[For Translation Purposes Only]

September 12, 2023

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.
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 Beneficial Interest in Real Property Trust in Japanand Disposition of Properties 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 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 Assets to Be Acquired

Property Name

Hotel Wing International Premium
Kyoto-Sanjo

Use

HotelsScheduled
Date of
Purchase andSales
Agreement

Scheduled
Date of
Acquisition

September13, 2023

September
28, 2023

SellerPresence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note 1)

Undisclo
sed

Yes(Note 3)3,200

(Note 2)
(Note 1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2) The seller is a domestic specific purpose company, but since the seller’s consent for disclosure has not been obtained, it is not disclosed. The seller is
not considered a related party under the Act on Investment Trusts and Investment Corporations (“Investment Trust Act”).
(Note 3) The brokerage involved in the acquisition is not considered a related party under the Investment Trust Act.
(Note 4) The assets to be acquired are trust beneficial interest in trust of real estate.
(Note 5) 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 “Assets to be Acquired.”

－ １ －

(2)

Summary of Assets to Be Disposed of

Property Name

Use

Scheduled
Date of
Purchase andSales
Agreement

Scheduled
Date of
Disposition

TransfereePresence ofIntermediary

PRIME URBAN
Kanayama
PRIME URBAN
September
Residential
Kamimaezu
13, 2023

September 28, Undisclosed
2023(Note 4)PRIME URBAN
Chihaya
Total

None

ScheduledTransfer
Price

Book
Value

Difference(Note 2)(¥ million)(¥ million)

610

460

149

1,754

1,358

395

560

518

41

2,924

2,336

587

(Note 1)(¥ million)(Note 3)(Note 1) The amounts stated exclude adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes and local consumption tax,
etc.
(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 gainor loss on sale.
(Note 4) The transferee is a domestic specific purpose company and undisclosed because consent to the disclosure has not been obtained from the transferee. The
transferee is not considered a related party under the Investment Trust Act.
(Note 5) With regard to the disposal of the above property, the precondition to the execution of purchase and sale is the definite execution of the purchase and saleof the assets to be acquired stated in (1).
(Note 6) Of the assets to be disposed of, those relating to PRIME URBAN Kanayama, PRIME URBAN Kamimaezu and PRIME URBAN Chihaya are the actual
real properties. However, through consultation with the transferee, NMF will conclude a trust agreement as of the same date as the scheduled date ofdisposition and dispose of them as beneficial interests in a trust.

The above properties are collectively referred to hereinafter as the “Assets to be Disposed of.” The Assets to be Acquiredand Assets to be Disposed of may be separately referred to as the “Assets.”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.
The transaction is a mutual trading, replacing assets with a seller, and is a crossover deal that straddles sectors, which is
unique to comprehensive REIT.
The business condition of the Assets to be Acquired is on an upward trend as demand for accommodation in Japan isrecovering due to lifting of the border measures including entry restrictions for foreign nationals in April 2023. In July 2023,
the total number of overnight guests, including international visitors, marked an increase of 2% against pre-COVID figuresin 2019, for the first time.(Note) Moreover, in August, Chinese group tours will return, and further tailwind is expected in the
future. Because the hotel to be acquired is located in the center of Kyoto, one of the most popular sight-seeing areas, theFund judged that the property has future growth potential and determined to invest.
In addition, the Fund has considered that securing profits on sale from disposition of the Assets can achieve enhancementof the investors’ returns, and decided on the disposition.
Please refer to 3. Summary of Assets to Be Acquired/Disposed of below for details of the reasons for acquisition ofAssets to be Acquired and the reasons for disposition of Assets to be Disposed of.

(Note) Source: Overnight Travel Statics Survey announced on August 31, 2023 (second preliminary report for June 2023, first preliminary report for July2023) Japan Tourism Agency. The values for July 2023 are from the first preliminary report and may be changed in the second preliminary reportthat is scheduled to be released on September 29, 2023.

－ ２ －

3.

