June 26, 2019
For Immediate Release

Infrastructure Fund Issuer
Takara Leben Infrastructure Fund, Inc.
Representative: Masahide Kikuchi,
Management Company
Takara Asset Management Co., Ltd.
Representative: Mamoru Takahashi,Contact:

Masahide Kikuchi,

Executive Director
Security Code: 9281

President & CEO
Vice President &Director of
Infrastructure Fund Division
TEL: +81-3-6262-6402

Notice of Purchase and Lease of Domestic Infrastructure Property
Takara Leben Infrastructure Fund, Inc, (hereinafter referred to as “the Investment Corporation”). hereby announces that
Takara Asset Management Co., Ltd., the company that it commissions to conduct asset management (hereinafter referred
to as “the Asset Manager”) has today decided to purchase and lease infrastructure property (hereinafter referred to as“Property to be Purchased”) as follows.
The party to which they will be leased fall under the interested person or other close affiliate (hereinafter referred to as“Interested Persons”) pursuant to the Act on Investment Trusts and Investment Corporations (hereinafter referred to as “theInvestment Trust Act”) and also fall under the interested parties and equivalent pursuant to the Asset Manager’s internal
Regulations on Transactions with Interested Parties, etc. The Asset Manager therefore obtained consent from the Executive
Board of Takara Leben Infrastructure Fund at the meeting held on June 26, 2019 in accordance with the Investment Trust
Act and the Regulations on Transactions with Interested Parties, etc.
1. Outline of Purchase
PropertyNo.
S-26

Expected
Property Name (Note 1)

Brokerage

Location (Note 2)purchase price

Purchased from(MY) (Note 3)
LS Hanno Misugidai

Hanno, Saitama

None
Total

758 Sanko Office Management Co., Ltd.
758―

(Note 1) LS stands for “Leben Solar “(Note 2) The location is based on the statement in the register concerning the land (or one of the pieces of land if there is more than one) where the solar power
generation facility concerned with the Property to be Purchased is installed. However, location is no more detailed than the municipality level.
(Note 3) Expected purchase price represents the amount of the transaction specified in the agreement on the transaction of the specific Property to be Purchasedthat excludes the expenses for purchase such as the property purchase commission, fixed asset taxes, urban planning taxes, the amount equivalent to
consumption tax, and other fees, and that is rounded down to the nearest million yen.

(1) Date of conclusion of agreement on transaction:

June 26, 2019(2) Scheduled purchase date:June 28, 2019 (Day of settlement)(3) Purchased from:

Sanko Office Management Co., Ltd.

1

(4) Funds for purchase:

Borrowings approved by a resolution of the Executive Board meetingof the Investment Corporation held on June 26, 2019 (Note) and own
funds(5) Payment method:

Payment in full at the time of delivery(Note) For details of the borrowings, refer to the press release “Notice Concerning the Borrowing of Funds” dated June 26, 2019

2. Descriptions of the Property to be Purchased(1) Outline of the Property to be Purchased
The outline of the Property to be Purchased are as shown in the tables below. The descriptions in the sections in the tables andthe terms used therein are as defined below unless otherwise stated. The information without notes on timing is, in principle, correct
as of June 26, 2019.
a. Property Overview
・ Outline of Specific Contract represents the details of the specific contract concerning the solar power generation facility
concerned with the Property to be Purchased.
・ Electricity Generation Utilities Operator, Purchasing Electric Utilities Operator, FIT Price and Expiration Date of Supply
Period reflect the details of the Specific Contract that will come into effect on the scheduled date of purchase of the Property
to be Purchased. FIT Price represents the amount after the subtraction of the amount equivalent to consumption tax and local
consumption tax. The revenue of the Electricity Generation Utilities Operator based on the FIT Price under the specificcontract does not mean the revenue of Takara Leben Infrastructure Fund.
・ Location represents the land (or one of the pieces of land if there is more than one) where the solar power generation
facility concerned with the Property to be Purchased is installed in accordance with the statement in the register.
・ Lot number is based on the statement in the register.
・ Use District represents the district specified in item (i) of paragraph (1) of Article 8 in the City Planning Act or the areaclassification specified in Article 7 of the same Act. It indicates non-classified city planning area for any land designated as acity planning area and without area classification under Article 7 of the City Planning Act, and outside the city planning area
for any land that is not designated as a city planning area.
・ Area is based on the statement in the register and may not reflect the actual area.
・ Type of Right to the land represents the type of right to be owned by Takara Leben Infrastructure Fund to the land on
which the solar power generation facility concerned with the Property to be Purchased is located.
・ Recognition Date represents the date when the solar power generation facility concerned with the Property to be Purchased
is recognized.
・ Supply Start Date represents the date when the solar power generation facility concerned with the Property to be Purchasedcommences its operation, excluding trial operation, and its supply of renewable energy electricity in accordance with thespecific contract at the relevant time.
・ Remaining Procurement Period represents the period in months from the scheduled date of purchase of the solar power
generation facility concerned with the Property to be Purchased to the expiration date of the procurement period. Any
fractional portion of less than one month is disregarded.
・ Expiration Date of Procurement Period represents the date when the procurement period regarding the solar power
generation facility concerned with the Property to be Purchased expires.
・ Procurement Price represents the procurement price regarding the solar power generation facility concerned with theProperty to be Purchased, exclusive of the amount equivalent to consumption tax and local consumption tax.
・ Panel Type represents power generation elements incorporated into solar cell modules in the solar power generation facility

