[For Translation Purposes Only]

March 14, 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:

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

Notice Concerning Acquisition and Disposition of Domestic Real Estate
and Trust Beneficial Interests in Domestic Real estate
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 and dispose of properties (the “Acquisition” or the “Disposition” or collectively the“Transaction”), as described below.
1.

Summary of Assets to Be Acquired/Disposed of(1)

Summary of Asset to Be Acquired

Property Name

Use

Scheduled
Date of
Purchase andSales
Agreement

Scheduled
Date of
Acquisition

SellerPresence ofIntermediary

AnticipatedAcquisition Price(¥ million)(Note 1)

SOMPO CARE
La vie Re
Residence Yoga

2,850

Grapes Tsujido
Nishi-Kaigan

1,820

SOMPO CARE
Sompo no ie
Omori-Nishi
SOMPO CARE
La vie Re
Residence Shonan
TsujidoHealthcare
facility

March 17,2023

May 31,
2023

Undisclosed

Yes(Note 2)

(Note 3)

1,462
1,150

Total

7,282

(Note 1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax.
(Note 2) The seller is the same domestic stock company, but since the seller's consent for disclosure has not been obtained, it is not disclosed.
(Note 3) The brokerage involved in the acquisition is not considered a related party under the Act on Investment Trusts and Investment Corporation(“Investment Trust Act”).
(Note 4) Of the assets to be acquired, Grapes Tsujido Nishi-kaigan and SOMPO CARE Sompo no ie Omori-Nishi are trust beneficial interest in trust ofreal estate, and other properties are real estate.
(Note 5) Regarding the acquisition of the above four properties, it is rational that the purchase and sale of the other 3 properties will all be executed on thescheduled acquisition date, and that the sale and purchase of the assets to be transferred below will all be executed on the scheduled transfer date.

The above property to be acquired is referred to hereinafter collectively as the “Assets to be Acquired.”
－ １ －

(2)

Summary of Asset to Be Disposed of

Property
Name
NMF
TenjinMinami
Building
PRIME
URBAN
OtsukaUse

Scheduled
Date of
Purchaseand Sales
Agreement

Scheduled
Date of
Disposition

Tokyo Tatemono
Co., Ltd.

OfficeResidential

March 17,2023

Transferee

May 31, 2023

Tokyo Tatemono
Real Estate Sales
Co., Ltd.

Total

PresenceofIntermed
iary

ScheduledTransferPrice(¥ million)(¥ million)

None

3,040

2,002

1,037

Yes

772

661

110

3,812

2,664

1,147

(Note 4)

Book
Value
(Note 2)Difference(Note 3)(¥ million)(Note 1) The amounts stated exclude adjustment amounts of both property taxes and city planning taxes, as well as consumption taxes and local consumption
tax, etc.
(Note 2) Anticipated book value at the date of disposition.
(Note 3) This is only a reference value which is the difference between the scheduled transfer price and the anticipated book value, therefore, it is different
from gain or loss on sale.
(Note 4) The brokerage involved in the disposition is not considered a related party under the Act on Investment Trust Act(Note 5) Regarding the transfer of the above two properties, if the sales contract for each property stipulates that the other properties will be transferredon the scheduled transfer date and all the above assets to be acquired will be sold on the scheduled acquisition date, it will be reasonable. Prospects
are a prerequisite for executing a trade.

The above property is referred to hereinafter as the “Assets to be Disposed of.” The Asset s to be Acquired and Assets to
be Disposed of may be separately referred to as the “Asset.”2.

Reasons for the Transaction
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 Fund has always considered healthcare facilities to be an investment designation as the subsector of residential
facilities. With the number of the elderly population, people certified for support need and long-term care increasing recently,
the Fund has concluded that this market is a sector with a certain degree of marketability and the potential of a future
market, which led to having made the investment.
The Transaction is a transaction to transfer and acquire properties for the purpose of replacing assets with an operatingcompany, and is a crossover deal that straddles sectors, which is unique to comprehensive REIT. The assets to be acquiredin the Transaction are not only favorably located and highly accessible but also ones that are managed by an operator with
an abundant track record in management and high creditworthiness. Additionally, the assets to be acquired are not ones
with a future significant concern as candidates for desposition in opportunities for external growth strategy. However, theFund has concluded that the enhancement of invester gains can be realized by asset replacement with excellent healthcare
facilities with stable cash flows and the securing of gain on sale, and decided on the desposition as a result of discussions
with the counterparty. This is a transaction that materialized through a robust relationship with the operating company, andwith assets replacement by the Transaction, the improvement of portfolio quality will also be realized. Please refer to 3.
Summary of Assets to Be Acquired/Disposed of below for details of the reasons for Assets to be Acquired and the reasonsfor Assets to be Disposed of.
The profits on sale related to the Disposition will be directed to raising the distribution level or internal reserves with theintention of stabilizing future distributions, while considering the future management status of the existing portfolio andothers.

－ ２ －Reference: The portfolio indicators of the properties

Property
Name
NOI
yield

SOMPO
CARE La vie
Re Residence
Yoga

Assets to be acquired
SOMPO
GrapesCARE Sompo
Tsujido Nishino ie OmoriKaigan
Nishi

Assets to be Disposed of
SOMPO
CARE La vie
Re Residence
Shonan Tsujido

NMF TenjinMinami
Building

PRIME
URBAN
Otsuka

6.7%

7.7%

4.7%

6.4%

5.0%

5.0%

6.2 years

6.8 years

8.5 years

5.9 years

15.2 years

16.7 years(Note 1)

Asset
age

(Note 2)
(Note1) Regarding the assets to be acquired, the value entered is calculated by dividing the NOI based on the direct capitalization approach recorded in theappraisal summary by the anticipated acquisition price. In respect of the assets to be disposed of, the value entered is calculated by dividing the total
NOI for the 13th fiscal period ended February 28, 2022 and the 14th fiscal period ended August 31, 2022 by the Anticipated Disposition Price. The
value is rounded to the first decimal place.
(Note2) The asset age entered is as of the scheduled date of Acquisition for the Asset to be Acquired and as of the scheduled transfer date for the Asset to
be Disposed of.

3.

Summary of Assets to Be Acquired/Disposed of(1) Summary of Asset to Be Acquired
SOMPO CARE La vie Re Residence Yoga
<Reasons for the Acquisition>
The main strengths of the Asset to be Acquired are as follows.
･The asset is a seven-minute walk from Yoga Station and a nine-minute walk from Sakura-shimmachi Station of
Tokyu Den-en-toshi Line, and boasts the excellent convenience of transportation and daily living with a highconcentration of supermarkets, drugstores and others in the surrounding area.
･The population aged 75 and over (from 2015 to 2045) in Setagaya Ward, where the asset is located, outgrows thenational average, which equipped the asset with advantages as a senior home.
･Since Sompo Care Inc., which is a tenant and the operator of the Asset, has an industry-leading scale of business,strong creditworthiness, and a good record of operation, and also its rent burden ratio in the tenant and operator
income is judged to be on an appropriate level, stable asset management profits can be expected over the medium
to long term.
<Summary of the Asset to be Acquired>
Property Name
Type of AssetRegistry
Location (Note1)
StreetAccessCompletion Date (Note1)
Use (Note1)
Structure (Note1)
Leasing Units
Architect
Builder
Building Inspection Agency
Area (Note1)

Land

SOMPO CARE La vie Re Residence Yoga
Real estate3-612 Yoga, Setagaya Ward, Tokyo
3-6-3 Yoga, Setagaya Ward, Tokyo
Seven-minute walk from Yoga Station in Tokyu Den-en-toshi Line
Nine-minute walk from Sakura-shimmachi Station in Tokyu Den-en-toshi
Line
March 9, 2017
Senior home
Six-floor steel reinforced concrete structure with flat roof
120
IAO Takeda Architects Associates Co., Ltd.
Fujita Corporation
Public interest incorporated foundation Tokyo Bosai-Kensetsu Machi-zukuri
Center3,525.88 ㎡－ ３ －Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note5)Master Leasing Company
Type of Master Leasing(Note6)

Seismic Risk (PML)(Note7)

Notes
Anticipated Acquisition PriceAppraisal Valueand Method
Appraisal NOI(Note8)8,380.68 ㎡
Leasehold(Note2)
Ownership
70%(Note3)
200%(Note4)
None
HASEKO LIVENET, Inc.
None
None
8.8% (Based on the Earthquake PML Appraisal Report as of March 2023 by
Sompo Risk Management Inc.)¥2,850 million¥3,390 million (Based on the capitalization approach as of March 1, 2023)(Appraiser: Japan Valuers Co., Ltd.)¥190 million

