[For Translation Purposes Only]
January 15, 2019
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 Property Disposition
Nomura Real Estate Master Fund, Inc. (“NMF” or the “Fund”) announced the decision made today by Nomura
Real Estate Asset Management Co., Ltd. (the “Asset Management Company”), a licensed investment trust managementcompany retained by the Fund to provide asset management services, to dispose of assets (the “Disposition”) as
described below.

1. Summary of Assets to Be Disposed Of
Property Name

Use

(Scheduled)
Date ofAgreement(Scheduled)
Date of
Disposition

Transferee

PRIME URBAN Esaka III

Reside-ntial January 23,
2019

February 8,
2019

PRIME URBAN
Tamatsukuri
PRIME URBAN Chikusa
Total

Book Value(¥ million)(Note 2)Difference(¥ million)

729

612

116

910

743

166

1,334

1,095

238

1,206

955

250

1,168

1,167

0

5,347

4,574

772 (Note 4)(Note 1)PRIME URBAN Esaka I
PRIME URBAN Esaka II(Scheduled)TransferPrice(¥ million)

Undisclo-sed(Note 3)(Note 1) The amounts stated exclude adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes andlocal consumption tax, etc.
(Note 2) Anticipated book value at the date of disposition.
(Note 3) Undisclosed, since a consent has not obtained from the transferee.
(Note 4) 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 5) The above assets to be disposed of are actual real estates.

The above five properties are collectively referred to hereinafter as the “Properties to Be Sold.”.

-1-2. Reasons for Disposition of the Properties
For the purpose of improving the quality of NMF’s portfolio, NMF has continuously implemented
Strategic Property Replacement (“SPR”). Along with the acquisition of a residential property, Serenite
Shinsaibashi Grande, with the acquisition price of ¥5,567 million on December 19, 2018, NMF has decided todispose of the above listed assets by giving comprehensive consideration to such factor as the current
composition of its asset portfolio and the demand-supply conditions associated with condominium properties
in mainly Osaka metropolitan area as part of SPR.
3. Summary of the Properties to Be Sold
(1) PRIME URBAN Esaka I
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Units
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company
Master Leasing Company（Note 2）Type of Master Leasing（Note 2）

Seismic Risk (PML)(Note 3)Notes
Acquision Price
Scheduled Transfer PriceBook Value（Note 4）
Difference between ScheduledTransfer Price andBook Value

PRIME URBAN Esaka I
Real Estate
3-26-7 Tarumi-cho, Suita City, Osaka
3-26-27 Tarumi-cho, Suita City, Osaka
9-minutes walk from Esaka Station on Osaka Metro Midosuji Line
9-minutes walk from Esaka Station on Kita-Osaka Kyuko LineJanuary 31, 2007
Apartment
RC, 9F
48 units
417.94 ㎡
1,432.75 ㎡
Ownership
Ownership
80％
300％
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
Pass through6.04％(Based on a September 2018 Earthquake PML Appraisal Report by SOMPO RISKMANAGEMENT and HEALTH CARE Inc. ( current SOMPO RISKMANAGEMENT Inc.))None¥652 million¥729 million¥612 million¥116 million¥641 million（Based on the capitalization approach as of August 31, 2018）（Appraiser: Daiwa Real Estate Appraisal Co., Ltd.）
Appraisal NOI（Note 5）¥31 million
Leasing Status (As of January 15, 2019) （Note 6）
Total Number of Tenants
1
Total Rental Income¥34 million(Annual)Appraisal Value and Method

Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor Space
Occupancy Rates in the Past

