notice concerning completion of acquisition of assets...planning department, retail reit division...

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Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of KRR in the United States or

elsewhere. Investment units may not be offered or sold in the United States without registration or an exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units

to be made in the United States will be made by means of an English language prospectus prepared in accordance with the

Securities Act that may be obtained from KRR and that will contain detailed information about KRR and its management, as well as KRR’s financial statements. However, KRR will not undertake a public offering and sale of investment units in

the United States, and the investment units have not been and will not be registered under the Securities Act.

Translation of Japanese Original

February 10, 2015

To All Concerned Parties

REIT Issuer: Kenedix Retail REIT Corporation Representative: Akihiro Asano, Executive Director (Securities Code: 3453) Asse t Manager: Kenedix Real Estate Fund Management, Inc. Representative: Ryosuke Homma, CEO and President Contact: Koichiro Nobata, General Manager of

Planning Department, Retail REIT Division TEL: +81-3-5623-3868

Notice Concerning Completion of Acquisition of Assets

Kenedix Retail REIT Corporation (“KRR”) announced today that in commencing asset management in

accordance with the policy provided in the articles of incorporation, it completed acquisition of the following 18

properties (the “Acquired Assets”) as described in its prospectus for the issuance of new investment units and

secondary distribution of investment units (dated January 2015). Of the Acquired Assets, MONA Shin-Urayasu,

Passaggio Nishiarai, Daikanyama Address Dixsept, Blumer Maitamon and Roseo Mito are related-party

transactions under the Investment Trust Act and Order for Enforcement of the Act on Investment Trusts and

Investment Corporations or under the internal rules of Kenedix Real Estate Fund Management, Inc. (the “Asset

Manager”). In accordance with these rules, the Asset Manager obtained the required prior approvals from the

KRR Board of Directors Meeting on January 6, 2015 to acquire each of these properties.

1. Overview of the acquisition

Property

number Property name Location Type of acquisition

Acquisition

price

(million yen)

T-1 Fululu Garden Yachiyo Yachiyo, Chiba Trust beneficiary

interest in real estate 14,848

T-2 MONA Shin-Urayasu Urayasu, Chiba Trust beneficiary


T-3 Passaggio Nishiarai Adachi ward, Tokyo Trust beneficiary


T-4 Daikanyama Address Dixsept Shibuya ward, Tokyo Trust beneficiary


T-5 Unicus Ina Kitaadachi-gun,

Saitama

Trust beneficiary


T-6 Yorktown Kita-Kaname Hiratsuka, Kanagawa Trust beneficiary


T-7 Unicus Yoshikawa Yoshikawa, Saitama Trust beneficiary


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Property

number Property name Location Type of acquisition

Acquisition

price

(million yen)

T-8 Sports Club Renaissance

Fujimidai Nerima ward, Tokyo

Trust beneficiary


O-1 Blumer Maitamon Kobe, Hyogo Trust beneficiary


O-2 Life Takadono (Land) Osaka, Osaka Trust beneficiary


O-3 Piago Kahma Home Center

Omihachiman Omihachiman, Shiga

Trust beneficiary


N-1 Kahma Home Center

Nakagawa Tomita (Land) Nagoya, Aichi

Trust beneficiary


N-2 Valor Ichinomiya-Nishi Ichinomiya, Aichi Trust beneficiary


N-3 K’s Denki Nakagawa Tomita

(Land) Nagoya, Aichi

Trust beneficiary

interest in real estate 889

F-1 Sunny Noma Fukuoka, Fukuoka Trust beneficiary


R-1 Roseo Mito Mito, Ibaraki Trust beneficiary


R-2 K’s Denki Aomori Honten Aomori, Aomori Trust beneficiary


R-3 Super Sports Xebio

Aomori-Chuo Aomori, Aomori

Trust beneficiary

interest in real estate 898

Total - - - 80,843

(1) Date of contract: January 6, 2015

(2) Acquisition date: February 10, 2015 (date of settlement and transfer)

(3) Seller: Please refer to Item 3. “Seller’s Profile” for details

(4) Acquisition funds: The proceeds from the issuance of new investment units through the public

offering as resolved in the KRR Board of Directors Meetings held on January 6,

2015 and February 2, 2015 and the borrowings (Note)

(5) Settlement method: Payment in full at settlement

(Note) Please refer to Press Release “Notice Concerning the Borrowings and Execution of Interest Rate Swap” announced today

for details

2. Details of the Acquired Assets

Overview of the Acquired Assets

The following tables provide an overview of the Acquired Assets. Definitions of the terms used in the tables are

provided below.

“Type of specified asset” indicates the asset type of acquisition concerning the Acquired Assets.

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“Trustee” indicates the trustee of each acquired asset that is trust beneficiary interest in real estate.

