February 6, 2024

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Shohei Yoshida, Executive Director
Asset Management Company: Nomura Real Estate Asset Management Co., Ltd.
Koki Miura, 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 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.
(1)

Summary of Assets to Be Acquired/Disposed ofSummary of Asset to Be Acquired

Property NameMEFULLCHITOSEKARASUYAMA

Use

RetailScheduled
Date of
Purchase andSale Agreement

February 7,
2024

Scheduled
Date of
Acquisition

April 24,2024
(Note 2)

SellerPresence ofIntermediary

AnticipatedAcquisitionPrice(¥ million)(Note 1)

Nomura Real
EstateDevelopment,
Co., Ltd.

None

1,880

(Note 1) The amounts stated exclude acquisition related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2) The scheduled date of acquisition may be changed to March 25, 2024 with agreement of the seller and the buyer.
(Note 3) With regard to the acquisition of the above property, the precondition to the execution of purchase and sale is the definite execution of the purchaseand sale of the assets to be disposed of below

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

－ １ －

(2)

Summary of Asset to Be Disposed of

Property Name

Use

Scheduled
Date of
Purchaseand Sales
Agreement

PRIME URBAN
February 7,
Residential
2024
Iidabashi

Scheduled
Date of
Disposition

Transferee

PresenceofIntermediary

ScheduledTransfer
Price(Note 1)(¥ million)

April 24,2024
(Note 4)

Nomura Real
EstateDevelopment,
Co., Ltd.

None

2,244

Book
Value
(Note 2)(¥ million)

1,889

Difference(Note 3)(¥ million)

354(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 scheduled date of disposition may be changed to March 25, 2024 with agreement of the seller and the buyer.
(Note 5) The asset to be disposed of is a trust beneficial interest in trust of real estate.
(Note 6) There is no intermediary involved in the disposition of the asset to be disposed of.
(Note 7) With regard to the disposal of the above property, the precondition to the execution of purchase and sale is the definite execution of the purchaseand sale of the assets to be acquired stated in (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 ofIncorporation.
Under the Transaction, the Fund will transfer to Nomura Real Estate Development Co., Ltd. (the “Sponsor”) a rental
housing property located within an area for which an urban redevelopment project is planned, while acquiring a retail facility
from the Sponsor. It is a transaction to replace assets through a mutual sale and purchase of properties with the Sponsor
and a crossover deal that straddles sectors, which is unique to comprehensive REIT.
With regard to the Asset To be Disposed of, a redevelopment project in which the Sponsor is involved as a businesssupporter is planned for the area where the property is located, and the disposition was suggested by the Sponsor. In
addition to the disposition, the Fund considered continuing to manage the property in light of the effects of redevelopment.
However, the Fund has decided to carry out the Disposition because there is uncertainty in projecting profits, etc. during
the redevelopment project period and after the completion, even if the property continues to be managed, and profits canbe stabilized by executing the Transaction.
The entire amount equivalent to the gain on sale associated with the Disposition will be evenly distributed across four
fiscal periods—from the fiscal period ending August 31, 2024 to the fiscal period ending February 28, 2026—based on thestrategies stated in the presentation materials for the fiscal period ended August 31, 2023 that was released on October 18,
2023 (Note).
Meanwhile, the acquisition of the property involved in the Transaction has been decided because it is a high-quality
property recently built in a favorable location as part of the MEFULL series—the retail facilities developed by the Sponsor
that are focused on the services sector business—and can be expected to generate stable profits in the future.
For details on the reasons for the acquisition of the Asset to be Acquired and the disposition of the Asset to be Disposedof, please refer to “3. Summary of Assets to Be Acquired/Disposed of ” 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.

3.

