[For Translation Purposes Only]

July 19, 2021

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:

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. (“NREAM” or the “Asset Management Company”), a licensed
asset management company retained by the Fund to provide asset management services, to acquire a property(the “Acquisition”), as described below.

1. Overview of the Acquisitions
Property Name

Use

Date of
Purchase andSale Agreement

Scheduled
Date ofAcquisition

SellerAnticipatedAcquisition
Price(¥ million)(Note 1)

Universal CityWalk Osaka(Land)(Additional stake acquisition)(Note 1)
(Note 2)
(Note 3)RetailFacilities

July 21, 2021

July 30, 2021

Osaka City2,139

The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption
tax.
There is no brokerage involved in the acquisition of the assets to be acquired.
NMF owns trust beneficiary interest with co-ownership interest and quasi-coownership interest of leasehold (ownership ratioof the land: 54.11%) of land (owned by Osaka City), and exclusive portions of the building in compartmentalized ownership,etc. of Universal CityWalk Osaka (may be referred to as the “Property”) as assets in trust. The asset to be acquired in theAcquisition is the co-ownership interest (ownership ratio: 54.11%) of the land subject to the abovementioned leasehold, andis a real estate property.

2. Reasons for the Acquisition
NMF owns trust beneficiary interest with co-ownership interest and quasi-coownership interest ofleasehold of land (owned by Osaka City), and exclusive portions of the building in compartmentalized
ownership, etc. of Universal CityWalk Osaka as assets in trust, and the trustee of the trust leases part of theland with leasehold interest from Osaka City. Under the land lease agreement for the land, it has been agreed
between the land leaseholder and Osaka City that the land leaseholder shall purchase the lan d at a priceequivalent to the market price as a vacant lot upon the expiration of the land lease agreement. Furthermore, theagreement stipulates that the trustee of the trust shares with other quasi co-owners of the leasehold the liability
for fulfilling the obligations under the leasehold agreement with them, and is liable for purchasing the leased
land in accordance with its equity interest. Because the land lease agreement is to expire on July 31, 2021, NMF
has decided on the Acquisition after consulting with Osaka City, the trustee and other quasi co-owners of theleasehold of the leased land, it will directly acquire the land in accordance with its equity interest (54.11%).
- 1 -Although property tax and city planning tax will increase in line with the Acquisition, it has been judgedthat securing stable profit over the medium to long term and achieving steady growth in assets undermanagement, as set forth in the investment targets and policies in its Articles of Incorporation, will be possible
due to the following reasons: (1) Cash flow will increase because there will be no payment of land rent; (2) withthe termination of the land leasehold, the liquidity of the Property will increase; and (3) the appraisal value will
increase to surpass the acquisition price.

3. Summary of the Assets to be Acquired
Property Name
Type of AssetRegistry
Location(Note 1)StreetAccessCompletion DateUse
Structure
Architect
Builder
Building Inspection Agency
Land
Area (Note 1)
Floor Area
Type ofLand
Ownership
Building(Note 2)

Universal CityWalk Osaka (Land)
Real estate6-427-2,428, Shimaya, Konohana Ward, Osaka City, OsakaBuilding Coverage Ratio
Floor Area Ratio
Collateral
Property Management
CompanyMaster Leasing Company
Type of Master Leasing
Seismic Risk (PML)

90% (Note 3)
600% (Note 4)None

6-2-61, Shimaya, Konohana Ward, Osaka City, Osaka
1 minute walk from Universal City Station on the JR Yumesaki Line8,788.67m2
Ownership (shared)--- 2 -

Notes

AnticipatedAcquisition PriceAppraisal Value and Method
Appraisal NOI
Leasing Status

Historical Occupancy Rates(Note 8)(Note 2)

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

¥2,139 million¥2,210 million (Based on the assemblage value as of July 1, 2021)(Appraiser: Japan Valuers Co., Ltd.)-(Note 5)