Summary of Assets to Be Acquired/Disposed of(1) Summary of Assets to Be Acquired
Hotel Wing International Premium Kyoto-Sanjo<Reasons for the Acquisition>
The main strengths of the Assets to be Acquired are as follows.
・The Assets are conveniently located as a sight-seeing base in terms of transportation. The location is three-minute
walk from Sanjo Keihan Station on the Kyoto City Subway Tozai Line, easy-access from multiple stations including
Sanjo Station on the Keihan Railway, within walking distance from central Kyoto area for leisure including
Kawaramachi and Gion, and close to popular sight-seeing sites such as Heian Jingu Shrine and Yasaka Shrine.
Moreover, the location is highly competitive as an accommodation and attractive for domestic and international
visitors due to venues in the surrounding area, such as ROHM Theatre Kyoto, a concert hall with approximately
2,000 seats, and Miyako Messe, one of Kyoto’s largest event venues with total floor space of 38,000 m2.
・The guest rooms of the Assets have competitive edge among accommodation for sight-seeing visitors including
those staying consecutive nights for the following reasons. All guest rooms are spacious with approximately 1830m2. Three guests per room can be accommodated in more than half of the guest rooms. All rooms are equippedwith a separate bathroom and toilet, or “separated-wet-area style” room layout. Additionally, large groupreservations, including school trips, can be attracted because the restaurant boasts 64 seats and can serve breakfast
for large groups.
・Kyoto Prefecture ranked fifth in the number of overnight stays in Japan with approximately 30.7 million overnightstays in 2019, and had the highest percentage of inbound visitors in Japan at approximately 39%. This is because
Kyoto Prefecture draws stable domestic demand for overnight stays for business and sight-seeing purposes. In
addition, it enjoys high popularity among foreign visitors in Japan as a world-class tourist destination with plenty of
tourist spots in the prefecture.
・The hotel operator, minacia co., ltd., operates hotels nation-wide including “Hotel Wing International,” a hotel
brand specialized for accommodation. It operates 41 hotels and boasts 5,480 guest rooms as of August 10, 2023,
according to the press release by minacia co., ltd. Stable operation can be expected from the operating know-how
leveraging the advantage of a nation-wide chain.
＜Summary of the Assets to be Acquired＞
Property Name
Type of Asset
Trustee of Trust
Registry
Street(Note 1)
StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Building
Land
Type ofOwnership
Building
Building Coverage Ratio

Hotel Wing International Premium Kyoto-Sanjo
Beneficial interest in a trust in which a real estate is entrusted
Sumitomo Mitsui Trust Bank, Ltd.
407-6 Wakokucho, Sakyo Ward, Kyoto City, Kyoto
407-6 Wakokucho, Sakyo Ward, Kyoto City, Kyoto (Note 2)
Three-minute walk from Sanjo Keihan Station on the Kyoto City Subway
Tozai Line
Six-minute walk from Sanjo Station on the Keihan Main Line of Keihan
Railway
December 16, 2020
Hotel
Five-floor steel-framed reinforced structure with a flat roof
Iwasaki Architectural Design Co., Ltd.
Fujikensetsu Co., Ltd.
Kyoto Organization of Confirmation & Inspection Co., Ltd.
997.92 m2
3,040.91 m2
Ownership
Ownership
80%
－ ３ －

Floor Area Ratio
Collateral
Property Management Company(Note 3)300%
None
THE DAI-ICHI BUILDING CO., LTD.

Master Leasing Company
Type of Master Leasing

2.1％
Seismic Risk (PML)(Based on the Earthquake PML Appraisal Report as of September 2023 by(Note 4)
Sompo Risk Management Inc.)
Notes
Not applicable.
Anticipated Acquisition Price¥3,200 million¥3,580 million (Based on the capitalization approach as of August 1, 2023)
Appraisal Value and Method(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI (Note 5)¥149 million
Leasing Status (as of Scheduled Date of Acquisition) (Note 6)
Total Number of Tenants
1
Name of Tenant
minacia co., ltd.
Hotel Operator
minacia co., ltd.
Undisclosed (fixed-rent-plus-variable-rent type contract）
Of which,
Undisclosed
hotel fixed rent
Total Rental Income
In addition to the fixed rent, the variable rent
(Annual)Of which,
is added by applying the following formula.
hotel variable rent
(Accommodation revenue – fixed amount) ×
predetermined rate
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
3,044.78 m2
Total Leasable Floor Space
3,044.78 m2
AugustAugustAugustAugustAugust
2019
2020
2021
2022
2023
Historical Occupancy Rates (Note 7)
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) The Street Address
As the Street Address is not indicated officially, the building location in the real estate registry is noted.
(Note 3) Property Management Company
Property Management Company refers to the one that is scheduled to be appointed after acquisition.
(Note 4) 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 5) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with August 1, 2023
as the appraisal date.
(Note 6) Leasing Status“Total Number of Tenants” is based on a fixed-term lease contract that is expected to go into effect on the date of acquisition.
“Name of Tenant” is based on a fixed-term lease contract that is expected to go into effect on the date of acquisition.
“Total Rental Income” and “Security Deposits” are both undisclosed as the consent from the tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space presented based on a fixed-term lease contract that is expected to go into effecton the date of acquisition.
(Note 7) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller.

