for translation purposes only march 27, 2020...appraisal value ¥2,630 million date of value...

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For Translation Purposes Only

March 27, 2020

For Immediate Release

United Urban Investment Corporation

Ikuo Yoshida

Executive Officer

(Securities Code: 8960)

Asset Management Company:

Japan REIT Advisors Co., Ltd.

Norimasa Gaun

President and CEO

Inquiries:

Takehide Sasaki

Chief Financial Officer

TEL: +81-3-5402-3680

Notice Concerning Acquisition of Property

(Hirakata Nagao Logistics Center and three other properties)

United Urban Investment Corporation (“United Urban”) hereby announces that Japan REIT Advisors Co., Ltd.

(“JRA”), the asset management company to which United Urban entrusts asset management services, decided

today to acquire properties as set forth below.

1. Overview of the Acquisition

United Urban will acquire the trust beneficial interest in the following real estate properties (hereinafter

individually or collectively called the “Asset to be Acquired”).

Property

Number

Type of Use

(Note 1) Property Name Location

Scheduled Acquisition

Price (Note 2)

Estimated NOI Yield (Note 3,5)

Estimated NOI

Yield After Depreciation

(Note 4,5)

Scheduled Acquisition

Date

E15 Others

(warehouse) Hirakata Nagao Logistics Center

Hirakata, Osaka

¥2,550 million

4.9% 4.1%

March 31, 2020

C21 Hotels (hotel)

NEST HOTEL KYOTO SHIJOKARASUMA

Kyoto, Kyoto

¥2,010 million

4.5% 4.0%

D32 Residential Properties

(apartment)

UUR Court Shirasagi (Note 6)

Nakano-ku, Tokyo

¥1,442 million

4.2% 3.8%

D33 Residential Properties

(apartment) Court Branche AP

Shinagawa-ku, Tokyo

¥1,270 million

4.3% 3.8%

Total/Average (Note 7) ¥7,272 million

4.6% 4.0% -

(Notes) 1. “Type of Use” determined by United Urban is shown. As for words shown in parentheses, of the types indicated on the real estate

register, the primary type is shown. 2. “Scheduled Acquisition Price” excludes acquisition costs, property taxes, city planning taxes and consumption taxes and other costs. 3. “Estimated NOI Yield” is calculated by (the “Annualized Estimated NOI” / the “Scheduled Acquisition Price”) and expressed as a

percentage rounded to first decimal place. “NOI (Net Operating Income)” means the figure equal to an amount subtracting rental expenses (excluding depreciation and amortization) from rental revenues. “Annualized Estimated NOI” means the estimated NOI for one year from the acquisition by United Urban, which is calculated based on the terms and conditions of leasing after the acquisition by United Urban.

4. “Estimated NOI Yield After Depreciation” is calculated by ((i) an amount deducting “Estimated Depreciation and Amortization” from “Annualized Estimated NOI” / (ii) the “Scheduled Acquisition Price”) and is described as a percentage rounded to first decimal place. “Estimated Depreciation and Amortization” means the estimated depreciation and amortization for one year after the acquisition by United Urban, which is calculated under the straight-line method by applying the depreciation ratio to be derived for each depreciable asset of the Asset to be Acquired in accordance with the useful life thereof, based on the accounting policy of United Urban.

http://www.united-reit.co.jp/

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5. In calculating the Estimated NOI Yield and the Estimated NOI Yield after Depreciation, an impact of Coronavirus (COVID-19) is not considered. For NEST HOTEL KYOTO SHIJOKARASUMA, its rental revenue comes from fixed rent and variable rent and is supposed to be affected by the COVID-19. The Estimated NOI Yield and the Estimated NOI Yield after Depreciation would be 3.8% and 3.3% respectively based on the fixed rent only.

6. The property name will be changed to UUR Court Shirasagi after the acquisition. 7. “Estimated NOI Yield” and “Estimated NOI Yield after Depreciation” shown in the “Average” at the bottom of the table indicate an

weighted average calculated based on the scheduled acquisition price of each Asset to be Acquired.

2. Details of Acquisition

In accordance with the basic asset-management policy and its investment approach prescribed in its Articles

of Incorporation, United Urban will acquire the Asset to be Acquired from the same owner for the purpose

of further enhancing its portfolio.

