Disclaimers
This document has been prepared solely for the purpose of providing U.K. and Dutch investors
with certain information under Article 23 of the European Alternative Investment FundManagers Directive (European Directive 2011/61/EU) (the “AIFMD”) as implemented in theirrespective jurisdictions. Accordingly, you should not use this document for any other purpose.
Netherlands
The units of Takara Leben Infrastructure Fund, Inc. (“TIF” or the “AIF”) are being marketed in
the Netherlands under Section 1:13b of the Netherlands Financial Supervision Act (Wet op het
financieel toezicht, or the “Wft”). In accordance with this provision, Takara Asset Management
Co., Ltd. (“TAM” or the “AIFM”) has notified the Dutch Authority for the Financial Markets(Authoriteit Financiële Markten, the "AFM") of its intention to offer these units in the
Netherlands. The units of TIF will not, directly or indirectly, be offered, sold, transferred ordelivered in the Netherlands, except to or by individuals or entities that qualify as qualified
investors (gekwalificeerde beleggers) within the meaning of Article 1:1 of the Wft. As aconsequence, neither the AIFM nor TIF is subject to the license requirement pursuant to the Wft.
Consequently, the AIFM and TIF are only subject to limited supervision of the AFM and theNetherlands Central Bank (De Nederlandsche Bank, “DNB”) for the compliance with theongoing regulatory requirements as referred to in the Netherlands law implementation of Article
42 of the AIFMD. This Article 23 AIFMD Prospectus is not subject to approval by the AFM. No
approved prospectus is required to be published in the Netherlands pursuant to Article 3 of theRegulation (EU) 2017/1129 (the “Prospectus Regulation”) as amended and applicable in the
Netherlands.
United Kingdom
Units of TIF are being marketed in the United Kingdom pursuant to Article 59 of the United
Kingdom Alternative Investment Fund Managers Regulations 2013. In accordance with thisprovision, the AIFM has notified the Financial Conduct Authority (the “FCA”) of its intention tooffer these units in the United Kingdom. For the purposes of the United Kingdom Financial
Services and Markets Act 2000 (“FSMA”) TIF is an unregulated collective investment scheme
which has not been authorized by the FCA. Accordingly, any communication of an invitation or
inducement to invest in TIF may only be made to (i) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005,
as amended, or “the Order”; or (ii) high net worth companies falling within Articles 49(2)(a) to(d) of the Order and other persons to whom it may lawfully be communicated (all such persons
referred to under (i) and (ii) of this paragraph, together being referred to as “Relevant Persons”).
In the United Kingdom, this document and its contents are directed only at Relevant Persons andmust not be acted on or relied on by persons who are not Relevant Persons. The transmission ofthis document and its contents in the United Kingdom to any person other than a Relevant Person
is unauthorized and may contravene the FSMA and other United Kingdom securities laws andregulations.
European Economic Area and United Kingdom

In addition to the restrictions under the AIFMD, the Units of TIF are not intended to be offered,sold or otherwise made available to and should not be offered, sold or otherwise made available
to any retail investor in the European Economic Area (“EEA”) or the United Kingdom. For these
purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined inpoint (11) of Article 4(1) of Directive 2014/65/EU, as amended (the “MiFID II”); (ii) a customer
within the meaning of Directive (EU) 2016/97, where that customer would not qualify as aprofessional client as defined in point (10) of Article 4(1) of the MiFID II; or (iii) not a qualified
investor as defined in the Prospectus Regulation, as amended. Consequently no key information
document required by Regulation (EU) No 1286/2014 (the “PRIIPs Regulation”) for offering or
selling the Units of TIF or otherwise making them available to retail investors in the EEA or theUnited Kingdom has been prepared and therefore offering or selling the Units of TIF orotherwise making them available to any retail investor in the EEA or the United Kingdom may
be unlawful under the PRIIPs Regulation.

