June 27, 2019
To All Concerned Parties
Name of REIT Issuer:
CRE Logistics REIT, Inc.
2-10-1, Toranomon, Minato-ku, Tokyo, Japan
Tsuyoshi Ito, Executive Director(TSE Code: 3487)
Asset Management Company
CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Person of Contact:
Hirohisa Toda, Head of Corporate Planning
Tel: +81-3-5575-3600
Notice Concerning Acquisition of Domestic Trust Beneficial Interests in Real Estate and Leasing Thereof
CRE Logistics REIT, Inc. (hereinafter “CRE REIT”) hereby announces that CRE REIT Advisers, Inc.
(hereinafter the “Asset Management Company”), an asset management company to which CRE REIT entrusts
the management of its assets, decided on June 27, 2019 to acquire the trust beneficial interest in the following
properties (hereinafter the “Assets to Be Acquired”) and to conduct the leasing thereof.
CRE, Inc. (hereinafter “CRE”), one of the sellers of the Assets to Be Acquired, is deemed to be an interested
party under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 195 1, as amended;hereinafter the “Investment Trust Act”). Accordingly, pursuant to the Investment Trust Act, the AssetManagement Company obtained the consent of CRE REIT based on the approval of the Board of Directors of
CRE REIT at its meeting held on June 27, 2019. CRE also qualifies as an interested party in accor dance with
the Regulations for Transactions with Interested Parties, the internal regulations of the Asset Management
Company. Consequently, the Asset Management Company is following the decision-making procedures set
forth in the Regulations for Transactions with Interested Parties for executing transactions for the acquisitionof assets.
1. Overview of the acquisition
Category

Logisticsrelated
facilities

Propertyno.

Property name

M-7

LogiSquare Kawagoe

M-8

LogiSquare Kasukabe

Total / Average (2 properties)

SellerPlannedacquisition price(million yen)
(Note 1)

Appraised
NOI yield(%)(Note 2)

CRE

1,490

5.0

SaitamaDomestic leasing
company(Note 3)

4,900

5.1

―

―

6,390

5.0

Location
Kawagoe-shi,
Saitama
Kasukabe-shi,(Note 1) “Planned acquisition price” is the purchase price of each Asset to Be Acquired as set forth in the agreement for sale and purchaseof the said Asset to Be Acquired. The purchase price does not include national and local consumption taxes or acquisition cos ts
and is rounded down to the nearest million yen.
(Note 2) “Appraised NOI yield” is the ratio in percentage form of the appraised NOI of each Asset to Be Acquired to the planned
acquisition price, rounded to the first decimal place. “Average appraised NOI yield” is the ratio in percentage form of the sumof the appraised NOI of each Asset to Be Acquired to the sum of the planned acquisition prices of the Assets to Be Acquired,
rounded to the first decimal place. Appraised NOI yield and average appraised NOI yield have been calculated by the AssetManagement Company and do not represent the figures shown in the appraisal reports. The actual values after the acquisition1

of the Assets to Be Acquired by CRE REIT may differ from those shown in this text.
(Note 3) As the approval of the seller for the disclosure of the information has not been obtained, the information has not been discl osed
due to this unavoidable reason. The seller does not fall under an interested party as prescribed in the Investment Trust Ac t andthe Regulations for Transactions with Interested Parties, the internal regulations of the Asset Management Company. Moreover,
CRE REIT utilizes the bridge function of the leasing company in order to acquire properties in a flexible manner inconsideration of the investment unit price. As the subject assets had been sold to the leasing company with a view to sales of
the assets to CRE REIT in the future, CRE REIT decided to acquire the subject assets under the scheme.

(1) Sales and purchase agreement date / Date of determination of planned acquisition: June 27, 2019(2) Payment date / Planned acquisition date (Note 1): July 16, 2019(3) Acquisition financing: Proceeds through the issuance of new investment units as resolved at the Board of
Directors’ meeting of CRE REIT held on June 27, 2019 (Note 2), borrowings (Note 3)
and funds in hand(4) Settlement method: To be paid in a lump sum upon delivery(5) Existence or non-existence of intermediary: None
(Note 1) “Planned acquisition date” is the execution date of the transfer of each trust beneficiary interest described in the sales andpurchase agreement concerning each Asset to Be Acquired.
(Note 2) For more details, please refer to “Notice Concerning Issuance of New Investment Units and Offering for Sale of Investment
Units” dated June 27, 2019.
(Note 3) For more details, please refer to “Notice Concerning Borrowing of Funds (New Borrowings and Refinancing)” dated June 27,
2019.

