Industrial & Infrastructure Fund Investment : Notice Concerning Disposition of One Property in Japan【IIF Inzai Logistics Center】

July 20, 2022

To all concerned parties:

Investment Corporation

Industrial & Infrastructure Fund Investment Corporation

(Tokyo Stock Exchange Company Code: 3249）

Representative:	Kumi Honda, Executive Director
	URL: https://www.iif-reit.com/english/
Asset Management Company
KJR Management
Representative:	Naoki Suzuki,
	President & Representative Director
Inquiries:	Hidehiko Ueda,
	Head of Industrial Division

TEL: [phone]

Notice Concerning Disposition of One Property in Japan

【IIF Inzai Logistics Center】

Industrial & Infrastructure Fund Investment Corporation ("IIF") announced today that KJR Management, IIF's asset manager (the "Asset Manager"), decided to dispose (the" Anticipated Disposition ") trust beneficiary rights in real estate (the" Property to be disposed" or the "Property") as outlined below.

1. Summary of the Anticipated Disposition

		Disposition	Book value	Difference between	Appraisal value	Contract	Delivery
Property		price	disposition price and
name	Type of asset	(Note 1)	(Note 2)	book value (Note 3)	(survey price)	signing date	date	Buyer
	(million yen)	(million yen)	(scheduled)	(scheduled)
		(million yen)	(million yen)
	Trust							Japanese
IIF Inzai							Operating
beneficiary					July 20,	July 27,
Logistics	1,925	1,001	923	1,480	Company
right in real	2022	2022
Center					(Not disclosed)
estate
							(Note 4)

(Note 1) The disposition price excludes expenses related to the disposition.

(Note 2) The book value is as of January 31, 2022.

(Note 3) The difference between disposition price and book value is shown for reference. The actual gain on sale is different from that value.

(Note 4) The buyer's profile cannot be disclosed as we have not obtained consent from the buyer with respect to disclosure. For the details, please refer to the following "4. Profile of Buyer".

1

2. Reasons for Disposition

Taking advantage of the active real estate market, IIF has decided to dispose at a price significantly higher than its book value and appraisal value from the viewpoint of improving portfolio stability and stabilizing the level of distribution per unit by utilizing the gain on sale. The Property has been under management since its acquisition in February 2014. However, after careful consideration of the mid-term management policy, we assess that risk of lower earnings in the future is high, and determine that the sale at the current time, when the real estate transaction market is active, will contribute to improving unitholder's value.

The entire amount of gain on sale from the disposition will be allocated to a portion of the temporary distribution in excess of profits (distribution in reduction of capital contribution under the tax law) scheduled to be made in the fiscal period ending July 31, 2022 (30th fiscal period). In addition, the proceed from the disposition of the property and the cash on hands that will increase as a result of not making the initially planned temporary distribution in excess of profits will be used for various measures to improve unitholder's value, including future property acquisitions and stabilization of distributions.

2

3. Information about Property to be disposed

Property name

IIF Inzai Logistics Center

Type of asset

Trust beneficiary right in real estate

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Location

2-6-1, Matsuzakidai, Inzai City, Chiba

Acquisition date

February 7, 2014

Acquisition price

1,060 million yen

Book value

1,001 million yen（As of January 31, 2022）

Land area

9,799.60 m2

Zoning

Semi-industrial area

Land

Floor area ratio/

200% /60%

building-to-land ratio

Type of possession

Ownership

Main Building:1-story above ground: steel-framed with galvanized

Building structure/

alloy steel sheet roof

stories

Attached Building:2-story above ground: steel-framed with

galvanized alloy steel sheet roof

Construction

February 28,2007

completion

Building

Total floor area

Main Building: 5,154.00 m2

Attached Building: 333.75 m2

Type of possession

Ownership

Use

Main Building: Warehouse

Attached Building: Office

Earthquake PML

4.7%

Tenant

SAN LOGISTICS CO., LTD. (One company)

(Number of tenants)

Total

rental

business

Not disclosed (Note)

revenue(annual)

Tenant

Security deposit

Not disclosed (Note)

summary

Total leased area

5,490.00 m2

Total leasable area

5,490.00m2

Occupancy rate

July 31,

January 31,

July 31,

January 31,

Current

2020

2021

2021

2022

date

(Based on leased area)

100%

100%

100%

100%

100%

Collateral conditions

None

Special notes

None

(Note) This is not disclosed as we have not obtained the tenant's consent for disclosure.

