the standard
vacancy rate of similar real property.

Assessed through verification using the levels ofmaintenance and management expenses for similar
real property, based on the property managementagreement, etc.
Assessed based on the levels of water and utility fees
for similar real property.
Recorded costs for restoration to original condition for
exclusive area portions, in addition to 30% of the 12year average amount of repair and renewal costs in theengineering report.
Assessed at 3.0% of effective gross income, based on
the property management agreement.
Assessed taking into account tenant solicitation
expenses assessed based on the levels for similar real
property, the property management agreement, etc.
For the land, assessed as residential land based on thevalue assessed for 2020. For the building, assessed
based on the building replacement cost, etc.
Assessed based on the standard premium rate
assumed from insurance premiums for similar real
property.

1,016

d. Property management
fee

1,004

e. Tenant solicitation
expenses, etc.

917

f. Taxes and other publiccharges

3,048

g. Non-life insurance
premiums

113

6

h. Other expense(3) Net Operating Income(NOI)(4) Revenue from investmentof lump sum payments

25,424
Assessed investment income using an investment yieldof 1.0%.
Assessed at 70% of the 12-year average amount ofrepair and renewal costs in the engineering report.

24(5) Capital expenditures

518

Net Income (NCF)

24,930Capitalization rate

4.8%

Value based on DCF method

514,000

Discount rate

4.6%

Terminal capitalization rate

5.0%

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

Assessed based on the levels of expenses for similar
real property.

702

Assessed using discount rate analysis as a premise,incorporating the prospects for net income that are notfactored into the discount rate, etc., and referring tothe yield of similar real property.
Assessed by combining the method of calculating by
incorporating the individual characteristics of the realproperty into the yield of financial assets and themethod of calculating from a comparison of cases oftransaction of similar real property, and further
referring to the results of The Japanese Real Estate
Investor Survey.
Assessed by identifying the risks of comparison withcapitalization rate from the characteristics of the realestate market, potential of the subject real property,
etc.

535,000
41.1%
58.9%
No applicable matters.

*Website of marimo REIT: https://www.marimo-reit.co.jp/en/<Attached Materials>
Reference Material 1
Reference Material 2

Property Photo
Location Map7

Reference Material 1(Note)

Property Photo

The photo of the Asset to Be Acquired represents the condition of the asset at the time the photo was taken, and thus
the present state may differ due to changes, etc. over time.

8Reference Material 2

Location Map9