August 28, 2017
To All Concerned Parties
REIT Securities Issuer
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Sakura Sogo REIT Investment Corporation
Representative: Makoto Muranaka,
Executive Director:(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Contact:
Makoto Muranaka,
Representative Director andPresident
Tel:+81-3-6272-6608

Notice Concerning Debt Refinancing
Sakura Sogo REIT Investment Corporation (hereinafter the “Investment Corporation”) announces its
resolution to undertake a refinancing of short and long term borrowings (hereinafter the “DebtRefinancing”) as follows.
1.

Details of the Debt Refinancing

Classification

Short termLong term

LenderA syndicateof lenders
arranged by
SumitomoMitsui
BankingCorporation
as anarranger(Note 3)

Borrowingamount(billionyen)

Interestrate(Note 1)

1.4

Baserate +0.20%(Note 4)(Note 5)

Fixed/Floating

Repayment
date

August 31,
2018

Floating

5.6

Date ofborrowingBaserate +0.80%(Note 4)(Note 5)

August31, 2017

August 31,
2022

Method ofborrowing

Method ofrepayment

Security(Note 2)

Borrowingbased ona loan
agreement
to beconcluded
with thebanksshown inthecolumn oflenders tothe left

Bulletrepayment
at maturity

Unsecured
andunguaranteed(Note 1) Loan fees and other charges to be paid to the lenders are not included in the “Interest rate”.
(Note 2) The loan agreement will provide some financial covenants such as reserving certain amount of cash in accordance withthe financial situation of the Investment Corporation.
(Note 3) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited, Resona Bank, Limited
and Sumitomo Mitsui Trust Bank, Limited.
(Note 4) The “Base rate” applicable to the period for the calculation of the interest payable on an interest payment date is the onemonth Japanese yen Tokyo Interbank Offered Rate (TIBOR) published by the Japanese Bankers Association (“JBA”)
TIBOR Administration as of two business days prior to the most recent interest payment date of each interest payment
date. The base rate will be reviewed on every payment date. However, if there is no base rate that corresponds to theinterest calculation period, the base rate corresponding to the period calculated based on the method defined in theagreements will apply. The first period for the calculation of the interest payable is from August 31, 2017 to September
30, 2017. For changes in the JBA Japanese Yen TIBOR, which is the base rate, please refer to JBA TIBOR
Administration’s website (http://www.jbatibor.or.jp/rate/).

(Note 5) The first interest payment will be due on September 30, 2017, and subsequent interest payments will be due at the endof every month and on the principal repayment date. If a payment date is not a business day, payment will be made on
the next business day; provided, however, that if such payment date falls in the next month, payment will be made on
the immediately preceding business day.

2.

Reason for the Debt Refinancing

The Debt Refinancing results in the refinancing of certain short term loans and the repayment of certain
short-term loans entered into at the Initial Public Offering in 2016, all of which have a maturity date of August
31, 2017 (7.0 billion yen in total).
3.

Loans status after the Debt Refinancing(Unit: million yen)
BeforeIncrease(Decrease)

After

Short-Term Loans(Note 6)

7,000

1,400(5,600)

Long-Term Loans(Note 6)22,00027,600

5,600

29,00029,000-29,00029,000-

2.55

2.95

0.40

Total Loans
Total Interest-bearing liabilities
Average remaining years(Note 7)(Note 6) Short-term loans refer to loans with a maturity period of one year or less from the date of borrowing, and long-termloans refer to loans with a maturity period of more than one year from the date of borrowing.
(Note 7) Average remaining years on IPO acquisition date (September 9, 2016) was 2.79.

4.

Future Outlook

The Debt Refinancing is included in the “Notice Concerning Revision to Operating and Distribution
Forecasts for the Fiscal Periods Ending August 2017 and February 2018” dated July 31, 2017. As aresult there are no revisions to forecasts for the fiscal periods ending August 2017 (March 1, 2017 toAugust 31, 2017) and February 2018 (September 1, 2017 to February 28, 2018). Forecast cash
distributions remain unchanged at yen 2,803 and yen 3,330 per unit respectively.
5.

Additional Items Required to Ensure Appropriate Understanding and Judgments by Investors
Regarding Relevant Information

Concerning the risks as they chiefly pertain to the repayment of the funds, please refer to “Part 1. Fundinformation, I. Aspects of fund, 3. Investment risks” stated in the Annual Security Report submitted on May
29, 2017.

Sakura Sogo REIT Investment Corporation website address: http://sakurasogoreit.com/en/