DISCLAIMER
This document has been prepared solely for the purpose of providing U.K. and Dutch
investors with certain information under Article 23 of the European Alternative Investment
Fund Managers Directive (European Directive 2011/61/EU) as implemented in theirrespective jurisdictions. Accordingly, you should not use this document for any otherpurpose.
Netherlands
The units of Mitsui Fudosan Logistics Park Inc. (“MFLP” or the “AIF”) are being marketed in
the Netherlands under Section 1:13b of the Dutch Financial Supervision Act (Wet op het
financieel toezicht, or the “Wft”). In accordance with this provision, Mitsui Fudosan Logistics
REIT Management Co., Ltd. (the “AIFM”) has notified the Dutch Authority for the Financial
Markets of its intention to offer these units in the Netherlands. The units of MFLP will not,directly or indirectly, be offered, sold, transferred or delivered in the Netherlands, except toor by individuals or entities that are qualified investors (gekwalificeerde beleggers) within
the meaning of Article 1:1 of the Wft, and as a consequence neither the AIFM nor MFLP is
subject to the license requirement pursuant to the Wft. Consequently, neither the AIFM nor
MFLP is subject to supervision of the Dutch Central Bank (De Nederlandsche Bank, “DNB”) or
the Netherlands Authority for Financial Markets (Autoriteit Financiële Markten, the “AFM”)
and this Article 23 AIFMD Prospectus is not subject to approval by the AFM. No approved
prospectus is required to be published in the Netherlands pursuant to Article 3 of theEuropean Directive 2003/71/EC (the EU Prospectus Directive) as amended and implemented
in Netherlands law. The AIFM is solely subject to limited ongoing regulatory requirements as
referred to in Article 42 of the AIFMD.
United Kingdom
Units of MFLP are being marketed in the United Kingdom pursuant to Article 59 of theUnited Kingdom Alternative Investment Fund Managers Regulations 2013. In accordancewith this provision, the AIFM has notified the Financial Conduct Authority (the “FCA”) of its
intention to offer these units in the United Kingdom.
For the purposes of the United Kingdom Financial Services and Markets Act 2000 (“FSMA”)
MFLP is an unregulated collective investment scheme which has not been authorized by the
FCA.
Accordingly, any communication of an invitation or inducement to invest in MFLP may bemade to persons in the United Kingdom only if the communication falls within one or moreof the categories of exempt financial promotions under the Financial Services and Markets

Act (Financial Promotion) Order 2005 (the “Order”), such as financial promotions
communicated to:(1) persons who are investment professionals, as defined in article 19 of the Order;(2) persons who are certified high net worth individuals, as defined in article 48 of theOrder;(3) persons who are high net worth companies, unincorporated associations, or otherentities listed in article 49 of the Order; or(4) persons who are certified sophisticated investors, as defined in article 50 of theOrder,
or if the communication is made to persons to whom such an invitation or inducement mayotherwise lawfully be communicated. The distribution of this document to any person in the
United Kingdom in circumstances not falling within one of the above categories is not
permitted and may contravene FSMA. No person falling outside those categories should
treat this document as constituting a promotion to him, or act on it for any purposes
whatever.
In relation to each Member State of the European Economic Area which has implemented
the Prospectus Directive (each, a Relevant Member State), with effect from and including
the date on which the Prospectus Directive is implemented in that Relevant Member State(the Relevant Implementation Date) no offer of units of MFLP may be made to the public inthat Relevant Member State except in circumstances falling within Article 3(2) of theProspectus Directive, provided that no such offer of units shall require the publication of aprospectus pursuant to Article 3 of the Prospectus Directive, or a supplement to aprospectus pursuant to Article 16 of the Prospectus Directive.
For the purposes of this provision, the expression “an offer of units to the public” in relation
to any units in any Relevant Member State means the communication in any form and by
any means of sufficient information on the terms of the offer and the units to be offered so
as to enable an investor to decide to purchase or subscribe the units, as the same may bevaried in that Member State by any measure implementing the Prospectus Directive in that
Member State, the expression “Prospectus Directive” means Directive 2003/71/EC (andamendments thereto, including the 2010 PD Amending Directive, to the extent
implemented in the Relevant Member State), and includes any relevant implementing
measure in the Relevant Member State and the expression “2010 PD Amending Directive”
means Directive 2010/73/EU.