A. Hirakata Nagao Logistics Center

(1) Reasons for Acquisition

1. Location

The Asset to be Acquired (hereinafter referred to as the “Property” in this section A) is located in the

Osaka Men's Clothing Complex in Hirakata City, Osaka Prefecture. It is closed to the National Route 1,

and is about 3 km and takes 8 minutes from the Second Keihan Highway Hirakata-higashi interchange

(IC). It has good potential as a hub of a wide area delivery for the Keihan area. In fact, the complex is

regarded as a logistics center of the area, and there are many distribution facilities for apparel and food

businesses as well as e-commerce. Moreover, as residential areas spread around the complex, it also has

an advantage of recruiting workers for those facilities.

2. Building, etc.

The Property is a logistics facility completed in 1989, and the interior and exterior were largely renovated

in 2019. It is a multi-story warehouse with a truck berth on the first floor and for specification, it has

5.6m under the beam, column span of 8.4 x 7.8m, and the floor weight capacity of 700kg/m2 in place. It

is suitable as a distribution center for storing and processing products.

3. Tenants, etc.

The Property is CRE, Inc., leased by a company listed on the First Section of the Tokyo Stock Exchange

(hereinafter referred to as "Tenant" in this section A) and is used as a warehouse for rent. The lease

terms with the Tenant expires in 2026, and the stable management is foreseen going forward. In

addition to tenants in apparel and transportation industries, demand from tenants in convenience goods

and confectionery industries are also expected.

(2) Summary of Acquisition

1. Asset to be Acquired : Trust beneficial interest in real estate

2. Property Name : Hirakata Nagao Logistics Center

3. Scheduled Acquisition Price : ¥2,550 million

4. Scheduled Agreement Date : March 31, 2020

(conclusion of the sale and purchase agreement of the trust

beneficial interest)

5. Scheduled Acquisition Date : March 31, 2020 (transfer of the trust beneficial interest)

6. Seller : Domestic company (undisclosed)

7. Financing : Cash on hand (Note) (scheduled)

8. Scheduled Date of Payment : March 31, 2020 (Note) For Financing, please refer to "Method of Settlement and Acquisition Schedule" as described below.

(3) Outline of the Property

Property Name Hirakata Nagao Logistics Center

Type of the Asset Trust beneficial interest in real estate

Trustee Mizuho Trust & Banking Co., Ltd.

Period of Trust Agreement From December 27, 2019 to March 31, 2030

Location Lot number (Note 1) 1-72-1~4 Nagaotanimachi, Hirakata, Osaka

Residential 1-72-1・3 Nagaotanimachi, Hirakata, Osaka (Note 2)

Access

19-minute walk from Nagao Station (JR Katamachi Line)

4-miutes walk from Nagaotani Bus stop (Keihan bus)

Approximately 3km from Hirakata-higashi IC (Second Keihan Highway)

Type (Note 1) Warehouse, Office


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Site Area (Note 1) Land 5,951.88m2

Building 11,374.78m2

Structure and Scale (Note 1) RC・SRC 4F

Type of Ownership Land Proprietary Ownership

Building Proprietary Ownership

Completion Date (Note 1) March 1989

Initial Building Owner D'URBAN Co., Ltd.

Constructor The Zenitaka Corporation

Scheduled Acquisition Price ¥2,550 million

Appraisal Value ¥2,630 million

Date of Value Estimate March 1, 2020

Appraisal Agency

(Appraisal Method) Appraisal by The Tanizawa Sōgō Appraisal Co., Ltd.

Probable Maximum Loss (PML) 8%

Collateral None

Special Notations None

Details of Tenant (Note 3)

Total Number of Tenants 1

Security Deposit Undisclosed (Note 4)

Total Rental Revenues (yearly) Undisclosed (Fixed rent) (Note 4)

Total Leasable Floor Space 11,874.51m2

Total Leased Floor Space 11,874.51m2

Occupancy Ratio 100.0%

Reference

Estimated Annualized NOI (Note 5)

¥125 million

Estimated NOI Yield (Note 5) 4.9% (Notes)

1. Each piece of information in the “Location (Lot number),” “Type,” “Site Area,” “Structure and Scale” and “Completion Date” is described as it appears on the real estate register.

2. “Location (Residential)” shows the location indicated on the real estate register for the building as the residential address has not been assigned.

3. “Details of Tenant” is based on the schedule as of acquisition the Asset to be Acquired. 4. Not disclosed, due to unavoidable circumstances where the consent for the disclosure has not been obtained from the tenant. 5. For the definition of “NOI (Net Operating YIncome)” and “Estimated Annualized NOI”, please refer to Note 3 of “1. Overview of the

Acquisition” above. The estimated occupancy ratio is 100.0%.

