Japan Metropolitan Fund Investment : Notice Concerning Acquisition of Trust Beneficiary Right in Real Estate in Japan (JMF-Residence Tenjimbashisuji 6-chome)

December 14, 2022

To all concerned parties:

Investment Corporation

Japan Metropolitan Fund Investment Corporation

(Tokyo Stock Exchange Company Code: 8953）

Representative: Masahiko Nishida, Executive Director

URL: https://www.jmf-reit.com/english/

Asset Management Company

KJR Management

Notice Concerning Acquisition of Trust Beneficiary Right in Real Estate in Japan

(JMF-Residence Tenjimbashisuji 6-chome)

Japan Metropolitan Fund Investment Corporation (“JMF”) announces today that KJR Management, JMF’s asset manager (the “Asset Manager”), determined to acquire of the trust beneficiary right in real estate in Japan (the “Property”) regarding preferential negotiation rights for “(Temporary Name) SÉRÉNiTÉ Nagaranaka 1-chome Project” announced in the news release titled “Notice Concerning Acquisition of Trust Beneficiary Right in Real Estate in Japan, Real Estate in Japan and Preferential Negotiation Rights and Disposition of Trust Beneficiary Right in Real Estate in Japan and Real Estate in Japan (Acquisition: 5 properties, Preferential Negotiation Rights:1 right, Disposition:2 properties)” dated October 19, 2022 as outlined below.

1. Overview of Acquisition

(Note 1) With regard to “(Temporary Name) SÉRÉNiTÉ Nagaranaka 1-chome Project”, JMF’s management name has become “JMF- Residence Tenjimbashisuji 6-chome”. The building is currently under construction, and the facility will be referred to as “SÉRÉNiTÉ Tenroku Miracle” (read as “Miraku”).

(Note 2) Agreement has been reached with the seller that the JMF-Residence Tenjimbashisuji 6-chome will be established a trust with the property as trust assets by the time of the acquisition and JMF will acquire the trust beneficiary right of the trust.

(Note 3) Since the building is currently under construction, an appraisal agency conducted an “uncompleted building appraisal”, which was enacted on November 1, 2014, in accordance with the real property appraisal standards (revised on May 1, 2014) specified by the Ministry of Land, Infrastructure, Transport and Tourism, and the appraisal amount indicated in the appraisal report is the appraisal value.

(Note 4) As announced in the news release titled “Notice Concerning Acquisition of Trust Beneficiary Right in Real Estate in Japan, Real Estate in Japan and Preferential Negotiation Rights and Disposition of Trust Beneficiary Right in Real Estate in Japan and Real Estate in Japan (Acquisition: 5 properties, Preferential Negotiation Rights: 1 right, Disposition: 2 properties)” dated October 19, 2022, the payment for the acquisition of JMF-Residence Osaka Noda was conditional on concluding a purchase

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agreement for the Property between JMF and the seller. The purchase agreement was concluded on December 14, 2022. JMF plans to acquire JMF-Residence Osaka Noda on December 23, 2022.

(Note 5) The currently-scheduled acquisition date is indicated, but since the building is currently under construction, the acquisition date is subject to change depending on the progress of the construction.

2. Reason for Acquisition

Highlights

Working with a group company of SUNADA CONSTRUCTION. INC which carries out development work mainly in the Kansai Region, acquired a new property in exit for development project, following the acquisition of JMF-Residence Osaka Noda, through bilateral transactions.

As there have been constant changes to the operating environment surrounding real estate, such as widespread e-commerce and remote working due to the rapid advancement in information technologies, and the trend of mixed-use by area and by property, JMF aims to optimize its portfolio in response to such changes. To this end, JMF will continue to secure stable earnings on a medium to long term basis and ensure steady growth of operating assets by promoting carefully-screened investment in retail facilities, office buildings, residences, hotels, and mixed-use properties used for a combination of those purposes, located mainly in urban areas.

