[For Translation Purposes Only]
February 25, 2016

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Satoshi Yanagita, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Motomi Uki
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Debt Financing and Concluding Interest-Rate Swap Agreements

Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund” or ”NMF”) announced
today that the Fund will procure debt financing (the “Loans”) and signed interest rate swap agreements
regarding the Loans, as stated below.

Ⅰ．Debt Financing
1. Purpose

The Fund has decided to procure the loan in order to repay current outstanding loans.

2.

Details of Debt Financing
Lenders

The Nomura Trust andBanking Co., Ltd.

Sumitomo Mitsui Trust Bank,
Limited(Note 1)

(Note 2)

Amount(millions of yen)

2,000

3,000

Interest Rate

Drawdown
TermDate

Floating-rate
Basic Interest Rate
+0.26%(Note 1)(Note 2)(Note 3)(Note 4) February
Floating-rate29, 2016
Basic Interest Rate
+0.46%(Note 1)(Note 2)(Note 3)(Note 4)

5 years

LoanTypeFebruary 26,
Lump-sum
2021
Term Loan(Floating-rate,contracted on
Feburuary 25,
8 years 2016)

and 6monthRepayment Terms ofCollateralDate(Note 5) Repayment

repayment on
Unsecured,
theunguaranteed
repayment
August 26,
date2024

Basic Interest Rate, which applies to the calculation period of the interest rate to be paid on the Interest Payment Date, will be
JBA 3 month JPY TIBOR as of two business days before the previous Interest Payment Date of the respective interest
payment dates (however, the Drawdown Date for the first interest rate calculation period) announced by the JBA TIBOR
Administration.
Basic Interest Rate indicated in (Note 1) will be reviewed on each Interest Payment Date. However, in the case the rate thatapplies to the calculation period of the interest rate does not exist, what is calculated based on the method stated in the contract
will be the Basic Interest Rate that applies to the concerned period. Refer to the JBA TIBOR Administration website regarding
the changes in the respective JBA Japanese Yen TIBOR, the base interest rate.

－ 1 －(Note 3)(Note4)(Note5)

May 26, 2016, the first interest payment date, and 26th of every February, May, August, and November thereafter until theRepayment Date. (or the following business day if the date is a non-business day, or the prior business day if the following
business date is in the next month)Interest rates to be paid are fixed by concluding interest-rate swap agreements. Refer “II. Concluding Interest-rate Swap
Agreement” below for details.
Repayment Date is the following business day if the date is a non-business day, or the prior business day if the following
business date is in the next month

3. Use of Funds(1) Specifics:(2) Scheduled Date of Use:

Loan proceeds will be used in order to repay current outstanding loans of ¥5,500
million (the difference repaid through fund in hand), scheduled on February 29,
2016, according to the credit loan agreement.
February 29,2016

Ⅱ．Concluding Interest-Rate Swap Agreements
1．Purpose for Signing the Interest Rate Swap Agreements
With respect to the debt financing (among the Loans, ¥2,000 million debt financing with February 26, 2021
as the repayment date will be referred to as the “5 Years Loan,” ¥3,000 million debt financing with August 26,2024 as the repayment date will be referred to as the “8 Years and 6 Months Loan”, the Fund intended toconvert the interest rate for such debt financing from floating-rate to fixed-rate for the entire period until therepayment date, in order to hedge risks of interest rate fluctuations.
2．Summary of Interest-Rate Swap Agreement<Long-Term Borrowing (Term for 5 years)>
1. Counterparty: Sumitomo Mitsui Trust Bank, Limited
2. Notional Principal Amount: ¥2,000 million
3. Interest Rate
: Fixed Payment ▲0.03440%p.a.
Variable Receipt JBA 3 months JPY TIBOR
4. Commencement Date: February 29, 2016 (the same date of the Scheduled Drawdown Date of
the 5 years Loan financing as announced today)
5. Termination Date
: February 26, 2021 (the same date of the Scheduled Repayment Date of
the 5 years Loan financing as announced today)
6. Interest Payment Dates: For both payment to and from the counterparty, May 26, 2016, the firstinterest payment date, and 26th of every February, May, August, andNovember thereafter until February 26, 2021, and the Termination Date.
(or the following business day if such date is a non-business day, or theprior business day if the following business date is on the next month)* Due to the swap agreement, the interest rate will be fixed at 0.22560% until the repayment of the 5 years Loan.

<Long-Term Borrowing (8 Years and 6 Months Loan)>
1. Counterparty: Sumitomo Mitsui Trust Bank, Limited
2. Notional Principal Amount: ¥3,000 million
3. Interest Rate
: Fixed Payment 0.12175%p.a.
Variable Receipt JBA 3 months JPY TIBOR
4. Commencement Date: February 29, 2016 (the same date of the Scheduled Drawdown Date of
the 8 Years and 6 Months Loan financing as announced today)
5. Termination Date
: August 26, 2024 (the same date of the Scheduled Repayment Date of
the 8 Years and 6 Months Loan financing as announced today)
6. Interest Payment Dates: For both payment to and from the counterparty, May 26, 2016, the firstinterest payment date, and 26th of every February, May, August, andNovember thereafter until August 26, 2024, and the Termination Date. (orthe following business day if such date is a non-business day, or the priorbusiness day if the following business date is on the next month)* Due to the swap agreement, the interest rate will be fixed at 0.58175% until the repayment of the 8 Years and 6 Months
Loan.

－ 2 －

Ⅲ．Status of Interest Bearing Debts after Debt Financing and Repayment
Before drawdown andthe repayment
Short-term Borrowings
Long-term Borrowings(Note 2)After drawdown and therepayment (Note 1)(¥mln)
Increased/Decreased
Amount9,100

9,100－362,064

361,564-500

Investment CorporationBond (Note 3)
Sub Total

32,50032,500－394,564

394,064

-500

Total

403,664

403,164-500(Note 1)
(Note 2)
(Note 3)

Value after repayment (¥5,500 million in total) of the borrowings mentioned in above Ⅰ.3.
Includes Long-term Borrowings due within one year
Includes Investment Corporation Bond due within one year

Ⅳ．Other Matters Required for Investors to Accurately Understand and Evaluate theInformation
NMF was incorporated through the consolidation-type merger as of October 1, 2015, and has not filed any SecuritiesRegistration Statement or Securities Report and therefore has not disclosed “Investment Risks” yet. Please refer to thecontent of “Investment Risks” of the Securities Reports (in Japanese) filed by Former NMF on November 27, 2015, byNomura Real Estate Office Fund, Inc. on July 29, 2015 and by Nomura Real Estate Residential Fund, Inc. on August 26,
2015, respectively, regarding the risks involved in the repayment of the borrowings, etc., as there is no material change insuch risks.
NMF is to disclose its “Investment Risks” in the Securities Report of NMF (the fiscal period from October 1, 2015 toFebruary 29, 2016) to be filed hereafter.

*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/－ 3 －