Notice of Acquisition of Assets (Yokohama ST Bldg.: Additional Acquisition)

November 30, 2021

To All Concerned Parties

Name of REIT Issuer:

Nippon Building Fund Inc.

Koichi Nishiyama, Executive Director

(TSE Code: 8951)

Contact:

Asset Management Company

Nippon Building Fund Management Ltd.

Yoshiyuki Tanabe, President and CEO

Person to Contact:

Yukio Handa, General Manager

(TEL. [phone])

Notice of Acquisition of Assets

(Yokohama ST Bldg.: Additional Acquisition)

Nippon Building Fund Management Ltd. ("NBFM"), to which Nippon Building Fund Inc. ("NBF") entrusts asset management services, hereby provides notice of its decision on November 30, 2021 to acqure assets as follows:

Description

1. Outline of the Acquisition

Name of Assets	Yokohama ST Bldg. (Additional Acquisiton: 15% co-ownership interest)
	*Yokohama ST Bldg. shall be referred to as "the Property," the portion to
	be acquired shall be referred to as "the Additionally Acquired Portion of
	the Property" hereinafter.
Assets to be Acquired	Trust beneficiary interest in real estate
Acquisition Price	3,220 million yen
	(Miscellaneous acquisition costs, adjusted amount of fixed assets tax and
	city-planning tax, etc. as well as consumption tax, etc. are excluded.)
Seller	TODA CORPORATION
	*Please refer to 4. Outline of seller below
Intermediary	None
Date of Contract	November 30, 2021
Date of Transfer	November 30, 2021
Acquisition Funds	Own funds
Payment Method	One time, lump-sum payment at the time of transfer

2. Reason for Acquisition

The acquisition is being undertaken with the intention of enhancing NBF's portfolio in the Other Greater Tokyo in accordance with the asset management objectives and policies set forth in NBF' s Articles of Incorporation.

NBF already owns trust beneficiary interest comprised mainly of 75% co-ownership interest in the

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Property (the Existing Trust Beneficiary Interest), and has steadily built a track record. NBFM considers this acquisition to be in line with NBF's policy of increasing the asset value and liquidity of the Property.

The Additionally Acquired Portion of the Property is trust beneficiary interest comprised mainly of 15% co-ownership interest in the Property. Combined with the Existing Trust Beneficiary Interest, NBF's owned trust beneficiary interest will be comprised mainly of 90% co-ownership interest in total after the acquisition.

3. Outline of Assets

Name of Assets	Yokohama ST Bldg. (Additional Acquisition: 15% co-ownership
	interest)
Type of Specified Assets	Trust beneficiary interest in real estate
Trustee	Sumitomo Mitsui Trust Bank, Ltd.
Term of Trust	Date of establishment of trust: November 30, 2021
	Date of expiration of trust: March 31, 2031
Type of Ownership	Land: Co-ownership interest (15%)
	Building: Co-ownership interest (15%)
Location	(Description in Real Property Registry)
	Land: 11-4,11-6,11-16,11-17,11-18,11-19,11-20, Kitasaiwai
	1-chome,Nishi-ku, Yokohama, Kanagawa
	Building: 11-6,11-16,11-20,11-4,11-17,11-18,11-19,
	Kitasaiwai 1-chome,Nishi-ku, Yokohama, Kanagawa
	(Street Adress)
	11-15, Kitasaiwai 1-chome,Nishi-ku, Yokohama, Kanagawa
Use (primary use listed in	Offices, Parking and Stores
Real Property Registry)
Square meters (Description in	Land: site area 6,348.45 m2 (entire site)
Real Property Registry)	Building: total floor space 42,568.77 m2 (entire building)
Structure (Description in Real	Steel frame and steel framed reinforced concrete structure, flat
Property Registry)	roof, 18 floors above ground and 2 floors below ground
	(Based on the description of the entire building)
Completion of Construction	October 31, 1987
(Description in Real Property
Registry)
Matters Related to Earthquake	Earthquake PML 1.7% (obtained from the building condition
Resistance	investigation report prepared by Engineering & Risk Services
	Corporation)
Existence of Secured Interests	None
(liens)
Appraisal Value	¥3,220,000,000
( Date of Valuation )	(August 31, 2021 )
Appraiser	Tanizawa Sogo Appraisal Co., Ltd.
Description of Tenants	Tenancy situation of the Additionally Acquired Portion of the
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		Property as of October 31, 2021 is as follows.
	Total number of end	99 companies
	tenants
	Total rental revenues	Approximately ¥256 million / year (based on the owned
		interests of the leasing space)
	Lease deposit	Approximately ¥206 million (based on the owned interests of
		the leasing space)
	Total rentable area	Approximately 4,017.32 m2 (based on the owned interests)
	Total rented area	Approximately 3,999.91 m2 (based on the owned interests)
	Occupancy Rate	99.5%
Other Special Matters	(1) NBF currently owns the Existing Trust Beneficiary Interest
		(75% co-ownership interest), and will own trust beneficiary
		interest comprised of 90% co-ownership interest in total after
		acquiring the Additionally Acquired Portion of the Property (trust
		beneficiary interest comprised mainly of 15% co-ownership
		interest in the Property). Of the building of the Property, the
		portion co-owned by co-owners other than Sumitomo Mitsui
		Trust Bank, Ltd. (the "Existing Trustee"), the trustee of the
		Existing Trust Beneficiary Interest, is leased to the Existing
		Trustee, and the Existing Trustee subleases the entire building,
		including the portion co-owned by the Existing Trustee, to a
		sublessee.
		(2) The Property is a building under co-ownership and is subject
		to the agreement regarding the concerned co-ownership. The
		agreement stipulates that an offer of sale should be made to
		other co-owners prior to any other party; the owned portion may
		not be transferred to any third party, pledged, collateralized, etc.
		without the consent of other co-owners; demands for partition
		concerning co-ownership may not be made; and such.
		(3) At the Property, use of spray material containing asbestos
		which should be placed under supervision (inspection,
		recording, etc.) has been confirmed. However, it is in a stable
		condition and is not in a state to pose health hazards. The plan
		is to remove or seal off the material or take other measures in
		accordance with the situation going forward.

