April 15, 2024
For Immediate Release

Real Estate Investment Trust Securities Issuer
1-6-5 Marunouchi, Chiyoda-ku, Tokyo
Mitsubishi Estate Logistics REIT Investment Corporation
Representative: Ken Takanashi, Executive Director(Securities Code: 3481)
Asset Management Company
Mitsubishi Jisho Investment Advisors, Inc.
Representative: Tetsuya Masuda, President & CEO
Contact:
Ken Takanashi, Executive Officer, General Manager,Logistics REIT Management Department
TEL: +81-3-3218-0030

Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Interest
Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”), to which Mitsubishi Estate Logistics REIT
Investment Corporation (“MEL”) entrusts the management of its assets, announces today that it has decided to acquire a
property (the “New Property”) in the form of trust beneficiary interest as described below.
1. Overview of Acquisitions
Category

Property Name

Location

AnticipatedAcquisition Price(Millions of yen)
(Note 1)

Logistics
Facilities

MJ Logipark
Ichinomiya 1

Ichinomiya,Aichi

5,851

Appraisal Value(Millions of yen)
(Note 2)

Appraisal
NOI Yield (%)(Note 3)

6,790

4.9

SellerAnticipatedAcquisition
Date(Note 4)

Brokerage

Not disclosed(Note5)

August 1,2024

N/A(Note 1) “Anticipated Acquisition Price” indicates the purchase price of the trust beneficiary interest of the New Property stated in the sale andpurchase agreement (“the Sale and Purchase Agreement”), rounded down to the nearest million yen and does not include national or local
consumption taxes or expenses which will be incurred in connection with the acquisition.
(Note 2) “Appraisal Value” shows the appraisal value stated on the real estate appraisal report with the price as of March 1, 2024. The appraisal wasconducted by Japan Real Estate Institute.
(Note 3) “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the anticipated acquisition price of the New
Property in real estate appraisal report, rounded to the first decimal place.
(Note 4) “Anticipated Acquisition Date” indicates an anticipated acquisition date described in sales and purchase agreement pertaining to the New
Property. Note that the Anticipated Acquisition Date is subject to change as agreed upon between MEL and the seller.
(Note 5) Not disclosed as consent has not been obtained.
(Note 6) The Sale and Purchase Agreements is considered a Forward Commitment, etc. (a postdated sale and purchase agreement under whichpayment and delivery will be made at least one month after the conclusion of the contract, or any other contract similar thereto; the same
shall apply throughout this document), which is defined in the “Comprehensive Guidelines for Supervision of Financial Instruments Business
Operators, etc.” of Financial Services Agency. For the details of Forward Commitment etc., please refer to the below, “4. Financial Impact on
MEL When the Forward Commitment, etc. Cannot be Fulfilled.”

(1)
(2)
(3)
(4)

Date of Sale and Purchase Agreements:
Seller:Funds for Acquisition:
Settlement Method:

April 15, 2024
Please refer to the below, “5. Seller Profile”
Cash on hand
To be paid in a lump sum on the acquisition date- 1 -2. Rationale for Acquisition
MEL is sponsored by Mitsubishi Estate Co., Ltd. (“Mitsubishi Estate”) and entrusts the management of its assets to theAsset Management Company. MEL believes that utilizing both Mitsubishi Estate’s competitive advantage as a developeras well as the Asset Management Company’s competitive advantage as a real estate asset management company(together, the “Hybrid Model”) characterizes its competitive strength. Making use of such Hybrid Model, MEL aims torealize steady growth of its portfolio and stable management of its assets (including the total (Anticipated) Acquisition
Price; the same shall apply throughout this document) by adjusting to fluctuating market conditions and business cycles
and maximizing unitholder value.
Through acquisition of the New Property that is newer, versatile and located in favorable locations at a price below theappraisal value, MEL believes that it will contribute to the continued steady growth of its portfolio, stability andimprovement of profitability and growth of its unitholder value.
MEL confirmed that the tenant of the New Property has satisfied MEL’s tenant selection criteria guidelines. For moredetails on the guidelines, please refer to MEL’s “Report on the Management Structure and System of the Issuer of Real
Estate Investment Trust Units and Related Parties (Japanese Only)” dated November 29, 2023.
In deciding the acquisition of the New Property, the points described in “3. Details of the New Property, (5) The
Characteristics of the New Property” below were evaluated.
3. Details of the New Property
The table below shows a summary of the New Property (the “Individual Asset Table”). The terms used in theIndividual Asset Table are as follows; when referring to the Individual Asset Table, please refer to the following
explanation regarding the terms used therein.
In principle, unless otherwise noted, all information included in the Individual Asset Table is current as of February 29,
2024.
(1) Explanation concerning Classification·“Category” represents the purpose of the New Property in accordance with the classification prescribed in MEL’sinvestment policy.
(2) Explanation concerning Summary of Specified Asset·”Land area” of “Land” is based on the register.
·“Total floor area” of “Building” is based on the record in the register. “Total floor area” is the total floor area of themain building and annex. If there is more than one main building, the total floor area is the sum of the total floor areafor each main building.
·“Details of the lease” shows the figures as of February 29,2024.
(3) Special Notes·“Special notes” are matters that are deemed to be material considering the potential impact on the entitlements,usage, safety, etc. of the New Property as well as the appraisal value, profitability or disposability thereof as of the datehereof.
(4) Explanation of Summary of Appraisal Report·“Summary of appraisal report” describes the summary of the appraisal report of the New Property which wasappraised upon request from MEL and the Asset Management Company. Such appraisal report only represents thejudgment and opinion of the appraiser as of a certain point in time, and the validity and accuracy of its contents, aswell as the feasibility of a transaction at the appraisal value, are not guaranteed. The numbers included in the summaryof the appraisal report are rounded down to the nearest unit, and the ratios are rounded to the first decimal.
(5) The Characteristics of the New Property
The characteristics of the New Property are as follows:
••
•
•
•

