[For Translation Purposes Only]

December 5, 2019

For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Shuhei Yoshida, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:

Hiroshi Ishigooka
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Property Acquisition
Nomura Real Estate Master Fund, Inc. (“NMF” or the “Fund”) announces the decision made today by
Nomura Real Estate Asset Management Co., Ltd., a licensed asset management company retained by the Fundto provide asset management services, to acquire properties (the “Acquisitions”), as described below.
1.
No.

Overview of the Acquisitions
Property Name

Use

1

PMO Akihabara Kita

Office2

PMO Higashi-Shinbashi

Office3

PMO Hamamatsucho

Office4

GEMS Sangenjaya

Retail5

Landport Higashi-Narashino

Logistics

6

PROUD FLAT Shibuya Tomigaya

Residential

7

PROUD FLAT Miyazakidai

Residential

8

PROUD FLAT Asakusabashi III

Residential

9

PROUD FLAT Togoshi-Koen

Residential

Date of
Purchase andSale
Agreement

Scheduled
Date of
Acquisition

Seller(¥ million) (Note 1)

8,450

January 7,
2020

April 2,2020(Note 2)
December 5,
2019

March 2,2020

January 7,
2020

AnticipatedAcquisition
Price

4,730
4,380
NomuraReal
EstateDevelop
ment
Co., Ltd.

1,815
11,872
3,960
1,390
1,230

March 10,
2020

Total

2,580
40,407

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 1 -(Note 1)(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumptiontax.
The scheduled date of acquisition may be changed to another date (which shall be limited to a date in March 2020) that is
separately agreed upon by the Seller and the Purchaser.
There is no brokerage involved in the acquisition of the assets to be acquired.
The assets to be acquired are a trust beneficial interest in trust of real estate as for PROUD FLAT Shibuya Tomigaya andLandport Higashi-Narashino, and real estate properties as for the other assets to be acquired.
The assets to be acquired are planned to be acquired though the proceeds from the issuance of new investment units (see Note6), new anticipated borrowings and cash on hand.
For details of the issuance of new investment units, please refer to the press release, “Notice Concerning the Issuance of New
Investment Units and Secondary Offering of Investment Units” dated today.

The above nine properties are individually or collectively referred to hereinafter as the “Assets to be Acquired. ”
2.

Reasons for the Acquisitions

The Fund determined that acquiring the Assets to be Acquired would help secure stable income and steady
growth of the Fund’s portfolio over the medium to long term, in line with the asset management objectives andpolicies specified in the Fund’s Articles of Incorporation.
3. Summary of the Assets to be Acquired(1) PMO Akihabara Kita
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・ The Property is a seven-minute walk from “Akihabara” Station on the JR Yamanote, Sobu and Keihin-Tohoku
Lines, the Tokyo Metro Hibiya Line, and the Tsukuba Express of Metropolitan Intercity Railway Company,
and a six-minute walk from “Suehirocho” Station on the Tokyo Metro Ginza Line. Accordingly, with access to
two stations on six lines, the Property is excellent for convenient transportation to major business areas incentral Tokyo and is highly convenient for commuting from a wide area.
・ The area surrounding “Akihabara” Station, where the Property is located, is concentrated with the head officesof major corporations and corporate groups of large enterprises, the Tokyo branches of regional enterprisesthat appreciate superior convenience in respect of transportation and companies engaged in the chemical andtextile industries. On the other hand, in and after 2005, large-scale office buildings were supplied throughredevelopment and IT-related companies engaged in software development moved in, improving the area’s
reputation as an office area and stable demand from a wide range of tenants can be expected.
・ The standard floor leasable space of the Property is approximately 215 tsubo, which is a rare scale among thecompeting properties in the area where the property is located. The Property has high equipment specifications,
including a standard floor ceiling height of 2,800 mm, an electric capacity of 60 VA/m2 and a five-stage security
system. In addition, the Property well responds to the BCP (Business Continuity Plan) with the installation ofan emergency power generator (emergency power supply: 10 KVA/floor, 24 hours) for tenant exclusively
owned areas.
Summary of the Asset to be Acquired
Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 2 -Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 3)
Master Leasing Company(Note 4)

Type of Master Leasing(Note 4)

Seismic Risk (PML) (Note 5)
Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 6)

PMO Akihabara Kita
Real estate
1-245-1 Taito, Taito Ward, Tokyo and 1 other lot
1-31-7 Taito, Taito Ward, Tokyo
7-minute walk from Akihabara Station on the JR Yamanote Line, Sobu Line,
Keihin-Tohoku Line, the Tokyo Metro Hibiya Line and the Tsukuba Express ofMetropolitan Intercity Railway Company
6-minute walk from Suehirocho Station on the Tokyo Metro Ginza Line
December 14, 2018
OfficeFlat-roofed steel-frame, 8F
Nomura Real Estate Development Co., Ltd., First-Class Architect Office
Toda Corporation Tokyo Branch
Urban Housing Evaluation Center
1,021.96 m2
6,367.04 m2
Ownership
Ownership
100% (Note 2)
600%
None
Nomura Real Estate Development, Co., Ltd.
Nomura Real Estate Development, Co., Ltd.
Pass through
4.08% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)
・The property management company and master leasing company, Nomura Real
Estate Development Co., Ltd., is considered a related party under the Act on
Investment Trusts and Investment Corporations (“Investment Trust Act”).
¥8,450 million¥8,930 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: Japan Real Estate Institute)¥321 million

Leasing Status (As of August 31, 2019) (Note 7)
Total Number of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 8)3¥419 million (Including common area management fee)
¥360 million
100.0%
4,996.37 m2
4,996.37 m2
August2015

August2016

August2017

August2018

August2019

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 3 -

—
(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)———100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle.
However, because the Asset to be Acquired is a certified fireproof building in a fire prevention zone, the applied
coverage ratio is 100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura
Real Estate Development Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively
leased to Nomura Real Estate Development Co., Ltd. for the purpose of subleasing. The master lease agreement is apass-through scheme, in which Nomura Real Estate Development Co., Ltd., the master lease company, pays to theFund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is
expected to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated periodof use (i.e. 50 years as expected life time of a standard building), as a percentage of the expected recovery cost to thereplacement cost.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith November 1, 2019 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenant actually leasing space in the building of the Asset to be
Acquired as of August 31, 2019.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area managementfee” under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as of August
31, 2019 multiplied by 12 (rounded down to the nearest million yen). The figure does not include any other incidental
rent that may be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees andwarehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned leaseagreements (truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of August 31, 2019 by Total Leasable Floor
Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2018 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

(2) PMO Higashi-Shinbashi
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・In addition to being easily visible along Dai-ichi Keihin (National Road No. 15), the Property is a five-minute
walk from “Daimon” Station on the Toei Oedo and Asakusa Lines, a six-minute walk from “Onarimon” Stationon the Toei Mita Line, an eight-minute walk from “Hamamatsucho” Station on the JR Yamanote and KeihinTohoku Lines and an eight-minute walk from “Monorail Hamamatsucho” Station of the Tokyo Monorail.
Accordingly, with access to four stations on six lines, the Property is excellent for convenient transportation to
major business areas in central Tokyo.
・The Property is also located near JR “Tokyo” Station and JR “Shinagawa” Station, where the Shinkansen stops
Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 4 -at. Therefore, it is convenient for transportation to various regions in Japan and high demand from tenants is
expected, including the Tokyo branches of manufacturers and companies headquartered in rural areas. In
addition, it has excellent access to Haneda Airport and demand from foreign companies is high. Accordingly,
stable demand from tenants can be expected.
・ The Property has high equipment specifications, including a standard floor ceiling height of 2,800 mm, anelectric capacity of 60 VA/m2 and a five-stage security system.

Summary of the Asset to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect
BuilderPMO Higashi-Shinbashi
Real estate2-301-1 Higashi-Shinbashi, Minato Ward, Tokyo and 1 other lot
2-12-1 Higashi-Shinbashi, Minato Ward, Tokyo
5-minute walk from Daimon Station on the Toei Asakusa Line and Oedo Line
6-minute walk from Onarimon Station on the Toei Mita Line
8-minute walk from Hamamatsucho Station on the JR Yamanote Line and KeihinTohoku Line
8-minute walk from Monorail Hamamatsucho Station on the Tokyo Monorail
9-minute walk from Shimbashi Station on the JR Lines
7-minute walk from Shiodome Station on the Toei Oedo Line
April 13, 2018
OfficeFlat-roofed steel-frame, 9F
Nomura Real Estate Development Co., Ltd., First-Class Architect Office
The Zenitaka Corporation

Building Inspection Agency

Urban Housing Evaluation Center

Land
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 3)
Master Leasing Company

469.35 m2
3,430.06 m2
Ownership
Ownership
100% (Note 2)
700%
None

Area (Note 1)(Note 4)

Type of Master Leasing (Note 4)

Nomura Real Estate Development, Co., Ltd.
Nomura Real Estate Development, Co., Ltd.
Pass throughSeismic Risk (PML) (Note 5)

3.55% (Based on the Earthquake PML Appraisal Report (as of November 2019) by
Sompo Risk Management Inc.)