Leasing Status (As of February 28, 2023)(Note9)
Total Number of Tenants
1
Representative Tenant
Sompo Care Inc.(Note10)
Total Rental Income(Annual)
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
8,462.26 ㎡
Total Leasable Floor Space
8,462.26 ㎡
February
February
February
February
February
2019
2020
2021
2022
2023
Historical Occupancy Rates
100.0%
100.0%
100.0%
100.0%
100.0%
Status of Residents and Overview of the Facility (Entry date of the disclosure statement: July 1, 2021) (Note 11)
Operator
Sompo Care Inc.
Establishment Date
May 19, 2017
Type of Facility
Private senior home with nursing care
Number of Rooms
120
Building lease contract
Type of Rights for Residence
Resident Capacity (people)
216
Range of Living Floor Space
28.02 ㎡-73.16 ㎡
122
Number of Residents
Entering Requirements (Note 12)
Self-reliant, Certified for support need and long-term care
Resident Capacity Rate(Note 13)
88.3%
Average Required Level of
1.3
Nursing Care of Residents (Note 14)
Average Age of Residents
86.7 years old
One-time fee method
Monthly fee method
Service Fee Payment Method
One-time entrance fee(Note 15)Monthly fee
Staff Engaged in Nursing Care
Staff at Nighttime (Number ofstaff members at minimum)
Cooperating Medical Institutions-¥246-507 thousand

Medical corporation association Sofuku-kai, Fukuro Clinic Todoroki
Medical corporation association Takanawa-kai, Takanawa Dental Clinic(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: Tokyo Prefecture
Type of leasehold: Ordinary fixed-term land leasehold－ ４ －Leasehold period: From June 1, 2015 to May 31, 2065
(Note 3) Building Coverage Ratio
The asset is located in a category 1 medium-to-high-rise exclusive residential area, which is applicable to the ratio of 60%. However, theasset is eligible for a relief since it falls under the category of corner lots designated by the Specific Administrative Agency. Accordingly,
the applied building ratio is 70%.
(Note 4)Floor Area Ratio
The designated floor area ratio of the land of the asset is 200%, applicable to category 1 medium-to-high rise exclusive residential areas.
(Note 5) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 6) Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. The “Pass-through type” refers to the format in which
the master lease company pays the amount, equivalent of the total of rents based on the lease contract with the end tenant.
(Note 7)PML(Probable Maximum Loss)PML shows the degree of damage to be caused by the largest-scale earthquake (a large earthquake that may occur once in 475 years = alarge earthquake with a 10% chance of occurring in 50 years) during the anticipated period of use (50 years = the expected lifetime of astandard building) as a ratio (percentage) of the expected recovery cost to the repurchase cost.
(Note 8) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with March 1, 2023
as the appraisal date.
(Note 9)Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block, and then, thelessee under such lease contract subleases each of the rooms to residents.
“Total Rental Income” and “Security Deposits” are undisclosed, since a consent had not been obtained from tenants.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 28, 2023 by Total Leasable Floor Space.
“Total Leased Floor Space indicates the total floor space leased to end tenants as of February 28, 2023.
“Total Leasable Floor Space is the total floor space of offices, retail facilities, logistics facilities, residential facilities, accommodations, etc. (ifthe common area, etc. are leased, the floor space thereof is included.)(Note 10)Overview of Lease Contract with Representative Tenant
Agreement format:
A fixed-term building lease contract for the purpose of using the asset as a home for the elderly with nursing care, long-term care insurance
service offices, such as home-visit care business site, and authorized childcare center.
Contract period: From April 1, 2022 to May 31, 2064.
Rent revision: If the rent has come to be recognized as unreasonable even during the lease period, the lessor and the lessee may request arevision of the rent of the other party only by giving a written notice no late than six months prior to the starting date of each such lease
period renewed every five years from September 1, 2025, and may revise the rent upon consultation.
Contract renewal: Not renewable
Early termination: Earlier termination: Earlier termination in the middle of the above contract period will not be allowed, in principle.
However, the lessee may terminate this contract after January 1, 2034 even during the above contract period (1) in the event that the lessee
notifies the lessor in writing 12 months before the termination date and pays the fine set forth in the lease contract to the lessor, or (2) the
lessee pays the fine set forth in the lease contract in addition to 12-month’s worth of rents, the lessee can terminate this contract immediately.
(Note 11) Status of Residents and Overview of the Facility
The status of residents and the overview of the facility are described based on information, etc. cited in the disclosure statement or thewebsite of the asset. The items described as “-“ is omitted since they are not found in the disclosure statement or the website of the asset.
(Note 12) Entering Requirements
Regarding the entering requirements, only subjects related to the required level of nursing care in the requirements for entering the asset aredescribed.
(Note 13)Resident Capacity Rate
The resident capacity rate may differ from the ratio calculated by dividing the number of residents by capacity due to circumstances, such as
including residents who are absent temporarily.
(Note 14)Average Required Level of Nursing Care of Residents
The average required level of nursing care of residents is expressed as the value calculated by dividing the total of multifiers in accordancewith the required level of nursing care, described in the table below, by the number of residents.
Requiiredlevel of

Self-

SupportSupportnursingreliant

need 1

need 2

care

Long-

Long-

Long-

Long-

Long-

term careterm careterm careterm careterm care

1

2

3

4

5

－ ５ －

OthersMultifiler

0

0.375

1

1

2

3

4

5

1

(Note 15)Service Fee Payment Method
The “one time fee method” in the service fee payment method is a method of paying part of the service fee related to the health care facility
in a lump. The “monthly fee method” is a method of dividing and paying the said service monthly. The monthly usage fee is the monthly fee
displayed in the important matter manual or the price list obtained from the operator. Some residents pay nursing care fee and other charges
in addition to one-time entrance fee and monthly service fee.

Grapes Tsujido Nishi-Kaigan<Reasons for the Acquisition>
The main strengths of the Asset to be Acquired are as follows.
･The Asset is highly conveniently located for transportation and everyday life since it is a 20-minute walk from Tsujido
Station on the JR Tokaido Main Line and a 1-minute walk from Tsujido-Danchi-Nishi Station of Kanagawa Chuo
Kotsu (bus service) and there are complex commercial facilities such as Terrace Mall Shonan in the surroundingarea.
･Fujisawa City, where the Asset is located, has a population growth rate of persons aged 75 or older (from 2015 to2045) above the national average, is an ideal place for senior citizens' housing in many respects.
･Since Sompo Care Inc., which is a tenant and the operator of the Asset, has an industry-leading scale of business,strong creditworthiness, and a good record of operation, and also its rent burden ratio in the tenant and operator
income is judged to be on an appropriate level, stable asset management profits can be expected over the medium
to long term.
<Summary of the Asset to be Acquired>
Property Name
Type of Asset
Trustee
Registry
Location(Note1)
StreetAccessCompletion Date (Note1)
Use (Note1)
Structure (Note1)
Leasing Units
Architect
Builder
Building Inspection Agency
Land
Area (Note1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note5)Master Leasing Company
Type of Master Leasing(Note6)

Seismic Risk (PML)(Note7)

