[For Translation Purposes Only]

July 9, 2024

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Shuhei Yoshida, Executive Director
Asset Management Company: Nomura Real Estate Asset Management Co., Ltd.
Masaomi Katayama, President & Chief Executive Officer
Inquiries: Hiroyuki Masuko
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Acquisition of Trust Beneficial Interest in Domestic Real Estateand Disposition of Trust Beneficial Interest in Domestic Real Estate
Nomura Real Estate Master Fund, Inc. (“NMF” or the “Fund”) announces the decision made today by Nomura Real
Estate Asset Management Co., Ltd., a licensed asset management company retained by the Fund to provide asset
management services, to acquire and dispose of properties (the “Acquisition” or the “Disposition” or collectively the“Transaction”), as described below.
1.

Summary of Assets to Be Acquired/Disposed of（1）

Summary of Asset to Be Acquired

Property Name

Use

Landport Tama

Logistics

Scheduled
Date of
Purchase andSale Agreement

July 10, 2024

Scheduled
Date of
Acquisition

SellerAugust 1, 2024

Nomura Real
EstateDevelopment,
Co., Ltd.

PresenceofIntermediary

AnticipatedAcquisitionPrice(¥ million)(Note 1)

None

17,520(Note 1) The amounts stated exclude acquisition related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2) The asset to be acquired is trust beneficial interest in trust of real estate.

The above property to be acquired is referred to hereinafter as the “Asset to Be Acquired.”（2）

Summary of Asset to Be Disposed of
Scheduled
Date of
Purchaseand Sales
Agreement

Scheduled
Date of
Disposition

Harumi Island Triton
Office July 10, 2024
Square Office Tower Y

July 31, 2024

Property Name

Use

Presence
TransfereeofIntermediary

ScheduledTransfer
Price(Note 1)(¥ million)

Undisclo
-sed

None

22,820Book
Value(Note 2)(¥ million)

17,829Difference(Note 3)(¥ million)

4,990(Note 4)(Note 1) The amount stated excludes adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes and local consumption
tax.
(Note 2) Anticipated book value at the date of disposition.
(Note 3) This is only a reference value which is the difference between the scheduled transfer price and the anticipated book value, therefore, it is different
from gain or loss on sale.
(Note 4) The transferee is undisclosed because consent to the disclosure has not been obtained from the transferee.
(Note 5) The asset to be disposed of is a trust beneficial interest in trust of real estate.

－ １ －The above property is referred to hereinafter as the “Asset to Be Disposed of.” The Asset to Be Acquired and Asset to
Be Disposed of may be separately referred to as the “Asset.”2.

Reasons for the Transaction
The Fund determined that the Transaction would help secure stable income and steady growth of the Fund’s
portfolio over the medium to long term, in line with the asset management objectives and policies specified in the
Fund’s Articles of Incorporation.
On October 18, 2023, the Fund announced strategies to decrease the ratio of the office building sector, and theTransaction will be used to facilitate the strategies.
(Reference) Changes in the portfolio asset type diversification (based on the acquisition price (anticipated))

As of April 30, 2024

After the Transaction

The Asset to Be Disposed of was succeeded upon the merger with Top REIT, Inc., and thus its book values foraccounting purposes and tax purposes are the value at the time of the merger and the value registered by Top REIT,
Inc. respectively. Accordingly, the book value for accounting purposes is higher than that for tax purposes, and the
Disposition results in a gain on sale for accounting purposes and a loss on sale for tax purposes, so the gain on salefor accounting purposes will not be taxable income. T herefore, internally reserving a portion of the gain on sale foraccounting purposes resulting from the Asset to Be Disposed of while satisfying conduit taxation requirements, etc.
enables the Fund to utilize the residual gain as free cash. Based on the Di sposition of the Asset to Be Disposed of,the Fund plans to utilize a portion of the amount equivalent to the gain on sale from the Disposition to acquire own
investment units as a new unit shareholder return measure. Additionally, regarding the amount equ ivalent to the gainon sale remaining after utilizing it for the acquisition of own investment units, the Fund will continue to evenly
distribute across four fiscal periods—from the fiscal period ending August 31, 2024 to the fiscal period ending
February 28, 2026—based on the above-mentioned strategies (Note).
For details on the reasons for the acquisition of the Asset to Be Acquired and the disposition of the Asset to Be
Disposed of, as well as details on the acquisition of own investment units, please r efer to “3. Summary of Assets to
Be Acquired/Disposed of,” “Supplement Documentation for Press Release” dated today, and “Notice Concerning
Determination of Matters Relating to Purchase and Retirement of Own Investment Units” described below.
(Note) The Fund plans to retain a portion of the gain on sale arising in the period of sale as internal reserves and make distributions in excess of earnings forthe amount of the portion over the three fiscal periods starting from the following fiscal period. In principle, the amount will be evenly distributed
across the four fiscal periods including the period of sale, but even distributions may not be possible as there is a certain limit on the amount that canbe held as internal reserves while avoiding tax payment.

