[For Translation Purposes Only]

March 8, 2022

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:

Hiroshi Ishigooka
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Property Acquisition and Disposition
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 or dispose of a property (the “Acquisition” or the “Disposition” or collectively the“Transaction”), as described below.

1. Summary of Assets to Be Acquired/Disposed of(1) Summary of Asset to Be Acquired
Property Name

Use

PRIME URBAN Higashi Nakano
Court (Note 2)

Residential

AnticipatedAcquisition
Price (million)

Date of
Purchase andSale Agreement

Scheduled
Date of
Acquisition

SellerMarch 8,2022

March 15,
2022

Undisclosed(Note 1)
(Note 3)

7,020

(Note 1)The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2)The name of the property is scheduled to be changed to “PRIME URBAN Higashi Nakano Court” from the present name of“ACOLT Shinjuku Ochiai” after the Fund’s acquisition of the property.
(Note 3)Undisclosed, since a consent has not been obtained from the seller.
(Note 4)There is no brokerage involved in the acquisition of the asset to be Acquired.

The above property is referred to hereinafter as the “Asset to be Acquired.”(2) Summary of Asset to Be Disposed of
PropertyName

NRE Higashinihonbashi
Building

Use

OfficeScheduled
Date ofAgreement

March 8,2022

Scheduled
Date of
Disposition

Transferee

September 15,
2022(Quasi co-ownershipof 50%)
Undisclosed(Note 2)
March 15,
2023
(Quasi co-ownershipof 50%)

ScheduledTransferPrice(¥ million)

Book
Value
(¥ million)

2,260

1,835

424

2,260

1,822

437

(Note 3)Difference(¥ million)(Note 4)(Note 1)The amounts stated exclude adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes- 1 -and local consumption tax, etc.
(Note 2)Undisclosed, since a consent has not obtained from the transferee. Note that the purchaser is the same as the seller of the Assetto be acquired.
(Note 3) Anticipated book value at the date of disposition.
(Note 4) This is only a reference value which is the difference between the scheduled transfer price and the anticipated book value,
therefore, it is different from gain or loss on sale.
(Note 5) There is no brokerage involved in the disposition of the asset to be Disposed of.
(Note 6) As of the date of this document, the asset to be Disposed of is an actual real estate, however, through consultation with thetransferee, NMF will conclude the trust agreement on the same date of the scheduled date of disposition and transfer the asset
to be Disposed of as a trust beneficiary right. The same shall be applied throughout this document.

The above property is referred to hereinafter as the “Asset to be Disposed of.” The Asset to be Acquired andAsset 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 of Incorporation. The Transaction is a replacement transaction by mutual trading with a businesscompany and is a crossover deal that crosses over sectors, taking advantage of the strengths of a diversified type REIT.
The property to be acquired is very rare because it is located in a good area and is a large-scale residential facility witha substantial number of large units (two-bedroom and three-bedroom units, etc.), demand for which is rising further
due to the COVID-19 pandemic. In addition, there is no significant future concern about the Asset to be Disposedof being a candidate for sale through replacement in an external growth strategy. The Fund judged that investors’interests can be improved by replacing it with an excellent residential facility and securing

profits on sale, anddetermined the Asset to be Disposed of as a result of negotiation with the Counterparty. The Transaction was realized
by a solid relationship between the Fund as a comprehensive developer group company and the business company,
and will also improve the portfolio quality mentioned below through asset replacement with the Transaction. Pleaserefer to 3. Summary of Assets to Be Acquired/Disposed of below for details of the reasons for Assets to be Acquired
and the reasons for Assets to be Disposed of.
Note that, in line with the sale of NRE Higashi-nihonbashi Building, profits on sale of 398 million yen and 414
million yen are expected to be realized in the fiscal periods ending February 28, 2023 (September 1, 2022 to February
28, 2023) and August 31, 2023 (March 1, 2023 to August 31, 2023), respectively. The profits on sale will be directed
to internal reserves, with the intention of raising the distribution level or stabilizing future distributions, whileconsidering the future management status of the existing portfolio.
Reference: The portfolio indicators of the properties
NRE Higashi-nihonbashi Building

PRIME URBAN Higashi Nakano Court(Asset to be Disposed of)(Asset to be Acquired)

NOI yield

4.1%(Note 1)

4.4%(Note 2)

NOI yield after depreciation

3.0%(Note 3)

3.7%(Note 4)

Asset age(Note 5)