Notes

Grapes Tsujido Nishi-Kaigan
Trust beneficial interest in trust of real estate
Sumitomo Mitsui Trust Bank, Limited
2-7181-38 (and one other parcel of land) Tsujido-Nishikaigan, Fujisawa City,
Kanagawa
2-12-2 Tsujido-Nishikaigan, Fujisawa City, Kanagawa
20-minute walk from Tsujido Station on the JR Tokaido Main Line
1-minute walk from Tsujido-Danchi-Nishi Station of Kanagawa Chuo Kotsu
July 15, 2016
Senior home
Five-floor steel reinforced concrete structure with flat roof
158
Daisue Construction Co., Ltd.
Daisue Construction Co., Ltd.
Bureau Veritas Japan Co., Ltd.
4,222.05 ㎡
8,140.58 ㎡
Leasehold(Note2)
Ownership
40%(Note3)
200%(Note4)
None
HASEKO LIVENET, Inc.
None
None
7.2%(Based on the Earthquake PML Appraisal Report as of March 2023 by
Sompo Risk Management Inc.)－ ６ －Anticipated Acquisition Price¥1,820 million
Appraisal Value¥2,290 million (Based on the capitalization approach as of March 1, 2023)
and Method(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI (Note8)¥140 million
Leasing Status (As of February 28, 2023)(Note9)
Total Number of Tenants
1
Representative Tenant
Sompo Care Inc.(Note10)
Total Rental Income(Annual)
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
8,132.47 ㎡
Total Leasable Floor Space
8,132.47 ㎡
February
February
February
February
February
2019
2020
2021
2022
2023
Historical Occupancy Rates
100.0%
100.0%
100.0%
100.0%
100.0%
Status of Residents and Overview of the Facility (Entry date of the disclosure statement: August 1, 2021) (Note 11)
Operator
Sompo Care Inc.
Establishment Date
October 1, 2016
Type of Facility
Private senior home with nursing care
Number of Rooms
158
Building lease contract
Type of Rights for Residence
Resident Capacity (people)
250
Range of Living Floor Space18.80 ㎡-67.59 ㎡
172
Number of Residents
Entering Requirements(Note 12)
Self-reliant, Certified for support need and long-term care
Resident Capacity Rate(Note 13)
Average Required Level of
0.6
Nursing Care of Residents (Note 14)
Average Age of Residents
82.2 years old
One-time fee method
Monthly fee method
Service Fee Payment
One-time entrance fee
Method(Note15)
Monthly fee¥126-401 thousand
Staff Engaged in Nursing Care
Staff at Nighttime (Number ofstaff members at minimum)
Cooperating Medical Institutions Medical Corporation Association Seiryukai Fujisawa Neurosurgery Hospital
Medical Corporation Hasegawakai Shonan Hospital(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 (Undisclosed as consent has not been obtained from the lessor.)
Type of leasehold:Ordinary fixed-term land leasehold
Leasehold period: From April 30, 2015 to April 30, 2065
(Note 3) Building Coverage Ratio
The Asset is located in a category I medium-to-high-rise exclusive residential zone where the building coverage ratio is 60%. However,under the restriction applicable to a scenic zone, the applied ratio is 40%.
(Note 4)Floor Area Ratio
The designated floor area ratio of the land of the asset is 200%, applicable to category 1 medium-to-high rise exclusive residential areas.
(Note 5) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 6) Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. The “Pass-through type” refers to the format in which
the master lease company pays the amount, equivalent of the total of rents based on the lease contract with the end tenant.
(Note 7)PML(Probable Maximum Loss)PML shows the degree of damage to be caused by the largest-scale earthquake (a large earthquake that may occur once in 475 years = alarge earthquake with a 10% chance of occurring in 50 years) during the anticipated period of use (50 years = the expected lifetime of astandard building) as a ratio (percentage) of the expected recovery cost to the repurchase cost.

－ ７ －(Note 8) Appraisal NOI
Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with March 1, 2023
as the appraisal date.
(Note 9) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block, and then, thelessee under such lease contract subleases each of the rooms to residents.
“Total Rental Income” and “Security Deposits” are undisclosed, since a consent had not been obtained from tenants.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 28, 2023 by Total Leasable Floor Space.
“Total Leased Floor Space indicates the total floor space leased to end tenants as of February 28, 2023.
“Total Leasable Floor Space is the total floor space of offices, retail facilities, logistics facilities, residential facilities, accommodations, etc. (ifthe common area, etc. are leased, the floor space thereof is included.)(Note 10)Overview of Lease Contract with Representative Tenant
Agreement format: Fixed-term building lease contract intended for the use as serviced senior citizens' housing or a long-term care insurance
service office including home-visit care companies
Contract period: From April 1, 2022 to April 30, 2064.
Rent revision: If the rent has come to be recognized as unreasonable even during the lease period, the lessor and the lessee may request arevision of the rent of the other party only by giving a written notice no late than six months prior to the starting date of each such lease
period renewed every five years from September 1, 2025, and may revise the rent upon consultation.
Contract renewal: Not renewable
Early termination:Earlier termination: Earlier termination in the middle of the above contract period will not be allowed, in principle.
However, the lessee may terminate this contract after January 1, 2034 even during the above contract period (1) in the event that the lessee
notifies the lessor in writing 12 months before the termination date and pays the fine set forth in the lease contract to the lessor, or (2) the
lessee pays the fine set forth in the lease contract in addition to 12-month’s worth of rents, the lessee can terminate this contract immediately.
(Note 11)Status of Residents and Overview of the Facility
The status of residents and the overview of the facility are described based on information, etc. cited in the disclosure statement or thewebsite of the asset. The items described as “-“ is omitted since they are not found in the disclosure statement or the website of the asset.
(Note 12) Entering Requirements
Regarding the entering requirements, only subjects related to the required level of nursing care in the requirements for entering the asset aredescribed.
(Note 13)Resident Capacity Rate
The description is omitted because it is not described in the the important matter manual.
(Note 14)Average Required Level of Nursing Care of Residents
The average required level of nursing care of residents is expressed as the value calculated by dividing the total of multifiers in accordancewith the required level of nursing care, described in the table below, by the number of residents.
Requiiredlevel of

Self-

SupportSupportnursingreliant

need 1

need 2

0

0.375

1

care
Multifiler

Long-

Long-

Long-

Long-

Long-

term careterm careterm careterm careterm care

1

2

3

4

5

1

2

3

4

5

Others1(Note 15)Service Fee Payment Method
The “one time fee method” in the service fee payment method is a method of paying part of the service fee related to the health care facility
in a lump. The “monthly fee method” is a method of dividing and paying the said service monthly. The monthly usage fee is the monthly fee
displayed in the important matter manual or the price list obtained from the operator. Some residents pay nursing care fee and other charges
in addition to one-time entrance fee and monthly service fee.

SOMPO CARE Sompo no ie Omori-Nishi<Reasons for the Acquisition>
The main strengths of the Asset to be Acquired are as follows.
･The Asset is highly conveniently located for transportation and everyday life since it is a 10-minute walk from
Umeyashiki Station on the Keikyu Main Line and a 13-minute walk from Kamata Station on the JR Keihin-Tohoku
Line, and there are hospitals, supermarkets, and convenience stores in the surrounding area.
･Ota Ward, where the Asset is located, has a population growth rate of persons aged 75 or older (from 2015 to 2045)
above the national average, is an ideal place for senior citizens' housing in many respects.
－ ８ －･The Asset is a paid assisted-living nursing home (specified facility) for which the approval of the undertaking fromthe government has been obtained, for which stable nursing care income of the tenant (operator) can be expected.
･Since Sompo Care Inc., which is a tenant and the operator of the Asset, has an industry-leading scale of business,strong creditworthiness, and a good record of operation, and also its rent burden ratio in the tenant and operator
income is judged to be on an appropriate level, stable asset management profits can be expected over the medium
to long term.
<Summary of the Asset to be Acquired>
Property Name
Type of Asset
Trustee
Registry
Location(Note1)
StreetAccessCompletion Date (Note1)
Use (Note1)
Structure (Note1)
Leasing Units
Architect
Builder
Building Inspection Agency
Land
Area (Note1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note4)Master Leasing Company
Type of Master Leasing

SOMPO CARE Sompo no ie Omori-Nishi
Trust beneficial interest in trust of real estate
Sumitomo Mitsui Trust Bank, Limited
7-99-1 Omori-Nishi, Ota Ward, Tokyo
7-6-30 Omori-Nishi, Ota Ward, Tokyo
10-minute walk from Umeyashiki Station on the Keikyu Main Line
13-minute walk from Kamata Station on the JR Keihin-Tohoku Line
November 19, 2014
Senior home
Five-floor reinforced concrete structure with a flat roof and 1 basement floor
56
Institute of New Architecture Inc.
KOKUNE Corporation
Bureau Veritas Japan Co., Ltd.
801.98 ㎡
2,293.27 ㎡
Ownership
Ownership
70%(Note2)
300%(Note3)
None
HASEKO LIVENET, Inc.
None
None

(Note5)

Seismic Risk (PML)

4.3%(Based on the Earthquake PML Appraisal Report as of March 2023 by
Sompo Risk Management Inc.)
Notes
Anticipated Acquisition Price¥1,462 million
Appraisal Value¥1,840 million (Based on the capitalization approach as of March 1, 2023)
and Method(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI (Note7)¥68 million
Leasing Status (As of February 28, 2023) (Note8)
Total Number of Tenants
1
Representative Tenant
Sompo Care Inc.(Note9)
Total Rental Income(Annual)
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
2,360.33 ㎡
Total Leasable Floor Space
2,360.33 ㎡
February
February
February
February
February
2019
2020
2021
2022
2023
Historical Occupancy Rates
100.0%
100.0%
100.0%
100.0%
100.0%
Status of Residents and Overview of the Facility (Entry date of the disclosure statement: September 1, 2021)(Note6)(Note 10)

