Japan Retail Fund Investment : Notice Concerning Acquisition of a Trust Beneficiary Right in the Real Estate in Japan (Round1 Stadium Kawasaki Daishi)（851.1KB）

December 19, 2018

To all concerned parties:

Investment Corporation

Japan Retail Fund Investment Corporation (Tokyo Stock Exchange Company Code: 8953）

Representative: Shuichi Namba, Executive Director

URL:http://www.jrf-reit.com/english/

Asset Management Company

Mitsubishi Corp.-UBS Realty Inc.

Representative: Katsuhisa Sakai, President & CEOInquiries:Keita Araki, Head of Retail Division

TEL: [phone]

Notice Concerning Acquisition of a Trust Beneficiary Right in the Real Estate in Japan (Round1 Stadium Kawasaki Daishi)

Japan Retail Fund Investment Corporation ("JRF") announced today that Mitsubishi Corp. - UBS Realty Inc., JRF's asset manager (the "Asset Manager"), determined to acquire a trust beneficiary right in the real estate of Round1 Stadium Kawasaki Daishi (the "Property") as outlined below.

• 1. Overview of acquisition

  1)	Property type	Trust beneficiary right in the real estate
  2)	Property name	Round1 Stadium Kawasaki Daishi
  3)	Location	5-1, Tonomachi 1-chome, Kawasaki-ku, Kawasaki-shi, Kanagawa
  4)	Acquisition price (scheduled)	2,370 million yen
  5)	Appraisal value	2,930 million yen (as of December 1, 2018)
  6)	Contract completion date	December 19, 2018
  7)	Acquisition date (scheduled)	December 25, 2018 (Scheduled)
  8)	Seller	Not disclosed (Note)
  9)	Acquisition funds (scheduled)	Cash on hand (Scheduled)
  10)	Payment	Full payment at closing

  (Note)

  Not disclosed as the seller has not agreed to the disclosure.

• 2. Reasons for Acquisition

  JRF is optimizing its asset structure in response to changes in the environment surrounding retail properties including changes in demographics in Japan, expanding inbound tourism, advances in e-commerce, and increasing leisure time. To optimize its asset structure, JRF has divided its portfolio into Core, Secondary core, and Sub assets (Note 1) and is focusing on the portfolio of Core properties in locations where people gather and that enable JRF to demonstrate its ability to attract people. As it increases the percentage of Core assets, JRF will place greater emphasis on its asset replacement strategy.

  Acquisition of the Property entails the acquisition of an asset categorized as a Residential Station type property (Retail property located around station in highly populated area) in accordance with the asset replacement strategy.

For acquisition of the Property, JRF evaluated the following:

(Note 1) The Core asset category comprises Prime, Major Station, and Residential Station type properties; the Secondary core asset category comprises Suburban Mall and Value-added type properties; and the Sub asset category comprises GMS / Roadside type properties.

Highlight of acquisition

The Property is classified as a Residential Station type property in the Core asset category. It is a complex entertainment facility in a commercial area with a high population and good transportation access.

Attractiveness of market

 The property is surrounded by high-density residential areas with a population of 244,000 within a three-kilometer radius and 629,000 within a five-kilometer radius. The market has high residential and daytime populations.

 The population of Kawasaki-shi is trending upward, and the market will maintain a high population over the long term.

< Population outlook for Kawasaki-shi, Kanagawa, and Japan (Note 2) >

(Source)The data in 2015 is from "Census", the data after 2020 is from the projections calculated based on Census by National Institute of Population and Social Security Research.

(Note 2)

The populations of Kawasaki-shi, Kanagawa and Japan in 2015 are set to 100.

Attractiveness of location

•  The facility is located around a station at residential districts within 30 minutes from Yokohama Station, a main business area.

•  Access to the site is extremely good: It is about a one-minute walk from the Sangyodoro Station on the Keikyu Daishi Line and can be accessed from JR Kawasaki Station by public bus or free shuttle bus.

•  The site is located at the intersection of Prefectural Road No. 6 (Sangyodoro) and National Road No. 409, providing good vehicular access; visibility is excellent, and the site can be entered from the north and south sides.

•  The site offers high potential in anticipation of various use needs other than commercial facilities.

Attractiveness of facility

•  The facility, operated by ROUND ONE Corporation, is the only stadium-type commercial facility in Kanagawa and comprises bowling alleys, arcade games, karaoke, and Spo-Cha (Note 3). It is the top such facility in Japan in terms of sales.

•  A fixed-term leasing contract for a long term has been executed.

•  ROUND ONE's overall sales levels are favorable as a result of expansion of the sales base due to higher experience-oriented consumption needs and by opening sites in the United States.

(Note 3) "Spo-Cha" is the sports-theme facility which charges by time.

(Source)

Prepared by the Asset Manager based on "Analysis of present states and future prospects「Term 2019.3 (Apr.2018 ～Sep.2018) Outline of Financial Results」" by ROUND ONE CORPORATION.

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Property photo / Property Location Map Neighborhood area

Property photo

Map (JRF's properties are indicated in red)

3.

Property Summary (Note1)

Property name (Property Number)			Round1 Stadium Kawasaki Daishi (U-59)
Type of asset			Trust beneficiary right in the real estate
Trustee			Mitsubishi UFJ Trust and Banking Corporation
Trust period			November 7, 2003 - December 31, 2028 (Scheduled)
Location			5-1, Tonomachi 1-chome, Kawasaki-ku, Kawasaki-shi, Kanagawa
Land	Land area		6,066.38 m2	Zoning	Quasi-industrial district
	FAR / building-to-land ratio		200%/60%	Type of possession	Ownership
Building	Structure / stories		6 stories above ground, SRC-structure with flat roof
	Total floor area		13,559.17 m2	Type	Recreation hall/Parking/waste storage
	Completion date		November 29, 2004	Type of possession	Ownership
	Design		Architect Connects Computerize Information Processing System Co.,Ltd.
	Construction		SHIMIZU CORPORATION, Yokohama Branch
	Constructional Inspector		JAPAN ERI CO.,LTD.
	PML		4.5% (Based on the earthquake risk assessment (details) report dated October 2018 jointly prepared by Engineering and Risk Services Corporation and OYO RMS Corporation)
Acquisition price			2,370 million yen
Appraisal value			2,930 million yen (as of December 1, 2018)
Appraiser			Tanizawa Sōgō Appraisal Co., Ltd.
Tenant summary	Number of tenants (main tenants)		1 / Round1
	Annual rent		Not disclosed (Note)
	Tenant leasehold / security deposit		Not disclosed (Note)
	Total leased area		13,559.17 m2	Occupancy rate (based on leased area)	100.0%
	Total leasable area		13,559.17 m2
	Main tenants	Period of contract	20 years (until November 28, 2031)
		Type of contract	Fixed-term lease contract
		Revision of rent	Not disclosed (Note)
		Early termination	Not disclosed (Note)
Collateral conditions			None
Special notes			None

・Figures of less than one million yen are rounded down, and percentages are rounded to the nearest second decimal place. ・"Location" represents the address of each property or the registered address of the building.

・"Land area" and "Total floor area" are based on descriptions in registry books.

・"Zoning" represents the classification of land by its use, stipulated in Section 1-1, Article 8 of the City Planning Act. ・"Number of tenants" represents the total number of lease contracts as of today.

・"Total leased area" and "Total leasable area" represent the total areas in the lease contracts, etc. as of today.

(Note) Not disclosed as the tenant has not agreed to the disclosure.