－ ４ －(2) Summary of the Asset to be Disposed of<Reasons for the Disposition>
The Fund decided to make the Dispositions based on the judgment that the profits on sale to be secured and theportfolio quality to be improved by the Dispositions, in addition to the acquisition of excellent properties by property
replacement, taking into account factors such as location and use, would contribute to the medium-to-long-term investor
value.

<Summary of the Asset to be Disposed of>Property Name
Type of AssetRegistry
Street(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasing UnitsArea (Note 1)

PRIME URBAN Kanayama
Real estate
4-219 Masaki, Naka Ward, Nagoya City, Aichi
4-2-37 Masaki, Naka Ward, Nagoya City, Aichi
Seven-minute walk from Kanayama Station on the JR Tōkaidō Line,the JR Chūō Line, the Meitetsu Nagoya Line, the Meijo Subway Line,and the Meiko Subway LineJanuary 19, 2008
Apartment
Eleven-floor steel reinforced concrete structure with flat roof
58

Land

378.28 m2

Building

1,678.61 m2

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note 3)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value (Note 4)
Difference
Appraisal Value and Method

Ownership
Ownership
90% (Note 2)
400%
None
Haseko Livenet, Inc.
Haseko Livenet, Inc.
Pass through5.1% (Based on the Earthquake PML Appraisal Report as of March2023 by Sompo Risk Management Inc.)
Not applicable.
¥553 million¥610 million¥460 million¥149 million¥581 million (Based on the capitalization approach as of February
28, 2023)(Appraiser: Japan Valuers Co., Ltd.)¥31 million

Appraisal NOI (Note 5)
Leasing Status (As of July 31, 2023) (Note 6)
Total Number of Tenants 1
Total Rental Income¥43 million (including common area charges)(Annual)Security Deposits¥3 million
Occupancy Rate
94.8%
Total Leased Floor Space 1,319.07 m2
Total Leasable Floor
1,391.02 m2
Space
July
July
July
Historical Occupancy
2019
2020
2021
Rates
100.0%
96.6%
91.4%(Note 1) Location and Other Items

－ ５ －

July
2022

July
2023

93.1%

94.8%

Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Building Coverage Ratio
The Asset is located in a neighborhood commercial zone where the building coverage ratio is 80% in principle. However, because theAsset is a certified fireproof building in a fire prevention zone, the applied coverage ratio is 90%.
(Note 3) 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 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 February 28,
2023 as the appraisal date.
(Note 6) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset as of July 31, 2023.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the leaseagreements by the total number of end tenants as of July 31, 2023, actually leasing space in the building of the Asset as of today (rounded
down to the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection with thesaid 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 July 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 July 31, 2023 (if the common area, etc. is leased, the floor space thereof is included).

Property Name
Type of AssetRegistry
Street(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasing UnitsArea (Note 1)

PRIME URBAN Kamimaezu
Real estate
2-401, 2-418 Kamimaezu, Naka Ward, Nagoya City, Aichi
2-4-2 Kamimaezu, Naka Ward, Nagoya City, Aichi
Two-minute walk from Kamimaezu Station on the Tsurumai Subway
Line and the Meijo Subway Line
July 30, 2008
Apartment/Store/Bicycle Parking
Eleven-floor steel reinforced concrete structure with flat roof
101

Land

743.17 m2

Building

3,824.15 m2

LandType ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML) (Note 3)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value (Note 4)
Difference