32.4 years

12.9 years(Note 1) The value entered is calculated by dividing the total NOI, for the 11th fiscal period ended February 28, 2021 and 12th fiscal period
ended August 31, 2021, by the Anticipated Disposition Price. The value is rounded to the first decimal place.
(Note 2) The value entered is calculated by dividing the NOI based on the direct capitalization approach recorded in the appraisal summary
by the anticipated acquisition price. In addition, the value is rounded to the first decimal place.
(Note 3) The value entered is calculated by dividing the total NOI after depreciation, for the 11th fiscal period ended February 28, 2021 and12th fiscal period ended August 31, 2021, by the Anticipated Disposition Price. The value is rounded to the first decimal place.
(Note 4) The value entered is calculated by deducting the estimated depreciation value, calculated by the asset management company, fromthe NOI based on the direct capitalization approach recorded in the appraisal summary, and then dividing by the Anticipated- 2 -Acquisition Price. The value is rounded to the first decimal place.
(Note 5) The asset age entered is as of the scheduled transfer date for the Asset to be Disposed of and as of the scheduled date of Acquisition
for the Asset to be Acquired.

January 27, 2022
After asset replacement alreadyannounced

After asset replacement
announced this time

83.7%

83.8%

Greater Tokyo Area

3.

Summary of Assets to Be Acquired/Disposed of(1)Summary of Asset to Be Acquired
PRIME URBAN Higashi Nakano Court＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・The Asset is an eight-minute walk from Higashi-Nakano Station on the JR Chuo and Sobu Lines, a twelveminute walk from Higashi-Nakano Station on the Toei Oedo Line and an eight-minute walk from Ochiai Stationon the Tokyo Metro Tozai Line. Accordingly, with access to three stations on several lines, the Asset is excellent
for convenient transportation to business and commercial areas such as Shinjuku, Roppongi, Iidabashi andOtemachi.
・ The Asset is highly convenient for daily living because there are supermarkets and other stores in thesurrounding area and various retail facilities near Higashi-Nakano and Ochiai Stations.
・The unit plan of the Asset consists of a studio or studio with kitchenette type (25.24 to 27.67 m2), a onebedroom type (44.31 to 46.42 m2), a two-bedroom type (55.41 to 68.83 m2) and a three-bedroom type (82.92
to 104.54 m2). Therefore, stable demand can be expected from single person, DINKs and family households
who commute to major business areas in Tokyo.

<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)
Leasable Unit
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building

PRIME URBAN Higashi Nakano Court
Real estate
4-9-5, 4-9-4 Kita-Shinjuku, Shinjuku Ward, Tokyo
4-9-12 Kita-Shinjuku, Shinjuku Ward, Tokyo
8-minute walk from Higashi-Nakano Station on the JR Chuo and Sobu Lines
12-minute walk from Higashi-Nakano Station on the Toei Oedo Line
8-minute walk from Ochiai Station on the Tokyo Metro Tozai Line
April 20, 2009
Apartment
Ten-floor steel reinforced concrete structure with flat roof
173
Kume Sekkei Co., Ltd.
Consortium of Toda Corporation and Keio Construction Co., Ltd.
The Building Center of Japan
3,025.78 m2
9,235.40 m2
Ownership
Ownership- 3 -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
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

80% (Note 2)
316.4%(Note 3)
None
Mitsui Fudosan Residential Lease Co., Ltd.
Mitsui Fudosan Residential Lease Co., Ltd.
Pass through5.87% (Based on the Earthquake PML Appraisal Report as of February 2022 by
Sompo Risk Management Inc.)－¥7,020 million¥8,020 million (Based on the capitalization approach as of February 1, 2022)(Appraiser: Daiwa Real Estate Appraisal Co., Ltd.)¥309 million

Leasing Status (As of February 28, 2022) (Note 8)
Total Number of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 9)1¥349 million (Including common area management fee)
¥493 million
98.7%
8,253.56 m2
8,361.15 m2
January2018
96.4%

January2019
98.8%(Note 1)January2020
97.5%

January2021
97.9%

January2022
96.5%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Floor Area
While the building coverage ratio for the category I residential zone is 60% in principle, the applied building coverage
ratio is 80% because the Asset is a certified fireproof building in a fire prevention zone and is located at a corner
designated by the Specified Administrative Agency.
(Note 3) Building Coverage Ratio
The designated floor area ratio for the land of the Asset is the category I residential zone of 400%. However, a value
multiplied by the ratio stipulated for each specific-use district (forty-hundredths) is applied to the road on the westernside (7.91m) because it falls under road width restrictions.
(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 “pass-through” is a scheme
where the master lease company pays the same amount as the rent based on the lease agreement with end tenants.
(Note 6) PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is
expected to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated periodof use (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
(Note 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith February 1, 2022 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a
block, and then the lessee 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 statedin the lease agreements by the total number of end tenants as of February 28, 2022, actually leasing space in thebuilding of the Asset (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 andwarehouse fees.
“ Security Deposits” indicates the amount of security and other deposits specified in the aforementioned leaseagreements (rounded down to the nearest million yen).