Operator
Establishment Date

Sompo Care Inc.
January 17, 2015
－ ９ －Type of Facility
Number of Rooms
Type of Rights for Residence
Resident Capacity (people)
Range of Living Floor Space
Number of Residents
Entering Requirements (Note 11)
Resident Capacity Rate(Note 12)
Average Required Level of
Nursing Care of Residents (Note 13)
Average Age of Residents
Service Fee Payment Method(Note 14)

Staff Engaged in Nursing
Care(Note 15)
Staff at Nighttime (Number ofstaff members at minimum)
Cooperating Medical Institutions

Serviced senior citizens' housing / Paid assisted-living nursing home56
Building lease contract
61
18.60 ㎡-53.67 ㎡
50
Self-reliant, Certified for support need and long-term care
85.7%
1.7
86.3 years old
One-time entrance fee
Monthly fee

One-time fee method-

Monthly fee method¥244-490 thousand

3:1 or more
1
Medical Corporation Association Nakajima-Kinenkai Omori Sanno
Hospital
Medical Corporation Association Takawakai Sunflower Building Dental
ClinicMitsukoshi Pharmacy(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
The Asset is located in a semi industrial zone where the building coverage ratio is 60% in principle. However, with the relaxation of therestriction applicable to a corner lot designated by the designated administrative agency, the applied ratio is 70%.
(Note3)Floor Area Ratio
The designated floor area ratio of the Asset's land is 300%, which is applicable to semi industrial zones.
(Note 4) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 5) Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. The “Pass-through type” refers to the format in which
the master lease company pays the amount, equivalent of the total of rents based on the lease contract with the end tenant.
(Note 6) PML (Probable Maximum Loss)PML shows the degree of damage to be caused by the largest-scale earthquake (a large earthquake that may occur once in 475 years = alarge earthquake with a 10% chance of occurring in 50 years) during the anticipated period of use (50 years = the expected lifetime of astandard building) as a ratio (percentage) of the expected recovery cost to the repurchase cost.
(Note 7) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with March 1, 2023
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 as a block, and then, thelessee under such lease contract subleases each of the rooms to residents.
“Total Rental Income” and “Security Deposits” are undisclosed, since a consent had not been obtained from tenants.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 28, 2023 by Total Leasable Floor Space.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 28, 2023 by Total Leasable Floor Space. “Total Leasable
Floor Space is the total floor space of offices, retail facilities, logistics facilities, residential facilities, accommodations, etc. (if the common
area, etc. are leased, the floor space thereof is included.)(Note 9) Overview of Lease Contract with Representative Tenant
Agreement format:Regular building lease contract for the provision of serviced senior citizens' housing and specified facility resident daily
nursing care
Contract period: From September 1, 2020 to December 31, 2037.
Rent revision:If the rent has come to be recognized as unreasonable even during the lease period, the lessor and the lessee may request arevision of the rent of the other party only by giving a written notice no late than six months prior to the starting date of each such lease
period renewed every five years from September 1, 2025, and may revise the rent upon consultation.

－ １０ －

Contract renewal: Unless either of the lessor or the lessee manifests a different intention in writing no later than 12 months prior to the
expiration of the above contract period, the contract will be renewed automatically for an additional five years each on the same terms andconditions as those effective at the expiration of the original or any such extended period thereof.
Earlier termination: Earlier termination in the middle of the above contract period will not be allowed, in principle. However, the lessee may
terminate this contract after January 1, 2034 even during the above contract period (1) in the event that the lessee notifies the lessor in writing
12 months before the termination date and pays the fine set forth in the lease contract to the lessor, or (2) the lessee pays the fine set forthin the lease contract in addition to 12-month’s worth of rents, the lessee can terminate this contract immediately.
(Note 10) Status of Residents and Overview of the Facility
The status of residents and the overview of the facility are described based on information, etc. cited in the disclosure statement or thewebsite of the asset. The items described as “-“ is omitted since they are not found in the disclosure statement or the website of the asset.
(Note 11) Entering Requirements
Regarding the entering requirements, only subjects related to the required level of nursing care in the requirements for entering the asset aredescribed.
(Note 12)Resident Capacity Rate
The resident capacity rate may differ from the ratio calculated by dividing the number of residents by capacity due to circumstances, such as
including residents who are absent temporarily.
(Note 13)Average Required Level of Nursing Care of Residents
The average required level of nursing care of residents is expressed as the value calculated by dividing the total of multifiers in accordancewith the required level of nursing care, described in the table below, by the number of residents.
Requiiredlevel of

Self-

SupportSupportnursingreliant

need 1

need 2

0

0.375

1

Long-

Long-

Long-

Long-

Long-

term careterm careterm careterm careterm care

1

2

3

4

5

1

2

3

4

5

care
Multifiler

Others1(Note 14)Service Fee Payment Method
The “one time fee method” in the service fee payment method is a method of paying part of the service fee related to the health care facility
in a lump. The “monthly fee method” is a method of dividing and paying the said service monthly. The monthly usage fee is the monthly fee
displayed in the important matter manual or the price list obtained from the operator. Some residents pay nursing care fee and other charges
in addition to one-time entrance fee and monthly service fee.
(Note 15)Staff Engaged in Nursing Care
Staff engaged in nursing care indicate the proportion of the number of people respectively in accordance with the full-time equivalentmethod of nursing and nursing-care staff members to users of the asset.

SOMPO CARE La vie Re Residence Shonan Tsujido<Reasons for the Acquisition>
The main strengths of the Asset to be Acquired are as follows.
･The Asset is highly conveniently located for transportation and everyday life since it is a 3-minute walk from Tsujido
Station on the JR Tokaido Main Line and there are complex retail facilities in the surrounding area.
･Chigasaki City, where the Asset is located, has a population growth rate of persons aged 75 or older (from 2015 to2045) above the national average, is an ideal place for senior citizens' housing in many respects.
･Since Sompo Care Inc., which is a tenant and the operator of the Asset, has an industry-leading scale of business,strong creditworthiness, and a good record of operation, and also its rent burden ratio in the tenant and operator
income is judged to be on an appropriate level, stable asset management profits can be expected over the medium
to long term.
<Summary of the Asset to be Acquired>
Property Name
Type of AssetRegistry
Location(Note1)
StreetAccessSOMPO CARE La vie Re Residence Shonan Tsujido
Real estate
5001 Akamatsu-cho, Chigasaki City, Kanagawa
13-16 Akamatsu-cho, Chigasaki City, Kanagawa
3-minute walk from Tsujido Station on the JR Tokaido Main Line
－ １１ －

Completion Date (Note1)
Use (Note1)
Structure (Note1)
Leasing Units
Architect
Builder
Building Inspection Agency
Land
Area (Note1)
Floor Area
Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company(Note5)Master Leasing Company
Type of Master Leasing(Note6)

July 3, 2017
Senior home
Six-floor steel reinforced concrete structure with flat roof
70
IAO Takeda Architects Associates Co., Ltd.
Fujita Corporation
Japan Constructive Inspect Association
2,000.56 ㎡
4,121.51 ㎡
Leasehold(Note2)
Ownership
60%(Note3)
200%(Note4)
None
HASEKO LIVENET, Inc.
None
None

Seismic Risk (PML)

8.6% (Based on the Earthquake PML Appraisal Report as of March 2023 by
Sompo Risk Management Inc.)
Notes
Anticipated Acquisition Price¥1,150 million
Appraisal Value¥1,580 million (Based on the capitalization approach as of March 1, 2023)
and Method(Appraiser: Japan Valuers Co., Ltd.)
Appraisal NOI (Note8)¥73 million
Leasing Status (As of February 28, 2023) (Note9)
Total Number of Tenants
1
Representative Tenant
Sompo Care Inc.(Note10)
Total Rental Income(Annual)
Undisclosed
Security Deposits
Undisclosed
Occupancy Rate
100.0%
Total Leased Floor Space
4,270.10 ㎡
Total Leasable Floor Space
4,270.10 ㎡
February
February
February
February
February
2019
2020
2021
2022
2023
Historical Occupancy Rates
100.0%
100.0%
100.0%
100.0%
100.0%
Status of Residents and Overview of the Facility (Entry date of the disclosure statement: August 1, 2021) (Note 11)
Operator
Sompo Care Inc.
Establishment Date
August 31, 2017
Type of Facility
Serviced senior citizens' housing
Number of Rooms
70
Building lease contract
Type of Rights for Residence
Resident Capacity (people)
128
Range of Living Floor Space
25.49 ㎡-64.75 ㎡
69
Number of Residents
Entering Requirements (Note 12)
Self-reliant, Certified for support need and long-term care
Resident Capacity Rate(Note 13)
Average Required Level of
0.7
Nursing Care of Residents (Note 14)
Average Age of Residents
81.5 years old
One-time fee method
Monthly fee method
Service Fee Payment Method
One-time entrance fee(Note7)(Note 15)Monthly fee
Staff Engaged in Nursing Care
Staff at Nighttime (Number ofstaff members at minimum)－ １２ －-¥232-378 thousandCooperating Medical Institutions

