[For Translation Purposes Only]
December 12, 2017

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”) announces the decision madetoday by Nomura Real Estate Asset Management Co., Ltd.(the “Asset Management Company”), a licensed
investment trust management company retained by the Fund to provide asset management services, that it will
dispose assets (the “Disposition,”), as described below.

1．Overview of the Disposition

Property Name

(Scheduled)
Date ofAgreement

Use(Scheduled)
Date of
Disposition

Transferee(Scheduled)TransferPrice(¥ million)

Book Value(¥ million)(Note 2)Difference(¥ million)(Note 3)(Note 1)

Funabashi Logistics
CenterLogistics

December 15,
2017

January 19,
2018

Undisclosed

5,480

4,537

942

(Note 4)(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) For reference only, this indicates the difference between the scheduled transfer price and anticipated book value; it is not equal togain or loss on sale.
(Note 4) Undisclosed, since consent have not obtained from the Transferee.
(Note 5) The asset to be disposed is a beneficiary interest in a trust for which real estate is the principal trust asset.

2．Reasons for the Disposition
Based on the asset management objectives and policies laid out in the Articles of Incorporation, the Fund
decided to implement the Disposition upon the comprehensive consideration of such factors as the portfolio’s asset
composition and the profitability of the Property.

13．Summary of Asset to Be Disposed
Property Name
Type of Asset
Trustee
Trust Term
Registry
Location(Note 1)Street (Note 2)
AccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
LandArea(Note 1)
Floor AreaLand
Type ofOwnership
Building
Building Coverage Ratio
Floor Area RatioCollateralAcquisition Price
Scheduled Transfer PriceBook Value (Note 4)
Difference

Funabashi Logistics Center
Trust beneficiary interest in real estate
Sumitomo Mitsui Trust Bank, Limited
September 29, 2005 to June 30, 2023
13-2 Shiomicho, Funabashi City, Chiba and other 1 lot
14 Shiomicho, Funabashi City, Chiba
2.6km from Futamatashinmachi Station on JR Keiyo Line
September 21, 1991
Storage
SRC 6F
10,335.00 m2
30,421.70 m2
Ownership
Ownership
70％ （Note 3）
300％None¥4,660 million¥5,480 million¥4,537 million¥942 million¥5,440 million（Based on the capitalization approach as of August 3
Appraisal Value and Method
1, 2017）（Appraiser: Japan Real Estate Institute）
Appraisal NOI(Note 5)¥288 million
Leasing Status (As of December 12, 2017) （Note 6）
Total Number of2
Tenants
Total Rental Income
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0％
Total Leased Floor
30,328.41 m2
Space
Total Leasable Floor
30,328.41 m2
Space
August,August,August,August,August,Historical Occupancy
2013
2014
2015
2016
2017
Rates
100.0％
100.0％
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) Location (Street)
As the Property has not been assigned a street location, the Property’s location as listed in the real estate registry is given
as the street location.
(Note 3) Building Coverage Ratio
The Property is located in a quasi-industrial zone where the building coverage ratio is 60% in principle. As the Property is acorner lot, the applied coverage ratio is 70%.
(Note 4) Book Value“Book Value” is the 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, withAugust 31, 2017 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 Property as oftoday.
“Total Rental Income” and “Security Deposits” are undisclosed as the Fund has not received permission from the tenant todisclose these items.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of today.

24. Purchaser Profile
As the Fund has not obtained a consent with the Purchaser, who is a domestic limited liability company, thisinformation is not disclosed. As of today, neither the Fund nor the Asset Management Company has any notable
capital, personnel or transactional relationship with the Purchaser, and the Purchaser is not a related party of either
the Fund or the Asset Management Company.

5. Transaction with Related Parties
There is no special relation between the said company and the Fund or the Asset Management Company forthis transaction.

