[For Translation Purposes Only]
June 27, 2017

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.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Ken Okada
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Property Disposition
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced the decision made today by
Nomura Real Estate Asset management Co., Ltd., a licensed investment trust management company retained by the Fundto provide asset management services, that it will dispose assets (the “Disposition”), as described below.

1．Summary of Assets Scheduled to be Disposed

Property name

Merad Owada(Scheduled)
Date ofagreement

Use(Scheduled)
Date ofdisposition

RetailTransferee(Scheduled)Transfer price(¥ million)(Note 1)

Book value(¥ million)(Note 2)

Undisclosed(Note 4)

7,380

6,510

Ota Nitta Logistics Center
Ota Higashi-Shinmachi
Logistics Center
Ota Kiyohara Logistics
CenterDifference(¥ million)(Note 3)

869

3,081
Logistics
facility

June 29,2017

June 29,
2017

Undisclosed(Note 4)

7,304
(Note 5)

Chiyodamachi Logistics
Center

1,958
578

1,372
(Note 5)

314
Total

14,684

12,4422,241(Note 1) The amount excluding property taxes, city planning taxes, consumption taxes and local consumption taxes is indicated.
(Note 2) Anticipated Book Value as of the time of disposition is indicated.
(Note 3) This is only a reference value which is the difference between the scheduled transfer price and anticipated book value, therefore, it is different
from gain or loss on sale.
(Note 4) As the Fund has not obtained consent for disclosure from the Transferee, this information is omitted.
(Note 5) Disposition of Ota Nitta Logistics Center, Ota Higashi-Shinmachi Logistics Center, Ota Kiyohara Logistics Center and Chiyodamachi Logistics
Center is disposition based on a single sale and purchase agreement concluded with a single transferee.

1(Note 6) Each asset to be disposed holds beneficial interests in trusts in which real estate properties are the principal trust assets.

The assets to be transferred will be referred to, individually as the “Asset” or collectively as the “Assets” hereinafter.
2．Reason for Disposition
In accordance with the Medium- to Long-term Management Strategy announced in November 2015, Nomura MasterFund designated the next three years as its Quality Phase and has been implementing various related measures
One key measure is Strategic Property Replacement (SPR), which is aimed at improving the quality of our portfolio.
The Fund has decided to sell these properties as part of this measure and in light of comprehensive consideration ofsuch factors as the portfolio asset mix and the possibility of a decline in the competitiveness of the properties due totheir aging.
Main reasons for disposition of the assets to be disposed are as follows.
(1) Merad Owada
The Fund has decided on the disposition of the Asset taking into account the medium- to long-term profitabilityof the entire portfolio as the retail business has become more competitive recently with openings of retailfacilities in the surrounding area and the repair cost, etc. is expected to increase in the future as the building
continues to age.
(2) Ota Nitta Logistics Center, Ota Higashi-Shinmachi Logistics Center, Ota Kiyohara Logistics Center andChiyodamachi Logistics Center
The Fund has decided on the disposition of the Asset after comprehensively considering investment criteria forlogistics facilities set forth in its asset management guidelines as well as the facility specifications, etc. of each
asset.
3．Property Summary of the Assets to be Disposed(1) Merad Owada
Property name
Type of asset
Trustee
Trust term
Location(Note 1)

Registry
StreetAccessType of ownershipLand (Note 1)

Land

Building coverage ratio
Floor area ratio
Type of ownership
Use (Note 1)
Building

Completion date
(Note 1)
Floor area (Note 1)
Structure (Note1)

Acquisition priceTransfer priceBook value (Note 4)

Merad Owada
Trust beneficial interest
Mizuho Trust & Banking Co., Ltd.
(Retail) From March 29, 2001 to June 30, 2023
(Logistics) From September 28, 2007 to June 30, 2023
2-6-3 Owada, Nishiyodogawa-ku, Osaka-shi, Osaka and five other lots
2-2-43 Owada, Nishiyodogawa-ku, Osaka-shi, Osaka
13 minutes on foot from Himejima Station on the Hanshin Main Line
Ownership(Retail) 16,768.48 m2(Logistics) 11,667.04 m2
70% (Note 2)
300% / 200% (Note 3)
Ownership(Retail) Retail(Logistics) Cargo handling facility(Retail) September 9, 1994
(Logistics) July 25, 2000
(Retail) 14,899.16 m2(Logistics) 4,949.18 m2(Retail) S with flat roof, 3F(Logistics) S with flat roof, 2F¥6,640 million¥7,380 million¥6,510 million