－ ２ －

3.

Summary of Asset to Be Acquired/Disposed of(1) Summary of Asset to Be Acquired
Landport Tama
＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・ The Asset is located approximately 8.7 km away from the Sagamihara IC on the Metropolitan Inter-City
Expressway and approximately 12.0 km from the Hachioji IC on the Chuo Expressway, making it a logistics
facility conveniently located to broadly cover the metropolitan area, including central Tokyo, the top
consumption area in Japan, Kanagawa, and Saitama.
・

The Asset is approximately 13 minutes away by bus from Hashimoto Station of the JR Yokohama Line and
Keio Sagamihara Line. It is also easily commutable from the nearest station, making the Asset excellent fromthe viewpoint of securing labor for tenant companies.

・

The Asset is divided into three parts over two floors and can accommodate up to three tenants, making it awarehouse that can flexibly address tenants’ needs. The Asset is part of the Landport Series of logistics facilities
developed by Nomura Real Estate, and it has the specifications of a highly functional logistics facility with an
11 m x 10.5 m grid, an effective height of 5.5 m under the beam, and a floor loading capacity of 1.5 t/m 2.
Therefore, the Asset is expected to be stably operated over the medium- to long-term.

・The Property obtains the five stars (★★★★★) rating of BELS (Building Energy-Efficiency Labeling System)and the evaluation of “ZEB (Net Zero Energy Building)” and has high environmental performance.

<Summary of the Asset to Be Acquired>
Property Name
Landport TamaType of Asset
Trust beneficial interest in trust of real estate
Trustee
Mitsubishi UFJ Trust and Banking Corporation
Term of Trust Agreement
From August 1, 2024 to August 31, 2034
Registry
2-108-4 Yarimizu, Hachioji City, Tokyo
Location (Note 1)
Street2-108-4 Yarimizu, Hachioji City, Tokyo(Note 2)
23-minute walk from Hashimoto Station of the JR Yokohama and Keio Lines
24-minute walk from from Tamasakai Station of the Keio Line
AccessApproximately 8.7 km from the Sagamihara IC on the Ken-O Expressway and12.0 km from the Hachioji IC on the Chuo Expressway
LineCompletion Date(Note 1) June 30, 2022
Use(Note 1)
Logistics
Two-floor reinforced-concrete steel-frame structure with alloy-plated steel sheet
Structure(Note 1)
roofingArchitect
JFE Civil Engineering & Construction Corp.1st Class Registered Architect’s Office
Builder
JFE Civil Engineering & Construction Corp.
Building Inspection Agency Urban Housing Evaluation Center
Land49,452.25 m2
Area (Note 1)
Floor
49,813.74 m2
Area
Land
Ownership
Type ofOwnership
Building Ownership
Building Coverage Ratio
70%(Note 3)
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company
Type of Master Leasing

200%
None
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Retail Properties Co., Ltd.
―
―

－ ３ －

Seismic Risk (PML)(Note 5)