¥2 million
87.4%
1,039.76 ㎡
1,189.12 ㎡
August,2014

August,2015-2-

August,2016

August,2017

August,2018

85.6％
97.9％
91.8％
93.8％
95.9％
(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) Master Lease Agreement
The master lease agreement is a pass-through scheme, in which HASEKO LIVENET, Inc., the master lease company, pays
to the Fund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
(Note 3) PML (Probable Maximum Loss)
It shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to the replacementcost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211% annual chance (10%probability of once every 50 years, i.e., average life time of buildings) of major earthquake occurring.
(Note 4) Book Value
It indicates the anticipated book value at the date of disposition.
(Note 5) Appraisal NOI
It indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal report with August
31, 2018 as the appraisal date.
(Note 6) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end
tenants.“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area managementfee” under the lease agreements with the end tenants to whom the Property is actually leased as of today multiplied by 12(truncated at the nearest million yen). The figure does not include any other incidental rent that may be agreed upon inconnection with said lease agreements, 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(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of the date of this publication.
“Total Leasable Floor Space” indicates the total of leasable floor space and includes common space subject to leasing, if any.
In addition, “Total Leasable Floor Space” is not based on the information in the real estate registry, but is calculated using
floor space presented in the lease contract, plans of the completed building and other documents. Accordingly, the figure
may not necessarily match up with Floor Area based on the information in the real estate registry and, in some cases, may bein excess of the figure presented as Floor Area.

(2) PRIME URBAN Esaka II
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Units
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company
Master Leasing Company（Note 4）

Type of Master Leasing（Note 4）

Seismic Risk (PML)(Note 5)

Notes
Acquision Price
Scheduled Transfer Price

PRIME URBAN Esaka II
Real Estate
3-31-5 Tarumi-cho, Suita City, Osaka
3-31-31 Tarumi-cho, Suita City, Osaka
8-minutes walk from Esaka Station on Osaka Metro Midosuji Line
8-minutes walk from Esaka Station on Kita-Osaka Kyuko Line
February 15, 2007
Apartment
RC, 11F
57 units
441.77 ㎡
1,589.90 ㎡
Ownership
Ownership
100％（Note 2）
360％（Note 3）
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
Pass through
5.95％(Based on a September 2018 Earthquake PML Appraisal Report by SOMPO RISKMANAGEMENT and HEALTH CARE Inc. (current SOMPO RISKMANAGEMENT Inc. ))None¥794 million¥910 million-3-

Book Value（Note 6）
Difference between ScheduledTransfer Price andBook Value¥743 million¥166 million¥828 million（Based on the capitalization approach as of August 31, 2018）（Appraiser: Daiwa Real Estate Appraisal Co., Ltd.）
Appraisal NOI（Note 7）¥40 million
Leasing Status (As of January 15, 2019) （Note 8）
Total Number of Tenants
1
Total Rental Income¥49 million(Annual)Appraisal Value and Method

Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor Space
Occupancy Rates in the Past

¥4 million
98.3%
1,368.00 ㎡
1,392.00 ㎡
August,2014
94.8％

August,2015
96.6％

August,2016
100.0％

August,2017
98.3％

August,2018
98.3％(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) Building Coverage Ratio
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) Floor Area Ratio
The Property’s Floor Area Ratio limit was originally set at 400%, but the frontal road regulation (6.00 meters×60%) isprioritized.
(Note 4) Master Lease Agreement
The master lease agreement is a pass-through scheme, in which HASEKO LIVENET, Inc., the master lease company, pays
to the Fund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
(Note 5) PML (Probable Maximum Loss)
It shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to the replacementcost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211% annual chance (10%probability of once every 50 years, i.e., average life time of buildings) of major earthquake occurring.
(Note 6) Book Value
It indicates the anticipated book value at the date of disposition.
(Note 7) Appraisal NOI
It indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal report with August
31, 2018 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Property is actually leased as of today multiplied by 12 (truncatedat the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection
with said lease agreements, 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(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of the date of this publication.
“Total Leasable Floor Space” indicates the total of leasable floor space and includes common space subject to leasing, ifany. In addition, “Total Leasable Floor Space” is not based on the information in the real estate registry, but is calculatedusing floor space presented in the lease contract, plans of the completed building and other documents. Accordingly, thefigure may not necessarily match up with Floor Area based on the information in the real estate registry and, in some cases,
may be in excess of the figure presented as Floor Area.