2Appraisal
value

Difference
Appraiser
Appraisal value
Appraisal date

¥869 million
Daiwa Real Estate Appraisal Co., Ltd.
7,340 million
September 28, 2017

Leasing status (As of June 27,2017) (Note 5)
Total number of tenants
1
Total rental income
Undisclosed
Security deposits
Undisclosed
Occupancy rate
100.0%
Total leased floor space(Retail) 14,941.54 m2 / (Logistics) 5,856.50 m2
Total leasable floor space (Retail) 14,941.54 m2 / (Logistics) 5,856.50 m2
Occupancy rates in thepast

February 2013

February 2014

February 2015

February 2016

February 2017100.0%

100.0%

100.0%

100.0%

100.0%(Note 1) Location and other Items
Location (registry), Land, Use, Completion Date, and Structure are based on the information in the real estate registry.
(Note 2) Building coverage ratio
The Property is located in a quasi-industrial district and an industrial district where the building coverage ratio is 60% in principle. As theProperty is on a corner lot, however, an increased ratio of 70% applies.
(Note 3) Floor area ratio
For the land of the Property, the floor area ratio is 300% for the area within 25 meters from the boundary line of the road on the northwesternside, which belongs to a quasi-industrial district, and 200% for the area farther than 25 meters from the boundary line of the road on thenorthwestern side, which belongs to an industrial district and exclusively medium-high residential district (category I). For the whole area, theweighted-average percentage is applied in accordance with the space of the respective areas.
(Note 4) Book value
Anticipated Book Value as of the time of disposition is indicated.
(Note 5) Leasing status“Total number of tenants” is the total number of end tenants actually leasing the building of the Property“Total number of tenants” and “Security deposits” is not disclosed as permission from the end tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

(2) Ota Nitta Logistics Center
Property name
Type of asset
Trustee
Trust term
Registry
Location(Note 1)StreetAccessType of ownershipLand (Note 1)
Land
Building coverage ratio
Floor area ratio
Type of ownership
Use (Note 1)
Completion date
Building(Note 1)
Floor area (Note 1)
Structure (Note1)
Acquisition priceTransfer priceBook value (Note 5)
Difference
Appraiser
Appraisal
Appraisal value
value
Appraisal date

Ota Nitta Logistics Center
Trust beneficial interest
Mitsubishi UFJ Trust and Banking Corporation
December 27, 2006 to June 30, 2023
150-2 Nitta Kayacho, Ota-shi, Gunma and 6 other lots
150-2 Nitta Kayacho, Ota-shi, Gunma
4.5 km from Yabuzuka Station on the Tobu Kiryu Line
Ownership
39,604.26 m2
70% (Note 2)
200% / 400% (Note 3)
Ownership
Storage
March 27, 2003
42,324.75 m2
S with galvanized steel sheet roofing, 3F¥3,430 million
Undisclosed (Note 4)¥3,081 million
Undisclosed (Note 4)
Daiwa Real Estate Appraisal Co., Ltd.
¥3,750 million
February 28, 20173

Leasing Status (As of June 27,2017) (Note 6)
Total number of tenants
1
Total rental income
Undisclosed
Security deposits
Undisclosed
Occupancy rate
100%
Total leased floor space
42,369.51m2
Total leasable floor space 42,369.51m2
Occupancy rates in thepast

February 2013

February 2014

February 2015

February 2016

February 2017

100%

100%

100%

100%

100%

(Note 1)Location and other Items
Location (registry), Land, Use, Completion Date, and Structure are based on the information in the real estate registry.
(Note 2)Building Coverage ratio
Property is located in an exclusive industrial district where the building coverage ratio is 60% in principle. As the building is on a corner lot,
however, an increased ratio of 70% applies.
(Note 3)Floor area ratio
For the land of the property, the floor area ratio is 200% for the exclusive industrial district and 400% for city planning areas that have not been
designated as either urbanization promotion areas or urbanization control areas. For the whole area, the weighted-average percentage is appliedin accordance with the space of the respective areas.
(Note 4)(Scheduled) transfer priceAs the Fund has not obtained consent for disclosure from the Transferee, this information is omitted. Accordingly, Difference is not disclosed.
(Note 5) Book value
Anticipated Book Value as of the time of disposition is indicated.
(Note 6) Leasing status“Total number of tenants” is the total number of end tenants actually leasing the building of the Property“Total number of tenants” and “Security deposits” is not disclosed as permission from the end tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