Notes

・The property management company and master leasing company, Nomura Real
Estate Development Co. Ltd., is considered a related party under the Investment
Trust Act.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 5 -AnticipatedAcquisition Price¥4,730 million¥5,180 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: Japan Real Estate Institute)
Appraisal NOI (Note 6)¥180 million
Leasing Status (As of August 31, 2019) (Note 7)
Total Number of Tenants
8
Total Rental Income¥245 million (Including common area management fee)
(Annual)Security Deposits¥245 million
Occupancy Rate
100.0%
Total Leased Floor Space
2,765.13 m2
Total Leasable Floor Space 2,765.13 m2
AugustAugustAugustAugustAugustHistorical Occupancy Rates
2015
2016
2017
2018
2019
(Note 8)
—
—
—
87.5%
100.0%

Appraisal Value and Method(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. However,
because the Asset to be Acquired is a certified fireproof building in a fire prevention zone, the applied coverage ratio is
100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura
Real Estate Development Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively
leased to Nomura Real Estate Development Co., Ltd. for the purpose of subleasing. The master lease agreement is apass-through scheme, in which Nomura Real Estate Development Co., Ltd., the master lease company, pays to theFund the same amount as the total sum of the rent based on the lease agreements that the master lease company
concludes with end tenants.
PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith November 1, 2019 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of August 31, 2019.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area managementfee” under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as of August
31, 2019 multiplied by 12 (rounded down to the nearest million yen). The figure does not include any other incidental
rent that may be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees andwarehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned leaseagreements (truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of August 31, 2019 by Total Leasable Floor
Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2017 and before because the building was not yet

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 6 -completed. The historical occupancy rates are based on the information from the seller.

(3) PMO Hamamatsucho
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Property is a one-minute walk from “Hamamatsucho” Station on the JR Yamanote and Keihin-Tohoku
Lines, a two-minute walk from “Monorail Hamamatsucho” Station on the Tokyo Monorail and a four-minute
walk from “Daimon” Station on the Toei Asakusa and Oedo Lines. Accordingly, with access to three stations
on five lines, the Property is excellent for convenient transportation to major business areas in central Tokyo.
・The Property is also located near JR “Tokyo” Station and JR “Shinagawa” Station, where the Shinkansen stops
at. Therefore, it is convenient for transportation to various regions in Japan and high demand from tenants is
expected, including the Tokyo branches of manufacturers and companies headquartered in rural areas. In
addition, it has excellent access to Haneda Airport and demand from foreign companies is high. Accordingly,
stable demand from tenants can be expected.
・Various redevelopment projects, including a large-scale redevelopment project in front of the station, areunderway in the vicinity of JR “Hamamatsucho” Station and the convenience for businesses and concentrationof companies are expected to be strengthened further in the future.
・The Property has high equipment specifications, including a standard floor ceiling height of 2,800 mm, anelectric capacity of 60 VA/m2, and a five-stage security system.

Summary of the Asset to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral

PMO Hamamatsucho
Real estate
2-117-2 Hamamatsucho, Minato Ward, Tokyo and 1 other lot
2-5-5 Hamamatsucho, Minato Ward, Tokyo
1-minute walk from Hamamatsucho Station on the JR Yamanote Line andKeihin-Tohoku Line2-minute walk from Monorail Hamamatsucho Station on Tokyo Monorail
4-minute walk from Daimon Station on the Toei Asakusa Line and Oedo Line
November 30, 2018
OfficeFlat-roofed steel-frame, 13F
Nomura Real Estate Development Co., Ltd., First-Class Architect OfficeSato Kogyo Co., Ltd.
Urban Housing Evaluation Center
500.00 m2 (Note 2)
2,872.41 m2
Ownership
Ownership
100% (Note 3)
600%
None

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 7 -Property Management
Company (Note 4)
Master Leasing Company(Note 5)

Type of Master Leasing (Note 5)
Seismic Risk (PML) (Note 6)
Notes
AnticipatedAcquisition Price

Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Pass through
4.66% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)
・The property management company and master leasing company, Nomura
Real Estate Development Co., Ltd., is considered a related party under theInvestment Trust Act.
¥4,380 million¥4,830 million (Based on the capitalization approach and as of November 1,
2019)(Appraiser: Japan Real Estate Institute)
Appraisal NOI (Note 7)¥163 million
Leasing Status (As of August 31, 2019) (Note 8)
Total Number of Tenants
12
Total Rental Income (Annual) ¥229 million (Including common area management fee)
Security Deposits¥224 million
Occupancy Rate
100.0%
Total Leased Floor Space
2,225.58 m2
Total Leasable Floor Space
2,225.58 m2
AugustAugustAugustAugustAugustHistorical Occupancy Rates
2019
2015
2016
2017
2018
Appraisal Value and Method(Note 9)—(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)———100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Land Area
It includes 16.37 m2 of the land area which is deemed to be a part of the road according to Article 42, Paragraph 2 of the
Building Standard Act.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. However,
because the Asset to be Acquired is a certified fireproof building in a fire prevention zone and is also a corner lot, theapplied coverage ratio is 100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura Real
Estate Development Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to
Nomura Real Estate Development Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-throughscheme, in which Nomura Real Estate Development Co., Ltd., the master lease company, pays to the Fund the same amountas the total sum of the rent based on the lease agreements that the master lease company concludes with end tenants.
PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal reportwith November 1, 2019 as the appraisal date.
Leasing Status“Total Number of Tenants” is the total number of end tenant actually leasing space in the building of the Asset to beDisclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 8 -Acquired as of August 31, 2019.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as of August 31, 2019multiplied by 12 (rounded down to the nearest million yen). The figure does not include any other incidental rent that may
be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of August 31, 2019 by Total Leasable Floor
Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2018 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

(4) GEMS Sangenjaya
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Property is a two-minute walk from “Sangen-jaya” Station on the Tokyu Railways Den-en-toshi and
Setagaya Lines, is located in an attractive corner location along a flourishing Chazawa Street and has excellent
visibility due to its extensive open shop design with a feeling of release. In addition, transportation is excellent
with the Property being two stations, five minutes via train to “Shibuya” Station and direct access to Otemachi
using the Tokyo Metro Hanzomon Line, which operates directly to “Otemachi” Station.
・In the vicinity of “Sangen-jaya” Station, there is a commercial area centered on restaurants visited by residents
along the railway line and because of its high convenience for daily living, such vicinity is highly valued as aresidential area, as well and because of its abundance of the commercial area population, stable demand canbe expected regardless of whether it is a weekday or holiday.
・The present composition of tenants is highly diverse, including flourishing stores associated with Sangen-jaya,
full-scale specialty stores and the new face stores that opened in the area for the first time. Therefore, theProperty can respond to diverse needs and stable operation of the facilities can be expected.
Summary of the Asset to be Acquired
Property Name
Type of Asset
Location
Registry(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Architect

GEMS Sangenjaya
Real estate
4-437-1 Taishido, Setagaya Ward, Tokyo
4-23-11 Taishido, Setagaya Ward, Tokyo
2-minute walk from Sangen-jaya Station on the Tokyu Railways Den-en-toshi Lineand Setagaya Line
April 26, 2018
Retail
Flat-roofed steel-frame, B2F/9F
Nomura Construction Industrial Co., Ltd., First-Class Architect OfficeDisclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 9 -BuilderNomura Construction Industrial Co., Ltd.

Building Inspection Agency

Urban Housing Evaluation Center

Land
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 3)
Master Leasing Company

222.11 m2
1,176.76 m2
Ownership
Ownership
100% (Note 2)
500%
None

Area (Note 1)(Note 4)

Type of Master Leasing(Note 4)

Seismic Risk (PML) (Note 5)

Notes

AnticipatedAcquisition Price

Geo-Akamatsu Co., Ltd.
Geo-Akamatsu Co., Ltd.
Pass through
4.83% (Based on the Earthquake PML Appraisal Report (as of November 2019) by
Sompo Risk Management Inc.)
・The property management company and master leasing company, Geo-AkamatsuCo., Ltd., is considered a related party under the Investment Trust Act.
・Pursuant to a contract with Nomura Real Estate Development Co., Ltd., the use,for no consideration, of the trademark “GEMS Sangenjaya” is subject to theproperty management agreement and the master lease agreement with GeoAkamatsu Co., Ltd. remaining in full force and effect.
¥1,815 million¥1,840 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: JLL Morii Valuation & Advisory K.K.)
Appraisal NOI (Note 6)¥73 million
Leasing Status (As of August 31, 2019) (Note 7)
Total Number of Tenants
9
Total Rental Income¥89 million (Including common area management fee)
(Annual)Security Deposits¥71 million
Occupancy Rate
90.7%
Total Leased Floor Space
878.93 m2
Total Leasable Floor Space
969.15 m2
AugustAugustAugustAugustAugustHistorical Occupancy Rates
2019
2015
2016
2017
2018

Appraisal Value and Method(Note 8)—(Note 1)
(Note 2)

(Note 3)(Note 4)——100.0%

90.7%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. However,
because the Asset to be Acquired is a certified fireproof building in a fire prevention zone, the applied coverage ratio is
100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Geo-Akamatsu

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 10 -

Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to Geo-Akamatsu Co.,
Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme, in which Geo-Akamatsu Co.,
Ltd., the master lease company, pays to the Fund the same amount as the total sum of the rent based on the lease agreementsthat the master lease company concludes with end tenants.
(Note 5) PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with November 1, 2019 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is the total number of end tenants actually leasing space in the building of the Asset to be
Acquired as of August 31, 2019.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the Asset to be Acquired is actually leased as of August 31, 2019multiplied by 12 (rounded down to the nearest million yen). The figure does not include any other incidental rent that may
be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees and warehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of August 31, 2019 by Total Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 8) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2017 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

(5) Landport Higashi-Narashino
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Property is located within an approximately 30 km area to the center of Tokyo, approximately 4.3 km from
Keiyo Road “Takeishi” IC and approximately 7.3 km from the Higashi-Kanto Expressway “Chiba Kita” IC
and has good access to Chiba, Saitama and Northern Kanto areas. It also has access to the Tokyo-Gaikan
Expressway and Japan National Route 16. Therefore, in addition to its capability of delivery to a wide-area of
the Tokyo metropolitan area, it also has access to Narita International Airport, Haneda Airport and the Portof Tokyo using expressways; thus, it is located in a fit distribution place that can meet diverse logistics needs.
・The number of the working age population (15-64 years old) within the 2 km radius of the Property exceeds
63,000 people (Note 1), which is greater than other comparable areas in Chiba Prefecture with concentrationsof logistics facilities, such as the Chiba New Town. It is also possible to commute on foot to “Yachiyodai”
Station on the Keisei Electric Railway Main Line and the area is accessible by bus, giving it a high advantage insecuring labor force.
・The Property is a large-scale property with a total floor space of more than 60,000 m 2 and it is designed for
improved operational efficiency, including improved transportation efficiency by adopting a ramp way andimproved rack storage efficiency by adopting an 11 m×11 m grid (Note 2). In addition, in order to prevent
unauthorized access and illegal parking, security gates using IC cards were adopted, resulting in strengthened
security.
(Notes 1) Based on the “2015 Population Census” conducted by the Statistics Bureau of Japan.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 11 -

(Notes 2) A “grid” is a lattice-shaped space formed by pillars and joists.

