May 24, 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.
(“SREFM”)
Contact: Makoto Muranaka.
Representative Director and President
Tel: +81-3-6272-6608

Notice Concerning Borrowing
Sakura Sogo REIT Investment Corporation (hereinafter the “Investment Corporation”) announces its
decision to undertake a long-term borrowing (hereinafter the “Borrowing”) as follows.
1.

Details of the Borrowing

ClassificationLender

Borrowingamount(billionyen)

Interest rate
(Note 1)

Fixed/Floating

Date ofborrowing

Repayment
date

Method ofborrowingA
Borrowingsyndicatebased on aof lenders
loanarranged
agreement
byto beTo beSumitomo
concluded
June 3,
May 31,Long term
1.6
determined
Fixed
Mitsuiwith the2019
2022(Note 3)
Bankingbanks
Corporatio
shown inn as anthe column
arrangerof lenders(Note 2)to the left
(Note 1) Loan fees and other charges to be paid to the lenders are not included in the “Interest rate”

Method ofrepayment

Security

Bulletrepayment
at maturity

Unsecuredandunguaranteed(Note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, THE NISHI-NIPPON CITY BANK, LTD., Shinsei
Bank, Limited and Aozora Bank, Ltd.
(Note 3) The first interest payment will be due on August 31, 2019, and subsequent interest payments will be due at the end of every
3-months 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. The Investment Corporation will issue a separate notice upon the determination of the interest rates.

2.

Reason for the Borrowing

The Investment Corporation intends to allocate the funds for part of the acquisition of THE PORTALAKIHABARA to be acquired as stated in the “Notice Concerning Asset Acquisition and Lease of Domestic
Real Estate Trust Beneficiary Rights” announced today, and related incidental expenses.
3.

Total amount of loan proceeds, purpose of use and effective date(1) Total amount to be borrowed
1.6 billion yen(2) Detailed Use of Proceeds
To be allocated for part of the fund for acquisition of THE PORTAL AKIHABARA to be acquired andrelated incidental expenses.
(3) Expenditure Date
June 3, 20194.

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

After

Short-Term Loans(Note 4)900

900

0Long-Term Loans(Note 4)26,70028,3001,600

27,60029,2001,600

27,60029,2001,600

Total Loans
Total Interest-bearing liabilities(Note 4) Short-term loans refer to loans with a maturity period of one year or less from the date of borrowing, and long-term loans
refer to loans with a maturity period of more than one year from the date of borrowing.

5.

Future Outlook

There are no revisions to forecasts for the fiscal periods ending June 2019 (January 1, 2019 to June 30,2019) and December 2019 (July 1, 2019 to December 31, 2019). Forecast cash distributions remainunchanged at 2,634 yen per unit for the fiscal period ending June 2019 and 2,427 yen per unit for the fiscal
period ending December 2019 respectively as stated in the Flash Report for Fiscal Period Ending December
2018 dated 14 February 2019.
6.

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 March 28,
2019.

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