4. Profile of Buyer

The buyer of the Property is a Japanese operating company, but the buyer's profile cannot be disclosed as we have not obtained consent from the buyer with respect to disclosure. There are no notable capital, personal or business relationships between IIF / the Asset Manager and the buyer, and there are no notable capital, personal or business relationships between interested parties and affiliated companies of IIF / the Asset Manager and those of the buyer. None of the buyer, its interested parties or its affiliated companies falls under the category of related parties of IIF / the Asset Manager.

3

5. Profile of Broker

The broker is a domestic operating company, the broker's profile cannot be disclosed as we have not obtained consent from the broker with respect to disclosure. There are no notable capital, personal or business relationships between IIF / the Asset Manager and the broker, and there are no notable capital, personal or business relationships between interested parties and affiliated companies of IIF / the Asset Manager and those of the broker. None of the broker, its interested parties or its affiliated companies falls under the category of related parties of IIF / the Asset Manager.

6. Means of Payment

The settlement will be conducted by a lump sum on the scheduled date of delivery.

7. Scheduled Date of Disposition

	IIF Inzai Logistics Center
Contract signing date (scheduled)	July 20, 2022
Payment date (scheduled)	July 27,	2022
Delivery date (scheduled)	July 27,	2022

8. Future Outlook of IIF

Please refer to the "Notice Concerning Revision of Forecast of Operating Results and Distributions for the July 2022 (30th) Fiscal Period and the January 2023 (31st) Fiscal Period" announced today for the forecast of IIF's operating performance for the 30th fiscal period ending in July 2022 (February 1, 2022 - July 31, 2022) and the 31st fiscal period ending in January 2023 (August 1, 2022 - January 31, 2023), taking into account the deposition of the Property.

4

9. Summary of Appraisal Report

【IIF Inzai Logistics Center】

Appraiser

CBRE K.K

Survey price

1,480 million yen

Survey price as of:

January 31, 2022

Item

Value

Notes

Indicated value by income approach

1,480 million yen

DC method

1,500 million yen

Operating income

Not disclosed

Effective gross income

Not disclosed

Loss from vacancy

Not disclosed

Operating expenses

Not disclosed

Maintenance and

Not disclosed

management fee

Utility cost

Not disclosed

(Note)

Repair expenses

Not disclosed

Property management

Not disclosed

fee

Leasing cost

Not disclosed

Property tax

Not disclosed

Insurance premium

Not disclosed

Other expenses

Not disclosed

Net operating income

76 million yen

Operating profit from

0 million yen

lump-sum payments

3 million yen

Capital expenditures

Net income

73 million yen

Capitalization rate

4.9%

.

DCF method

1,480 million yen

Discount rate

4.7%

Terminal capitalization

5.0%

rate

Other matters that the appraisal firm considered

None

upon conducting the appraisal

(Note) The disclosure of this information may negatively affect IIF's competitiveness and work to the detriment of unitholders, and therefore, we have decided not to disclose the information.

About IIF: Industrial & Infrastructure Fund Investment Corporation ("IIF") is the first J-REIT focused on acquiring and operating both industrial and infrastructure properties in Japan－properties that play a vital role in the Japanese economy, and for which IIF expects to see stable demand in the mid to long term. With respect to industrial properties, IIF intends to invest in a diverse portfolio of properties, including manufacturing and research and development facilities.

Please refer to our website at https://www.iif-reit.com/english/

Contacts: For the further information relating to this press release as well as IIF and its Asset Manager, please feel free to contact Mr. Hidehiko Ueda (Telephone Number: 81-3-5293-7090), Head of Industrial Division at KJR Management., asset manager for Industrial & Infrastructure Fund Investment Corporation.

Investor Relations: Telephone Number: 81-3-5293-7091E-mail:[e-mail]

This English language release is for informational purposes only, and the Japanese language release should be referred to as the original.

5