September 26, 2022
To All Concerned Parties
Investment Corporation
ESCON JAPAN REIT Investment Corporation
Representative:
Atsumu Sasaki, Executive Director(Securities Code: 2971)
Asset Management Company
ES-CON ASSET MANAGEMENT Ltd.
Representative:
Takeharu Kagiyama
President and Representative Director
Inquiries:
Yuki Yoshida
General Manager of the Department ofFinance and Control
TEL: +81- 3-6230-9338
Notice Concerning Changes to the Flow of Operations of Property Acquisitions at the Asset Manager
ES-CON ASSET MANAGEMENT Ltd. (Hereinafter, the "Asset Manager"), to which ESCON JAPAN REIT Investment
Corporation (hereinafter, "ESCON REIT") entrusts the management of its assets, hereby announces that the decision wasmade at today's Board of Directors meeting that, in order to further strengthen the governance structure of the AssetManager, the decision-making body for the acquisition and sale of assets under management by the Asset Manager, as
well as the abolition of management guidelines, which up until now had been deliberated and resolved by the Investment
Committee, will now be the Asset Manager's Board of Directors, in addition to the deliberation and resolution by theInvestment Committee.
This change has been made as part of the business improvement measures announced in the “Notice Concerning
Submission of a Business Improvement Report by the Asset Manager” of August 15, 2022, and an outline of the AssetManager's decision-making flow before and after the change is shown in the appendix. The main purpose of the change
is to deepen the understanding of Directors who are members of the Audit and Supervisory Committee regarding thediscussions at the Compliance Committee and the Investment Committee (hereinafter referred to as "the Committees")
prior to the deliberations and resolutions at the Board of Directors' meeting, and the Asset Manager's ComplianceCommittee Regulations and Investment Committee Regulations both stipulate that directors who are Audit Committee
members may attend the meetings of the two committees as observers and that they must attend the meetings of the twocommittees when they deliberate on the acquisition of properties from related parties.
The Asset Manager will continue to steadily implement the recently reviewed business operations and promote theestablishment of compliance and internal control systems in order to realize fair and appropriate business operations.
【URL of ESCON REIT: https://www.escon-reit.jp/en/index.html】

1【Appendix】 The parts that have been changed are underlined.
(1) Overview of the decision-making flow concerning management guidelines, etc.
＜Previous Flow＞
Draft by the Drafting Department (Reit Asset Management
Dept. and Finance and Control Dept.)
Instructions forrevision and re-Approval by the compliance officer
Confirmation of the existence of any law/regulation compliance orother compliance issues (hereinafter, “compliance issues”)
If a compliance officer
deems that the draft of theManagement Guidelines,etc. requires discussion toexamine any complianceissues

Deliberation and resolution by theCompliance Committee on the existence ofany compliance issues

General Manager of the Reit Asset Management Dept. and General
Instructions forrevision and resubmission

ordiscardingofdraft

Manager of the Finance and Control Dept. submit the draft to theInvestment Committee

Deliberation and resolution by the Investment Committee(The compliance officer may declare the cancellation of Investment
Committee deliberations or resolutions if they deem that there areissues such as legal violations in the procedures or content fordeliberation)

Report to the Board of Directors and ESCON REIT

2submission

ordiscardingofdraft＜New Flow＞
Draft by the Drafting Department (Reit Asset Management Dept.
and Finance and Control Dept.)
Instructions forrevision and re-Approval by the compliance officer

submission

ordiscardingofdraft

Confirmation of the existence of any law/regulation compliance orother compliance issues (hereinafter, “compliance issues”)
If a compliance officer
deems that the draft of theManagement Guidelines,etc. requires discussion to
examine any complianceissuesDeliberation and resolution by the Compliance
Committee on the existence of any complianceissuesGeneral Manager of the Reit Asset Management Dept. and General
Instructions forrevision and resubmissiondiscardingdraft

Manager of the Finance and Control Dept. submit the draft to theInstructions for

Investment Committee

revision and re-orsubmission

orofdiscardingofDeliberation and resolution by the Investment Committee(The compliance officer may declare the cancellation of Investment
Committee deliberations or resolutions if they deem that there areissues such as legal violations in the procedures or content fordeliberation)

Deliberations and resolution by theBoard of Directors(Limited to the revision or abolishmentof Management Guidelines)

Report to the Board of Directors and ESCON REIT

3draft(2) Overview of the decision-making flow concerning acquisition of assets under management＜Previous Flow＞
Drafting of acquisition plans by the REIT Asset Management Dept.
(Property due diligence performed by REIT Asset Management Dept.)

