[For Translation Purposes Only]

April 23, 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 Property in Japan
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 a property (the “Acquisition”), as described below.

1.

Summary of Asset to Be Acquired

Property Name
Kojimachi Millennium
Garden(additional acquisition)

Use

Residential(Note2)

Scheduled Dateof Purchase andSales Agreement

Scheduled Dateof Acquisition

April 26, 2024

April 26, 2024

SellerPresence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note 1)

Individual

Yes(Note3)(Note4)260(Note1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note2) The use of the portion of the property to be acquired at this time is residential, but the property as a whole is used for both offices and residences.
(Note3) Please refer to “4. Profile of Seller of the Asset to be Acquired” below.
(Note4) The brokerage involved in the acquisition is not considered a related party under the Investment Trust Act.

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

Reasons for the Acquisition
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 ofIncorporation.
Kojimachi Millenium Garden is a flagship property and has the third largest scale in the NMF portfolio (on an acquisition
price basis), and with the additional acquisition of a residential portion of the property, NMF’s sectional ownership interest
will increase from 59.25% at present to 59.83% (voting rights percentage basis).

－ １ －

3.

Summary of Asset to Be Acquired
Kojimachi Millennium Garden＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・The Asset boasts excellent transportation convenience to Tokyo’s terminal stations and major downtown businessand commercial districts, as it is located within a four-minute walk from Kojimachi Station on the Tokyo Metro
Yurakucho Line and a six-minute walk from Yotsuya Station on the JR Chuo Line and Sobu Line and the Tokyo
Metro Marunouchi Line and Namboku Line.
・The Asset is located in Tokyo’s Bancho area, which is known as one of Japan’s leading luxury residential districts
and boasts long-standing popularity, particularly among high-income earners. The residences subject to theadditional acquisition at this time are two- and three-bedroom units suitable for families and are located on an upper
floor, and as a result, stable operation can be expected over the medium to long term.

＜Summary of the Asset to be Acquired＞
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasing Units
Architect
Builder
Building Inspection Agency
Land
(Note
1)
Area
Building
Land

Type ofOwnership

Building

Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note 6)Master Leasing Company(Note 7)

Type of Master Leasing(Note 7)

Seismic Risk (PML)(Note 8)