Ownership
Ownership
100% (Note 2)
500%
None
Haseko Livenet, Inc.
Haseko Livenet, Inc.
Pass through2.9% (Based on the Earthquake PML Appraisal Report as of March2023 by Sompo Risk Management Inc.)
Not applicable.
¥1,590 million¥1,754 million¥1,358 million¥395 million－ ６ －Appraisal Value and Method¥1,670 million (Based on the capitalization approach as of February
28, 2023)(Appraiser: Japan Valuers Co., Ltd.)¥80 million

Appraisal NOI (Note 5)
Leasing Status (As of July 31, 2023) (Note 6)
Total Number of Tenants 1
Total Rental Income¥100 million (including common area charges)(Annual)Security Deposits¥10 million
Occupancy Rate
94.3%
Total Leased Floor Space
3,340.17 m2
Total Leasable Floor Space 3,541.43 m2
July
July
July
2019
2020
2021
Historical Occupancy Rates

July
2022

July
2023

91.4％

94.3％

94.3％

97.2％

99.1％

(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 Asset is located in a commercial zone where the building coverage ratio is 80% in principle. However, because the Asset is a certified
fireproof building in a quasi-fire prevention zone, the applied coverage ratio is 100%.
(Note 3) 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 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 February 28,
2023, as the appraisal date.
(Note 6) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Assets as of July 31, 2023.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the leaseagreements by the total number of end tenants actually leasing space in the building of the Asset as of July 31, 2023 (rounded down to thenearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection with the said leaseagreements, 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 July 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 July 31, 2023 (if the common area, etc. is leased, the floor space thereof is included).

－ ７ －Property Name
Type of AssetRegistry
Street(Note 1)StreetPRIME URBAN Chihaya
Real estate
4-2995, 4-2994 Chihaya, Higashi Ward, Fukuoka City, Fukuoka
4-11-20 Chihaya, Higashi Ward, Fukuoka City, Fukuoka
Five-minute walk from Chihaya Station on the JR Kagoshima Lineand Nishitetsu Chihaya Station on the Nishitetsu Kaizuka Line
March 11, 2008
Apartment/Store
Eight-floor steel reinforced concrete structure with flat roof
48

AccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasing UnitsArea (Note 1)Land

1,010.33 m2

Building

2,194.85 m2

LandType ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML) (Note 2)
Notes
Acquisition Price
Scheduled Transfer PriceBook Value (Note 3)
Difference

Appraisal Value and Method

Ownership
Ownership
60%
200%
None
Sanwa Estate Co., Ltd.
Sanwa Estate Co., Ltd.
Pass through
0.8% (Based on the Earthquake PML Appraisal Report as of March2023 by Sompo Risk Management Inc.)
Not applicable.
¥604 million¥560 million¥518 million¥41 million¥533 million (Based on the capitalization approach as of February
28, 2023)(Appraiser: Daiwa Real Estate Appraisal Co., Ltd.)¥31 million

Appraisal NOI (Note 4)
Leasing Status (As of July 31, 2023) (Note 5)
Total Number of Tenants 1
Total Rental Income¥39 million (including common area charges)(Annual)Security Deposits¥2 million
Occupancy Rate
93.9%

Total Leased Floor
Space

1,634.47 m2

Total Leasable Floor
Space

1,740.70 m2

Historical Occupancy
Rates

July
2019

July
2020

July
2021

July
2022

July
2023

100.0%

95.9%

98.1%

98.0%

93.9%

(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) 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 3) Book Value
Anticipated book value at the date of disposition.
(Note 4) Appraisal NOI－ ８ －“Appraisal NOI” is the annual NOI (operating income operating expenses) described in the real estate appraisal report with February 28,
2023, as the appraisal date.
(Note 5) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset as of July 31, 2023.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the leaseagreements by the total number of end tenants as of July 31, 2023, actually leasing space in the building of the Asset as of today (rounded
down to the nearest million yen). The figure does not include any other incidental rent that may be agreed upon in connection with thesaid 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 July 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 July 31, 2023 (if the common area, etc. is leased, the floor space thereof is included).

－ ９ －

4.

Summary of Seller of the Assets to Be Acquired and Transferee of the Assets to Be Disposed of
Detailed information other than that the seller and the transferee are domestic specific purpose companies is not disclosed
because consent to the disclosure of detailed information has not been obtained from the seller and transferee. As of today,neither the Fund nor the Asset Management Company has any notable capital, personnel, or transactional relationship withthe counterparties of the Transaction, and such counterparties are not related parties of either the Fund or the AssetManagement Company.