Notes
Anticipated AcquisitionPrice

6.0% (Based on the Earthquake PML Appraisal Report as of January 2024 by
Sompo Risk Management Inc.)
Nomura Real Estate Development Co., Ltd. And Nomura Real Estate Retail
Properties Co. Ltd., the property management company, are considered a related
party under the Act on Investment Trusts and Investment Corporations.
¥17,520 million¥18,800 million (Based on the capitalization approach as of June 1, 2024)(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI(Note 6)¥689 million
Leasing Status (As of July 9, 2024) (Note 7)
Total Number of Tenants
1
Name of Tenants
Not disclosed
Total Rental Income
Not disclosed(Annual)Security Deposits
Not disclosed
Occupancy Rate
100.0%
Total Leased Floor Space
49,851.90 m2
Total Leasable Floor Space 49,851.90 m2
May
May
May
May
May
Historical Occupancy
2020
2021
2022
2023
2024
Rates(Note 8)―――
100.0%
100.0%
Appraisal Value and Method(Note 1) Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
(Note 3) Building Coverage Ratio
As the location of the Asset is within a neighboring commercial zone, a building coverage ratio of 60% is normally applied; however, theapplied ratio has been increased to 70% because the Asset is built in a corner plot.
(Note 4) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 5) PML(Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to occur once every 475 years, or once every 50 years with a 10%
probability, during the anticipated period of use (i.e., 50 years as the useful life of a standard building) as a ratio (percentage) of the expected
recovery cost to the replacement cost.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with June 1, 2024
as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is the total number of end tenant actually leasing space in the building of the Asset to be Acquired as of today.
“Name of Tenants”, “Total Rental Income (annual)” and “Security Deposits” are not disclosed because consent of the end tenant to suchdisclosure has not been obtained.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of today by Total Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of today.
“Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities, residential facilities, hotels, etc. within the
Asset to be Acquired that can be leased as of today (If the common area, etc. is leased, the floor space thereof is included).
(Note 8) Historical Occupancy Rates
There are no applicable occupancy rates for the end of May 2022 and before because the building was not yet completed. The historicaloccupancy rates are based on the information from the seller.

－ ４ －(2) Summary of Asset to Be Disposed ofHarumi Island Triton Square Office Tower Y＜Reasons for the Disposition＞
The Disposition is determined by comprehensively considering the possibility of future decreases in thecompetitiveness of the Asset to Be Disposed of due to its location and other factors as part of property replacement
measures to improve the portfolio quality.

<Summary of the Asset to Be Disposed of>Property Name
Harumi Island Triton Square Office Tower Y
Type of Asset
Trust beneficial interest in trust of real estate
Trustee
Sumitomo Mitsui Trust Bank, Ltd.
Registry
1-85 Harumi, Chuo Ward, Tokyo
Location(Note 1)Street1-8-11 Harumi, Chuo Ward, Tokyo
Access7-minute walk from Kachidoki Station on the Toei Oedo Line
Completion Date(Note 1)
October 1, 2001
Use(Note 1)
OfficeStructure(Note 1)
S･RC･SRC, B4/40FLand
39,569.53 m2 (Note 2)
Area(Note 1)
Floor Area
24,000.76 m2 (Note 3)Land
Co-ownership (Co-ownership ratio :16,884,921/100,000,000)
Type ofOwnership
Building
Compartmentalized ownership
Building Coverage Ratio
83％(Note 4)
Floor Area Ratio
770％(Note 5)
Collateral
None
Property Management Company
Nomura Real Estate Development Co., Ltd.
Master Leasing Company―
Type of Master Leasing―
2.7％ (Based on the Earthquake PML Appraisal Report as of March
Seismic Risk (PML)(Note 6)2024 by Sompo Risk Management Inc.)
Nomura Real Estate Development Co., Ltd., the property
Notes
management company, is considered a related party under the Act on
Investment Trusts and Investment Corporations.
Acquisition Price¥18,200 million
Scheduled Transfer Price¥22,820 million
Book Value (Note 7)¥17,829 million
Difference¥4,990 million¥17,400 million (Based on the capitalization approach as of February
Appraisal Value and Method
29, 2024)(Appraiser: Daiwa Real Estate Appraisal Co., Ltd.)(Note
8)
Appraisal NOI¥735 million
Leasing Status (As of July 9, 2024) (Note 9)
Total Number of Tenants 7
Total Rental Income¥1,414 million (including common area charges)(Annual)Security Deposits¥1,144 million
Occupancy Rate
98.2％
Total Leased Floor Space 23,838.77 m2
Total Leasable Floor
24,288.08 m2
Space
May
May
May
May
May
Historical Occupancy
2020
2021
2022
2023
2024
Rates
100.0％
100.0％
100.0％
96.3％
98.2％(Note 1)Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.

