November 12, 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 Issuance of Investment Corporation Bonds (Green Bonds)
Activia Properties Inc. (“API”) announces that it decided today to issue investment corporation bonds(green bonds).
1. Summary of the investment corporation bonds (green bonds)(1) Name(2) Total issue amount(3) Form of bond certificate(4) Issue price(5) Redemption price(6) Interest rate(7) Denomination price(8) Offering method(9) Offering date(10) Payment date(11) Collateral(12) Redemption method and date(13) Interest payment date(14) Financial covenant

The 11th unsecured investment corporation bonds (green bonds)(with pari passu conditions among specified investment corporation
bonds) (“the Investment Corporation Bonds”)¥4 billion
Subject to the provisions of the Act on Book-Entry Transfer ofCorporate Bonds, Shares, etc., the investment bond certificates will
not be issued for the Investment Corporation Bonds.
¥100 per ¥100 of each bond¥100 per ¥100 of each bond
0.530% per annum¥100 million
Public Offering
November 12, 2019 (Tuesday)
November 18, 2019 (Monday)
Neither collateral nor guarantee is provided for the Investment
Corporation Bonds, and no asset has been particularly secured for theInvestment Corporation Bonds.
The total amount of the Investment Corporation Bonds will beredeemed on November 16, 2029.
Redemption by purchase of the Investment Corporation Bonds by API
will be available any time on and after the following day of the payment
date, unless otherwise determined by the depository.
May 18 and November 18 every year
(For the interest payment for the period commencing on and including
May 19, 2029 and ending on and including November 16, 2029, theredemption date, the interest payment date will be on November 16,2029.)
Negative pledge among unsecured bonds

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(15) Credit rating(16) Depository(17) Fiscal agent, issuing agent andpaying agent(18) Underwriter

AA (Japan Credit Rating Agency, Ltd.)
Japan Securities Depository Center, Inc.
MUFG Bank, Ltd.
Mizuho Securities Co., Ltd., SMBC Nikko Securities Inc.,
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.,and Daiwa Securities Co. Ltd.

2. Reasons for the issuance
API has decided to issue the Investment Corporation Bonds in order to extend and balance the debt
maturity and diversify the financing methods. Also, through the issuance of the Investment Corporation
Bonds as green bonds in accordance with the Green Bond Framework as described in “Notice Concerning
Submission of Amendment to the Shelf Registration Statement related to Issuance of Green Bonds”
released on January 17, 2019, API aims to further promote its sustainability initiatives and invite newinvestors to its investment corporation bonds by stimulating their demand who have interest in ESG
investment.

3. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure(1) Amount of funds to be raised (estimated amount of net proceeds)¥3,980 million(2) Specific use of proceeds and scheduled timing of expenditure
All of the funds raised will be used on November 26, 2019 as part of the funds for an early repayment of
the short-term borrowing (¥4 billion) which will become due and payable on June 3, 2020 (the “ExistingShort-term Borrowing”). For further details, please refer to the “Notice Concerning Early Repayment ofFunds” announced as of today.
The Existing Short-term Borrowing was used to refinance the borrowing for part of the funds to acquire
A-PLACE Shinagawa Higashi, which falls into the Eligible Green Projects aligned with the Eligibility
Criteria defined in “Notice Concerning Submission of Amendment to the Shelf Registration
Statement related to Issuance of Green Bonds” released on January 17, 2019.
(TO-16) A-PLACE Shinagawa
Higashi

Certification for CASBEE
for Real Estate 2018

S(★★★★★)For further details, please refer to “Notice Concerning Early Repayment of Funds” released as of today.

24. Investors who declared intention to invest in the Investment Corporation Bonds
Listed below in alphabetical order are investors to date who declared their intention of investment in theInvestment Corporation Bonds and agreed to disclose their names.
- ADACHISEIWA SHINKIN BANK- NORTH PACIFIC BANK, LTD.
- ASAHIKAWA SHINKIN BANK- ODAWARA DAIICHI SHINYOUKUMIAI- Credit Guarantee Corporation of Osaka- OITA-KEN CREDIT COOPERATIVE- ECHIZEN SHINKIN BANK
- Sawayaka Shinkin Bank
- Fuji Shinkin Bank
- Shigaken Shinyoukumiai- GUNMAMIRAI Shinkumi Bank
- The Hanno-Shinkin Bank
- Hyogo Shinkin Bank
- The TAKAMATSU SHINKIN BANK- KANONJI SHINKIN BANK- Tokushima Shinkin Bank
- KIRYU SHINKIN BANK
- Tono Shinkin Bank
- Nishi-Chugoku Shinkin Bank
- TSURU SHINKUMI- NISHIHYOGO SHINKIN BANK

5. Status of borrowings payable, etc. after the issuance of the Investment Corporation Bonds(1) Interest-bearing debt after the issuance of the Investment Corporation Bonds(In millions of yen)

Beforethe issuance(As of November 12,2019)

Afterthe issuance(As of November 26,2019) (Note 1)

Short-term borrowings

9,000

5,000

(4,000)Long-term borrowings to be repaid
within one year

7,300

7,300

0

Long-term borrowings

199,050

199,0500215,350

211,350(4,000)Investment corporation bonds
to be redeemed within one year

6,000

6,000

0

Investment corporation bonds

13,00017,0004,000

234,350

234,3500(Note 2)(Note 2)

Total amount of borrowings

Total amount of borrowing andinvestment corporation bonds(Note 1)
(Note 2)

Change

The figures are based on assumption that the early repayment of the Existing Short-term Borrowing (4 billion yen) will bemade on November 26, 2019.
Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer toborrowings with a maturity period of more than one year.

3(2) Basic financing information after the issuance of the Investment Corporation Bonds
Beforethe issuance(As of November 12,2019)

Afterthe issuance(As of November 26,2019) (Note 1)

Change(point)

Long-term borrowing ratio

96.2%

97.9%

1.7

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

90.5%

92.2%

1.7

Fixed interest ratio

91.1%

92.8%

1.7

(Note 2) (Note 5)(Note 3) (Note 5)(Note 4) (Note 5)(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)

The figures are based on assumption that the early repayment of the Existing Short-term Borrowing (¥4 billion) will be madeon November 26, 2019.
Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the long-term borrowings to berepaid 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.
Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds to be redeemedwithin one year) is the ratio of the outstanding long-term borrowings (excluding the long-term borrowings to be repaid within
one year) and investment corporation bonds (excluding the investment corporation bonds to be redeemed within one year) to thetotal of outstanding interest-bearing debt.
Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the total of 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.
Figures are rounded to the first decimal place.

6. Other
Regarding the risks related to the redemption of the Investment Corporation Bonds, 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/

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