2

Article 23 (1)(a)Objectives of the AIF

Investment strategy

Types of assets the AIF
may invest inTechniques it may
employ and all
associated risks

3

TIF’s objective is to build a high-quality portfolio of renewable energy projects with a focus
on solar energy projects. Further, TIF seeks to contribute to the global environment bybuilding sustainable regional communities and promoting the use of renewable energy.
TIF’s non-binding investment policies contemplate a portfolio composed almost entirely ofsolar energy projects, and TIF seek to maintain the percentage of its portfolio that consistsof solar energy projects at 90% or more by acquisition price.
We plan to pursue our investment objective primarily through the following strategies: Realize external growth by leveraging the Sponsor’s pipeline and network; Achieve more growth opportunities by diversifying acquisition schemes; Achieve stable and predictable revenue through a balanced portfolio, with a focus onareas having high electricity demand; Minimize operational risks and costs.
Securities, real properties, rights to lease of real properties, superficies rights and otherassets, including renewable power generating facilities, land leasehold rights and surface
rights and trust beneficiary interests in renewable power generating facilities.
TIF makes investments primarily in solar energy generation facilities located in Japan andoperates all of its renewable energy power generating facilities by leasing them to third
parties. The principal risks with respect to investment in TIF are as follows:• The Japanese government may change or abolish Japan’s FIT scheme for renewableenergy;• The Japanese government may adjust or decrease the FIT purchase price or purchaseperiod under Japan’s FIT scheme;• The purchase price of electricity and other contractual terms are expected to becomeless favorable once the purchase period under the FIT scheme has expired;• Eligibility for Japan’s FIT scheme requires TIF’s lessees to obtain certification of theirrenewable energy generation business plans, and METI has the authority to revoke suchcertification;• Fluctuations in actual energy output of TIF’s solar energy projects may decrease TIF’s
distributions to unitholders and reduce the market value of TIF’s units;• The amount of electricity generated by the solar energy projects in TIF’s anticipatedportfolio is difficult to forecast and may be lower than expected;• TIF’s operating revenues may decrease if the electric utility operators are unable topurchase electricity generated by TIF’s solar energy projects;• Illiquidity in the Japanese solar energy project market may limit TIF’s ability to grow or
adjust TIF’s portfolio;• There are a limited number of purchasers of utility-scale quantities of electricity inJapan, which exposes us and TIF’s solar energy projects to additional risks;• TIF may not be able to acquire projects in a manner that is accretive to earnings;• TIF may not close all or any of TIF’s anticipated acquisitions of solar energy projects;• Increases in prevailing market interest rates may increase TIF’s interest expense andmay result in a decline in the market price of TIF’s units;• TIF's anticipated portfolio consists exclusively of solar energy projects and TIF’s rent
revenues are linked partially to revenues from the sale of electricity while TIF’s operating
expenses are largely fixed;• TIF’s rent revenues are partially linked to energy output projections based on expert
reports, which are subject to significant uncertainties;• Renewable energy projects are subject to risks of defects, breakdowns and accidents
that may adversely affect TIF’s financial condition or results of operations;• If TIF is unable to secure rights to land for electricity transmission lines in the locations
TIF requires, TIF may incur additional expenses in acquiring such rights in alternative
locations, or TIF may be unable to transmit the electricity generated by TIF’s solar energy
projects to purchasers;• The geographic concentration of TIF’s portfolio in the Kanto area could have a material
adverse effect on TIF’s business;• TIF’s reliance on the Sponsor as the operator of all of solar energy projects in TIF’s
anticipated portfolio creates risks for TIF’s business;• TIF is dependent on the Sponsor for substantially all of TIF’s rent revenues anddeteriorations in the financial conditions of the Sponsor may adversely affect TIF’s
revenues;• TIF’s reliance on the Sponsor and other Takara Leben Group companies could have amaterial adverse effect on TIF’s business;• There are potential conflicts of interest between us and certain Takara Leben Group
companies, including the Asset Manager;• TIF may incur unexpected expenses, expenditures or other losses for repair ormaintenance of TIF’s projects;• TIF may suffer large losses if any of TIF’s projects incurs damage from a natural or manmade disaster or acts of violence or war;
• TIF relies on expert reports for land appraisals, valuation reports and PML percentages,
which are subject to significant uncertainties;• TIF’s success depends on the performances of service providers to which TIF is required
to entrust various key functions; and• TIF’s failure to satisfy a complex series of requirements pursuant to Japanese tax
regulations would disqualify us from certain taxation benefits and significantly reduce
TIF’s cash distributions to TIF’s unitholders.
In addition, TIF is subject to the following risks:
 risks related to monetary easing policies;
 risks related to interconnections utilities owned and operated by third parties;
 risks related to the availability of the electricity grids;
 risks related to disputes with neighbors;
 risks related to revision or termination of power purchase agreements andinterconnection agreements;
 risks related to electricity generation business operators;
 risks related to technological advances and innovations; risks related to the financial conditions of the special purpose companies that lease
TIF’s projects and are expected to outsource the operation of facilities;
 the Asset Manager has limited experience in operating an infrastructure fund; the past experience of the Takara Leben Group or the Asset Manager in the Japanesesolar energy market is not an indicator or guarantee of CSIF’s future results;
 risks related to the sponsor support agreement; risks related to inability to obtain financing for future acquisitions; risks related to liquidity under debt financing arrangements;
 risks related to TIF’s policy to make distributions to its unitholders in excess of TIF’s
retained earnings or repurchase of TIF’s units;