2

Article 23 (1)(a)Objectives of the

Mitsui Fudosan Logistics Park Inc. (“MFLP” or the “AIF”) is a REIT focusing primarily on logistics

AIF

facilities and aims to secure stable earnings over the medium to long term.

Investment strategy

The investment strategy of MFLP aims to secure stable earnings over the medium to longterm. In order to do this, it makes investments emphasizing (i) locations most suitable forlogistics facilities (ii) balance, acquiring a wide variety of leading-edge logistics facilities
operated by its sponsor, Mitsui Fudosan Co., Ltd. and (iii) quality, focusing on Mitsui Fudosan
Logistics Park-branded leading-edge logistics facilities while (iv) managing its finances stably,and securing stable distribution levels and efficient cash management for distributions
through continuous distributions in excess of earnings based on cash flow.

Types of assets theReal estate, trust beneficiary interests in real estate, real estate securities, specified assets

AIF may invest in

and other assets.

Techniques it may

MFLP invests primarily in logistics facilities with the features mentioned below, with aemploy and allparticular focus on Mitsui Fudosan Logistics Park-branded facilities (leading-edge logistics

associated risks

facilities with Mitsui Fudosan quality). The bulk of its properties are leading-edge logistics
facilities developed by Mitsui Fudosan. Additional investments will be made focusing on thefollowing characteristics: (i) location with good access to consumption areas, production
bases, and traffic infrastructure and a ready supply of workers, (ii) building size that enables
concentration and integration of logistics functions, with features that enable efficient storage
and cargo handling procedures, (iii) truck berths, slopes, rampways and vertical conveyors
that offer sufficient conveying functionality, (iv) considerations for the external environment
as well as the interior environment (e.g., amenities for employees) and (v) structural andfacility safety against natural disasters such as seismic isolation or quake-resistance, as well as
business continuity plan features ( e.g., emergency power generators). In particular, will
mainly invest in leading-edge logistics facilities that largely have a floor area of at least 10,000
m2, column span of at least 10 m and effective ceiling height of at least 5.5m. On an
acquisition price basis, MFLP expects 70% of its portfolio will be located in the Tokyo
metropolitan area or Kansai area; logistics facilities will make up 80% of the portfolio whileother industrial real estate will make up the remainder.
The principal risks with respect to investment in MFLP are as follows:

any adverse conditions in the Japanese economy could adversely affect MFLP;

MFLP may not be able to acquire properties to execute the growth and investment
strategy in a manner that is accretive to earnings;

illiquidity in the real estate market may limit the ability to grow or adjust theportfolio;3

the past experience of MFLP’s sponsor, Mitsui Fudosan, or the AIFM in the Japanesereal estate market is not an indicator or guarantee of future results;

MFLP’s reliance on Mitsui Fudosan Group, Mitsui Fudosan Logistics REIT Management
Co., Ltd. and other third service providers could have a material adverse effect on
business;there are potential conflicts of interest between MFLP and Mitsui Fudosan Group as
well as the AIFM;

MFLP’s revenues largely comprise leasing revenues from the portfolio properties,
which may be negatively affected by vacancies, decreases in rent, and late or missed
payments by tenants;

MFLP faces significant competition in seeking tenants and it may be difficult to findreplacement tenants;

increases in prevailing market interest rates may increase interest expense and may
result in a decline in the market price of MFLP’s units;

MFLP may suffer large losses if any of the properties incurs damage from a natural or
man-made disaster;most of the properties in the portfolio are concentrated in the Tokyo metropolitan
area and are logistics facilities;



any inability to obtain financing for future acquisitions could adversely affect thegrowth of the portfolio;



MFLP’s failure to satisfy a complex series of requirements pursuant to Japanese tax
regulations would disqualify MFLP from certain taxation benefits and significantly
reduce the cash distributions to the unitholders; andownership rights in some of MFLP’s properties may be declared invalid or limited.