A 4-story, box-type logistics facility
A facility supporting efficient operation, with 4 vertical conveyors and 2 cargo elevators installed in thewarehouse section, equipped with platform-type truck berths for 22 vehicles as well
Pleasant labor environment, equipped with the approximately 60m2 refreshing room dedicated to tenant
workers, and ladies’ restrooms with large mirrors at every floor
Location at a hub of extensive road networks, functioning as a point of connection of routes toward theTokyo Metropolitan Area, Osaka Metropolitan Area and Hokuriku region
Employment security is advantageous due to the large number of residents in the surrounding area- 2 -••••

Approximately 2.5km from “Ichinomiya Naka IC” on Nagoya Expressway No. 16 Ichinomiya Line
Little over 3km from “Ichinomiya Kisogawa IC” on Tokai-Hokuriku Expressway
Approximately 6km from “Ichinomiya IC” on Meishin Expressway
Approximately 130m from the “Naka Hoken Center bus stop” of Ichinomiya City Community Bus- 3 -Property name

MJ Logipark Ichinomiya 1

Category

Logistics facilities

Type of specified assets

Real estate trust beneficiary interests

Anticipated acquisition dateAugust 1, 2024

Anticipated acquisition price

5,851,100,000 yenSeller

Not disclosed (Note)

Overview oftrust
beneficiaryinterestLand

Building

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Entrustment date

September 30, 2022

Trust maturity dateJuly 31, 2034

Ownership form

Proprietary ownership

Location

3-7, Kifune, Ichinomiya, Aichi

Land area

13,234.63 m2

Zoning

Quasi-industrial district

Floor-area ratio

200%

Building coverage ratio

60%

Ownership form

Proprietary ownership

Construction dateAugust 12, 2022

Total floor area

26,922.21 m2

Structure/No. of stories

Steel-frame building with alloy-plated steel sheet roof / 4-story building

Property type

Warehouse

Collateral

Not applicableAppraisal value

6,790,000,000 yen (as of March 1, 2024)

Real estate appraiser

Japan Real Estate InstituteProbable maximum loss (PML)
Property management company

Details of thelease

Special notes

3.2% (obtained from the earthquake risk assessment report prepared by
Tokio Marine dR Co., Ltd.)CBRE K.K.

Number of tenants

1

Name of major tenant

TOBU TRANSPORTATION CO., LTD.

Annual rent
Tenant leasehold/security
deposits

Not disclosed (Note)

Total leased area

26,963.93 m2

Total leasable area

26,963.93m2

Occupancy rate

100.0%・ The logo of ”MJ Logipark” used in this property is a registeredtrademark (Trademark registration number 6024219). In order to use
the logo as a property display etc., MEL has concluded a license
agreement for the use of such Trademark with Mitsubishi Jisho

Not disclosed (Note)- 4 -Investment Advisors, Inc., which has a license to use the Trademark.
Outline of the agreement is as follows:(1) Term: 5 years from April 7, 2021. Provided, however, that if theparties do not give written notice of their desire to terminate thisAgreement by six months prior to the expiration date of the term of
the agreement, the agreement shall be renewed for another twoyears under the same terms, and the same shall apply thereafter.
(2) Licensed service: Management of real estate investment, etc.
(3) Licensed territory: Japan(4) License fee: Free of charge(Note) Not disclosed as consent has not been obtained.

- 5 -(Thousands of yen)
Summary of appraisal report
MJ Logipark Ichinomiya 1

Property nameAppraisal value

6,790,000
Items

Appraisal value based on income methodAppraisal value based on direct
capitalization method(1) Operating Revenue(Effective gross income①+②+③+④-⑤-⑥)①Gross potential income
Rental revenue, Common service
charges②Utility income

Details
6,790,000

Not disclosed (Note)
Not disclosed (Note)⑤Losses due to vacancies

Not disclosed (Note)
Not disclosed (Note)
Not disclosed (Note)
Not disclosed (Note)⑧Utility expenses

Not disclosed (Note)⑨Repair expenses

Not disclosed (Note)⑩Property tax⑪Property management fees

43,857
Not disclosed (Note)⑫Tenant soliciting fees etc.