2. Reasons for the acquisition and leasing
The Assets to Be Acquired are logistics-related facilities developed by CRE, the sponsor of CRE REIT, andsituated in locations suited to logistics. Bearing the high-quality brand name “LogiSquare” (Note), the facilities
are universal and expandable to allow use by a range of tenants. The acquisition and leasing will be conductedwith the aim of enhancing the portfolio of CRE REIT in accordance with its Articles of Incorporation andimproving unitholder values based on the policies of “Long-term, stable asset management” and “Distinct
external growth strategy.” The characteristics of each Asset to Be Acquired are as described in 3. Details of
the Assets to Be Acquired below.
The acquisition of the Assets to Be Acquired is expected to create stable, long-lasting cash distribution backed
by long-term lease agreements that generate cash flow. CRE REIT believes that this will contribute to therealization of unitholder value enhancement.
With regard to the tenants of the Assets to Be Acquired, CRE REIT believes that the tenants meet the tenant
selection criteria described in the Report on the Management Structure and System of the Issuer of Real Estate
Investment Trust Units and Related Parties submitted to Tokyo Stock Exchange on March 28, 2019.
(Note) Developed by CRE, “LogiSquare” is the name of quality logistics-related facilities that meet tenant needs.

3. Details of the Asset to Be Acquired
An overview of the trust beneficial interests in real estate, the Assets to Be Acquired, is shown in the tablebelow. The terms used in each column of the table are as described in the following, which is based on
information as of the end of May 2019 unless otherwise provided herein.
(i) Descriptions concerning “property no.” and “use”
・“Property no.” consists of a number and code that indicates the type of each property. The code “M” indicateslogistics-related facilities located in the Tokyo Metropolitan Area, and the code “O” indicates those located in areas
other than the Tokyo Metropolitan Area.
・“Use” is the use(s) of the Assets to Be Acquired.