In addition, MFLP is subject to the following risks:risks related to increasing operating costs;

risks related to MFLP’s dependence on the efforts of the AIFM’s key personnel;risks related to the restrictive covenants under debt financing arrangement;risks related to entering into forward commitment contracts;risks related to third party leasehold interests in the land underlying MFLP properties;risks related to holding the property in the form of co-ownership interests (kyōyūmochibun);risks related to holding the property through trust beneficiary interests;risks related to properties not in operation (including properties under development);risks related to the defective title, design, construction or other defects or problems
in the properties;risks related to impairment losses relating to the properties;4

risks related to tenant leasehold deposits and/or security deposits;risks related to tenant’s default as a result of financial difficulty or insolvency;risks related to the insolvency of master lessors;

risks related to the insolvency of a property seller following MFLP’s purchase of aproperty;risks related to relying on expert appraisals and engineering, environmental andseismic reports as well as industry and market data;risks related to the presence of hazardous or toxic substances in the properties, orthe failure to properly remediate such substances;

risks related to strict environmental liabilities for the properties;risks related to the amendment of applicable administrative laws and local
ordinances;

risks related to holding Japanese anonymous association (tokumei kumiai) interests;risks related to investments in trust beneficiary interests;risks related to the tight supervision by regulatory authorities and compliance withapplicable rules and regulations;risks related to tax authority disagreement with the AIFM’s interpretations of theJapanese tax laws and regulations;risks related to being unable to benefit from reductions in certain real estate taxes
enjoyed by qualified J-REITs;



risks related to changes in Japanese tax laws; andrisks related to investment in real estate outside Japan.

Any applicable

MFLP is subject to investment restrictions under Japanese laws and regulations (e.g., the Act

investment

on Investment Trusts and Investment Corporations (the “ITA”), the Financial Instruments andrestrictions

Exchange Act (the “FIEA”)) as well as its articles of incorporation.

MFLP must invest primarily in specified assets as defined in the ITA. Specified assets include,
but are not limited to, securities, real estate, leaseholds of real estate, surface rights (chijō-ken)(i.e., right to use land for the purpose of having a structure on it) or trust beneficiary interests
for securities or real estate, leaseholds of real estate or surface rights. A listed J-REIT must invest
substantially all of its assets in real estate, real estate-related assets and liquid assets asprovided by the listing requirements. Real estate in this context includes, but is not limited to,real estate, leaseholds of real estate, surface rights, and trust beneficiary interests for theseassets, and real estate-related assets in this context include, but are not limited to, anonymous
association (tokumei kumiai) interests for investment in real estate. Pursuant to the ITA,
investment corporations may not independently develop land for housing or to constructbuildings, but may outsource such activities in certain circumstances.
Article 23(4)(a)5

Circumstances in

MFLP may take out loans or issue long- or short-term corporate bonds for the purpose ofwhich the AIF may

investing in properties, conducting repairs and paying distributions, as well as for operating

use leverage

capital and repaying debt (including security deposits, other debt and bonds).

The types andLoans or investment corporation bonds.

sources of leverage

Currently, all of MFLP’s outstanding long- and short-term loans are unsecured andpermitted andunguaranteed.

associated risks

Loans or investment corporation bonds in which MFLP enters or MFLP issues may be subject
to restrictive covenants in connection with any future indebtedness that may restrict
operations and limit its ability to make cash distributions to unitholders, to dispose ofproperties or to acquire additional properties. Furthermore, if MFLP were to violate such
restrictive covenants, such as with regard to loan-to-value ratios, lenders may be entitled torequire MFLP to collateralize portfolio properties or demand that the entire outstandingbalance be paid.
In the event of an increase in interest rates, to the extent that MFLP has any debt withunhedged floating rates of interest or MFLP incurs new debt, interest payments may increase,which in turn could reduce the amount of cash available for distributions to unitholders.
Higher interest rates may also limit the capacity for short- and long-term borrowings, which
would in turn limit MFLP’s ability to acquire properties, and could cause the market price of
the units to decline.

Any restrictions on

The maximum amount of each loan and corporate bond issuance will be 1 trillion yen, and theleverageaggregate amount of all such debt will not exceed 1 trillion yen.

