[For Translation Purposes Only]
November 21, 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 OfficerInquiries:
Ken Okada
Director and Managing Executive Officer
TEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Property Acquisition
Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced the decision made todayby Nomura Real Estate Asset Management Co., Ltd., a licensed investment trust management company retained by theFund to provide asset management services, that it will acquire asset (the “Acquisition”), as described below.

1．Overview of the Acquisition
Property Name

Use(Scheduled)
Date ofAgreement(Scheduled)
Date ofAcquisition

Summit Store
Mukoudaicho

RetailNovember 22,
2017

November 30,
2017

SellerUndisclosed(Note 2)

(Scheduled)
Acquisition Price(¥million)(Note 1)
5,100(Note 1) The amount excluding acquisition related costs, property tax, city planning tax, consumption tax and local consumption tax isstated.
(Note 2) Undisclosed, since consent have not obtained from the seller.
(Note 3) The asset to be acquired is a beneficiary interest in a trust for which real estate is the principal trust asset.
(Note 4) The asset to be acquired is scheduled to be acquired using cash on hand.

2．Reasons for the Acquisition
The Fund decided to acquire the property to secure stable earnings and steady growth of its assets over themedium to long term, in line with the asset management objectives and policies specified in the Fund’s Articlesof Incorporation.
The strengths of the property to be acquired are as follows.
・Located in the area which has a strong supply of detached housing to meet the growth of population (Note) withnumerous north-south bus lines for Tanashi Station on the Seibu Shinjuku Line and for Musashi-Sakai Station on
the JR Chuo Line.
・The trade area within a one-kilometer radius of the property contains 14,000 households, offering an excellent
retail market.
・Much of the area near the property is a category 1 exclusive district for low-rise residential buildings. As a result,－ １ －development of retail facilities is limited, and the property offers a high degree of exclusivity as a retail facility locatedin a residential area.
(Note) Source: Compiled by the Asset Management Company using statistical data on population and households from the NishiTokyo City Official Website.

3．Summary of Asset to Be Acquired
Property Name
Type of Asset
Trustee
Trust Term
Registry
Location(Note 2)StreetAccessCompletion Date (Note 2)
Use (Note 2)
Structure (Note 2)
Architect
Builder
Building Inspection Agency
LandArea(Note 2)
FloorAreaLand
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note 5)

Notes
Acquisition Price(Scheduled)Summit Store Mukodaicho
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
June 29, 2011 to June 30, 2021 (Note 1)
3-1010-5 Mukodaicho, Nishi-Tokyo City, Tokyo
3-5-74 Mukodaicho, Nishi-Tokyo City, Tokyo
15-minute walk from Tanashi Station on the Seibu Shinjuku Line, 28-minute walkfrom Musashisakai Station on the JR Chuo and Seibu Tamagawa Line
March 19, 2009
Retail, parking
S 3F
A&F, Espace, Tokyo Design Office
Fukuda Corporation Tokyo Main Branch
Bureau Veritas Japan Co., Ltd.
6,166.41 ㎡
10,659.55 ㎡
OwnershipOwnership
70％ （Note 3）
200％None
GEO-AKAMATSU Co., Ltd.
7.33％
(Based on a October 2017 Earthquake PML Appraisal Report by SOMPO RISKMANAGEMENT & HEALTH CARE Inc.)
The property management company, GEO-AKAMATSU Co., Ltd., is considereda related party under the Law Concerning Investment Trust and Investment
Corporations ( “ Investment Trust Law”).
¥5,100 million¥5,180 million（Based on the capitalization approach as of November 1, 2017）（Appraiser: Japan Valuers Co., Ltd.）
Appraisal NOI(Note 6)¥231 million
Leasing Status (As of November 21, 2017) （Note 7）
Total Number of Tenants
2Total Rental Income
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0％
Total Leased Floor Space
6,996.40 ㎡
Total Leasable Floor Space
6,996.40 ㎡
August,August,August,August,August,Historical Occupancy Rates
2013
2014
2015
2016
2017（Note 8）
100.0％
100.0％
100.0％
100.0％
100.0％

Appraisal Value and Method－ ２ －(Note 1) Trust Term
On November 30, 2017 (the planned acquisition date of the Property), the trust agreement is expected to be amended,with its expiration date changed to November 30, 2027.
(Note 2) Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(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 isa corner lot, the applied coverage ratio is 70%.
(Note 4) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 5) PML (Probable Maximum Loss)
The PML figure indicates the probable losses caused by a major earthquake, expressed as the expected recovery costpresented as a percentage of replacement cost. PML is calculated based on a statistical assumption that there is a 0.211%
annual chance (approximately 10% probability once every 50 years, i.e., the average lifespan of a building) of a major
earthquake occurring.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income-operating expenses) described in the real estate appraisal report,with November 1, 2017 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” and “Security Deposits” are undisclosed as the Fund has not received permission from the tenant
to disclose these items.
“Total Leased Floor Space” indicates the total floor space leased to end tenants.
(Note 8) Historical Occupancy Rates
Based on the information from the seller.