－ ５ －(Note 2) Land Area
The area of the entire site (the entire West District) of the building including the Asset. It also includes the area designated as a road under
Article 42, Paragraph 1, Clause 5 of the Building Standards Act and the area incorporated into the road area.
(Note 3) Floor Area
The area of the exclusive portion held by the Fund through the trustee.
(Note 4) Building Coverage Ratio
The building coverage ratio for the location of the Asset is designated as 80%, but the applied ratio has been increased to 83% due to theTokyo Metropolitan Government Redevelopment District Plan (Harumi 1-chome district).
(Note 5) Floor Area Ratio
The floor area ratio for the location of the Asset is designated as 500%, but the applied ratio has been increased to 770% due to the Tokyo
Metropolitan Government Redevelopment District Plan (Harumi 1-chome district).
(Note 6) PML(Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to occur once every 475 years, or once every 50 years with a 10%
probability, during the anticipated period of use (i.e., 50 years as the useful life of a standard building) as a ratio (percentage) of the expected
recovery cost to the replacement cost.
(Note 7) Book Value
Anticipated book value at the date of disposition.
(Note 8) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with February 29,
2024 as the appraisal date.
(Note 9) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset as of today.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the leaseagreements by the total number of end tenants as of today, actually leasing space in the building of the Asset as of today (rounded down
to the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection with the said leaseagreements, such as parking fees, signboard fees and warehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements (rounded down
to the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of today.
“Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities, residential facilities, hotels, etc. within
the Asset that can be leased as of today (if the common area, etc. is leased, the floor space thereof is included).

4.

Profile of Seller of the Asset to be Acquired
Company Name
Nomura Real Estate Development Co., Ltd.
Head Office
1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo
Representative
Daisaku Matsuo, President & CEO
Principal Business
Real Estate
Capital¥2,000 million (as of April 1, 2024)
Established
April 15, 1957
Net Assets¥218.5 billion (as of March 31, 2024)
Total Assets¥1,989.5 billion (as of March 31, 2024)
Major Shareholder
Nomura Real Estate Holdings, Inc. (100%)(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller
Nomura Real Estate Development Co., Ltd. holds 7.01% of the Fund’s investment
units (as of February 29, 2024). As a wholly owned subsidiary of Nomura Real Estate
CapitalHoldings, Inc., which also holds 100% interests in the shares of the Asset Management
Company, Nomura Real Estate Development Co., Ltd. is a related party of the AssetManagement Company as defined in the Investment Trust Act.
The Asset Management Company’s employees and officers are seconded from
Personal
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd. is a property management company of
the Fund and a lessee of real estate properties owned by the Fund. Moreover, the Asset
Transactions
Management Company has entered into an agreement on provision of information
and a basic agreement on the leasing value chain with the said company.
－ ６ －Related Party
Status5.

Nomura Real Estate Development Co., Ltd. does not fall under the definition of a
related party of the Fund for the accounting purpose. However, the said company is arelated party of the Asset Management Company as it is a subsidiary of a common
parent company, as stated above.

Profile of Transferee of the Asset to Be Disposed of
Detailed information other than that the transferee is domestic specific purpose company is not disclosed because
consent to the disclosure of detailed information has not been obtained from the transferees.
As of today, neither the Fund nor the Asset Management Company has any notable capital, personnel or transactional
relationships with the transferees, and the transferees are not related parties of either the Fund or the Asset Management
Company.

6.

Status of Owner of the Asset to be Acquired
Status of Owner
Company Name
Relationshipwith Parties
with Special Interest
Background/Reasons for
Acquisition, etc.
Acquisition Price(Including Other RelatedExpenses)Acquisition Date

Current Owner and/or Trustee
Nomura Real Estate Development
Co., Ltd.
Please refer to “4. Summary of
Seller of Asset to Be Acquired andBuyer of Asset to Be Disposed of ”
above
For development for later sale
Newly built in June 2022

Previous Owner and/or Trustee－(Note)

－

－

－

－

－

－

(Note) Omitted because, for the land, the current owner owned for more than one year, and, for the building, there is no previous owner.

7.

Transactions with Related Parties(1) Transactions Related to the Acquisition of the Asset to Be Acquired
The acquisition of the Asset to be Acquired is considered to fall under transactions with a related party under theInvestment Trust Act as stated above. Accordingly, the acquisitions of each property, the acquisition prices, and otherrelevant terms have been duly examined and authorized by the Asset Management Company’s compliance committee
and investment committee pursuant to its investment committee rules, rules of compliance, compliance manual, rules
concerning transactions with related parties, and other relevant internal rules and guidelines.
(2) The property management of Landport TamaThe property management companies of Landport Tama, Nomura Real Estate Development Co., Ltd. andNomura Real Estate Partners Co., Ltd., are considered a related party under the Investment Trust Act as stated above.
Accordingly, the fees and other terms of the consignment of property management related to Landport Tama have been
duly examined and authorized by the Asset Management Company’s compliance committee and investment committee
pursuant to relevant internal rules and guidelines.
Since neither (1) nor (2) above falls under the category of transactions between the Fund and a related party of anasset management company as set forth in Article 201-2, Paragraph 1 of the Investment Trust Act, the approval of theBoard of Directors of the Fund has not been obtained.