“Trust period” indicates the trust beginning date and trust maturity date defined in the trust agreement of

the trust beneficiary interest in real estate.

“Location” indicates the residential address. For those without a residential address, the building or land

address on the registry (one of the addresses for those that have multiple addresses) is shown.

“Form of ownership” of “Land” and “Building” indicates the type of rights owned by the trustee.

“Land area” of “Land” is based on what is described in the registry, and may not necessarily be identical

with the actual figure. In the case of properties in the form of compartmentalized ownership interests, the

land area for the entire property is shown.

“Zoning” of “Land” indicates the type of zoning as depicted in Article 8-1-1 of the City Planning Act.

“Building coverage ratio” of “Land” indicates the upper limit of the building coverage ratio as depicted in

the Building Standards Act and determined in city planning in accordance with the zoning.

“Floor-area ratio” of “Land” indicates the upper limit of the floor-area ratio as depicted in the Building

Standards Act and determined in city planning in accordance with the zoning.

“Gross floor area” of “Building” is based on what is described in the registry, and does not include annex

buildings. In the case of properties in the form of compartmentalized ownership interests, the gross floor

area for the entire property is shown.

“Date constructed” of “Building” indicates the registered completion date or the inspection date for

completion of construction of the building.

“Use” of “Building” is based on what is described in the registry. In the case of properties in the form of

compartmentalized ownership interests, the use for the part of the building acquired by KRR is shown.

“Structure/No. of floors” of “Building” is based on what is described in the registry. In the case of

properties in the form of compartmentalized ownership interests, the structure and the number of floors for

the entire property is shown.

“Architect”, “Construction Company” and “Construction confirmation authority” indicate those companies

or instituitions that provide relative services to each of the properties.

“Master lessee” indicates the master lessee that KRR enters into the Master Lease Agreement with.

“Type of master lease” indicates the types of master lease agreements concluded as of January 6, 2015,

which include “pass-through type” for the master lease in which rent received by the lessor is in principle

the same amount as the rent received by the master lessee from end-tenants, and “sublease type” for the

master lease in which a fixed amount of rent is received from the master lessee.

“PM” indicates the property manager with which a property management agreement has been concluded.

“Sub-PM” indicates the sub-property manager with which a sub-property management agreement has been

concluded.

“PML” is the probable maximum loss due to an earthquake and is based on an evaluation by Sompo Japan

Nipponkoa Risk Management as of September, 2014. KRR does not ensure their accuracy or that of

portfolio PML.

“Acquisition price” is the transfer price of the property in the relevant sale and purchase agreement rounded

down to the nearest million yen, and does not include consumption taxes or expenses incurred in the

acquisition.

“Appraisal value” indicates the appraisal value described in the respective real estate appraisal reports

prepared by real estate appraisers including, Japan Real Estate Institute, The Tanizawa Sogo Appraisal Co.,

Ltd. and Daiwa Real Estate Appraisal Co., Ltd. as requested by KRR. The values were evaluated by real

estate appraisers at one point in time, and KRR does not give any representation or other assurance with

respect to the accuracy or completeness of the appraisal values and other information they provide to us.

“Collateral” indicates the outline of collaterals, if any. Amount of collateral is based on what is described in

the registry as of September, 2014, rounded down to the nearest million yen.

“Number of tenants” indicates the number of tenants of each property as of September 30, 2014. As for

building tenants, if a tenant leases multiple spaces for a building, each space is counted as one tenant. In

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case of a pass-through type master lease, the number of end-tenants is shown in parentheses. In case of a

sublease type master lease, the number of master lessee is shown.

“Annual rent” indicates the amount obtained by multiplying the monthly rent (including common area

charges) as of September 30, 2014 (excluding those of warehouses; any changes in lease contracts agreed

by September 30, 2014 are reflected) by 12, rounded down to the nearest thousand yen. For sublease type

master leases, the figures are calcualated as the rent in the master lease agreement multiplied by 12 (any

changes in lease contracts agreed by September 30, 2014 are reflected) and rounded down to the nearest

thousand yen is shown.

“Tenant deposits” indicates the total amount of tenant leasehold and security deposits indicated in the

relevant lease agreements (excluding those for warehouses) for each property as of September 30, 2014,

rounded down to the nearest million yen.

“Leased area” indicates the total leased area based on the lease agreements for each property as of

September 30, 2014. As for lease agreements of buildings, the leased area of warehouses and land are

excluded. As for pass-through type master leases, the leased area based on the lease agreements between

the master lessee and the end-tenants as of September 30, 2014 is shown. As for sublease type master leases,

the leased area to the master lessee is shown.

“Leasable area” indicates the gross floor area of space (or land area in case of a land-only property) that

KRR considers to be available for lease in each property.