4．Seller Profile
As the Fund has not obtained an agreement with the seller, 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 seller, and the seller is not a related party of either the Fundor the Asset Management Company.

5．Status of Owners
There is no special relationship of interest between the seller and the Fund or the Asset Management Company
for the acquisition of the property.

6．Broker Profile
There is no brokerage involved in the acquisition of the property.

7．Transaction with Related Parties
・ Transaction concerning Property Management Company
The property management company of the property, GEO-AKAMATSU Co., Ltd., is a related party under theInvestment Trust Law, as stated above. Accordingly, the fees and other terms of the consignment of property
management have been duly examined and authorized by the Asset Management Company’s compliance committee
and investment committee pursuant to its investment committee rules, rules of compliance, compliance manual,rules concerning transactions with related parties, and other relevant rules and guidelines.

8. Form of Payment, etc.
Nomura Master Fund plans to pay in full the purchase price for the property to be acquired to the seller on thescheduled date of acquisition using cash on hand.

9．Schedule for Acquisition
November 22, 2017Conclusion of agreement on the acquisition of the property.

November 30, 2017

Acquisition of the property (Delivery of the trust beneficiary interests)－ ３ －10．Forecasts of Financial Results
The impact of this acquisition on operations in the fiscal period ending February 28, 2018 (September 1,
2017 to February 28, 2018) are expected to be minor. Accordingly, there is no revision to the forecast offinancial results.

－ ４ －11．Appraisal Summary
Property Name

Summit Store MukoudaichoAppraisal Value
Appraiser
Appraisal Date¥ 5,180,000,000
Japan Valuers Co., Ltd.
November 1, 2017
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
MaintenanceUtilities Costs
Repair Costs
Property Management Fees
Advertisement for Leasing, etc.
Taxes
Insurance Premium
Other Expenses(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Management ofTemporary 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

5,180,000,000
5,220,000,000
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed(Note)

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

(Note)

Undisclosed(Note)

Undisclosed(Note)

229,603,089
4.40％

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

5,130,000,000
4.20％

4.60％

Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

Grounds

231,014,549

Terminal Capitalization Rate

Cost Approach Price
Ratio of Land
Ratio of Building(Yen)

Amount orpercentage

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.

2,520,000,000
85.0％
15.0％
The Property is adjacent to comprehensively redeveloped retail facilities and islocated in a densely populated area, offering consumption demand synergies. The
Property is a large corner lot with excellent visibility, offering great potential as aretail location. Furthermore, the building is an efficiently constructed, highlyeconomical retail facility that is highly competitive compared with similar real estateproperties. In view of the above factors, the appraisal value was determined with anemphasis on the capitalization approach price, in which the investment value wasappropriately reflected.

The Property is occupied only by a tenant who is a third party with no special relationship of interest with the Fundor the Asset Management Company. The disclosure of the items noted could be used to infer the conditions of
the lease, which could negatively impact the Fund’s competitiveness and thus harm the interests of unitholders.
Furthermore, the Fund has not received permission from the tenant to disclose these items. Accordingly, theseitems are not disclosed.

－ ５ －【Exhibits】
Exhibit 1

Portfolio Overview after Acquisition

Exhibit 2

Photo of the Property to Be Acquired

Exhibit 3

Map of the Property to Be Acquired*<Nomura Real Estate Master Fund, Inc.> URL: http://www.nre-mf.co.jp/en/－ ６ －Exhibit 1
Overview of the Portfolio after Acquisition(¥ million)
Area

Greater TokyoArea (Note 1)

Sector(Scheduled) Total
Other Areas

Acquisition Price(by Sector)

Percentage ofTotal (Note 2)

Office356,180

71,930428,110

46.2

Retail100,427

59,356

159,783

17.2

Logistics

146,9303,460

150,390

16.2

Residential

151,518

32,527

184,045

19.8

Others

4,900

-

4,900

0.5

(Scheduled) Total
Acquisition Price(by Area)

759,955

167,273927,228

100.0

Percentage of Total (Note 2)

82.0

18.0

100.0％(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 (Scheduled) total acquisition price of properties for each use and in eacharea to the 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
Photo of the Asset to Be Acquired

Exhibit 3
Map of the Asset to be Acquired