2

(ii) Descriptions concerning “Outline of specified assets”
・“Planned acquisition date” is the planned acquisition date of each Asset to Be Acquired.
・“Planned acquisition price” is the purchase price of each trust beneficiary interest set forth in the respective agreement
for sale and purchase of the trust beneficiary interest for each Asset to Be Acquired. The purchase price does notinclude national and local consumption taxes or acquisition costs.
・“Overview of trust beneficiary interest” is the content of the respective trust agreement for each real estate in trustthat is concluded or is scheduled to be concluded with a trust beneficiary or a prospective trust beneficiary.
・“Location” of the land is the residence indication or the location of the building recorded in the register (one of the
lot numbers, if more than one address was assigned).
・The land “area” is the area recorded in the register. This area is the entire area of the parcel for the building, both in
the case of properties pertaining to co-ownership and in the case of properties pertaining to quasi co-ownership. This
area may not match the actual conditions.
・“Zoning” of the land is the districts and zones prescribed in Article 8, paragraph 1, item 1 of the City Planning Act(Act No. 100 of 1968, including all subsequent amendments).
・“Building coverage ratio/floor-area ratio” for the land is the upper limit of the building coverage ratio determined bycity planning in accordance with zoning and other factors (designated building coverage ratio) and the upper limitof the floor-area ratio (designated floor-area ratio). Where there are more than two such ratios, all such ratios arelisted. The designated building coverage ratios may be relaxed or restricted due to being fire-resistant buildings infire zones or for other reasons. The designated floor-area ratio may also be relaxed or restricted due to the width of
the roads adjacent to the land or for other reasons. These ratios may differ from the actual building coverage ratio
and floor-area ratio applied.
・“Type of ownership” of the land and building is the type of rights pertaining to the land and building for each property
that CRE REIT, a trustee or a prospective trustee owns or is scheduled to own.
・ “Building structure” and “completion date for construction” of the building are the building structure and thecompletion date for construction in the register for each building.
・ “Total floor area” and “type” are the total floor area and the type in the register for each building. In addition, “total
floor area” is the sum of total floor area of the main building and annex.
・“Master lessee” is the company with which a master lease agreement is planned to be concluded at the time when
CRE REIT acquires the Assets to Be Acquired.
・“Master lease agreement” is the type of master lease agreement (distinction between the pass-through type and thefixed rent type) that is concluded or is scheduled to be concluded with the Master lessee for each property.
・“PM Company” is the company with which a property management agreement is planned to be concluded at the time
when CRE REIT acquires the Assets to Be Acquired.
・“Number of tenants” is the number of persons who plan to lease the real estate from CRE REIT based on leaseagreements that are scheduled to become effective on the planned acquisition date for each Asset to Be Acquired by
CRE REIT. Where a master lease agreement has been signed or is planned to be signed with the Master Lessee,“number of tenants” is the total number of end tenants with regard to properties based on a pass-through type master
lease. Moreover, where an end tenant lives with a third party or subleases a portion of the leased lot to a third party,
such third party is not included in “number of tenants.”
・“Existence or non-existence of collateral” is an outline of the collateral for each Asset to Be Acquired in the casewhere CRE REIT is scheduled to provide the collateral after acquiring the Asset to Be Acquired.
・“Total leasable area” is the area of the portions that are deemed leasable based on the respective lease agreements
concerning each Asset to Be Acquired that has been concluded as of the end of May 2019 or the floor plan, etc.
・ “PML (probable maximum loss) value” is the value equivalent to Level 2 in the Earthquake Risk (PML) Evaluation
Report prepared by Sompo Risk Management Inc.
・“Features of the properties” are the basic features and characteristics of each Asset to Be Acquired, the evaluation
conducted by CRE REIT, and special features of the communities wh ere the asset is located, among other things,
which are based on descriptions of a real estate appraisal report prepared by Tanizawa Sogo Appraisal Co., Ltd. or3

based partly on materials obtained by the Asset Management Company.
・“Notes” are matters that are deemed to be material with respect to relationships of the rights, usage, etc. of each
property as of the date of submitting this text and other matters that are deemed to be material in consideration mainlyof the potential impact on the appraised value of each Asset to Be Acquired, and the profitability or disposability
thereof.
(iii) Descriptions in the column for “capacity utilization rate”
・“Capacity utilization rate” is the ratio of total leased area to leasable area of each Asset to Be Acquired at each point
in time, rounded to the first decimal place.
(iv) Descriptions in the column for “outline of leasing”
・“Lessee,” “lease form,” “lease period,” “leased area,” “rent,” “security deposit and guarantee money,” “rent revision,”“premature cancellation” and “penalty” are the contents of each lease agreement that has been concluded with regard
to each Asset to Be Acquired as at May 31 (in the case of the pass-through type master lease agreement, the leaseagreement with the end tenant).
(v)

Explanations in the column for “outline of real estate appraisal report”

・The column for “outline of real estate appraisal report” is written based on the appraisal report obtained from
Tanizawa Sogo Appraisal Co., Ltd.

4

(1) LogiSquare Kawagoe
Property no.
M-7

LogiSquare Kawagoe

Use

Logistics-related facility

Outline of specified assets
Type of specified assets

Trustbeneficial(planned)

Planned acquisition dateJuly 16, 2019

Planned acquisition price¥1,490,000,000

Land

interest Overvi
ew of
trust
benefic
ial
interest

Entrustment date July 16, 2019 (planned)
Mitsubishi UFJ Trust andBanking Corporation (planned)

TrusteeTrust
datematurity

July 31, 2039 (planned)

Location

2-8-45 Yoshinodai, Kawagoeshi, Saitama

Building
structureArea

6,295.88 m2

Completion dateFebruary 15, 2018
for construction

ZoningExclusive industrial district

Building coverage
ratio/floor-area
60%/200%
ratio
Type of ownership

Buildin Total floor areag7,542.56 m2

TypeWarehouseTypeownership

Proprietary ownership

Steel construction, alloy coatedsteel sheet roof, two floorsofProprietary ownership