Summary of the Asset to be Acquired
Property Name
Type of Asset
TrusteeTerm of Trust Agreement
Registry
Location(Note 2)StreetAccessCompletion Date (Note 2)
Use (Note 2)
Structure (Note 2)
Architect
Builder
Building Inspection Agency
Land
Area (Note 2)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 5)
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML) (Note 6)
Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

Landport Higashi-Narashino
Trust beneficiary interest in real estate
Sumitomo Mitsui Trust Bank, Limited
From July 9, 1991 to June 30, 2027(Note 1)
7-616-1, Higashi-Narashino, Narashino City, Chiba and 1 other lot
7-3-1, Higashi-Narashino, Narashino City, Chiba

Approx. 4.3 km from Takeishi Interchange on Keiyo Road
Approx. 7.3km from Chiba Kita Interchange on Higashi-Kanto Expressway
Approx. 8.4km from Hanawa Interchange on Keiyo Road
18-minute walk from Yachiyodai Station on the Keisei Electric Railway Main
Line
July 18, 2019
Warehouse

Steel-frame alloy plating copper roofing 5F
Sumitomo Mitsui Construction Co., Ltd., First-Class Architect Office
Sumitomo Mitsui Construction Co., Ltd.
Japan Constructive Inspect Association
29,854.57 m2
61,573.49 m2 (Note 3)
Ownership
Ownership
70% (Note 4)
200%
None
Nomura Real Estate Development Co., Ltd., Nomura Real Estate Partners Co.,Ltd.
6.13% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)
・The property management companies, Nomura Real Estate Development Co.,
Ltd. and Nomura Real Estate Partners Co., Ltd., fall under a related party underthe Investment Trust Act.
¥11,872 million¥15,700 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: Japan Valuers Co., Ltd.)¥678 million

Leasing Status (scheduled) (Note 8)
Total Number of Tenants
Name of Tenant
Total Rental Income(Annual)Security Deposits

1
Undisclosed
Undisclosed
Undisclosed

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 12 -

Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 9)100.0%
61,088.01 m2
61,088.01 m2
August2015—

August2016

August2017—

August2018——

August2019
0.0%(Note 1)

Trust Term
On March 2, 2020 (the planned acquisition date of the Property), the trust agreement is expected to be amended, with its
expiration date changed to December 31, 2034.
(Note 2) Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 3) Floor Area
Floor area of an annex building (staff lounge, etc.) of 59.76 m2 is also included.
(Note 4) Building Coverage Ratio
The Asset to be Acquired is located in an industrial zone where the building coverage ratio is 60% in principle. However,
because the Asset to be Acquired is in a corner lot, the applied coverage ratio is 70%.
(Note 5) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 6) PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
(Note 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with November 1, 2019 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is the total number of end tenants scheduled to lease space in the building of the Asset to be
Acquired beginning from January 1, 2020.
“Name of Tenants,” “Total Rental Income (annual),” and “Security Deposits” are not disclosed because consent of the end
tenant to such disclosure has not been obtained.
“Total Leased Floor Space” indicates the total floor space scheduled to be leased to end tenants as of January 1, 2020
(scheduled). “Occupancy Rates” are calculated based on “Total Leased Floor Space”.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2018 and before because the building was not yet completed.

(6) PROUD FLAT Shibuya Tomigaya
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Property is located within walking distance of the Shibuya area, which is one of Japan’s leading commercial
areas, and is a 12-minute walk from “Yoyogi-Hachiman” Station on the Odawara Line of Odakyu Electric
Railway, a 12-minute walk from “Yoyogi-Koen” Station on the Tokyo Metro Chiyoda Line and a 13-minute
walk from “Komaba-todaimae” Station on the Keio Inokashira Line. Using these stations, it has an easy accessto major business and commercial areas, such as Shinjuku, Shibuya, Akasaka and Otemachi, and it offers
excellent transportation.
・Along the road from the stations nearest to the Property, which are “Yoyogi-Hachiman” Station and “YoyogiKoen” Station, there are cafes and other kinds of restaurants, as well as supermarkets, drugstores and otherkinds of retail stores. On the east side of Yamate Street, the “Tomigaya 1-chome Shopping District” andDisclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 13 -

“Yoyogi-Hachiman Shopping District” were expanded, making it highly convenient for people to live in thearea. On the northeast side of the Property, there is “Yoyogi Park” (park area: approximately 540,000 m 2),
which has a vast green area, and the Property is located in an area where people can enjoy the greenery.
Therefore, demand from single workers and double incomes and no kids (“DINK”) populations who seek
superior living environments in addition to urban-type living convenience can be expected.
・Nomura Real Estate Partners Co., Ltd., which is the property management company, provides unique services
with high levels of customer satisfaction, such as 24-hour emergency attendance services and disasterprevention support services. For this reason and other related reasons, high-quality property operations can be
expected.

Summary of the Asset to be Acquired
Property Name
Type of Asset
TrusteeTerm of Trust Agreement
Registry
Location(Note 2)StreetAccessCompletion Date (Note 2)
Use (Note 2)
Structure (Note 2)
Leasable Unit
Architect
Builder
Building Inspection Agency
Land
Area (Note 2)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company(Note 5)

Type of Master Leasing(Note 5)

Seismic Risk (PML) (Note 6)

PROUD FLAT Shibuya Tomigaya
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust and Banking Corporation
From March 31, 2004 to June 30, 2027(Note 1)
2-1446-16 Tomigaya, Shibuya Ward, Tokyo, and 3 other lots
2-20-8 Tomigaya, Shibuya Ward, Tokyo

12-minute walk from Yoyogi-Hachiman Station on the Odakyu Odawara Line
12-minute walk from Yoyogi-Koen Station on the Tokyo Metro Chiyoda Line
13-minute walk from Komaba-todaimae Station on the Keio Inokashira Line
February 7, 2019
Apartment
Flat-roofed reinforced concrete, 10F
109
Mabuchi Construction Co., Ltd., First-Class Architect Office

Mabuchi Construction Co., Ltd.
Ippan Zaidan Hojin Jutaku Kinyu Fukyu Kyokai
1,421.31 m2
5,079.46 m2
Ownership
Ownership
100% (Note 3)
300%
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through3.77% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 14 -

Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

・The property management company and master leasing company, Nomura Real
Estate Partners Co., Ltd., falls under a related party under the Investment TrustAct.
¥3,960 million¥4,440 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: The Tanizawa Sogo Appraisal Co., Ltd.)¥180 million

Leasing Status (As of August 31, 2019) (Note 8)
Total Number of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 9)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)1
¥192 million (Including common area management fee)
¥16 million
78.5%
3,244.22 m2
4,130.88 m2
August2015—

August2016

August2017—

August2018——

August2019
78.5%

Trust Term
On January 7, 2020 (the planned acquisition date of the Property), the trust agreement is expected to be amended, with its
expiration date changed to January 31, 2040.
Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Property is located in a commercial zone where the building coverage ratio is 80% in principle. However, because theAsset to be Acquired is a certified fireproof building in a quasi-fire prevention zone and also in a corner lot, the applied
coverage ratio is 100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura Real
Estate Partners Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to
Nomura Real Estate Partners Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme,in which Nomura Real Estate Partners Co., Ltd., the master lease company, pays to the Fund the same amount as the totalsum of the rent based on the lease agreements that the master lease company concludes with end tenants.
PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with November 1, 2019 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofAugust 31, 2019, multiplied by 12 (rounded down to the nearest million yen). The figure does not include any otherincidental rent that may be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees
and warehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of August 31, 2019 by Total Leasable Floor Space.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 15 -

facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2018 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.
The construction of the Property was completed on February 7, 2019 and the occupancy rate as of October 31, 2019was 90.9%.

(7) PROUD FLAT Miyazakidai
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Property is a two-minute walk from “Miyazaki-dai” Station on the Tokyu Railways Den-en-toshi Line, andby using the Tokyo Metro Hanzomon Line, which has direct service to, among other stations, Futako-Tamagawa
and Shibuya, the Property offers direct access to Omotesando and Otemachi. It also offers excellent
convenience for commuting to work or school, and going out on holidays.
・The area around the Property is rich in greenery, including the cherry trees and other trees along the streets. In
addition, the Property has an abundance of convenient facilities necessary for daily life, such as supermarkets
and drugstores, the area has a highly convenient and quiet living environment as a result of planned urban
development unique to “Tokyu Tama Den-en City,” and demand from the single working population can be
expected.
・Nomura Real Estate Partners Co., Ltd., which is the property management company, provides unique services
with high levels of customer satisfaction, such as 24-hour emergency attendance services and disasterprevention support services. For this reason and other related reasons, high-quality property operations can be
expected.
Summary of the Asset to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Unit
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio

PROUD FLAT Miyazakidai
Real estate
2-8-1 Miyazaki, Miyamae Ward, Kawasaki City, Kanagawa and 1 other lot
2-8-1 Miyazaki, Miyamae Ward, Kawasaki City, Kanagawa
2-minute walk from Miyazaki-dai Station on the Tokyu Railways Den-en-toshi Line
February 9, 2018
Apartment
Flat-roofed reinforced concrete, 8F
82
Shu Kenchiku Kenkyu Jimusho Kabushiki Kaisha