“Occupancy rate” indicates the ratio obtained by dividing leased area by leasable area for each property as

of September 30, 2014, rounded to the second decimal. The occupancy rate of the initial portfolio is

obtained by dividing the total leased area by the total leasable area of the whole portfolio.

“Remarks” indicates items believed to be important in terms of the relationship of rights and use of each

acquired property as well as items believed to be important in consideration of their impact on the appraisal

value, profitability and possibility of disposal of each acquired property as of January 6, 2015.

T-1 Fululu Garden Yachiyo

Property name Fululu Garden Yachiyo

Acquisition date February 10, 2015

Type of specified asset Trust beneficiary interest in real estate

Trustee Sumitomo Mitsui Trust Bank, Ltd.

Trust period September 26, 2014 to July 31, 2035

Seller G.K. JFW

Location A: 1-3-1 Murakami-minami, Yachiyo, Chiba

B: 1-4-1 Murakami-minami, Yachiyo, Chiba

Land

Form of ownership Proprietary ownership

Land area A: 22,207.34 m

2

B: 23,292.14 m2

Zoning Neighborhood commercial area

Building coverage ratio 80%

Floor-area ratio 300%

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Building


Gross floor area A: 50,960.84 m

2

B: 65,698.32 m2

Date constructed A: September 26, 2002

B: October 3, 2002

Use A: Retail and parking lot

B: Retail and parking lot

Structure/No. of floors A: S / 5 above-ground floors

B: S / 5 above-ground floors

Architect A: Research Institute of Architecture, Tokyo Branch

B: Research Institute of Architecture, Tokyo Branch

Construction company A: Takenaka Corporation, Higashi-Kanto Branch

B: Takenaka Corporation, Higashi-Kanto Branch

Construction confirmation authority The Building Center of Japan

Master lessee -

Type of master lease -

PM Kenedix Real Estate Fund Management, Inc.

Sub-PM Mall & SC Development Inc.

PML

A: 8.49%

B: 11.71%

Fululu Garden Yachiyo as a whole: 10.41%

Acquisition price 14,848 million yen

Appraisal value (as of) 15,000 million yen (October 1, 2014)

Real estate appraiser Daiwa Real Estate Appraisal Co., Ltd.

Collateral Pledged to Ito-Yokado Co., Ltd. for its tenant security deposit (3,690

million yen)

Lease summary (as of September 30, 2014)

Number of tenants 53

Annual rent 1,130,155 thousand yen

Tenant deposits 4,568 million yen

Leased area 77,057.56 m2

Leasable area 77,057.56 m2

Occupancy rate 100.0%

Remarks

This asset consists of two buildings. There is a piece of land between

the buildings, owned by the City of Yachiyo, which the trustee has

acquired a right from the city to use as a pedestrian walkway.

Others “A” refers to the building leased to Ito-Yokado. “B” refers to the

building leased to specialty store tenants.

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T-2 MONA Shin-Urayasu

Property name MONA Shin-Urayasu




Trust period March 27, 2008 to July 31, 2035

Seller JRP1 TMK

Location 1-5-1 Irifune, Urayasu, Chiba

Land

Form of ownership Co-ownership (34.3%)

Land area 15,875.86 m2 (Note 1)

Zoning Commercial area



Building

Form of ownership Compartmentalized ownership, co-ownership

Gross floor area 76,767.24 m2 (Note 2)

Date constructed October 17, 1990

Use Retail, Parking lot

Structure/No. of floors S, SRC / 2 underground and 20 above-ground floors (Note 3)

Architect Haseko Corporation, Engineering Division

Construction company Haseko Corporation

Construction confirmation authority Chiba Prefecture

Master lessee Aim Create Co., Ltd.

Type of master lease Pass-through type


Sub-PM Aim Create Co., Ltd.

PML SC building 9.81%

Parking lot building 9.10%



Real estate appraiser Japan Real Estate Institute

Collateral None


Number of tenants 1 (75)

Annual rent 623,447 thousand yen

Tenant deposits 652 million yen




Remarks This asset is a compartmentalized ownership building and consists of a

retail building, a parking building and an office building. Of these,

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KRR acquired the retail building and 2,067,684/6,020,608 ownership

in the parking building. The management bylaws of the property

designate its allowed usage and stipulate that any existing co-owners

hoping to sell their ownership interest must offer to sell their interest

preferentially to the other co-owners. The management bylaws also

designate Mitsui Fudosan Facilities Co., Ltd. as the administrator.

Others

(Note 1) KRR acquired compartmentalized ownership interest in this

building. As for the land, KRR acquired 2,067,684/6,020,608 interest,

but the land area for the entire property is shown.

(Note 2) Although this asset is a compartmentalized ownership

building, the gross floor area for the entire property is shown. The

gross floor area of the retail building is 19,173.7 m2 and that of the

parking building is 18,364.32 m2.


building, the structure and number of floors for the entire property is

shown. That of the retail building is “S, SRC / 1 underground and 4

above-ground floors”, and that of the parking building is “S / 6

above-ground floors”.

