Code：3492

November 27, 2020 Supplementary explanatory material on disposition of domestic real estate Contents

1．Execution of growth strategy 3 2．Overview of the asset to be disposed and Reason for disposition 4 3．External Growth Strategy - Acquisition from pipelines and secondary markets - 5

Morioka Ekimae-dori Building EME Koriyama Building

2 1．Execution of growth strategy based

Investment policy

＜Policy of Disposition and Replace＞ ＜Basic Policy＞ The Investment Corporation considers the medium-to long-term real ・ Securing stable profits over the estate market, each property's location and forecasting asset value med to long term fluctuations, improving portfolio quality, stability and profitability, etc. ・ Steady growth of assets When contributing to the maximization of unitholders’ value, the Investment Corporation will replace assets.

Growth Strategy （Excerpt from the materials for the 5th financial results） Internal Growth Strategy External Growth Strategy - Selection of operator of Arietta Hotel - Reduction of fixed costs by reviewing building management - Improve portfolio quality and stability specifications and switching power suppliers, etc. - Acquisition of properties through effective use of cash on hand - Implementation of capital expenditures to improve property - Securing acquisition opportunities by obtaining preferential competitiveness negotiation rights from bridge vehicles Financial Strategy - Securing acquisition opportunities through a sponsor pipeline - To reduce refinancing risk by lengthening duration from Takara Leben - Responding to interest rate fluctuation risk by fixing interest rates - To diversify sources of funding

Execution of growth strategy The Investment Corporation have decided to dispose Morioka Ekimae-dori Building and EME Koriyama Building in order to improve the quality and stability of our portfolio as set forth in our external growth strategy. Through this disposition, the Investment Corporation will secure funds for the acquisition of new properties and aim to maximize unitholder value by acquiring assets in the future.

3 2．Overview of the asset to be disposed and Reason for disposition

Office

Name Morioka Ekimae-dori Building Total disposition price 2,394million yen Address Iwate, Morioka

Disposition price 1,484 million yen Total book value 2,366 million yen Book value 1,465 million yen

Difference of Intended Disposition Price and Book 18 million yen Total value (Disposition price-Book value) 28 million yen Contract date November 30, 2020

Disposition date November 30, 2020 Reason for Disposition

Regarding the assets to be transferred, the Morioka Ekimae- dori Building and EME Koriyama Building, the Investment Corporation have secured a certain level of profitability by Name EME Koriyama Building reducing costs and leasing since the listing. Address , Koriyama Based on the fact that the buyer offered to purchase of the 2 properties at the above disposition price, the Investment Disposition price 910 million yen Corporation decided to manage and disposition the assets to be disposed in the medium to long term in consideration of Book value 900 million yen future internal growth potential. As a result of a comparative Difference of Intended study, it was determined that reinvesting the funds obtained Disposition Price and Book 9 million yen from the disposition in a new property would contribute to value improving the stability of the Investment Corporation's Contract date November 30, 2020 portfolio and maximizing the unitholder value of the Investment Corporation. Disposition date November 30, 2020 The cash associated with this transfer will be used to fund the acquisition of properties in the future.

(Note1)“Disposition price” is the trading value stated in the trust beneficiary right sales contract (hereinafter referred to as the “sales contract”) of the asset to be transferred, rounded down to the nearest million yen. (Note2) “Book value” is as of August 31, 2020.

4 3．External Growth Strategy - Acquisition from pipelines and secondary markets -

A rich pipeline utilizing the development capabilities of the main sponsor, Takara Leben

16 properties

住宅 住宅 13 properties

LUXENA NAGAREYAMA- Winbel Chorus OTAKANOMORI Seiseki Sakuragaoka (Tentative) LUXENA (Tentative) LUXENA AKIHABARA TOYOCHO （Taito, ） （Koto, Tokyo） (Tentative) LUXENA (Tentative) LUXENA TODAKOEN HACHIOJI MINAMICHO （Toda, ） （Hachioji, Tokyo） (Tentative) LUXENA (Tentative) L.Biz 住宅 ホテル MUSASHI-SHINJO Nihonbashi （Kawasaki, Kanagawa） （Chuo, Tokyo） （Tentative）L.Biz 7 properties Hatchobori Residence （Chuo, Tokyo） PRIME SQUARE Dormy Inn Mito (Tentative) LUXENA （Tentative）L.Biz KADOMA Ochanomizu Office （Kadoma, ） （Chiyoda, Tokyo） Retail 4 Onomichi PJ (Note3) Takamatsu Hotel PJ （Onomichi, ） （Takamatsu, Kagawa） properties Hotel

In operation In 2020 In 2021 In 2022 (Note 1) Although the Investment Corporation has acquired preferential negotiating rights with respect to each of the properties listed above, there is no guarantee that these properties will be acquired in the future. (Note 2) The number of pipelines is the cumulative number. (Note 3) Onomichi PJ is two lots with leasehold interest

Acquisition from secondary markets Asset Management Company have experience persons in listed REIT, real estate funds, and financial real estate, and aim to expand acquisition opportunities from non-sponsors by utilizing our own information network.

5 https://takara-reit.co.jp/en/index.html

Contact Takara PAG Real Estate Advisory Limited Tel：+81-3-6435-5264 Mail︓[email protected]

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