19 June 2019
To All Concerned Parties
REIT Securities Issuer
Sakura Sogo REIT Investment Corporation
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Makoto Muranaka
Executive Director(Securities Code 3473)
Asset Management Company
Sakura Real Estate Funds Management, Inc.
Contact: Makoto Muranaka.
Representative Director and President
Tel: +81-3-6272-6608

Sakura Attracts New Tenants for NK Building
Sakura Sogo REIT Investment Corporation (hereinafter “Sakura REIT”) is pleased to provide
the following update relating to re-tenanting at NK Building. Please also refer to our earlier
announcement “Notice Concerning Tenant Change at the Property (NK Building)” dated 4February 2019.
Sakura REIT announces a return to full occupancy at NK Building is likely after the swift
adoption of a successful leasing strategy, and upon completion of return to full occupancy at NK
Building, Sakura REIT’s Office Building Portfolio Occupancy Rate will return to 100%.
NK Building is one of Sakura REIT’s central Tokyo office buildings and is the third largest officeasset by acquisition price. The building will return to 100% occupancy subject to completion offive new lease contracts which equate to seven office floors, scheduled to occur in July 2019.
Letters of Intent (“LOI”) have been received from the five new tenants and although the LOI’s do
not have legally binding effect, Sakura REIT strongly believes that, based on the negotiations sofar, these companies will commence occupation upon completion of minor refurbishment work.
The first stage of this work having commenced being the ground floor entry lobby.
As announced on 4 February 2019, Sakura REIT’s asset manager, Sakura Real Estate Funds
Management (“SREFM”) was informed of the cancellation from the previous tenant at NK
Building on 29 January 2019. The cancellation indicated the current tenant will vacate NK
building on 31 July 2019 (for 5 office floors) and on 30 September 2019 (2 office floors).
SREFM moved swiftly to attract new tenants with its leasing strategy focused on achieving five
key objectives:-Optimizing lease revenue from new tenants
Minimizing income void (vacancy period)
Completing minor refurbishment works to further enhance the appeal of the space fornew tenants
Mitigating ongoing leasing risk by releasing to multiple new tenants
Enhancing the value of the asset by successfully executing this strategy

Negotiated rents for all seven office floors are at, or exceed, forecast which is higher than thecurrent passing rent. SREFM also anticipates that the leasing down time will be less thanpreviously assumed for the forecast. The minor refurbishment works have commenced, are onschedule, and will be completed within the budgeted allowance. Once all leases are completed,occupancy of the Sakura REIT office portfolio will return to 100% and this asset will benefit froman increase in tenant diversification reducing ongoing leasing risk.

The following table provides an outline of cancellation effective dates, original forecast andrevised rent start dates for new tenants:
Floor
8&94&76
3
2

Cancellation
effective date
31 July 201930 September 201931 July 201931 July 201931 July 2019

Forecast rent start date
OriginalRevised
1 December 2019
1 October 2019
1 February 2020
1 November 2019
1 December 2019
1 October 2019
1 December 2019
1 September 2019
1 December 2019
1 October 2019

Difference(months)
23232SREFM has an outstanding track record in terms of leasing and has fully leveraged its skills todeliver an excellent working environment for the new tenants whilst optimizing revenue andvalue for Sakura unitholders.
Currently, SKR is not revising its earnings forecast announced on 14 February 2019. Full details
on the success of the leasing strategy and the impact on the performance of Sakura REIT will
be provided as part of Sakura REIT’s FP6 financial results presentation scheduled for midAugust 2019.
-Ends-Sakura Sogo REIT Investment Corporation website address: http://sakurasogoreit.com/en/