(3) PRIME URBAN Esaka III
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)

PRIME URBAN Esaka III
Real Estate
10-21 Hiroshiba-cho, Suita City, Osaka
10-19 Hiroshiba-cho, Suita City, Osaka
3-minutes walk from Esaka Station on Osaka Metro Midosuji Line
3-minutes walk from Esaka Station on Kita-Osaka Kyuko Line
August 5, 2008

-4-

Use (Note 1)
Structure (Note 1)
Leasable Units
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company
Master Leasing Company（Note 3）

Type of Master Leasing（Note 3）

Seismic Risk (PML)(Note 4)

Notes

Apartment, store
RC, B1F/15F
79 units
384.47 ㎡
2,956.41 ㎡
Ownership
Ownership
100％（Note 2）
600％
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
Pass through
7.51％(Based on a September 2018 Earthquake PML Appraisal Report by SOMPO RISKMANAGEMENT and HEALTH CARE Inc. (current SOMPO RISKMANAGEMENT Inc. ))None

Acquision Price¥1,190 million

Scheduled Transfer PriceBook Value（Note 5）
Difference between ScheduledTransfer Price andBook Value¥1,334 million¥1,095 million¥238 million¥1,150 million（Based on the capitalization approach as of August 31, 2018）（Appraiser: Japan Valuers Co., Ltd.）
Appraisal NOI（Note 6）¥59 million
Leasing Status (As of January 15, 2019) （Note 7）
Total Number of Tenants
1
Total Rental Income¥68 million(Annual)Appraisal Value and Method

Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor Space¥6 million
94.1%
2,024.04 ㎡
2,151.67 ㎡

Occupancy Rates in the Past

August,2014
93.0％

August,2015
89.0％

August,2016
96.4％

August,2017
94.2％

August,2018
98.8％(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) Building Coverage Ratio
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) Master Lease Agreement
The master lease agreement is a pass-through scheme, in which HASEKO LIVENET, Inc., the master lease company, pays
to the Fund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
(Note 4) PML (Probable Maximum Loss)
It shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to the replacementcost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211% annual chance (10%probability of once every 50 years, i.e., average life time of buildings) of major earthquake occurring.
(Note 5) Book Value
It indicates the anticipated book value at the date of disposition.
(Note 6) Appraisal NOI
It indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal report with August
31, 2018 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, and-5-then the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Property is actually leased as of today multiplied by 12 (truncatedat the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection
with said lease agreements, 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(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of the date of this publication.
“Total Leasable Floor Space” indicates the total of leasable floor space and includes common space subject to leasing, if any.
In addition, “Total Leasable Floor Space” is not based on the information in the real estate registry, but is calculated using
floor space presented in the lease contract, plans of the completed building and other documents. Accordingly, the figure
may not necessarily match up with Floor Area based on the information in the real estate registry and, in some cases, may bein excess of the figure presented as Floor Area.

(4) PRIME URBAN Tamatsukuri
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Units
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company
Master Leasing Company（Note 4）

Type of Master Leasing（Note 4）

Seismic Risk (PML)(Note 5)

Notes
Acquision Price
Scheduled Transfer PriceBook Value（Note 6）
Difference between ScheduledTransfer Price andBook Value

PRIME URBAN Tamatsukuri
Real Estate
2-16-16 Tamatsukuri, Chuo-ku, Osaka City, Osaka
2-16-11 Tamatsukuri, Chuo-ku, Osaka City, Osaka
1 minutes walk from Tamatsukuri Station on Osaka Metro Nagahori Tsurumi-RyokuchiLine
6 minutes walk from Tamatsukuri Station on JR Osaka Loop Line
February 20, 2009
Apartment
RC, 14F
80 units
436.60 ㎡
2,618.13 ㎡
Ownership
Ownership
100％（Note 2）
300%, 600％（Note 3）
None
HASEKO LIVENET, Inc.
HASEKO LIVENET, Inc.
Pass through11.40％(Based on a September 2018 Earthquake PML Appraisal Report by SOMPO RISKMANAGEMENT and HEALTH CARE Inc. (current SOMPO RISKMANAGEMENT Inc. ))None¥1,020 million¥1,206 million¥955 million¥250 million¥1,050 million（Based on the capitalization approach as of August 31, 2018）（Appraiser: Japan Valuers Co., Ltd.）
Appraisal NOI（Note 7）¥53 million
Leasing Status (As of January 15, 2019) （Note 8）
Total Number of Tenants
1
Total Rental Income¥68 million(Annual)Appraisal Value and Method