2concerned with the Property to be Purchased according to the statement in the Technical Report prepared by E&E Solutions
Inc. and other sources.
・ Panel Output represents the maximum output of solar cell modules in the solar power generation facility concerned with
the Property to be Purchased according to the statement in the Technical Report prepared by E&E Solutions Inc. and othersources.
・ Number of Panels represents the number of solar cell modules used in the solar power generation facility concerned with
the Property to be Purchased according to the statement in the Technical Report prepared by E&E Solutions Inc. and othersources.
・ Panel Manufacturer represents the manufacturer of the solar cell modules adopted in the solar power generation facility
concerned with the Property to be Purchased according to the statement in the Technical Report prepared by E&E Solutions
Inc. and other sources.
・ PCS Manufacturer represents the manufacturer of the power conditioner system (PCS) adopted in the solar power
generation facility concerned with the Property to be Purchased according to the statement in the Technical Report preparedby E&E Solutions Inc. and other sources. Power generation facility concerned with the Property to be Purchased according
to the statement in the Technical Report prepared by E&E Solutions Inc. and other sources.
・ EPC Operator represents the contracted operator engaging in the construction of the solar power generation facility
concerned with the Property to be Purchased.
・ Electricity Output represents either the solar cell module capacity or the PCS capacity in the solar power generation facility
concerned with the Property to be Purchased according to the statement in the Technical Report prepared by E&E Solutions
Inc. and other sources, whichever is the smaller.
・ Estimated Annual Electricity Generation represents the annual electricity generation of the solar power generation facility
concerned with the Property to be Purchased mentioned in the Technical Report prepared by E&E Solutions Inc. as the value
in the 50th percentile of excess probability calculated after a statistical analysis of the variation in solar radiation for twenty
years at the vicinal meteorological office in the first, 10th and 20th years of the operation of the power plant. The value
represented is rounded down to the nearest second decimal place. It is to be noted, however, that the 50th percentile of excessprobability differs from the percentile of excess probability that serves as the basis of the calculation of the guaranteed
minimum rent that Takara Leben Infrastructure Fund receives from the lessee and the operator in accordance with theagreement on the lease of the power generation facility and others concerned with the Property to be Purchased.
・ Estimated Facility Operation Ratio represents the estimated annual operation ratio of the solar power generation facility
concerned with the Property to be Purchased mentioned in the Technical Report prepared by E&E Solutions Inc. as the value
in the 50th percentile of excess probability calculated after a statistical analysis of the variation in solar radiation for twenty
years at the vicinal meteorological office in the first, 10th and 20th years of operation of the power plant. It is to be noted,
however, that the 50th percentile of excess probability differs from the percentile of excess probability that serves as the basisof the calculation of the guaranteed minimum rent that Takara Leben Infrastructure Fund receives from the lessee and theoperator in accordance with the agreement on the lease of the power generation facility and others concerned with the Property
to be Purchased.
・ Platform Foundation Structure represents the structure of the foundation for the module platform in the solar power
generation facility concerned with the Property to be Purchased according to the statement in the Technical Report preparedby E&E Solutions Inc. and other sources.
・ Type of Right to the facility represents the type of right to be owned by Takara Leben Infrastructure Fund to the solar
power generation facility concerned with the Property to be Purchased.
・ Collateral specifies whether or not there is any asset that Takara Leben Infrastructure Fund will provide as collateral for
the Property to be Purchased after the purchase.
・ Operator represents the company that will serve as the operator as of the date of purchase of the Property to be Purchased.

3

・ O&M Operator represents the operator that will conclude an effective O&M agreement with respect to major O&M
services as of the date of purchase of the Property to be Purchased.
・ Notes describe the rights and use of individual property that are regarded as important as well as other matters that areconsidered significant in view of the impacts on the appraised value, profitability and disposability of the specified property,
in principle on the basis of information as of June 26, 2019.
b. Property Characteristics
・

Property Characteristics describe the basic features, characteristics and regional peculiarities and other factors of theProperty to be Purchased on the basis of the Technical Report prepared by E&E Solutions Inc., the Valuation Report by
PricewaterhouseCoopers Sustainability LLC, the Real Estate Appraisal Report by CBRE K.K. and partly on the basisof materials obtained by Takara Leben Infrastructure Fund. These reports and materials merely refer to the judgments
and opinions of outside specialists at one point in time, and do not guarantee the appropriateness and accuracy of theirinformation. They do not reflect changes in circumstances after their preparations.