Master lessee

CRE, Inc. (planned)

PM Company

CRE, Inc. (planned)

Master lease agreement

Pass-throughNumber of tenants

1

Total leasable area

7,542.56 m2

Existence or non-existence ofNonecollateral
PML (probableloss) value

maximum

3.89%

Features of the property:
・The property is located approximately 6.9 km from Kawajima Interchange on the Metropolitan Inter-City Expressway (theKen-O Expressway), approximately 10 km from Kawagoe Interchange on the Kan-Etsu Expressway, and approximately 16.7
km from Yono Interchange on the Metropolitan Expressway and the Saitama Omiya Line. This is a good location because it
is close to National Route 254 and National Route 16, which are major trunk roads, and because it provides good access to
National Route 17 Shin-Omiya Ageo Road. The opening of the completed Kawagoe-Kita Prefectural Loop Road has also
contributed to improved convenience.
・Surrounded by numerous warehouses and factories, the property is located in the exclusive industrial district in Kawagoe
Industrial Park and is operatable 24 hours a day.
・The basic specifications for the warehouse portion include a floor weight capacity of 1.5 t/m2, effective ceiling heights of 6.15
m for the 1st floor and 6.0 m for the 2 nd floor, a column span of 10.0 × 8.8 m and an illumination intensity of 300 Lux ensured.
Well-insulated metal sandwich panels are used on the exterior walls. With no braces on the 1 st floor and a small number ofcolumns in certain parts of the 2 nd floor, the storage efficiency is high.
・The transportation equipment inside the warehouse includes two cargo elevators (movable load of 3.5 t). By designing it alow facility with two stories, the time loss arising from transport through multiple levels that is inherent in multi-story
warehouses is minimized, making the facility highly versatile with rapid incoming and outcoming deliveries.
・The truck yard has been built in such a manner that it can respond flexibly to a range of uses, including adequate space for alarge vehicle holding area. The depths of the berths are 13.5 m or longer.
・From an environmental point of view, LED lighting in the entire facility, human detection sensors, water-saving sanitary
fixtures, etc. have been introduced. As a result, it acquired a BELS (Building-Housing Energy-efficiency Labeling System)
evaluation of (★★★★), a third-party certification for energy-saving facilities.
・The earthquake early-warning system, which is standard equipment in LogiSquare brand facilities, and AEDs (AutomatedExternal Defibrillators) have been adopted in the property. In addition, the installation of automatic smoke alarms withdisconnectors between the fire shutters will stop the shorting out of the circuitry in emergency situations and prevent fire from5

spreading.
・The signs in the facilities feature Kawagoe Tozan-Ori (tozan-weave fabric) and ajisai (hydrangea) as their base design. Thesesigns include those that visualize the functions of the facilities such as effective ceiling height, floor weight capacity andillumination intensity, with a view to increasing comfort for people working in the facility. The signs are color-coded for eachfloor to ensure that workers understand the current positions, and scale marks on the columns are used as a guide to the stackloads.
Notes:
Not applicable.

End of December
2018
100.0%End of January
2019
100.0%

Capacity utilization rate
End of February
End of March
2019
2019
100.0%
100.0%End of April 2019

End of May 2019100.0%

100.0%

Outline of leasing
Leased area

Rent

Security deposit
and guarantee
money

7,542.56 m2

Undisclosed(Note)

Undisclosed(Note)

LesseeType of business

Lease form

Lease
periodTokyo Logistics FactoryCo., Ltd.

Land
transportation

Fixed term
building lease

10 years

Rent revision

Not allowed.

Premature cancellation

Not allowed; provided, however, that premature cancellation may be approved under unavoidable
circumstances on the condition that the intent of the premature cancellation is notified in writing nolater than 1 (one) year before the intended date of premature cancellation and that a penalty for thepremature cancellation be paid.

PenaltyAmount equivalent to unexpired rent

(Note) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed dueto this unavoidable reason.

6

Outline of real estate appraisal report
Property name

LogiSquare Kawagoe

Appraisal value
Real estate appraiser¥1,570,000,000
The Tanizawa Sogo Appraisal Co., Ltd.