Security Deposits
Occupancy Rate
Total Leased Floor Space¥2 million
96.1%
2,279.91 ㎡-6-

Total Leasable Floor Space
Occupancy Rates in the Past

2,373.10 ㎡
August,2014
95.2％

August,2015
92.9％

August,2016
91.2％

August,2017
98.9％

August,2018
92.9％(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) Building Coverage Ratio
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) Floor Area Ratio
The property’s land is a Commercial district of 600% and a Category 2 residential district of 300%, and the weighted average
figures are applied according to the area ratio(Note 4) Master Lease Agreement
The master lease agreement is a pass-through scheme, in which HASEKO LIVENET, Inc., the master lease company, pays
to the Fund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
(Note 5) PML (Probable Maximum Loss)
It shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to the replacementcost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211% annual chance (10%probability of once every 50 years, i.e., average life time of buildings) of major earthquake occurring.
(Note 6) Book Value
It indicates the anticipated book value at the date of disposition.
(Note 7) Appraisal NOI
It indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal report with August
31, 2018 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Property is actually leased as of today multiplied by 12 (truncatedat the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection
with said lease agreements, 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(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of the date of this publication.
“Total Leasable Floor Space” indicates the total of leasable floor space and includes common space subject to leasing, if any.
In addition, “Total Leasable Floor Space” is not based on the information in the real estate registry, but is calculated using
floor space presented in the lease contract, plans of the completed building and other documents. Accordingly, the figure
may not necessarily match up with Floor Area based on the information in the real estate registry and, in some cases, may bein excess of the figure presented as Floor Area.

(5) PRIME URBAN Chikusa
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Units
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company

PRIME URBAN Chikusa
Real Estate
3-905, 906 Aoi, Higashi-ku, Nagoya City, Aichi
3-9-8 Aoi, Higashi-ku, Nagoya City, Aichi
1-minute walk from Kurumamichi Station on Nagoya Municipal Subway Sakura-doriLine
4-minute walk from Chikusa Station on Nagoya Municipal Subway Higashiyama Line
August 12, 2008
Apartment, store
RC, 13F
61 units
400.53 ㎡
2,393.47 ㎡
Ownership
Ownership
100％（Note 2）
600％
None
HASEKO LIVENET, Inc.

-7-

Master Leasing Company（Note 3）

Type of Master Leasing（Note 3）

Seismic Risk (PML)(Note 4)

Notes
Acquision Price
Scheduled Transfer PriceBook Value（Note 5）
Difference between ScheduledTransfer Price andBook ValueHASEKO LIVENET, Inc.
Pass through
6.66％(Based on a September 2018 Earthquake PML Appraisal Report by SOMPO RISKMANAGEMENT and HEALTH CARE Inc. (current SOMPO RISKMANAGEMENT Inc. ))None¥1,110 million¥1,168 million¥1,167 million¥0 million¥1,120 million（Based on the capitalization approach as of August 31, 2018）（Appraiser: Japan Valuers Co., Ltd.）
Appraisal NOI（Note 6）¥55 million
Leasing Status (As of January 15, 2019) （Note 7）
Total Number of Tenants
1
Total Rental Income¥65 million(Annual)Appraisal Value and Method

Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor Space
Occupancy Rates in the Past
（Note 8）