B. NEST HOTEL KYOTO SHIJOKARASUMA


1. Location

The Asset to be Acquired (hereinafter referred to as the “Property” in this section B) is in 3 minutes on

foot from the Shijo Station on the Karasuma Subway Line and in 5 minutes from the Karasuma Station

on the Hankyu Kyoto Line.

Kyoto, the location of the Property, is one of the world’s most popular tourist destinations with 17

UNESCO World Heritage sites. The Shijo Karasuma area, where the Property is included, sits in the

center of Kyoto City and particularly the Shijo-dori, a main road of the area connecting the

Kawaramachi-dori in east and the Karasuma-dori in west, forms the busiest retail area in the City. It is

also a location of business with many offices and banks.

As a transportation hub, the Shijo Karasuma area is accessible by the City Subway and the Hankyu Line

and there are many local buses available connecting to various destinations in Kyoto. Demand for

accommodation from domestic and inbound travelers is expected in the area.

2. Building, etc.

The Property was completed in June 2018 and started its operation as “NEST HOTEL KYOTO

SHIJOKARASUMA” in August 2018. It has 95 rooms in total and its majority (82 rooms) is a room

with two beds.

3. Tenants, etc.

The Property is operated by Nest Hotel Japan Corporation (hereafter referred to as the “Hotel Operator”

in this section B). With sufficient track records and expertise, the Hotel Operator manages 14 hotels in


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Japan as of today. The long fixed-term lease agreement (10 years of lease terms, remaining about 8

years) has been concluded with the Hotel Operator, thus stable revenue is expected over the mid to long

term.



2. Property Name : NEST HOTEL KYOTO SHIJOKARASUMA










Property Name NEST HOTEL KYOTO SHIJOKARASUMA




Location

Lot number (Note 1) 551 Sannou-cho, Muromachi-dori Takatsuji-agaru,

Shimogyo-ku, Kyoto, Kyoto

Residential 551 Sannou-cho, Muromachi-dori Takatsuji-agaru,

Shimogyo-ku, Kyoto, Kyoto (Note 2)

Access 3-minute walk from Shijo Station (Karasuma Subway Line)

5-minute walk from Karasuma Station (Hankyu Kyoto Line)

Type (Note 1) Hotel (95 rooms)

Site Area (Note 1) Land 609.28m2

Building 2,358.25m2

Structure and Scale (Note 1) RC 5F



Completion Date (Note 1) June 2018

Initial Building Owner B-Lot Company Limited

Constructor Hokuwa-Corporation




Appraisal Agency



Collateral None

Special Notations

(Administrative laws and regulations)

・The location of the Property falls under the category of Parking Lot

Improvement District, Building Ordinance for Special Purpose Districts

for Co-existence of Workers, and Old City Type Aesthetic District,

therefore, restrictions and standards are stipulated regarding the land use

policy, height and design of buildings, etc.


Total Number of Tenants 1

Security Deposit Undisclosed (Note 4)

Total Rental Revenues (yearly) (Note 4)

Undisclosed

Fixed rent Undisclosed

Variable rent GOP (Note 5)×Tariff (Undisclosed)－Fixed rent





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Reference


¥90 million



2. “Location (Residential)” shows the location indicated on the real estate register for the building as the residential address has not been assigned.

3. “Details of Tenant” is based on the schedule as of acquisition the Asset to be Acquired. 4. Not disclosed, due to unavoidable circumstances where the consent for the disclosure has not been obtained from the tenant. 5. “GOP” stands for Gross Operating Profit, indicating the amount deducting expenses relating to the hotel operations (personnel, utilities,

advertising and other miscellaneous costs) and management service fee payable to the operator (if any) from the amount of sales of the hotel.

6. For the definition of “ Estimated Annualized NOI” and “Estimated NOI Yield”, please refer to Note 3 of “1. Overview of the Acquisition” above. The estimated occupancy ratio is 100.0%.

C. UUR Court Shirasagi


1. Location

The Asset to be Acquired (hereinafter referred to as the “Property” in this section C) is in 6 minutes by

foot from the Saginomiya Station on the Seibu Shinjuku Line. The location of the Property features

good transportation access with 8 minutes to the Takadanobaba Station on JR Line and the Seibu

Shinjuku Station on the Seibu Shinjuku Line. The Property sits in a quiet residential area with schools,

parks, etc., offering a comfort living for family.

