[For Translation Purposes Only]

December 12, 2023

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.
Koki Miura, President & Chief Executive Officer
Inquiries: Hiroyuki Masuko
Executive Officer
Head of NMF Investment Management GroupTEL +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Acquisition of Property in Japan
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 Fund to provide asset
management services, to acquire properties (the “Acquisition”), as described below.

1.

Summary of Assets to Be Acquired

Property Name
MIMARU SUITESTokyo Asakusa

UseHotels

Scheduled Dateof Purchase andSales Agreement
December 14,
2023

Scheduled
Date ofAcquisition

SellerApril 3,2024(Note 2)

COSMOSINITIACo.,Ltd.

Presence ofIntermediary

AnticipatedAcquisitionPrice(¥ million) (Note 1)

No2,360(Note1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note2) The scheduled date of acquisition may be changed to another date (which shall be limited from March 18, 2024 to March 26, 2024) that is separately
agreed upon by the Seller and the Purchaser.

The above property to be acquired is referred to hereinafter as the “Assets to be Acquired.”2.

Reasons for the Acquisitions
The Fund determined that the Transaction 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 and policies specified in the Fund’s Articles ofIncorporation.
The business condition of the Asset to be Acquired is on an upward trend as demand for accommodation in
Japan is recovering due to lifting of the border measures including entry restrictions for foreign nationals in April
2023. In July 2023, the total number of overnight guests, including international visitors, marked an increase of+1.5% against pre-COVID figures in 2019, for the first time. (Note 1) Moreover, against a backdrop of resuming
Chinese group tours in August 2023, the total number of overnight stays for international visitors for September
2023 was up 18.9% compared with the figures from 2019, (Note 2) and further tailwind is expected in the future.
Because the hotel to be acquired is located in the center of Asakusa, a popular sight -seeing area among foreign
visitors, the Fund judged that the property has future growth potential and determined to invest.
Please refer to 3. Summary of Assets to Be Acquired of below for details of the reasons for acquisition of Assets to beAcquired.

(Note1) Source: Overnight Travel Statistics Survey announced on September 29, 2023, Japan Tourism Agency(Note2) Source: Overnight Travel Statistics Survey announced on November 30, 2023, Japan Tourism Agency－ １ －3.

Summary of Assets to Be Acquired
MIMARU SUITES Tokyo Asakusa＜Reasons for the Acquisition＞
The main strengths of the Asset to be Acquired are as follows.
・The Asset is conveniently located for transportation. The location is one -minute walk from Asakusa Station
on Tobu Isesaki Line, with easy-access from multiple stations as it is three-minute walk from Asakusa Station
on Tokyo Metro Ginza Line and five-minute walk from Asakusa Station on Toei Subway Asakusa Line. It is
within walking distance from popular sight-seeing spots among foreign visitors, such as Kaminari-mon Gate,Senso-ji, and TOKYO SKYTREE, which gives it a highly competitive location with a capa city to attract themain target of inbound demand.
・The Asset is an apartment hotel (a hotel for long-term stays whose guest rooms have in-room kitchens andare equipped with home appliances such as a refrigerator) mainly targeting inbound tourists. All g uest rooms
are spacious with approximately 60-74m2 , two bedrooms, and fully equipped with a capacity to accommodate
four to six guests. For this reason, the Asset differentiates itself from other properties and holds acompetitive advantage in demand for inbound tourist stay that assumes consecutive overnight stays. Inaddition, more than 90% of the guests staying at this property are inbound tourists, and approximately 90%of the guests staying at the property stay for three or more consecutive nights. (Ba sed on performance fromDecember 2022 to December 2023 (including reservation status).)・Tokyo Prefecture boasts high popularity among both domestic and overseas tourists as a world -classsightseeing destination. Tokyo Prefecture ranked top in the number of overnight stays in Japan withapproximately 78.98 million overnight stays in 2019 and had the third highest percentage of inbound visitors
in Japan at 37%. In September 2023, the number of overnight stays for international visitors was 3.86
million, which exceeds 2.31 million for the same month in 2019. Further increase is expected in the future as
the demand from the Chinese tourists has not completely recovered at the moment.
・The hotel operator, Cosmos Initia Co., Ltd., operates apartment hotels branded “MIMARU” and “MIMARU
SUITES.” It operates 28 hotels and boasts 1,470 guest rooms as of the end of second quarter of fiscal year ending
March 2024, according to the financial reporting materials. Stable operation can be expected from the operatingknow-how leveraging the extensive track record.

