December 24, 2019

FOR IMMEDIATE RELEASE

Activia Properties Inc.
21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo
Kazushi Sato
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Hiroyuki Tohmata
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6455-3377)

Notice Concerning Borrowings of Funds
Activia Properties Inc. (“API”) announces today that it decided to borrow funds (the “Borrowings”).
Details are as follows:

I. Borrowings①
1.

Details of the borrowings< Long-term borrowings >LoanamountInterestrate

Drawdown
date (plan)Due date(Note 1)

Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation

4.28
billionyen

0.14%+Base rate
(Note 2)January 10,
2020

January 11,
2022

Development Bank of Japan Inc.

0.72
billionyen

To bedetermined(Fixed rate)(Note 3)(Note 4)January 10,
2020

January 11,
2022

Lender1

Borrowing andrepayment
methods,
security, andguarantee
Borrowing basedon a borrowing
agreement withthe lenders
shown at left as
the creditor,
lump-sum
repayment,
unsecured, andunguaranteed
Borrowing basedon a borrowing
agreement withthe lenders
shown at left as
the creditor,
lump-sum
repayment,
unsecured, andunguaranteedBorrowing basedon a borrowing
agreement with
Sumitomo Mitsui Trust Bank, Limited
To be
the lenders
Mizuho Bank, Ltd.
3.8
determinedshown at left as
January 10,January 12,
MUFG Bank, Ltd.
billion(Fixed rate)
the creditor,
2020
2027
Sumitomo Mitsui Banking Corporationyen(Note 3)lump-sum
Development Bank of Japan Inc.
(Note 4)
repayment,
unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of January 2020 and the last day of each month thereafter as wellas on the due date of the principal. (If an interest payment date is a non-business day, it shall be the following businessday. If such day falls in the following month, it shall be the immediately preceding business day.)The base rate applicable to the period for the calculation of the interest payable on an interest payment date is theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediatelypreceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.
After this, API will not announce the interest rate decisions for the borrowing. For changes in the JBA Japanese YenTIBOR, the base rate, please check the website of the JBA TIBOR Administration (http://www.jbatibor.or.jp/english).
(Note 3) Interest rate of the borrowing will be announced upon determination.
(Note 4) The interest payment will be made on the last day of July 2020 and the last days of January and July in each year
thereafter as well as on the due date of the principal. (If an interest payment date is a non-business day, it shall be thefollowing business day. If such day falls in the following month, it shall be the immediately preceding business day.)2.

Reasons for the borrowings

API will use the borrowings to redeem a short-time borrowing of 5 billion yen (the “Existing Shortterm Borrowing”) and long-term borrowings of 3.8 billion yen (the “Existing Long-term Borrowings”),
both with a due date of January 10, 2020. For the details of the Existing Short-term Borrowing, please refer
to “Notice Concerning Borrowings of Funds” released on December 25, 2018, and for the details of theExisting Long-term Borrowings, please refer to “Notice Concerning Borrowing of Funds” released onDecember 9, 2013 and “Notice Concerning Borrowing of Funds” released on June 30, 2014.
3.

Amount, use and schedule of disbursement of funds to be raised(1) Total amount
8.8 billion yen in total(2) Specific purpose of use
Funds will be used to redeem the Existing Short-term Borrowing and the Existing Long-term
Borrowings(3) Scheduled date of disbursement
January 10, 20202II. Borrowings②
1.

Details of the borrowings< Short-term borrowings>

Borrowing andrepayment
Loan
Interest
Drawdown
Due date
Lendermethods,
amountratedate (plan)(Note 1)security, andguarantee
Borrowing basedon a borrowing
agreement withthe lenders
Sumitomo Mitsui Trust Bank, Limited
21.0
0.13%
shown at left as
January 10,
March 19,Mizuho Bank, Ltd.
billion+Base rate
the creditor,
2020
2020
MUFG Bank, Ltd.
yen
(Note 2)lump-sum
repayment,
unsecured, andunguaranteed
Borrowing basedon a borrowing
agreement withthe lenders
Sumitomo Mitsui Trust Bank, Limited
5.00.13%
shown at left as
January 10,
January 12,
Mizuho Bank, Ltd.
billion+Base rate
the creditor,
2020
2021
MUFG Bank, Ltd.
yen
(Note 2)lump-sum
repayment,
unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of January 2020 and the last day of each month thereafter as wellas on the due date of the principal. (If an interest payment date is a non-business day, it shall be the following businessday. If such day falls in the following month, it shall be the immediately preceding business day.)The base rate applicable to the period for the calculation of the interest payable on an interest payment date is theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediately
preceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.
After this, API will not announce the interest rate decisions for the borrowings. For changes in the JBA Japanese Yen
TIBOR, the base rate, please check the website of the JBA TIBOR Administration (http://www.jbatibor.or.jp/english).