Mabuchi Construction Co., Ltd.
Ippan Zaidan Hojin Jutaku Kinyu Fukyu Kyokai
634.00 m2
2,473.04 m2
Ownership
Ownership
90% (Note 2)300%

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 16 -Collateral
Property Management
Company (Note 3)
Master Leasing Company(Note 4)

Type of Master Leasing(Note 4)

Seismic Risk (PML) (Note 5)
Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 6)

None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through
4.45% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)
・The property management company and master leasing company, Nomura Real
Estate Partners Co., Ltd., falls under a related party under the Investment TrustAct.
¥1,390 million¥1,490 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: The Tanizawa Sogo Appraisal Co., Ltd.)¥65 million

Leasing Status (As of August 31, 2019) (Note 7)
Total Number of Tenants
Total Rental Income(Annual)Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 8)(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

1
Undisclosed
Undisclosed
100.0%
1,840.44 m2
1,840.44 m2
August2015—

August2016

August2017——

August2018
100.0%

August2019
100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Property is located in a commercial zone where the building coverage ratio is 80% in principle. However, because theAsset to be Acquired is a certified fireproof building in a quasi-fire prevention zone and also in a corner lot, the applied
coverage ratio is 100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura Real
Estate Partners Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to
Nomura Real Estate Partners Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme,in which Nomura Real Estate Partners Co., Ltd., the master lease company, pays to the Fund the same amount as the totalsum of the rent based on the lease agreements that the master lease company concludes with end tenants.
PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with November 1, 2019 as the appraisal date.
Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income (annual),” and “Security Deposits” are not disclosed because consent of the end tenant to suchdisclosure has not been obtained.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 17 -

“Occupancy Rate” is calculated by dividing the Total Leased Floor Space by the Total Leasable Floor Space as of August
31, 2019.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 8) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2017 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

(8) PROUD FLAT Asakusabashi III
Strengths of the Asset to be Acquired
The main strengths of the Asset to be Acquired are as follows.
・The Property is a two-minute walk from “Asakusa-bashi” Station on the JR Sobu Line and the Toei Asakusa
Line, and a seven-minute walk from “Bakuro-cho” Station on the JR Sobu Rapid Line. Using these stations, it
has an easy access to business areas, such as Akihabara, Tokyo, Nihonbashi and Shinbashi; the Property is
excellent for convenient transportation.
・The Asakusa-bashi area, where the Property is located, within approximately 2.5 kilometers from JR “Tokyo”
Station and is a metropolitan area near central Tokyo. While the area gives a feeling that central Tokyo is close
to the area and offers a high level of convenience for daily living, it also has an excellent living environmentthat preserves the atmosphere of the Edo period and provides an opportunity to experience the pleasantnessof the waterfront from the Sumida River Terrace and water buses. Demand can be expected from single workers
and DINK populations who prefer to live in close proximity to working place.
・Nomura Real Estate Partners Co., Ltd., which is the property management company, provides unique services
with high levels of customer satisfaction, such as 24-hour emergency attendance services and disasterprevention support services. For this reason and other related reasons, high-quality property operations can be
expected.

Summary of the Asset to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Unit
Architect

PROUD FLAT Asakusabashi III
Real estate
1-32-4 Yanagibashi, Taito Ward, Tokyo
1-25-2 Yanagibashi, Taito Ward, Tokyo
2-minute walk from Asakusa-bashi Station on the JR Sobu Line and the Toei
Asakusa Line
7-minute walk from Bakuro-cho Station on the JR Sobu Rapid Line
July 31, 2018
Apartment, bicycle parking
Flat-roofed reinforced concrete, 10F
41
E.A.S.T. architects architecture & urban design Co., Ltd.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 18 -

BuilderBuilding Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 3)
Master Leasing Company(Note 4)

Type of Master Leasing(Note 4)

Seismic Risk (PML) (Note 5)
Notes
AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 6)

KOSHIN KENSETSU Co., Ltd.

Ippan Zaidan Hojin Jutaku Kinyu Fukyu Kyokai
356.85 m2
1,575.38 m2
Ownership
Ownership
100% (Note 2)
360%
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through7.09% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)
・The property management company and master leasing company, Nomura Real
Estate Partners Co., Ltd., fall under a related party under the Investment TrustAct.
¥1,230 million¥1,260 million (Based on the capitalization approach and as of November 1, 2019)(Appraiser: The Tanizawa Sogo Appraisal Co., Ltd.)¥54 million

Leasing Status (As of August 31, 2019) (Note 7)
Total Number of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 8)(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)

1
¥71 million (Including common area management fee)
¥5 million
100.0%
1,232.46 m2
1,232.46 m2
August2015—

August2016

August2017——

August2018
0.0%

August2019
100.0%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Building Coverage Ratio
The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. However,
because the Asset to be Acquired is a certified fireproof building in a fire prevention zone, the applied coverage ratio is
100%.
Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura Real
Estate Partners Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to
Nomura Real Estate Partners Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme,in which Nomura Real Estate Partners Co., Ltd., the master lease company, pays to the Fund the same amount as the totalsum of the rent based on the lease agreements that the master lease company concludes with end tenants.
PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 19 -

to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with November 1, 2019 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc,
and then the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofAugust 31, 2019 multiplied by 12 (rounded down to the nearest million yen). The figure does not include any other incidental
rent that may be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees andwarehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space by the Total Leasable Floor Space as of August
31, 2019.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 8) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2017 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

(9) PROUD FLAT Togoshi-Koen
Strengths of the Asset to be Acquired
The main strengths of the asset to be acquired are as follows.
・The Property is a two-minute walk from “Togoshi-koen” Station on the Tokyu Railways Oimachi Line, aneight-minute walk from “Nakanobu” Station on the Toei Asakusa Line and a nine-minute walk from“Nakanobu” Station on the Tokyu Railways Oimachi Line. Using these stations, it has an easy access to stylishcommercial areas, such as Jiyugaoka and Futako-Tamagawa, in addition to the business areas of Shinagawa,Shinbashi and Gotanda; the Property is excellent for convenient transportation.
・The Property is a two-minute walk from “Togoshi-koen” Station, the nearest station. The “Togoshi-koen
Central Shopping District,” which extends north and south of the station, has an abundance of convenientfacilities necessary for living, such as supermarkets and drugstores, and the Property is located in a low-rise
residential district while located close to the station. In addition, in the vicinity of the Property, there is “Togoshi
Park,” a ward-established park representing Shinagawa Ward, which was built using the remnants of the gardenof the shimoyashiki (second house) of the Hosokawa clan, the feudal lord of the state of Higo Kumamoto(currently Kumamoto Prefecture) during the Edo Period, and the area offers an excellent living environment.
Therefore, demand from single workers and DINK populations who seek convenient living conditions andsuperior living environments can be expected.
・Nomura Real Estate Partners Co., Ltd., which is the property management company, provides unique services
with high levels of customer satisfaction, such as 24-hour emergency attendance services and disasterprevention support services. For this reason and other related reasons, high-quality property operations can beDisclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 20 -

expected.

Summary of the Asset to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion Date (Note 1)
Use (Note 1)
Structure (Note 1)
Leasable Unit
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management
Company (Note 4)
Master Leasing Company(Note 5)

Type of Master Leasing(Note 5)

Seismic Risk (PML) (Note 6)

Notes

AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI (Note 7)

PROUD FLAT Togoshi-Koen
Real estate
6-58-6 Togoshi, Shinagawa Ward, Tokyo
6-8-4 Togoshi, Shinagawa Ward, Tokyo
2-minute walk from Togoshi-Koen Station on the Tokyu Railways Oimachi Line
8-minute walk from Nakanobu Station on the Toei Asakusa Line
9-minute walk from Nakanobu Station on the Tokyu Railways Oimachi Line
November 13, 2018
Apartment, Store, Bicycle parking and Car parking
Flat-roofed reinforced concrete, 5F
99Form Architect Planning Co., Ltd.
KOSHIN KENSETSU Co., Ltd.

Ippan Zaidan Hojin Jutaku Kinyu Fukyu Kyokai
1,452.80 m2
3,354.13 m2
Ownership
Ownership
62.11% (Note 2)
183.62%(Note 3)
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through
6.41% (Based on the Earthquake PML Appraisal Report (as of November 2019)
by Sompo Risk Management Inc.)
・The property management company and master leasing company, Nomura Real
Estate Partners Co., Ltd., falls under a related party under the Investment Trust
Act.
・Part of the land of the Asset to be Acquired is subject to a right of passage by theowner of the adjacent land, as the adjacent land is surrounded land.
¥2,580 million¥2,630 million (Based on the capitalization approach as of November 1, 2019)(Appraiser: The Tanizawa Sogo Appraisal Co., Ltd.)¥112 million

Leasing Status (As of August 31, 2019) (Note 8)
Total Number of Tenants
Total Rental Income(Annual)1¥139 million (Including common area management fee)

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 21 -

Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates(Note 9)¥11 million
96.7%
2,490.30 m2
2,575.49 m2
August2015—

August2016

August2017—

August2018——

August2019
96.7%(Note 1)