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Any applicable
investment restrictions

risks related to a high LTV ratio;risks related to downgrading of credit rating;risks related to impairment losses;
risks related to cost of complying with regulations applicable to the projects;
risks related to non-solar renewable energy projects;
risks related to a limited operating history;risks related to relatively small asset size;
risks related to defect in land;risks related to reclaimed land;risks related to artificially developed land;risks related to industry and market data;risks related to the environmental assessments made prior to TIF’s ownership;
risks related to climate change;risks related to security breaches and other disruptions;risks related to forward commitment contracts;
risks related to the operators and operation and maintenance service providers;risks related to dependence on the efforts of the AIFM’s key personnel;risks related to the tight supervision by the regulatory authorities;risks related to Japanese GAAP;
risks related to the tax authorities’ disagreement with the AIFM’s interpretations of
the Japanese tax laws and regulations;risks related to changes in Japanese tax laws;
TIF’s ownership rights in some of its projects may be declared invalid or limited;risks related to loss of rights in a property due to the recharacterization of purchaseof the property as a secured financing;risks related to holding the underlying land for the solar energy projects in the formof a leasehold interest or surface rights;
risks related to holding the property in the form of co-ownership interests (kyōyūmochibun);risks related to adverse changes in applicable laws;
risks related to unitholder’s limited control over changes in TIF’s investment policies;
risks related to the rights of unitholders in an infrastructure fund;risks related to AIFMD.

