Samty Residential Investment : Notice Concerning Borrowing of Funds

July 12, 2021

For Translation Purposes Only

Real Estate Investment Trust Securities Issuer

Samty Residential Investment Corporation

1‐8‐3 Marunouchi, Chiyoda‐ku, Tokyo

Masafumi Takahashi, Executive Director

(Securities Code: 3459)

Asset Management Company:

Samty Asset Management Co., Ltd.

Masafumi Takahashi, Representative Director

Inquiries: Hidekazu Nizawa

Director

Business Management Division

Phone: + 81‐3‐5220‐3841

Notice Concerning Borrowing of Funds

Samty Residential Investment Corporation ("Samty Residential") announces the decision made today to perform borrowing of funds (the "Borrowings") as follows.

1. Details of the Borrowings

1. Reasons for the Borrowings
   Samty Residential will conduct the Borrowings to fund part of the acquisition of trust beneficiary interest in real estate and real estate (in kind) (24 properties with a total planned acquisition price of 25,565 million yen) and expenses incidental to the acquisition. For details of the assets to be acquired, please refer to "Notice Concerning Acquisition of Assets" separately announced today.
2. Details of the Borrowings i. Term Loan 17‐A(Note 1)

1.	Lender	Loan syndicate with Sumitomo Mitsui Banking Corporation as arranger
2.	Loan amount	2,500 million yen(Note 2)
3.	Interest rate	Base rate (one‐month JPY TIBOR) +0.500 %(Note 3) (Note 4)
4.	Drawdown date	August 3, 2021(Note 5)
5.	Borrowing method	An individual loan agreement shall be concluded with the above lender
		on July 30, 2021 (scheduled)
6.	Principal repayment date	July 31, 2025(Note 6)
7.	Principal repayment method	Lump‐sum repayment on principal repayment date
8.	Interest repayment date	The first interest payment shall be due on August 31, 2021, and
		subsequent interest payments shall be due at the end of every month
		thereafter and on the principal repayment date(Note6)
9.	Security/guarantee	Unsecured and unguaranteed
ii. Term Loan 17‐B(Note 1)
1.	Lender	Loan syndicate with Sumitomo Mitsui Banking Corporation as arranger
2.	Loan amount	5,300 million yen(Note 2)
3.	Interest rate	To be decided (fixed interest rate)(Note 7)
4.	Drawdown date	August 3, 2021(Note 5)
5.	Borrowing method	An individual loan agreement shall be concluded with the above lender
		on July 30, 2021 (scheduled)
6.	Principal repayment date	January 29, 2027(Note 6)
7.	Principal repayment method	Lump‐sum repayment on principal repayment date
8.	Interest repayment date	The first interest payment shall be due on August 31, 2021, and
		subsequent interest payments shall be due at the end of every month
		thereafter and on the principal repayment date(Note6)
9.	Security/guarantee	Unsecured and unguaranteed

Disclaimer: This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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iii. Term Loan 17‐C(Note 1)

	1.	Lender	Loan syndicate with Sumitomo Mitsui Banking Corporation as arranger
	2.	Loan amount	3,700 million yen(Note2)
	3.	Interest rate	To be decided (fixed interest rate)(Note 7)
	4.	Drawdown date	August 3, 2021(Note 5)
	5.	Borrowing method	An individual loan agreement shall be concluded with the above lender
			on July 30, 2021 (scheduled)
	6.	Principal repayment date	July 30, 2027(Note 6)
	7.	Principal repayment method	Lump‐sum repayment on principal repayment date
	8.	Interest repayment date	The first interest payment shall be due on August 31, 2021, and
			subsequent interest payments shall be due at the end of every month
			thereafter and on the principal repayment date(Note6)
	9.	Security/guarantee	Unsecured and unguaranteed
iv. Term Loan 17‐D(Note 1)
	1.	Lender	Mizuho Bank, Ltd.
	2.	Loan amount	2,000 million yen(Note2)
	3.	Interest rate	Base rate (one‐month JPY TIBOR) +0.700 %(Note 3) (Note 4)
	4.	Drawdown date	August 3, 2021(Note 5)
	5.	Borrowing method	An individual loan agreement shall be concluded with the above lender
			on July 30, 2021 (scheduled)
	6.	Principal repayment date	July 30, 2027(Note 6)
	7.	Principal repayment method	Lump‐sum repayment on principal repayment date
	8.	Interest repayment date	The first interest payment shall be due on August 31, 2021, and
			subsequent interest payments shall be due at the end of every month
			thereafter and on the principal repayment date(Note6)
	9.	Security/guarantee	Unsecured and unguaranteed

(Note 1) As to the Borrowings, although the result of discussions has been notified by Sumitomo Mitsui Banking Corporation, which is the arranger of the loan syndicate of "i," "ii" and "iii" above, and Mizuho Bank, Ltd., which is the lender of "iv" above, individual loan agreements for the above loans have not been concluded as of today. Therefore, it is not guaranteed that the Borrowings will actually be conducted, and the actual total loan amount is subject to change.

(Note 2) This is the scheduled loan amount of Samty Residential as of today, and this may change before the final drawdown date in consideration of the amount of proceeds from the primary offering, etc. (meaning the primary offering, etc. described in "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units Through Public Offering and Third‐Party Allotment" separately announced today), etc.

(Note 3) The base rate applicable to the interest rate calculation period for each interest payment date will be determined on the date two business days prior to the interest payment date. The relevant 1‐month JBA Japanese Yen TIBOR will be available on the website of JBA TIBOR Administration (JBATA) (https://www.jbatibor.or.jp/english/).

(Note 4) Financing charges, etc. to be paid to lenders are not included.

(Note 5) Drawdown date is subject to change in line with the change in scheduled outlay, etc.

(Note 6) If the relevant day is not a business day, the business day immediately following the relevant day shall be the date. If the said business day is in the following month, the business day immediately preceding the relevant day shall be the date.

(Note 7) Interest rates will be announced as soon as they are decided.

(3) Amount, Use and Scheduled Outlay of Funds to Be Procured

1. Amount of funds to be procured 13,500 million yen
2. Specific use of funds to be procured

For use as part of expenses for acquisition of the assets to be acquired described above and expenses incidental to such.

1. Scheduled outlay August 3, 2021

Disclaimer: This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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2. Status of Interest‐Bearing Debt after the Borrowings		(Unit: million yen)
		Before the Borrowings		After the Borrowings	Increase
		(as of today)		(as of August 3)	(Decrease)
	Short‐term loans(Note)	5,350	10,700	5,350
	Long‐term loans(Note)	55,385	63,535	8,150
	Total borrowings	60,735	74,235	13,500
	Investment corporation bonds	2,700	2,700	‐
	Total interest‐bearing debt	63,435	76,935	13,500

(Note) Short‐term loans refers to borrowings for which repayment is due in or within one year (including current portion of long‐term loans payable), and long‐term loans refers to borrowings for which repayment is due in more than a year.

3. Other

Concerning the risks associated with the Borrowings, they are described in Chapter 2: Reference Information,

Section 2: Supplementary Information on Reference Documents, 3. Investment Risks in the Securities Registration Statement submitted by Samty Residential today.

*Samty Residential Investment Corporation website: https://samty‐residential.com/en/

Disclaimer: This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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