T-3 Passaggio Nishiarai

Property name Passaggio Nishiarai




Trust period May 21, 2013 to July 31, 2035

Seller G.K. Passaggio

Location 1-17-1 Nichiarai Sakaecho, Adachi-ku, Tokyo

Land


Land area 5,079.68 m2

Zoning Commercial area



Building


Gross floor area 21,996.90 m2

Date constructed March 29, 2010

Use Retail and parking lot

Structure/No. of floors S, SRC / 3 underground and 4 above-ground floors

Architect Yamashita Sekkei Inc.

Construction company Nishimatsu Construction Co., Ltd.

Construction confirmation authority Tokyo Prefecture

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PML 5.11%




Collateral None








Remarks None

Others None

T-4 Daikanyama Address Dixsept

Property name Daikanyama Address Dixsept




Trust period March 25, 2014 to July 31, 2035

Seller JRP2 TMK

Location 17-6 Daikanyamacho, Shibuya-ku, Tokyo

Land

Form of ownership Co-ownership (4.4%)

Land area 17,262.00 m2 (Note 1)

Zoning Category II residential area


Floor-area ratio 400% (up to 30m from Hachiman-dori)

300% (beyond 30m from Hachiman-dori)

Building

Form of ownership Compartmentalized ownership

Gross floor area 92,064.43 m2 (Note 2)

Date constructed August 1, 2000

Use Retail

Structure/No. of floors SRC / 4 underground and 36 above-ground floors (Note 3)

Architect Nihon Sekkei, Inc.

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Construction company Kajima Corporation

Construction confirmation authority Tokyo Prefecture





PML 8.41%




Collateral None








Remarks A part of property borderline is not confirmed, but there are no disputes

regarding borderline as of January 6, 2015.

Others

(Note 1) KRR acquired compartmentalized ownership interest in this

building. As for the land, KRR acquired 4,384,472/100,000,000

interest, but the land area for the entire property is shown.


building, the gross floor area for the entire property is shown. The

gross floor area of the retail building that KRR acquired is 7,261.27

m2 .


building, the structure and number of floors for the entire property is

shown. The structure and number of floors that KRR acquired are

“SRC / 5 above-ground floors” for “Building 6-101”, “SRC / 1

above-ground floor” for “Building 5-301” and “SRC / 1 above-ground

floor” for “Building 5-303” .

T-5 Unicus Ina

Property name Unicus Ina




Trust period September 26, 2006 to July 31, 2035

Seller Sumitomo Mitsui Finance and Leasing Co., Ltd.

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Location 2-188-1 Inamachi-gakuen, Kitaadachi-gun, Saitama

Land






Building




Use Retail

Structure/No. of floors S / 3 above-ground floors

Architect Taisei Corporation, Registered architect office

Construction company Taisei Corporation

Construction confirmation authority Bureau Veritas Japan Co., Ltd.

Master lessee P&D Consulting Co., Ltd.

Type of master lease Sublease type


Sub-PM CRE, Inc.

PML 5.72%




Collateral None


Number of tenants 1






Remarks A part of the land is settled for easement to Tokyo Electric Power Co.,

Inc. for setting up transmission lines.

Others None

T-6 Yorktown Kita-Kaname

Property name Yorktown Kita-Kaname




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Trust period February 10, 2015 to July 31, 2035


Location 1-6-1 Kita-kaname, Hiratsuka, Kanagawa

Land



Zoning Quasi-residential area



Building



Date constructed November 10, 2009

Use Retail, clinic


Architect CB Richard Ellis Asset Services K.K.

Construction company Asanuma Corporation

Construction confirmation authority K.K. Building Navigation

Master lessee YorkMart.Co., Ltd



Sub-PM Geo-Akamatsu Co., Ltd.

PML 11.71%




Collateral None


Number of tenants 1

Annual rent Not disclosed*

Tenant deposits Not disclosed*

Leased area Not disclosed*

Leasable area Not disclosed*


Remarks

The land for this property is a substitutional land located in Hiratsuka

City Planning’s Sanada / Kitakaname zone. The trustee’s interest in the

land comprises the ownership in the original land and the right to use

and earn revenues by using the substitutional land. The trustee plans to

acquire the ownership in the land on the day following the

announcement on the delivery of substitute property.

Others *Undisclosed as KRR has not obtained lessee’s consent.

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T-7 Unicus Yoshikawa

Property name Unicus Yoshikawa





Seller P&D Consulting Co., Ltd.

Location 797-1 Sakaecho, Yoshikawa, Saitama

Land



Zoning Quasi-industrial area



Building



Date constructed July 30, 2011

Use Retail

Structure/No. of floors S / 1 above-ground floor

Architect Obayashi Corporation

Construction company Obayashi Corporation

Construction confirmation authority Saitama Housing Inspection Center

Master lessee P&D Consulting Co., Ltd.