Any restrictions on

No applicable arrangements.

collateral and asset
reuse arrangements
Maximum level of

As a general rule, MFLP will maintain a conservative loan-to-value, or LTV, ratio, which is theleverage which theratio of (x) the aggregate principal amount of borrowings and investment corporation bonds

AIFM is entitled toto (y) the total assets of MFLP’s portfolio. MFLP has set 60% as its maximum LTV ratio;

employ on behalf of

however, MFLP’s LTV ratio may fluctuate as a result of property acquisitions or other events.

the AIF
Article 23(1) (b)Procedure by which

Amendment of the articles of incorporation. Amendment requires a quorum of a majority of

the AIF may change

the total issued units and at least a two-thirds vote of the voting rights represented at theits investment

meeting. Unitholders should note, however that under the ITA and MFLP’s articles ofstrategy /incorporation, unitholders who do not attend and exercise their voting rights at a generalinvestment policy

meeting of unitholders are deemed to be in agreement with proposals submitted at themeeting, except in cases where contrary proposals are also being submitted.

6Additionally, the guidelines of the AIFM, which provide more detailed policies within MFLP’s
overall investment strategy and policy, can be modified without such formal amendment of
the articles of incorporation.
Article 23(1) (c)Description of the

MFLP has entered into the following agreements with its sponsor, Mitsui Fudosan Co., Ltd.:

main legal

Trademark Licensing Agreement;

implications of the

Logistics Management Agreement;

contractual

Agreements for Entrustment of Control and Coordination Services;

relationship enteredProperty Management Agreement;

into for the purpose

Purchase and sale agreements regarding certain MFLP assets originally held by theof investment,

sponsor, and other contracts with regard to such assets.

includingjurisdiction,

All of the above agreements are governed by Japanese law.

applicable law, andthe existence or not

MFLP is not involved in or threatened by any legal arbitration, administrative or otherof any legal

proceedings, the results of which might, individually or in the aggregate, be material.

instruments
providing for therecognition andenforcement of
judgments in the
territory where the
AIF is established
Article 23(1) (d)The identity of the AIFM (Asset Manager): Mitsui Fudosan Logistics REIT Management Co., Ltd.

AIFM, AIF's

 Auditor: KPMG AZSA LLC

depository, auditor

 Institutional administrator agent and Custodian: Sumitomo Mitsui Trust Bank, Limited

and any other Accounting administrator agent: Heiseikaikeisha Tax Corporation

service providers

 Transfer Agent: Sumitomo Mitsui Trust Bank, Limited

and a description ofService providers owe contractual obligations under their respective agreements with the AIF

their duties and theor AIFM, as the case may be. In addition, the FIEA provides that an asset manager owes a J-

investors' rights

REIT a fiduciary duty and must conduct its activities as the asset manager in good faith. The

thereto

FIEA also prohibits an asset manager from engaging in certain specified conduct, including
entering into transactions outside the ordinary course of business or with related parties of
the asset manager that are contrary to or violate the J-REIT’s interests. Pursuant to the ITA,
the unitholders have the right to approve the execution or termination of the asset
management agreement at a general meeting of unitholders.

Article 23(1) (e)7Description of how

Not applicable.

the AIFM complies
with therequirements tocover professional
liability risks (ownfunds / professional
indemnity
insurance)
Article 23(1) (f)Description of any

Not applicable. There is no delegation of such functions beyond the AIFM, which isdelegated

responsible for portfolio and risk management, and the Custodian, which is responsible formanagement

safekeeping activities.

function such as
portfolio
management or risk
management and of
any safekeeping
function delegatedby the depositary,
the identification of
the delegate andany conflicts ofinterest that may
arise from suchdelegations
Article 23(1) (g)Description of the

MFLP shall evaluate assets in accordance with its Article of Incorporation. The methods and

AIF’s valuation

standards that MFLP uses for the evaluation of assets shall be based on the Regulations

procedure andConcerning the Calculations of Investment Corporations, as well as the Regulations

pricing

Concerning Real Estate Investment Trusts and Real Estate Investment Corporations and othermethodology,

regulations stipulated by ITA, in addition to Japanese GAAP. J-REITs may only use theincluding thevaluation methods prescribed in the rules of the Investment Trusts Association, Japan, which

methods used inemphasize market price valuation.