(3) Ota Higashi-Shinmachi Logistics Center
Property name
Type of asset
Trustee
Trust term
Registry
Location(Note 1)StreetAccessType of ownershipLand (Note 1)
Land
Building coverage ratio
Floor area ratio
Type of ownership
Use (Note 1)
Completion date
Building(Note 1)
Floor area (Note 1)
Structure (Note1)
Acquisition priceTransfer priceBook value (Note 4)
Difference
Appraiser
Appraisal
Appraisal value
value
Appraisal date

Ota Higashi-Shinmachi Logistics Center
Trust beneficial interest
Mitsubishi UFJ Trust and Banking Corporation
From December 19, 2008 to June 30, 2023
837-1 Higashi-Shinmachi, Ota City, Gunma
837-1 Higashi-Shinmachi, Ota City, Gunma
2.5 km from Yashuyamabe Station on the Tobu Isesaki Line
Ownership
22,428.97 m2
70% (Note 2)
200%
Ownership
Storage
August 30, 2008
23,584.72 m2
S with galvanized alloy steel sheet roofing, 3F¥2,170 million
Undisclosed (Note 3)¥1,958 million
Undisclosed (Note 3)
Daiwa Real Estate Appraisal Co., Ltd.
2,450 million
February 28, 2017

Leasing Status (As of June 27,2017) (Note 5)
Total number of tenants
1
Total rental income
Undisclosed
Security deposits
Undisclosed

4Occupancy rate
Total leased floor space
Total leasable floor space100%
23,584.72m2
23,584.72m2

Occupancy rates in thepast

February 2013

February 2014

February 2015

February 2016

February 2017

100%

100%

100%

100%

100%

(Note 1)Location and other Items
Location (registry), Land, Use, Completion Date, and Structure are based on the information in the real estate registry.
(Note 2)Building Coverage ratio
Property is located in an exclusive industrial district where the building coverage ratio is 60% in principle. As the building is on a corner lot,
however, an increased ratio of 70% applies.
(Note 3)(Scheduled) transfer priceAs the Fund has not obtained consent for disclosure from the Transferee, this information is omitted. Accordingly, Difference is not disclosed.
(Note 4) Book value
Anticipated Book Value as of the time of disposition is indicated.
(Note 5) Leasing status“Total number of tenants” is the total number of end tenants actually leasing the building of the Property“Total number of tenants” and “Security deposits” is not disclosed as permission from the end tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

(4) Ota Kiyohara Logistics Center
Property name
Type of asset
Trustee
Trust term
Registry
Location(Note 1)StreetAccessType of ownershipLand (Note 1)
Land
Building coverage
ratio
Floor area ratio
Type of ownership
Use (Note 1)
Completion date
Building(Note 1)
Floor area (Note 1)
Structure (Note1)
Acquisition priceTransfer priceBook value (Note 4)
Difference
Appraiser
Appraisal
Appraisal value
value
Appraisal date

Ota Kiyohara Logistics Center
Trust beneficial interest
Mitsubishi UFJ Trust and Banking Corporation
From December 27, 2006 to June 30, 2023
10-1 Kiyohara-cho, Ota-shi, Gunma
10-1 Kiyohara-cho, Ota-shi, Gunma
3.2 km from Yamamae Station on the JR Ryomo Line
Ownership
4,950.01 m2
70% (Note 2)
200%
Ownership
Storage
May 1, 2004
9,048.39 m2
S with galvanized steel sheet roofing, 3F¥650 million
Undisclosed (Note 3)¥578 million
Undisclosed (Note 3)
Daiwa Real Estate Appraisal Co., Ltd.
¥728 million
February 28, 2017

Leasing Status (As of June 27,2017) (Note 5)
Total number of tenants
1
Total rental income
Undisclosed
Security deposits
Undisclosed
Occupancy rate
100%
Total leased floor space
9,397.38m2
Total leasable floor space 9,397.38m2
Occupancy rates in thepast