Summary of Asset to Be Acquired/Disposed of(1) Summary of Asset to Be Acquired－ ２ －MEFULL CHITOSEKARASUYAMA＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・The Asset is a two-minute walk from Chitose Karasuyama Station on the Keio Line and in a favorable location withexcellent transportation access, 12 minutes away from Shinjuku Station on the Keio Line.
・In the area surrounding Chitose Karasuyama Station, condominiums and other houses are concentrated with about
28,000 households living within 1 km of the Asset. Located in an area with a large population, the Asset is a retailfacility that can be expected to attract people using the Keio Line and neighboring residents.
・The area surrounding Chitose Karasuyama Station has a concentration of retail facilities, with more than 150 shops
lined up along “Elmall Karasuyama,” a shopping street that extends north and south.
<Summary of the Asset to Be Acquired>
Property NameMEFULL CHITOSEKARASUYAMA
Type of Asset
Real estate5-645-16 (and one other parcel of land) Minami Karasuyama, Setagaya Ward,
Registry(Note
1)
Location
Tokyo
StreetAccessCompletion Date(Note 1)
Use(Note 1)
Structure(Note 1)
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor
Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company
Type of Master Leasing(Note 5)

Seismic Risk (PML)(Note 6)

Notes

Anticipated AcquisitionPrice

5-19-11 Minami Karasuyama, Setagaya Ward, Tokyo
2-minute walk from Chitose Karasuyama Station on the Keio LineJanuary 21, 2021
Store
Seven-floor steel reinforced concrete structure with flat roof
Fukuda Corporation, Tokyo Office, Registered Architect’s Office
Fukuda Corporation, Tokyo Head OfficeUrban Housing Evaluation Center
264.66 m2
1,348.55 m2
Ownership
Ownership
98.34%(Note 2)
475.22%(Note 3)
None
Nomura Real Estate Retail Properties Co., Ltd.
Nomura Real Estate Retail Properties Co., Ltd.
Pass through
6.8% (Based on the Earthquake PML Appraisal Report as of December 2023 by
Sompo Risk Management Inc.)
・Nomura Real Estate Retail Properties Co. Ltd., the property managementcompany, is considered a related party under the Act on Investment Trusts andInvestment Corporations.
・Pursuant to a contract with Nomura Real Estate Development Co., Ltd., the
use,
for
no
consideration,ofthetrademark
MEFULLCHITOSEKARASUYAMA is subject to the property management agreement
and the master lease agreement with Nomura Real Estate Retail Properties Co.,
Ltd. remaining in full force and effect.
¥1,880 million¥1,990 million (Based on the capitalization approach as of January 1, 2024)(Appraiser: Japan Real Estate Institute)
Appraisal NOI(Note 7)
74 million
Leasing Status (As of February 6, 2024) (Note 8)
Total Number of Tenants
8
Total Rental Income¥91 million(Annual)Security Deposits¥69 million

Appraisal Value and Method－ ３ －Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy
Rates(Note 9)