valuing hard-tovalue assets
Article 23(1) (h)8Description of the

MFLP seeks to manage the capital resources and liquidity sources to provide adequate funds

AIF’s liquidity risk

for current and future financial obligations and other cash needs and acquisitions. MFLP

management,

manages liquidity risk by implementing a strategic cash management plan, varying repayment

includingterms of its loans and diversifying lenders and financing methods. As MFLP is a closed-end

redemption rights ininvestment corporation, unitholders are not entitled to request the redemption of theirnormal andinvestment.

exceptional
circumstances andexisting redemption
arrangements withinvestors
Article 23(1) (i)Description of all

fees, charges and

The articles of incorporation provide that the AIF may pay its executive director and each of

expenses and aits supervisory directors up to 700,000 yen per month. The board of directors is responsible

maximum amountfor determining a reasonable compensation amount for the executive director and each ofwhich is directly /the supervisory directors.

Compensation:

indirectly borne by
the investors

Asset Management Fee:

The AIF will pay the AIFM an asset management fee as follows:
Management Fee 1 – The amount equivalent to up to 0.1% per annum multiplied by total
assets will be payable.
Management Fee 2 – The amount equivalent to up to 5.5% of operating income prior todeduction of Management Fees 1, 2 and 3, consumption and other tax not subject todeduction and depreciation, as calculated on each closing date will be payable.
Management Fee 3 – The amount equivalent to up to 0.001% of (x) the square of income
before income taxes (provided, however, that if there is a carry forward loss, the amount after
compensating for such amount) prior to deduction of Management Fees 1, 2 and 3,
consumption and other tax not subject to deduction and depreciation, as calculated on eachclosing date will be payable, divided by (y) the number of units issued and outstanding during
the relevant period.
Acquisition/Disposition management Fee – In the event that Real Estate is newly
acquired/disposed of, compensation equivalent to up to the total amount of theacquisition/disposition price of said Real Estate multiplied by 0.5% will, in principle, be

9payable, provided, however, that the applicable rate in a transaction with a related party willbe 0.25%.
Custodian Fee:

A monthly fee calculated as follows:
The amount of total assets as indicated at the end of the previous period x 0.03% ÷ 12, exceptthat during our first fiscal period, this will be calculated based on total assets as of the end of
the relevant monthInvestor Registry Administrator Fee (Standard Fee):

Standard fees are for services such as the preparation, maintenance and storage of MFLP’s
unitholder register; and preparation of materials concerning end-of-period unitholder
statistical data (number of unitholders, total units held, distribution per geographic area).
Monthly standard fees are determined by calculating one sixth of the total number ofunitholders falling under each section as shown below. There is a minimum monthly fee of¥210,000.
Up to 5,000....................................................

86 yen5,001 to 10,000..............................................

73 yen10,001 to 30,000............................................

63 yen30,001 to 50,000............................................

54 yen50,001 to 100,000..........................................

47 yen100,001 or more............................................

40 yenThe rate for removal of a unitholder from the registry is 50 yen per person.
MFLP also pays certain other fees in addition to the standard fee in connection with theadministration and handling of distributions (minimum of 350,000 yen per distribution) andother shareholder related functions.


Auditor Fee:

MFLP may pay the accounting auditor up to 20 million yen per fiscal period. The board of
directors is responsible for determining the compensation amount for the accounting auditor.


Accounting Service Fee:

A monthly fee calculated as follows:(a) Regular fee: The sum of one twelfth of a yearly flat fee of up to 20 million yen and an
amount equal to a variable amount of up to 100,000 yen multiplied by the number ofproperties at the end of the month.
(b) Fee for a month when services are provided with respect to preparing a Depreciable
Assets Tax Notification: The sum of one twelfth of a yearly flat fee of up to 20 million

10yen, an amount equal to a variable amount of up to 100,000 yen, and an amountequal to a variable amount of up to 50,000 yen multiplied by the number ofproperties at the end of December.
Institutional Administrator Agent Fee:

A flat fee of up to 500,000 yen per month, and a fee of up to 2 million yen for services related
to each the meeting of unitholders.