2. Building, etc.

The Property is a leased apartment building completed in 2002. There are 47 units in total and all is

59.9m2 of area with two bedrooms, living room, dining room and kitchen (2LDK), which is suitable for

family. Large renovation work for exterior was implemented in 2015 and the building and property

management of the Property has been properly conducted.

3. Tenants, etc.

Good transportation access and living environment of the Property has been attracting family households

and the stable revenue at high occupancy rate continues to be expected.



2. Property Name : UUR Court Shirasagi










Property Name UUR Court Shirasagi




Location Lot number (Note 1) 1-697-1 Shirasagi, Nakano-ku, Tokyo

Residential 1-13-7 Shirasagi, Nakano-ku, Tokyo

Access 6-minute walk from Saginomiya Station (SEIBU Railway Shinjuku Line)

Type (Note 1) Apartment (47 doors) (attached building: garbage storage)

Site Area (Note 1) Land 2,849.08m2

Building 2,978.00m2 (attached building: 11.54m2)

Structure and Scale (Note 1) RC 7F (attached building: RC)



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Completion Date (Note 1) February 2002

Initial Building Owner Individual

Constructor Hazama Corporation




Appraisal Agency



Collateral None



Total Number of Tenants (Note 3) 45

Security Deposit ¥15 million

Total Rental Revenues (yearly) ¥69 million




Reference


¥60 million



2. “Details of Tenant” is based on the schedule as of acquisition the Asset to be Acquired. 3. A pass-through-type master lease agreement will be concluded between the trustee and the master lessee with regard to the Property.

Therefore, the “Total Number of Tenants” figure is stated by aggregating the number of end tenants subleased to by the master lessee. 4. For the definition of “ Estimated Annualized NOI” and “Estimated NOI Yield”, please refer to Note 3 of “1. Overview of the


D. Court Branche AP


1. Location

The Asset to be Acquired (hereinafter referred to as the “Property” in this section D) is in 2 minutes on

foot from the Ebara-machi Station on the Tokyu Oimachi Line, and in seven minutes from the Hatanodai

Station on Tokyu Ikegami Line. The Property stands at the corner of the Ebara-machi shopping street in

the southern area of the Ebara-machi Station and the Tachikawa River pedestrian path. A large variety

of shops on the neighborhood shopping street offers living convenience to the area and it is bustling with

people based in the area. In addition, the Ebara-machi Station is connected to the Oimachi Station on

the Tokyo Rinkai Line and the JR Keihin Tohoku Line in 7 minutes as well as to the Gotanda Station on

the JR Yamanote Line and the Toei Asakusa Line in 7 minutes.

2. Building, etc.

The Property is a leased apartment building completed in 2006 with 41 units in 8 floors. Majority of the

rooms is designed for 1K type (22.18 – 35.27m2 of area) and there are also 1LDK and 2DK unit types

with 45.98m2 – 61.56m2 of area. The appearance of the building has an excellence in design and it

received the Good Design Award in 2007.

3. Tenants, etc.

Mobile phone shop on the first floor and residents on the second floor and above are occupying as tenants

in the Property. As it sits at the corner of shopping street and the pedestrian path, the Property provides

high living convenience and visibility in the area. Therefore, stable demand from residents as well as

retail and office tenants continues to be expected.


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2. Property Name : Court Branche AP










Property Name Court Branche AP




Location Lot number (Note 1)

5-1295-1・10~12・29 Nakanobu, Shinagawa-ku,

Tokyo

Residential 5-8-2 Nakanobu, Shinagawa-ku, Tokyo

Access 2-minute walk from Ebara-machi Station (Tokyu Ōimachi Line)

7-minute walk from Hatanodai Satation (Tokyu Ikegami Line)

Type (Note 1) Apartment (41 doors), Store, Office (attached building; shed)

Site Area (Note 1) Land 599.07m2

Building 1,786.90m2 (attached building: 6.07m2)

Structure and Scale (Note 1) SRC 8F (attached building: S)



Completion Date (Note 1) March 2006

Initial Building Owner Individual

Constructor Daimei Kensetsu CO.,LTD.




Appraisal Agency



Collateral None



Total Number of Tenants (Note 3) 41

Security Deposit ¥18 million

Total Rental Revenues (yearly) ¥68 million

Total Leasable Floor Space 1,480.17 m2

Total Leased Floor Space 1,444.90 m2


Reference


¥55 million



2. “Details of Tenant” is based on the schedule as of acquisition the Asset to be Acquired. 3. A pass-through-type master lease agreement will be concluded between the trustee and the master lessee with regard to the Property.