February 2013

February 2014

February 2015

February 2016

February 2017

100%

100%

100%

100%

100%

(Note 1)Location and other Items

5

Location (registry), Land, Use, Completion Date, and Structure are based on the information in the real estate registry.
(Note 2)Building coverage ratio
The Property is located in a quasi-industrial district where the building coverage ratio is 60% in principle. As the Property is on a corner lot,
however, an increased ratio of 70% applies.
(Note 3)(Scheduled) transfer priceAs the Fund has not obtained consent for disclosure from the Transferee, this information is omitted. Accordingly, Difference is not disclosed.
(Note 4) Book value
Anticipated Book Value as of the time of disposition is indicated.
(Note 5) Leasing status“Total number of tenants” is the total number of end tenants actually leasing the building of the Property“Total number of tenants” and “Security deposits” is not disclosed as permission from the end tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

(5) Chiyodamachi Logistics Center
Property name
Type of asset
Trustee
Trust term
Location(Note 1)

Registry

StreetAccessType of ownershipLand (Note 1)
Land
Building coverage ratio
Floor area ratio
Type of ownership
Use (Note 1)
Completion date
Building(Note 1)
Floor area (Note 1)
Structure (Note1)
Acquisition priceTransfer priceBook value (Note 4)
Difference
Appraiser
Appraisal
Appraisal value
value
Appraisal date

Chiyodamachi Logistics Center
Trust beneficial interest
Mitsubishi UFJ Trust and Banking Corporation
From September 27, 2006 to June 30, 2023
3012-2 Aza Yokonehara, Oaza Maigi, Chiyodamachi, Oura-gun, Gunma and16 other lots
3012-2 Oaza Maigi, Chiyodamachi, Oura-gun, Gunma
4.0 km from Honnakano Station on the Tobu Koizumi Line
Ownership
6,236.13 m2
60% (Note 2)
200%
Ownership
Storage
January 1, 1999
4,584.54 m2
S with galvanized steel sheet roofing, 3F¥330 million
Undisclosed (Note 3)¥314 million
Undisclosed (Note 3)
Daiwa Real Estate Appraisal Co., Ltd.
¥367 million
February 28, 2017

Leasing Status (As of June 27,2017) (Note 5)
Total number of tenants
1
Total rental income
Undisclosed
Security deposits
Undisclosed
Occupancy rate
100%
Total leased floor space
4,592.00m2
Total leasable floor space 4,592.00m2
Occupancy rates in thepast

February 2013

February 2014

February 2015

February 2016

February 2017

100%

100%

100%

100%

100%

(Note 1)Location and other Items
Location (registry), Land, Use, Completion Date, and Structure are based on the information in the real estate registry.
(Note 2)Building Coverage ratio
Property is located in an exclusive industrial district where the building coverage ratio is 50% in principle. As the building is on a corner lot,
however, an increased ratio of 60% applies.
(Note 3)(Scheduled) transfer priceAs the Fund has not obtained consent for disclosure from the Transferee, this information is omitted. Accordingly, Difference is not disclosed.
(Note 4) Book value

6Anticipated Book Value as of the time of disposition is indicated.
(Note 5) Leasing status“Total number of tenants” is the total number of end tenants actually leasing the building of the Property“Total number of tenants” and “Security deposits” is not disclosed as permission from the end tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space leased to end tenants.

7

4. Transferee Profile(1) Merad Owada
As the Fund has not obtained consent from the Transferee, which is a Japanese general corporation, this informationis omitted. The Transferee is not a related party under the Law Concerning Investment Trusts and Investment
Corporations (Investment Trust Law) of the asset management company.
(2) Ota Nitta Logistics Center, Ota Higashi-Shinmachi Logistics Center, Ota Kiyohara Logistics Center andChiyodamachi Logistics Center
As the Fund has not obtained consent from the Transferee, which is a Japanese special purpose company, thisinformation is omitted. The Transferee is not a related party under the Law Concerning Investment Trusts andInvestment Corporations (Investment Trust Law) of the asset management company.
5. Transaction with Related Parties
There is no special relationship between the said company and the Fund or asset management company for thisdisposition.
6. Brokerage ProfileNo brokers were involved in the Disposition.
7. Form of Payment, etc.
On the date of the transfer, Nomura Master Fund will receive the entire sale price of the Assets to be disposed in a
lump-sum payment from the Transferee. In addition, the disposition of these assets involved an increase in cash on
hand. Nomura Master Fund plans to allocate funds procured through the disposition to repayment of debt, asset
replacement and other activities for portfolio management.
8. Schedule for Disposition (plan)
June 29, 2017Concluded a sales contract related to the disposition of the Assets and disposition of theAssets (delivered the trust beneficiary interests).