Notes

Kojimachi Millennium Garden
Real estate
7-21 (and 17 other parcel of land) Nibancho, Chiyoda Ward, Tokyo
7-21 Nibancho, Chiyoda Ward, Tokyo (Note 2)
4-minute walk from Kojimachi Station on the Tokyo Metro Yurakucho Line
6-minute walk from Yotsuya Station on the JR Chuo Line, Sobu Line, theTokyo Metro Marunouchi Line and Namboku LineMay 29, 2000
Office, Apartment
Twenty one-floor steel, reinforced concrete and steel reinforced concrete
structure with flat roof and 4 basement floor
2
KAJIMA CORPORATION
KAJIMA CORPORATION and five other companies
Tokyo Metropolitan(a)202.80 m2、(b)95.83 m2、(c)6,067.17 m2(Note 3)
Area of the entire building 55,353.00 m2
Exclusively owned area held by the Fund 179.11 m2
Co-ownership (Note 3)
Compartmentalized ownership (Residence section) (Acquisition : part of
15F)
79.32%(Note 4)
761.45%(Note 5)
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through
4.6% (Based on the Earthquake PML Appraisal Report as of March 2024 by
Sompo Risk Management Inc.)
・ Nomura Real Estate Partners Co., Ltd., the property managementcompany, is considered a related party under the Investment Trust Act.
・The management rules of the Property include regulations on transfer
such as confirming other compartmental owners’ wish for acquisition incase one of compartmental owners intends to transfer part of/wholeexclusive ownership interest that the owner owns.
－ ２ －Anticipated Acquisition Price¥260 million¥264 million (Based on the capitalization approach as of April 1, 2024)
Appraisal Value and Method(Appraiser: Japan Real Estate Institute)
Appraisal NOI (Note 9)¥9 million
Leasing Status (as of Scheduled Date of Acquisition) (Note 10)
Total Number of Tenants
1 (Leasing Units 1)
Total Rental Income (Annual)
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
48.3%
Total Leased Floor Space
90.24 m2
Total Leasable Floor Space186.99 m2
March
March
March
March
March
Historical Occupancy Rates
2020
2021
2022
2023
2024
(Note 11)100.0%
100.0%
100.0%
100.0%
100.0%(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) Land Area and Type of Ownership(a) is the land area which is co-owned with other compartmental owners of the Property building (The Fund’s co-ownership ratio to beacquired is 17911-64621th), (b) is the land area of part of/all other compartmental owners of the Property building (The Fund’s coownership ratio to be acquired is one-36th), (c) is the land area which is already owned by the Fund and owned by other compartmental
owners of the Property building (Not subject to the Fund’s acquisition). The total land area of the building is 6,269.97m2 which is the totalof (a) and (c) (This includes the area of 31.61m2 which is considered as road as stipulated in Paragraph 2 of Article 42 of the BuildingStandard Law). (b) is a private road (which is considered as road as stipulated in Paragraph 2 of Article 42 of the Building Standard Law)
not included in the total land area. Out of there, the Fund will acquire (a) and (b) only. Although the building of the Property meetsrequirement of the law concerning the compartmentalized ownership, etc. The right of site registry is not completed.
(Note 4) Building Coverage Ratio
The building coverage ratio of the portion of the Asset located within 30 m from the boundary with the fronting road on the south side
(Shinjuku-dori Street) and the commercial portion located more than 30 m from the boundary is 80% and the ratio for the portion locatedin a Category 2 residential district is 60%. However, since the Asset is a certified fireproof building in a fire prevention zone, the applicableratios have been increased to 100% and 70%, respectively. The weighted average calculated based on the ratios of the areas has been usedas the applicable building coverage ratio.
(Note 5) Floor Area Ratio
The floor area ratios of the portion of the Asset located within 30 m from the boundary with the fronting road on the south side (Shinjukudori Street) is 800% and for the commercial portion located more than 30 m from the boundary is 400%. The applicable ratio has been
increased to 761.45% pursuant to Article 59-2 of the Building Standards Act from the weighted average calculated based on the ratios of
the areas.
(Note 6) Property Management Company
Property Management Company refers to the one that is scheduled to be appointed after acquisition.
(Note 7) Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. Note that the “pass-through type” is a scheme where amaster lease company pays the same amounts as the rents stipulated in lease agreements with end-tenants.
(Note 8) PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50 years with 10%
probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building) as a ratio (percentage) of the
expected recovery cost to the replacement cost.
(Note 9) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with April 1, 2024
as the appraisal date.
(Note 10) Leasing Status
The “total number of tenants” is stated as “1” since all of the rental units are to be leased as a block for the purpose of subleasing
pursuant to a lease agreement that is scheduled to take effect on the scheduled acquisition date of the additional portion of the Asset andthe lessee under the lease agreement (the master lease agreement) plans to sublease the rental units to end tenants. It should be noted that
as of the date of this release, the seller occupies one of the two rental units and plans to vacate on the scheduled acquisition date.
“Total rental income” and “security deposits” are not disclosed as the seller currently occupies one of the two rental units and consent has－ ３ －not been obtained from the tenant of the other rental unit.
“Total leased floor space” is the contracted floor space stated in the lease contract that is scheduled to take effect on the scheduledacquisition date (after the seller vacates the self-use section) for the additionally acquired portion of the asset.
(Note 11) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller except for seller occupied section.

4.

Profile of Seller of the Asset to be Acquired
As the consent from the seller of Kojimachi Millennium Garden, who is an individual, has not been obtained fordisclosure, this information is not disclosed. Neither the Fund nor the Asset Management Company has any notable capital,
personnel or transactional relationship with the seller and those including the close family members of the seller,
corporations and their subsidiaries whose the majority shares are held by the seller or the close family members.

5.

Status of Owner of the Asset to be Acquired
The Asset to be Acquired is not acquired from parties who have special interests in the Fund or the Asset Management
Company.

6.

Transactions with Related Parties
The property management company and master leasing company of Kojimachi Millennium Garden, Nomura Real Estate
Partners Co., Ltd., is considered a related party under the Investment Trust Act as stated above. Accordingly, the fees andother terms of the consignment of property management, as well as the lease period, rental rate, and other leasing terms,
related to Kojimachi Millennium Garden have been duly examined and authorized by the Asset Management Company’s
compliance committee and investment committee pursuant to relevant internal rules and guidelines.

7.

Form of Payment, etc.
Regarding the acquisition, The Fund will complete settlement by a lump-sum payment on the date of acquisition by
paying the agreed price for the property in full to the seller using cash on hand.

8.

Schedule for the Acquisition
April 26, 2024

9.

Conclusion of a purchase agreement for the acquisition of the Asset
Acquisition of the Asset to be Acquired

Outlook
There is currently no revision to the forecast for the fiscal period ending August 31, 2024 (March 1, 2024 to August 31,2024) and the fiscal period ending February 28, 2025 (September 1, 2024 to February 28, 2025) because the impact of theAcquisition on operation of the entire portfolio is minimal.