Miscellaneous

MFLP also pays fees to certain service providers in connection with, among other matters:oAdministration of special accounts;o

REIT office management;oProperty control;oProperty transfer;oReferral of tenants;oProperty maintenance, improvement and other related services;o

Tax administration; andoAdministration for corporate bonds governance.

Article 23(1) (j)Description of theUnder Article 77 paragraph 4 of the ITA, which applies the requirements of Article 109

AIFM's procedure to

paragraph 1 of the Companies Act to investment corporations, investment corporations are

ensure fairrequired to treat unitholders equally depending on the number and content of units held. In

treatment ofaddition, upon liquidation, the allotment of residual assets to unitholders is required to beinvestors andmade equally depending on the number units held under Article 77 paragraph 2 item 2 anddetails of any

Article 158 of the ITA.

preferential
treatment received
by investors,
including detailingthe type ofinvestors and theirlegal or economic
links with the AIF or
AIFM
Article 23(1) (k)The latest annual

Given that MFLP is a newly established fund, no such report is available. MFLP’s first semi-

report referred to inannual report will be prepared in accordance with Article 22 of the AIFMD, and will be

Article 22(1)available at the AIFM ’s office located at 8-7, Ginza 6-chome, Chuo-ku, Tokyo 104-0061.

11Article 23(1) (l)The procedure and

MFLP is authorized under its articles of incorporation to issue up to 8 million units. Its units

conditions for thehave been listed on the Tokyo Stock Exchange since August 2016. Secondary market sales andissue and sale of thetransfers of units will be conducted in accordance with the rules of the Tokyo Stock Exchange.

units

Unit prices on the Tokyo Stock Exchange are determined on a real-time basis by theequilibrium between bids and offers. The Tokyo Stock Exchange sets daily price limits, which
limit the maximum range of fluctuation within a single trading day. Daily price limits are set
according to the previous day’s closing price or special quote.

Article 23(1) (m)Latest net asset

MFLP’s unit’s latest market price is publicly available at the Tokyo Stock Exchange or fromvalue of the AIF or

financial information vendors at

latest market price

http://www.reuters.com/finance/stocks/overview?symbol=3471.Tof the unit or shareof the AIF
Article 23(1) (n)Details of the

The units of MFLP were listed on the Tokyo Stock Exchange in August 2016.

historical

The performance of the units for the interim fiscal period from March 4, 2016 to July 31, 2016

performance of theis as follows, which does not reflect the initial public offering or the acquisition of any

AIF, where available

properties.
Total Assets

Total Net Assets

Net Assets per unit

(JPY millions)(JPY millions)

(JPY)

234

219

182,553

Article 23(1) (o)Identity of the

Not applicable.

prime broker, anymaterial
arrangements of the
AIF with its prime
brokers, howconflicts of interest
are managed withthe prime broker
and the provision in
the contract withthe depositary on
the possibility of12transfer and reuseof AIF assets, andinformation about
any transfer of
liability to the prime
broker that may
exist
Article 23(1) (p)Description of how

The AIFM will disclose the matters described in Articles 23(4) and 23(5) periodically throughand when periodic

the AIF Internet website and semi-annual report.

disclosures will bemade in relation toleverage, liquidity
and risk profile of
the assets, pursuant
to Articles 23(4) and23(5)Article 23(2)The AIFM shallNot applicable.

inform the investors
before they invest
in the AIF of any
arrangement madeby the depository tocontractuallydischarge itself ofliability inaccordance with
Article 21(13)The AIFM shall also

Not applicable.

inform investors of
any changes withrespect todepositary liability
without delay
Percentage of the AIF's assets which

There are no assets that are subject to special arrangements arising fromare subject to special arrangements

their illiquid nature.

arising from their illiquid nature. The

13

percentage shall be calculated as the
net value of those assets subject tospecial arrangements divided by the
net asset value of the AIF concerned
Overview of any special

There are no such special arrangements.

arrangements, including whether
they relate to side pockets, gates orother arrangements
Valuation methodology applied to

There are no such special arrangements.

assets which are subject to sucharrangements
How management and performance

There are no such special arrangements.

fees apply to such assets
Article 23(4)(b)Any new arrangements for managing

Any new arrangements or change in applicable arrangements will be

the liquidity of the AIF

disclosed at an appropriate time.