Sub-PM P&D Consulting Co., Ltd.

PML 4.39%




Collateral None








Remarks None

Others None

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T-8 Sports Club Renaissance Fujimidai

Property name Sports Club Renaissance Fujimidai






Location 3-12-33 Nukui, Nerima-ku, Tokyo

Land






Building




Use Gymnasium

Structure/No. of floors SRC / 1 underground and 2 above-ground floors

Architect K.K. Axs Engineering

Construction company Ichiken Co., Ltd.

Construction confirmation authority Nerima ward

Master lessee -



Sub-PM P&D Consulting Co., Ltd.

PML 9.11%




Collateral None


Number of tenants 1






Remarks None


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O-1 Blumer Maitamon

Property name Blumer Maitamon



Trustee Mitsubishi UFJ Trust and Banking Corporation

Trust period August 29, 2014 to July 31, 2035

Seller G.K. JRP3

Location 2-1-45 Maitamon-higashi, Tarumi-ku, Kobe, Hyogo

Land






Building



Date constructed June 27, 2006

Use Retail


Architect Asanuma Corporation

Construction company Daiwa System Co., Ltd.

Construction confirmation authority Bureau Veritas Japan Co., Ltd.

Master lessee -



Sub-PM Tansei Mall Management Co., Ltd.

PML 5.22%



Real estate appraiser The Tanizawa Sōgō Appraisal Co., Ltd.

Collateral None








Remarks None

Others None

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O-2 Life Takadono (Land)

Property name Life Takadono (Land)





Seller K.K. J

Location 5-6-3 Takadono, Asahi-ku, Osaka, Osaka

Land





Floor-area ratio 300% (up to 25 m from west)

200% (beyond 25 m from west)

Building

Form of ownership -

Gross floor area -

Date constructed -

Use -

Structure/No. of floors -

Architect -

Construction company -

Construction confirmation authority -

Master lessee -



Sub-PM Nippon Commercial Development Co., Ltd.

PML -




Collateral None


Number of tenants 1






Remarks None

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Others

As of January 6, 2015, the lessee is constructing a building for a

supermarket, upon its right based on the commercial fixed-term land

lease.

*Undisclosed as KRR has not obtained lessee’s consent.

O-3 Piago Kahma Home Center Omihachiman

Property name Piago Kahma Home Center Omihachiman




Trust period May 18, 2006 to July 31, 2035

Seller G.K. JFV

Location A: 223-3 Ippongi, Takakaicho, Omihachiman, Shiga

B: 233-1 Santanda, Takakaicho, Omihachiman, Shiga

Land






Building

Form of ownership A, B: Proprietary ownership


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B: 4,937.85 m2

Date constructed A: September 15, 2005

B: August 12, 2005

Use A, B: Retail

Structure/No. of floors A: S / 2 above-ground floors

B: S / 1 above-ground floor

Architect A: Kiuchi Construction Co., Ltd.

B: Daiken Tosikaihatu Co., Ltd.

Construction company A: Kiuchi Construction Co., Ltd.

B: Aisawa Construction Co., Ltd. (Note)

Construction confirmation authority K.K. Organization of Confirmation & Inspection Annex

Master lessee -



Sub-PM Geo-Akamatsu Co., Ltd.

PML

A: 3.34%

B: 11.52%

Piago Kahma Home Center Omihachiman as a whole: 6.97%


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Collateral Pledged to U-Store Co., Ltd. for its tenant security deposit (670 million

yen)


Number of tenants 2






Remarks None

Others

“A” refers to the building leased for a Piago store. “B” refers to the

building leased for a Kahma Home Center store.

(Note) The construction company during the building certification

process was Daiwa System Co., Ltd., but actual construction company

is shown.

*Undisclosed as KRR has not obtained main lessee’s consent.

N-1 Kahma Home Center Nakagawa Tomita (Land)

Property name Kahma Home Center Nakagawa Tomita (Land)






Location 462 Nunobeta, Yonokizu, Tomidacho, Nakagawa-ku, Nagoya, Aichi

Land






Building

Form of ownership -

Gross floor area -

Date constructed -

Use -


Architect -



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Master lessee -



Sub-PM -

PML -




Collateral None


Number of tenants 1








Others

The lessee owns a building used as a hardware store, upon its right

based on the commercial fixed-term land lease.


N-2 Valor Ichinomiya-Nishi

Property name Valor Ichinomiya-Nishi






Location 5-1-16 Hachiman, Ichinomiya, Aichi

Land



Zoning Industrial area



Building



Date constructed July 1, 2002

Use Retail, gymnasium

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Architect Chubu Sekkei Co.,Ltd.