Date of valuation

May 31, 2019
Items

Appraisal value indicated by the income
approachAppraisal value based on the direct
capitalization method(1) Operating Revenue(i) Effective gross Income(ii) Losses from vacancy, etc.
(2) Operational Expenses
a. Building maintenance costs
b. Utility expensesc. Repair expenses
d. Property management feese. Tenant soliciting fees etc.
f. Taxes and public dues
g. Insurance premiumsh. Other expenses(3) Net operating income(4) Earnings from temporary
deposits(5) Capital expenditure
Net cash flow
Capitalization rate

Appraisal value using the DCF
methodDiscount rate

Details

Comments, etc.

The appraisal value is estimated using the income approach after
conducting an examination using the direct capitalization¥1,570,000,000
method based on the appraisal value indicated by the DCF(Discount Cash Flow) method as the standard.
¥1,590,000,000
Undisclosed (Note) (i)-(ii)Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note) Sum of values listed under a. to h.
Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note)
Undisclosed (Note)¥74,170,131 (1)-(2)Undisclosed (Note)
Undisclosed (Note)¥72,992,561 (3)+(4)-(5)4.6% Appraised by comparing and examining several market
capitalization rates of properties in peripheral areas or in similar
districts, etc. in the same market area, by taking into accountanticipated variations in future net cash flow and by paying
attention to the relationship to the discount rate.
¥1,560,000,000

First to ninth year Appraised by first determining the base yield of the warehouse
4.5% using the built-up method, etc. in reference to the yields ofTenth year and financial instruments, and then by taking into account thethereafter 4.7% individual risks pertaining to the subject real estate in relation to
the said base yield.
Terminal capitalization rate
4.8% Appraised by using the capitalization rate as the standard and by
evaluating the uncertainty of future projections.
Integrated value¥1,520,000,000
Proportion of land
48.1%
Proportion of building
51.9%
Other matters for consideration by the Noneappraiser(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This is because thedisclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm the interests of unitholders.

7(2) LogiSquare Kasukabe
Property no.
M-8

LogiSquare Kasukabe

Use

Logistics-related facility

Outline of specified assets
Type of specified assets

Trust beneficial interest

Planned acquisition dateJuly 16, 2019

Planned acquisition price¥4,900,000,000

Location

2126,
etc.,
Naganuma,
SaitamaArea

13,662.01 m2

ZoningNo
zoningdesignation Buildin
Total floor area
(urbanization control area)g

Land

Overview oftrust
benefic
ial
interest

Mukaidori,
Kasukabe-shi,

Entrustment date July 27, 2018
Trustee
Trust
date

SMBC Trust Bank Ltd.
maturity

July 31, 2039

Reinforced
concrete,
steel
construction, alloy coated steel
sheet roof, three floors

Building
structure

Completion dateJune 1, 2018
for construction

Building coverage
ratio/floor-area
60%/200%
ratio

Type

Type of ownershipTypeownership

Proprietary ownership

21,315.54 m2

WarehouseofProprietary ownership

Master lessee

CRE, Inc.

PM Company

CRE, Inc.