TIF is subject to investment restrictions under Japanese laws and regulations, including the
Act on Investment Trusts and Investment Corporations (the “ITA”) and the Financial
Instruments and Exchange Act (the “FIEA”). These restrictions require that TIF must invest
primarily in specified assets as defined in the ITA. Specified assets include, but are notlimited to, securities, real estate, leaseholds of real estate, and surface rights (chijō-ken)(i.e. the right to use land for the purpose of having a structure on it), as well as trust
beneficiary interests in securities, real estate, leaseholds of real estate and surface rights.
Pursuant to the ITA, investment corporations may not independently develop land for
housing or to construct buildings, but may outsource such activities in certain
circumstances.
In addition, the basic investment policy of TIF is set out in TIF’s Articles of Incorporation.
Moreover, the Asset Manager has established investment guidelines to provide moredetailed policies based on this basic policy. However, the Asset Manager may amend or5revise these investment guidelines from time to time without a vote of TIF’s unitholders or
TIF’s approval.
Circumstances in which TIF may borrow funds (including through the call money market) or issue investment
the AIF may use
corporation bonds (including short-term bonds) for the purpose of funding property
leverageacquisitions, conducting repairs, paying cash distributions, providing funds for theadministration of TIF, repaying obligations (including repayment of tenant leasehold or
security deposits and of obligations related to loans and investment corporation bonds)
and other activities.
The types and sources TIF currently has outstanding fixed-rate long-term loans, as well as access to aof leverage permittedcommitment line and investment corporation bonds, all of which are unsecured andand associated risks
unguaranteed. TIF may be subject to restrictive covenants in connection with any
indebtedness that may restrict TIF’s operations and limit its ability to make cash
distributions to unitholders, to dispose of properties or to acquire additional properties.
Furthermore, if TIF were to violate such restrictive covenants, for example with regard to
the maintenance of debt service coverage or loan-to-value ratios, lenders may be entitled
to require TIF to collateralize portfolio properties or demand that the entire outstandingbalance be paid ahead of scheduled payments. Further, in the event of an increase ininterest rates, to the extent that TIF has taken on any debt with unhedged floating rates,interest payments may increase, which in turn could reduce the amount of cash available
for distributions to unitholders. Higher interest rates may also limit TIF’s capacity forshort- and long-term borrowings, which would in turn limit its ability to acquire
properties, and could cause the market price of its units to decline.
Any restrictions on
Under TIF’s Articles of Incorporation, the maximum permitted amount of each loan andleverage
corporate bond issuance is one trillion yen, and the aggregate permitted amount of all
such debt is also one trillion yen.
Any restrictions on
No applicable arrangements.
collateral and asset
reuse arrangements
Maximum level ofTIF has, in principle, set an upper limit of 60% for its loan-to-value, or LTV, ratio in order toleverage which theoperate with a stable financial condition. Additionally, TIF seeks to maintain an LTV ratio
AIFM is entitled towithin a range of approximately 50%. TIF may, however, temporarily exceed any such
employ on behalf oflevels as a result of financing acquisitions of additional properties through borrowings
the AIF
instead of equity or other event.
Article 23(1) (b)Procedure by which
Changes to TIF’s basic investment policy require an amendment of the Articles of
the AIF may change its Incorporation. Such amendment requires a quorum of a majority of the total issued units
investment strategy /and at least a two-thirds vote of the voting rights represented at a general meeting ofinvestment policy
unitholders. Unitholders should note, however, that under the ITA and the Articles ofIncorporation, unitholders who do not attend and exercise their voting rights at a general
meeting of unitholders are deemed to be in agreement with proposals submitted at themeeting, except in cases where contrary proposals are also being submitted.
Additionally, the investment guidelines of the Asset Manager, which provide moredetailed policies based on TIF’s basic investment policy, can be modified without
amendment of the Articles of Incorporation and without a vote of TIF’s unitholders or TIF’s
approval.
Article 23(1) (c)6Description of themain legal implicationsof the contractual
relationship enteredinto for the purpose ofinvestment, including
jurisdiction, applicablelaw, and the existenceor not of any legal
instruments providing
for the recognition andenforcement of
judgments in the
territory where the AIF
is establishedTIF has entered into the following asset management, support and informationagreements with the Asset Manager, the Sponsor and other entities, each of which isgoverned by Japanese law:

Asset management agreement dated as of August 10, 2015 between TIF and theAsset Manager.
Sponsor support agreement dated as of December 15, 2015 among TIF, the AssetManager and Takara Leben Co., Ltd.

TIF is a corporate-type investment trust in the form of investment corporation (toshi hojin)
provided for under the ITA. Therefore, the relationship between TIF and its unitholders isgoverned by TIF’s Articles of Incorporation (as opposed to individual agreements), which
can be amended from time to time upon resolution of a general meeting of unitholders.
TIF’s Articles of Incorporation stipulate rules relating to general meetings of unitholders,
including the convocation, setting of record date, exercise of voting rights, resolutions andelection of TIF’s directors.
The relationship between TIF and its unitholders is also governed by, and is subject to theprovisions of, Japanese law, including the ITA.
The courts in Japan would recognize as a valid judgment any final and conclusive civil
judgment for monetary claims (which, for this purpose, are limited to those of a purely
civil nature and do not include monetary claims of the nature of criminal or administrative
sanction, such as punitive damages, even though they take the form of civil claims) against
TIF obtained in a foreign court provided that (i) the jurisdiction of such foreign court isadmitted under the laws of Japan, (ii) TIF has received service of process for thecommencement of the relevant proceedings, otherwise than by a public notice or any
method comparable thereto, or has appeared without any reservation before such foreign
court, (iii) neither such judgment nor the relevant proceeding is repugnant to public policy
as applied in Japan, (iv) there exists reciprocity as to the recognition by such foreign courtof a final judgment obtained in a Japanese court and (v) there is no conflicting judgementon the subject matter by any Japanese court.