c. Electricity Generation in the Past Year・Electricity Generation in the Past Year describes the numerical data and information, which are not processed for theaccounting audit and other procedures, supplied by the current owner of the Property to be Purchased, in principle as
they are without being edited. These data are provided for reference purposes only, and may be incomplete or inaccurate.
Electricity Sold represents the total volume of electricity in the specified month after the per-diem calculation of theelectricity measured on the meter reading day of the month for the simple number of days and electricity in the specified
month after the perdiem calculation of the electricity measured on the meter reading day of the following month for thesimple number of days on the basis of electricity purchased stated in the notice of electricity purchased issued by thepurchasing electric utilities operator. This value is not an indicator stipulated in the corporate accounting standards thatare generally recognized as fair and appropriate in Japan. It is not necessarily

・

calculated in the same manner as in the accounting treatment adopted by Takara Leben Infrastructure Fund, and thecircumstances surrounding the Property to be Purchased serving as a precondition for the calculation may not be thesame as those after the purchase made by Takara Leben Infrastructure Fund. As a result, the electricity generation in thepast year is not necessarily identical to the electricity generation in the future. It does not ensure, guarantee or forecast
the electricity generation in the future, and may differ significantly from the actual electricity generation in the future
depending on the circumstances.

(2) Grounds for Purchasing
The Property to be Purchased are renewable energy generation facilities and others that comply with the conditions and policy
for asset management prescribed in the certificate of incorporation of the Investment Corporation. The purchase of these Property
is aimed at expanding the scale of the assets of the Investment Corporation and at increasing the net income per unit by improving
the profitability of the Investment Corporation and by purchasing them without recourse to fund raising without increasing capital.
It is for these reasons that the decision on the purchase in question has been made.

4

(3) Summary of Specific Property
S-26

LS Hanno Misugidai

Category

Solar power generation facility, etc.

Property Overview
Type of Specific Property

Renewable energy power generation facility and superficies

Scheduled Purchase Date

June 28, 2019

Estimated Purchase Price

Assessed Value of Power Plant(as-of date)

Type of Renewable Energy Power

Solar power

Generation Facility

generation facility

758,200,000 yen

Electricity Generation

Takara Leben Co.,

Utilities Operator

Ltd.

Purchasing Electric

TEPCO Energy

Utilities Operator

Partner, Inc.

FIT Price

32 yen per kWh

750,000,000 yen to
1,200,000,000 yen

Outline of(February 28, 2019)

Specific
Contract

The day before thefirst meter reading

Appraised Value of Land

460,000,000 yen

Expiration Date of

day after the lapse of(as-of date)(February 28, 2019)

Supply Receipt Period

240

monthsfrom

December 10, 2015
(including this date)
LocationLand

Misugidai 6, Hanno, Saitama
Lot Number

7-1 and others (6 lots)

Panel TypeCIS

Use District

Urbanization control area

Panel Output

2,402.40kW

Area

48,837 sq. meters

Number of Panels

14,560Type of Right

Ownership

Panel Manufacturer

Solar Frontier K.K

PCS Manufacturer

Fuji Electric Co., Ltd.

Approval Date

Supply Start
Date

February 13, 2015

December 10, 2015

Facility(Note)

Facility

Remaining
Procurement

16 years and 5 months

Price
Collateral

EstimatedYear 12,899.15MWh

AnnualYear 102,754.20MWh

Year 20

2,609.24MWh

EstimatedYear 1

13.78%

Facility

Year 1013.09%

Year 20

12.40%

Electricity
Generation

Platform Foundation

December 9, 2035

Structure

PeriodProcurement

1,990.00kW

Ratio

Expiration Date

Ltd

Electricity Output

Operation

Periodof Procurement

Sata Construction Co.,EPC Operator

32 yen per kWh

Type of Right

None

5

Screw pile foundation

Property RightToyo
Operator

Takara Leben Co., Ltd.

O&M Provider

Bldg.Maintenance
Co.,Ltd.

This property is invested in independently by Takara Leben Infrastructure Fund and is not jointly
invested. Among the risks specified in the risk control policy, the risk of joint investors does not apply.
State of Compliance with Risk

The other risks, such as the business risk, the risk of market and economic conditions and demandControl Policychange, the risk of demand of specific consumers, the credit risk (risk of limited users), the liquidity
risk and the risk of institutional changes apply. The property will be operated in compliance with thecontrol policy specified in the risk control policy in order to properly control these risks.
- Introduction of renewable energy that helps suppress the generation of carbon dioxide, one of thegreenhouse gases, at the time of electricity generation to contribute to environmental improvement
and increase Japan’s presence in the international community

Public Traits of Property- Increase in the use of renewable energy amid significant dependency on the import of fossil fuelsfrom overseas for power generation purposes to improve the energy self-sufficiency rate
- Effects of regional revitalization such as the creation of jobs related to renewable energy in the local
community and the effective utilization of idle land