Medical Corporation Hasegawakai Shonan Hospital
Medical Corporation MBS Shonan Ishiguro Clinic(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:Individual
Type of leasehold:Ordinary land leasehold rightLeasehold period: From June 1, 2016 to May 31, 2046
(Note 3) Building Coverage Ratio
The designated building coverage ratio of the Asset's land is 60%, which is applicable to category I residential zone.
(Note 4)Floor Area Ratio
The designated floor area ratio of the Asset's land is 200%, which is applicable to category I residential zone.
(Note 5) Property Management Company
Refers to the property management company that is scheduled to be appointed after acquisition.
(Note 6) Master Lease
The master lease scheme that is scheduled to apply after the Acquisition is stated. The “Pass-through type” refers to the format in which
the master lease company pays the amount, equivalent of the total of rents based on the lease contract with the end tenant.
(Note 7)PML(Probable Maximum Loss)PML shows the degree of damage to be caused by the largest-scale earthquake (a large earthquake that may occur once in 475 years = alarge earthquake with a 10% chance of occurring in 50 years) during the anticipated period of use (50 years = the expected lifetime of astandard building) as a ratio (percentage) of the expected recovery cost to the repurchase cost.
(Note 8) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with March 1, 2023
as the appraisal date.
(Note 9) Leasing Status“Total Number of Tenants” is stated as “1” because, for the purpose of subleasing, all of the rooms are leased as a block, and then, thelessee under such lease contract subleases each of the rooms to residents.
“Total Rental Income” and “Security Deposits” are undisclosed, since a consent had not been obtained from tenants.
“Occupancy Rate” is calculated by dividing Total Leased Floor Space as of February 28, 2023 by Total Leasable Floor Space.
“Total Leased Floor Space indicates the total floor space leased to end tenants as of February 28, 2023.
“Total Leasable Floor Space is the total floor space of offices, retail facilities, logistics facilities, residential facilities, accommodations, etc. (ifthe common area, etc. are leased, the floor space thereof is included.)(Note 10)Overview of Lease Contract with Representative Tenant
Agreement format:Regular building lease contract intended for the use as serviced senior citizens' housing or a place of business for longterm care insurance service including places of home-visit care businessContract period: From September 1, 2020 to December 31, 2037.
Rent revision:If the rent has come to be recognized as unreasonable even during the lease period, the lessor and the lessee may request arevision of the rent of the other party only by giving a written notice no late than six months prior to the starting date of each such lease
period renewed every five years from September 1, 2025, and may revise the rent upon consultation.
Contract renewal: Unless either of the lessor or the lessee manifests a different intention in writing no later than 12 months prior to the
expiration of the above contract period, the contract will be renewed automatically for an additional five years each on the same terms andconditions as those effective at the expiration of the original or any such extended period thereof.
Earlier termination: Earlier termination in the middle of the above contract period will not be allowed, in principle. However, the lessee may
terminate this contract after January 1, 2034 even during the above contract period (1) in the event that the lessee notifies the lessor in writing
12 months before the termination date and pays the fine set forth in the lease contract to the lessor, or (2) the lessee pays the fine set forthin the lease contract in addition to 12-month’s worth of rents, the lessee can terminate this contract immediately.
(Note 11) Status of Residents and Overview of the Facility
The status of residents and the overview of the facility are described based on information, etc. cited in the disclosure statement or thewebsite of the asset. The items described as “-“ is omitted since they are not found in the disclosure statement or the website of the asset.
(Note 12) Entering Requirements
Regarding the entering requirements, only subjects related to the required level of nursing care in the requirements for entering the asset aredescribed.
(Note 13)Resident Capacity Rate
The description is omitted because it is not described in the the important matter manual.
(Note 14)Average Required Level of Nursing Care of Residents
The average required level of nursing care of residents is expressed as the value calculated by dividing the total of multifiers in accordance－ １３ －

with the required level of nursing care, described in the table below, by the number of residents.
Requiredlevel of

Self-

SupportSupportnursingreliant

need 1

need 2

0

0.375

1

Long-

Long-

Long-

Long-

Long-

term careterm careterm careterm careterm care

1

2

3

4

5

1

2

3

4

5

care
Multifiler

Others1(Note 15)Service Fee Payment Method
The “one time fee method” in the service fee payment method is a method of paying part of the service fee related to the health care facility
in a lump. The “monthly fee method” is a method of dividing and paying the said service monthly. The monthly usage fee is the monthly fee
displayed in the important matter manual or the price list obtained from the operator. Some residents pay nursing care fee and other charges
in addition to one-time entrance fee and monthly service fee.

(2) Summary of Asset to Be Disposed of<Reasons for the Disposition>
The Fund decided to make the Dispositions based on the judgment that the profits on sale to be secured and theportfolio quality to be improved by the Dispositions, in addition to the acquisition of excellent properties by property
replacement, would contribute to the medium-to-long-term investor value.

<Summary of the Asset to Be Disposed of>Property Name
Type of Asset
Trustee
Registry
Location(Note1)StreetAccessCompletion Date (Note1)
Use (Note1)
Structure (Note1)
Land
Area (Note1)

Floor Area

Land
Type ofOwnership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note4)
Type of Ownership
Acquisition Price
Scheduled Transfer PriceBook Value (Note5)
Difference
Appraisal Valueand Method

NMF Tenjin-Minami Building
Trust beneficial interest in trust of real estate
Sumitomo Mitsui Trust Bank, Limited
3-6-15 Watanabedori, Chuo Ward, Fukuoka City, Fukuoka
3-6-15 Watanabedori, Chuo Ward, Fukuoka City, Fukuoka
4-minute walk from Watanabe-dori Station on the Fukuoka City
Subway Nanakuma Line
4-minute walk from Tenjin-minami Station on the Fukuoka City
Subway Nanakuma Line
5-minute walk from Nishitetsu Fukuoka (Tenjin) Station on the
Nishitetsu Omuta Line
February 18, 2008
OfficeTen-floor steel framed structure with flat roof
745.32 ㎡
4,603.61 ㎡(Note2)
Ownership
Ownership
100%(Note3)
600%
None
XYMAX KYUSHU Corporation
0.1% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
There are no applicable matters.
¥2,230 million¥3,040 million¥2,002 million¥1,037 million¥3,030 million (Based on the capitalization approach as of August
31, 2022)(Appraiser: Japan Real Estate Institute)－ １４ －

Appraisal NOI (Note6)¥140 million

Leasing Status (As of January 31, 2023) (Note7)
Total Number of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate

Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates

21¥185 million (including common area charges)¥151 million
98.1%
3,681.07㎡
3,751.85㎡
February2018

February
2019

February
2020

February2021

February2022

100.0%

100.0%

100.0%

100.0%

96.5%(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) Floor Area
Including the attached parking lot of 52.69 ㎡.
(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 fire prevention zone, the applied ratio is 100%.
(Note 4)PML(Probable Maximum Loss)PML shows the degree of damage to be caused by the largest-scale earthquake (a large earthquake that may occur once in 475 years = alarge earthquake with a 10% chance of occurring in 50 years) during the anticipated period of use (50 years = the expected lifetime of astandard building) as a ratio (percentage) of the expected recovery cost to the repurchase cost.
(Note 5)Book Value
Anticipated book value at the date of disposition.
(Note 6) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with August 31,
2022 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 today.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the lease agreementswith the end tenants actually leasing space in the building of the Asset as of today (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 (rounded down
to the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of today.
“Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities, residential facilities, hotels, etc. within the
Asset that can be leased as of today (if any common area, etc. is leased, the floor space thereof is included).