Therefore, the “Total Number of Tenants” figure is stated by aggregating the number of end tenants subleased to by the master lessee. 4. For the definition of “ Estimated Annualized NOI” and “Estimated NOI Yield”, please refer to Note 3 of “1. Overview of the



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3. The Seller’s Profile

The seller is a domestic company. Details of the seller are not disclosed as the relevant consent has not

been obtained. As of today, the seller falls under neither the category of “interested parties, etc.” (the

“Interested Party”) under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198

of 1951, as amended) nor the category of the sponsor/stakeholder (“Sponsor/Stakeholder”) under the

self-imposed rules (rules for conflicts of interest) of JRA. In addition, United Urban and JRA have no

significant capital ties, personal relationships and transactions with the seller, and the seller does not fall

under a related party of United Urban and JRA.

4. Aspects of the Owners of the Property and Others

The Asset to be Acquired will not be acquired from special related parties of United Urban or JRA.

5. Outline of Intermediary

(1) Outline of Broker Company Name Marubeni Real Estate Management Co., Ltd.

Address 3・4F Shiba 520 Building, 5-20-6 Shiba, Minato-ku, Tokyo

Representative Ryutaro Yoshida, Representative Director

Principal Business

1. Leasing, management, operation and administration of real estate (office building, retail property, dormitory, car parking, restaurant, warehouse, etc. and the trust beneficial interest thereof.).

2. Purchase and sale, exchange, brokerage, and mediation of real estate (land and building) etc., and agency and consultation of these.

3. Designing, management and contract work for construction work.

Capital ¥100 million (As of March 31, 2019)

Date of Foundation August, 1960

Relationship with United Urban or JRA

Capital Ties There are no significant capital ties.

Personal Relationship There are no significant personal relationships.

Business Relationship

Marubeni Real Estate Management Co., Ltd. acted as a broker for acquisition and sales assets in the past. Marubeni Real Estate Management Co., Ltd. serves as master lessee and has been entrusted the property management and building management of the multiple properties held by United Urban. In addition, Marubeni Real Estate Management Co., Ltd. is one of the tenants of Shiba 520 Building, a property held by United Urban.

Standing to Related Party

Marubeni Real Estate Management Co., Ltd. falls under the categories of both the Related Parties and the Sponsor/Stakeholder, and therefore, JRA is abiding by the predetermined limitations and procedures of JRA (Note).

(Note) In view of avoiding the conflicts of interest, JRA has established the restrictions and procedures for transactions, etc. between

United Urban and Sponsor/Stakeholder in its internal rules on transactions (including a brokerage of a sale of the Asset to be Sold) with Sponsor/Stakeholder, which are called the “Investment Committee Rules on Transactions with Sponsor/Stakeholder.”

The specific rules include the following: (i) When acquiring assets from Sponsor/Stakeholder, the acquisition price shall be the same as or less than the appraisal value; (ii) When selling assets to Sponsor/Stakeholder, the sale price shall be the same as or more than the appraisal value; and (iii) When Sponsor/Stakeholder is involved in the brokerage, etc. of acquisition or sale of assets with good reason, the commission for the acquisition or sale of assets shall be not more than 3% of the acquisition or sale price.

In addition, specific procedures set forth are that, when United Urban and Sponsor/Stakeholder engage in a transaction, etc., the deliberation and resolution of the Investment Committee (the JRA’s autonomous body that enters into deliberations and makes decisions on asset management and performs asset management evaluations, etc.), which includes a chairman and an outside expert, shall be required, and that the resolution must be passed by the unanimous agreement of the members of Investment Committee who have voting rights (a member of the Investment Committee who has a special interest in the resolution may not participate in the vote). The agenda of the Investment Committee are to be deliberated at the Compliance Committee, the chairman of which is Chief Compliance Officer who is in charge of compliance duties, and which includes an outside expert, from the view point of the compliance with laws and regulations, guidelines, internal rules, etc.

The same shall apply to the transactions with Sponsor/Stakeholder hereinafter.

(2) Amount and Details of Commission

¥218,160 thousand (excluding consumption taxes, etc.)


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6.Transactions with Interested Party and Sponsor/Shareholder Broker Property management

: Marubeni Real Estate Management Co., Ltd.

