Frontier Real Estate Investment : Notice Concerning Execution and Repayment of Long-term Borrowing

Translation Purpose Only

January 19, 2018

To All Concerned Parties

6-8-7 Ginza, Chuo-ku, Tokyo

Frontier Real Estate Investment Corporation

Kazuichi Nagata, Executive Director

(Securities Code: 8964)

Asset Management Company:

Mitsui Fudosan Frontier REIT Management Inc.

Goro Toyama

Chief Executive Officer and Representative Director

Inquiries:

Mitsui Fudosan Frontier REIT Management Inc.

Takashi Iwamoto

Chief Finance Officer and Director

Tel: [phone]

Notice Concerning Execution and Repayment of Long-term Borrowing

Frontier Real Estate Investment Corporation (the "Investment Corporation") hereby announces that it has decided to execute long-term borrowing. The Investment Corporation, additionally, announces it would repay long-term borrowing on January 23, 2018. Details are provided below.

1. Execution of Long-term Borrowing

• (1) Purpose

  To appropriate for the repayment of long-term borrowing as of January 7, 2015.

• (2) Details ① Drawdown Date : January 23, 2018 ② Repayment of Principal : Payment in full on the maturity date ③ Loan Type : Unsecured, Unguaranteed ④ Lender, Amount, Maturity Date and Interest Rate:

Lender	Amount	Maturity Date	Interest Rate
The Norinchukin Bank	￥1,000 Million	January 23, 2023	0.21750 % (Interest Rate is fixed until the maturity date.)

2. Repayment of Long-term Borrowing

Details of the repayment of long-term borrowing on January 23, 2018 are as follows.

Lender	Borrowing Amount	Drawdown Date	Maturity Date	Repayment of Principal	Loan Type
The Norinchukin Bank	￥1,000 Million	January 7, 2015	January 23, 2018	Payment in full on the maturity date	Unsecured Unguaranteed

3. Change in the Balance of Borrowings

(Unit : ￥Million)

Before This refinance	After This refinance	Variance
Short-term Borrowings	4,500	4,500	－
Long-term Borrowings	77,900	77,900	－
Investment Corporation Bonds	3,000	3,000	－
Borrowings Total	85,400	85,400	－

(*) Long-term Borrowings include the balance of borrowings due within one year.

4. Others

Regarding the loan repayment risk, there is no important change to the "Investment risks" description in the latest securities registration statement submitted on September 27, 2017.

This document is released to media organizations through the "Kabuto Club"(the press club of the Tokyo Stock Exchange), the Ministry of Land, Infrastructure and Transport Press Club, and the Press Club for the Ministry of Land, Infrastructure and Transport Construction Paper.

Frontier Real Estate Investment website:http://www.frontier-reit.co.jp/eng/

Disclaimer

This information was originally publicized in the original Japanese language and has been translated for reference purposes only. Frontier Real Estate Investment Corporation guarantees neither the completeness nor the accuracy of this English translation. For complete and accurate information, please refer to the press release in Japanese. In addition, this press release is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in the Investment Corporation. Investment decisions are made at the investor's sole discretion and responsibility and are made at their own risk. The Investment Corporation and its affiliates disclaim any responsibility or liability for the consequence of investment in the Investment Corporation.