100.0%
1,139.05 m2
1,139.05 m2
January
2020―

January2021
65.7%

January2022
86.0%

January2023
100.0%

January2024
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) Building Coverage Ratio
The building coverage ratio for the location of the Asset is designated as 80% for the portion belonging to a commercial zone and 60% for
the portion belonging to a Category 1 medium-to-high rise exclusive residential district. However, as the Asset is a certified fireproof building
in a fire prevention zone, the applied ratio has been increased to 98.34% from the weighted average figure calculated according to the area
ratio.
(Note 3) Floor Area Ratio
The floor area ratio for the location of the Asset is designated as 500% for the portion belonging to a commercial zone and 200% for the
portion belonging to a Category 1 medium-to-high rise exclusive residential district, and the weighted average figure calculated according to
the area ratio is applied.
(Note 4) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 5) 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 6) 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 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with January 1,
2024 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be Acquired as ofFebruary 6, 2024.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the lease agreementswith the end tenants actually leasing space in the building of the Asset as of February 6, 2024 (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 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 (rounded down
to the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 6, 2024 by Total Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of February 6, 2024.
“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 February 6, 2024 (if any common area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
There are no applicable occupancy rates for the end of January 2020 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 of
PRIME URBAN Iidabashi<Reasons for the Disposition>
As stated in “2. Reasons for the Transaction,” as a result of considering selling or continuing to hold the property as
it is located in a redevelopment area, the Fund decided to carry out the Disposition, determining that the Disposition
would enable the Fund to acquire a high-quality property recently built in a favorable location and stabilize its cash flow,
and that the resulting gain on sale would contribute to the interests of unitholders.
<Summary of the Asset to Be Disposed of>Property Name
PRIME URBAN Iidabashi
Type of Asset
Trust beneficial interest in trust of real estate
Trustee
Mitsubishi UFJ Trust and Banking Corporation
4-13-4 (and two other parcels of land) Iidabashi, Chiyoda Ward,
Registry
Location
Tokyo(Note 1)Street4-8-9 Iidabashi, Chiyoda Ward, Tokyo
1-minute walk from Iidabashi Station on the JR Sobu Line and theToei Subway Oedo Line
Access1-minute walk from Iidabashi Station on the Tokyo Metro Yurakucho,
Tozai, and Nanboku Lines
Completion Date(Note 1)
October 1, 2005
Use(Note 1)
Apartment, shop, office, parking, meeting place
Structure(Note 1)
14-floor reinforced-concrete steel-frame structure with flat roof
Leasing Units
90Land
323.62 m2
Area(Note 1)
Floor Area
2,317.51 m2
Land
Ownership
Type ofOwnership
Building
Ownership
Building Coverage Ratio(Note 2)
100%
Floor Area Ratio
700%
Collateral
None
Property Management Company
Nomura Real Estate Partners Co., Ltd.
Master Leasing Company
Nomura Real Estate Partners Co., Ltd.
Type of Master Leasing
Pass through
4.1% (Based on the Earthquake PML Appraisal Report as of
Seismic Risk (PML)(Note 3)
September 2023 by Sompo Risk Management Inc.)
Nomura Real Estate Partners Co. Ltd., the property management
Notes
company, is considered a related party under the Act on Investment
Trusts and Investment Corporations.
Acquisition Price¥2,040 million
Scheduled Transfer Price¥2,244 million(Note
4)
Book Value¥1,889 million
Difference¥354 million¥2,100 million (Based on the capitalization approach as of August 31,
Appraisal Value and Method2023)(Appraiser: Chuo Real Estate Appraisal Co., Ltd.)
Appraisal NOI(Note 5)
87 million
Leasing Status (As of December 31, 2023) (Note 6)
Total Number of Tenants 1
Total Rental Income (Annual) ¥118 million (including common area charges)
Security Deposits¥6 million
Occupancy Rate
96.8%
Total Leased Floor Space
2,021.64 m2
Total Leasable Floor Space 2,087.7 m2
August 2019 August 2020 August 2021 August 2022 August 2023
Historical Occupancy Rates
96.8%
97.9%
93.6%
98.9%
100%
－ ５ －

(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 location of the Asset is within a commercial zone, a building coverage ratio of 80% is normally applied; however, the applied ratio
has been increased to 100% because the Asset is a certified fireproof building in a fire prevention zone.
(Note 3) 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 4) Book Value
Anticipated book value at the date of disposition.
(Note 5) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with August 31,
2023 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 as a block , and then thelessee under such lease agreement (the master lease agreement) sub leases each of the rooms to the end tenants.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the lease agreementswith the end tenants actually leasing space in the building of the Asset as of December 31, 2023 (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 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 (rounded down
to the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of December 31, 2023.
“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 December 31, 2023 (if any common area, etc. is leased, the floor space thereof is included).

4.