Marubeni Real Estate Management Co., Ltd. falls under the categories of both the Related Party and the Sponsor/Stakeholder, and therefore, JRA is abiding by the predetermined limitations and procedures of JRA. Concerning the Asset to be Acquired, United Urban will pay Marubeni Real Estate Management Co., Ltd. ¥218,160 thousand (excluding consumption taxes, etc.) as a brokerage commission.

7. Method of Settlement and Acquisition Schedule

(1) Method of Settlement

As of today, the payment to the seller will be a lump-sum payment upon the delivery of the Property, using

transfer funds of Pacific Marks Esaka (Note).

(Note) For details, please refer to the press release “Notice Concerning Sale of Property (Pacific Marks Esaka)” dated today.

(2) Acquisition Schedule

The schedule for acquisition of the Asset to be Acquired is as follows.

Decision of acquisition March 27, 2020

Conclusion of sale and purchase agreement of trust beneficial interest March 31, 2020 (scheduled)

Transfer of trust beneficial interest March 31, 2020 (scheduled)

Payment

8. Outlook of Operating Condition

United Urban does not make any changes to the business forecasts for the thirty-third fiscal period (period

ending May 31, 2020) and the thirty-fourth fiscal period (period ending November 30, 2020) as the effect of

the acquisition of the Asset to be Acquired is not significant.


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9. Summaries of Appraisal Report


Appraisal Value ¥2,630,000 thousand

Appraisal Agency The Tanizawa Sōgō Appraisal Co., Ltd.


(thousands of yen, unless otherwise indicated)

Item Details Grounds

Income approach price 2,630,000 －

Price by Direct Capitalization Method 2,620,000 －

(1) Total income

(Total effective profit: 1+2+3+4-5-6) Undisclosed (Note) －

1. Potential total profit

(rental revenues, common area

maintenance fees)

Undisclosed (Note) －

2. Utility revenues Undisclosed (Note) －

3. Parking revenues Undisclosed (Note) －

4. Other revenues Undisclosed (Note) －

5. Losses from vacancies Undisclosed (Note) －

6. Bad debt losses Undisclosed (Note) －

(2) Total expenses

(7+8+9+10+11+12+13+14) Undisclosed (Note) －

7. Administrative and maintenance

fees Undisclosed (Note) －

8. Utility costs Undisclosed (Note) －

9. Repairs Undisclosed (Note) －

10. Property and other tax Undisclosed (Note) －

11. Property management fees Undisclosed (Note) －

12. Advertising expenses for tenants,

etc. Undisclosed (Note) －

13. Casualty insurance expenses Undisclosed (Note) －

14. Other expenses Undisclosed (Note) －

(3) Net operating income (NOI: (1)-(2)) 123,925 －

(4) Operating profit of lump-sum money Undisclosed (Note) －

(5) Capital expenditures (including

routine repairs) Undisclosed (Note) －

(6) Net cash flow (NCF: (3)+(4)-(5)) 120,661 －

(7) Cap rate 4.6% Assessed by comparing multiple transaction yields in neighboring regions or similar regions within the same supply and demand range.

Price by discounted cash flow method 2,640,000 －

Discount rate (1st year to 5th year) 4.5% －

Discount rate (6th year to 7th year) 4.6%

Discount rate (after 8th year) 4.7%

Terminal cap rate 4.8% －

Cost approach price 2,490,000 Land ratio: 81.2%, Building ratio: 18.8%

Other specific matters the appraisal agency has

paid attention in appraising the property None

(Note) JRA has deemed that disclosing this information would have an adverse effect on United Urban’s competitive position and may harm the interests of the unitholders. Therefore, this information will not be disclosed.


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(1) Total income

(Total effective profit: 1+2+3+4-5-6) Undisclosed (Note) －



maintenance fees)

Undisclosed (Note) －

2. Utility revenues Undisclosed (Note) －

3. Parking revenues Undisclosed (Note) －

4. Other revenues Undisclosed (Note) －

5. Losses from vacancies Undisclosed (Note) －

6. Bad debt losses Undisclosed (Note) －

(2) Total expenses

(7+8+9+10+11+12+13+14) Undisclosed (Note) －


fees Undisclosed (Note) －

8. Utility costs Undisclosed (Note) －

9. Repairs Undisclosed (Note) －

10. Property and other tax Undisclosed (Note) －

11. Property management fees Undisclosed (Note) －


etc. Undisclosed (Note) －

13. Casualty insurance expenses Undisclosed (Note) －

14. Other expenses Undisclosed (Note) －


(4) Operating profit of lump-sum money Undisclosed (Note) －


routine repairs) Undisclosed (Note) －

(6) Net cash flow (NCF: (3)+(4)-(5)) 129,585 －



Discount rate (1st year to 9th year) 4.0% －

Discount rate (after 10th year) 4.1%


Cost approach price 3,710,000 Land ratio: 78.3%, Building ratio: 18.4% FF&E 3.3%



(Note) JRA has deemed that disclosing this information would have an adverse effect on United Urban’s competitive position and may harm the