< Long-term borrowing>

Borrowing andrepayment
LoanInterest
Drawdown
Due date
Lendermethods,
amountrate
date (plan)(Note 1)security, andguarantee
Borrowing basedon a borrowing
agreement with
Sumitomo Mitsui Trust Bank, Limited
To be
the lenders
Mizuho Bank, Ltd.
5.0
determinedshown at left as
January 10,January 12,
MUFG Bank, Ltd.
billion(Fixed rate)
the creditor,20202024Sumitomo Mitsui Banking Corporationyen(Note 2)lump-sum
Development Bank of Japan Inc.
(Note 3)
repayment,unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) Interest rate of the borrowing will be announced upon the determination.

3

(Note 3) The interest payment will be made on the last day of July 2020 and the last days of January and July in each year
thereafter as well as on the due date of the principal. (If an interest payment date is a non-business day, it shall be thefollowing business day. If such day falls in the following month, it shall be the immediately preceding business day.)

2． Reasons for the borrowings
API will use the borrowings for a part of the purchase price and the related expenses of the real estate trust
beneficiary interest in the anticipated property announced in “Notice of Acquisition and Disposition of Assets andLease Contract with New Tenants” released on November 29, 2019.
For the details of the anticipated property, please refer to “Notice of Acquisition and Disposition of Assets
and Lease Contract with New Tenants” released on November 29, 2019.
3． Amount, use and schedule of disbursement of funds to be raised(1) Total amount
31 billion yen in total(2) Specific purpose of use
A part of the purchase price and the related expenses of the real estate trust beneficiary interest in theanticipated property(3) Scheduled date of disbursement
January 10, 2020
III．Borrowing③
1.

Details of the borrowing< Short-term borrowing>
Borrowing andrepayment
LoanInterestDrawdown
Due dateLender
methods,
amountrate
date (plan)(Note 1)security, andguarantee
Borrowing basedon a borrowing
agreement withthe lenders
Sumitomo Mitsui Trust Bank, Limited
4.0
0.13%
NovemberJanuary 30,
shown at left as
Mizuho Bank, Ltd.
billion+Base rate30,
2020
the creditor,
MUFG Bank, Ltd.
yen
(Note 2)2020
lump-sum
repayment,unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) The interest payment will be made on the last day of February 2020 and the last day of each month thereafter as wellas on the due date of the principal. (If an interest payment date is a non-business day, it shall be the following businessday. If such day falls in the following month, it shall be the immediately preceding business day.)The base rate applicable to the period for the calculation of the interest payable on an interest payment date is theJBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediately
preceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if
the base rate applicable to the calculation period doesn’t exist, the base rate will be the one corresponding to theperiod that will be calculated based on a method provided in the agreement.
After this, API will not announce the interest rate decisions for the borrowing. For changes in the JBA Japanese Yen
TIBOR, the base rate, please check the website of the JBA TIBOR Administration (http://www.jbatibor.or.jp/english).

4

2.

Reasons for the borrowing

API will use the borrowing to redeem the Investment Corporation 5th unsecured bonds of 4 billion yen whichbecomes mature on January 31, 2020 (the “Existing Investment Corporation Bonds”). For the details of theExisting Investment Corporation Bonds, please refer to “Notice Concerning Issuance of Investment CorporationBonds” released on January 27, 2017.
3.

Amount, use and schedule of disbursement of funds to be raised(1) Total amount
4 billion yen in total(2) Specific purpose of use
Funds will be used to redeem the Existing Investment Corporation Bonds(3) Scheduled date of disbursement
January 31, 2020IV. Status of borrowings payable, etc. after the Borrowings
1.

Interest-bearing debt balance after the Borrowings(In millions of yen)

Beforethe Borrowings(As of December 24,2019)

Afterthe Borrowings(As of January 31,2020)

5,000

30,00025,00012,60015,5002,900

193,750

200,850

7,100

211,350

246,350

35,000Investment corporation bonds
to be redeemed within one year

6,000

2,000

(4,000)Investment corporation bonds

17,00017,0000234,350

265,350

31,000

Short-term borrowings(Note)

Long-term borrowings
to be repaid within one year
Long-term borrowings(Note)Total amount of borrowings

Total amount of borrowings andinvestment corporation bonds

Change(Note) Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer
to borrowings with a maturity period of more than one year.

52．Basic financing information after the Borrowings

Beforethe Borrowings(As of December 24,2019)

Afterthe Borrowings(As of January 31,2020)

Long-term borrowing ratio

97.9%

88.7%

(9.2)

Long-term borrowing ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin one year) (Note 2) (Note 4)

89.9%

82.1%

(7.8)

92.8%

82.6%

(10.2)(Note 1) (Note 4)

Fixed interest ratio(Note 3) (Note 4)

Change(point)(Note 1) Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the long-termborrowings to be repaid within one year) and investment corporation bonds (including the investment corporation
bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.
(Note 2) Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds
to be redeemed within one year) is the ratio of the outstanding long-term borrowings (excluding the long-termborrowings to be repaid within one year) and investment corporation bonds (excluding the investment corporation
bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.
(Note 3) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the totalof outstanding interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates
includes debts whose interest rates were converted into fixed interest rates by interest rate swap agreements.
(Note 4) Figures are rounded to the first decimal place.

V. Other
Regarding the risks related to the repayment of the Borrowings, there are no significant changes in the“Investment Risk” section of the securities report submitted on August 29, 2019.

*Website of API: https://www.activia-reit.co.jp/en/

6