Summary of Seller of Asset to Be Acquired and Buyer of Asset to Be Disposed ofCompany 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, 2023)
Established
April 15, 1957
Net Assets¥184.8 billion (as of March 31, 2023)
Total Assets¥1,866.0 billion (as of March 31, 2023)
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 December 1, 2023). 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.
Nomura Real Estate Development Co., Ltd. does not fall under the definition of a
Related Party
related party of the Fund for the accounting purpose. However, the said company is a
Statusrelated party of the Asset Management Company as it is a subsidiary of a common
parent company, as stated above.
－ ６ －

5.

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

Previous Owner and/or Trustee

For development for later sale－－－(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.

6.

Transactions with Related Parties(1) Transactions Related to the Acquisition of Asset to Be Acquired and the Disposition of Asset to Be Disposed of
Nomura Real Estate Development Co., Ltd., which is the seller and buyer in the Transaction, is considered to fallunder a related party under the Investment Trust Act as stated above. Accordingly, the acquisition and acquisition
price of MEFULL CHITOSEKARASUYAMA, the disposition and disposition price of PRIME URBAN Iidabashi,and other relevant terms have been duly examined and authorized by the Asset Management Company’s compliancecommittee and investment committee pursuant to its investment committee rules, rules of compliance, compliancemanual, rules concerning transactions with related parties, and other relevant internal rules and guidelines.
(2) The property management and master lease transactions of MEFULL CHITOSEKARASUYAMA
The property management company and master leasing company of MEFULL CHITOSEKARASUYAMA, Nomura
Real Estate Retail Properties Co., Ltd., is considered a related party under the Investment Trust Act as stated above.
Accordingly, the fees and other terms of the consignment of property management, as well as the lease period, rental
rate, and other leasing terms, related to MEFULL CHITOSEKARASUYAMA 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.

Form of Payment, etc.
(1) Form of Payment
Regarding the Acquisition, the Fund will complete settlement by paying the sale price for the Asset to Be Acquired infull to the seller on the scheduled date of acquisition using its own funds.
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 obtained through the Disposition forfunds on hand used at the time of the Acquisition.
(2) Impact on the Financial Position of the Fund in Case of a Failure to Fulfill Our Forward Commitment
The sale agreement associated with the Acquisition (the “Sale Agreement”) is considered to be a forward commitment(as stipulated in the Financial Services Agency’s Comprehensive Guidelines for Supervision of Financial Instruments
Business Operators, etc. The Sale Agreement includes the provisions below.
－ ７ －(Note) Defined as purchase and sale agreements or similar contract which are signed one month or more in advance of the actual date on which thepurchase price is paid and the property is transferred to the purchaser.

1)
2)

3)

4)

8.

9.

Under the Sale Agreement, procuring funds through the issuance of new investment units by the acquisition
date is set forth as a condition precedent for the obligation of the buyer.
Where there is material breach of terms of the sale agreement by the seller or buyer (hereinafter such seller orbuyer shall be referred to as the “violating party”), the non-violating party may cancel the agreement by written
notice to the violating party. In such a case, the non-violating party may require the violating party to pay a
penalty charge that is equivalent to 20% of the sale price. Even if the damage suffered due to the cancellation
exceeds an amount that is equivalent to 20% of the sale price, neither party may request an increase of thepenalty charge. On the other hand, even if the damage suffered due to the cancellation fails to reach an
amount that is equivalent to 20% of the sale price, neither party may request a decrease of the penalty charge.
In the event of damage exceeding an amount equivalent to 20% of the sale price, the above provision does notpreclude the non-violating party from demanding damages of the portion in excess of 20%.
If the Sale Agreement associated with the Disposition becomes ineffective due to cancellation, termination,
rescission, or other grounds, the Sale Agreement will be duly terminated. In such a case, neither party may
demand any damages, etc. from the other party based on the Sale Agreement.
The buyer may negotiate with the seller to change the sale price if the buyer has obtained an appraisal reportof the Asset to Be Acquired by the scheduled date of transaction and the appraisal value shown in theappraisal report falls below the sale price. In such a case, the seller or the buyer may cancel the Sale Agreement
without any indemnification or compensation if the parties have failed to agree on the sale price by thescheduled date of transaction.