－ ４ －10. Appraisal Summary
Property Name
Appraisal Value
Appraiser
Appraisal Date

Kojimachi Millennium Garden (additional acquisition)¥264,000,000
Japan Real Estate Institute
April 1, 2024
(Yen)

Item
Capitalization Approach Price
Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income

Amount orPercentage

Grounds

264,000,000
264,000,000
14,066,000
14,806,000(b) Losses due to
Vacancies, etc.
(2) Operating Expenses

4,300,000

Maintenance Costs

770,000

Utilities Costs

400,000

Repair Costs

306,000

Property ManagementFees

415,000

Advertisement for Leasing
Costs, etc.

451,000

Taxes

1,907,000

740,000

Insurance Premium

50,000

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

1,000(5) Capital Expenditure
Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the
Discounted Cash Flow Approach

Estimated by relating the value of revenue using the direct
capitalization method and the discounted cash flow method
equally.
Calculated by capitalizing stable medium- to long-term net
income based on the return rate
Calculated based on appropriate rental levels deemed to bestable over the medium to long term
Assessed assuming stable occupancy rate levels over the
medium to long term
Calculated by making reference to planned management
association fees, expense levels for comparable properties, andother factors
Calculated by making reference to results in prior years,
expense levels for comparable properties, and other factors
Calculated by making reference to expense levels forcomparable properties, average annual amounts of repair
expenses stated in the Engineering Report, and other factors
Calculated by making reference to the planned compensation
rate, compensation rates for comparable properties, and otherfactors
Average annual amount calculated based on the expected
tenant replacement rate
Calculated based on tax basis amount for the 2024 fiscal year
and other factors
Calculated by making reference to insurance premiums forcomparable properties and other factors
Neighborhood association fees calculated

9,766,000
12,000Calculated based on an investment yield of 1.0%

540,000

Calculated by taking into consideration capital expenditurelevels of comparable properties, building age, and averageannual amount of repair expenses stated in the Engineering
Report, assuming accumulation of average reserves in eachfiscal year

9,238,000
3.5%
263,000,000

Discount Rate

3.1%

Terminal Capitalization Rate

3.4%

Calculated based on comprehensive consideration of theproperty’s unique characteristics, taking into consideration theinvestment yields and other data from transactions involving
comparable properties
Calculated based on comprehensive consideration of the
future trends in investment yields, the risks of the property as
an investment target, general forecasts of future economic
growth rates, real estate price and rent trends, and otherfactors, taking into consideration the transaction yields andother data relating to comparable properties.

－ ５ －Cost Approach Price
226,000,000
Ratio of Land
84.5%
Ratio of Building
15.5%
The Kojimachi area, where the property is located, is a historic neighborhood located to the west
Matters Noted in of the Imperial Palace and it boasts excellent transportation access to city centers, and as a result,Reconciliation of solid residential demand can be expected.
Indicated
Value The property has facilities and specifications suitable for the building age, and maintenance andand Determination management conditions are good, and consequently, the property is reasonably competitive inof Appraisal Value comparison to neighboring condominiums.
The assessed value was determined taking the above factors into consideration.
(Note) The figures in the table above correspond to the portion to be additionally acquired.

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Acquisition

Exhibit 2

Photos and Map of the Asset to be acquired

Exhibit 3

Facility conceptual diagram of Kojimachi Millennium Garden*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ ６ －Exhibit 1
Overview of the Portfolio after the Acquisition（¥ million）
Area
SectorGreater Tokyo Area

Others(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

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

Office397,375

65,100462,475

42.0

Logistics

220,472

3,460

223,932

20.3

Residential(including healthcare
facilities)

188,852

27,934

216,786

19.7

Retail111,768

67,890179,659

16.3

Hotels2,360

11,611

13,971

1.3

Others

4,900

―

4,900

0.4

(Anticipated) Total
Acquisition Price(by Area)

925,728

175,996

1,101,724

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
Photos and Map of the Asset to be acquired
Kojimachi Millennium Garden

OfficeResidence (Additional acquisition target)

Exhibit 3
Facility conceptual diagram of Kojimachi Millennium Garden
Below is a representational diagram indicating the relationship of interests between the Fund and other owners of
Kojimachi Millenium Garden following the acquisition by the Fund.
OfficeResidence

21F
20F
19F
18F
Currently-owned
area

17F
16F

Currently-owned
area

15F
14F
13F

Currently-owned area
（11F～16F）

15F

Currently-owned area

12F
11F

Currently-owned area

10F
9F
8F
7F
6F
5F

Currently-owned area
（3F～8F）

4F

Currently-owned area
（2F～7F）

3F
2F

Currently-owned area

1F

Entrance Hall

Entrance Hall

B1
B2
B3

Parking

B4：Indicates the portion to be acquired at this time.
：Indicates areas that the Fund currently owns.
：Indicates areas owned by other unit owners.

以上