5.

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

6.

Transactions with Related Parties
There are no transactions with related parties.

7.

Form of Payment, etc.
Regarding the Acquisition, on the scheduled date of acquisition, the Fund will pay the seller the entire purchase price of
the Assets to be Acquired in a lump sum by using cash on hand.
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 cash, obtained through the Disposition, forportfolio management including the acquisition of properties.

8.

9.

Schedule for the Transactions
September 13, 2023

Conclusion of a purchase agreement for the acquisition of the Assets
Conclusion of a purchase agreement for the dispositions of the Assets

September 28, 2023

Acquisition of the Assets to be Acquired
Dispositions of the Assets to be Disposed of

OutlookAs the effect of the Transaction on the operating status of the entire portfolio for the fiscal period ending February 2024
(September 1, 2023 to February 29, 2024) is immaterial, there is currently no change in the outlook for the fiscal period
ending February 2024. In addition, the profits on sale, which will be generated from the Transaction in the fiscal period
ending February 2024, will be directed to dividends for said fiscal period and distributions to internal reserves planned in
the coming fiscal periods, while considering the future management status of the existing portfolio and others.

－ １０ －

10. Appraisal Summary(1) Assets to be Acquired
Property Name

Hotel Wing International Premium Kyoto-Sanjo

Appraisal Value¥3,580,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

August 1, 2023
(Yen)
Item

Capitalization Approach Price
Price Calculated by the Direct Capitalization
Approach(1) Operating Income
Total Potential Income, sum of (a) to(d)(a) Rental Income including Common
Service Expenses(b) Utilities Costs Income

Amount orPercentage
3,580,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed(d) Other Income

Undisclosed

Losses due to Vacancies, etc.

Undisclosed

Bad Debt Loss

Undisclosed(2) Operating Expenses

Undisclosed

Maintenance Costs

Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management Fees

Undisclosed

Advertisement for Leasing

Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow((3) + (4) - (5))(7) Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach

149,709,690
Undisclosed
Undisclosed(Undisclosed)

149,725,707
4.1%

Calculated in consideration of the property’s local andspecific characteristics, referring to the yields of transactionsof surrounding properties and other factors

3,500,000,000
3.9%

Terminal Capitalization Rate

4.3%

Calculated in consideration of the property’s local andspecific characteristics, referring to the yields of transactionsof surrounding properties and other factors
Calculated with consideration of the above capitalization
rate and other factors such as the probable future movementof the yield on investment

2,690,000,000

Ratio of Land

80.4%

Ratio of Building
Matters Noted in
ReconciliationofIndicated Value andDeterminationofAppraisal Value(Undisclosed)

Undisclosed

Discount Rate

Cost Approach Price

Determined by associating the price calculated by the direct
capitalization approach with the price calculated by thediscounted cash flow approach

3,650,000,000(c) Parking Lot Income

Other Expenses(3) Net Operating Income from Leasing
Business ((1) - (2))

Grounds

19.6%

The Property is a hotel specializing in accommodation in Kyoto City. With a major highway behind it, the neighborhoodand surrounding area is a quiet area with many detached houses, as well as some hotels and other facilities. It has
advantages of location as a sightseeing base with various excellent convenience and rich tourism resources. In this area,
the land is unregularly shaped but a corner lot of a large scale, and has high utilization efficiency as a hotel. In addition,
the building has been properly maintained and repaired, and is expected to have stable occupancy in the future. In viewof the above factors, the appraisal value was determined with an emphasis on the capitalization approach priceappropriately reflecting the value for typical investors.

－ １１ －

(Note) The information that is subject to a confidentiality obligation to the lessee and information that can be used to calculate the said information is
included. Therefore, that information is not disclosed because disclosure of such information may cause a disadvantage to NMF due to a breach ofconfidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.