Notes
- No check of the boundary between this property and the neighboring land was made with any witness or against any document.
However, there had been no conflict with the owner of the neighboring land as of the date of this document.
- Two stormwater catch basins on this property cross the boundary with the adjacent land on the west side. Permission for occupancyof the intruding part of the land has been obtained from the mayor of Hanno.
- Two fences on this property cross the boundary with the adjacent land on the north side. Permission for occupancy of the intruding
part of the land has been obtained from the mayor of Hanno.
- Nine gabion baskets and two connection from installed stormwater catch basin to near ditch cross the boundary with the adjacentland on the west side. Permission for occupancy of the intruding part of the land has been obtained from the mayor of Hanno.
- A power cable is installed between pieces of land concerned with the property in a manner whereby the cable crosses a road. For
this installation, permission for occupancy of the road has been obtained from the mayor of Hanno.
(Note) It is stipulated that in the event that the purchasing electric utilities operator gives prior notice of the date when the value of the electricity meter is recordedin the recording-type measuring apparatus (hereinafter referred to as “the date of measurement” in this note), the supply period shall end on the day before
the date of measurement.

6

Property Characteristics
Property Characteristics<Location>
This property is located in the Hanno, Saitama. It is about 2.8 km south west of Hanno Station on the Seibu Ikebukuro Line, and about 20
km to Tokorozawa Station.
<Climate Conditions>
At Ome, which is the nearest point of meteorological observation, the annual sunshine duration is 1,888.6 hours, which is nearly equal to thenationwide average of 1,896.5 hours.
Its rainfall is not particularly high and wind is not strong. The local climate conditions are considered to have no factor that particularly
hinders the implementation of solar power generation.
<Facility>
Panels made by Solar Frontier K.K and power conditioner system made by Fuji Electric Co., Ltd. are utilized.
Electricity Generation in the Past Year
PeriodElectricity Sold

From: May 1, 2018
To: April 30, 2019
May 2018

June 2018

July 2018

August 2018

325,842KWh

263,443KWh

305,974KWh

290,790KWh

September 2018

October 2018

November 2018

December 2018

205,233KWh

193,209KWh

176,477KWh

202,196KWh

January 2019

February 2019

March 2019

April 2019441,927KWh

481,140KWh

545,347KWh

619,642KWh(4) Outline of Lease
For the Property to be Purchased, the following describes the details of the agreement on the lease of the power generation facility
and others that will be concluded by Takara Leben Infrastructure Fund after its purchase.
The descriptions include the sections on Lessee, Lease Period, Rent, Security Deposit, Renewal at Time of Expiration, Rent
Revision, Midterm Cancellation, Penalty and Method of Agreement Renewal. These sections reflect the details of the agreement on
the lease of the power generation facility and others that will be effective on the scheduled date of purchase of the Property to be
Purchased. Guaranteed Minimum Rent represents the total of the guaranteed minimum amount of monthly rent stipulated in theagreement on the lease of the power generation facility and others for each year from the start date of the lease. However, the firstyear (Year 1) is defined to set from June 28, 2019 to May 31, 2020 and Guaranteed Minimum Rent for Year 1 represents prorated
guaranteed minimum rent for June 2019 and the total of the guaranteed minimum amount of monthly rent stipulated in the agreementon the lease of the power generation facility. In addition, the twenty year (Year 20) is set from June 1, 2038 to June 27, 2039, andGuaranteed Minimum Rent for Year 20 represents prorated guaranteed minimum rent for June 2039 and the total of the guaranteed
minimum amount of monthly rent stipulated in the agreement on the lease of the power generation facility.

7

S-26

LS Hanno Misugidai

LesseeTakara Leben Co., Ltd.

Lease Period

From June 28, 2019 to June 27, 2039
The guaranteed minimum rent and the performance-linked rent are calculated in the manners specified below.
1.

The guaranteed minimum monthly rent shall be identical to the estimated revenue of electricity sales for each month,exclusive of consumption tax and local consumption tax. The guaranteed minimum rent for any period of less than
one month shall be calculated on a per diem basis, and any fraction of less than one yen shall be disregarded. However,the calculation of the security deposit shall use the amount of the guaranteed minimum rent exclusive of consumption
tax and local consumption tax. The 75 percentile of excess probability of estimated electricity generation shall be thestandard percentile on the basis of which the guaranteed minimum rent is calculated.

2.

The monthly performance-linked rent (X), which excludes consumption tax and local consumption tax, shall becalculated using the formula shown below. Any fraction of less than one yen generated in the calculation shall be
disregarded(1) If the actual power sales amount (x) does not exceed the estimated power sales amount (y) X = 0(2) If the actual power sales amount (x) exceeds the estimated power sales amount (y) X = (x - y) × 0.5
Where X is the monthly performance-linked rent, x is the actual power sales amount for the month concerned and yRent

is the estimated electricity sales revenue for the month concerned.
3.