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
(Note 2) Building Coverage Ratio
With respect to the building coverage ratio, 153.73 m2 of the Property’s land is located in a neighborhood commercial
district where the building coverage ratio is 80%, and 1,298.75 m2 of the Property’s land is located in a Category 1 residential
district where the building coverage ratio is 60%; therefore, a weighted average figure based on the area ratio is applied.
Although the land use category was changed as of March 6, 2019, the figure before such change is stated above.
(Note 3) Floor Area Ratio
As part of the land of the Property is located in a neighborhood commercial district with a floor area ratio of 261.6% andthe other part is located in a Category 1 residential district with a floor area ratio of 174.4%, a weighted average figure basedon the area ratio is applied.
(Note 4) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 5) Master Lease
Upon the acquisition of the Asset to be Acquired, the Fund plans to enter into a master lease agreement with Nomura Real
Estate Partners Co., Ltd. Under this agreement, the building of the Asset to be Acquired will be collectively leased to
Nomura Real Estate Partners Co., Ltd. for the purpose of subleasing. The master lease agreement is a pass-through scheme,in which the master lease company, pays to the Fund the same amount as the total sum of the rent based on the leaseagreements that the master lease company concludes with end tenants.
(Note 6) PML (Probable Maximum Loss)PML shows the probable losses which would be caused by a maximum size earthquake (a great earthquake which is expected
to occur once every 475 years, or with 10% probability of once every 50 years) during the anticipated period of use (i.e. 50
years as expected life time of a standard building), as a percentage of the expected recovery cost to the replacement cost.
(Note 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report,with November 1, 2019 as the appraisal date.
(Note 8) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased en bloc, andthen the lessee under such lease agreement (the master lease agreement) sub-leases each of the rooms to the end tenants.
“Total Rental Income” indicates the amount calculated by the “monthly rent + monthly common area management fee”
under the lease agreements with the end tenants to whom the building of the Asset to be Acquired is actually leased as ofAugust 31, 2019 multiplied by 12 (rounded down to the nearest million yen). The figure does not include any other incidental
rent that may be agreed upon in connection with the said lease agreements, such as parking fees, signboard fees andwarehouse fees.
“Security Deposits” indicates the amount of security and other deposits specified in the aforementioned lease agreements(truncated at the nearest million yen).
“Occupancy Rate” is calculated by dividing the Total Leased Floor Space by the Total Leasable Floor Space as of August
31, 2019.
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of August 31, 2019.
“Total Leasable Floor Space” is the total floor space of offices, commercial facilities, logistics facilities, residential
facilities, lodging facilities, etc. within the Asset to be Acquired that can be leased as of August 31, 2019 (If the common
area, etc. is leased, the floor space thereof is included).
(Note 9) Historical Occupancy Rates
There are no applicable occupancy rates for the end of August 2018 and before because the building was not yet
completed. The historical occupancy rates are based on the information from the seller.

4. Profile of Seller of the Assets to be Acquired
Company Name

Nomura Real Estate Development Co., Ltd.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 22 -

Head Office

1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Representative

Seiichi Miyajima, President & CEO

Principal Business

Real Estate

Capital¥2,000 million (as of April 1, 2019)

Established

April 15, 1957

Net Assets¥174.8 billion (as of March 31, 2019)

Total Assets¥1,211.9 billion (as of March 31, 2019)

Major Shareholder
Nomura Real Estate Holdings, Inc. (100.0%) (as of March 31, 2019)(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller

CapitalPersonal

Transactions

Related Party
Status

Nomura Real Estate Development Co., Ltd. holds 4.63% of the Fund’s investment
units (as of August 31, 2019). As a wholly owned subsidiary of Nomura Real Estate
Holdings, Inc., which also holds 100% interests in the shares of the AssetManagement Company, Nomura Real Estate Development Co., Ltd. is a related partyof the Asset Management Company as defined in the Investment Trust Act.
The Asset Management Company’s employees and officers are seconded from
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd. is a property management company of
the Fund and a lessee of real estate properties owned by the Fund. Moreover, theAsset Management Company has entered into an agreement on provision of
information and a basic agreement on the leasing value chain with the said company.
Nomura Real Estate Development Co., Ltd. does not fall under the definition of a
related party of the Fund for the accounting purpose. However, the said company isa related party of the Asset Management Company as it is a subsidiary of a common
parent company, as stated above.

5. Status of Owner of the Assets to be Acquired
Status of Owner (Note1)

Current Owner and/or Trustee

Company Name

Nomura Real Estate Development
Co., Ltd.

Relationship with Parties

Please refer to “4. Profile of Seller

with Special Interestof the Assets to be Acquired”

Previous Owner and/or Trustee
—

—

above
Background/Reasons for
Acquisition, etc.
Acquisition Price(Including Other RelatedExpenses)Acquisition Date
(Note1)(Note2)For development for later sale——(Note2)———

All Assets to be Acquired subject to the Acquisitions have the same owner.
Omitted because, for the land, the current owner owned for more than one year, and, for the building, there is no previous
owner.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 23 -

6. Transactions with Related Parties(1) Transactions related to the acquisition of the Assets to be Acquired
The acquisition of the Assets to be Acquired is considered to fall under transactions with a related party underthe Investment Trust Act as stated above. Accordingly, the acquisitions of each property, the acquisition prices,and other relevant terms have been duly examined and authorized by the Asset Management Company’s
compliance committee and investment committee pursuant to its investment committee rules, rules ofcompliance, compliance manual, rules concerning transactions with related parties, and other relevant internal
rules and guidelines.
(2) The property management and master lease transactions of PMO Akihabara Kita, PMO Higashi-Shinbashi and
PMO Hamamatsucho
The property management company and master lease company of PMO Akihabara Kita, PMO HigashiShinbashi and PMO Hamamatsucho, Nomura Real Estate Development Co., Ltd., is considered to fall under arelated party under the Investment Trust Act as stated above. Accordingly, the fees and other terms of theconsignment of property management as well as the lease period, rental rate, and other leasing terms related to
PMO Akihabara Kita, PMO Higashi-Shinbashi and PMO Hamamatsucho have been duly examined andauthorized by the Asset Management Company’s compliance committee and investment committee pursuant to
its investment committee rules, rules of compliance, compliance manual, rules concerning transactions withrelated parties, and other relevant internal rules and guidelines.
(3) The property management and master lease transactions of PROUD FLAT Shibuya Tomigaya, PROUD FLAT

Miyazakidai, PROUD FLAT Asakusabashi III and PROUD FLAT Togoshi-Koen
The property management company and master lease company of PROUD FLAT Shibuya Tomigaya, PROUDFLAT Miyazakidai, PROUD FLAT Asakusabashi III and PROUD FLAT Togoshi-Koen, Nomura Real Estate
Partners Co., Ltd., is considered to fall under a related party under the Investment Trust Act as stated above.
Accordingly, the fees and other terms of the consignment of property management as well as the lease period,
rental rate, and other leasing terms related to PROUD FLAT Shibuya Tomigaya, PROUD FLAT Miyazakidai,
PROUD FLAT Asakusabashi III and PROUD FLAT Togoshi-Koen have been duly examined and authorized
by the Asset Management Company’s compliance committee and investment committee pursuant to its
investment committee rules, rules of compliance, compliance manual, rules concerning transactions with relatedparties, and other relevant internal rules and guidelines.
(4) The property management and master lease transactions of GEMS Sangenjaya
The property management company and master lease company of GEMS Sangenjaya, Geo-Akamatsu Co., Ltd.,is considered to fall under a related party under the Investment Trust Act as stated above. Accordingly, the feesand other terms of the consignment of property management as well as the lease period, rental rate, and otherleasing terms related to GEMS Sangenjaya have been duly examined and authorized by the Asset Management
Company’s compliance committee and investment committee pursuant to its investment committee rules, rulesof compliance, compliance manual, rules concerning transactions with related parties, and other relevant internal
rules and guidelines.
(5) The property management transactions of Landport Higashi-Narashino
The property management companies of Landport Higashi-Narashino, Nomura Real Estate Development Co.,
Ltd. and Nomura Real Estate Partners Co., Ltd., are each considered to fall under a related party under theInvestment Trust Act as stated above. Accordingly, the fees and other terms of the consignment of property
Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 24 -

management related to Landport Higashi-Narashino have been duly examined and authorized by the AssetManagement Company’s compliance committee and investment committee pursuant to its investmentcommittee rules, rules of compliance, compliance manual, rules concerning transactions with related parties,
and other relevant internal rules and guidelines.
Since none of the transactions described in (1) through (5) above falls under the category of transactions
between the Fund and a related party of an asset management company as set forth in Article 201-2, Paragraph 1 ofthe Investment Trust Act, the approval of the Board of Directors of the Fund has not been obtained.
7.

Form of Payment, etc.
(1) Form of Payment
The Fund will complete settlement by a lump-sum payment on the date of acquisition by paying the agreed
price for the property in full to the seller using proceeds from the issuance of new investment units resolved
at the Board of Directors meeting held today (Note), borrowings and cash on hand.
(Note)For details, please refer to “Notice Concerning the Issuance of New Investment Units and Secondary Offering ofInvestment Units” released today.

(2) Impact on the Financial Position of the Fund in Case of a Failure to Fulfill Our Forward Commitment
The purchase and sale agreements to be executed in connection with the acquisition of the Assets to be
Acquired are considered to be a forward commitment(Note) as stipulated in the Financial Services Agency’sComprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. The said
contract includes the provisions below.
(Note)

i.
ii.

iii.

iv.

8.

Defined as purchase and sale agreements or similar contracts which are signed one month or more in advance of
the actual date on which the purchase price is paid and the property is transferred to the purchaser.

Under the said contract, procuring funds through the issuance of new investment units by theacquisition date is set forth as a condition precedent for the obligation of the buyer.
Where there is material breach of terms of the contract by the seller or buyer (hereinafter such seller
or buyer shall be referred to as the “violating party”), the other party may cancel the contract if suchbreach is not remedied after the passage of a prescribed period following the date of the nonviolating party issuance of a notification requiring the violating party to perform its obligation or ifsuch breach is objectively and reasonably deemed impossible to remedy.
If the contract is cancelled in accordance with paragraph ii) above, the non-violating party may
require the violating party to pay a penalty charge that is equivalent to 20% of the acquisition price. A
non-violating party may not request to increase or decrease the amount of the penalty charge even ifmonetary damage it has actually suffered due to the breach is in excess of or falls short of 20% of theacquisition price.
The buyer may negotiate with the seller to change the acquisition price if the buyer has obtained an
appraisal report of the Asset to be Acquired and the appraisal value shown in the appraisal report goes
below the acquisition price. In such case, the buyer may cancel the contract without any
indemnification or compensation, if the parties have failed to agree on the acquisition price by thescheduled date of acquisition.