Construction company Tsuchiya Corporation

Construction confirmation authority Ichinomiya City

Master lessee Valor Co., Ltd.



Sub-PM Itochu Urban Community Ltd.

PML 14.84%




Collateral None


Number of tenants 1






Remarks None


N-3 K’s Denki Nakagawa Tomita (Land)

Property name K’s Denki Nakagawa Tomita (Land)






Location 436-8 Nunobeta, Yonokizu, Tomidacho, Nakagawa-ku, Nagoya, Aichi

Land



Zoning Category II residential area (up to 30 m from south)

Category I residential area (beyond 30 m from south)



Building

Form of ownership -

Gross floor area -

Date constructed -

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Use -


Architect -



Master lessee -



Sub-PM -

PML -

Acquisition price 889 million yen

Appraisal value (as of) 903 million yen (October 1, 2014)


Collateral None


Number of tenants 1









F-1 Sunny Noma

Property name Sunny Noma




Trust period April 6, 2007 to July 31, 2035


Location 3-10-30 Noma, Minami-ku, Fukuoka, Fukuoka

Land

Form of ownership Proprietary ownership, leasehold rights (Note)


Zoning Neighborhood commercial area (up to 30 m from Oike-dori)

Category II residential area (beyond 30 m from Oike-dori)

Building coverage ratio 80% (up to 30 m from Oike-dori)

60% (beyond 30 m from Oike-dori)

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Floor-area ratio 300% (up to 30 m from Oike-dori)

200% (beyond 30 m from Oike-dori)

Building




Use Retail

Structure/No. of floors S / 1 above-ground floor

Architect Nakamuta & Suenaga Designing (JV)

Construction company Nishimatsu Construction Co., Ltd.

Construction confirmation authority Fukuoka City

Master lessee -



Sub-PM CRE, Inc.

PML 5.09%




Collateral None


Number of tenants 1






Remarks

The trustee has signed a fixed-term land lease agreement for business

use with Seiyu GK, the land owner of a portion of the land, as follows:

Type of land leasehold: Leasehold for the purpose of building

ownership as stipulated in Article 24 of Act on Land and Building

Leases

Period of land lease: 20 years from March 16, 2007

Rent (monthly): 875,000 yen

Guarantee deposit: 5,250,000 yen

The trustee has signed with Seiyu GK, the land owner, a fixed-term

land lease contract on a portion of the land, for a duration of 10 years

beginning March 2027.

Type of land leasehold: Leasehold for the purpose of building

ownership as stipulated in Article 24 of Act on Land and Building

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Leases

Period of land lease: 10 years from March 16, 2027

Rent (monthly): 875,000 yen

Guarantee deposit: 5,250,000 yen

Others

(Note) A portion of the land (3,824.52 m2) is leasehold rights based on

commercial fixed-term land lease described in remarks above.


R-1 Roseo Mito

Property name Roseo Mito





Seller G.K. Roseo

Location 978-39 Kasaharacho, Mito, Ibaraki, etc

Land






Building


Gross floor area

A: 138.32 m2

B: 9,684.79 m2

C: 4,549.60 m2

D: 13,047.79 m2

E: 330.75 m2

F: 265.65 m2

Date constructed

A: December 12, 2008

B, E, F: March 18, 2009

C: April 30, 2009

D: March 26, 2009

Use A, B, D, E, F: Retail, C: Gymnasium

Structure/No. of floors A, B, D, E, F: S / 1 above-ground floor

C: S / 2 above-ground floors

Architect

A: Tetsu Works Architect Office

B, E, F: Kurehanishiki Construction Co., Ltd.

Change of use: Registered Architect Studio Work House

C: Kishi-Sekkei Co., Ltd.

D: Nihon Jutaku Corporation, Registered Architect Office

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Construction company

A: Kurehanishiki Construction Co., Ltd.

B, E, F: Kurehanishiki Construction Co., Ltd.

C: Kurehanishiki Construction Co., Ltd.

D: Nihon Jutaku Corporation

Construction confirmation authority Mito City

Master lessee Itochu Urban Community Ltd.



Sub-PM Itochu Urban Community Ltd.

PML

A: 5.66%

B, E, F: 5.41%

C: 3.58%

D: 3.07%




Collateral None








Remarks

KRR has agreed with G.K. Roseo, the seller, on the construction of a

new building (building expansion), utilizing the underutilized floor

area, as follows:

(i) The trustee shall lease portion of the land (6,408.80 m2) at no charge

to G.K. Roseo, the seller, for building expansion purpose;

(ii) G.K. Roseo shall sign a fixed-term building lease option agreement

with a tenant that will occupy the building to be constructed on the

leased land;

(iii) KRR can claim for the transfer of the status and rights that G.K.