6．Broker ProfileCompany Name
Mitsubishi UFJ Trust and Banking Corporation
Head Office
1-4-5 Marunouchi, Chiyoda Ward, Tokyo
Representative
Mikio Ikegaya, President and CEO
Principal Business
Retail Banking Business, Trust Assets Business
Capital¥324.2 billion (as of March 31, 2017)
EstablishedMarch 10, 1927
Relationships with the Fund and/or the Asset Management Company
There is no capital involvement between the said company and the Fund or the Asset
CapitalManagement Company. There is also no capital involvement between related parties of the saidcompany and related parties of the Fund or the Asset Management Company.
There is no personnel involvement between the said company and the Fund or the AssetPersonnel
Management Company. There is also no personnel involvement between related parties of thesaid company and related parties of the Fund or the Asset Management Company.
Said company acts as NMF’s general administrator, administrator of unitholders’ register,
special account administrative agent and lender; said company is also the trustee of multiple
Transactions
properties held by NMF. There is no notable transactional relationship between said company
and the Asset Management Company.
Said company is not a related party of the Fund or the Asset Management Company.
Related Party Status Furthermore, the related parties of said company are not related parties of the Fund or the AssetManagement Company.
The brokerage fee is not disclosed due to the fact that the broker’s consent to disclosure hasBrokerage Fee
not been obtained.

7. Form of Payment, etc.
On the scheduled sale date, the Fund will receive from the seller the entire purchase price of the Property toBe Sold in a lump sum.
The Fund plans to use the cash obtained through the sale of the Property for portfolio management, including
the repayment of borrowings and the acquisition of properties.

8. Schedule for Disposition
December 15, 2017Conclusion of agreement on purchase and sale for the disposition of the Asset

January 19, 2018

Delivery of trust beneficiary rights of the Asset

9．Forecasts of Financial Results
Although the Fund expects the Disposition to generate gains on sale of real estate, it intends to hold the gains asinternal reserves to ensure stable operations and distributions going forward. As the effect of the Disposition on
operating performance in the fiscal period ending February 28, 2018 (September 1, 2017 to February 28, 2018) will beminor, there is no revision to the forecast of financial results.
310. Appraisal Summary
Property Name

Funabashi Logistics CenterAppraisal Value
Appraiser
Appraisal Date¥ 5,440,000,000
Japan Real Estate Institute
August 31, 2017
(Yen)
Item

Capitalization approach pricePrice calculated by the direct
capitalization approach(1) Operating income (a)-(b)(a) Gross rental income(b) Losses due to vacancies,etc.
(2) Operating expenses
MaintenanceUtilities costs
Repair costs
Property management fees
Advertisement for leasing, etc.
TaxesInsurance premium
Other expenses(3) Net operating income fromleasing business (NOI=(1)-(2))(4) Profit through management of
temporary deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow
(NCF = (3)+(4)-(5))

Amount orpercentage
5,440,000,000
5,500,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed(Note)(Note)

288,045,000
Undisclosed(Note)
Undisclosed
264,135,000
4.8％

Assumed based on conditions of the location,
the building, and the contract of the Property.

5,370,000,000

Discount rate

4.5％

Terminal capitalization rate

5.1％

Cost Approach Price
Ratio of land
Ratio of building

Calculated taking into account income-basedvalues determined using both the direct
capitalization approach and the discounted
cash flow approachCalculated by capitalization rate based on a net
revenue of the stable mid-to-long term

Undisclosed
Undisclosed(7) Capitalization rate
Price calculated by the Discounted
Cash Flow Approach

Grounds

Assumed based on the yield on investment ofsimilar buildings and the characteristics of theProperty
Assumed based on the yield on investment ofsimilar buildings, the future movement of theyield on investment, risks of the Property as apreferred investment, general forecasts ofeconomic growth rate, and price trends of realestate and rents

4,380,000,000
50.5％
49.5％

These items contain information for which the Fund bears a duty of confidentiality to the lessees or information that
could be used to calculate such information. The disclosure of these items could result in a breach of said duty ofconfidentiality, which could negatively impact the Fund and thus the interests of its unitholders. Accordingly, these
items are undisclosed.

4

Exhibits
Exhibit 1 Overview of the Portfolio after the Transaction*Nomura Real Estate Master Fund, Inc.’s website: http://www.nre-mf.co.jp/en/

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

Total Acquisition
Price

Other Areas(by Sector)

Percentage of Total(Note 2)

Office356,180

71,930428,110

46.4

Retail100,427

59,356

159,783

17.3

Logistics

142,270

3,460

145,730

15.8

Residential

151,518

32,527

184,045

19.9

Others4,900-4,9000.5

Total Acquisition Price(by Area)

755,295

167,273922,568

100.0

81.9

18.1

100.0％

Percentage of Total (Note 2)(Note 1) “Greater Tokyo Area” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “OtherAreas” refers to cabinet-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 of Total” indicates the ratio of the total acquisition price of properties for each use and in each area to thetotal acquisition price of the entire portfolio. As the figures are rounded to the first decimal place, they may not add up
to exactly 100%.