¥6 million
90.3%
2,065.94 ㎡
2,287.04 ㎡
August,2014-

August,2015-

August,2016
79.4％

August,2017
93.6％

August,2018
92.2％(Note 1) Location and other Items
Location (registry), Completion Date, Use, Structure, and Area are based on the information in the real estate registry.
(Note 2) Building Coverage Ratio
As the property is located within a commercial district, the Building Coverage is originally supposed to be 80%; however,the Building Coverage has been increased to 100%, as the property is in a fire prevention zone and certified fireproof.
(Note 3) Master Lease Agreement
The master lease agreement is a pass-through scheme, in which HASEKO LIVENET, Inc., the master lease company, pays
to the Fund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
(Note 4) PML (Probable Maximum Loss)
It shows the probable losses caused by a major earthquake, as a percentage of the expected recovery cost to the replacementcost. PML is calculated based on the statistical assumption that within next 475 years there is a 0.211% annual chance (10%probability of once every 50 years, i.e., average life time of buildings) of major earthquake occurring.
(Note 5) Book Value
It indicates the anticipated book value at the date of disposition.
(Note 6) Appraisal NOI
It indicates the annual NOI (operating income-operating expenses) described in the real estate appraisal report with August
31, 2018 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Property is actually leased as of today multiplied by 12 (truncatedat the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection
with said lease agreements, 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(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of the date of this publication.
“Total Leasable Floor Space” indicates the total of leasable floor space and includes common space subject to leasing, if any.
In addition, “Total Leasable Floor Space” is not based on the information in the real estate registry, but is calculated using
floor space presented in the lease contract, plans of the completed building and other documents. Accordingly, the figure
may not necessarily match up with Floor Area based on the information in the real estate registry and, in some cases, may
be in excess of the figure presented as Floor Area.
(Note 8) Historical Occupancy Rates
There are no applicable occupancy rates for August 31, 2015 and before as such information has not been provided from-8-the Seller.

4. Purchaser Profile
As the Fund has not obtained a consent from the Purchaser, who is a domestic unlisted real estate investment
trust, this details are not disclosed. As of today, neither the Fund nor the Asset Management Company has any
notable capital, personnel or transactional relationship with the Purchaser, and the Purchaser is not a related partyof either the Fund or the Asset Management Company.
5. Transaction with Related Parties
There is no special relation between the said company and the Fund or the Asset Management Company forthis transaction.
6. Broker Profile
Company Name
Head Office
Representative

HASEKO LIVENET Inc.
3-8-2 Shiba, Minato Ward, Tokyo
Shoji Nagatani, PresidentManagement of real estate leasing and rental operations and related consulting services
Sale, purchase, leasing and rental of real estate properties and the brokerage, agency andPrincipal Businessintermediary services associated with these transactions
Provision of real estate information
Capital¥1 billion (as of April 1, 2018)
Established
October 13, 1986
Relationships with the Fund and/or the Asset Management Company
There is no capital involvement between the said company and the Fund or the Asset
CapitalManagement Company. There is also no capital involvement between related parties of the said
company and related parties of the Fund or the Asset Management Company.
There is no personnel involvement between the said company and the Fund or the Asset
Personnel
Management Company. There is also no personnel involvement between related parties of thesaid company and related parties of the Fund or the Asset Management Company.
Said company falls under the property management company and the master leasing company
Transactionsof a number of properties held by the Fund. There is no notable transactional relationshipbetween said company and the Asset Management Company.
Said company is not a related party of the Fund or the Asset Management Company.
Related Party Status Furthermore, the related parties of said company are not related parties of the Fund or the AssetManagement Company.
The brokerage fee is not disclosed due to the fact that the broker’s consent to disclosure has
Brokerage Fee
not been obtained.

7. Form of Payment, etc.
On the scheduled date of disposition, the Fund plans to receive a package payment of the whole purchaseprice of the Properties to Be Sold. In addition, plans call for appropriating net proceeds from the disposition to therepayment of borrowings, the acquisition of properties and other purposes associated with portfolio management.

8. Schedule for the Disposition
January 23, 2019
February 8, 2019Conclusion of the purchase and sale agreement for sale of the Properties to Be
Sold
Disposition of PRIME URBAN Esaka, PRIME URBAN Esaka II, PRIME-9-URBAN Esaka III, PRIME URBAN Tamatsukuri and PRIME URBAN
Chikusa (delivery of real estate)
9. Forecast of Financial Results
NMF intends to classify expected proceeds from the disposition as retained earnings for the purposes of
ensuring stable asset management and maintaining a steady stream of distributions. In addition, the impact of thedisposition on the status of asset management throughout the fiscal period ending Feburary 28, 2019 (September 1,
2018 to February 28, 2019) is insignificant. Accordingly, NMF made no revision to its performance forecasts for thisperiod.