Roseo expects to obtain through a range of contracts in relation to the

construction of a new building (building expansion), including

construction contracts and the fixed-term building lease option

agreement (hereinafter referred to as “claim in relation to a new

building”);

(iv) When making the claim in relation to a new building, KRR shall

pay the same amount G.K. Roseo pays for new building construction.

Note that KRR bears no obligation to make such claim under the

purchase and sale agreements; KRR shall make such claim based on its

24






appropriate investment decisions

・The property consists of four buildings (A, B , C and D) and a land

where these buildings stand

・According to the property register, the land is subject to repurchase

right by the Ibaraki prefectural government (until September 26, 2017),

which will expire if not exercised by this date.

Others

(Note) “A” refers to the building leased for a coffee shop. “B”, “E” and

“F” refer to the building leased for a mall. “C” refers to the building

leased for a sports facility. “D” refers to the building leased for a

hardware store.

R-2 K’s Denki Aomori Honten

Property name K’s Denki Aomori Honten






Location A: 2-8-4 Higashi-ohno, Aomori, Aomori

B: 2-10-1 Higashi-ohno, Aomori, Aomori

Land


Land area A: 8,872.04 m

2

B: 8,296.06 m2




Building



2

B: 6,346.50 m2

Date constructed A: October 31, 2005

B: November 2, 2005

Use A, B: Retail

Structure/No. of floors A: S / 1 above-ground floor

B: S / 2 above-ground floors

Architect K.K. Kyoei Planning Design

Construction company A: Nihon Kensetsu Co., Ltd.

B: Nihon Kensetsu Co., Ltd.

① Construction confirmation authority Aomori City

Master lessee Denkodo Co., Ltd.



25






Sub-PM CRE, Inc.

PML

A: 4.57%

B: 4.48%

K’s Denki Aomori Honten as a whole: 4.87%




Collateral None


Number of tenants 1






Remarks None

Others

“A” refers to the building leased for Tsutaya/Hard Off stores. “B”

refers to the building leased for a K’s Denki store.


R-3 Super Sports Xebio Aomori-Chuo

Property name Super Sports Xebio Aomori-Chuo






Location 2-12-1 Higashi-ohno, Aomori, Aomori

Land






Building




Use Retail


Architect Takenaka Corporation

Construction company Takenaka Corporation

26






Construction confirmation authority Japan ERI Co., Ltd.

Master lessee Xebio Co., Ltd.



Sub-PM CRE, Inc.

PML 5.20%

Acquisition price 898 million yen

Appraisal value (as of) 901 million yen (October 1, 2014)


Collateral None


Number of tenants 1






Remarks None


27






3. Details of sellers

T-1 Fululu Garden Yachiyo

Company name G.K. JFW

Address 2-9-1 Nihombashi, Chuo-ku, Tokyo

Name and title of

representative

Representative Partner: 1-7-1 Yurakucho, Chiyoda-ku, Tokyo

Ippan Shadan Hojin JSM

Shingo Kaminaga, Director

Description of business

1. Purchase/sale, holding, leasing, management and brokerage of real

estate properties

2. Real estate appraisal

3. Holding and purchase/sale of trust beneficiary interests

4. Holding, management and purchase/sale of marketable securities

5. Holding, management and purchase/sale of receivables

6. All kinds of services ancillary to the above businesses

Capital 300 thousand yen

Incorporation August 7, 2014

Net assets Undisclosed as KRR has not obtained the seller’s consent.

Total assets Undisclosed as KRR has not obtained the seller’s consent.

Relationship between KRR/the Asset Manager and the seller

Capital relationship

Kenedix, Inc., a parent company under the Financial Instruments and

Exchange Act and holding 100% of the Asset Manager, owns a 50.0% stake

in the Tokumei Kumiai operated by the seller.

Personnel

relationship

No special personnel relationship between KRR/the Asset Manager and the

seller.

Business relationship No special business relationship between KRR/the Asset Manager and the

seller.

Related party

transactions

The seller is not deemed a related party under either the Investment Trust

Law or “Retail REIT Division’s Internal Regulations on Related Party

Transactions” of the Asset Manager.

(As of December 22, 2014)

28






T-2 MONA Shin-Urayasu

Company name JRP1 TMK

Address 3-1-1 Marunouchi, Chiyoda-ku, Tokyo

c/o Tokyo Kyodo Accounting Office

Name and title of

representative Masakazu Hongo, Director


1. Operations related to the transfer, management and disposal of

specified assets as part of an asset liquidation program that is based on

laws and regulations on the securitization of assets

2. All kinds of services ancillary to the securitization of specified assets

Capital 1,350,100 thousand yen

Incorporation February 25, 2014





Kenedix, Inc., the parent company under the Financial Instruments and

Exchange Act and holding 100% of the Asset Manager, owns 100% of the

preferred equity securities issued by the seller.