－ ７ －

8.

Form of Payment, etc.
(1) Form of Payment
Regarding the Acquisition, on the scheduled date of acquisition, the Fund will pay the seller the entire purchase priceof the Assets to be Acquired in a lump sum by using cash on hand.
In addition, regarding the Disposition, on the scheduled date of disposition, the Fund will receive from the transferee
the sale price of the Asset to be Disposed of.
The Fund plans to use the funds to be obtained through the Disposition for funds on hand used at the time of theAcquisition.

9.

Schedule for the Transaction
July 10, 2024

Conclusion of sale agreement for the acquisition of the Asset
Conclusion of sale agreement for the disposition of the Asset

July 31, 2024
August 1, 2024

Disposition of the Asset to be Disposed ofAcquisition of the Asset to be Acquired

10. Outlook
For the impact of the Transaction on the operating status of the Fund for the fiscal period ending August 2024
(March 1, 2024 to August 31, 2024), please refer to “Notice Concerning Revised Forecasts of Financial Result andDistribution for the Fiscal Period Ending August 31, 2024 ” below. Also, as the effect of the Transaction on theoperating status of the entire portfolio for the fiscal period ending February 2025 (September 1, 2024 to February 28,2025) is immaterial, there is currently no change in the outlook for the fiscal period ending February 2025.

－ ８ －11. Appraisal Summary(1) Assets to be Acquired
Property Name

Landport Tama

Appraisal Value¥18,800,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

June 1, 2024
(Yen)
Item

Capitalization Approach Price
Price Calculated by the Direct Capitalization
Approach(1) Operating Income(a)-(b)(a) Gross Rental Income(b) Losses due to Vacancies,etc.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

Amount orPercentage
18,800,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Insurance Premium

Undisclosed

Other Expenses

Undisclosed(7) Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach

Undisclosed(Note)

Undisclosed
689,818,827
3.6％

Calculated based on capitalization rates of surrounding
properties and with consideration for the location andunique characteristics of the Property

18,300,000,000
3.4％

Terminal Capitalization Rate

3.8％

Ratio of Land

(Note)

689,650,036

Discount Rate

Cost Approach Price

Determined by referring to the price calculated with thedirect capitalization approach and the price calculated withthe discounted cash flow approach

19,200,000,000

Repair Costs
Property Management Fees
Advertisement for Leasing
Taxes(3) Net Operating Income from Leasing
Business ((1) - (2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow((3) + (4) - (5))

Grounds

Calculated based on capitalization rates of surrounding
properties and with consideration for the location andunique characteristics of the Property
Calculated with consideration of the above-mentioned
capitalization rate, the trend of investment yields in future,etc.

16,200,000,000
70.0％

Ratio of Building

30.0％
The Property is a logistics facility located in Hachioji City. The neighborhood and surrounding area has logistics
facilities and roadside shops along major streets with detached houses behind them. The area is equipped withgood access to ICs on surrounding expressways and major roads, providing the Property with a highMatters Noted in
geographical advantage as a distribution hub to the city center and as a wide-area logistics hub throughReconciliation of Indicatedexpressways. The Property’s plot is surrounded by roads on three sides and is in a large, irregular shape,
Value and Determination of providing efficiency for use as a logistics site. The Building, which has been properly maintained and repaired, isAppraisal Value
expected to stably operate over a long time.
In view of the above factors, the appraisal value was determined with an emphasis on the capitalization approachprice appropriately reflecting the value for typical investors.
(Note) These items contain information for which the Fund owes a duty of confidentiality to the lessees or information that could be used to calculate
such information. The disclosure of these items could result in a breach of said duty of confidentiality, which could negatively impact the Fund andthus the interests of its unitholders. Accordingly, these items are undisclosed.

－ ９ －(2) Assets to be Disposed
Property Name

Harumi Island Triton Square Office Tower Y

Appraisal Value¥17,400,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

February 29, 2024
(Yen)
Item

Capitalization Approach Price
Price Calculated by the Direct Capitalization
Approach(1) Operating Income ((a) - (b))(a) Gross Rental Income(b) Losses due to Vacancies, etc.