Schedule for the Acquisitions
December 5, 2019
January 7, 2020

Conclusion of purchase and sale agreements for the Assets to be Acquired
Acquisition of PMO Akihabara Kita, PMO Higashi-Shinbashi, PROUD FLAT

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 25 -

Miyazakidai and PROUD FLAT Asakusabashi III (delivery of real estate) andacquisition of PROUD FLAT Shibuya Tomigaya (delivery of trust beneficial
interest)

9.

March 2, 2020

Acquisition of Landport Higashi-Narashino (delivery of trust beneficial interest)

March 10, 2020
April 2, 2020

Acquisition of PROUD FLAT Togoshi-Koen (delivery of real estate)
Acquisition of PMO Hamamatsucho and GEMS Sangenjaya (delivery of realestate) (However, the scheduled date of acquisition may be changed to anotherdate in March 2020.)

Outlook
Regarding impact of the Acquisitions on operations in the fiscal period ending February 29, 2020
(September 1, 2019 to February 29, 2020) and the fiscal period ending August 31, 2020 (March 1, 2020
to August 31, 2020), please refer to the “Notice Concerning Revised Forecasts of Financial Results for the
Fiscal Periods Ending February 29, 2020 and August 31, 2020” announced today.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 26 -

10. Appraisal Summary

Property NamePMO Akihabara Kita

Appraisal Value¥8,930,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

November 1, 2019
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

8,930,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to415,449,000
438,184,000
22,735,000
25,327,000
24,350,000

Repair Costs

2,795,000

Management

Fees
Advertisement

9,080,000,000

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable net
revenue over the medium to long term by thecapitalization rate.
Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

94,178,000

Utilities Costs

Property

GroundsforLeasing Costs, etc.
Taxes

10,386,000

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

3,288,000

Calculated as an annualized amount based on assumed
tenant turnover rates.

27,498,000

Insurance Premium

294,000

Other Expenses

240,000(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.

(5) Capital Expenditure Reserve

Calculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties and theoccupancy rate of the leased portion of the property.
Calculated based on costs at similar properties and theaverage annual maintenance and renewal fees given in
the engineering report.

Calculated based on taxes paid for FY2019(depreciable asset tax is an assumed amount)
Calculated based on insurance quotes and thepremiums of similar properties.
No particular expenses to be recorded as otherexpenses.

321,271,000
3,249,000

6,850,000

Estimated profit based on an investment yield of
1.0%.
Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 27 -

(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

317,670,000
3.5%
8,780,000,000
3.3%

Terminal Capitalization Rate
3.7%

Cost Approach Price
Ratio of Land8,490,000,000
75.6%

Ratio of Building

Matters Noted in
Reconciliation ofIndicated Value andDetermination of
Appraisal Value

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as an investment,
general forecasts of the economic growth rate andprice trends in real estate and rents.

24.4%

The area surrounding “Akihabara” Station, where the Property is located, has access to“Akihabara” Station on the Tokyo Metro Hibiya Line and “Suehirocho” Station on the Tokyo
Metro Ginza Line, as well as JR “Akihabara” Station, and offers superior transportation accessto locations in central Tokyo. In addition, the Tsukuba Express Line, which makes its final
stop at “Tsukuba” Station, has extended its service to this area and offers excellent access toareas in northwestern Chiba, Ibaragi and other regions. Therefore, it is possible to attract
demand from companies seeking business locations and companies seeking collaboration
between industry and academia. In fact, there are many head offices and related companies
of major manufacturers in the area, and it is one of the most promising areas in the Tokyo
metropolitan area as an office district.
The Building is newly-built and designed as a high-value-added office building, offeringsuperior quality and high-standard facilities compared to the office buildings of similar size.
In view of the above factors, the appraisal value was determined.

Property NamePMO Higashi-Shinbashi

Appraisal Value¥5,180,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

November 1, 2019
(Yen)

Item
Capitalization Approach Price

Amount orPercentage
5,180,000,000

Price Calculated by the Direct
Capitalization Approach

5,280,000,000(1) Operating Income (a)-(b)241,453,000

Grounds
Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable net
revenue over the medium to long term by thecapitalization rate.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 28 -

(a) Gross
IncomeRental(b) Losses due to
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs
Utilities Costs

13,845,000
15,013,000

1,499,000

Property Management
Fees
for

Leasing Costs, etc.
Taxes

Other Expenses(3) Net Operating Income
from Leasing Business(NOI=(1)-(2))(4)
Profitthrough
Management of Temporary

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

1,917,000

Calculated as an annualized amount based on assumed
tenant turnover rates.

159,0000

Calculated based on taxes paid for FY2019(depreciable asset tax is an assumed amount).
Calculated based on insurance quotes and thepremiums of similar properties.
No particular expenses to be recorded as otherexpenses.

180,824,000

2,292,000

Estimated profit based on an investment yield of
1.0%.

3,680,000

Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

179,436,000
3.4%
5,080,000,000
3.2%

Terminal Capitalization Rate
3.6%

Cost Approach Price

Calculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties and theoccupancy rate of the leased portion of the property.
Calculated based on costs at similar properties and theaverage annual maintenance and renewal fees given in
the engineering report.
Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

Deposits, etc.
(5)term stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

6,036,000

22,525,000

Insurance Premium

Calculated based on the expected medium- to long-

60,629,000

13,480,000

Repair Costs

Advertisement

255,298,000

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as an investment,
general forecasts of the economic growth rate andprice trends in real estate and rents.

4,740,000,000

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 29 -

Ratio of Land

76.1%

Ratio of Building
23.9%
Located in the Higashi-Shinbashi district, the Property is approximately a 6-minute walkfrom “Onarimon” Station on the Toei Mita Line and is in very close proximity to the nearest
station. In addition, since multiple lines, including JR, are available, the Property has a good
Matters Noted inaccess to each office area in central Tokyo. Further, in the surrounding area, roadside
Reconciliation ofdevelopment along the “Shintora Street” has shown a good progress, and further
Indicated Value anddevelopment as an office area is expected.
Determination of
The Building is newly-built and designed as a high-value-added office building, offering
Appraisal Valuesuperior quality and high-standard facilities compared to the office buildings of similar size.
In view of the above factors, the appraisal value was determined.

Property NamePMO Hamamatsucho

Appraisal Value¥4,830,000,000

Appraiser

Japan Real Estate Institute

Appraisal Date

November 1, 2019
(Yen)

Amount orPercentage

Item
Capitalization Approach Price

4,830,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to

Insurance Premium
Other Expenses

11,657,000

1,222,000

Fees

Taxes

225,343,000

10,880,000

Management

Leasing Costs, etc.

213,686,000

15,696,000

Repair Costs

Advertisement

4,910,000,000

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable net
revenue over the medium to long term by thecapitalization rate.
Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

50,608,000

Utilities Costs

Property

GroundsforCalculated based on scheduled maintenance andmanagement costs and the costs at similar buildings.
Calculated based on costs at similar properties and theoccupancy rate of the leased portion of the property.
Calculated based on costs at similar properties and theaverage annual maintenance and renewal fees given in
the engineering report.

5,342,000

Calculated based on agreed-upon fee rates, withreference to rates for similar properties.

1,705,000

Calculated as an annualized amount based on assumed
tenant turnover rates.

15,634,000
129,0000

Calculated based on taxes paid for FY2019(depreciable asset tax is an assumed amount).
Calculated based on insurance quotes and thepremiums of similar properties.
No particular expenses to be recorded as otherexpenses.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 30 -

(3) Net Operating Income from
Leasing Business (NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.

(5) Capital Expenditure Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

163,078,000
2,037,000

3,000,000

1.0%.
Calculated based on the assumption of average
allocations each period, with reference to capital
expenditure levels at similar properties, the building’s
age and the average annual maintenance and renewal
fees given in the engineering report.

162,115,000
3.3%
4,750,000,000
3.1%

Terminal Capitalization Rate
3.5%

Cost Approach Price
Ratio of Land

Estimated profit based on an investment yield of

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property’s specific characteristics.
Calculated based on a comprehensive considerationof such factors as the yield on investment of similarbuildings, the probable future movement of the yield
on investment, risks of the property as an investment,
general forecasts of the economic growth rate andprice trends in real estate and rents.

4,520,000,000
79.1%

Ratio of Building
20.9%
The Property is adjacent to “Hamamatsucho” Station on the JR Yamanote and KeihinTohoku Lines and is within a 5-minute walk from “Daimon” Station on the Toei Asakusa andMatters Noted in
Oedo Lines, and since it is accessible from three stations and five lines, it is an excellent
Reconciliation oflocation offering convenient transportation to various places in central Tokyo as well as
Indicated Value and
Haneda Airport.
Determination of
The Building is newly-built and designed as a high-value-added office building, offering
Appraisal Valuesuperior quality and high-standard facilities compared to the office buildings of similar size.
In view of the above factors, the appraisal value was determined.

Property NameGEMS SangenjayaAppraisal Value¥1,840,000,000

Appraiser

JLL Morii Valuation & Advisory K.K.

Appraisal Date

November 1, 2019
(Yen)

Item
Capitalization Approach Price

Amount orPercentage

Grounds

1,840,000,000

Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 31 -

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

to1,880,000,000
120,691,000
123,736,000
3,045,000

9,468,000
23,004,000

Repair Costs
340,000
Property ManagementFees

2,895,000

forLeasing Costs, etc.

1,369,000

Taxes
5,076,000
Insurance Premium

69,000

Other Expenses

5,343,000(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))

73,127,000(4) Profit through Managementof Temporary Deposits, etc.

(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))

Calculated based on the expected medium- to longterm stable rent.
Calculated based on the expected medium- to longterm stable occupancy rate.