Master lease agreement

Pass-throughNumber of tenants

1

Total leasable area

21,315.54 m2

Existence or non-existence ofNonecollateral
PML (probableloss) value

maximum

2.99%

Features of the property:
・The property is located approximately 15.0 km from Iwatsuki Interchange on the Tohoku Expressway. The property faces aroad with a width of approximately 16 m and has good access, being approximately 400 m from National Route 4.
・It is close to National Route 16 and National Route 4 (Koshigaya Kasukabe Bypass), which are major trunk roads, and isapproximately 1.8 km from Showa Interchange where the two national routes cross. In addition, the scheduled extension of
National Route 4 (Higashi Saitama Road) will increase the convenience of the property.
・ Within a walking distance of approximately 1.1 km from Minami-Sakurai Station on the Tobu Urban Park Line, it isgeographically advantageous from the perspective of securing employment.
・Truck berths for a total of 26 trucks are located on two sides of the 1 st floor, on the northeast and northwest sides. There are
two gateways for the facility, one for entering and the other for exiting. By making the vehicle traffic within the site one way,truck traffic congestion and collision accidents are prevented. The depth of the berths is 13.4 m with a canopy top of 4.0 m.
・The basic specifications for the warehouse portion include an average illumination intensity of 300 Lux or more, a floor weightcapacity of 1.5 t/m2, an effective ceiling height of 6.0 m for each floor, and a column span of 10.7 m (certain columns: 10.8m) × 10.5 m. Metal sandwich panels are used on the exterior walls, and fire resistant and heat insulating panels are used forfire rated compartment barriers. Moreover, the design with no braces and intermediate posts contributes to the enhancementof storage efficiency.
・The transportation equipment inside the warehouse includes two cargo elevators (movable load of 4.1 t, 45 m/min) and threevertical carrier machines, ensuring rapid, efficient indoor operations. In the building structures, moreover, apertures have been
established in two locations on each floor for setting conveyors through the floor in the future. This will allow the installationof vertical material handling equipment through the upper and lower floors henceforth. The facility is extremely versatile
because it can respond to the additional installation of vertical carrier machines and dock levelers, the need for pipe laying
routes, the need for placing outdoor units for air conditioning facilities in the warehouse, the need for the additional installation8

of cubicles and various other logistics needs, including needs to house tenants in the future.
・From an environmental point of view, LED lighting in the entire facility, human detection sensors, water-saving sanitary
fixtures, etc. have been introduced. Moreover, the entire roof is covered with photovoltaic facilities with an output of 0.84
megawatt. As a result, it acquired Rank A of the CASBEE (Comprehensive Assessment System for Building Environmental
Efficiency) certification adopted by the Saitama Prefectural government and a BELS (Building-Housing Energy-efficiency
Labeling System) evaluation of (★★★★★).
・The earthquake early-warning system, which is standard equipment in LogiSquare brand facilities, and AEDs (AutomatedExternal Defibrillators) have been adopted in the property. In addition, an emergency electric supply unit and automatic smoke
alarms with disconnectors between the fire shutters have been installed to prevent fire from spreading.
・The facility is designed to visualize signs for warehouse functions such as effective ceiling height, floor weight capacity andillumination intensity and to have rest spaces in the site in order to increase the comfort of the people working in the facility.
・The property is used by Koizumi Logistics Service Corp., a company that conducts the planning, manufacture and sale oflighting fixtures and furniture, under the Koizumi Sangyo Corp. Group (Note 1). It is used as the base for the company’s
operations to cover east Japan. Products of the Koizumi Sangyo Corp. Group are used for lighting in the entire building.
Notes:
Not applicable.

End of December
2018

End of January
2019

100.0%

100.0%

Capacity utilization rate
End of February
End of March
2019
2019
100.0%End of April 2019

End of May 2019100.0%

100.0%

100.0%

Outline of leasing
LesseeType ofbusiness

Lease form

Lease
periodLeased area

Rent

Security deposit
and guarantee
money

Koizumi Logistics
Service Corp.

Land
transportati
onFixed term
building lease

10 years

21,315.54 m2

Undisclosed(Note 2)

Undisclosed(Note 2)Rent revision

Not allowed.

Premature
cancellation

Not allowed; provided, however, that premature cancellation may be approved under unavoidable
circumstances on the condition that the intent of the premature cancellation is notified in writing nolater than 1 (one) year before the intended date of premature cancellation and that a penalty for thepremature cancellation be paid.

PenaltyAmount equivalent to unexpired rent

(Note 1) The Koizumi Sangyo Corp. Group consists of Koizumi Sangyo Corp. and its group companies.
(Note 2) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been
disclosed due to this unavoidable reason.

