October 10, 2019 For Translation Purpose Only Real Estate Investment Trust Securities Issuer Tosei Reit Investment Corporation 4-2-3 Toranomon, Minato-ku, Tokyo Representative: Takayoshi Kitajima, Executive Director (Securities Code: 3451) Asset Management Company Tosei Asset Advisors, Inc. Representative: Akihiko Fujinaga, President & Representative Director Inquiries: Keiji Miyaishi General Manager, Treasury & Planning Department, REIT Division (TEL: +81-3-3433-6320) Notice Concerning Acquisition of Real Estate Trust Beneficiary Rights and Leases (Total of 12 Properties) Tosei Reit Investment Corporation (“Tosei Reit”) announces that its asset management company Tosei Asset Advisors, Inc. (the “Asset Management Company”) today decided on acquisition of the real estate trust beneficiary rights of the following 12 properties (the “to-be-acquired assets”) and corresponding commencement of leasing, as described below. Furthermore, the decision on acquisition of the to-be-acquired assets, with the exception of corresponding commencement of leasing was subject to approval of Tosei Reit’s board of directors, pursuant to the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951; including amendments thereto) (the “Investment Trusts Act”) and the Asset Management Company’s related- party transaction rules. １． Overview of the Acquisition Anticipated Anticipated Appraisal acquisition Property Property acquisition NOI yield Type Location price (JPY Brokerage number name date (%) million) (Note 1) (Note 3) (Note 2) Yokohama- Kannai Wise December О-13 shi, 2,050 5.23 Building 2, 2019 Kanagawa Office Hon-Atsugi Atsugi-shi, November О-14 Tosei 880 6.30 Kanagawa 5, 2019 Building Subtotal (2 properties) - - 2,930 - None T's garden Kashiwa-shi, December Rd-23 2,770 5.45 Kitakashiwa Chiba 2, 2019 Century Saitama-shi, Residential Rd-24 980 5.86 Urawa Saitama properties November T's garden Tama-shi, Rd-25 5, 2019 850 6.13 Nagayama Tokyo Rd-26 Grandeur Fujimi-shi, 822 5.81 Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 1 Fujimino Saitama T's garden Kodaira-shi, Rd-27 Hitotsubashi- 760 5.79 Tokyo gakuen T's garden Kawaguchi- Rd-28 750 6.05 WarabiⅡ shi, Saitama T's garden Kawaguchi- Rd-29 655 5.91 WarabiⅢ shi, Saitama T's garden Kashiwa-shi, Rd-30 595 5.75 Kashiwa Chiba Suning Matsudo-shi, Rd-31 482 5.24 Kitamatsudo Chiba T's garden Nishitokyo- Rd-32 310 5.71 Tanashi shi, Tokyo Subtotal (10 properties) - - 8,974 - Total／Average (12 properties) - - 11,904 5.68 (1) Contract date : October 10, 2019 (2) Scheduled acquisition date : Please refer to “Anticipated acquisition date” in the table above. (3) Sellers : Please refer to “4. Seller profile” later in this document. (4) Acquisition financing : Proceeds from the issuance of new investment units for which resolution was passed at the meeting of the board of directors of Tosei Reit held on October 10, 2019 (Note 4), loans (Note 5), and funds on hand (5) Settlement method : Payment of entire amount at time of delivery (Note 1) “Anticipated acquisition date” is the anticipated acquisition date stated in the real estate trust beneficiary right sale and purchase contract for the to-be-acquired asset. The anticipated acquisition date is subject to change in accordance with the real estate trust beneficiary right sale and purchase contract. The same applies hereinafter. (Note 2) “Anticipated acquisition price” is the sale and purchase price stated in the real estate trust beneficiary right sale and purchase contract for the to-be-acquired asset. The sale and purchase price exclude consumption tax, local consumption tax and various expenses required for the acquisition. The same applies hereinafter. (Note 3) “Appraisal NOI yield” is the figure arrived at when net operating income (NOI) is divided by the anticipated acquisition price for the to-be-acquired asset, rounded to two decimal places. In addition, “NOI” refers to the total amount of net operating income based on the direct capitalization method stated in the real estate appraisal report as of August 31, 2019, the effective date of the appraisal (date of value). (Note 4) For details, please refer to the “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” dated today. (Note 5)For details, please refer to the “Notice Concerning Debt Financing” dated today. 