－ １２ －

(2) Assets to be Disposed of
Property Name

PRIME URBAN Kanayama

Appraisal Value¥581,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

February 28, 2023
(Yen)
Amount orPercentage

Item
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.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

Grounds

581,000,000
587,000,000
45,812,087
47,968,466
2,156,379

Recorded based on the judgment that the current contract

1,182,000

Calculated based on actual amounts in the past fiscal years

4,017,547

Property Management Fees
Advertisement for Leasing

1,357,997

Taxes
Insurance Premium

2,815,043
96,820

Other Expenses

682,741

1,704,797

40,577
5,368,417

Recorded based on the judgment that the current contract is reasonableCalculated in consideration of the replacement rate and vacancy rate based on
actuals in the past and the general levels
Calculated based on actual amounts recorded in the fiscal year 2022
Recorded based on the judgement that the actual amount is reasonableCalculated with reference to actual amounts, the general levels and otherfactors (including CM fee)

Calculated based on an investment yield of 1.0%
Calculated based on annual average amount in the engineering report

26,431,302
4.5%
575,000,000
4.3%

4.7%

.

Repair cost: Calculated based on annual average amount in the engineering
report.
Restoration expenses: Calculated with reference to the actual amounts andlevels for comparable properties

31,759,142

Terminal Capitalization Rate

Cost Approach Price
Ratio of Land
Ratio of Building

Calculated based on consideration of current rents, rent levels
Calculated based on consideration of the current vacancy rate, vacancy rates
in the market and other factors

14,052,945
2,196,000

Repair Costs(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 approach
Discount Rate

Calculated taking into account the capitalization approach price determinedusing both the direct capitalization approachCalculated by reducing stable medium-to long-term net cash

Calculated with comprehensive consideration of the property’s specificcharacteristics with reference to yields on investments
Calculated based on a comprehensive consideration of factors such as the yieldon similar property transactions, the probable future movement of the yield
on investment, risks of the property as an investment, general forecasts of theeconomic

310,000,000
63.9％
36.1％
The property is located within walking distance from Kanayama Station, a major hub station on the JR and Meitetsu Lines
as well as the subway lines. The surrounding district features a mixed residential and commercial area with medium- to highrise apartment buildings, parking lots and medium- to low-rise office buildings and others. Offering a favorable convenienceand a certain level of living environment, the area enjoys a stable rental demand. The building is over 15 years old but has
been maintained in good condition, achieving a certain level of competitiveness in the area.
Demanders in the real estate market, in which the property is involved, are mainly investors and they are assumed to maketransactions with a focus on the property’s profitability and investment profitability. In light of this, we concluded that thecapitalization approach price would be the most convincing price in the transaction, and the appraisal value was determined.

－ １３ －

Property Name

PRIME URBAN Kamimaezu

Appraisal Value¥1,670,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

February 28, 2023
(Yen)
Amount orPercentage

Item
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.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

Grounds

1,670,000,000
1,690,000,000
107,020,933
114,127,955
7,107,022

Recorded based on the judgment that the current contract

1,358,000

Calculated based on actual amounts in the past fiscal years

3,463,499

Property Management Fees
Advertisement for Leasing

2,645,400

Taxes
Insurance Premium

7,360,285
202,427

Other Expenses

1,145,152

6,787,312

Recorded based on the judgment that the current contract is reasonableCalculated in consideration of the replacement rate and vacancy rate based on
actuals in the past and the general levels
Calculated based on actual amounts recorded in the fiscal year 2022
Recorded based on the judgement that the actual amount is reasonableCalculated with reference to actual amounts, the general levels and otherfactors (including CM fee)

103,666

Calculated based on an investment yield of 1.0%

4,229,167

Calculated based on annual average amount in the engineering report

76,117,357
4.5%
1,650,000,000
4.3%

4.7％

Matters
Noted
inReconciliationofIndicated Value andDeterminationofAppraisal Value

Repair cost: Calculated based on annual average amount in the engineering
report.
Restoration expenses: Calculated with reference to the actual amounts andlevels for comparable properties

80,242,858

Terminal Capitalization Rate

Cost Approach Price
Ratio of Land
Ratio of Building

Calculated based on consideration of current rents, rent levels
Calculated in consideration of the current vacancy rate, market vacancy ratelevels and other factors

26,778,075
3,816,000

Repair Costs(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 approach
Discount Rate

Calculated taking into account the capitalization approach price determinedusing both the direct capitalization approachCalculated by reducing stable medium-to long-term net cash

Calculated with comprehensive consideration of the property’s specificcharacteristics with reference to yields on investments
Calculated based on a comprehensive consideration of factors such as the yieldon similar property transactions, the probable future movement of the yield
on investment, risks of the property as an investment, general forecasts of theeconomic