Instructions to cancel
Approval by the compliance officer
Confirmation of the existence of any law/regulation compliance orother compliance issues (hereinafter, “compliance issues”)

If the transaction is withan interested party or if acompliance officer deems
that the acquisition draft
plan requires discussion toexamine any complianceissuesDeliberation and resolution by the Compliance
Committee on the existence of any complianceissuesInstructions to cancel
or amend content

General manager of REIT Asset Management Dept. submits
acquisition draft plan to the Investment Committee

Deliberation and resolution by the Investment Committee(The compliance officer may declare the cancellation of Investment
Committee deliberations or resolutions if they deem that there are issues suchas legal violations in the procedures or content for deliberation)

Report to the Board of Directors and ESCON REIT
(If the acquisition draft plan constitutes a transaction with an interested
party that requires approval from ESCON REIT’s Board of Directors
under the Investment Trust Law, prior approval from ESCON REIT’s
Board of Directors should be obtained).

4or amend content

＜New Flow＞
Drafting of acquisition plans by the REIT Asset Management Dept.
(Property due diligence performed by REIT Asset Management Dept.)

Instructions to cancel
Approval by the compliance officer
Confirmation of the existence of any law/regulation compliance orother compliance issues (hereinafter, “compliance issues”)

If the transaction is withan interested party or if acompliance officer deems
that the acquisition draft
plan requires discussion toexamine any complianceissues

Deliberation and resolution by the Compliance
Committee on the existence of any complianceissuesInstructions to cancel
or amend content

General manager of REIT Asset Management Dept. submits
acquisition draft plan to the Investment Committee

Deliberation and resolution by the Investment Committee(The compliance officer may declare the cancellation of Investment
Committee deliberations or resolutions if they deem that there are issues
such as legal violations in the procedures or content for deliberation)

Deliberations and resolution by the Board of Directors

Report to ESCON REIT
(If the acquisition draft plan constitutes a transaction with an interested
party that requires approval from ESCON REIT’s Board of Directors
under the Investment Trust Law, prior approval from ESCON REIT’s
Board of Directors should be obtained).

5or amend content

(3) Overview of decision-making flow regarding the sale, lease and management of assets under management andprocurement of funds＜Previous Flow＞

Drafting of matters requiring Investment Committee
resolutions by the Reit Asset Management Dept. and theFinance and Control Dept.

Instructions to cancel
Approval by the compliance officer
Confirmation of the existence of any law/regulation compliance orother compliance issues (hereinafter, “compliance issues”)
If the transaction is withan interested party or if acompliance officer deems
that the acquisition draft
plan requires discussion toexamine any complianceissuesDeliberation and resolution by theCompliance Committee on the existence ofany compliance issues

Instructions to cancel
or amend content

General Manager of the Reit Asset Management Dept. andGeneral Manager of the Finance and Control Dept. submit thedraft to the Investment Committee

Deliberation and resolution by the Investment Committee(The compliance officer may declare the cancellation of Investment
Committee deliberations or resolutions if they deem that there areissues such as legal violations in the procedures or content fordeliberation)

Report to the Board of Directors and ESCON REIT
(If the acquisition draft plan constitutes a transaction with an interested
party that requires approval from ESCON REIT’s Board of Directors
under the Investment Trust Law, prior approval from ESCON REIT’s
Board of Directors should be obtained).

6or amend content

＜New Flow＞
Drafting of matters requiring Investment Committee
resolutions by the Reit Asset Management Dept. and theFinance and Control Dept.

Instructions to cancel
Approval by the compliance officer
Confirmation of the existence of any law/regulation compliance orother compliance issues (hereinafter, “compliance issues”)
If the transaction is withan interested party or if acompliance officer deems
that the acquisition draft
plan requires discussion toexamine any complianceissuesDeliberation and resolution by theCompliance Committee on the existence ofany compliance issues

Instructions to cancel
or amend content

General Manager of the Reit Asset Management Dept. andGeneral Manager of the Finance and Control Dept. submit thedraft to the Investment Committee

Deliberation and resolution by the Investment Committee(The compliance officer may declare the cancellation of Investment
Committee deliberations or resolutions if they deem that there areissues such as legal violations in the procedures or content fordeliberation)

Deliberations and resolution by the Board ofDirectors(Limited to the sale of assets undermanagement

Report to the Board of Directors and ESCON REIT
(If the acquisition draft plan constitutes a transaction with an interested
party that requires approval from ESCON REIT’s Board of Directors
under the Investment Trust Law, prior approval from ESCON REIT’s
Board of Directors should be obtained).

7or amend content