Article 23(1) (d)The identity of the
AIFM, AIF's depositary,
auditor and any otherservice providers and a
description of theirduties and theinvestors' rights
thereto

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7

Asset Manager (AIFM): Takara Asset Management Co., Ltd.
The AIFM provides services related to asset management, financing of the AIF,
reporting to the AIF and other related matters.
Auditor: Grant Thornton Taiyo LLC
The auditor audits financial statements and reports to the supervisory directors if
it finds any misconduct or any material fact of violation of law or the Articles ofIncorporation with regard to execution of the duties of the executive director.
General administrator with respect to operational matters and asset custodian:
Sumitomo Mitsui Trust Bank, Limited
The general administrator with respect to operational matters provides services
related to administration of directors’ meetings and administration of unitholders’meetings (except for services concerning dispatch of documents related tounitholders’ meetings and, production, acceptance and counting of voting forms).
The asset custodian provides administrative services related to custody of assets.
Transfer agent: Mizuho Trust & Banking Co., Ltd.

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Article 23(1) (e)Description of how the
AIFM complies withthe requirements tocover professional
liability risks (ownfunds / professional
indemnity insurance)
Article 23(1) (f)Description of any
delegatedmanagement function
such as portfolio
management or risk
management and of
any safekeeping
function delegated by
the depositary, theidentification of thedelegate and any
conflicts of interest
that may arise fromsuch delegations
Article 23(1) (g)Description of the AIF’s
valuation procedureand pricing
methodology,
including the methods
used in valuing hardto-value assets

The transfer agent provides administrative services related to unitholders’register, issuance of investment units, calculation and payment of cash
distributions to unitholders and addressing unitholders’ claims, offers and notices.
General administrator with respect to accounting and tax matters: Reiwakaikeisha
Tax Corporation
The general administrator with respect to accounting and tax matters provides
services related to administration of accounting matters, preparation of
accounting books and administration of tax payments.
General administrator with respect to tax matters: PwC Tax JapanThe general administrator with respect to tax matters provides services related toadministration of tax payments.

Not applicable.

Not applicable.
There is no delegation of such functions beyond the Asset Manager, which is responsible
for portfolio and risk management, and the asset custodian, which is responsible forsafekeeping activities.

TIF makes investment decisions based partly on the results of due diligence which includes
the valuation of properties and consideration of the property appraisal value.
TIF otherwise values assets in accordance with its Articles of Incorporation. The methods
and standards that TIF uses for the valuation of assets are based on the Ordinance on
Accountings of Investment Corporations, as well as the Regulations Concerning Real Estate
Investment Trusts and Real Estate Investment Corporations and other regulations
stipulated by ITA, as well as Japanese GAAP.
Hard-to-value assets include assets such as equity interests in anonymous associations(tokumei kumiai) and beneficiary interests in trusts of money principally invested in realestate anonymous associations. Future cash flows of hard-to-value assets are difficult to8

estimate. TIF values hard-to-value assets differently depending on the asset, but pursuant
to the ITA, the Ordinance on Accountings of Investment Corporations and the valuation
rules of the Investment Trusts Association, Japan or in accordance with Japanese GAAP.
The valuation of such hard-to-value assets is discussed in the notes to TIF’s financial
statements.
Article 23(1) (h)Description of the AIF’s
liquidity risk
management,
including redemption
rights in normal andexceptional
circumstances andexisting redemption
arrangements withinvestors

Net cash provided by operating activities constitutes TIF’s primary source of liquidity tofund distributions, interest payments on loans payable, fees to the Asset Manager andother service providers, property-related taxes, repairs and maintenance, and capital
expenditures for its properties in the ordinary course of business. However, TIF’s ability touse cash flows from operations to finance property acquisitions is severely limited
because TIF is generally required to distribute in excess of 90% of its distributable profit,
calculated in accordance with the Special Taxation Measures Act of Japan, for each fiscal
period to its unitholders. Therefore, TIF’s financing for acquisitions depends primarily onoutside financing, including equity offerings, loans and investment corporation bonds.
TIF controls liquidity-related risks by aiming to maintain its LTV ratio at a conservative
level at approximately 50%, diversifying the maturity dates of its repayment obligations,and maintaining a certain amount of highly liquid cash and deposits. All of TIF’s current
interest-bearing debt is long-term debt with fixed interest rates.
Because TIF is a closed-end investment corporation, unitholders are not entitled torequest the redemption of their investment.