For each AIF that the AIFM manages

Any new arrangements or change in applicable arrangements will bethat is not an unleveraged closed-end

disclosed at an appropriate time.

AIF, notify to investors whenever they
make changes to its liquidity
management systems (which enable
an AIFM to monitor the liquidity riskof the AIF and to ensure the liquidity
profile of the investments of the AIF
complies with its underlying
obligations) that are material inaccordance with Article 106(1) ofRegulation (EU) No 231/2013 (ie.
there is a substantial likelihood that areasonable investor, becoming awareof such information, would reconsider
its investment in the AIF, including
because such information could
impact an investor’s ability to
exercise its rights in relation to its
investment, or otherwise prejudice
the interests of one or more investors
in the AIF).

14

Immediately notify investors where

Any new arrangements or change in applicable arrangements will bethey activate gates, side pockets ordisclosed at an appropriate time.

similar special arrangements or
where they decide to suspend
redemptions
Overview of changes to liquidity

Any new arrangements or change in applicable arrangements will bearrangements, even if not special

disclosed at an appropriate time.

arrangements
Terms of redemption and

MFLP is a closed-end investment corporation, and unitholders are notcircumstances where management

entitled to request the redemption of their investment.

discretion applies, where relevant
Also any voting or other restrictions

There are no voting or other restrictions on the rights attaching to units.

exercisable, the length of any lock-up
or any provision concerning ‘first inline’ or ‘pro-rating’ on gates andsuspensions shall be included
Article 23(4)(c)
The current risk profile of the AIF and

Deposits are exposed to risks of failure of the financial institution holding

the risk management systems

the deposit and other credit risks, but such risks are controlled throughemployed by the AIFM to manage

diversification of financial institutions holding the deposits.

those risks
The fund proceeds from borrowings and issuance of investment
corporation bonds are used for the purpose of investing in properties,
conducting repairs, paying cash distributions, operating the AIF, repaying
obligations and other activities. These borrowings and investment
corporation bonds are exposed to liquidity risks. MFLP strives to reduce theliquidity risks and a risk of rising interest rates by diversifying repayment
dates, fee, and so forth.
Derivative transactions are also utilized to hedge the interest rate risks
arising from any borrowing or other debts.
MFLP retains cash and deposits sufficient to response any potential financeneeds, including funds for acquiring asset, paying cash distributions, and soforth.
Measures to assess the sensitivity of

No such measures have been implemented.

the AIF’s portfolio to the most15

relevant risks to which the AIF is or
could be exposed
If risk limits set by the AIFM have

No such situation has occurred.

been or are likely to be exceeded andwhere these risk limits have been
exceeded a description of thecircumstances and the remedial
measures taken
Article 23(5)(a)Any changes to the maximum amountAny new arrangements or change in applicable arrangements will beof leverage which the AIFM may

disclosed at an appropriate time.

employ on behalf of the AIF,
calculated in accordance with thegross and commitment methods. This
shall include the original and revised
maximum level of leverage calculated
in accordance with Articles 7 and 8 ofRegulation (EU) No 231/2013,
whereby the level of leverage shall becalculated as the relevant exposure
divided by the net asset value of the
AIF.
Any right of the reuse of collateral or

No such right or guarantee exists.

any guarantee granted under theleveraging agreement, including thenature of the rights granted for thereuse of collateral and the nature of
the guarantees granted
Details of any change in service

Any new arrangements or change in applicable arrangements will be

providers relating to the above.

disclosed at an appropriate time.

Article 23(5)(b)Information on the total amount of

MFLP had no interest-bearing debt as of July 31, 2016, the end of its firstleverage employed by the AIF

interim fiscal period, which does not reflect the borrowings entered into in

calculated in accordance with theconnection with the acquisition of MFLP’s initial portfolio.

gross and commitment methods

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