[For Translation Purposes Only] December 5, 2019 For Immediate Release To Whom It May Concern Nomura Real Estate Master Fund, Inc. Securities Code: 3462 Shuhei Yoshida, Executive Director Asset Management Company: Nomura Real Estate Asset Management Co., Ltd. Norio Ambe, President & Chief Executive Officer Inquiries: Hiroshi Ishigooka Executive Officer Head of NMF Investment Management Group TEL +81-3-3365-8767 [email protected] Notice Concerning Property Acquisition Nomura Real Estate Master Fund, Inc. (“NMF” or the “Fund”) announces the decision made today by Nomura Real Estate Asset Management Co., Ltd., a licensed asset management company retained by the Fund to provide asset management services, to acquire properties (the “Acquisitions”), as described below. 1. Overview of the Acquisitions Date of Anticipated Scheduled Purchase and Acquisition No. Property Name Use Date of Seller Sale Price Acquisition Agreement (¥ million) (Note 1) 1 PMO Akihabara Kita Office 8,450 January 7, 2020 2 PMO Higashi-Shinbashi Office 4,730 3 PMO Hamamatsucho Office 4,380 April 2, 2020(Note 2) 4 GEMS Sangenjaya Retail Nomura 1,815 Real December 5, March 2, Estate 5 Landport Higashi-Narashino 11,872 Logistics 2019 2020 Develop ment 6 PROUD FLAT Shibuya Tomigaya Residential Co., Ltd. 3,960 January 7, 7 PROUD FLAT Miyazakidai Residential 2020 1,390 8 PROUD FLAT Asakusabashi III Residential 1,230 9 PROUD FLAT Togoshi-Koen March 10, 2,580 Residential 2020 Total 40,407 Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to the property acquisition, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of securities in the United States will be made in connection with the above-mentioned transactions. - 1 - (Note 1) The amounts stated exclude acquisition-related costs, property tax, city planning tax, consumption tax and local consumption tax. (Note 2) The scheduled date of acquisition may be changed to another date (which shall be limited to a date in March 2020) that is separately agreed upon by the Seller and the Purchaser. (Note 3) There is no brokerage involved in the acquisition of the assets to be acquired. (Note 4) The assets to be acquired are a trust beneficial interest in trust of real estate as for PROUD FLAT Shibuya Tomigaya and Landport Higashi-Narashino, and real estate properties as for the other assets to be acquired. (Note 5) The assets to be acquired are planned to be acquired though the proceeds from the issuance of new investment units (see Note 6), new anticipated borrowings and cash on hand. (Note 6) For details of the issuance of new investment units, please refer to the press release, “Notice Concerning the Issuance of New Investment Units and Secondary Offering of Investment Units” dated today. The above nine properties are individually or collectively referred to hereinafter as the “Assets to be Acquired.” 2. Reasons for the Acquisitions The Fund determined that acquiring the Assets to be Acquired would help secure stable income and steady growth of the Fund’s portfolio over the medium to long term, in line with the asset management objectives and policies specified in the Fund’s Articles of Incorporation. 3. Summary of the Assets to be Acquired (1) PMO Akihabara Kita Strengths of the Asset to be Acquired The main strengths of the Asset to be Acquired are as follows. ・ The Property is a seven-minute walk from “Akihabara” Station on the JR Yamanote, Sobu and Keihin-Tohoku Lines, the Tokyo Metro Hibiya Line, and the Tsukuba Express of Metropolitan Intercity Railway Company, and a six-minute walk from “Suehirocho” Station on the Tokyo Metro Ginza Line. Accordingly, with access to two stations on six lines, the Property is excellent for convenient transportation to major business areas in central Tokyo and is highly convenient for commuting from a wide area. ・ The area surrounding “Akihabara” Station, where the Property is located, is concentrated with the head offices of major corporations and corporate groups of large enterprises, the Tokyo branches of regional enterprises that appreciate superior convenience in respect of transportation and companies engaged in the chemical and textile industries. On the other hand, in and after 2005, large-scale office buildings were supplied through redevelopment and IT-related companies engaged in software development moved in, improving the area’s reputation as an office area and stable demand from a wide range of tenants can be expected. ・ The standard floor leasable space of the Property is approximately 215 tsubo, which is a rare scale among the competing properties in the area where the property is located. The Property has high equipment specifications, including a standard floor ceiling height of 2,800 mm, an electric capacity of 60 VA/m2 and a five-stage security system. In addition, the Property well responds to the BCP (Business Continuity Plan) with the installation of an emergency power generator (emergency power supply: 10 KVA/floor, 24 hours) for tenant exclusively owned areas. Summary of the Asset to be Acquired Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to the property acquisition, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of securities in the United States will be made in connection with the above-mentioned transactions. - 2 - Property Name PMO Akihabara Kita Type of Asset Real estate Location Registry 1-245-1 Taito, Taito Ward, Tokyo and 1 other lot (Note 1) Street 1-31-7 Taito, Taito Ward, Tokyo 7-minute walk from Akihabara Station on the JR Yamanote Line, Sobu Line, Keihin-Tohoku Line, the Tokyo Metro Hibiya Line and the Tsukuba Express of Access Metropolitan Intercity Railway Company 6-minute walk from Suehirocho Station on the Tokyo Metro Ginza Line Completion Date (Note 1) December 14, 2018 Use (Note 1) Office Structure (Note 1) Flat-roofed steel-frame, 8F Architect Nomura Real Estate Development Co., Ltd., First-Class Architect Office Builder Toda Corporation Tokyo Branch Building Inspection Agency Urban Housing Evaluation Center Land 1,021.96 m2 Area (Note 1) Floor Area 6,367.04 m2 Type of Land Ownership Ownership Building Ownership Building Coverage Ratio 100% (Note 2) Floor Area Ratio 600% Collateral None Property Management Nomura Real Estate Development, Co., Ltd. Company (Note 3) Master Leasing Company Nomura Real Estate Development, Co., Ltd. (Note 4) Type of Master Leasing Pass through (Note 4) 4.08% (Based on the Earthquake PML Appraisal Report (as of November 2019) Seismic Risk (PML) (Note 5) by Sompo Risk Management Inc.) ・The property management company and master leasing company, Nomura Real Notes Estate Development Co., Ltd., is considered a related party under the Act on Investment Trusts and Investment Corporations (“Investment Trust Act”). Anticipated ¥8,450 million Acquisition Price ¥8,930 million (Based on the capitalization approach and as of November 1, 2019) Appraisal Value and Method (Appraiser: Japan Real Estate Institute) Appraisal NOI (Note 6) ¥321 million Leasing Status (As of August 31, 2019) (Note 7) Total Number of Tenants 3 Total Rental ¥419 million (Including common area management fee) Income(Annual) Security Deposits ¥360 million Occupancy Rate 100.0% Total Leased Floor Space 4,996.37 m2 Total Leasable Floor Space 4,996.37 m2 Historical Occupancy Rates August August August August August (Note 8) 2015 2016 2017 2018 2019 Disclaimer: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to the property acquisition, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer, public or otherwise, of securities in the United States will be made in connection with the above-mentioned transactions. - 3 - — — — — 100.0% (Note 1) Location and Other Items Location (registry), Completion Date, Use, Structure and Area are based on the information in the real estate registry. (Note 2) Building Coverage Ratio The Asset to be Acquired is located in a commercial zone where the building coverage ratio is 80% in principle. However, because the Asset to be Acquired is a certified fireproof building in a fire prevention zone, the applied coverage ratio is 100%.