Article 23(1) (i)Description of all fees,
charges and expenses
and a maximum
amount which is
directly / indirectly
borne by the investors

Directors’ compensation: TIF’s Articles of Incorporation provide that TIF may pay each of
its executive directors and supervisory directors up to ¥700,000 per month.
Asset Management Fees:

TIF pays the Asset Manager asset management fees as follows:• Type 1 Management fee
TIF pays to the Asset Manager a type 1 asset management fee for each fiscal
period. This type 1 asset management fee is payable within three months
following the last day of the fiscal period and is up to an amount equal to 5.0% of
the revenues derived from rent, incidental revenues, compensatory damages,
monetary penalties and other revenue derived from leasing activities fromrenewable energy facilities or tangible assets or land related thereto, excluding
capital gains from disposal of renewable energy projects.
• Type 2 Management fee
TIF pays to the Asset Manager a type 2 asset management fee for each fiscal
period. This type 2 asset management fee is payable within three months
following the last day of the fiscal period and is up to an amount equal to 5.0% of
the amount that is calculated as net income before income taxes, before
deducting non-deductible consumption taxes and type 2 asset management fee,plus depreciation and amortization.
• Acquisition fee

9For each new renewable energy project that TIF acquires, the Asset Manager
receives an acquisition fee, which is equal to up to 2.0%, or up to 1.0% in case of atransaction with a related party, of the purchase price (excluding national andlocal consumption taxes and expenses), payable by the end of the month
immediately following the month of such acquisition.
• Disposition fee
For each renewable energy project that TIF disposes of, the Asset Manager
receives a disposition fee, which is equal to up to 2.0%, or up to 1.0% in case of atransaction with a related party, of the disposition price (excluding national andlocal consumption taxes and expenses) payable by the end of the month
immediately following the month of such disposition.
Asset Custodian Fee:

TIF pays the asset custodian a biannual fee for each accounting period. The
maximum custodian fee shall not exceed the result of the multiplication of ¥100and the expected total annual power output (kW) prorated over twelve months.
The custodian fee (excluding local and national consumption taxes) is calculated
based on the composition of TIF’s assets and separately agreed upon between thecustodian and TIF. The amount of fees for any month during which services were
not provided by the custodian of TIF’s assets for the full month shall be calculated
pro-rata based on the number of days on which services were provided in themonth. Any fractional amount less than ¥1 obtained by the foregoing calculation
formula shall be rounded down.

General Administrator Fee for Operational Matters:

TIF pays the administrative agent a fee on a monthly basis as separately agreed
upon between Sumitomo Mitsui Trust Bank, Limited and TIF, with the maximum
amount (excluding local and national consumption taxes) as follows: ¥500,000 per
board of directors’ meeting and ¥2,000,000 per general unitholders’ meeting.

Transfer Agent Fee:Monthly standard fee:
TIF pays the transfer agent monthly standard fees up to an amount calculated
according to the following table and divided by 6, with a minimum monthly fee of¥200,000.
Number of Unitholders
first 5,000 unitholders
over 5,000 to 10,000
over 10,000 to 30,000
over 30,000 to 50,000
over 50,000 to 100,000
over 100,000

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10

Other fees:

Fees per Unitholder
¥480
¥420
¥360
¥300
¥260
¥225

TIF pays the transfer agent fees for various other services, including fees for services
in connection with the payment of dividends, the preparation, maintenance andstorage of TIF’s unitholder register, preparation and reporting of the end-of-period
unitholders register and unitholder statistical data.
General Administrator Fee with respect to Accounting and Tax Matters:Monthly fee:
TIF pays the general administrator with respect to accounting and tax matters (i) amonthly fee based on the projects or (ii) a monthly fee based on the asset size,
whichever is lower, payable by the last day of the month after (or the precedingbusiness day if the last day of such month is not a bank business day), by depositingor transferring payment into the bank account as designated by the administrator.
TIF is responsible for the payment of necessary expenses.
(i) A monthly fee based on the projects is calculated by adding the annual fixedfee (up to ¥20,000,000) prorated over twelve months to the monthly variable fee(up to ¥500,000) multiplied by the number of projects TIF owns at the end of themonth.
(ii) A monthly fee based on the asset size is calculated by the rate up to 0.05% of
the acquisition value of the assets TIF owns on the latest record date (June 1 or
December 1 of every year, or the end of the month where TIF acquires the initialprojects after incorporation) prorated over twelve months.