- 10 -

10. Appraisal Summary
Property Name

PRIME URBAN Esaka I

Appraisal Vale

¥641,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

August 31, 2018
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

641,000,000

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

649,000,000

43,817,156

to2,633,472
9,745,508

Utilities Costs

690,586

1,333,608

Repair Costs
2,148,921
Management

Fees
Advertisementfor

Leasing, etc.
Taxes

1,761,785

Calculated based on the expenses for advertisement
for leasing, etc. of similar properties.

2,523,889

Other Expenses

50,000(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow ApproachCalculated based on a judgement the current contract
amount is appropriate.
Calculated based on actual results in previous years.
Repair costs were calculated based on the engineering
report. Replacement costs for tenants in the residential
section were calculated considering the replacement
rate and vacancy rate.
Calculated based on a judgement the current contract
amount is appropriate.

64,860of Temporary Deposits, etc.

Calculated based on the expected medium- to longterm stable rent.
Calculated expected vacancy rate and vehicle vacancy
rate to be stable over the medium to long term basedon the standard vacancy rates of similar properties andconsidering the competitiveness, etc. of the Property

1,171,859

Insurance Premium(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Management

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of net
revenue over the medium to long term by thecapitalization rate.

41,183,684(2) Operating Expenses
Maintenance

Property

Grounds

Calculated expected taxes over the medium to longterm based on the tax base for 2018 tax-year, etc.
Calculated based on insurance quotes.
Calculated as supply expenses and others based on
actual results in previous years

31,438,176
29,363Calculated profit based on a yield on investment of
1.0%.

293,447

Calculated based on the building replacement cost andconsidering CM fees.

31,174,092
4.8%
638,000,000- 11 -

Calculated based on a comprehensive considerationof such factors as conditions of the location, thebuilding and the contract of the Property

Discount Rate
4.6%
Terminal Capitalization Rate
5.0%

Cost Approach Price
Ratio of Land

Calculated with both the method using comparisonsof transaction cases of similar properties and themethod in which the property’s individuality is taken
into consideration with the financial asset yields, andusing hearings with investors and such as reference.
Calculated using transaction yields in similartransaction cases as reference and comprehensively
considering such factors as, the probable future
movement of the yield on investment, risks of theProperty as an investment, general forecasts of theeconomic growth rate and price trends in real estate.

470,000,000
53.0%

Ratio of Building
Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

47.0%

Property Name

PRIME URBAN Esaka II

Appraisal Vale

¥828,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

August 31, 2018
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

828,000,000

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

836,000,000

55,618,919

to3,332,110
11,806,866

Utilities Costs

606,355

1,447,200

Repair Costs
2,841,911
Management

Fees
Advertisement
Leasing, etc.
Taxes

for

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of net
revenue over the medium to long term by thecapitalization rate.

52,286,809(2) Operating Expenses
Maintenance

Property

Grounds

Calculated based on the expected medium- to longterm stable rent.
Calculated expected vacancy rate and vehicle vacancy
rate to be stable over the medium to long term basedon the standard vacancy rates of similar properties andconsidering the competitiveness, etc. of the Property
Calculated based on a judgement the current contract
amount is appropriate.
Calculated based on actual results in previous years
Repair costs were calculated based on the engineering
report. Replacement costs for tenants in the residential
section were calculated considering the replacement
rate and vacancy rate.

1,483,742

Calculated based on a judgement the current contract
amount is appropriate.

2,288,253

Calculated based on the expenses for advertisement
for leasing, etc. of similar properties.

3,017,305

Calculated expected taxes over the medium to longterm based on the tax base for 2018 tax-year, etc.

- 12 -

Insurance Premium

72,100

Other Expenses

50,000(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate

40,479,943
38,138Calculated profit based on a yield on investment of
1.0%.