47,564,000

Utilities Costs

Advertisement

Calculated by reducing the expected level of stable net
revenue over the medium to long term by thecapitalization rate

804,000

793,000

Calculated based on the scheduled agreement andmedium- to long-term maintenance fee with reference
to that of similar properties.
Calculated with reference to the actual costs of similar
properties.
The estimates of the Engineering Report were judged
to be reasonable based in part on the levels of similar
properties, and 30% of the standard value for suchproperties was also recorded.
Calculated the fee rate based on the scheduled
agreement, with reference to rates for similar
properties.
Calculated the eviction rate in consideration of thevacancy rate and calculated and recorded theadvertisement for leasing etc., arising at the change ofthe rent room based on the scheduled agreement andlocal practices.
Calculated taking into account movement in land
prices for the land and appraised tax amount and age
depreciation for the building and depreciable assets
with reference to actual amount equivalent
Calculated based on the estimates provided which is
judged to be reasonable with reference to the levels ofsimilar properties.
Residents’ association membership fee and outdoor
advertising fee based on past results are recorded.

Profit through management of temporary deposit iscalculated by multiplying the assumed interest ratewith comprehensive consideration given to interest
rates, etc., of long-term government bonds, etc., by
the security deposits, etc., after deducting the amountequivalent to security deposits, etc. of vacant rooms
from the amount of security deposits, etc. upon fulloccupancy.
The estimates of the Engineering Report were judged
to be reasonable based in part on the levels of similar
properties, and 70% of the standard value for suchproperties was recorded.

73,138,000

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 32 -

(7) Capitalization Rate

Price Calculated by the Discounted
Cash Flow Approach

3.9%

1,800,000,000

Discount Rate

3.7%

Terminal Capitalization Rate
4.1%
Cost Approach Price
Ratio of Land

Calculated based in part on the past capitalization rateof the property and of J-REITs judged to beadequately representative, with reference to revenues
based on the discount rate and the risk of capitalfluctuations.

Calculated based on a comprehensive considerationof such factors as investor surveys, REIT
performance and real estate market conditions, withyields on boutiques in Ginza area of Tokyo as the baseyield, taking into account interest rates on long-termsovereign bonds. Consideration was given to risks
related to the area and specific property in light ofsuch factors as the conditions of the Property’s
location, building, contract and rights-related issues
Calculated based on the capitalization rate, withconsideration given to uncertainty regarding initial
predictions of changes in net cash flow, futurebuilding deterioration and sale-related risk.

1,550,000,000
76.8%

Ratio of Building
23.2%
The Property is located in Sangen-jaya, where a shopping district was formed long ago andwhich is well known as a commercial area. Sangen-jaya has a large number of residents,and offers prospects for attracting, in addition to office workers in the vicinity of the area,
Matters
Noted
in a wide range of customers, from families with small children to students and elderly people
who have lived in the area for a long time. The Property is able to meet a variety ofReconciliationofrestaurant needs due to having succeeded in attracting not only high-profile restaurants but
Indicated Value and also restaurants, such as Fujiya Honten Grill Bar, a famous restaurant that operated in close
Determinationof connection with the local community and had long lines before closing down due to aging.
In addition, because the Property is a newly built building located in the vicinity of many
Appraisal Value
store buildings that have been operating for many years, it is recognized as a superior
property.
Based on the above, it was judged that the Property has standard competitiveness in the
primary market area.
Property Name

Landport Higashi-Narashino

Appraisal Value¥15,700,000,000

Appraiser

Japan Valuers Co., ltd.

Appraisal Date

November 1, 2019
(Yen)

Item
Capitalization Approach Price
Price Calculated by the Direct
Capitalization Approach

Amount orPercentage
15,700,000,000
15,800,000,000

Grounds
Calculated taking into account income-based values
determined using both the direct capitalization
approach and the discounted cash flow approach.
Calculated by reducing the expected level of stable net
revenue over the medium to long term by thecapitalization rate.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 33 -

(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to
Vacancies, etc.
(2) Operating Expenses
Maintenance Costs

Undisclosed
Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management
Fees
Advertisementfor

Leasing Costs, etc.

Undisclosed
Undisclosed
Undisclosed(Note)
Undisclosed
Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Management

Undisclosedof Temporary Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate
Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

678,667,114
Undisclosed(Note)
Undisclosed
680,082,058

4.30%

15,600,000,000
4.10%

Terminal Capitalization Rate
4.50%

Cost Approach Price

Calculated by considering the yield of surrounding
property transactions, with reference to thecharacteristics of the area surrounding the property
and the property’s particular characteristics.

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the property’s specific characteristics.
Calculated based on a comprehensive consideration ofsuch factors as the yield on investment in similarbuildings, the probable future movement of the yield
on investment, risks of the property as an investment,
general forecasts of the economic growth rate andprice trends in real estate and rents.

15,400,000,000

Ratio of Land

51.1%

Ratio of Building

48.9%

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 34 -

Matters

Noted

in

ReconciliationofIndicated

and

Value

DeterminationofAppraisal Value

The neighborhood area is an industrial area with large-scale factories for metals, machineryand other products, as well as large-scale logistics facilities. Its local characteristics of
having excellent connection and accessibility to the central Tokyo and the Saitama andChiba areas constitute factors that greatly contribute to demonstrating the utility of using
land as an industrial park.
Under such locational conditions, the Building is a newly constructed logistics facility withhigh versatility and functionality. This facility is capable of meeting the locational needs oflogistics bases in a variety of industries, and can be judged as being capable of stable
operation over the medium to long term. In consideration of the above, the appraisal value
was determined with an emphasis on the value indicated by income capitalization, whichappropriately reflects the profit value of investment.

(Note) These items contain information for which the Fund owes a duty of confidentiality to the lessees or information that could
be used to calculate such information. The disclosure of these items could result in a breach of said duty of confidentiality,
which could negatively impact the Fund and thus the interests of its unitholders. Accordingly, these items are undisclosed.

Property NamePROUD FLAT Shibuya Tomigaya

Appraisal Vale

¥4,440,000,000

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

November 1, 2019
(Yen)

Amount orPercentage

Item

Capitalization Approach Price

4,440,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenanceto

Utilities Costs

Fees

Taxes

for

An income-based value was calculated using thecapitalization approach by using the value calculatedusing the discounted cash flow approach as thebaseline and evaluating it using the income-based
approach.
Calculated by reducing a standard level of net cash
flow by the capitalization rate.

13,506,291

Calculated based in part on market rent levels.
Calculated based on the standard medium- to longterm vacancy rate.

49,389,414
5,948,467

Calculated based on PM/BM service term sheet

4,203,978

Property Management

Leasing, etc.

229,958,614
243,464,905

2,478,528

Repair Costs

Advertisement

4,460,000,000

Grounds

Calculated based on the balance results, etc.
Including restoration costs and building improvement
fees calculated with consideration given to building
age and similar cases, etc., by referencing the ER.

6,634,846

Calculated based on the property management service
agreement and PM/BM service term sheet.

6,589,047

Calculated based on PM/BM service term sheet.

16,437,000

Calculated based on materials for FY2019
Calculated based on relevant insurance premium ratetablesCalculated based in part on past levels of income andcosts

Insurance Premium

198,790

Other Expenses

6,898,758

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 35 -

(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate

Price Calculated by the Discounted
Cash Flow Approach

180,569,200
169,757

Assumed investment yield of 1.0%.

2,160,000

Calculated with reference to the Engineering Report,
the building’s age, amounts recorded at similar
properties and other factors.

178,578,957

4.0%

4,430,000,000

Discount Rate

4.1%

Terminal Capitalization Rate

4.2%

Cost Approach Price
4,220,000,000
Ratio of Land

Calculated based mainly on the yield of similar
property transactions, with reference to thecharacteristics of the area surrounding the property,
the property’s particular characteristics and otherfactors.

Calculated with reference to the individual risks forthe property and other factors
Calculated based on the capitalization rate, withconsideration given to levels of future uncertainty.
Calculated using the cost approach by marking down
the Property’s replacement cost at the appraisal date,with consideration given to the marketability of theland and building together.

79.6%

Ratio of Building

Matters

Noted

inReconciliationofIndicated

and

Value

Determination
Appraisal Value

of

20.4%
The Property consists of a high-rise condominium and its site and is approximately a 12minute walk from “Yoyogi-Hachiman” Station on the Odakyu Line and “Yoyogi-Koen”
Station on the Tokyo Metro Chiyoda Line and approximately a 13-minute walk from
“Komaba-todaimae” Station on the Keio Inokashira Line.
The surrounding area of the Property is a residential area where mid-and high-rise
condominiums are located. In the vicinity of the Property, there are many educational
facilities, such as the University of Tokyo, and there are also park facilities, such as Yoyogi
Park, by which an excellent living environment is secured. In addition to supermarkets andother convenient facilities in the vicinity of the nearest station, convenience stores are also
located near the Property, by which excellent convenience is secured. The Building is newlybuilt and is of a grade required for rental condominiums, satisfying the high standards
required for rental-condominium facilities. In addition, it has a variety of unit types, from
1K to 2LDK, and is designed to meet a wide range of needs. Accordingly, it was judged that
the Property has reasonable competitiveness in the primary market area.
In view of the above factors, the appraisal value was determined.

Property NamePROUD FLAT Miyazakidai

Appraisal Vale

¥1,490,000,000

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

November 1, 2019

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 36 -

(Yen)

Amount orPercentage

Item

Capitalization Approach Price

1,490,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due to
Vacancies, etc.
(2) Operating Expenses
Maintenance1,430,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed

Repair Costs

Undisclosed

Fees
Advertisementfor

Leasing, etc.

(Note)
Undisclosed
Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Other Expenses(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Management

Undisclosedof Temporary Deposits, etc.
(5)

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate

Price Calculated by the Discounted
Cash Flow Approach
Discount Rate

An income-based value was calculated using thecapitalization approach by using the value calculatedusing the discounted cash flow approach as thebaseline and evaluating it using the income-based
approach.
Calculated by reducing a standard level of net cash
flow by the capitalization rate.