Property Name
Type of AssetRegistry
Location(Note1)StreetAccessCompletion Date (Note1)
Use (Note1)
Structure (Note1)
Leasing UnitsLand

PRIME URBAN Otsuka
Real estate
1-832-11 Nishisugamo, Toshima Ward, Tokyo
1-3-4 Nishisugamo, Toshima Ward, Tokyo
8-minute walk from Otsuka Station on the JR Yamanote Line
3-minute walk from Sugamoshinden Station on the Toden Arakawa
Line
September 7, 2006
Apartment
Six-floor steel reinforced concrete structure with flat roof
46386.23 ㎡

Area (Note1)

Floor Area

1,094.23 ㎡

Type ofLand

Ownership－ １５ －

Ownership
Building
Building Coverage Ratio
Floor Area Ratio
Collateral
Property Management Company
Master Leasing Company
Type of Master Leasing
Seismic Risk (PML)(Note2)
Type of Ownership
Acquisition Price
Scheduled Transfer PriceBook Value (Note3)
Difference
Appraisal Valueand Method
Appraisal NOI (Note4)

Ownership
80%
400%
None
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Pass through
4.4% (Based on the Earthquake PML Appraisal Report as of
September 2022 by Sompo Risk Management Inc.)
Nomura Real Estate Partners Co. Ltd., the property managementcompany, is considered a related party under the Act on Investment
Trusts and Investment Corporations.
¥730 million¥772 million¥661 million¥110 million¥767 million (Based on the capitalization approach as of August 31,2022)(Appraiser: Daiwa Real Estate Appraisal Co., Ltd.)¥35 million

Leasing Status (As of January 31, 2023) (Note5)
Total Number of Tenants
Total Rental
Income(Annual)
Security Deposits
Occupancy Rate

Total Leased Floor Space
Total Leasable Floor SpaceHistorical Occupancy Rates

1¥45 million (including common area charges)¥3 million
95.7%
903.99㎡
944.99㎡
February2018

February
2019

February
2020

February2021

February
2022

97.9%

95.7%

97.9%

100.0%

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)PML(Probable Maximum Loss)PML shows the degree of damage to be caused by the largest-scale earthquake (a large earthquake that may occur once in 475 years = alarge earthquake with a 10% chance of occurring in 50 years) during the anticipated period of use (50 years = the expected lifetime of astandard building) as a ratio (percentage) of the expected recovery cost to the repurchase cost.
(Note 3)Book Value
Anticipated book value at the date of disposition.
(Note 4) Appraisal NOI“Appraisal NOI” is the annual NOI (operating income - operating expenses) described in the real estate appraisal report with August 31,
2022 as the appraisal date.
(Note 5) 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 today.
“Total Rental Income” is the amount obtained by multiplying by 12 the monthly rent and common area charges stated in the lease agreementswith the end tenants actually leasing space in the building of the Asset as of today (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 (rounded down
to the nearest million yen).
“Total Leased Floor Space” indicates the total floor space leased to end tenants as of today.
“Total Leasable Floor Space” is the total floor space of offices, retail facilities, logistics facilities, residential facilities, hotels, etc. within the
Asset that can be leased as of today (if any common area, etc. is leased, the floor space thereof is included).

4.

Summary of Seller of Asset to Be Acquired－ １６ －

As the seller of the Asset to be Acquired, which is a domestic joint-stock company, has not obtained the customer’s
consent for the disclosure, this information is not disclosed. As of today, neither the Fund nor the Asset Management
Company has any notable capital, personnel or transactional relationship with the customer, and the customer is not a
related party of either the Fund or the Asset Management Company.

5.

Summary of Transferee of the Asset to Be Disposed of
The summary of the transferee of the Asset to be Disposed of is as follows.
NMF Tenjin-Minami Building
Company Name
Head Office
Representative

Tokyo Tatemono Co., Ltd.
1-9-9 Yaesu, Chuo Ward, Tokyo（Registration statement）
Hitoshi Nomura, President & CEO
Development, leasing, and management of office buildings, commercial facilities, etc.
Development, sale, leasing, and management of condominiums and detached houses
Transactions, brokerage, and solutions of real estate as well as development andPrincipal Business
management of parking lots
Leisure business, logistics facilities development, asset management, overseas business,and real estate appraisal business
Capital¥92.4 billion (as of December 31, 2021)
Established
October 1, 1896
Net Assets¥406.9 billion (as of December 31, 2021)
Total Assets¥1,474.9 billion (as of December 31, 2021)
Major Shareholder
The Master Trust Bank of Japan, Ltd. (17.4%)(Shareholding Ratio)(As of December 31, 2021)
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 personal
relationship with the said company. In addition, any persons or companies associated with
Personal
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.
PRIME URBAN Otsuka
Company Name
Head Office
Representative
Principal Business

CapitalEstablished
Net Assets
Total Assets

Tokyo Tatemono Real Estate Sales Co., Ltd.
1-5-20 Yaesu, Chuo Ward, Tokyo
Kengo Fukui, President & CEO
Brokerage business
Asset solutions businessLeasing business¥4.3 billion (as of December 31, 2021)
January 25, 1954
¥24.6 billion (as of December 31, 2021)¥60.4 billion (as of December 31, 2021)－ １７ －

Major Shareholder
Tokyo Tatemono Co., Ltd. (100.0%)(Shareholding Ratio)(As of December 31, 2021)
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 personal
relationship with the said company. In addition, any persons or companies associated with
Personal
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.

6.

Summary of Operator of Healthcare Facilities
Company Name

Sompo Care Inc.

Head Office12-8, higashishinagawa 4-chome, Shinagawa Ward, Tokyo

Representative

Takamitsu Washimi, President & COO

Principal Business

Operation of paid nursing home, serviced senior citizens' housing, and group homes
Homecare services business

Capital¥3.9 billion (as of March 31, 2022)

Net sales¥130,782 million (as of March 31, 2022)

EstablishedMay 26, 1997

Attribution

A subsidiary of Sompo Holdings, Inc. listed on the Prime Market of the Tokyo Stock
Exchange

Number of operating facilities(Note)

Undisclosed

Number of operating rooms(Note)

Undisclosed

Relationships with the Fund and/or the Asset Management Company and the Seller
CapitalNeither the Fund nor the Asset Management Company has any notable capital
relationship with the said company. In addition, any persons or companies associatedwith the Fund or the Asset Management Company have no notable capital
relationship with those associated with the relevant company.

Personal

Neither the Fund nor the Asset Management Company has any notable personal
relationship with the said company. In addition, any persons or companies associatedwith the Fund or the Asset Management Company have no notable personal
relationship with those associated with the relevant company.

Transactions

Neither the Fund nor the Asset Management Company has any notable transactions
with the said company. In addition, any persons or companies associated with theFund or the Asset Management Company have no notable transactions with those
associated with the relevant company.

Related Party
Status

The said company does not fall under a related party of either the Fund or the AssetManagement Company. In addition, the persons or companies associated with thesaid company do not fall under related parties of either the Fund or the AssetManagement Company.

(Note) As the “number of operating facilities” and the “number of operating rooms” are not disclosed by the operator, this information is undisclosed.

－ １８ －

7.

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

8.

Transactions with Related Parties
There are no transactions with related parties.

9.

Form of Payment, etc.
(1) Form of Payment
Regarding the Acquisition, on the scheduled date of acquisition, the Fund will pay the seller the entire purchaseprice of the Asset to be Acquired in a lump sum by using cash on hand and borrowings.
In addition, regarding the Disposition, on the scheduled date of disposition, the Fund will receive from thetransferee the sale price of the Asset to be Disposed of. The Fund plans to use the cash obtained through the saleof the Property for portfolio management, including the repayment of borrowings and the acquisition ofproperties.
(2)Impact on the Financial Position of the Fund in Case of a Failure to Fulfill Our Forward Commitment
Each 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.
Defined as purchase and sale agreements or similar contract which are signed one month or more in advanceof the actual date on which the purchase price is paid and the property is transferred to the purchaser.

(Note)

1)

2)

Where there is material breach of terms of the sales agreement by the seller or buyer (hereinafter suchseller or buyer shall be referred to as the “violating party”), the non-violating party may cancel theagreement by written notice to the violating party. In such a case, the non-violating party may require theviolating party to pay a penalty charge that is equivalent to 20% of the sale price. Even if the damage
suffered due to the cancellation exceeds an amount that is equivalent to 20% of the sale price, neither party
may request an increase of the penalty charge. On the other hand, even if the damage suffered due to thecancellation fails to reach an amount that is equivalent to 20% of the sale price, neither party may request adecrease of the penalty charge.
Where any of sales based on the other three agreements is not conducted, any non-violating party may
cancel the agreement by written notice to the violating party. In such a case, neither party may demand any
compensation for the damage from the other party.

10. Schedule for the Transaction
March 17, 2023

Conclusion of a purchase agreement for the acquisition of the Asset
Conclusion of sale agreements for the dispositions of the Assets

May 31, 2023

Acquisition of the Asset to be Acquired
Dispositions of the Assets to be Disposed of－ １９ －

11.