＜Summary of the Assets 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
Area (Note 1)
LandMIMARU SUITES Tokyo Asakusa
Real estate
1-5-2 (and nine other parcel of land) Hanakawado, Taito Ward, Tokyo
1-10-13 Hanakawado, Taito Ward, Tokyo
1-minute walk from Asakusa Station on Tobu Isesaki LineFebruary 7, 2022
Hotel
Thirteen-floor steel reinforced concrete structure with flat roof
Daiwa House Industry Co., Ltd. Medium and High-rise Buildings Class-1
Architects & Associates
DAIWA HOUSE INDUSTRY CO., LTD.
General Incorporated Foundation Center for Better Living
483.65 m2－ ２ －BuildingLand
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
CollateralProperty Management Company(Note 4)

2,993.94 m2
Land lease right (Note 2)
Ownership
100%(Note 3)
600%None
THE DAI-ICHI BUILDING CO., LTD.

Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)

7.7% (Based on the Earthquake PML Appraisal Report as of December 2023
(Note 5)by Sompo Risk Management Inc.)
Notes
Not applicable.
Anticipated Acquisition Price¥2,360 million¥3,120 million (Based on the capitalization approach as of November 1,
Appraisal Value and Method2023) (Appraiser: Chuo Real Estate Appraisal Co., Ltd.)
Appraisal NOI (Note 6)¥167 million
Leasing Status (as of Scheduled Date of Acquisition) (Note 7)
Total Number of Tenants
1
Name of Tenant
COSMOS INITIA Co.,Ltd.
Hotel Operator
COSMOS HOTEL MANAGEMENT Co., Ltd.
Undisclosed (fixed-rent-plus-variable-rent type contract）
Of which, fixed rent
Undisclosed
Total Rental Income
In addition to the fixed rent, the variable rent
(Annual)Of which,
is added by applying the following formula.
variable rent
(GOP – fixed amount) × predetermined rate
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
3,059.35 m2
Total Leasable Floor Space
3,059.35 m2
October
October
October
October
October
2019
2020
2021
2022
2023
Historical Occupancy Rates (Note 8)
100.0%(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) Land leasehold contract
Lessor: Undisclosed as consent has not been obtained from the lessor and The Lessor is not considered a related party under the Act
on Investment Trusts and Investment Corporations
Type of leasehold: business periodic subleasehold interest in land
Leasehold period: From June 30, 2020 to May 30, 2070
(Note 3) Building Coverage Ratio
The Asset is located in a commercial zone where the building coverage ratio is 80% in principle. However, because the Asset is a certified
fireproof building in a quasi-fire prevention zone, the applied coverage ratio is 100%.
(Note 4) Property Management Company
Property Management Company refers to the one that is scheduled to be appointed after acquisition.
(Note 5) PML (Probable Maximum Loss)PML shows the probable maximum amount of loss that can be expected to incur once every 475 years or once every 50 years with 10%
probability during the anticipated period of use (i.e., 50 years as the expected lifetime of a standard building) as a ratio (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,
2023 as the appraisal date.
(Note 7) Leasing Status“Total Number of Tenants” is based on a fixed-term lease contract that is expected to go into effect on the date of acquisition.
“Name of Tenant” is based on a fixed-term lease contract that is expected to go into effect on the date of acquisition.
“Total Rental Income” and “Security Deposits” are both undisclosed as the consent from the tenant has not been obtained.
“Total Leased Floor Space” indicates the total floor space presented based on a fixed-term lease contract that is expected to go into effect－ ３ －on the date of acquisition.
(Note 8) Historical Occupancy Rates
The historical occupancy rates are based on the information from the seller.

4.