interests of the unitholders. Therefore, this information will not be disclosed.


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(1) Total income

(Total effective profit: 1+2+3+4-5-6) 98,374 －



maintenance fees)

91,992 Assessed based on the competitiveness of the Asset to be Acquired, the current lease status, the expected date of move-in and move-out, and the market environment.

2. Utility revenues 0 Assessed with reference to similar cases, etc.

3. Parking revenues 8,208 Assessed with reference to historical trends, etc.

4. Other revenues 4,004 Key money and renewal fees are assessed based on the competitiveness of the Asset to be Acquired, market environment, and historical trends.

5. Losses from vacancies 5,830 Assessed based on the competitiveness of the Asset to be Acquired, historical trends, market environment, etc.

6. Bad debt losses 0 Not recorded as it is secured by security deposit, etc.

(2) Total expenses

(7+8+9+10+11+12+13+14) 21,723 －


fees 4,054

Assessed by taking into consideration the content of the outsourcing contract and past performance.

8. Utility costs 1,013 Assessed with reference to historical trends, etc.

9. Repairs 4,013 Assessed in consideration of the state of building maintenance and management, quality, age, etc.

10. Property and other tax 6,377 Assessed based on the documents on taxes and public dues, considering the burden adjustment measures.

11. Property management fees 1,967 Assessed based on the content of the outsourcing contract.


etc. 3,740

Assessed based on the content of the outsourcing contract and past performance.

13. Casualty insurance expenses 65 Based on the amount of insurance claims and the terms of the contract.

14. Other expenses 491 Assessed based on similar cases, etc.

(3) Net operating income (NOI: (1)-(2)) 76.650 －

(4) Operating profit of lump-sum money 219

After assessing the amount of security deposit, etc. at the time of new contract based on the competitiveness of the Asset to be Acquired and the market environment, etc., an investment yield of 1% is assessed based on the recent rate of return of financial assets, future economic forecast, etc.


routine repairs) 4,950

Assessed in consideration of the state of building maintenance and management, quality, age of the building, and grade of exclusive use.

(6) Net cash flow (NCF: (3)+(4)-(5)) 71,920 －



Discount rate 4.3% －


Cost approach price 1,640,000 Land ratio: 85.4, Building ratio: 14.6%




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D. Court Branche AP








(1) Total income

(Total effective profit: 1+2+3+4-5-6) 69,152 －



maintenance fees)

68,892 Assessed based on the competitiveness of the Asset to be Acquired, the current lease status, the expected date of move-in and move-out, and the market environment.

2. Utility revenues 0 Assessed with reference to historical trends, etc.

3. Parking revenues 576 Assessed with reference to historical trends, etc.

4. Other revenues 3,416 Key money and renewal fees are assessed based on the competitiveness of the Asset to be Acquired, market environment, and historical trends.

5. Losses from vacancies 3,732 Assessed based on the competitiveness of the Asset to be Acquired, historical trends, market environment, etc.

6. Bad debt losses 0 Not recorded as it is secured by security deposit, etc.

(2) Total expenses

(7+8+9+10+11+12+13+14) 13,253 －


fees 2,505

Assessed by taking into consideration the content of the outsourcing contract and past performance.

8. Utility costs 639 Assessed with reference to historical trends, etc.

9. Repairs 1,547 Assessed in consideration of the state of building maintenance and management, quality, age, etc.

10. Property and other tax 3,636 Assessed based on the documents on taxes and public dues, considering the burden adjustment measures.

11. Property management fees 1,383 Assessed based on the content of the outsourcing contract.


etc. 2,463

Assessed based on the content of the outsourcing contract and past performance.

