[For Translation Purposes Only]
May 17, 2016

Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Satoshi Yanagita, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Ken Okada
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Debt Financing and Repayment of Debt Financing

Nomura Real Estate Master Fund, Inc. (“Nomura Master Fund” or the “Fund”) announced thedecision made today that it will procure debt financing (the “Loans”) and conduct early repayment
using proceeds from the sales of assets (the “Early Repayment”), as described below.

Ⅰ．Debt Financing
1. Purpose
The Fund has decided to procure the loan in order to repay current outstanding loans which matures on
May 26, 2016.
2. Details of Debt Financing
Loan Type：Term Loan(Floating-rate, contracted on May 24, 2016)
Lenders

Amount(millions of yen)Interest Rate(Note 1)

Fixed

Mitsui Sumitomo Insurance
Company, Limited

1,000(To be determined)

Resona Bank, Limited
The Bank of Fukuoka, Ltd.

1,100(To be determined)(Note 3)Fixed(Note 3)

Drawdown
Term
Date

Repayment
Date (Note 2)

May 26,
May 26,
7 years
2016
2023
May 26,
May 26,
8 years
2016
2024

Terms ofRepayment

CollateralLump-sum
repayment on Unsecured,
the repayment unguaranteed
date
Lump-sum
repayment on Unsecured,
the repayment unguaranteed
date(Note 1)November 26, 2016, the first interest payment date, and 26th of every May and November thereafter until the Repayment Date. (orthe following business day if the date is a non-business day, or the prior business day if the following business date is in the nextmonth)(Note 2)Repayment Date is the following business day if the date is a non-business day, or the prior business day if the following business dateis in the next month.
(Note 3)The interest rate will be determined on or before the anticipated borrowing date based on the contract dated April 22, 2016
concerning this borrowing. We will make an announcement about the interest when it is determined.

－ 1 －3. Use of Funds(1) Specifics:(2) Scheduled Date of Use:

To be used for a part of repayment of the existing borrowings based on the termloan(Note 1) agreement totaling ¥4 billion which will mature on September 28, 2015.
(The remaining to be repaid with cash on hand procured by the sale of assets .(Note2))
May 26,2016(Note 1)For details of the term loan agreement maturing on May 26, 2016 please refer to the press releases “Notice Concerning DebtFinancing” announced by Nomura Real Estate Office Fund on June 20, 2013 and “Notice Concerning Debt Financing” announced
by the former Nomura Real Estate Master Fund on June 26, 2015.
(Note 2)For a profile of the property, refer to the “Notice Concerning Property Acquisition and Disposition”, released on May 9, 2016.

Ⅱ．Details of Repayment of Debt Financing
1. Purpose
An early repayment of existing borrowings (see “2. Details of Repayment of Debt Financing”
below) through effective utilization of proceeds from the sale of assets is expected to increase theeffectiveness of asset management and reduce interest payments.
2.

Details of Repayment of Debt Financing① Loan Type：Term Loan(Commitment Line Agreement, contracted on June 11, 2015)
Lenders

Borrowing
BorrowingAmountAmountPrepaymentbefore theafter theAmountprepayment (millions of yen) prepayment(millions of yen)

The Bank ofTokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Mizuho Bank, Ltd.
The Bank ofTokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Mizuho Bank, Ltd.

5,000

Interest Drawdown
Rate
Date

Term

Repayment Scheduled
Repayment Collateral
Date (Note 2)Date(millions of yen)

5,000

Basic
Interest
Rate February 24, 1 year
2016
+0.60％-February
24,2017

May 26,2016

Unsecured,ungu
aranteed

February
26,2017

May 26,2016

Unsecured,ungu
aranteed(Note2)(Note3)

1,300

1,300

Basic
Interest
Rate+0.50％-March 1,2016

1 year(Note2)(Note3)② Loan Type：Term Loan(Commitment Line Agreement, contracted on March 25, 2014)
Lenders

Borrowing
BorrowingAmountAmountPrepayment
before theafter theAmountprepayment (millions of yen) prepayment(millions of yen)

Mitsubishi UFJ Trust andBanking Corporation,
Sumitomo Mitsui Trust
Bank, Ltd.
The Bank ofTokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Mizuho Bank, Ltd.