9Outline of real estate appraisal report
Property name
LogiSquare KasukabeAppraisal value¥5,300,000,000
Real estate appraiser
The Tanizawa Sogo Appraisal Co., Ltd.
Date of valuation
May 31, 2019
Items
Details
Comments, etc.
Appraisal value indicated by the income
The appraisal value is estimated using the income approach after
approach
conducting an examination using the direct capitalization¥5,300,000,000
method based on the appraisal value indicated by the DCF(Discount Cash Flow) method as the standard.
Appraisal value based on the direct¥5,430,000,000
capitalization method(1) Operating Revenue
Undisclosed (Note) (i)-(ii)(i) Effective gross Income
Undisclosed (Note)(ii) Losses from vacancy, etc. Undisclosed (Note)(2) Operational Expenses
Undisclosed (Note) Sum of values listed under a. to h.
a. Building maintenance costs Undisclosed (Note)b. Utility expenses
Undisclosed (Note)c. Repair expenses
Undisclosed (Note)d. Property management fees Undisclosed (Note)e. Tenant soliciting fees etc.
Undisclosed (Note)
f. Taxes and public dues
Undisclosed (Note)
g. Insurance premiums
Undisclosed (Note)
h. Other expenses
Undisclosed (Note)(3) Net operating income¥247,623,146 (1)-(2)(4) Earnings from temporary Undisclosed (Note)
deposits(5) Capital expenditure
Undisclosed (Note)
Net cash flow
¥244,194,413 (3)+(4)-(5)Capitalization rate
4.5% Appraised by comparing and examining several market
capitalization rates of properties in peripheral areas or in similar
districts, etc. in the same market area, by taking into accountanticipated variations in future net cash flow and by paying
attention to the relationship to the discount rate.
Appraisal value using the DCF¥5,250,000,000
methodDiscount rate
First to ninth year Appraised by first determining the base yield of the warehouse
4.4% using the built-up method, etc. in reference to the yields ofTenth year and financial instruments, and then by taking into account thethereafter 4.6% individual risks pertaining to the subject real estate in relation to
the said base yield.
Terminal capitalization rate
4.7% Appraised by using the capitalization rate as the standard and by
evaluating the uncertainty of future projections.
Integrated value¥5,130,000,000
Proportion of land
47.6%
Proportion of building
52.4%
Other matters for consideration by the Noneappraiser(Note) Regarding this item, actual figures are used as a reference, and CRE REIT has decided not to disclose this item. This is because
the disclosure thereof may adversely affect the competitive position of CRE REIT and may eventually harm the interests ofunitholders.

104. Seller Profile
M-7 LogiSquare Kawagoe(1) Company name: CRE, Inc.
(2) Location: 2-10-1, Toranomon, Minato-ku, Tokyo(3) Representative: Tadahide Kameyama, Representative Director, President(4) Principle business: Leasing , property management and development of and intermediation andinvestment advice concerning logistics facilities(5) Capital: 2,189 million yen (as of April 30, 2019)(6) Date of establishment: December 2009(7) Net assets: 17,415 million yen (as of April 30, 2019)(8) Total assets: 53,635 million yen (as of April 30, 2019)(9) Major shareholders and shareholder ratios: Kyobashi Kousan, Inc. 47.91% (as of January 31, 2019)(10) Relationship between CRE REIT / the Asset Management Company and the said company
Capital relationship: As of June 27, 2019, the said company holds 14.3% of the total issued investment
units of CRE REIT. The said company also owns 100.0% of the total issued shares of
the Asset Management Company as of June 27, 2019.
Personnel relationship: As of June 27, 2019, of the executives and employees of the Asset Management
Company, three Directors and one Statutory Auditor are concurrently serving as
Directors of the said company. Moreover, one person is dispatched from the said
company, while one of the executives and employees of the said company is dispatchedfrom the Asset Management Company.
Business relationship: The said company has concluded sponsor support agreements with CRE REIT and
the Asset Management Company, respectively. Moreover, the said company has
concluded a property management outsourcing agreement and a master lease agreementwith CRE REIT.
Status of classification: The said company falls under a related party of CRE REIT and the AssetManagement Company.
M-8 LogiSquare Kasukabe
The seller of the LogiSquare Kasukabe is a domestic leasing company. Since the approval of the seller forthe disclosure of information has not been obtained, the information has not been disclosed. The said seller
does not fall under a person who has a relationship of special interest with CRE REIT and the AssetManagement Company.
5. Interested-Party Transaction
CRE is the seller of LogiSquare Kawagoe and the master lessee of the two properties that are the Assets to be
Acquired. It is the parent company of the Asset Management Company and falls under interested party, etc. inaccordance with the Investment Trust Act. Accordingly, pursuant to the Investment Trust Act, the AssetManagement Company obtained the consent of CRE REIT based on the approval of the Board of Directors of
CRE REIT at its meeting held on June 27, 2019. Moreover, being the seller of LogiSquare Kawagoe and the11master lessee and the property management company of the two properties that are the Assets to be Acquired,CRE qualifies as an interested party in accordance with the Regulations for Transactions with Interested Parties,
which are the internal regulations of the Asset Management Company. Consequently, the Asset Management
Company is following the decision-making procedures set forth in the said Regulations for Transactions with
Interested Parties for executing transactions for the acquisition of assets.
6. Status of owners, etc. of the properties
The status of acquisition, etc. of properties from specially interested persons and persons who are deemed
equivalent to specially interested persons (Note) is as follows.
(Note) Although the previous owner, etc. and the 2x previous owner, etc. of LogiSquare Kasukabe are not specially interested persons,the third to previous owner, etc., who is a specially interested person, executed a transaction with the 2x previous owner, etc.
and succeeded to the status of the 2x previous owner, etc. based on an absorption-type company split agreementon thecondition that the subject property be transferred to CRE REIT within one year from the said transaction. Accordingly, theprevious owner, etc. and the 2x previous owner, etc. are treated as persons who are deemed equivalent to specially interested
persons.