13. Casualty insurance expenses 40 Based on the amount of insurance claims and the terms of the contract.

14. Other expenses 1,037 Assessed based on past performance, contract terms, etc.


(4) Operating profit of lump-sum money 177

After assessing the amount of security deposit, etc. at the time of new contract from the competitiveness of the Asset to be Acquired and the market environment, etc., an investment yield of 1% is assessed based on the recent profit rate of financial assets, future economic forecast, cash ratio, etc.


routine repairs) 2,730

Assessed in consideration of the state of building maintenance and management, quality, age of the building, and grade of exclusive use.

(6) Net cash flow (NCF: (3)+(4)-(5)) 53,346 －



Discount rate 4.1% －


Cost approach price 1,280,000 Land ratio: 79.8%, Building ratio: 20.2%



【Attached Materials】

1. Portfolio Summary

2. Photo and Map


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Reference Material 1

Portfolio Summary

As of March 31, 2020 (Scheduled)

[Distribution by Type of Use]

Type of Use Number of Properties

(Note 1)

(Scheduled) Acquisition Price (Note 2)

Amount (millions of yen) Ratio

Retail Properties 35 192,654 29.2%

Office Buildings 35 192,174 29.1%

Hotels 22 160,936 24.4%

Residential Properties 24 49,778 7.5%

Others 15 64,650 9.8%

Total 128 660,192 100.0%

[Distribution by Geographical Location]

Location (Note 3) Number of Properties (Scheduled) Acquisition Price (Note 2)

Amount (millions of yen) Ratio

6 Central Wards of Tokyo 28 136,691 20.7%

23 Wards of Tokyo 14 47,503 7.2%

Tokyo Metropolitan Area 34 223,145 33.8%

Other Regions 52 252,853 38.3%

Total 128 660,192 100.0%

(Notes) 1. Each of “maricom-ISOGO / SYSTEM PLAZA YOKOHAMA (Site),” a retail property/office building complex and “Shin-Osaka Central

Tower” and “SS30”, an office building/hotel complex have been counted as one property for each type of use, while counted as one property in the total row, respectively. Therefore, the number of properties of each type does not add up to the total.

2. Figures have been rounded to the nearest unit. There is the possibility the aggregated figures shown are not the same as the actual figures. The percentage is shown by rounding down to the nearest digit and there is the possibility that the aggregated figures are not the same as the actual total figures.

3. The definition of geographical investment location is as set forth below.

Tokyo Metropolitan Area (Note a) Other Regions (Note b)

Six Central wards of Tokyo 23 wards of Tokyo Tokyo metropolitan area Major Japanese cities including government designated cities

(excluding those in Tokyo Metropolitan Area) and the surrounding areas thereof

Chiyoda-ku, Minato-ku, Chuo-ku, Shinjuku-ku,

Shibuya-ku, and Shinagawa-ku

23 wards of Tokyo except for six central wards of

Tokyo

Tokyo metropolitan area excluding 23 wards of

Tokyo

(Notes) a. Tokyo Metropolitan Area refers to Tokyo as well as Kanagawa, Chiba, Saitama, Ibaraki, Gunma, Tochigi and Yamanashi

prefectures. b. Other Regions includes Osaka Area (Osaka Prefecture, Kyoto Prefecture and Hyogo Prefecture), Nagoya Area (Aichi Prefecture, Mie

Prefecture and Gifu Prefecture) and Other cities (excluding Tokyo Metropolitan Area, Osaka Area and Nagoya Area). 4. Property to be acquired contained in the above charts is as follows;

Type of Use

Type Location Property Name Scheduled

Acquisition Date

Scheduled Acquisition Price

Amount (millions of yen)

Ratio

Hotels Hotel Other

Regions (Osaka)

NEST HOTEL KYOTO

SHIJOKARASUMA

March 31, 2020

2,010 0.3%

Residential Properties

Apartment 23 Wards of Tokyo

UUR Court Shirasagi 1,442 0.2%

Residential Properties

Apartment 6 Central Wards of

Tokyo Court Branche AP 1,270 0.2%

Others Warehouse Other

Regions (Osaka)

Hirakata Nagao Logistics Center

2,550 0.4%

5. The latest information about United Urban’s portfolio is disclosed on United Urban’s website. https://www.united-reit.co.jp/en/portfolio/index.html


https://www.united-reit.co.jp/en/portfolio/index.html

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Reference Material 2

Photo and Map


[Photo]

[Map]


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[Photo]

[Map]


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[Photo]

[Map]


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D. Court Branche AP

[Photo]

[Map]


for translation purposes only march 27, 2020...appraisal value ¥2,630 million date of value...

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