As used in 2 above, the actual power sales amount for the month refers to the amount calculated by adding thefollowing amount to the charge based on the total of the electricity volume for the month calculated on a per diembasis from the volume measured on the meter reading date of the month concerned and that for the following monthcalculated on a per diem basis from the volume measured on the meter reading date of the said month.
(1) The amount of compensation for output suppression implemented for the month concerned(2) The insurance benefit received by the lessee (including the amount received by the security interest holder or theholder of the transferred security interest in connection with the security interest set on the insurance benefit claim
right of the lessee) under the business interruption insurance policy with the lessee as the insured to cover the lostinterest for the month in association with the solar power generation facility, including the incidental substation facility
and other related facilities, and to cover the expenses for preventing a decrease in revenue

4.

In the event of calculating the performance-linked rent for a period of less than one month in accordance with 2 above,
the actual power sales amount for the month calculated in accordance with the objective of 3 above and the estimatedpower sales amount for the month calculated on a per diem basis shall be used.

In the event that the operating income stated in the consolidated or non-consolidated statement of income for any fiscal
Security
Depositperiod during the lease period becomes negative for the first time, the lessee shall provide the lessor under the agreementon the lease with the amount equivalent to one quarter of the guaranteed minimum rent (rounded down to the nearest yen)for one calendar year under which the fiscal period falls as a security deposit for the purpose of offering security for all theliabilities of the lessee to the lessor pursuant to the agreement on the lease.

Renewal at
Time of
Expiration

If the lessor or the lessee intends to extend the agreement on the lease, it shall provide the other party with notice of its
intention not later than six months prior to the date of expiration of the lease period. In this event, the lessor and the lessee
shall enter into consultations in good faith regarding whether or not to extend the agreement and regarding its terms andconditions, and shall re-execute the agreement if they reach an agreement to do so as a result of the consultations.
In the event that inflation occurs, thereby lowering the real value of the rent, the lessee shall consider changing or increasing

Rent Revision

the electricity selling destinations upon request from the lessor. If the selling destinations are changed as a result ofconsideration, the lessee shall enter into consultations in good faith with the lessor regarding the selling prices applicableto the new selling destinations.

Midterm

1.

The lessor or the lessee may request the cancellation of the agreement on the lease at any time after June 30, 2029 by8

Cancellation

giving written notice to the other party; provided, however, that the notice of cancellation shall reach the other party
on December 31, 2028 (or, if this date is a non-business day of the lessor or the company engaging in asset
management of the property, on the previous business day) or earlier, and a notice failing to reach the other party on
the said date or earlier shall have no effect for cancellation.
2.

After the date until which cancellation is possible as specified in 1 above, the lessor and the lessee shall enter into
consultations in good faith regarding whether or not it is necessary to establish a provision for the midterm
cancellation of the agreement on the lease during the subsequent lease period and, if it is determined to be necessary,
regarding its details.

Penalty

None

Method ofAgreement

None

RenewalGuaranteed
Minimum Rent

Year 1

Year 2

Year 3

Year 4

Year 579,973,127 yen

86,425,915 yen

85,983,786 yen

85,541,658 yen

85,099,546 yen

Year 6

Year 7

Year 8Year 9Year 1084,657,434 yen

84,215,323 yen

83,773,211 yen

83,331,099 yen

82,888,987 yen

Year 11

Year 12

Year 13

Year 14

Year 15

82,446,875 yen

82,004,764 yen

81,562,651 yen

81,120,539 yen

80,678,410 yen

Year 16

Year 17

Year 18

Year 19

Year 20

80,236,284 yen

55,240,588 yen

24,797,512 yen

24,659,354 yen

26,457,102 yen(5) Outline of Valuation Reports
The following outlines the valuation reports that Takara Leben Infrastructure Fund commissioned
PricewaterhouseCoopers Sustainability LLC to prepare by valuing the Property to be Purchased in accordance with theInvestment Trust Act and other laws and ordinances, the regulations established by the Investment Trusts Association and the asset
valuation method and standards stipulated in the certificate of incorporation of Takara Leben Infrastructure Fund. Non-Taxation
Period refers to the period during which the distributions may be posted as deductible expenses given that Takara Leben
Infrastructure Fund fulfills the pay-through requirements of the Act on Special Measures Concerning Taxation, whereas Taxation
Period refers to the period during which Takara Leben Infrastructure Fund is unable to fulfill the pay-through requirements of thesaid Act. The Taxation Period commences on June 1, 2036.
Each of the valuations merely reflects the judgment and opinion of the valuer at a certain time, and does not guarantee its
appropriateness, accuracy or possibility of transaction at the price equivalent to the assessed value.
There are no special relationships of interest between PricewaterhouseCoopers Sustainability LLC, which carried out thevaluations, and Takara Leben Infrastructure Fund or the Asset Manager.
The position and the responsibility of the valuer are as follows.
(i) The valuation service provided by the valuer does not fall under the guarantee operations. The va luer provides
no guarantee whatsoever in respect of the assessed value.
(ii) The assessed value is disclosed to investors at the responsibility of Takara Leben Infrastructure Fund inaccordance with the Valuation Report obtained from the valuer. The value r assumes no obligation or liability toinvestors.
(iii) The information and materials on the basis of which the valuation is made are supplied by the Asset Manager.