- 4 -“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 28, 2022, by Total Leasable Floor
Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of February 28, 2022.
“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 28, 2022 (if the common area, etc. is leased, the floor
space thereof is included).
(Note 9) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller.

(2)Summary of Asset to Be Disposed of
NRE Higashi-nihonbashi Building＜Reasons for the Disposition＞
In addition to the acquisition of an excellent property through mutual trading, the Fund decided on the
Disposition because it judged that securing profits on sale and improving the portfolio quality with the Disposition
will contribute to investors’ interests over the medium to long term.

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

Area (Note 1)

Floor Area

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 4)

Notes

Acquisition Price
Scheduled Transfer PriceBook Value(Note 5)
Difference

NRE Higashi-nihonbashi Building
Real estate
1-118-1 Higashi-nihonbashi, Chuo-ku, Tokyo
1-1-7 Higashi-nihonbashi, Chuo-ku, Tokyo
2-minute walk from Higashi-nihonbashi Station on the Toei Asakusa
Line
3-minute walk from Bakuro-yokoyama Station on the Toei Shinjuku Line
8-minute walk from Bakurocho Station on the JR Sobu Line
September 28, 1990
Office and warehouse
Nine-floor steel framed steel reinforced concrete structure with flat roof
and one underground level
918.56 m2 (Note 2)
6,704.53 m2
Ownership
Ownership
100% (Note 3)
700%
None
Nomura Real Estate Development Co., Ltd.
4.95% (Based on the Earthquake PML Appraisal Report as of
September 2021 by Sompo Risk Management Inc.)・ The property management companies, Nomura Real Estate
Development Co., Ltd., is considered a related party under Investment
Trust Act.
・ Tokyo has a sectional surface right on a portion of the land of theAsset as the superficiary for the purpose of owning subway facilities.
¥3,570 million¥4,520 million¥3,657 million¥862 million- 5 -Appraisal Value and Method¥4,350 million (Based on the capitalization approach as of August 31,2021) (Appraiser: Japan Real Estate Institute)¥193 million

Appraisal NOI (Note 6)
Leasing Status (As of March 8, 2022) (Note 7)
Total Number of Tenants
8
Total Rental Income(Annual)¥269 million (Including common area management fee)
Security Deposits¥227 million
Occupancy Rate
100.0%
Total Leased Floor Space
4,554.98 m2
Total Leasable Floor Space
4,554.98 m2
January
January
January
January
Historical Occupancy Rates
2018
2019
2020
2021
(Note 9)100.0%

100.0%

100.0%

100.0%

January2022
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) Currently, approx.. 57.92 sq. meters along the southern border of the Property site is being used as a passageway.
(Note 3) Building Coverage Ratio
The Asset is located in a commercial zone where the building coverage ratio is 80% in principle. However, because the Assetis a certified fireproof building in a fire prevention zone, the applied coverage ratio is 100%.
(Note 4) PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
(Note 5) Book Value
Anticipated book value at the date of disposition.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with
August 31, 2021 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Property.
“Total Rental Income” is the amount obtained by multiplying the monthly rent stated in the lease agreements by the total
number of end tenants actually leasing space in the building of the Property by 12 (truncated at the nearest million yen).
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

“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 today (if the common area, etc. is leased, the floor
space thereof is included).

- 6 -4. Summary of the Seller of the Asset to be Acquired and the Purchaser of the Asset to be
Disposed of
The seller of the Asset to be acquired and the purchaser of the Asset to be disposed of (collectively the“Counterparty”) is a public limited company in Japan, and the details are undisclosed because a consent has
not been obtained from the company. Note that, as of today, neither the Fund nor the Asset Management
Company has any notable capital, personnel or transactional relationship with the Counterparty and theCounterparty is not a related party of the Fund or the Asset Management Company.