386,322

Calculated based on the building replacement cost andconsidering CM fees.

40,131,759
4.8％

Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

Calculated based on a comprehensive considerationof such factors as conditions of the location, thebuilding and the contract of the Property

824,000,000

4.6％
Terminal Capitalization Rate
5.0％

Cost Approach Price
Ratio of Land

Calculated based on insurance quotes.
Calculated as supply expenses and others based on
actual results in previous years

Calculated with both the method using comparisonsof transaction cases of similar properties and themethod in which the property’s individuality is taken
into consideration with the financial asset yields, andusing hearings with investors and such as reference.
Calculated using transaction yields in similartransaction cases as reference and comprehensively
considering such factors as, the probable future
movement of the yield on investment, risks of theProperty as an investment, general forecasts of theeconomic growth rate and price trends in real estate.

519,000,000
52.9％

Ratio of Building
Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

47.1％

Property Name

PRIME URBAN Esaka III

Appraisal Vale

¥1,150,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

August 31, 2018
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

1,150,000,000

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

to1,160,000,000

Grounds
Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of net
revenue over the medium to long term by thecapitalization rate.

79,350,600
83,731,737
4,381,137- 13 -

Calculated considering current rent and market rent
levels.
Calculated considering current vacancy rate andmarket vacancy levels

(2) Operating Expenses
Maintenance

20,293,738

Utilities Costs

1,354,000

2,480,004

Repair Costs
Property

3,619,909

Management

Fees
Advertisementfor

Leasing, etc.

2,237,990
4,666,240

Taxes

5,286,032

Insurance Premium

131,720

Other Expenses

517,843(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate
Terminal Capitalization Rate
Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

Calculated based on the contract and general level ofmaintenance cost.
Calculated based on actual results in previous years
and general level of utilities cost
Assumed with reference to the Building Condition
Evaluation Report provided by Tokyo Bldg-TechCenter Co., Ltd.
Calculated based on the property management
contract and general level of property management
fees.
Calculated based on actual results in previous years
and general level of advertisement fee for leasing,etc.
Calculated based on the actual result of 2018 tax-year
and general level of taxes.
Calculated based on the actual result of fiscal 2018
and general level of insurance premium.
Calculated based on actual results in previous years
and general level of other expenses.

59,056,862
68,176

Calculated profit based on a yield on investment of
1.0%.

3,638,333

Assumed with reference to the Building Condition
Evaluation Report provided by Tokyo Bldg-TechCenter Co., Ltd.

55,486,705
4.8％

Calculated considering the conditions of the locationand the characteristics of the Property with reference
to the yield on investment of similar buildings.

1,130,000,000
4.6％
5.0％

Calculated considering the conditions of the locationand the characteristics of the Property with reference
to the yield on investment of similar buildings.
Calculated considering the future trend of investment
yield, etc. in addition to Capitalization Ratementioned above.

700,000,000
55.4％
44.6％

Property Name

PRIME URBAN Tamatsukuri

Appraisal Vale

¥1,050,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

August 31, 2018
(Yen)

- 14 -

Amount orPercentage

Item
Capitalization Approach Price

1,050,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenanceto71,260,147
75,036,628
3,776,481
2,304,000
1,020,000

Repair Costs

2,261,595

Management

Fees
Advertisementfor

Leasing, etc.

1,759,663
4,368,230

Taxes

4,715,329

Insurance Premium

107,280

Other Expenses

849,509(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate
Terminal Capitalization Rate
Cost Approach Price
Ratio of Land
Ratio of Building

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of net
revenue over the medium to long term by thecapitalization rate.
Calculated considering current rent and market rent
levels.
Calculated considering current vacancy rate andmarket vacancy levels

17,385,606

Utilities Costs

Property

1,060,000,000

Grounds

Calculated based on the contract and general level ofmaintenance cost.
Calculated based on actual results in previous years
and general level of utilities cost
Assumed with reference to the Building Condition
Evaluation Report provided by Tokyo Bldg-TechCenter Co., Ltd.
Calculated based on the property management
contract and general level of property management
fees.
Calculated based on actual results in previous years
and general level of advertisement fee for leasing,etc.
Calculated based on the actual result of 2018 tax-year
and general level of taxes.
Calculated based on the actual result of 2018 tax-year
and general level of insurance premium.
Calculated based on actual results in previous years
and general level of other expenses.