Total Number of Tenants
Name of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate
Total Leased Floor Space
Total Leasable Floor Space(Note 1)・When transferring the Land, Leasehold Rights, and Building to a third party, thefollowing will be required: (i) acquisition of approval from the other project
operator pursuant to the Project Operators Agreement on the Konohana Western
Coastal Area and New Station Area Development (October 1999) and assumptionof the Project Operators Agreement by the third party, (ii) discussions with andacquisition of approval from Osaka City pursuant to the Basic Agreement
Concerning the Konohana Western Coastal Area and New Station AreaDevelopment Project between the project operators and Osaka City (November1999) and assumption of the Basic Agreement by the third party, and (iii) (withrespect to the Building), submission of prior written notice to the manager
concerning transfer of the exclusive areas pursuant to the Rules attached to theManagement Agreement (June 2001) (a portion of the Building (the heat supplysub-plant room) is leased to a domestic business company (a sublease under theMaster Lease Agreement), and in cases where the lessor transfers the Building toa third party, acquisition of prior written approval from the domestic businesscompany that is the lessee and transfer of the lessor’s status under the Building
Lease Agreement to the third party are required).
In addition, when transferring the Trust Beneficiary Interest relating to theProperty to a third party, the following will be required: (iv) acquisition of priorwritten approval from Osaka City and assumption of the relevant conditions bythe third party and (v) acquisition of prior written approval from some of theother project operators and assumption of the relevant conditions by the thirdparty.
・Pursuant to the Sublicense Agreement with the sublicensor concerning the nameand other trademarks of the Property, there is a possibility that leasing is
prohibited or that discussions with and the consent of the sublicensor are requiredwith respect to leasing to tenants and installation, maintenance, and managementof facilities and fixtures.

-%- m2- m2
February2017-%

February2018-%

February
2019-%

February
2020-%

February
2021-%

Location and Other Items
Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry.
Type of Ownership
The property acquired by NMF is the 54.11% co-ownership interest of land (270,460/499,870). For the overview of
the rights regarding the Property, please see the attached “Exhibit 3 Overview of rights about Universal CityWalkOsaka.”
Building Coverage Ratio
The building coverage ratio of the Property is 80% in principle as it is located in a commercial district. However, anincreased building coverage ratio of 90% is applied as it stands on a corner lot.
Floor Area Ratio
The floor area ratio of the Property is designated to be a maximum of 400%. However, an increased ratio of 600% isapplied due to district planning.
Leasing Status- 3 -The asset planned to be acquired is a co-ownership interest in land subject to a leasehold right to the Property, which
is a part of the trust property of the Trust Beneficiary Interest relating to the Property held by the Fund. Therefore,
the prior leasing status is not disclosed.

4. Profile of Seller of the Assets to be AcquiredNameRelation between NMF, NREAM and Seller

Osaka City
Nothing in particular

5. Status of Owner of the Assets to be Acquired
There is no brokerage involved in the acquisition of the Property to Be Acquired

6. Transactions with Related Parties
There is no special relation between the said company and the Fund or the Asset management company forthis transaction.

7. Form of Payment, etc.
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 cash on hand.
As indicated above in 2. Reasons for the Acquisition, the asset planned to be acquired will be acquired as apart of the joint and several purchase duty shared with the other quasi co -owners at the time of expiration of
the lease agreement pursuant to the lease agreement with Osaka City, and the transaction will be an acquisitionof the entire asset with the other quasi co-owners in accordance with the ratios of the ownership stakes of thequasi co-owners. Therefore, in the case where another quasi co-owner is unable to perform the acquisition
according to its ownership stake for any reason, there is a possibility that the purchase agreement relating to theacquisition by the Fund will be terminated by the Seller.

8. Schedule for the Acquisition
July 21, 2021

Conclusion of purchase and sale agreements for the Asset to be Acquired

July 30, 2021

Acquisition (delivery of real estate)

9. Outlook
There is no revision to NMF’s forecast of financial results for the fiscal period ending August 31, 2021
(March 1, 2021 to August 31, 2021) and the fiscal period ending February 28, 2022(September 1, 2021 toFebruary 28, 2022) by the Acquisition as the impact on operations in a portfolio level is minimal.

10. Appraisal Summary
Property Name

Universal CityWalk Osaka (Land)

Appraisal Value
Appraiser
Appraisal Date

¥2,210,000,000
Japan Valuers Co., Ltd.
July 1, 2021
(Yen)

Item

Amount orPercentage

Grounds- 4 -① Normal Price of the Rental Building
and its Site after the Acquisition of theSubject Property

18,700,000,000

Calculated the normal price judging thecapitalization approach price to be appropriate.
Used capitalization rate of 4.3% (considering theincrease in liquidity as a result of the acquisitionof the subject property).

② Normal Price of the Building withLand Leasehold and its Site (RentalBuilding) Before the Acquisition ofthe Subject Property

16,300,000,000

Calculated the normal price judging thecapitalization approach price to be appropriate.
Used capitalization rate of 4.4%.