5. Status of Owner of the Asset to be Acquired
The Asset is not acquired by any party having a relationship of special interest with the Fund or the AssetManagement Company.
6. Transactions with Related Parties
There are no transactions with related parties.

7. Form of Payment, etc.
Regarding the Acquisition, the Fund will complete settlement by a lump sum payment on the date ofacquisition by paying the agreed price for the property in full to the seller using cash on hand.
In addition, regarding the Disposition, on each scheduled sale date, the Fund will receive from the transferee
the purchase price according to the quasi co-ownership of the property to be sold. The Fund plans to use the cash
obtained through the sale of the property for portfolio management, including the repayment of borrowings andthe acquisition of properties.

8. Schedule for the Transaction
March 8, 2022

Conclusion of purchase and sale agreements for the acquisition of the Asset
Conclusion of purchase and sale agreements for the disposition of the Asset

March 15, 2022

Acquisition of the Asset to be Acquired

September 15, 2022

Disposition of the Asset to be Disposed of (quasi co-ownership of 50%)

March 15, 2023

Disposition of the Asset to be Disposed of (quasi co-ownership of 50%)

9. Outlook
There is currently no revision to the forecast for the fiscal period ending August 31, 2022 (March 1, 2022 toAugust 31, 2022) because the impact of the Transaction on the management status of the entire portfolio is minimal.
Furthermore, a profit on sale is expected to be realized in the fiscal periods ending February 28, 2023 (September
1, 2022 to February 28, 2023) and August 31, 2023 (March 1, 2023 to August 31, 2023). The profit on sale will bedirected to dividends as part of distributions or internal reserves, in consideration of stabilizing distributions overthe medium to long term.

- 7 -10. Appraisal Summary(1)Asset to Be Acquired
Property Name

PRIME URBAN Higashi Nakano Court

Appraisal Value¥8,020,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

February 1, 2022
(Yen)

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

Amount orPercentage

Grounds

8,020,000,000

8,230,000,000
381,230,576
405,948,114
24,717,538

13,087,732

Calculated based in part on the management bylaw
and the management agreement.
Calculated based on the balance results, etc.
Including restoration costs and building improvement
fees calculated with consideration given to building
age and similar cases, etc., by referencing theEngineering Report (ER).
Calculated based on the PM/BM service term sheet.

8,687,052

Calculated based on the PM/BM service term sheet.

20,087,400

Calculated based on materials for fiscal 2021.
Calculated based on relevant insurance premium ratetables.
Calculated based on the balance results, etc.

18,084,756
3,337,699
7,926,385

Advertisement for Leasing
Costs, etc.
Taxes
Insurance Premium

561,800

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

303,400

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 in part on market rent levels.
Calculated based on the standard stable medium- tolong-term vacancy rate.

72,076,224

Repair Costs

Property Management Fees

An income based value was calculated using thecapitalization approach by using the value calculatedusing the discounted cash flow approach as thebaseline and evaluating it using the direct
capitalization approach.
Calculated by reducing a standard level of net cash
flow by the capitalization rate.

309,154,352
415,945
13,367,833

Calculated based on an investment yield of 1.0%.
Calculated with reference to the Engineering Report(ER), the building’s age, amounts recorded at similar
properties and other factors.

296,202,464

3.6%

Calculated based mainly on the yields of similar
condominiums for rent, with reference to thecharacteristics of the area surrounding the property,
the property’s particular characteristics and otherfactors.

7,930,000,000- 8 -Discount Rate

3.4%

Terminal Capitalization Rate
Cost Approach Price

3.8%

Calculated with reference to the individual risks forthe property and other factors.
Calculated based on the capitalization rate, withconsideration given to levels of future uncertainty andother factors.

7,830,000,000

Ratio of Land
Ratio of Building

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

79.5%
20.5%
The target real estate is located approximately 610 m southeast of Ochiai Station on
the Tokyo Metro Tozai Line. There are also many stores and facilities convenient fordaily life around Higashi-Nakano Station on the JR Chuo and Sobu Lines. The target
condominium was completed in 2009 and has been maintained in generally goodcondition. It is also equipped with facilities which are comparable to other competing
properties recently built, and can fully meet the needs of the target tenants, namely
single persons, DINKs and family households. From the above factors, the Fundjudged that the target real estate has a standard level of competitiveness within thesame supply and demand range in the rental market.
Judging from the competitiveness of the target real estate in the rental market as
stated above, relatively stable cash flow can be expected by properly operating andmanaging the property. Considering all of the above in a comprehensive manner, theFund judged that the property has a standard level of competitiveness in the realestate trading market.