53,874,541
29,255

Calculated profit based on a yield on investment of
1.0%.

3,099,167

Assumed with reference to the Building Condition
Evaluation Report provided by Tokyo Bldg-TechCenter Co., Ltd.

50,804,629
4.8％Calculated considering the conditions of the locationand the characteristics of the Property with reference
to the yield on investment of similar buildings.

1,040,000,000
4.6％
5.0％
673,000,000
59.1％
40.9％

- 15 -

Calculated considering the conditions of the locationand the characteristics of the Property with reference
to the yield on investment of similar buildings.
Calculated considering the future trend of investment
yield, etc. in addition to Capitalization Ratementioned above.

Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value-

Property Name

PRIME URBAN Chikusa

Appraisal Vale

¥1,120,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

August 31, 2018
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

1,120,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenanceto72,308,517
81,434,649
9,126,132
1,764,000
723,000

Repair Costs

1,841,909

Management

Fees
Advertisementfor

Leasing, etc.
Taxes

1,765,494
2,525,141
4,574,025

Insurance Premium

98,093

Other Expenses

3,166,600(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of net
revenue over the medium to long term by thecapitalization rate.
Calculated considering current rent and market rent
levels.
Calculated considering current vacancy rate andmarket vacancy levels

16,458,262

Utilities Costs

Property

1,130,000,000

Grounds

Calculated based on the contract and general level ofmaintenance cost.
Calculated based on actual results in previous years
and general level of utilities cost
Assumed with reference to the Building Condition
Evaluation Report provided by Tokyo Marine &Nichido Consulting Co., Ltd.
Calculated based on the property management
contract and general level of property management
fees.
Calculated based on actual results in previous years
and general level of advertisement fee for leasing,etc.
Calculated based on the actual result of 2018 tax-year
and general level of taxes.
Calculated based on the actual result of 2018 tax-year
and general level of insurance premium.
Calculated based on actual results in previous years
and general level of other expenses.

55,850,255
66,265

Calculated profit based on a yield on investment of
1.0%.

1,855,875

Assumed with reference to the Building Condition
Evaluation Report provided by Tokyo Marine &Nichido Consulting Co., Ltd.

54,060,645
4.8％- 16 -

Calculated considering the conditions of the locationand the characteristics of the Property with reference
to the yield on investment of similar buildings.

Price Calculated by the Discounted
Cash Flow Approach
Discount Rate
Terminal Capitalization Rate
Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

1,100,000,000
4.6％
5.0％
597,000,000
67.8％
32.2％

- 17 -

Calculated considering the conditions of the locationand the characteristics of the Property with reference
to the yield on investment of similar buildings.
Calculated considering the future trend of investment
yield, etc. in addition to Capitalization Ratementioned above.

Exhibits
Exhibit: Overview of the Portfolio after the Disposition*<Nomura Real Estate Master Fund, Inc.> URL: https://www.nre-mf.co.jp/en/- 18 -

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

Greater Tokyo
Area (Note 1)

SectorTotal Acquisition

Other Areas

Price

Percentage of Total(Note 2)(by Sector)

Office362,620

71,930434,550

45.2

Retail100,427

62,916

163,343

17.0

Logistics

157,5903,460

161,050

16.8

Residential

159,574

33,328

192,902

20.1

Hotels

0

3,600

3,600

0.4

Others

4,900

0

4,900

0.5

Total Acquisition Price(by Area)

785,111

175,234

960,345

100.0

Percentage of Total (Note 2)

81.8

18.2

100.0

(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 Greater Tokyo.
(Note 2) “Percentage of Total” indicates the ratio of the total acquisition price of properties for each use and in each area to thetotal acquisition price of the entire portfolio. As the figures are rounded to the first decimal place, they may not add up to
exactly 100%.

- 19 -