9. Forecasts of Financial Results
Although the Fund expects to generate gain on the Disposition, it intends to hold the said amount as internal
reserves for stable investment and dividends in the future. As the impact of the Disposition on the financial results
for the fiscal period ending August 2017 (March 1, 2017 to August 31, 2017) is minimal, there is no revision to theforecast.

810. Appraisal Summary
Property name

Merad Owada

Appraisal value¥7,340,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal dateFebruary 28, 2017
(Amount：¥)

Item

Amount orpercentage

Capitalization approach price

7,340,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.

Grounds

7,350,000,000
518,018,880
518,018,880－(2) Operating expenses
MaintenanceUtilities costs

56,207,120－－

Repair costs

3,656,000

Property management fees

3,024,000

Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

－
48,346,900
680,220500,000

The capitalization approach was used to estimate the income-basedvalue, with the base value calculated using the discounted cash flow
approach and verified using the direct capitalization approach.
Estimated by reducing a standard level of net cash flow by thecapitalization rate.
Estimated based in part on market rent levels
Estimated based on the standard medium- to long-term vacancy
rate.
Borne by tenant
Borne by tenant
Repair costs for the building were estimated with reference to theEngineering Report, the building’s age, costs recorded at similar
properties and other factors.
Estimated based on the property management agreement.
Not recorded as tenant is obliged to restore the property to its
original state and tenant replacement is not assumed.
Estimated based on materials for fiscal 2016
Estimated based on relevant insurance premium rate tables
Estimated based in part on past levels of income and costs

461,811,760
2,740,000

Assumed investment yield of 1.0%.

(5) Capital Expenditure Reserve

23,723,900

Estimated with reference to the Engineering Report, the building’s
age, amounts recorded at similar properties and other factors.

(6) Net Cash Flow (NCF = (3)+(4)-(5))

440,827,860(7) Capitalization rate

6.0%

Price calculated by the Discounted Cash
Flow Approach
Discount rate
Terminal capitalization rate

Matters noted in reconciliation ofindicated value and determination ofappraisal value

7,340,000,000
5.8%
6.2%

Cost Approach Price
Ratio of land
Ratio of building

Estimated based mainly on the yield of similar propertytransactions, with reference to the characteristics of the areasurrounding the property, the property’s particular characteristics
and other factors.

6,200,000,000
83.2%
16.8%
―

9

Estimated with reference to the individual risks for the property
and other factors
Estimated based on the capitalization rate, with consideration given
to levels of future uncertainty.

Property nameOta Nitta Logistics Center

Appraisal value¥3,750,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal dateFebruary 28, 2017
(Amount：¥)

Item

Amount orpercentage

Capitalization approach price

3,750,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.

Grounds

3,760,000,000
271,151,100
271,151,100－(2) Operating expenses
MaintenanceUtilities costs

31,585,711－－

Repair costs

3,202,080

Property management fees

2,982,662

Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(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

18,692,900
746,817
5,961,252

Terminal capitalization rate

Borne by tenant
Borne by tenant
Repair costs for the building were estimated with reference to theEngineering Report, the building’s age, costs recorded at similar
properties and other factors.
Estimated based on the property management agreement.
Not recorded as tenant is obliged to restore the property to its
original state and tenant replacement is not assumed.
Estimated based on materials for fiscal 2016
Estimated based on relevant insurance premium rate tables
Estimated based in part on past levels of income and costs

1,319,250

Assumed investment yield of 1.0%.

7,791,728

Estimated with reference to the Engineering Report, the building’s
age, amounts recorded at similar properties and other factors.

233,092,911
Estimated based mainly on the yield of similar propertytransactions, with reference to the characteristics of the areasurrounding the property, the property’s particular characteristics
and other factors.

3,740,000,000
6.0%
6.4%

Cost Approach Price
Ratio of land
Ratio of building

Estimated based in part on market rent levels
Estimated based on the standard medium- to long-term vacancy
rate.