Amount orPercentage

Grounds

17,400,000,000
17,500,000,000
1,456,344,770
1,569,345,392
113,000,622(2) Operating Expenses

721,150,753

Maintenance Costs

272,895,480

Utilities Costs

172,833,804

Repair Costs

21,646,136

Property Management Fees

26,214,206

Advertisement for Leasing

8,579,500

Taxes
Insurance Premium

Calculated by taking the price calculated with the discounted cash
flow approach as the standard and examining it with the pricecalculated by the direct capitalization approachCalculated by reducing stable medium- to long-term net income
based on the capitalization rate

212,462,500
6,519,127

Recorded by examining the levels of maintenance costs at similar
properties and referring to actual costs in past years
Recorded by examining the levels of utilities costs at similar
properties and referring to actual costs in past years.
Recorded based on the annual average amount of repair costs givenin the Engineering Report
Recorded by examining the levels of property management fees atsimilar properties in light of the contract rate, determining that thecurrent building management duty is roughly at the standard level
Recorded based on the move-ins and move-outs calculated byapplying the anticipated rate of move-ins to and move-outs fromrooms for rent and parking with consideration of the advertisement
for leasing costs, etc. calculated based on their levels at similar
properties
Calculated based on actual costs in the fiscal year 2023
Recorded by examining the levels of the premium rates at similar
properties, determining the actual costs to be appropriate

Other Expenses(3) Net Operating Income from Leasing
Business ((1) - (2))(4) Profit through Management of
Temporary Deposits, etc.

735,194,017
10,098,607

Calculated based on an investment yield of 1.0%

(5) Capital Expenditure Reserve

98,591,098

Calculated based on the annual average repair and renewal costs givenin the Engineering Report with consideration of the CM fees(6) Net Cash Flow((3) + (4) - (5))(7) Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach0Calculated based on appropriate rent levels recognized as stable overthe medium- to long-term
Calculated based on appropriate occupancy rates recognized as stable
over the medium- to long-term

646,701,526
3.7％
17,400,000,000

Discount Rate

3.5％

Terminal Capitalization Rate

3.9％

Cost Approach Price
Ratio of Land
Ratio of Building

None

Calculated with a comprehensive consideration of the Property’s
characteristics with reference to the yields on investments in similar
properties and other factors
Calculated based on a comprehensive consideration of such factors
as the yields on investment in similar properties, future trends ofinvestment yields, risks of the property as an investment, general
forecasts of future economic growth rate, and the trends of realestate prices and rents

25,300,000,000
81.3％
18.7％

－ １０ －

Matters Noted in
Reconciliation of Indicated
Value and Determination of
Appraisal Value

We determined that the Property is located in the same supply and demand zone as the commercial area
and the residential and mixed (residential and commercial) areas in Harumi, Tsukishima, and Kachidoki
districts in Chuo Ward and the surrounding area. Considering the property’s competitiveness in the rental
housing market and the real estate market, we determined that the best use would keeping the property
as a building with offices. While demanders in the real estate market, in which the property is involved,
are assumed to be mainly investors, the demanders show a strong tendency to make transactions with afocus on the property’s profitability and investment profitability. Therefore, we decided that thecapitalization approach price would relatively be more convincing than the cumulative price in theTransaction.

－ １１ －

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Transaction

Exhibit 2

Photo and Map of the Asset to Be Acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ １２ －

Exhibit 1
Overview of the Portfolio after the Transaction(¥ million)
Area
SectorGreater Tokyo Area

Others(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

Acquisition Price(%)(by Sector)(Note 2)

Office379,175

65,100444,275

40.3

Retail111,768

67,890179,659

16.3

Logistics

237,992

3,460

241,452

21.9

Residential(including healthcare
facilities)

189,833

27,934

217,767

19.8

Hotels2,360

11,611

13,971

1.3

Others

4,900

―

4,900

0.4

(Anticipated) Total
Acquisition Price(by Area)

926,029

175,996

1,102,025

100.0

16.0

100.0

Investment Ratio (%)(Note 2)84.0

(Note 1) “Greater Tokyo Area” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other Areas” refers
to cabinet-order designated cities, prefectural capitals, and cities having a population of at least 100,000 and their peripheral areas,
excluding those in Greater Tokyo Area.
(Note 2) “Investment Ratio” indicates the ratio of the (anticipated) total acquisition price of properties for each use or in each area to the(anticipated) total acquisition price of the entire portfolio. As the figures are rounded to the first decimal place, they may not add up to
exactly 100%.

Exhibit 2
Photo and Map of the Asset to be Acquired
Landport Tama