MIRAI Corporation (TSE:3476) entered into memorandum of understanding to acquire Sakura Sogo REIT Investment Corporation (TSE:3473) on July 19, 2019. MIRAI Corporation (TSE:3476) entered into agreement to acquire Sakura Sogo REIT Investment Corporation for ¥31.4 billion on August 5, 2019. Under the terms of transaction, MIRAI Corporation will issue 1.67 shares for every share of Sakura Sogo REIT Investment Corporation. Post completion, Sakura Sogo REIT Investment Corporation will merge and MIRAI Corporation would be surviving company. Sakura's portfolio will be integrated into MIRAI's portfolio. MIRAI Corporation and Sakura Sogo REIT Investment Corporation will enter into agreement by August 6, 2019. Upon merger, The Master Trust Bank of Japan, Ltd. will hold 7.6% stake, Japan Trustee Services Bank, Ltd. will own 6.2% stake, Lion Partners Gogo Kaisha will own 3.6% stake, The Nomura Trust and Banking Co., Ltd. will own 3.1% stake and BNY GCM CLIENT ACCOUNT JPRD AC ISG will own 3% stake in Sakura. After the Merger, Mitsui Bussan & IDERA Partners will be the sole management of MIRAI. Sakura Real Estate Funds, and Galileo Group, a sponsor of Sakura will withdraw from those roles. MIRAI's executive Director will replace Sakura's executive Director if approved at by unit holders on August 30, 2019. Major unitholder, Director structure, etc. of MIRAI after the merger will remain unchanged, with investment, management or Director involvement by SREFM or Galileo. Sakura Sogo REIT Investment Corporation‘s shareholder's meeting is scheduled on August 30, 2019 for approval of the merger agreement with MIRAI. The shareholder's meeting of MIRAI in respect of the transaction is scheduled for July 25, 2019. The Board of Directors approval of both parties is scheduled on August 6, 2019 wherein the approval from the Boards of both the entities will be sought. As on August 13, 2019, the transaction was approved by the Board of MIRAI. As of August 30, 2019, unitholders of Sakura Sogo REIT Investment Corporation has approved the transaction. Sakura Sogo REIT Investment Corporation will delist on October 30, 2019 and the transaction is expected to close on November 1, 2019. The merger is expected to deliver enhanced earnings and stabilized distributions per unit. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as financial advisor to MIRAI Corporation and SMBC Nikko Securities Inc. acted as financial advisor to Sakura Sogo REIT Investment Corporation.

MIRAI Corporation (TSE:3476) cancelled the acquisition of Sakura Sogo REIT Investment Corporation (TSE:3473) on September 20, 2019. On August 30, 2019, at the Third General Meeting of Unitholders held by Sakura Sogo REIT Investment Corporation, the approval of the absorption-type merger agreement with the investment corporation Mirai lacked the quorum necessary for the resolution, so the resolution was not finalized. As a result, it is impossible for the agreement to complete the approval of the Sakura Sogo REIT Investment Corporation's general meeting of shareholders by October 31, 2019, the day before the effective date stipulated in the agreement resulting in cancellation of the agreement.