August 29, 2019
For Translation Purpose Only
To All Concerned Parties

REIT Securities Issuer
Sakura Sogo REIT Investment Corporation
Representative:
Makoto Muranaka, Executive
Director:(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Representative:
Makoto Muranaka,
Representative Director andPresident
Mayumi Kobiki,
Contact:
Chief Financial Officer
Tel:+81-3-6272-6608

Notice Concerning Injunction to Unitholders’ Meeting convened by Lion Partners
As being announced in "Notice Concerning Execution of Merger Agreement between MIRAI Corporation and Sakura
Sogo REIT Investment Corporation (Follow-Up Report II)" dated August 20, 2019, Sakura Sogo REIT (hereinafter“SAKURA”) announced that GALAXY JREIT PTY LIMITED which is the sponsor and unitholder of SAKURA(hereinafter “SAKURA’s Sponsor”) and the supervisory director of SAKURA (hereinafter “Petitioners” collectively
with SAKURA’s Sponsor and the supervisory director of SAKURA) filed and SAKURA intervened as a supporter with
the Tokyo District Court (hereinafter “TDC”) a petition for injunction to prohibit resolution on agenda items of theunitholders’ meeting convened by Lion Partners Godo Kaisha (hereinafter “Lion Partners”) to be held on August 30,
2019 (hereinafter the “Petition”). Today, the Petition was settled by compromise at TDC and SAKURA announces asfollows.
1.

Summary of Settlement
SAKURA’s Sponsor and Lion Partners entered into a compromise to settle the Petition on the agreement that eachparty confirms that submission by SAKURA’s Sponsor of the proposals below at the general meeting ofunitholders to be held by Lion Partners on August 30, 2019 based on permission by Kanto Local Finance Bureau(the “General Meeting of Unitholders”) is legitimate, and confirms further that as a result of submission of suchproposals, deemed approval as provided for in Article 93 of the Investment Trust and Investment Corporations Actand Article 17, Paragraph 1 of Articles of Incorporation shall not be applicable to the election of new Executive
Director on the General Meeting of Unitholders (Agenda Item 2) and entrance into an asset managementagreement (Agenda Item 4), and agreed on certain matters with regard to the operation and proceedings of theGeneral Meeting of Unitholders including as below, and thereby the Petitions shall be withdrawn.
<Matters concerning Proposals>
Counter proposal to Proposal 2: Appointment of Tamotsu Hagino, as a new Executive Director
Counter proposal to Proposal 4: Enter into a new asset management agreement with Mitsui Bussan & IDERAPartners Co., Ltd.
<Matters concerning Proceedings on the General Meeting of Unitholders >・ Sugihara Toru, the representative of Lion Partners, as tentative Chairman of the General Meeting ofUnitholders shall, immediately upon becoming the tentative chairman, propose to elect Shigeru
Kaneda, supervisory director of SAKURA, as the chairman of the General Meeting of Unitholders
・ Lion Partners shall vote for the election of Shigeru Kaneda as the Chairman with regard to all voting
rights it holds, and not to vote for or against such election with regard to the voting rights based onproxies it received.

2.

Background of the Settlement
As stated in “Announcement Regarding the Request by Sponsor to Add Proposal to Convocation Notice forUnitholders’ Meeting” on July 4, 2019, SAKURA’s Sponsor requested to SAKURA and Lion Partners on July 4,
2019, to add outline of summary and reasons for proposals, “Appointment of Tamotsu Hagino, as a new executivedirector” and “Enter into a new asset management agreement with Mitsui Bussan & IDERA Partners Co., Ltd.”submitted by SAKURA’s Sponsor as the counter proposals in the convocation notice of unitholders’ meeting
convened by Lion Partners. SAKURA also requested to Lion Partners on August 1, 2019 to add outline ofsummary for such proposals by SAKURA’s Sponsor in the convocation notice of unitholders’ meeting convened

by Lion Partners. However, despite these requests Lion Partners did not include proposals by SAKURA’s Sponsorand SAKURA in the convocation notice sent on August 14, 2019, due to their assertion that the requests to add thesummary for proposals are not legitimate. SAKURA believes that failure to include these items denies
SAKURA’s unitholders the opportunity to fairly consider any alternate proposal other than that proposed by Lion
Partners and that such convocation procedure and resolution is illegal and grossly unfair. Therefore, SAKURA’sSponsor and the supervisory director of SAKURA filed the Petition with the TDC.
Based on the proceedings at TDC, it is confirmed that the proposals by SAKURA’s Sponsor can be legitimately
proposed and adopted at the general meeting and deemed approval shall not be applicable to either proposal ofappointment of Executive Director or entering into an asset management agreement with an asset managementagreement. And, matters concerning proceedings on the general meeting of unitholders were agreed to a certainextent.
Considering above situations and the fact that the general meeting of unitholders convened by Lion Partners andSAKURA respectively will be held on the next day and to avoid further confusion for unitholders by
postponement, continuation or convocation again of the general meeting of unitholders, which could occur if theresolutions relating to appointment of Executive Director and entering into an asset management agreement withan asset management agreement were prohibited, SAKURA and the Petitioners decided to settle the case bycompromise.
3.

Outlook
SAKURA and the Petitioners believe that the convocation procedure for the general meeting of unitholders convened
by Lion Partners is illegal and grossly unfair and remain deeply concerned with such convocation procedure.
However, considering matters stated in 2 above, SAKURA and the Petitioners agreed to settle with compromise.
Based on the settlement stated in 1 above, SAKURA’s Sponsor will submit the proposals, “Appointment of a new
executive director, Tamotsu Hagino” and “Enter into a new agreement with Mitsui Bussan & IDERA Partners Co.,Ltd.” as the counter proposals to proposals 2 and 4 by Lion Partners at the general meeting of unitholders convened
by Lion Partners to be held on August 30, 2019. In addition, as each counter proposal is a “conflicting proposal”
to those proposed by Lion Partners, deemed approval shall not be applicable to these resolutions. For the summaryof proposals and the reason of such proposals by SAKURA’s Sponsor, please refer to “Announcement Regarding
the Request by Sponsor to Add Proposal to Convocation Notice for Unitholders’ Meeting” announced on July 4,2019.
We cordially ask SAKURA unitholders to support the proposals to be submitted by SAKURA’s Sponsor at thegeneral meeting of unitholders convened by Lion Partners and proposals by SAKURA at the general meeting ofunitholders convened by SAKURA to be held on August 30, 2019.

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