Profile of Seller of the Asset to be Acquired

Company Name
Head Office
Representative

Cosmos Initia Co., Ltd.
5-34-6 Shiba, Minato Ward, Tokyo（As stated in the registry）
President Ryotaro Takachi
Transactions, lease, brokerage, appraisal, management and consulting service of realestateDevelopment and creation of land
Planning, design, construction, supervision, contracting and consulting for architectural
Principal Businessor civil engineering works
Monetary loans related to real estateManagement of hotels, restaurants, and sports facilities
Ownership, sale, purchase and brokerage of trust beneficiary rights
Capital¥5.0 billion (as of March 31, 2023)
Established
June 20, 1969
Net Assets¥41.5 billion (as of March 31, 2023)
Total Assets¥157.3 billion (as of March 31, 2023)
Major Shareholder
Daiwa House Industry Co., Ltd. (63.2%)(as of March 31, 2023)(Shareholding Ratio)
Relationships with the Fund and/or the Asset Management Company and the Seller
Neither the Fund nor the Asset Management Company has any notable capital
relationship with the said company. In addition, any persons or companies associatedCapitalwith the Fund or the Asset Management Company have no notable capital relationshipwith those associated with the relevant company.
Neither the Fund nor the Asset Management Company has any notable personalrelationship with the said company. In addition, any persons or companies associated withPersonal
the Fund or the Asset Management Company have no notable personal relationship withthose associated with the relevant company.
Neither the Fund nor the Asset Management Company has any notable transactions withthe said company. In addition, any persons or companies associated with the Fund or theTransactions
Asset Management Company have no notable transactions with those associated with therelevant company.
The said company does not fall under a related party of either the Fund or the Asset
Related Party Management Company. In addition, the persons or companies associated with the said
Statuscompany do not fall under related parties of either the Fund or the Asset Management
Company.

5.

Status of Owner of the Asset to be Acquired
The Assets to be Acquired is not acquired from parties who have special interests in the Fund or the Asset Management
Company.

6.

Transactions with Related Parties
There is no transaction with related parties.

7.

Form of Payment, etc.
(1) Form of Payment
Regarding the acquisitions, The Fund will complete settlement by a lump-sum payment on the date of acquisition by－ ４ －paying the agreed price for the property in full to the seller using cash on hand.
(2) Impact on the Financial Position of the Fund in Case of a Failure to Fulfill Our Forward Commitment
The sale agreement associated with the Acquisition (the “Sale Agreement”) is considered to be a forward commitment(Note) as stipulated in the Financial Services Agency’s “Comprehensive Guidelines for Supervision of Financial Instruments

Business Operators, etc.” The Sale Agreement includes the provisions below.
(Note) Defined as purchase and sale agreements or similar contract 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.

① Under the Sale Agreement, procuring funds equivalent to the purchase price by the acquisition date is set forth
as one of the conditions precedent for the obligation of the buyer.
② Where there is material breach of terms of the Sale Agreement by the seller or buyer (hereinafter such seller orbuyer shall be referred to as the “violating party”), the other party may cancel the Sale Agreement if such breachis not remedied after the passage of a prescribed period following the date of the non-violating party’s issuanceof a notification requiring the violating party to perform its obligation or if such breach is deemed impossible
to remedy. In such a case, the non-violating party may require the violating party to pay a penalty charge that isequivalent to 20% of the acquisition price. The penalty charge is the liquidated damages amount, and neither
party may request an increase or decrease in the penalty charge irrespective of whether the monetary damage
actually suffered by the canceling party exceeds or falls below an amount that is equivalent to 20% of theacquisition price.

8.

9.

Schedule for the Acquisitions
December 14, 2023

Conclusion of a purchase agreement for the acquisition of the Assets

April 3, 2024

Acquisition of the Assets to be Acquired

Outlook
There is currently no revision to the forecast for the fiscal period ending February 29, 2024 (September 1, 2023 toFebruary 29, 2024) and the fiscal period ending August 31, 2024 (March 1, 2024 to August 31, 2024) because the impact ofthe Acquisitions on operation of the entire portfolio is minimal.