1,130,000,000
78.7%
21.3%
The property, located along the Osu-dori Street, is in the commercial area with Kamimaezu Subway Station as the nearest
station. Offering a superior living convenience with its proximity to the Nagoya city center, the area enjoys a stable rental
demand. The building is over 15 years old but has been maintained in good condition, achieving a certain level ofcompetitiveness in the area and keeping the occupancy rate relatively high. In light of this, we determined that the best use
would be keeping the property as a high-rise apartment building with shops as it is.
Demanders in the real estate market, in which the property is involved, are mainly investors and they are assumed to maketransactions with a focus on the property’s profitability and investment profitability. In light of this, we concluded that thecapitalization approach price would be the most convincing price in the transaction, and the appraisal value was determined.

－ １４ －

Property Name

PRIME URBAN ChihayaAppraisal Value¥33,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

February 28, 2023
(Yen)
Amount orPercentage

Item
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.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

Grounds

533,000,000
536,000,000
44,447,099
46,824,092
2,376,993

1,656,000

Repair Costs
4,186,444

Property Management Fees

1,323,004

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

1,208,479
3,478,700
92,623
152,232(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
inReconciliationofIndicated Value andDeterminationofAppraisal Value

Calculated 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

12,855,815

758,333(5) Capital Expenditure Reserve

Calculated by evaluating the capitalization approach price with the direct
capitalization approach, using the capitalization approach price calculated by
the discounted cash flow approach as the baseline
Calculated by reducing stable medium-to long-term net cash

Calculated with reference to the actual amounts in past fiscal years and costlevels for comparable properties
Calculated with reference to the actual amounts recorded in the past fiscal
years
Repair cost: Calculated based on annual average amount in the engineering
report.
Tenant replacement cost: Calculated in consideration of the replacement andvacancy rates
Calculated with reference to the current compensation fee rate, compensation
fee rates adopted to similar properties and other factors
Calculated with reference to the levels of similar properties
Calculated based on actual amounts recorded in the fiscal year 2022
Recorded based on the judgement that the actual amount is reasonable
Recorded based on actual amounts

31,591,284
11,314
6,960,550

Calculated based on an investment yield of 1.0%
Calculated in consideration of the annual average amount given in theengineering report and CM fee

24,642,048
4.6%
531,000,000
4.4%
4.8%

Calculated based on such factors as comparison with discount rates ontransactions of similar properties and yields on other financial instruments.
Calculated with consideration of the capitalization rate and other factors suchas the marketability of the property as of the expiry of holding period

563,000,000
56.7%
43.3%
We determined that the property is located in the same supply and demand zone as the residential and mixed (residential andcommercial) areas centered on Chihaya Station on the JR Kagoshima Line and Nishitetsu Chihaya Station on the Nishitestu
Kaizuka Line, within walking distance from each station in the center and southern part of Higashi Ward. Considering theproperty’s competitiveness in the rental housing market and the real estate market, we determined that the best use would
be keeping the property as a high-rise apartment building with shops as it is.
While demanders in the real estate market, in which the property is involved, are assumed to be mainly investors, thedemanders show a strong tendency to make transactions with a focus on the property’s profitability and investment
profitability. Therefore, we decided that the capitalization approach price would relatively be more convincing than the
cumulative price in the Transaction.

－ １５ －

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Transaction

Exhibit 2

Photos of the Asset to Be Acquired

Exhibit 3

Map of the Asset to Be Acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ １６ －

Exhibit 1
Overview of the Portfolio after the Transaction(¥ million)
Area
SectorGreater Tokyo Area

Others(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

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

Office403,585

65,100468,685

42.6

Retail109,888

67,890177,779

16.2

Logistics

220,472

3,460

223,932

20.4

Residential(including healthcare
facilities)

186,306

27,934214,240

19.5

Hotels

―

9,450

9,450

0.9

Others

4,900

―

4,900

0.4

(Anticipated) Total
Acquisition Price(by Area)

925,152

173,834

1,098,987

100.0

15.8

100.0

Investment Ratio (%)(Note 2)84.2

(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 of the Asset to be Acquired

Exhibit 3
Map of the Asset to Be Acquired