2. Reason for asset acquisition and leasing The decision was made to acquire the to-be-acquired assets (12 properties), in an aim to secure stable revenue over the medium to long term and achieve steady growth of assets under management as provided in “Basic Policy for Asset Management” in the Articles of Incorporation. Tosei Reit has evaluated the following characteristics in deciding the acquisition. Property Property name Characteristics of property number О-13 Kannai Wise Building ・ The property is located an approximate 2-minute walk from Kannai Station on the JR Keihin Tohoku Line/Negishi Line. As it is on the south side of the Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 2 station and within walking distance to Kannai Station and Isezaki-chojamachi Station on the Yokohama Municipal Subway Blue Line as well, it allows for extremely good access to stations. ・The property enjoys excellent access to central Tokyo and stations where the Shinkansen makes stops as it takes approximately 5 minutes from Kannai Station on the JR Keihin Tohoku Line/Negishi Line to Yokohama Station and approximately 35 minutes to Tokyo Station; as well as approximately 14 minutes to Shin-Yokohama Station from Kannai Station via the Yokohama Municipal Subway Blue Line. ・The first floor of the property is used by retail stores and the second floor or higher is used as office. There is a multi-story automated parking lot for 41 vehicles. ・Although the property is aged, proper maintenance and management, such as work to change the use of the first floor in addition to installation of an OA- compatible raised floor, renovation of bathrooms and resealing of external walls in 2018, have secured a certain degree of quality. О-14 Hon-Atsugi Tosei Building ・The property is located an approximate 12-minute walk from Hon-Atsugi Station on the Odakyu Odawara Line. It enjoys relatively good access to central Tokyo as it is three stops (approx. 16 minutes) from Hon-Atsugi Station on the Odakyu Odawara Line to Machida Station, a terminal station, and eight stops (approx. 50 minutes) to Shinjuku Station using a rapid express train. To Yokohama Station, it takes approximately 40 minutes by switching to the Sotetsu Main Line at Ebina Station on the Odakyu Odawara Line. ・The property offers easy access to major arterial roads and the road on its southern side connects with National Route 246 and National Route 129. In addition, with the Atsugi IC of the Tomei Expressway and the Ebina IC of the Metropolitan Inter-City Expressway within 3 km, access to ICs is excellent. ・Since it is situated further down from the north exit of Hon-Atsugi Station in an area where many mid- to high-rise office buildings, etc. stand, the property can benefit from office demand of the area. ・The property is comprised of a seven-story high-rise office building and a multi-story parking lot, and has leasable spaces with no pillars allowing for flexible office layout. Rd-23 T's garden Kitakashiwa ・The property is located an approximate 12-minute Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 3 walk from Kita-Kashiwa Station on the JR Joban Line. It offers relatively good access to central Tokyo as it takes approximately 50 minutes to Otemachi Station from Kita-Kashiwa Station (direct train on the JR Joban Line and Tokyo Metro Chiyoda Line); and a little over 30 minutes to Ueno Station and 45 minutes to Tokyo Station by switching to a rapid service train on the JR Joban Line (Ueno-Tokyo Line) at Kashiwa Station (next to Kita-Kashiwa Station). ・The property is former company housing which was fully renovated (value enhancement work) and converted into a general rental apartment comprised of four buildings (No. 1 building: 9 stories, No. 2 building: 13 stories, No. 3 building: 4 stories (total of 149 units), mailbox building: 1 story). In addition, some of the residential units were changed to a kids’ room, party room and study room (partial management office) as common-use areas of the three buildings and made available to residents free of charge to provide enhanced services facilities. ・The premises is highly secured as entering requires passing through the self-locking mailbox building standing along the road, and the gate for vehicles also has an auto-lock system and is normally closed.