Property name (location)

M-7 LogiSquare Kawagoe (Kawagoe-shi, Saitama)

Status of owner, etc. ofPrevious owner, etc.

2x previous owner, etc.

property

CRE, Inc.

Name
Relationshipspecially

with

Other than special interested party

Parent of the Asset Management Company

interested

party
History, reason, etc. for

Acquired for the purpose of building

acquisition

development.

Acquisition priceDisclosure is omitted as the previous
owner owned the property for more than
one year.

Date of acquisition

July 2016 (Land)

Property name (location)
Status of owner, etc. of

M-8 LogiSquare Kasukabe (Kasukabe-shi, Saitama)Previous owner, etc.

2x previous owner,

3x previous owner,

3x previous owner,

etc.

etc.

etc.

property
Name

Relationshipspecially

Domestic

withleasing CRE, Inc.

leasing Domestic

company (Note)company (Note)――

Other than special
interested parties

Parent of the Assetinterested

Management

party

Company

History, reason, etc. for

Acquiredforacquisition

purposeof purposeof purpose of building

investment

and investment

and development.

management

the Acquiredformanagement

12

the Acquired

for

the

Acquisition price

Undisclosed (Note)

Undisclosed (Note)

Disclosure
omittedprevious

is
as

the
owner

owned the property
for more than one
year.
Date of acquisition

March 2019

July 2018

March 2017 (Land)
June 2018 (Land)(Note) Since the approval of the owner for the disclosure of information has not been obtained, the information has not been disclosed
due to this unavoidable reason. Neither the previous owner, etc. nor the 2x previous owner, etc. fall under interested parties inaccordance with the Investment Trust Act and the Regulations for Transactions with Interested Parties, which are the internal
regulations of the Asset Management Company. Moreover, the previous owner, etc. and the 2x previous owner, etc. belong to thesame corporate group, and ownership rights are transferred between the group companies as part of the business restructure.

7. Brokerage
Not applicable.
8. Outlook for the future
The acquisition of the Assets to be Acquired is scheduled to be implemented on July 16, 2019, and it will haveno impact on the operating results for the fiscal period ending June 30, 2019. For information on the outlookof the operating results of CRE REIT for the periods ending December 31, 2019 and June 30, 2020, pleaserefer to the “Notice Concerning Revision of Forecasts of Operating Results for the Period ending December
31, 2019 and Forecasts of Operating Results for the Period ending June 30, 2020” announced on June 27, 2019.
End.

* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/<For reference>
Please refer to the Supplementary Explanation regarding the First Public Offerings and Asset Acquisition thatwere publicly announced as of June 27, 2019 for the portfolio list after the acquisition of the Assets to be
Acquired, photographs of the external appearance of the Assets to be Acquired, and a map of the vicinity
thereof.

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