OutlookAs the effect of the Transaction on the operating status of the entire portfolio for the fiscal period ending August2023 (March 1, 2023 to August 31, 2023) is immaterial, there is currently no change in the outlook for the fiscal period
ending August 2023. In addition, the profits on sale, which will be generated from the Transaction in the fiscal period
ending August 2023, will be directed to internal reserves with the intention of raising the distribution level or stabilizing
future distributions, while considering the future management status of the existing portfolio and others.

－ ２０ －

12. Appraisal Summary(1)Assets to be Acquired
Property Name
Appraisal Value
Appraiser
Appraisal Date

SOMPO CARE La vie Re Residence Yoga
¥3,390,000,000
Japan Valuers Co., Ltd.
March 1, 2023

(Yen)
Amount orPercentage

Item
Capitalization Approach Price

3,390,000,000

Price Calculated by the Direct Capitalization
Approach(1)Operating Income
Total Potential Income, sum of (a) to(d)(a)Rental Income including Common
Service Expenses(b) Utilities Costs Income(c)Parking Lot Income(d)Other Income
Losses due to Vacancies, etc.
Bad Debt Loss
(2)Operating Expenses
Maintenance Costs
Utilities Costs
Repair Costs

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Property Management Fees
Advertisement for Leasing Costs, etc.
Taxes

Undisclosed
Undisclosed
Undisclosed

Insurance Premium

Undisclosed(7)Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach

190,409,799
Undisclosed
184,112,951-%
3,340,000,000

Terminal Capitalization Rate-%

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

Undisclosed

4.4%

Ratio of Building(Undisclosed)

Undisclosed

Discount Rate

Cost Approach Price
Ratio of Land

Determined by associating the price calculated by the direct
capitalization approach with the price calculated by thediscounted cash flow approach

3,430,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Other Expenses(3) Net Operating Income from Leasing
Business((1)-(2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6)Net Cash Flow((3)+(4)-(5))

Grounds

Calculated in consideration of the property’s local and specificcharacteristics, referring to the yields of transactions ofsurrounding properties and other factors

3,210,000,000
71%
29%
The property is a serviced senior residence in Setagaya Ward, Tokyo, and the neighborhood and surroundingarea is a residential area with many detached houses and apartment buildings. In this area, the land is a threeway lot with a large scale, and has high utilization efficiency as a residential site including health care facilities.
In addition, the building has been properly maintained and repaired, and is expected to have stable occupancy
in the future. Taking the above factors into consideration, the appraisal value was determined by focusing on
the income value that appropriately reflects the investment profitability value.

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 a breach ofconfidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.
Therefore, the information is not disclosed.

－ ２１ －

Property Name
Appraisal Value
Appraiser
Appraisal Date

Grapes Tsujido Nishi-Kaigan¥2,290,000,000
Japan Valuers Co., Ltd.
March 1, 2023

(Yen)
Amount orPercentage

Item
Capitalization Approach Price

2,290,000,000

Price Calculated by the Direct Capitalization
Approach(1)Operating Income
Total Potential Income, sum of (a) to(d)(a)Rental Income including Common
Service Expenses(b)Utilities Costs Income(c)Parking Lot Income(d)Other Income
Losses due to Vacancies, etc.
Bad Debt Loss
(2)Operating Expenses
Maintenance Costs
Utilities Costs
Repair Costs

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Property Management Fees
Advertisement for Leasing Costs, etc.
Taxes

Undisclosed
Undisclosed
Undisclosed

Insurance Premium

Undisclosed(7)Capitalization Rate
Price Calculated by the Discounted Cash Flow
Approach

140,202,584
Undisclosed
133,205,107-%
2,270,000,000

Terminal Capitalization Rate-%

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value(Undisclosed)

Undisclosed

4.9%

Ratio of Building(Undisclosed)

Undisclosed

Discount Rate

Cost Approach Price
Ratio of Land

Determined by associating the price calculated by the direct
capitalization approach with the price calculated by thediscounted cash flow approach

2,310,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Other Expenses(3) Net Operating Income from Leasing
Business((1)-(2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6)Net Cash Flow((3)+(4)-(5))

Grounds

Calculated in consideration of the property’s local and specificcharacteristics, referring to the yields of transactions ofsurrounding properties and other factors

1,460,000,000
43%
57%
The property is a serviced senior residence in Fujisawa City, Kanagawa Prefecture, and the neighborhood andsurrounding area is a residential area with many mid-rise apartment buildings on large lots. In this area, theland is a large, well-shaped lot, and has high utilization efficiency as a residential site including health carefacilities. In addition, the building has been properly maintained and repaired, and is expected to have stable
occupancy in the future. Taking the above factors into consideration, the appraisal value was determined byfocusing on the income value that appropriately reflects the investment profitability value.

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 a breach ofconfidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.
Therefore, the information is not disclosed.

－ ２２ －

Property Name
Appraisal Value
Appraiser
Appraisal Date

SOMPO CARE Sompo no ie Omori-Nishi¥1,840,000,000
Japan Valuers Co., Ltd.
March 1, 2023
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

1,840,000,000

Price Calculated by the Direct Capitalization
Approach(1)Operating Income
Total Potential Income, sum of (a) to(d)(a)Rental Income including Common
Service Expenses(b)Utilities Costs Income(c)Parking Lot Income(d)Other Income
Losses due to Vacancies, etc.
Bad Debt Loss
(2)Operating Expenses
Maintenance Costs
Utilities Costs
Repair Costs

Insurance Premium

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed(7)Capitalization Rate

Undisclosed
Undisclosed
Undisclosed
Undisclosed
68,865,069
Undisclosed
67,221,577
Calculated in consideration of the property’s local and specificcharacteristics, referring to the yields of transactions ofsurrounding properties and other factors

1,800,000,000

Discount Rate

3.4%

Terminal Capitalization Rate

3.8%

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value(Undisclosed)

Undisclosed

3.6%

Price Calculated by the Discounted Cash Flow
Approach

Ratio of Building(Undisclosed)

Undisclosed

Other Expenses(3) Net Operating Income from Leasing
Business((1)-(2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6)Net Cash Flow((3)+(4)-(5))

Cost Approach Price
Ratio of Land

Determined by associating the price calculated by the direct
capitalization approach with the price calculated by the discounted
cash flow approach

1,870,000,000

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Property Management Fees
Advertisement for Leasing Costs, etc.
Taxes

Grounds

Calculated in consideration of the property’s local and specificcharacteristics, referring to the yields of transactions ofsurrounding properties and other factors
Calculated with consideration of the above capitalization rate andother factors such as the probable future movement of the yield
on investment

1,310,000,000
85.0%
15.0%
The property is a paid nursing home in Ota Ward, Tokyo. The neighborhood and surrounding area is a quiet
residential area with mainly apartment buildings and detached houses, as well as nursing homes. In this area,
the land is a corner lot of a large scale, and has high utilization efficiency as a residential site including ahealthcare facility.In addition, the building has been properly maintained and repaired, and is expected to havestable occupancy in the future. Taking the above factors into consideration, the appraisal value was determinedby focusing on the income value that appropriately reflects the investment profitability value.

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 a breach ofconfidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.
Therefore, the information is not disclosed.

－ ２３ －

Property Name
Appraisal Value
Appraiser
Appraisal Date

SOMPO CARE La vie Re Residence Shonan Tsujido¥1,580,000,000
Japan Valuers Co., Ltd.
March 1, 2023
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

1,580,000,000

Price Calculated by the Direct Capitalization
Approach(1)Operating Income
Total Potential Income, sum of (a) to(d)(a)Rental Income including Common
Service Expenses(b)Utilities Costs Income(c)Parking Lot Income(d)Other Income
Losses due to Vacancies, etc.
Bad Debt Loss
(2)Operating Expenses
Maintenance Costs
Utilities Costs
Repair Costs
Property Management Fees
Advertisement for Leasing Costs, etc.
Taxes
Insurance Premium
Other Expenses(3) Net Operating Income from Leasing
Business((1)-(2))(4) Profit through Management of
Temporary Deposits, etc.
(5) Capital Expenditure Reserve(6)Net Cash Flow((3)+(4)-(5))(7)Capitalization Rate

Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed
Undisclosed

Undisclosed
Undisclosed
73,082,404
Undisclosed
69,353,573
Calculated in consideration of the property’s local and specificcharacteristics, referring to the yields of transactions ofsurrounding properties and other factors

1,550,000,000

Terminal Capitalization Rate

4.5%

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value(Undisclosed)

Undisclosed

4.1%

Ratio of Building(Undisclosed)

Undisclosed
Undisclosed
Undisclosed
Undisclosed

Discount Rate

Cost Approach Price
Ratio of Land

Determined by associating the price calculated by the direct
capitalization approach with the price calculated by thediscounted cash flow approach

1,610,000,000

4.3%

Price Calculated by the Discounted Cash Flow
Approach

Grounds

Calculated in consideration of the property’s local and specificcharacteristics, referring to the yields of transactions ofsurrounding properties and other factors
Calculated with consideration of the above capitalization rate
and other factors such as the probable future movement of theyield on investment

1,060,000,000
57%
43%
The property is a serviced senior residence in Chigasaki City, Kanagawa Prefecture, and the neighborhood ismainly a residential area with apartment buildings. In this area, the land is a two-sided lot with a large scale, andhas high utilization efficiency as a residential site including health care facilities. In addition, the building has
been properly maintained and repaired, and is expected to have stable occupancy in the future. Taking the above
factors into consideration, the appraisal value was determined by focusing on the income value thatappropriately reflects the investment profitability value.