9

The valuer is not under any obligation to verify their credibility, accuracy or completen ess.
S-26

LS Hanno Misugidai

Assessed Value

750,000,000 yen to 1,200,000,000 yen

ValuerPricewaterhouseCoopers Sustainability LLC

As-of Date

February 28, 2019
Item
Non-Taxation

Discount Rate
(WACC)

PeriodResults

Description
The values represent the average of the capital cost and the liability

1.3%

cost estimated from the data of the TOPIX beta values of brands thatmake up the Tokyo Stock Exchange REIT, used as the peer company,

Taxation Period

from May 2014 to February 2019 weighted for the period of the

1.1%

valuation
The value is calculated using the discounted cash flow (DCF) method
Assessed value

among different valuation methods of the income approach,

1,200,000,000 yen

according to which the future free cash flow is discounted to thepresent value
The values are obtained by assuming the rate of 7% as the real IRR,

Non-Taxation
Periodwhich is estimated to be close to the median based on the number of

6.0%

cases in terms of the internal rate of return (IRR) of facilities with
outputs of 1,000 kW and more put into operation in the October-

Discount

December 2014 period as stated in Reference 10: IRR Level ofRate(IRR)

Facilities Commencing Operation in Opinions on FY2015 Purchase
Taxation Period

Price and Period and by adjusting it by 1 percentage point, which is

6.0%

the difference between the pre-tax IRRs before and after the profit
consideration period under the feed-in tariff scheme projected by the
Purchase Price Calculation Committee.
The value is calculated using the discounted cash flow (DCF) method
Assessed value

among different valuation methods of the income approach,

750,000,000 yen

according to which the future free cash flow is discounted to thepresent value

Other Matters to which the Valuer Paid Special Attention for－

Valuation Purposes10(6) Outline of Real Estate Appraisal Reports
The following outlines the real estate appraisal reports that Takara Leben Infrastructure Fund commissioned CBRE

K.K. toprepare by appraising the land in the Property to be Purchased in accordance with the Act on Real Estate Appraisal and with theReal Estate Appraisal Standards and the Matters to Note on Implementation of the Real Estate Appraisal Standards stipulated by
the Ministry of Land, Infrastructure, Transport and Tourism. Each of the realestate appraisals merely reflects the judgment andopinion of the appraiser at a certain time and does not guarantee its appropriateness, accuracy or possibility of transaction at theprice equivalent to the appraised value.
There are no special relationships of interest between CBRE K.K. which carried out the real estate appraisals, and Takara Leben
Infrastructure Fund or the Asset Manager.
S-26

LS Hanno Misugidai

Appraised Value (Land)

460,000,000 yen

Real Estate Appraiser

CBRE K.K.

As-of Date

February 28, 2019
Item

Value by DCF Method (Facility andLand)

Results

Description

924,000,000 yen－
Appraised in overall consideration of the discount rate based on the

Discount Rateaccumulated risk premiums, the expected discount rate based on

4.0%

interviews with investors, the location, age, and state of operation of
the solar power generation facility, contractual conditions and others

Terminal Capitalization Rate
Indicated Value Using Cost
Approach (Facility and Land)
Land to Value Ratio－－

884,000,000 yen－

49.75%－

Other Matters to Which the Appraiser Paid Special Attention for－Appraisal Purposes11(7) Outline of the Opinion Report on the Profitability and Continuity of the Profitability of Infrastructure Investment
Property
The opinion reports mentioned in the title above have not been obtained due to fact that the Property to bepurchased satisfies the criteria for exemption of the acquisition of these opinions in accordance with the Securities
Listing Regulations and their Enforcement Rules of Tokyo Stock Exchange, Inc.
(8) Outline of the Seismic Risk Assessment
As a part of the due diligence process of acquiring the property, TIF has asked Tokio Marine & Nichido Risk Consulting
Co., Ltd. to conduct seismic risk assessment. Seismic risk assessment evaluate.
The PML values in the seismic risk analysis assessment for the Property to be Purchased prepared by Tokio Marine & Nichido
Risk Consulting Co., Ltd. are provided below. The description of the seismic risk assessment is the solo opinions of survey operator
and the Investment Corporation will not guarantee the validity and guarantee of its contents.
There are no special relationships of interest between Tokio Marine & Nichido Risk Consulting Co., Ltd and
Takara Leben Infrastructure Fund or the Asset Manager.
Seismic Risk Assessment Report
Property

Property Name

No.
S-26
(Note)LS Hanno Misugidai

Survey Operator
Tokio Marine & Nichido Risk Consulting Co., Ltd.

