August 23, 2019
To All Concerned Parties
REIT Securities Issuer
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Sakura Sogo REIT Investment Corporation
Representative: Makoto Muranaka,
Executive Director:(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Contact:
Makoto Muranaka,
Representative Director andPresident
Tel:+81-3-6272-6608

Notice Concerning Debt Refinancing
Sakura Sogo REIT Investment Corporation (hereinafter the “Investment Corporation”) announces its
resolution to undertake a refinancing of short and long term borrowings (hereinafter the “DebtRefinancing”) as follows.
1.

Details of the Debt Refinancing

Classification

LenderShort term

A syndicateof lenders
arranged by
Sumitomo
Mitsui
BankingCorporation
as anarranger(Note 3)

Borrowingamount(billionyen)

4.9Interestrate(Note 1)

Baserate +
0.20%(Note 4)

Fixed/
Floating

Floating

Date ofborrowing

August30, 2019

Repayment
date

Method ofborrowing

Method ofrepayment

Security(Note 2)February28, 2020

Borrowingbased ona loanagreement
to beconcludedwith thebanks
shown inthecolumn oflenders tothe left

Bulletrepayment
at maturity

Unsecuredandunguaranteed(Note 1) Loan fees and other charges to be paid to the lenders are not included in the “Interest rate”.
(Note 2) The loan agreement will provide some financial covenants such as reserving certain amount of cash in accordance withthe financial situation of the Investment Corporation.
(Note 3) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited, Aozora Bank, Ltd.,
Resona Bank, Limited, THE NISHI-NIPPON CITY BANK, LTD., The Bank of Fukuoka, Ltd. and Sumitomo Mitsui Trust
Bank, Limited.
(Note 4) The first interest payment will be due on September 30, 2019, and subsequent interest payments will be due at the endof every month and on the principal repayment date. If a payment date is not a business day, payment will be made on
the next business day; provided, however, that if such payment date falls in the next month, payment will be made on
the immediately preceding business day. The “Base rate” applicable to the period for the calculation of the interest
payable on an interest payment date is the one-month Japanese yen Tokyo Interbank Offered Rate (TIBOR) publishedby the Japanese Bankers Association (“JBA”) TIBOR Administration as of two business days prior to the most recent
interest payment date of each interest payment date. The base rate will be reviewed on every payment date. However,if there is no base rate that corresponds to the interest calculation period, the base rate corresponding to the period
calculated based on the method defined in the agreement will apply. The first period for the calculation of the interest
payable is from August 30, 2019 to September 30, 2019. For changes in the JBA Japanese Yen TIBOR, which is thebase rate, please refer to JBA TIBOR Administration’s website (http://www.jbatibor.or.jp/rate/).

2.

Reason for the Debt Refinancing

The Debt Refinancing consists of refinancing a long-term loan of ¥4.0 billion and a short-term loan of¥0.9 billion (hereinafter “existing borrowings”) due on 30 August 2019 As announced in “ NoticeConcerning Execution of Merger Agreement by and between MIRAI Corporation and Sakura Sogo REIT
Investment Corporation” dated August 5, 2019, the Investment Corporation plans to implement anabsorption-type merger, with MIRAI Corporation (hereinafter “MIRAI”) as the surviving corporation andthe Investment Corporation as the absorbed corporation (hereinafter the “Merger”) with the effective
date being November 1, 2019, and MIRAI and the Investment Corporation have entered into a merger
agreement (hereinafter the “Merger Agreement”) dated August 5,2019.Therefore the loan term of theDebt Refinancing is only 6 months in anticipation of more beneficial refinancing based on the credit
worthiness MIRAI Corporation has if the Merger is effective.

3.

Total amount of loan proceeds, purpose of use and effective date(1) Total amount of loan proceeds: 4.9 billion yen(2) Purpose of use: Refinancing of existing borrowings(3) Disbursement date (scheduled): August 30, 20194.

Loans status after the Debt Refinancing(Unit: million yen)
BeforeIncrease(Decrease)

After

Short-Term Loans(Note 6)

900

4,900

4,000

Long-Term Loans(Note 6)28,30024,300(4,000)29,20029,200029,20029,200

0

1.96

2.04

0.08

Total Loans
Total Interest-bearing liabilities
Average remaining years(Note 7)(Note 6) Short-term loans refer to loans with a maturity period of one year or less from the date of borrowing, and long-termloans refer to loans with a maturity period of more than one year from the date of borrowing.
(Note 7) Average remaining years is calculated by weighted average remaining loan period as of August 30, 2019 based oneach remaining interest-bearing debt and remaining loan amount and is rounded to the second decimal place.

5. Future Outlook
The Debt Refinancing has been reflected in the forecast as announced in the “Notice Concerning
Forecast of Operating Results for the Fiscal Period Ending October 2019 (the Final Fiscal Period) andPayment on the Merger” dated August 5, 2019. As a result there are no revisions to forecasts for thefiscal periods ending October 2019 (from July 1, 2019 to October 31, 2019), the final fiscal period of theInvestment Corporation before the Merger and payment on the Merger to be paid instead of cash
distributions to the unitholders of the Investment Corporation if the Merger is effective.

6.

Additional Items Required to Ensure Appropriate Understanding and Judgments by Investors
Regarding Relevant Information

Concerning the risks as they chiefly pertain to the repayment of the funds, please refer to “Part 1. Fundinformation, I. Aspects of fund, 3. Investment risks” stated in the Annual Security Report submitted on March28, 2019.

Sakura Sogo REIT Investment Corporation website address: http://sakurasogoreit.com/en/