Schedule for the Transaction
February 7, 2024

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

April 24, 2024

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

Outlook
Since the Transaction will be implemented after the end of the fiscal period ending February 2024 (September 1, 2023
to February 29, 2024), there will be no impact on the operating status for the fiscal period ending February 2024. Also, as
the effect of the disposition on the operating status of the entire portfolio for the fiscal period ending August 2024
(March 1, 2024 to August 31, 2024) is immaterial, there is currently no change in the outlook for the fiscal period ending
August 2024.
The Fund expects the Disposition to generate profits on sale of ¥334 million, and the entire amount will be evenly
distributed across four fiscal periods—from the fiscal period ending August 31, 2024 to the fiscal period ending
February 28, 2026—based on the strategies stated in the presentation materials for the fiscal period ended August 31,
2023 that was released on October 18, 2023

－ ８ －

10. Appraisal Summary(1) Asset to Be Acquired
Property NameMEFULL CHITOSEKARASUYAMAAppraisal Value¥1,990,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

January 1, 2024
(Yen)

Item
Income 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

1,990,000,000
2,010,000,000
101,132,000
104,163,000
3,031,000(2) Operating Expenses

26,856,000

Maintenance Costs

7,600,000

Utilities Costs

8,500,000

Repair Costs

237,000

Property Management Fees

3,600,000

Advertisement for Leasing Costs,
etc.

742,000

Taxes

5,610,000

Insurance Premium

67,000

Other Expenses

500,000(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4)Profit through Management of
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 ApproachCalculated based on appropriate rent levels recognized as stable over the
medium- to long-term
Calculated on the assumption of a stable occupancy rate over the medium- tolong-term
Calculated based on the anticipated maintenance work cost, cost levels at
similar properties and other factors
Calculated based on actual costs in past years and actual costs at similar
properties, taking into consideration factors such as the occupancy rates of therooms for rent
Calculated in consideration of the cost levels at similar properties, annual
average amount of repair and renewal costs given in the Engineering Reportand other factors
Calculated based on the anticipated amount of compensation, compensation
fee rates adopted for similar properties and other factors
Recorded the annual average calculated based on the expected turnover periodof tenantsCalculated based on the tax base amounts in the fiscal year 2023 and otherfactors
Calculated based on insurance quotes, the premium rates at similar properties
and other factors
Costs such as AED installation fees, phone line usage fees, and digital signagerelated costs are recorded

74,276,000
678,000

Calculated based on an investment yield of 1.0%

580,000

Calculated in consideration of the capital expenditure levels at similar
properties, the building's age, and the annual average repair and renewal costs
given in the Engineering Report, based on the assumption of leveled
accumulation in each period

74,374,000
3.7%
1,970,000,000

Discount Rate

3.5%

Terminal Capitalization Rate

3.8%

Cost Approach Price
Ratio of Land
Ratio of Building

Determined by referring equally to the price calculated with the direct
capitalization approach and the price calculated with the discounted cash flow
approachCalculated by reducing stable medium-to long-term net cash flow based on thecapitalization rate

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 theyields on investment in similar properties, future trends of investment yields,
risks of the property as an investment, general forecasts of future economic
growth rate, and the trends of real estate prices and rents

1,970,000,000
82.2%
17.8%

－ ９ －

Matters
Notedin
Reconciliation ofIndicated Value andDeterminationof Appraisal Value

The property is located in a commercial area surrounding Chitose Karasuyama Station, where Keio Line express trains stop.
As shops targeting neighboring residents are concentrated in the area and housing demand is solid for the outer areas,demand for shop openings is predicted to remain firm going forward.
The building is a recently built retail facility where the majority of tenants are those in the service sector. It is readily visible
from the main street of the shopping arcade in front of Chitose Karasuyama Station, and the property is highly competitive
as a retail facility.
In view of the above factors, the appraisal value was determined.