③ Normal Price of the Subject Property

2,010,000,000④ Increased Value

390,000,000⑤ Allocation Rate50%⑥ Appraisal Value of theProperty (Limited Price)

SubjectAs it is land with leasehold interest of which thefixed-term land lease agreement is to expire
shortly, calculated the normal price judging theprice of the vacant lot based on the comparisonof transaction cases to be appropriate.
① - ( ② ＋ ③ )Determined the allocation rate taking into accountthe degree of contribution of the owner of theleased land and land leaseholder to the community,
contents of the agreement, background to theconclusion of the agreement, etc.

2,210,000,000③+④× ⑤(Reference) Universal CityWalk Osaka (Entirety after the Acquisition)
Property Name

Universal CityWalk Osaka

Appraisal Value¥18,700,000,000

Appraiser

Japan Valuers Co., Ltd.

Appraisal Date

July 1, 2021
(Yen)

Amount orPercentage

ItemCapitalization Approach Price

18,700,000,000

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

Grounds

toManagementassociation cost

19,000,000,000
1,909,364,429
1,974,528,333
65,163,904
135,433,000

Calculated based on actual results in previous years
and general level of maintenance cost.

69,776,000

Calculated based on actual results in previous years
and general level of management association cost.

289,884,480

Repair Costs

16,495,527

Sublicense fee, etc.

205,423,284

Fees

Calculated considering current rent and market rentlevels.
Calculated considering current rent and market rent
levels.

1,043,274,782

Utilities Costs

Property Management

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.

75,371,066

Calculated based on actual results in previous years
and general level of utilities cost.
Calculated based on the engineering report of Tokio
Marine & Nichido Risk Consulting Co., Ltd.
Calculated based on actual results in previous years
and general level of sublicense fees, etc.
Calculated based on actual results in previous years
and general level of property management fees.

- 5 -Advertisementfor

Leasing Costs, etc.
Taxes

58,673,857

Insurance Premium

2,443,147

Other Expenses

180,000,000(3) Net Operating Incomefrom
Leasing
Business(NOI=(1)-(2))(4) Profit through Managementof Temporary Deposits, etc.
(5)9,774,421

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

Cash Flow ApproachCalculated based on the actual result of 2021 tax-year
and general level of taxes.
Calculated based on actual results in previous years
and general level of insurance premium.
Calculated based on actual results in previous years
and general level of other expenses.

866,089,647
6,766,184

Calculated based on normal deposit interest rates andother factors.

55,873,330

Calculated based on the engineering report of Tokio
Marine & Nichido Risk Consulting Co., Ltd.

816,982,501(7) Capitalization Rate
Price Calculated by the Discounted

Calculated based on actual results in previous years
and general level of advertisement fee for leasing, etc.

4.3%

Calculated based on capitalization rates ofsurrounding properties and with consideration for thelocation and unique characteristics of the Property.

18,400,000,000

Discount Rate
Terminal Capitalization Rate

4.1%
4.5%

Cost Approach Price
Ratio of Land

Calculated based on a comprehensive considerationof such factors as the yield on investment in similar
properties and the Property's specific characteristics.
Calculated by comparison to the capitalization rate
and other factors.

-Ratio of Building
The subject property is a retail facility adjacent to Universal Studios Japan (“USJ”), a theme parkboasting the most prominent capacity to attract guests in western Japan. As the Property isMatters Noted in situated on the traffic line connecting Universal City Station, the nearest station, and the maingate of USJ, it has location characteristics featuring high scarcity value as a retail facility targeting
Reconciliation ofvisitors to USJ. With highly attractive events and the introduction of popular attractions, USJ isIndicated
Value expected to maintain its position as one of the most renowned theme parks in western Japanand Determination going forward.
As stated above, the subject property is expected to have high scarcity value and competitivenessof Appraisal Value as a retail facility, and is anticipated to operate at stable occupancy for years to come. Accordingly,
the appraisal value has been determined with a focus on the capitalization approach price thatappropriately reflects the economic value of investments.

Exhibits
Exhibit 1 Overview of the Portfolio after the Acquisition
Exhibit 2 Photos and Maps of the Asset to be acquired
Exhibit 3 Overview of rights about Universal CityWalk Osaka*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/- 6 -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

44.3

Retail

111,588

68,855

180,444

16.9

Logistics

197,7223,460

201,182

18.8

Residential

168,719

33,328202,047

18.9

Hotels―6,250

6,250

0.6

Others4,900―

4,9000.5(Anticipated)
Total Acquisition Price(by Area)

884,585

183,823

1,068,409

100.0

82.8

17.2

100.0

Investment Ratio (%)(Note 2)

(Note 1) “Greater Tokyo Area” refers to Tokyo Prefecture, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “OtherAreas” 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
Universal CityWalk OsakaExhibit 3
Overview of rights about Universal CityWalk Osaka