PML (note)(%)
Below 0.1

PML stands for probable maximum loss, and represents the ratio of a physical loss at 90% probability of non-exceedance in the event of seismic movementwith a 10% excess probability in the next fifty years (equivalent to that at recurrence intervals of 475 years) that is thought to cause the greatest possible
loss to the facility or the facilities concerned to the re-procurement price.

(9) Outline of the Party serving as the operator, lessee and electricity generation utilities operator
Takara Leben Co., Ltd., serves as the operator, lessee and electricity generation utilities operator, and its outline is as follows.
Name

Takara Leben Co., Ltd

Location

1-8-2 Marunouchi, Chiyoda-ku, Tokyo, Japan

Representative and Title

Kazuichi Shimada, President and Representative Director, CEOBusiness

It engages in sales of newly built condominium units, mainly in the Tokyo region. It embarked on the largescale solar power plant business in 2013. Capitalizing on its wide-ranging business operation expertise
cultivated through the past development of condominiums with solar panels, it managed and operated 33
solar power plants with a total output of 102.78 MW as of the end of May 2019.
As of the date of this document, there are 10 personnel engaged in the operation. The person responsible forit has at least two years’ experience in management and operation.

Capital4,819 million yen (as of May 31, 2019)

Date of Establishment

September 21, 1972

Net Asset

47,734 million yen (as of May 31, 2019)

Total Asset

184,893 million yen (as of May 31, 2019)

Major Shareholders and Equity

1. Yoshio Murayama: 25,633 thousand shares (23.64%)

Positions2. The Master Trust Bank of Japan, Ltd. (Trust Account): 4,306 thousand (4.43%)(as of May 31, 2019)

3. JPMC GOLDMAN SACHS TRUST JASDEC LENDING ACCOUNT: 2,482 thousand (2.29%)

12

Relationship between Takara Leben Investment Corporation and the Asset Manager and the Company Concerned
Capital RelationshipThe company concerned holds 14.2% of the outstanding investment units in Takara Leben Infrastructure
Fund as of the June 26, 2019. The company is the wholly owning parent company of the Asset Manager andfalls under the Interested Persons pursuant to the Investment Trust Act.

Personnel Relationship

The Asset Manager has 2 personnel on loan from the company concerned. One director and one auditor of
the Asset Manager hold dual posts.

Business RelationshipThe company concerned invests in Takara Leben Infrastructure Fund and in the Asset Manager. It has
executed an agreement on the lease of power generation facilities and others in association with the Property
to be Purchased with Takara Leben Infrastructure Fund. It has also concluded a sponsor support agreement
and a trademark license agreement with Takara Leben Infrastructure Fund and with the Asset Manager.

Whether or not it falls

The company concerned falls under the category of affiliated parties. As mentioned above, it corresponds tounder affiliated parties

an Interested Person for the Asset Manager as stipulated in the Investment Trust Act.

13

3. Status of Asset Purchaser and Other Parties(1) Outline of the Party from whom the Property are Purchased
The Property to be Purchased are as follows.
Name

Sanko Office Management Co., Ltd.

Location

4-6-1 Ginza, Chuo-ku, Tokyo, Japan

Representative and Title

Miyo Hajime, President and Representative Director, CEOBusiness

Real estate brokerage, asset management, leasing management and consulting.

Capital

100 million yen (as of April 30, 2019)

Date of Establishment

December 13, 2011

Net Asset

Not disclosed (Note)

Total Asset

Not disclosed (Note)

Major Shareholders and Equity

Not disclosed (Note)

Positions
Relationship between Takara Leben Investment Corporation and the Asset Manager and the Company Concerned
Capital Relationship

There is no capital relationship to report.

Personnel Relationship

There is no personnel relationship to report.

Business Relationship

There is no business relationship to report.

Whether or not it falls
under affiliated parties

The company concerned does not falls under the category of affiliated parties.

(Note) Net Asset, Total Asset, and Major Shareholders and Equity Positions are not disclosed as consent has not been obtained from the seller14(2) Status of Asset Purchaser and Others
The purchases of property from the party considered to be equivalent of special relationship (Note) are as follows.
(Note) Although the preceding owner is not the party with a special relationship, however the second preceding owner with special relationship had entered intotransaction with the preceding owner with premises of delivering to the asset to the Investment Corporation within a year in order to adjust schedules ofasset sale as well as acquisition timing for the Investment Corporation, therefore the preceding owner is considered as a party considered to be equivalentof special relationship.

Preceding Owner
Company NameSanko Office Management Co., Ltd.

Second Preceding Owner
Takara Leben Co., Ltd.

Third Preceding Owner
A party not in a special relationship ofinterest

Relationship withthe party in a
special―relationship of

It is a major shareholder of the AssetManager.