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 a breach ofconfidentiality obligations, etc., and ultimately may be detrimental to the interests of unitholders.
Therefore, the information is not disclosed.

－ ２４ －

(2)Assets to be Disposed of
Property Name
Appraisal Value
Appraiser
Appraisal Date

NMF Tenjin-Minami Building¥3,030,000,000
Japan Real Estate Institute
August 31, 2022
(Yen)
Amount orPercentage

Item
Capitalization Approach Price

Grounds

3,030,000,000

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
Maintenance Costs

3,050,000,000

Calculated by associating the price calculated by the direct capitalization
approach with the price calculated by the discounted cash flow approachCalculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

196,679,000
212,100,000
15,421,000

Calculated based on appropriate rent levels recognized as stable over the
medium to long term
Calculated on the assumption of a stable occupancy rate overthe medium to long term

56,598,000
14,500,000

Utilities Costs

11,700,000

Repair Costs
5,447,000
Property Management Fees

3,600,000

Advertisement for Leasing Costs,
etc.
Taxes
Insurance Premium
Other Expenses

2,474,000
18,471,000
256,000
150,000(3) Net Operating Income from
Leasing Business(NOI=(1)-(2) )(4) Profit through Management of
Temporary Deposits, etc.

Calculated with reference to the actual amounts in past fiscal years and costlevels for similar properties
Calculated with reference to the actual amounts in past fiscal years and otherfactors
Recorded with consideration of the actual amounts in past fiscal years, the costlevel of similar properties, the annual average amount of repair and renewal
costs given in the engineering report and other factors
Calculated with reference to the current compensation fee rate, compensation
fee rates adopted to similar properties and other factors
Recorded the annual average amount calculated based on assumed turnover
period of lessee
Calculated based on data related to taxes
Recorded based on the judgement that the actual amount is reasonable
Recorded lease-related expenses, etc.

140,081,000
1,625,000

Calculated based on an investment yield of 1.0%

(5) Capital Expenditure Reserve

10,567,000

Calculated based on the assumption of average allocations each period, capital
expenditure levels at similar properties, the building’s age, the annual average
repair and renewal costs given in the engineering report and other factors(6)Net Cash Flow
(NCF=(3)+(4)-(5))

131,139,000(7)Capitalization Rate

4.3%

Price Calculated by the Discounted Cash
Flow Approach
Discount Rate

3,010,000,000
4.1%

Terminal Capitalization Rate
4.4%
Cost Approach Price
Ratio of Land
Ratio of Building
Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Calculated in comprehensive consideration of the property’s conditions oflocation, building and other conditions

Calculated with comprehensive consideration of the property’s specificcharacteristics with reference to yields on investments in similar properties
Calculated based on a comprehensive consideration of factors such as the yieldon similar property transactions, the probable future movement of the yield
on investment, risks of the property as an investment, general forecasts of theeconomic growth rate

2,930,000,000
76.1%
23.9%
The Watanabe-dori district, where the property is located, is close to the Tenjin area and has excellent
accessibility to the city center. The building has specifications and facilities that meet the needs of recent
tenants, and the leasable area on each floor can be subdivided into smaller sections, making it easy to makeeffective use of the space.
The appraisal value was determined in light of the above factors.

－ ２５ －

Property Name
Appraisal Value
Appraiser
Appraisal Date

PRIME URBAN Otsuka¥767,000,000
Daiwa Real Estate Appraisal Co., Ltd.
August 31, 2022
(Yen)
Amount orPercentage

Item

Grounds
Calculated by evaluating the capitalization approach price with the direct

Capitalization Approach Price

767,000,000

capitalization approach, using the capitalization approach price calculated by
the discounted cash flow approach as the baseline.

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
Maintenance Costs
Utilities Costs

780,000,000
45,716,968
48,246,320
2,529,352
10,627,701
1,734,000
514,602

Repair Costs

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

Calculated based on actual amounts in the past fiscal years

2,061,632

Calculated with reference to the level of similar properties

2,291,800
73,277

Calculated based on actual amounts in the fiscal year 2022
Recorded based on the judgement that the actual amount is reasonable

350,000

Calculated based on actual amounts

35,089,267
49,0484,727,668

Calculated based on an investment yield of 1.0%
Calculated in consideration of the annual average renewal fees given in theengineering report and CM fee

30,410,647
3.9%
762,000,000
3.7%

4.1%

Matters Noted in Reconciliation ofIndicated Value and Determinationof Appraisal Value

Recorded based on the judgment that the current contract price is reasonable

1,357,851

Terminal Capitalization Rate

Cost Approach Price
Ratio of Land
Ratio of Building

Calculated based on appropriate rent levels recognized as stable over the
medium to long term.
Calculated on the assumption of a stable occupancy rate overthe medium to long term

Calculated repair cost based on annual average amount in the Engineering
Report.
Calculated tenant replacement cost, considering the replacement ratio andvacancy ratio.
Recorded based on the judgment that the current contract is reasonable

2,244,539
Property Management Fees
Advertisement for Leasing Costs,
etc.
Taxes
Insurance Premium

Calculated by reducing stable medium-to long-term net cash
flow based on the capitalization rate

Calculated with comprehensive consideration of the property’s specificcharacteristics with reference to yields on investments in similar properties
Calculated, combining comparison with the transaction cases of similar
properties and a method where the yield of the financial asset is calculatedwith its specific characteristics taken into account, and also referring toinvestors’ opinions

593,000,000
69.5%
30.5%
We determined that the property is located in the same supply and demand zone as the residential and mixed(residential and commercial) areas centered on Otsuka Station on the JR Yamanote Line, within walking distancefrom Sugamo Station on the Yamanote Line and Shin-Otsuka Station on the Tokyo Metro Marunouchi Line.
Considering 5 the property’s competitiveness in the rental housing market and the real estate market, we judgedthat the best use would be keeping the property as a medium-rise condominium.
While demanders in the real estate market, in which the property is involved, are assumed to be mainly investors,
the demanders show a strong tendency to make transactions with a focus on the property’s profitability andinvestment profitability. Therefore, we decided that the capitalization approach price would relatively be moreconvincing than the cumulative price in the Transaction.

－ ２６ －

Exhibits
Exhibit 1 Overview of the Portfolio after the Transaction
Exhibit 2 Photos and Maps of the Asset to be Acquired*Nomura Real Estate Master Fund, Inc.’s website: https://www.nre-mf.co.jp/en/－ ２７ －

Exhibit 1

Overview of the Portfolio after the Transaction(¥ million)
Area
SectorGreater Tokyo
Area

Other Areas(Note1)(Anticipated) Total

Investment Ratio

Acquisition Price(%)(by Sector)(Note2)

Office403,585

67,380470,965

42.6

Retail109,888

67,890177,779

16.1

Logistics

220,472

3,460

223,932

20.3

191,052

30,681

221,733

20.1

Hotels

―

6,250

6,250

0.6

Others

4,900

―

4,900

0.4

(Anticipated)
Total Acquisition
Price (by Area)

929,898

175,661

1,105,560

100.0

15.9

100.0

Residential(including healthcare
facilities)

Investment Ratio (%)(Note 2)

84.1

(Note1) “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.
(Note2) “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 2Exterior view and guide map of properties scheduled to be acquired
SOMPO CARE La vie Re Residence Yoga

Grapes Tsujido Nishi-Kaigan

SOMPO CARE Sompo no ie Omori-Nishi

SOMPO CARE La vie Re Residence Shonan Tsujido