－ １０ －

(2) Asset to be Disposed of
Property Name

PRIME URBAN Iidabashi

Appraisal Value¥2,100,000,000

Appraiser

Chuo Real Estate Appraisal Co., Ltd.

Appraisal Date

August 31, 2023
(Yen)
Amount orPercentage

Item

2,100,000,000

Income Capitalization Approach Price
Price Calculated by
Capitalization ApproachtheGrounds

Direct(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to Vacancies, etc.

2,110,000,000

Calculated with an emphasis on the price calculated with the discounted cash
flow approach, and also referring to the price calculated with the direct
capitalization approachCalculated by reducing stable medium-to long-term net cash flow based on thecapitalization rate

112,932,000
119,758,000

6,826,000

Calculated based on appropriate rent levels recognized as stable over the
medium- to long-term
The stable medium- to long-term occupancy rate (vacancy rate), etc. is
calculated, taking into consideration factors such as the occupancy results ofthe property and similar properties and the outlook for future market
developments(2) Operating Expenses

25,502,000

Maintenance Costs

2,756,000

Utilities Costs

1,767,000

Repair Costs

7,710,000

Property Management Fees

3,523,000

Advertisement for Leasing Costs,
etc.

3,892,000

Taxes

5,679,000

The most recent results were adopted.

Insurance Premium

175,000

The most recent results were adopted.

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

0

116,000
11,705,000(6) Net Cash Flow
(NCF = (3)+(4)-(5))

75,841,000

Price Calculated by the Discounted Cash
Flow Approach

The total amount of small-scale repair costs and restoration costs is recorded.
The total amount of property management fees and construction
management fees is recorded.
The total amount of brokerage fees and other expenses, advertisement costand renewal fees is recorded.

None

87,430,000(5) Capital Expenditure Reserve(7) Capitalization Rate

Calculated based on the terms and conditions of the current building
management contract, taking into consideration factors such as past results
and cost levels at similar properties
Calculated based on past results taking into consideration cost levels at similar
properties and other factors

3.6%

Calculated based on an investment yield of 1.0%
To record large-scale repair costs and facility renewal costs expected to be
incurred equally in each year, the annual average amount of renewal costs
estimated in an Engineering Report is recorded

Calculated with consideration of the property’s characteristics in terms ofgeographical conditions, building specifications, rights relationships, etc.,
referring to yields on investment for transactions of similar properties andothers2,100,000,000

Discount Rate

3.4%

Terminal Capitalization Rate

3.8%

Cost Approach Price

1,820,000,000

Ratio of Land

76.9%

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 theyields on investment in similar properties, future trends of investment yields,
risks of the property as an investment, general forecasts of future economic
growth rate, and the trends of real estate prices and rents－ １１ －

23.1%

Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

The appraisal value was determined by adopting the income capitalization approach price, with reference to thetotal amount of a land value estimate and a building value estimate.

Exhibits
Exhibit 1

Overview of the Portfolio after the Transaction

Exhibit 2

Photos and Maps 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
(Note 1)

(Anticipated ) Total
Other Areas

Acquisition Price(by Sector)

Investment Ratio(%) (Note 2)

Office397,115

65,100462,215

42.0

Retail111,768

67,890179,659

16.3

Logistics

220,472

3,460

223,932

20.4

Residential(including healthcare
facilities)

188,852

27,934

216,786

19.7

Hotels

2,360

9,450

11,810

1.1

Others

4,900

―

4,900

0.4

(Anticipated )Total Acquisition Price(by Area)

925,468

173,834

1,099,303

100.0

15.8

100.0

Investment Ratio (%)(Note 2)
(Note 1)

84.2

“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 perip heral 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 Access Map of the Asset to be Acquired
MEFULL CHITOSEKARASUYAMA