January 7, 2020 For Immediate Release Real Estate Investment Trust Securities Issuer: Comforia Residential REIT, Inc 1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo Takehiro Izawa Executive Director (Code: 3282) Asset Management Company: TLC REIT Management Inc. Hiroyuki Tohmata President & CEO Inquiries: Kentaro Yoshikawa General Manager of Strategy Department Comforia Management Division (TEL: +81-3-6455-3388) Notice Concerning Acquisition of Investment Assets (COMFORIA HIGASHISHINJUKU STATION FRONT and other 5 assets) Comforia Residential REIT, Inc (“CRR”) announces that TLC REIT Management Inc. (“TRM”), to which CRR entrusts management of its assets decided today for CRR to acquire the investment assets as shown below. In addition, the acquisition of investment assets was approved by CRR’s Board of Directors in accordance with the Act on Investment Trusts and Investment Corporations (Act No.198 of 1951. Including subsequent revisions) (“Act on Investment Trusts and Investment Corporations”) and the bylaws of TRM concerning transaction with interested parties. (Please refer to “7. Asset Management Company’s Interested Parties in the Assets to be Acquired”) 1．Summary of Acquisitions Acquisition Price No. Type of Asset Property Name (thousand yen) (Note) Beneficial Interest in 1 Real Estate Trust COMFORIA TAKINOGAWA 3,430,000 Beneficial Interest in COMFORIA HIGASHISHINJUKU 2 5,540,000 Real Estate Trust STATION FRONT Beneficial Interest in 3 Real Estate Trust COMFORIA ESAKAHIROSHIBACHO 1,700,000 Beneficial Interest in 4 Real Estate Trust COMFORIA KIBASHINSUIKOEN 1,294,000 Beneficial Interest in 5 Real Estate Trust COMFORIA NAKAOCHIAI 1,489,000 Beneficial Interest in 6 Real Estate Trust COMFORIA WASEDA DEUX 1,056,000 Total 14,509,000 (Note) “Acquisition Price” denotes the amount exclusive of the various expenses required in the acquisition of the concerned asset, etc. (brokerage commission, taxes and public dues, etc.) (the amount of real estate or beneficial interest in real estate trust specified in the Agreement on Purchase and Sale). (1) Date of Agreement No.1-6 January 7, 2020 (2) Date of Acquisition No.1-3 February 3, 2020 <Disclaimer> This document is a press release to make a public announcement of acquisition of investment assets, and has not been prepared as a solicitation for investment. CRR cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by CRR before undertaking investments and that investments be made at their own discretion and responsibility. 1 No.4-6 March 2, 2020 (3) Seller Refer to “5. Summary of the Sellers” (4) Financing for Acquisition Proceeds from the issuance of new investment units outlined in the press release “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” separately announced today, and borrowings (Note). (5) Method of Payment Full payment at the time of delivery (Note) CRR will announce the details of the borrowings once it's determined. 2. Reason for Acquisition TRM decided to acquire the investment assets based on asset management class and policy described in bylaws to ensure stable earnings and steady growth of the portfolio. On deciding to acquire the investment assets, TRM evaluated the features of the properties, etc. of the assets stated in “3. Summary of the Assets to be Acquired” Furthermore, CRR judges that the lessees of the assets to be acquired satisfy the criteria for the selection of tenants stated in the “Report on the Management Structure and System of the Issuer of Real Estate Investment Trust Units and Related Parties” set by TRM submitted on October 30, 2019. 3. Summary of the Assets to be Acquired (1) COMFORIA TAKINOGAWA Property Name COMFORIA TAKINOGAWA Type of Specified Asset Beneficial Interest in Real Estate Trust Trustee of Beneficial Trust (planned) Mitsubishi UFJ Trust and Banking Corporation Expiration Date of Beneficial Trust Contract February 3, 2035 (planned) Location (Residential address) (Note 1) 7-48-2 Takinogawa, Kita-ku, Tokyo Area (Note 1) 963.25 ㎡ (Note 9) Land Type of Ownership Ownership (land ownership interest 87.91%) Completion Date (Note 1) September, 2018 Structure / Number of Floors RC / 15F (Note 1) Gross Floor Area (Note 1) 5,636.19 ㎡ (Note 10) Building Type of Ownership Ownership (sectional ownership interests) Use (Note 1) Apartment building / Storage / Bicycle parking Rentable Units (Note 5) 112 Units Property Management Company (Note 2) Tokyu Housing Lease Corporation (planned) Master Leasing Company (Note 3) Tokyu Housing Lease Corporation (planned) Master Leasing Type (planned) Pass-through type Appraisal Company Japan Real Estate Institute Appraisal Value 3,540,000 thousand yen (Appraisal Date: October 31, 2019) Collateral None Special affairs (Note 4) None The property comprised of mainly single-type rooms and some compact-type rooms is located a 6-minute walk from Nishi-sugamo Station on the Toei Mita Line and a 10-minute walk from Itabashi Station on the JR Saikyo Line. With two stations and two lines available, as well as an approximately 15-minute train ride to Otemachi Station and approximately 3-minute train ride to Ikebukuro Features of the Property Station, it offers excellent access to major business and commercial zones. The property is also located near famous sites for cherry trees in Asukayama Park and Somei Cemetery, the birthplace of the Somei-Yoshino cherry tree, forming a calm residential environment in the surrounding area. In addition, there are many supermarkets, restaurants, etc. in the vicinity of Itabashi Station. Given these features, solid rental demand is expected mainly from singles and DINKS <Disclaimer> This document is a press release to make a public announcement of acquisition of investment assets, and has not been prepared as a solicitation for investment. CRR cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by CRR before undertaking investments and that investments be made at their own discretion and responsibility. 2 families who place a primary emphasis on proximity to the city center, a pleasant residential environment, etc. Summary of Rental Status (as of October 31, 2019) (Note 5) Rentable Area 4,033.37 ㎡ Rented Area 3,865.52 ㎡ Occupancy Rate 95.8% Rentable Units 112 Units Rented Units 109 Units Total Number of Tenants 1 Total Monthly Rent 14,895 thousand yen Deposits, guarantees 19,769 thousand yen Summary of the Engineering Report (Note 6) Reporting Company HI International Consultant Co., Ltd. Report Date October, 2019 Estimated Amount － of Emergency Repair Expenses Estimated Amount 70 thousand yen of Short-Term Repair Expenses Estimated Amount 38,658 thousand yen of Long-Term Repair Expenses Replacement Value 1,181,400 thousand yen Summary of the Earthquake Risk Analysis (Note 7) PML Reporting Company Sompo Risk Management Inc. Report Date November, 2019 PML 4.84% Architect/Contractor/Building Permit Agency, etc. (Note 8) Architect IAO Takeda Architects Associates Co., Ltd. Contractor Goda Koumuten Co., Ltd. Building Permit Agency J Architecture Inspection Center Investment Agency or Structural UHEC (K.K. Toshi Kyojyuu Hyouka Center) Calculation Fitness Judge, etc. (2) COMFORIA HIGASHISHINJUKU STATION FRONT Property Name COMFORIA HIGASHISHINJUKU STATION FRONT Type of Specified Asset Beneficial Interest in Real Estate Trust Trustee of Beneficial Trust (planned) Mitsubishi UFJ Trust and Banking Corporation Expiration Date of Beneficial Trust Contract February 3, 2035 (planned) Location (Residential address) (Note 1) 7-27-12 Shinjuku, Shinjuku-ku, Tokyo Area (Note 1) 636.33 ㎡ Land Type of Ownership Ownership Completion Date (Note 1) March, 2017 Structure / Number of Floors RC / B1F / 12F (Note 1) Gross Floor Area (Note 1) 5,613.58 ㎡ Building Type of Ownership Ownership Use (Note 1) Apartment building / Retail facilities Rentable Units (Note 5) 104 Units <Disclaimer> This document is a press release to make a public announcement of acquisition of investment assets, and has not been prepared as a solicitation for investment. CRR cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by CRR before undertaking investments and that investments be made at their own discretion and responsibility. 3 Property Management Company (Note 2) Tokyu Housing Lease Corporation (planned) Master Leasing Company (Note 3) Tokyu Housing Lease Corporation (planned) Master Leasing Type (planned) Pass-through type Appraisal Company DAIWA REAL ESTATE APPRAISAL CO., LTD Appraisal Value 5,700,000 thousand yen (Appraisal Date: October 31, 2019) Collateral None Special affairs (Note 4) None The property comprised of mainly single-type rooms and some compact-type rooms and other types is located a 1-minute walk from Higashi-shinjuku Station on the Tokyo Metro Fukutoshin Line and the Toei Oedo Line and a 9-minute walk from Shinjuku-sanchome Station on the Tokyo Metro Fukutoshin Line, Tokyo Metro Marunouchi Line and Toei Shinjuku Line. With two stations and four lines available and an approximately 12-minute train ride to Kasumigaseki Station and approximately 6-minute train ride to Shibuya Station, it has excellent access to Features of