Other fees:
Where TIF acquires a new facility, TIF pays the general administrator with respect toaccounting and tax matters a fee for preparation and registration of the fixed asset
ledger payable by the last day of the month after next month after such registration,
by depositing or transferring payment into the bank account as designated by thegeneral administrator with respect to accounting and tax matters. TIF is responsible
for the payment of necessary expenses.
The administration fee for any other services with respect to preparation of
documents that are required under the law shall be determined through discussions
between the general administrator with respect to accounting and tax matters and
TIF.

Auditor Fee:

TIF may pay the independent auditor up to ¥15 million per fiscal period. The boardof directors is responsible for determining the actual compensation amount.
TIF may also incur other miscellaneous fees in connection with the issuance ofunits and the operation, acquisition or disposition of properties.

Article 23(1) (j)11

Description of the
AIFM's procedure toensure fair treatment
of investors and detailsof any preferential
treatment received byinvestors, including
detailing the type ofinvestors and theirlegal or economic links
with the AIF or AIFM
Article 23(1) (k)The latest annual
report referred to in
Article 22(1)Article 23(1) (l)The procedure andconditions for the issue
and sale of the units

Article 23(1) (m)Latest net asset valueof the AIF or latest
market price of theunit or share of the AIF
Article 23(1) (n)Details of the historicalperformance of theAIF, where available

Under Article 77 paragraph 4 of the ITA, which applies the requirements of Article 109
paragraph 1 of the Companies Act of Japan to investment corporations, investment
corporations are required to treat unitholders equally depending on the number andcontent of units held. In addition, upon liquidation, the allotment of residual assets tounitholders is required to be made equally depending on the number of units held under
Article 77 paragraph 2 item 2 and Article 158 of the ITA.

Not applicable.

TIF is authorized under its Articles of Incorporation to issue up to 10,000,000 units. Itsunits have been listed on the Tokyo Stock Exchange since June 2, 2016.
Secondary market sales and transfers of units will be conducted in accordance with therules of the Tokyo Stock Exchange. Unit prices on the Tokyo Stock Exchange aredetermined on a real-time basis by the equilibrium between bids and offers. The Tokyo
Stock Exchange sets daily price limits, which limit the maximum range of fluctuation within
a single trading day. Daily price limits are set according to the previous day’s closing priceor special quote.
TIF’s unit’s latest market price is publicly available at the Tokyo Stock Exchange or fromfinancial information venders (including Reuters, which can be viewed at https://www.reu
ters.com/companies/9281.T).
The units of TIF were listed on the Tokyo Stock Exchange on June 2, 2016.
The most recent five fiscal periods’ performance of the units is as follows.
Fiscal period
May 31, 2020
November 30, 2019
May 31, 2019
November 30, 2018
May 31, 2018

Article 23(1) (o)Identity of the prime
broker, any material
arrangements of the
AIF with its prime
brokers, how conflicts

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No applicable prime broker.

Total Assets(JPY million)
44,10428,903
28,84929,33424,538

Total Net Assets(JPY million)

Net Assets per unit
(JPY)

20,05813,414
13,51913,571
11,322

103,486
96,80397,56097,93995,976

of interest aremanaged with theprime broker and theprovision in thecontract with thedepositary on thepossibility of transfer
and reuse of AIF
assets, andinformation about any
transfer of liability tothe prime broker that
may exist
Article 23(1) (p)Description of how andwhen periodic
disclosures will bemade in relation toleverage, liquidity andrisk profile of theassets, pursuant to
Articles 23(4) and 23(5)Article 23(2)The AIFM shall informthe investors before
they invest in the AIF
of any arrangement
made by thedepositary tocontractually discharge
itself of liability inaccordance with
Article 21(13)The AIFM shall also
inform investors of any
changes with respect
to depositary liability
without delay

The AIFM will disclose the matters described in Articles 23(4) and 23(5) periodicallythrough TIF’s Internet website and semi-annual report.

Not applicable.

Not applicable.