239,565,389

6.2%

Price calculated by the Discounted Cash
Flow Approach
Discount rate

Matters noted in reconciliation ofindicated value and determination ofappraisal value－

The capitalization approach was used to estimate the income-basedvalue, with the base value calculated using the discounted cash flow
approach and verified using the direct capitalization approach.
Estimated by reducing a standard level of net cash flow by thecapitalization rate.

2,360,000,000
29.1%
70.9%
―

10

Estimated with reference to the individual risks for the property
and other factors
Estimated based on the capitalization rate, with consideration given
to levels of future uncertainty.

Property nameOta Higashi-Shinmachi Logistics Center

Appraisal value¥2,450,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal dateFebruary 28, 2017
(Amount：¥)

Item

Amount orpercentage

Capitalization approach price2,450,000,000

Price calculated by the direct capitalization
approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.

Grounds

2,460,000,000
171,613,500
171,613,500－(2) Operating expenses
MaintenanceUtilities costs

17,211,837－－

Repair costs

2,035,680

Property management fees

2,400,000

Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve

12,184,700
464,377
127,080(7) Capitalization rate

858,000

Terminal capitalization rate

Borne by tenant
Repair costs for the building were estimated with reference to theEngineering Report, the building’s age, costs recorded at similar
properties and other factors.
Estimated based on the property management agreement.
Not recorded as tenant is obliged to restore the property to its
original state and tenant replacement is not assumed.
Estimated based on materials for fiscal 2016
Estimated based on relevant insurance premium rate tables
Estimated based in part on past levels of income and costs

Assumed investment yield of 1.0%.
Estimated with reference to the Engineering Report, the building’s
age, amounts recorded at similar properties and other factors.
Estimated based mainly on the yield of similar propertytransactions, with reference to the characteristics of the areasurrounding the property, the property’s particular characteristics
and other factors.

2,450,000,000
5.9%
6.3%

Cost Approach Price
Ratio of land
Ratio of building

Borne by tenant

150,306,175
6.1%

Price calculated by the Discounted Cash
Flow Approach
Discount rate

Estimated based in part on market rent levels
Estimated based on the standard medium- to long-term vacancy
rate.

154,401,663

4,953,488(6) Net Cash Flow (NCF = (3)+(4)-(5))

Matters noted in reconciliation ofindicated value and determination ofappraisal value－

The capitalization approach was used to estimate the income-basedvalue, with the base value calculated using the discounted cash flow
approach and verified using the direct capitalization approach.
Estimated by reducing a standard level of net cash flow by thecapitalization rate.

1,930,000,000
27.9%
72.1%
―

11

Estimated with reference to the individual risks for the property
and other factors
Estimated based on the capitalization rate, with consideration given
to levels of future uncertainty.

Property name

Ota Kiyohara Logistics Center

Appraisal value¥728,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal dateFebruary 28, 2017
(Amount：¥)
Amount orpercentage

Item
Capitalization approach price

Grounds

728,000,000

Pricecalculated by the direct
capitalization approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.

728,000,000
54,013,500
54,013,500－(2) Operating expenses
MaintenanceUtilities costs

7,575,933－－

Repair costs

822,720

Property management fees

2,400,000

Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

－
4,028,200
177,853
147,160－
2,001,952(6) Net Cash Flow (NCF = (3)+(4)-(5))

44,435,615
6.1%

Price calculated by the Discounted Cash
Flow Approach
Discount rate
Terminal capitalization rate

Matters noted in reconciliation ofindicated value and determination ofappraisal value

Borne by tenant
Borne by tenant
Repair costs for the building were estimated with reference to theEngineering Report, the building’s age, costs recorded at similar
properties and other factors.
Estimated based on the property management agreement.
Not recorded as tenant is obliged to restore the property to its
original state and tenant replacement is not assumed.
Estimated based on materials for fiscal 2016
Estimated based on relevant insurance premium rate tables
Estimated based in part on past levels of income and costs

Assumed investment yield of 1.0%.
Estimated with reference to the Engineering Report, the building’s
age, amounts recorded at similar properties and other factors.
Estimated based mainly on the yield of similar propertytransactions, with reference to the characteristics of the areasurrounding the property, the property’s particular characteristics
and other factors.