(2)Asset to Be Disposed of
Property Name
Appraisal Value
Appraiser
Appraisal Date

NRE Higashi-nihonbashi Building¥4,350,000,000
Japan Real Estate Institute
August 31, 2021
(Yen)

Item
Capitalization Approach Price
Price
Calculatedbythe
DirectCapitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to Vacancies,etc.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

Amount orPercentage
4,350,000,000
4,420,000,000
295,384,000
16,740,000

Costs, etc.

Calculated based on appropriate rent levels
recognized as stable over the medium to long term.
Calculated assuming a stable medium- to long-term
occupancy rate.

84,911,000
30,000,000
16,300,000

7,844,000

Advertisement for Leasing

Calculated taking into account the Capitalization
Approach Price determined using both the direct
capitalization approach and the discounted cash
flow approach.
Calculated by reducing the stable medium- to longterm net cash flow by the capitalization rate.

278,644,000

Repair Costs

Property Management Fees

Grounds

5,573,000
1,934,000- 9 -Calculated based on past actual expenses and costs
at similar properties.
Calculated based on past actual expenses withconsideration for the occupancy rate of the leased
portion of the property.
Calculated with consideration for costs based on
past actual results and the average annual
maintenance and renewal fees given in theengineering report.
Calculated based on the current fee rate and fee
rates for similar properties.
Calculated as an annualized amount based onassumed tenant turnover rates.

Taxes

22,757,000

Insurance Premium

303,000

Other Expenses

200,000(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

193,733,000
2,178,000

Calculated based on an investment yield of 1.0%.

19,220,000

Calculated based on the assumption of average
allocations each period, capital expenditure levels at
similar properties, the building’s age and the averageannual maintenance and renewal fees given in theengineering report.

176,691,000
4.0％

Price Calculated by the Discounted Cash
Flow Approach

4,280,000,000

Discount Rate
3.8％
Terminal Capitalization Rate
4.2％

Cost Approach Price
Ratio of Land
Ratio of Building

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated based on standard taxable values in the2021 tax year.
Calculated with reference to the premium based on
the insurance contract and the premium rates ofsimilar properties.
Calculated the residents’ association membershipfees, etc. as other expenses,

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties
andtheproperty’s
specific
characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment in similarbuildings, the probable future movement of theyield on investment, risks of the property as aninvestment, general forecasts of the economic
growth rate and price trends in real estate and rents.

3,880,000,000
86.0％
14.0％
The Asset is located in the area surrounding Higashi-Nihonbashi Station, which isone of the areas comprising a part of the eastern outskirts of the three central wards.
Although the location is slightly inferior to the central parts of the three wards, it isin one of the areas where stable demand for offices will continue to be expected.
This is because the Asset is accessible, not only from Higashi-Nihonbashi Station on
the Toei Asakusa Line, but also from Bakuro-Yokoyama Station on the Toei Shinjuku
Line and Bakurocho Station on the JR Sobu Line. It is in an excellent location offering
convenient transportation to various places in central Tokyo. Further, there has beena textile wholesale district in the adjacent area for a long time. Direct access to both
Haneda and Narita Airports is also possible from the nearest Higashi-Nihonbashi
Station on the Toei Asakusa Line, meaning that the Asset possesses location
characteristics with certain advantages of air travel. The property was built in 1990
and is of medium quality compared to other buildings constructed around the sametime. In addition, the property has reasonable competitiveness for reasons including
the renewal works conducted in 2007.
In view of the above factors, the appraisal value was determined.

- 10 -

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/- 11 -

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

Greater Tokyo
Area (Note 1)

Sector(Anticipated) Total
Other Areas

Acquisition Price(by Sector)

Investment Ratio(%) (Note 2)

Office403,585

69,610473,195

43.5

Retail109,888

64,155174,044

16.0

Logistics

214,7223,460

218,182

20.1

Residential

178,289

33,328211,617

19.4

Hotels

―

6,250

6,250

0.6

Others

4,900

―

4,900

0.5

(Anticipated)
Total Acquisition Price(by Area)

911,385

176,803

1,088,189

100.0

83.8

16.2

100.0

Investment Ratio (%)(Note 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 andtheir 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 Access Map of the Asset to be Acquired
PRIME URBAN Higashi Nakano Court