Not disclosed (Note)⑬Insurance premiums

Not disclosed (Note)⑭Other expenses(3) Net operating income(NOI: (1)-(2))

Not disclosed (Note)(4) Earnings from temporary deposits

Not disclosed (Note)
7,088(6) Net cash flow
(NCF: (3)+(4)-(5))

281,201(7) Capitalization rate

4.1%

Terminal capitalization rate

Assessed based on actual property tax amount.

286,887(5) Capital expenditure

Integrated value based on cost method

As of March 1, 2024

OutlineAssessed using the direct capitalization method and the DCF
method.

Not disclosed (Note)④Other income

Discount rate

Valuation dateNot disclosed (Note)

Not disclosed (Note)

Appraisal value based on discounted cash
flow method

Japan Real Estate Institute

6,860,000③Parking lot income⑥Bad debt loss(2) Operational expenses(⑦+⑧+⑨+⑩+⑪+⑫+⑬+⑭)⑦Building maintenance costs

Appraiser

Assessed based on the medium and long term repair andmaintenance costs in the engineering report.

Assessed based on a comprehensive consideration of factors suchas the marketability of the target real estate, real estate
investment market trends and others.

6,720,000
3.8%

Assessed by comprehensively taking into account characteristics
unique to the property.

4.3%
6,680,000

Proportion of land

45.4%

Proportion of building

54.6%

Other matters for consideration by the appraiser(Note) Not disclosed as MEL holds information that is subject to confidentiality obligations with the lessees and such information can be used to calculateconfidential information, and if the confidential information is disclosed, MEL may suffer damages for breaching its confidentiality obligations,which in turn could negatively impact the interests of unitholders.

- 6 -4. Financial Impact on MEL When the Forward Commitment, etc. Cannot be Fulfilled
The Sale and Purchase Agreement falls under “Forward Commitment, etc.” Our purchase of the property based on theSale and Purchase Agreement is subject to the condition that we complete all financing (including the buyer’s scheduledissuance of investment units and a loan from financial institutions under a loan agreement) necessary to fund theacquisition. If we are unsuccessful in raising adequate funds to finance the acquisition, we have no responsibility for thepayment. Also, cash on hand is scheduled to be used as the fund of acquisition of the New Property, MEL believes that
the Sales and Purchase Agreement is unlikely to have a direct substantial impact on our financial condition anddistributions.
5.Seller Profile
The company name has not been disclosed as the consent of the seller, which is a domestic company, has not beenobtained. MEL and the Asset Management Company have no capital, personnel, or business relationship with the sellerthat should be noted. In addition, the seller does not fall under the category of an Interested party, etc. stipulated in theAct on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended), or an Interested Party as set
forth in the Rules Regarding Related-party Transactions of the Asset Management Company.
6. Status of the Seller
Not applicable as neither of the New Property is acquired from any related parties with MEL or the Asset ManagementCompany.
7. Brokerage
Not applicable.
8. Outlook
Please refer to the “Summary of Financial Results for the Fiscal Period Ended February 29, 2024 (REIT)” announced today.

This is the English translation of original Japanese documents and is provided solely for information purposes. If there areany discrepancies between the translation and the Japanese original, the latter shall prevail.
For more information about Mitsubishi Estate Logistics REIT Investment Corporation, please visit:https://mel-reit.co.jp/en/<Attachments>
1. Surrounding Area Maps and Photographs of the New Property
2. Outline of the Building Inspection Reports and Earthquake Risk Assessment Reports- 7 -<Attachments>
1. Surrounding Area Map and Photograph of the New Property
MJ Logipark Ichinomiya 1

2. Outline of the Building Inspection Report and Earthquake Risk Assessment Report
Building Inspection Reports
Category

Property NameERInspectionCompanyInspection
Date

Cost of Shortterm Repairs(thousands ofyen) (Note 1)

Earthquake Risk Assessment Reports
Cost of Longterm Repairs(thousands ofyen) (Note 2)

PML
Assessment
Company

Assessment
Date

Tokio
Tokio
March
March
Marine dR
Marine dR
115,998
2024
2024
Co., Ltd.
Co., Ltd.
(Note 1) “Cost of Short-term Repairs” includes the cost of urgent repairs and updating and repair work generally required within one year from theinspection date as shown in building inspection report.
(Note 2) “Cost of Long-term Repairs” includes the cost of updating and repair work required within 12 years from the inspection date as shown inthe building inspection reports.
Logistics
Facilities

MJ Logipark Ichinomiya 1- 8 -PML (%)

3.2