3,000

Interest Drawdown
Rate
Date

Term

Repayment Scheduled
Repayment Collateral
Date (Note 2)Date(millions of yen)

3,000-

BasicInterest
March 27, 2 years Augusut 26, May 26,
and 5Rate
2014
2016
2016
months+0.37％(Note2)(Note3)

4,500

3,500

1,000

Basic
Interest
March 27, 2 years
and 11Rate2014
months+0.42％(Note2)(Note3)－ 2 －February
26,2017

May 26,2016

Unsecured,unguarante
ed
Unsecured,unguaranteed③Loan Type：Term Loan(Commitment Line Agreement, contracted on March 9, 2015)
Borrowing
BorrowingAmountAmountPrepayment
before theafter theAmountprepayment (millions of yen) prepayment

Lenders(millions of yen)

The Bank ofTokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Mizuho Bank, Ltd.
The Bank ofTokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Mizuho Bank, Ltd.

5,000

Interest Drawdown
Rate
Date

TermRepayment Scheduled
Repayment Collateral
Date (Note 2)Date(millions of yen)

1,000

Basic
Interest
rate+0.32％

4,000

March 11,2015

March 11,2 years
2017

May 26,2016(Note2)(Note3)

Unsecured,unguaranteed(Note 1)No penalty is required by this prepayment, above ① to ③.
(Note 2)Basic Interest Rate, which applies to the calculation period of the interest rate to be paid on the Interest Payment Date, will be JBA 1month JPY TIBOR as of two business days before the previous Interest Payment Date of the respective interest payment dates(however, the Drawdown Date for the first interest rate calculation period) announced by the JBA TIBOR Administration.
(Note 3) Basic Interest Rate indicated in (Note 2) will be reviewed on each Interest Payment Date. However, in the case the rate that applies tothe calculation period of the interest rate does not exist, what is calculated based on the method stated in the contract will be theBasic Interest Rate that applies to the concerned period. Refer to the JBA TIBOR Administration website regarding the changes in
the respective JBA Japanese Yen TIBOR, the base interest rate.

Ⅲ．Status of Interest Bearing Debts after Debt Financing and Prepayment(millions of yen)

Before drawdown and theprepayment(Note1)

After drawdown and theprepayment(Note1)

Increased/Decreased
AmountShort-term Borrowings

10,400―▲10,400

Current portion ofLong-term borrowings

49,99442,494▲7,500324,949

326,049＋1,100385,343

368,543▲16,800

5,000

5,000―

27,50027,500―32,50032,500―417,843

401,043▲16,800(Note 2)Long-term borrowings(Note3)
Total Borrowings
Current portion ofInvestment Corporation
Bonds(Note 2)
Investment Corporation
Bonds(Note4)
Total Investment Corporation
Bonds
Total Interest-Bearing Debts(Note 1)Both columns indicate figures assuming that agreed repayments (¥21.4 million in total) scheduled for May 26, 2016.
(Note 2) Nature of term is as of the end of the 1st fiscal period (February 29, 2016).
(Note 3)Excludes Long-term Borrowings due within one year.
(Note 4)Excludes Investment Corporation Bond due within one year.

Ⅳ．Forecasts of Financial Results
There is no impact to Nomura Master Fund’s forecasts of financial results for the fiscal period ending
August 31, 2016 (March 1, 2016 to August 31, 2016), there is no revision to the forecast of financialresults.
Ⅴ．Other Matters Required for Investors to Accurately Understand and Evaluate the Information
NMF was incorporated through the consolidation-type merger as of October 1, 2015, and has not filed－ 3 －any Securities Registration Statement or Securities Report and therefore has not disclosed “InvestmentRisks” yet. Please refer to the content of “Investment Risks” of the Securities Reports (in Japanese) filed
by Former NMF on November 27, 2015, by Nomura Real Estate Office Fund, Inc. on July 29, 2015 andby Nomura Real Estate Residential Fund, Inc. on August 26, 2015, respectively, regarding the risks involvedin the repayment of the borrowings, etc., as there is no material change in such risks. NMF is to disclose its“Investment Risks” in the Securities Report of NMF (the fiscal period from October 1, 2015 to February29, 2016) to be filed hereafter.

*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/english/－ 4 －