Article 23(4)(a)Percentage of the AIF's There are no assets that are subject to special arrangements arising from their illiquid
assets which arenature.
subject to special
arrangements arisingfrom their illiquid
nature. The percentage
shall be calculated as

13the net value of thoseassets subject tospecial arrangements
divided by the net
asset value of the AIF
concerned
Overview of any
special arrangements,
including whether they
relate to side pockets,gates or otherarrangements
Valuation
methodology applied
to assets which are
subject to sucharrangements
How management andperformance fees
apply to such assets
Article 23(4)(b)Any new arrangements
for managing theliquidity of the AIF
For each AIF that the
AIFM manages that is
not an unleveraged
closed-end AIF, notify
to investors wheneverthey make changes to
its liquidity
management systems(which enable an AIFM
to monitor the liquidity
risk of the AIF and toensure the liquidity
profile of theinvestments of the AIF
complies with its
underlying obligations)that are material inaccordance with
Article 106(1) ofRegulation (EU) No
231/2013 (ie. there is a
substantial likelihoodthat a reasonable

14

There are no such special arrangements.

There are no such special arrangements.

There are no such special arrangements.

Any new arrangements or change in applicable arrangements will be disclosed at an
appropriate time.
Any new arrangements or change in applicable arrangements will be disclosed at an
appropriate time.

investor, becoming
aware of suchinformation, would
reconsider its
investment in the AIF,
including because suchinformation could
impact an investor’sability to exercise its
rights in relation to its
investment, orotherwise prejudice
the interests of one ormore investors in the
AIF).
Immediately notify
investors where they
activate gates, side
pockets or similar
special arrangements
or where they decideto suspend
redemptions
Overview of changes
to liquidity
arrangements, even if
not special
arrangements
Terms of redemption
and circumstanceswhere management
discretion applies,
where relevant
Also any voting orother restrictions
exercisable, the lengthof any lock-up or any
provision concerning‘first in line’ or ‘prorating’ on gates andsuspensions shall be
included
Article 23(4)(c)
The current risk profileof the AIF and the risk
management systems

15

Any new arrangements or change in applicable arrangements will be disclosed at an
appropriate time.

Any new arrangements or change in applicable arrangements will be disclosed at an
appropriate time.

TIF is a closed-end investment corporation and unitholders are not entitled to request theredemption of their investment.

There are no voting or other restrictions on the rights attaching to units.

The Asset Manager stipulates basic provisions of risk management in its risk management
rules. The appropriateness and effectiveness of the Asset Manager’s risk management
systems are regularly reviewed and evaluated by the Asset Manager.

employed by the AIFM
to manage those risks

The use of long-term loans and investment corporation bonds to finance asset acquisitions
and other purposes gives rise to liquidity risks. TIF controls such risks by aiming tomaintain a conservative LTV ratio of approximately 50%, diversifying financing methods
and lenders, dispersing repayment deadlines, retaining a certain amount of liquid cash
deposits and establishing commitment lines.
Although all of TIF’s current loans have fixed interest rates, TIF may in the future take out
loans with floating interest rates that would be exposed to the risk of interest rate
fluctuations. TIF, in order to reduce the impact caused by rising interest rates, closely
monitors the movement of interest rates.
Derivative transactions (interest rate swap transactions) may be used to hedge against therisks of increases in floating interest rates.

Measures to assess thesensitivity of the AIF’s
portfolio to the most
relevant risks to which
the AIF is or could be
exposedIf risk limits set by the
AIFM have been or are
likely to be exceeded
and where these risk
limits have been
exceeded a descriptionof the circumstances
and the remedial
measures taken
Article 23(5)(a)Any changes to the
maximum amount ofleverage which the
AIFM may employ onbehalf of the AIF,
calculated inaccordance with thegross and commitment
methods. This shall
include the originaland revised maximum
level of leveragecalculated inaccordance with
Articles 7 and 8 ofRegulation (EU) No
231/2013, whereby

16

No such measures have been implemented.

No such situation has occurred.

Any new arrangements or change in applicable arrangements will be disclosed at an
appropriate time.

the level of leverage
shall be calculated as
the relevant exposure
divided by the net
asset value of the AIF.
Any right of the reuseof collateral or any
guarantee granted
under the leveraging
agreement, including
the nature of the rights
granted for the reuseof collateral and thenature of theguarantees granted
Details of any change
in service providers
relating to the above.
Article 23(5)(b)Information on the
total amount ofleverage employed by
the AIF calculated inaccordance with thegross and commitment
methods

17

No such right or guarantee exists.

Any new arrangements or change in applicable arrangements will be disclosed at an
appropriate time.

The aggregate amount of debt with interest is JPY 23,782 million as of May 31, 2020.