Nippon Accommodations Fund : Notification of Borrowing Funds

August 27 , 2020

To All Concerned Parties

Issuer of Real Estate Investment Trust Securities: Nippon Accommodations Fund Inc.

Takashi Ikeda, Executive Director (TSE Code: 3226)

Investment Trust Management Company: Mitsui Fudosan Accommodations Fund Management Co., Ltd.

Tateyuki Ikura, President and CEO

Inquiries: Tetsuji Kawakami, CFO and Director

(TEL: [phone])

Notification of Borrowing Funds

This is a notification that Nippon Accommodations Fund Inc. ("NAF") decided to borrow funds as shown below.

1. Details of Loans

			Loan Type
Lender	Loan Amount	Interest Rate	&	Date of Loan	Date of Maturity
			Repayment Method
Sumitomo Mitsui Trust			Unsecured &
1.0 billion yen	0.09909%	unguaranteed,	August 31, 2020	November 30, 2020
Bank, Limited
		Bullet repayment
Mitsui Sumitomo			Unsecured &
Insurance Company,	1.0 billion yen	0.32000%	unguaranteed,	August 31, 2020	August 31, 2027
Limited			Bullet repayment
			Unsecured &
Mizuho Bank, Ltd.	1.0 billion yen	0.48000%	unguaranteed,	August 31, 2020	August 30, 2030
			Bullet repayment

2. Use of Funds

To apply the funds toward the repayment of short-term loan ¥1.0 billion concluded on May 29, 2020, long-term loan ¥1.0 billion concluded on August 31, 2017, and the purchase and related incidental expenses of "Park Axis Akatsuka" which was acquired on March 30, 2020 as announced in the "Notification Concerning Acquisition of Domestic Real Estate Property (Park Axis Akatsuka)" dated March 23, 2020 (*1).

(*1) As NAF acquired "Park Axis Akatsuka" by using its own funds on March 30, 2020, the above-mentioned loan will be executed in order to cover the decreased amount of own funds.

3. Status of Interest-bearing Debt After this Event		(Unit: billion yen)
	Before this Event	After this Event	Change
Short-term debt	3.0	3.0	－
Long-term debt	149.5	150.5	1.0
Total debt	152.5	153.5	1.0
Investment corporation bonds	4.0	4.0	－
Total interest-bearing debt	156.5	157.5	1.0
Interest-bearing debt ratio	53.6%	53.7%	0.2
Long term interest-bearing debt ratio	98.1%	98.1%	0.0

(*1) The following formula was used to calculate the interest-bearing debt ratio.

(interest bearing debt ratio) = (interest bearing debt) ÷ (interest bearing debt + unitholders' capital) X 100 The unitholders' capital as of today (135,603,623 thousand yen) was used.

(*2) (long term interest bearing debt ratio) = (long term debt + investment corporation bonds) ÷ (interest bearing debt) X 100

(*3) All calculations of ratios were rounded to one decimal place.

4. Others

Regarding the loan repayment risk, there is no important change to the "Investment risks" description in the latest securities report submitted on May 29, 2020.

NAF website: https://www.naf-r.jp/english/

Please note that this English translation of the Japanese original document is provided solely for information purposes. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.