4. Outline of Seller

1.	Name	TODA CORPORATION
2.	Location	7-1 Kyobashi 1-Chome,Chuo-ku, Tokyo, Japan
3.	Name and Title of	Otani Seisuke, President and Representative Director
	Representative
4.	Description of Business	1. Research, planning, design, management, and execution
		related to all aspects of architectural and civil engineering
		comprehensive engineering and consulting related thereto
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		2. Research, planning, design, management, and execution
		related to local development, urban development, etc.;
		comprehensive engineering and consulting related thereto
		3. Real estate sale and purchase, rental, intermediary services,
		management, and appraisal
		4. renewalbe power generation business, etc
5.	Capital	¥23,001 million (as of March 31, 2021)
6.	Date of Establishment	July 10, 1936
7.	Net Assets	¥312,533 million (as of March 31, 2021)
8.	Total Assets	¥735,789 million (as of March 31, 2021)
9.	Major unitholders and	Daiichisyokusan (13.25%), NORTHERN TRUST CO. (AVFC)
	invetment ratios	RESILCHESTER INTERNATIONAL
		INVESTORSINTERNATIONAL VALUE EQUITY TRUST
		（Standing proxy: The Hongkong and Shanghai Banking
		Corporation Limited, Tokyo Branch）(5.88%), The Master Trust
		Bank of Japan, Ltd. (trust account) (5.13%) (as of March 31,2021)

10. Relations with NBF/NBFM

	Capital Relationship	None
	Personnel Relationship	None
	Business Relationship	None
	Related parties	Does not fall under the category of related parties of NBF and
		NBFM.

5. Status of Owners etc. of the Properties

The current acquisition of the Property is not an acquisition from a party which falls under the category of any specially-interested party of NBF or NBFM.

6. Future Outlook

There will be no change to the forecasted management situation during the period ending December 31, 2021 and June 30, 2022 as this acquisition will have little impact upon the management situation of NBF during such period.

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7. Summary of Appraisal Report

Property Name		Yokohama ST Bldg. (Additional Acquisition)
Appraisal Value		¥3,220,000 thousand
Appraiser		Tanizawa Sogo Appraisal Co., Ltd.
Date of Valuation		August 31, 2021
							Breakdown
			Item			(in thousands	Remarks
							of yen)
Appraisal value based on income method		3,220,000
	Appraisal value based on direct		3,250,000
	capitalization method
		(1) Operating Revenue ((i) - (ii))		260,144
			(i) Effective gross income		277,833	Estimated based on income consisting of rents,
								common area charges, utility charges, etc. which
								are deemed stable on a mid- and-long-term basis
			(ii) Losses from vacancy, etc.		17,689	Estimated based on a vacancy rate which is
								deemed stable on a mid- and-long-term basis
		(2)	Operating Expenses		92,709
			Building Maintenance Costs/		39,453	Estimated based on past results verified applying
			Property Management Fees			the level of maintenance costs/property
			(Note)				management fees for similar real properties
			Utilities Expenses		22,005	Estimated based on past results verified applying
								the level of utilities expenses for similar real
								properties
			Repair Expenses		1,955	Estimated based on the Engineering Report, etc
			Leasing Expenses, etc.		1,997	Estimated based on the assumed turnover rate
								and the level of leasing expenses for similar real
								properties
			Taxes & Public Duties		20,550	Estimated based on a land/house collective ledger
								of fiscal 2021
			Insurance Premiums		246	Estimated based on insurance documents etc.
			Other Expenses		6,504	Estimated based on past results verified applying
								the level of other expenses for similar real
								properties
		(3)	Net Operating Income		167,435
		((1)-(2))
		(4) Investment Income from		1,824	Estimated applying investment return of 1.0%
		Temporary Deposits
		(5) Capital Expenditure		39,090	Estimated based on the Engineering Report, etc
		(6) Net Income ((3)+(4)-(5))		130,169
		(7) Capitalization Rate		4.0%	Estimated taking into consideration examples of
								transactions for similar real properties, as well as
								conditions e.g. location, improvements, rights,
								contractual terms etc. of the Property
	Appraisal value based on DCF method		3,200,000
			Discount Rate		4.1%	Estimated taking into account the risks deriving
								from regional/property-specific factors of the
								Property
			Terminal Capitalization Rate		4.2%	Estimated by reflecting uncertainties of future
								outlook, etc. in capitalization rate
Integrated value based on cost method		3,330,000
	Proportion of land			89.5%
	Proportion of building			10.5%
					*Amounts less than one thousand yen are rounded to the nearest thousand.
Matters specifically considered in adjustment		None
of estimated amounts and determination of
appraisal value

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