JMF acquired the new property in exit for development project from a group company of SUNADA CONSTRUCTION. INC (the “Seller”), the developer of JMF-Residence Osaka Noda, the acquisition of which JMF announced on October 19, 2022. The acquisition of the Property was made based on a newly built relationship while the conditions in the real estate trading market remain harsh. Following the transaction, JMF expects growing opportunities for future acquisitions.

3. Property Summary

For acquisition of the Property, JMF came to the decision based on evaluation of the following.

Location

• The Property is conveniently located within an approximately two-minute walk from Tenjimbashisuji 6-chome station on the Osaka Metro Tanimachi Line, the Sakaisuji Line, and the Hankyu Senri Line. Being located within two kilometers by road from the city center of Umeda, it meets the needs of those who prioritize residences located in close proximity to their workplace. Through services between the Osaka Metro and Hankyu Senri lines provide easy access to a wide variety of areas, including the Kyoto area.
• The Property is conveniently situated for daily living, as there are convenience stores and a discount supermarket nearby as well as a variety of stores along the Tenjimbashisuji Shopping Street, which is known as the longest shopping street in Japan. JMF thus expects high tenant engagement and occupancy rates.

Building Spec

• A new apartment building is scheduled to be completed in January 2024. Among a total of 60 units, 40 units will be 1LDK of approximately 30 m2, which are in limited supply, and the remaining 20 units will be 1DK. The market demand for these types of units is high among single adults and the property meets their needs.

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• The Property bears the name of SÉRÉNiTÉ, a brand operated by SUNADA CONSTRUCTION. INC mainly in the Kansai Region and known for high-grade designer apartments, which is expected to appeal to potential tenants.

Potential

• The population of Kita-ku,Osaka-shi is expected to continue to grow until around 2040. Residential demand is strong and thus stable rental demand can be expected for the Property.
• Property Location Map

Wide-areaMap *For enlarged map, please refer to QR code.

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・With regard to “PML“, since the construction is not yet completed, JMF plans to obtain an analysis report for earthquake risks by the time of acquisition.

・“Number of tenants“, “Annual rent“, “Tenant leasehold / security deposit“, “Total leased area“ and “Occupancy rate (based on leased area)“ have been left blank (indicated with a dash), as the asset to be acquired is currently under construction.

・“Total leasable area“ is based on design documents, etc.

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4. Overview of Seller

5. Matters Concerning Forward Commitment

Under the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators”, the acquisition of the Property is considered to be a “forward commitment, etc. (Note)” by an investment corporation. If JMF cannot meet its forward commitment, 20% of the expected purchase price shall be paid as a penalty for breach of contract.

(Note) Forward commitment, etc. is defined as “a postdated sales and purchase agreement which provides for the delivery and settlement to take place one month or more from the effective date of the agreement or any other related agreements.”

The property is currently under construction and is scheduled to be completed in January 2024, and as a result, JMF is exposed to construction completion risks, property transfer risks, and other risks until the building is completed. JMF plans to mitigate these construction completion and property transfer risks by setting the following main points as conditions to payment of the purchase price.

• Construction of the building in accordance with the design drawings specified in the purchase agreement, acquisition of certification of passed inspection, and acquisition of all permits and approvals required by laws and regulations;
• Prior written consent of the buyer for any change to the specifications, quantities, and the like of the building;
• Discussion on a review of sales and other terms (including reduction of the purchase price and postponement of the execution date) if it becomes reasonably clear that the completion date is to be extended by 30 days or more due to a delay in construction work, with the right to terminate the contract in case of a failure to reach agreement (However, if such termination is due to a delay in completion caused by an underground obstruction, and the seller provides the buyer with the basis for such termination based on objective data, and the buyer reasonably accepts such basis as reasonable, then a penalty for breach contract is not permitted.); and
• Confirmation of compliance by the building with the Architectural Standards Act and other

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