―interest
Background of
Purchase

For the purpose of the development of
For the purpose of investment

renewable energy power generation―

facilities
Purchase Price

Not disclosed (Note 1)―(Note 2)―

Date of Purchase

March 2019

March 2015―

(Note 1) Purchase price of land and generation facilities are not disclosed as consent has not been obtained from the preceding owner(Note 2) Purchase price of the second preceding owner is emitted as the second preceding owner had owned the asset for more than a year

4. Outline of Brokerage
There are no relevant matters.
5. Future Outlook
The impacts of purchasing the asset on the forecast of operating result for the fiscal period ending November 30, 2019(8th Fiscal Period) (June 1, 2019 to November 30, 2019), fiscal period ending May 31, 2020 (9th Fiscal Period) (December 1,
2019 to May 31, 2020) are not significant and there is not revision of the forecast of the operating results. In addition,
the forecasts of the operating results for the fiscal period ended May 31, 2019 (7th fiscal period) (December 1, 2018
to May 31, 2019) that were announced on January 15, 2019 have not been revised.

End
TIF Website: http://tif9281.co.jp/en/<Attached Material>
Reference: Portfolio after the Purchase of the Property to be Purchased

15

The following shows the property owned and the Property to be Purchased and their respective locations, prices, ratios anddates or scheduled dates of purchase.
Property
No.

Property Name

LocationPrice (MY)Ratio (%)

(Note 1)

(Note 2)

(Scheduled) Date of PurchaseS-01

LS Shioya

Shioya, Tochigi

1,356

4.4

S-02

LS Chikusei

Chikusei, Ibaraki

575

1.9

S-03

LS Chiba Wakaba-ku

Chiba, Chiba

337

1.1

S-04

LS Miho

MIho, Ibaraki

592

1.9

S-05

LS Kirishima Kokubu

Kirishima, Kagoshima

972

3.1

June 2, 2016

S-06

LS Sosa

Sosa, Chiba

693

2.2

June 2, 2016

S-07

LS Miyagi Osato

Osato, Miyagi

850

2.7

June 2, 2016

S-08

LS Mito Takada

Mito, Ibaraki

1,037

3.3

June 2, 2016

S-09

LS Aomori Hiranai

Hiranai, Aomori

734

2.4

June 2, 2016

S-10

LS Tone Fukawa

Tone, Ibaraki

1,315

4.2

June 2, 2016

S-11

LS Kamisu Hasaki

Kamisu, Ibaraki

491

1.6

February 7, 2017

S-12

LS Tsukuba Bochi

Tsukuba, Ibaraki

1,013

3.3

June 1, 2017

S-13

LS Hokota

Hokota, Ibaraki

760

2.5

June 1, 2017

S-14

LS Nasu Nakagawa

Nakagawa, Tochigi

8,782

28.3

June 1, 2017

S-15

LS Fujioka A

Tochigi, Tochigi

271

0.9

June 1, 2017

S-16

LS Inashiki Aranuma 1

Inashiki, Ibaraki

1,061

3.4

S-17

LS Fujioka B

Tochigi, Tochigi

1,189

3.8

June 1, 2017

S-18

LS Inashiki Aranuma 2

Inashiki, Ibaraki

483

1.6

June 1, 2017

S-19

LS Sakuragawa Shimoizumi Sakuragawa, Ibaraki

1,098

3.5

December 1, 2017

S-20

LS Fukushima Yamatsuri

Yamatsuri, Fukushima

532

1.7

December 1, 2017

S-21

LS Shizuoka Omaezaki

Omaezaki, Shizuoka

493

1.6

February 28, 2018

S-22

LS Mie Yokkaichi

Yokkaichi, Mie

805

2.6

June 1, 2018

S-23

LS Sakuragawa Nakaizumi

Sakuragawa, Ibaraki

1,165

3.8

June 1, 2018

S-24

LS Shirahama

Kamitonda, Wakayama

3,146

10.2

June 1, 2018

S-25

LS Takahagi

Takahagi, Ibaraki

485

1.6

June 1, 2018

S-26

LS Hanno Misugidai

Hanno, Saitama

758

2.4

June 28, 2019

31,000

100.0

―

Total

June 2, 2016
June 2, 2016
October 12, 2017
June 2, 2016
November 16, 2017
June 2, 2016
November 27, 2017

June 1, 2017
October 2, 2017

(Note 1) The price for properties represents the central value calculated in accordance with item 1 of paragraph 2 of Article 38 in the certificate of incorporationof Takara Leben Infrastructure Fund within the range of the assessed value of the power plant as of November 30, 2018 specified in the valuation reportobtained from PricewaterhouseCoopers Sustainability LLC. The price for the Properties to be Purchased represents purchasing price.
(Note 2) The ratio represents the ratio of the price of the specific property to the total prices of the owned properties and the Property to be Purchased, rounded to
the first decimal place. For this reason, the total of the ratios of individual properties may not be identical to the total ratio of the portfolio.

16