728,000,000
5.9%
6.3%

Cost Approach Price
Ratio of land
Ratio of building

Estimated based in part on market rent levels
Estimated based on the standard medium- to long-term vacancy
rate.

46,437,567(5) Capital Expenditure Reserve(7) Capitalization rate

The capitalization approach was used to estimate the income-basedvalue, with the base value calculated using the discounted cash flow
approach and verified using the direct capitalization approach.
Estimated by reducing a standard level of net cash flow by thecapitalization rate.

578,000,000
21.7%
78.3%
―

12

Estimated with reference to the individual risks for the property
and other factors
Estimated based on the capitalization rate, with consideration given
to levels of future uncertainty.

Property name

Chiyodamachi Logistics Center

Appraisal value¥367,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal dateFebruary 28, 2017
(Amount：¥)
Amount orpercentage

Item
Capitalization approach price

Grounds

367,000,000

Price calculated by the direct
capitalization approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies, etc.

366,000,000
31,686,024
31,686,024－(2) Operating expenses
MaintenanceUtilities costs

6,519,206－－

Repair costs

1,245,083

Property management fees

2,400,000

Advertisement for leasing, etc.
Taxes
Insurance premium
Other expenses(3) Net operating income from leasing
business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.

－
2,727,600
99,36347,160158,355
3,338,502(6) Net Cash Flow (NCF = (3)+(4)-(5))

21,986,671
6.0%

Price calculated by the Discounted Cash
Flow Approach
Discount rate
Terminal capitalization rate

Matters noted in reconciliation ofindicated value and determination ofappraisal value

Borne by tenant
Borne by tenant
Repair costs for the building were estimated with reference to theEngineering Report, the building’s age, costs recorded at similar
properties and other factors.
Estimated based on the property management agreement.
Not recorded as tenant is obliged to restore the property to its
original state and tenant replacement is not assumed.
Estimated based on materials for fiscal 2016
Estimated based on relevant insurance premium rate tables
Estimated based in part on past levels of income and costs

Assumed investment yield of 1.0%.
Estimated with reference to the Engineering Report, the building’s
age, amounts recorded at similar properties and other factors.
Estimated based mainly on the yield of similar propertytransactions, with reference to the characteristics of the areasurrounding the property, the property’s particular characteristics
and other factors.

368,000,000
5.8%
6.2%

Cost Approach Price
Ratio of land
Ratio of building

Estimated based in part on market rent levels
Estimated based on the standard medium- to long-term vacancy
rate.

25,166,818(5) Capital Expenditure Reserve(7) Capitalization rate

The capitalization approach was used to estimate the income-basedvalue, with the base value calculated using the discounted cash flow
approach and verified using the direct capitalization approach.
Estimated by reducing a standard level of net cash flow by thecapitalization rate.

Estimated with reference to the individual risks for the property
and other factors
Estimated based on the capitalization rate, with consideration given
to levels of future uncertainty.

316,000,000
41.4%
58.6%
―

【Exhibit】
Reference Material: Portfolio Overview after the Disposition* <Nomura Master Fund, Inc.> URL: http://www.nre-mf.co.jp/en/
Exhibit13

Portfolio Overview after the Disposition

Asset type

OfficeRetailLogistics

Residential

Percentage to total

Area (Note 1)

Acquisition price (mln)Greater Tokyo

348,330

37.6%

Other areas

71,930

7.8%

Total

420,260

45.3%

Greater Tokyo

108,367

11.7%

Other areas

59,356

6.4%

Total

167,723

18.1%

Greater Tokyo

146,930

15.8%

Other areas

3,460

0.4%

Total

150,390

16.2%

Greater Tokyo

151,518

16.3%

Other areas

32,527

3.5%

Total

184,045

19.9%

Greater Tokyo

4,900

0.5%

Total

4,900

0.5%

-

927,318

100.0%(%) (Note 2)

Other

Grand total(Note 1) “Greater Tokyo” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other Areas” refers tocabinet-order designated cities, prefectural capitals, and cities having a population of at least 100,000 and their peripheral areas,
excluding Greater Tokyo.
(Note 2) “Percentage to Total” indicates the ratio of the total acquisition price of properties for respective uses and in respective areas to thetotal acquisition price of the entire portfolio based on acquisition prices. Furthermore, as the figures were rounded to the first decimal
place, the total may not necessarily be 100%

14