Personnel

relationship


seller.

Business relationship Kenedix, Inc. is entrusted with asset management by the seller.

Related party

transactions

The seller is deemed a related party under both the Investment Trust Law

and the “Retail REIT Division’s Internal Regulations on Related Party



T-3 Passaggio Nishiarai

Company name G.K. Passaggio

Address 1-1-8 Motoakasaka, Minato-ku, Tokyo

c/o Akasaka International Accounting Co., Ltd.

Name and title of

representative

Representative Partner: Ippan Shadan Hojin Passaggio

Kenzo Yamamoto, Director


1. Acquisition, holding and disposition of marketable securities

2. Acquisition, holding and disposition of real estate properties

3. Acquisition, holding and disposition of credit

4. Leasing and management of real estate properties


Capital 50 thousand yen

Incorporation April 19, 2013



29








No special capital relationship between KRR/the Asset Manager and the

seller.

Personnel

relationship


seller


Related party

transactions

The seller is deemed a related party under the “Retail REIT Division’s

Internal Regulations on Related Party Transactions” of the Asset Manager

but is not deemed a related party under the Investment Trust Law.


T-4 Daikanyama Address Dixsept

Company name JRP2 TMK

Address 3-1-1 Marunouchi, Chiyoda-ku, Tokyo

c/o Tokyo Kyodo Accounting Office

Name and title of

representative Masakazu Hongo, Director


1. Operations related to the transfer, management and disposition of

specified assets as part of an asset liquidation program that is based on

laws and regulations on the securitization of assets

2. All kinds of services ancillary to the securitization of specified assets

Capital 1,200,100 thousand yen






Kenedix, Inc., a parent company under the Financial Instruments and

Exchange Act holding 100% of the Asset Manager, owns 100% of the

preferred equity securities issued by the seller.

Personnel

relationship


seller.


Related party

transactions

The seller is deemed a related party under both the Investment Trust Law

and “Retail REIT Division’s Internal Regulations on Related Party



30






T-5 Unicus Ina

T-6 Yorktown Kita-Kaname

T-8 Sports Club Renaissance Fujimidai

N-1 Kahma Home Center Nakagawa Tomita (Land)

N-2 Valor Ichinomiya-Nishi

N-3 K’s Denki Nakagawa Tomita (Land)

F-1 Sunny Noma

R-2 K’s Denki Aomori Honten

R-3 Super Sports Xebio Aomori-Chuo

Company name Sumitomo Mitsui Finance & Leasing Co., Ltd.

Address 3-9-4 Nishi-shimbashi, Minato-ku, Tokyo

Name and title of

representative Yoshinori Kawamura, President


1. Acquisition and leasing of a range of equipment and facilities,

including ships, aircrafts, vehicles, industrial machinery, machine tools,

electronic computers, office appliance, medical equipment, commercial

equipment; and properties, real estates and other rights

2. Purchase/sale of used equipment/facilities and used properties of the

same types as above

3. Maintenance of equipment/facilities and properties of the same types

as above

4. Commissioned office work using electronic computers

5. Consulting on office automation and management rationalization

6. Financial services

7. Data processing

8. Transaction of financial instruments

9. Marketing of life insurance policies

10. Acquisition of and investment in stocks and other securities


Capital 15,000 million yen


Net assets 671,118 million yen (consolidated)

Total assets 4,355,200 million yen (consolidated)

Major shareholders

(shareholding ratios)

Sumitomo Mitsui Financial Group, Inc. 58.23%

Sumitomo Corporation 38.82%

Sumitomo Mitsui Finance & Leasing Co., Ltd. 2.95%

(As of September 30, 2014)


Capital Relationship

No special capital relationship between KRR/the Asset Manager and the

seller. Also, no special capital relationship between the related parties/

affiliates of KRR/the Asset Manager and the related parties/affiliates of the

seller.

Personnel

relationship

The Asset Manager has an assigned employee from the sellor as of Feberary

10, 2015.

31






Business

Relationship

The seller, as an Alliance Company for KRR, provides services and property

information preferentially to KRR in accordance with an alliance agreement.

Related party

transactions

The seller is not deemed a related party under either the Investment Trust

Law or the “Retail REIT Division’s Internal Regulations on Related Party


(As of September 30, 2014)

T-7 Unicus Yoshikawa

Company name P&D Consulting Co., Ltd.

Address 1-7-5 Sakuragicho, Omiya-ku, Saitama, Saitama

Name and title of

representative Takao Mizoguchi, President


1. Planning, survey, designing and consulting in relation to effective

utilization of real estate properties

2. Planning, designing, construction, supervision and other contract works

for buildings and structures

3. Maintenance, management and repair of facilities, equipment and

fixtures for retail facilities

4. Leasing and management of re

notice concerning completion of acquisition of assets...planning department, retail reit division...

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