[For Translation Purposes Only]
June 1, 2018

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.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Ken Okada
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Change of Hotel Operator andName Change of Property under Management
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or “NMF” or the “Fund”) announced today thatit has changed hotel operator and name of the property under management (the “Property”)(the “Rebranding”) regarding
Watermark Hotel Sapporo announced in the press release “Notice Concerning Property Acquisition and Commencementof Asset Management in New Sector” dated December 19, 2017, as described below.

1. Overview of change
Before Change

After Change

Date of Change

June 1, 2018

Property Name

Watermark Hotel Sapporo

Hotel Vista Sapporo Odori

Hotel Operator

Watermark Hotel Japan Co., Ltd.

Vista Hotel Management Co., Ltd.

2. Purposes for change of the hotel operator and the rebranding
Vista Hotel Management Co., Ltd. currently operates 11 hotels across Japan under the Vista brand and possesses awealth of expertise in hotel operations. Particularly in the Sapporo area, the company boasts thorough knowledge of thehotel market through the operation of its HOTEL VISTA SAPPORO NAKAJIMA KOHEN, and the Fund expects operational
synergies from sales, employee rotation and other cost-saving measures to be conducted jointly with said hotel.
The Fund believes that Vista Hotel Management’s abundant management expertise and brand will enable it to makemaximum use of the unique characteristics of the Property that set it apart in Sapporo, where demand from both
domestic and international tourists is expected to grow. These include its location, on Tanukikoji Shopping Arcade andthe sense of top-class elegance and functionality that it gains from the separate installation of baths, toilets and vanities
in guest rooms. Thus, the Fund expects that these changes will help it capture upside and potential in terms of revenue
by increasing the GOP(Note1)-linked portion of the Property’s rent(Note2).
Furthermore, leveraging the Property’s excellent location on Tanukikoji Shopping Arcade, the Fund has attracted anew tenant for the restaurant space on the Property’s first floor (restaurant name: Wa Oyobare). Featuring the liberal useof ingredients produced in Hokkaido, the restaurant will offer superior quality dining helping to further improve thehotel’s level of service and maximize revenue.
(Note 1 ) GOP is the sum of revenues from hotel operations (revenues from guest room operation and other departments) less cost items,
which consist of the cost of sales (accommodation and other costs), personnel expenses (associated with guest room staff andpart-time employees), operational expenses (operational fees and commissions, outsourcing expenses associated with facility
cleaning and other tasks, and the cost of linens and expendables used by guests) and other expenses (expenses associated withadvertising and utilities in addition to facility management, repair and maintenance expenses borne by the tenant).
(Note 2) The lease terms and conditions between Vista Hotel Management Co., Ltd. and the Fund has remained the same since theacquisition of the Property. Regarding the lease terms and conditions, please refer to the press release “Notice Concerning
Property Acquisition and Commencement of Asset Management in New Sector “dated December 19, 2017.

－ 1 －3.Forecasts of financial results
There is no revision to Nomura Master Fund’s forecasts of financial results for the fiscal period ending August 31,
2018 (March 1, 2018 to August 31, 2018) and February 28, 2019 (September 1, 2018 to February 28, 2019) by the changeof hotel operator and property name as it has only small impact to the forecast of financial results.
【Exhibits】
Exhibit : Images and Photos of the Property after Rebranding*<Nomura Real Estate Master Fund, Inc.> URL: https://www.nre-mf.co.jp/en/－ 2 －Images and Photos of the Property after Rebranding

Hotel Entrance

Wa Oyobare - Japanese cuisine restaurant facing Tanukikoji Shopping Arcade－ 3 －Breakfast (example) at Wa OyobareExhibit