－ ５ －10. Appraisal Summary
Property Name
Appraisal Value
Appraiser
Appraisal Date

MIMARU SUITES Tokyo Asakusa¥3,120,000,000
Chuo Real Estate Appraisal Co., Ltd.
November 1, 2023
(Yen)

Amount orPercentage

Item
Capitalization Approach PriceGrounds

3,120,000,000

Price Calculated by the Direct Capitalization
Approach(1) Operating Income
Total Potential Income, sum of (a) to(d)(a) Rental Income including CommonService Expenses(b) Utilities Costs Income

3,210,000,000
Undisclosed
Undisclosed
Undisclosed
Undisclosed(c) Parking Lot Income

Undisclosed(d) Other Income

Undisclosed

Losses due to Vacancies, etc.

Undisclosed

Bad Debt Loss

Undisclosed(2) Operating Expenses

Undisclosed

Maintenance Costs

Undisclosed

Utilities Costs

Undisclosed

Repair Costs

Undisclosed

Property Management Fees

Undisclosed

Advertisement for Leasing

Undisclosed

Taxes

Undisclosed

Insurance Premium

Undisclosed

Other Expenses

Undisclosed(3) Net Operating Income from Leasing
Business ((1) - (2))(4) Profit through Management ofTemporary Deposits, etc.
(5) Capital Expenditure Reserve(6) Net Cash Flow((3) + (4) - (5))(7) Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach

Undisclosed(Undisclosed)

Undisclosed
166,386,000
3,080,000,000
4.2%

Terminal Capitalization Rate

4.6%

Calculated with consideration of the property’s specificcharacteristics and evaluation scenarios, etc. with reference
to yields on investments in similar properties, etc.
Calculated with consideration of the property’s specificcharacteristics, evaluation scenarios, real estate prices, renttrend forecasts, etc. with reference to yields on investments
in similar properties, etc.

1,580,000,000

Ratio of Land

50.4%

Ratio of Building

49.6%

Matters Noted in Reconciliation ofIndicated Value and Determination of
Appraisal Value(Undisclosed)

167,476,000

Discount Rate

Cost Approach Price

Calculated with an emphasis on the value indicated by theincome approach using discounted cash flow method, andassociating it with the value indicated by the income
approach using direct capitalization method
Calculated by deducting the present value of building
demolition and removal costs, etc. from the stable mediumto long-term net cash flow multiplied by ordinary levelannuity factor

The Property is an apartment hotel in Taito Ward. The Property has the characteristics of an investment
property, and the main sellers and buyers in the market are real estate investment funds, etc. who assumecontinued use of current use (lease operation). These buyers are considered to execute transactions
with a focus on profitability. Thus, appraisal value was determined by value indicated by the income
approach while keeping the value indicated by the cost approach as a reference.

－ ６ －(Note) The information that is subject to a confidentiality obligation to the lessee and information that can be used to calculate the said information
is included. Therefore, that information is not disclosed because disclosure of such information may cause a disadvantage to NMF due to abreach of confidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.

[Exhibit]
Exhibit 1

Overview of the Portfolio after the Acquisition

Exhibit 2

Photos of the Asset to be acquired

Exhibit 3

Map of the Asset to be acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ ７ －Exhibit 1
Overview of the Portfolio after the Acquisition（¥ million）
AreaSector

Greater Tokyo Area

Others(Note 1)

(Note 1)

(Anticipated) Total

Investment Ratio

Acquisition Price(%)(by Sector)(Note 2)

Office403,585

65,100468,685

42.4

Logistics

220,472

3,460

223,932

20.2

Residential(including healthcare
facilities)

190,892

27,934

218,826

19.8

Retail109,888

67,890177,779

16.1

Hotels

2,360

9,450

11,810

1.1

Others4,900―4,9000.4(Anticipated) Total
Acquisition Price(by Area)

932,098

173,834

1,105,933

100.0

15.7

100.0

Investment Ratio (%)(Note 2)

84.3

(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 and their 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 toexactly 100%.

Exhibit 2
Photos of the Asset to be Acquired

An example of a guest room floor plan (Source: MIMARU SUITES Tokyo Asakusa official website）

Exhibit 3
Map of the Asset to Be Acquired