Undisclosed
Undisclosed

Utilities Costs
Property Management

Grounds

65,912,484
Undisclosed(Note)
Undisclosed
64,539,658

4.5%

Calculated based mainly on the yield of similar
property transactions, with reference to thecharacteristics of the area surrounding the property,
the property’s particular characteristics and otherfactors.

1,510,000,000
1Y～8Y 4.5%
9Y～10Y 4.7%
11Y 4.6%

Calculated with reference to the individual risks forthe property and other factors

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 37 -

Terminal Capitalization Rate

4.7%

Cost Approach Price
1,490,000,000
Ratio of Land

Calculated based on the capitalization rate, withconsideration given to levels of future uncertainty.
Calculated using the cost approach by marking down
the Property’s replacement cost at the appraisal date,with consideration given to the marketability of theland and building together.

65.9%

Ratio of Building
Matters

Noted

inReconciliationofIndicated

and

Value

DeterminationofAppraisal Value

34.1%
The Property consists of a high-rise condominium and its site and is located in a residential
area that is a two-minute walk from “Miyazaki-dai” Station on the Tokyu Den-en-toshi Line.
In the vicinity of “Miyazaki-dai” Station, which is the nearest station, there are manysupermarkets, the convenience is excellent. The Building is relatively new and is of a grade
required for rental condominiums, satisfying the high standards required for rentalcondominium facilities.
In view of the above factors, the appraisal value was determined.

(Note) These items contain information for which the Fund owes a duty of confidentiality to the lessees or information that could
be used to calculate such information. The disclosure of these items could result in a breach of said duty of confidentiality,
which could negatively impact the Fund and thus the interests of its unitholders. Accordingly, these items are undisclosed.

Property NamePROUD FLAT Asakusabashi III

Appraisal Vale

¥1,260,000,000

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

November 1, 2019
(Yen)

Amount orPercentage

Item

Capitalization Approach Price

1,260,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenanceto

Utilities Costs
Repair Costs
Property Management
Fees

1,270,000,000
69,745,203
73,502,312

Grounds
An income-based value was calculated using thecapitalization approach by using the value calculatedusing the discounted cash flow approach as thebaseline and evaluating it using the income-based
approach.
Calculated by reducing a standard level of net cash
flow by the capitalization rate.

3,757,109

Calculated based in part on market rent levels.
Calculated based on the standard medium- to longterm vacancy rate.

15,501,757
3,401,590

Calculated based on PM/BM service term sheet.

1,183,162
1,262,048
2,010,692

Calculated based on the balance results, etc.
Including restoration costs and building improvement
fees calculated with consideration given to building
age and similar cases, etc., by referencing the ER.
Calculated based on PM/BM service term sheet.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 38 -

Advertisementfor

Leasing, etc.
Taxes

Calculated based on PM/BM service term sheet.

4,150,100

Calculated based on materials for FY2019
Calculated based on relevant insurance premium ratetablesCalculated based in part on past levels of income andcosts

Insurance Premium

60,380

Other Expenses

1,394,904(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)2,038,881

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))(7) Capitalization Rate

Price Calculated by the Discounted
Cash Flow Approach

54,243,446
52,046

Assumed investment yield of 1.0%.

990,000

Calculated with reference to the Engineering Report,
the building’s age, amounts recorded at similar
properties and other factors.

53,305,492

4.2%

1,250,000,000

Discount Rate

4.3%

Terminal Capitalization Rate

4.4%

Cost Approach Price
1,400,000,000
Ratio of Land

Calculated based mainly on the yield of similar
property transactions, with reference to thecharacteristics of the area surrounding the property,
the property’s particular characteristics and otherfactors.

Calculated with reference to the individual risks forthe property and other factors
Calculated based on the capitalization rate, withconsideration given to levels of future uncertainty.
Calculated using the cost approach by marking down
the Property’s replacement cost at the appraisal date,with consideration given to the marketability of theland and building together.

73.5%

Ratio of Building

Matters

Noted

inReconciliationofIndicated

and

Value

Determination
Appraisal Value

of

26.5%
The Property consists of a high-rise condominium and its site and is approximately a twominute walk from “Asakusa-bashi” Station on the JR Sobu Line, etc. The condominium isrelatively new and has the grade required for rental condominiums, satisfying the highstandards required for rental-condominium facilities. In addition, it offers superior
convenience because the transportation access to major areas in Tokyo is excellent, as it isapproximately 10 minutes from “Asakusa-bashi” Station, the nearest station, to “Tokyo”
Station on the JR Sobu Line, and approximately 5 minutes from “Asakusa-bashi” Station to“Nihonbashi” Station on the Toei Asakusa Line and many restaurants, such as cafes andizakaya restaurants, are located in the vicinity of the station. Therefore, it can be judged that
the Property has reasonable competitiveness, mainly among single persons and DINK
households that are oriented toward proximity to the city center and convenience.
In view of the above factors, the appraisal value was determined.

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 39 -

Property NamePROUD FLAT Togoshi-Koen

Appraisal Vale

¥2,630,000,000

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

November 1, 2019
(Yen)

Amount orPercentage

Item

Capitalization Approach Price

2,630,000,000

Price Calculated by the Direct
Capitalization Approach(1) Operating Income (a)-(b)(a) Gross Rental Income(b) Losses due
Vacancies, etc.
(2) Operating Expenses
Maintenanceto

Utilities Costs

2,640,000,000
143,366,606
151,461,635
8,095,029
31,253,726
5,563,058

Calculated based on PM/BM service term sheet.

2,560,370

Property Management

An income-based value was calculated using thecapitalization approach by using the value calculatedusing the discounted cash flow approach as thebaseline and evaluating it using the income-based
approach.
Calculated by reducing a standard level of net cash
flow by the capitalization rate.
Calculated based in part on market rent levels.
Calculated based on the standard medium- to longterm vacancy rate.

1,545,294

Repair Costs

Calculated based on the balance results, etc.
Including restoration costs and building improvement
fees calculated with consideration given to building
age and similar cases, etc., by referencing the ER.

4,037,098

Calculated based on PM/BM service term sheet.

4,146,458

Calculated based on PM/BM service term sheet.

Taxes

8,976,100

Insurance Premium

124,350

Other Expenses

4,300,998

Calculated based on materials for FY2019
Calculated based on relevant insurance premium ratetablesCalculated based in part on past levels of income and
costs

Fees
Advertisementfor

Leasing, etc.

(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)

Grounds

CapitalExpenditure

Reserve(6) Net Cash Flow (NCF =(3)+(4)-(5))

112,112,880
127,372

Assumed investment yield of 1.0%.

1,360,000

Calculated with reference to the Engineering Report,
the building’s age, amounts recorded at similar
properties and other factors.

110,880,252

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 40 -

(7) Capitalization Rate

Price Calculated by the Discounted
Cash Flow Approach

4.2%

2,620,000,000

Discount Rate

4.3%

Terminal Capitalization Rate

4.4%

Cost Approach Price

Calculated based mainly on the yield of similar
property transactions, with reference to thecharacteristics of the area surrounding the property,
the property’s particular characteristics and otherfactors.

Calculated with reference to the individual risks forthe property and other factors
Calculated based on the capitalization rate, withconsideration given to levels of future uncertainty.

2,550,000,000

Ratio of Land

78.7%

Ratio of Building
Matters

Noted

inReconciliationofIndicated

and

Value

Determination
Appraisal Value

of

21.3%
The Property consists of a mid-rise condominium and its site and is approximately 2-minute
walk from “Togoshi-koen” Station on the Tokyu Oimachi Line. The condominium isrelatively new and is of a grade required for rental condominiums, satisfying the highstandards required for rental-condominium facilities. In addition, the Property is adjacent tothe areas such as of Shinagawa, Osaki, Gotanda, etc. where the business functions areconcentrated, and is in close proximity to the city center. Therefore, it can be judged that theProperty has reasonable competitiveness, mainly among single persons and DINK
households that are oriented toward proximity to the city center and convenience.
In view of the above factors, the appraisal value was determined.

Exhibits
Exhibit 1 Overview of the Portfolio after the Acquisitions
Exhibit 2 Photos and Maps of the Assets to be Acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/

Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press releasehas been prepared for the purpose of announcing to the public certain matters relating to the property acqui sition, and not
for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of
securities for sale in the United States. The securities referred to herein have not been, and will not be registe red under theUnited States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of secu rities
in the United States will be made in connection with the above-mentioned transactions.

- 41 -

Exhibit 1
Overview of the Portfolio after the Acquisitions(¥ million)
Area

Greater Tokyo
Area (Note 1)

Sector(Anticipated) Total
Other Areas

Acquisition Price(by Sector)

Investment Ratio(%) (Note 2)

Office401,655

71,930473,585

45.0

Retail111,626

66,716

178,342

17.0

Logistics

183,1023,460

186,562

17.7

Residential

168,720

33,328202,047

19.2

Hotels

―

6,250

6,250

0.6

Others

4,900

―

4,900

0.5

(Anticipated)
Total Acquisition Price(by Area)

870,003

181,684

1,051,686

100.0

82.7

17.3

100.0

Investment Ratio (%)(Note 2)

(Note 1) “Greater Tokyo Area” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other
Areas” refers to cabinet-order designated cities, prefectural capitals, and cities having a population of at least 100,000 andtheir peripheral areas, excluding those in Greater Tokyo Area.
(Note 2) “Investment Ratio” indicates the ratio of the (anticipated) total acquisition price of properties for each use or in each area
to the (anticipated) total acquisition price of the entire portfolio. As the figures are rounded to the first decimal place, they
may not add up to exactly 100%.

Exhibit 2
Photos and Access Map of the Assets to be Acquired
PMO Akihabara Kita

PMO Higashi-Shinbashi

PMO Hamamatsucho

GEMS SangenjayaLandport Higashi-Narashino

PROUD FLAT Shibuya Tomigaya

PROUD FLAT Miyazakidai

PROUD FLAT Asakusabashi III

PROUD FLAT Togoshi-Koen

Photos and Maps of the Assets to be Acquired