Heiwa Real Estate REIT : Notice Concerning Borrowing of Funds

January 18, 2023

For Immediate Release

REIT Issuer

HEIWA REAL ESTATE REIT, Inc.

5-1 Nihonbashi Kabuto-cho,Chuo-ku, Tokyo

Aya Motomura, Executive Director

(Securities Code: 8966)

Asset Management Company

HEIWA REAL ESTATE Asset Management CO., LTD.

Masanori Hirano, Representative Director, President and Chief Executive Officer Inquiries: Junichi Kawamura, Managing Officer and General Manager of Planning & Finance Department TEL. [phone]

Notice Concerning Borrowing of Funds

HEIWA REAL ESTATE REIT, Inc. (the "Investment Corporation") announced today the following decision to borrow funds as described below.

		Details
1. Borrowing of Funds
(1) Details of Borrowing
Term Loan 65-①
	Lender	The Chiba Bank, Ltd.
	Loan Amount	800 million yen
	Interest Rate	Base interest rate (JBA 3-month Japanese Yen TIBOR) + 0.450% (Note)
	Drawdown Date	January 30, 2023
	Borrowing Method	Borrowing based on the individual loan agreement with the above lender scheduled to
	be concluded on January 26, 2023
		The last day of every January, April, July and October (the first interest payment date
	Interest Payment Date	shall be April 28, 2023) and the principal repayment date (however, in the event that
		one of these days is not a business day, the business day immediately preceding it)
	Principal Repayment Date	January 30, 2030
	Principal Repayment Method	Lump-sum repayment on the principal repayment date
	Collateral and Guarantee	Unsecured and unguaranteed
Term Loan 65-②
	Lender	Kansai Mirai Bank, Limited
	Loan Amount	800 million yen
	Interest Rate	Base interest rate (JBA 3-month Japanese Yen TIBOR) + 0.480% (Note)
	Drawdown Date	January 30, 2023
	Borrowing Method	Borrowing based on the individual loan agreement with the above lender scheduled to
	be concluded on January 26, 2023
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	The last day of every January, April, July and October (the first interest payment date
Interest Payment Date	shall be April 28, 2023) and the principal repayment date (however, in the event that
	one of these days is not a business day, the business day immediately preceding it)
Principal Repayment Date	November 28, 2031
Principal Repayment Method	Lump-sum repayment on the principal repayment date
Collateral and Guarantee	Unsecured and unguaranteed

(Note) The base interest rate applicable to the calculation period for the interest payable on an interest payment date is the 3-month Japanese Yen TIBOR released by JBA TIBOR Administration (the "JBATA") two business days preceding the first day of each interest calculation period. For JBA's Japanese Yen TIBOR, please check with JBATA's website (http://www.jbatibor.or.jp/english/rate/).

(2) Reason for Borrowing

The total amount of proceeds from the borrowing described above will be used to partly find the acquisition of "HF IMAIKE-MINAMI RESIDENCE", "HF FUSHIMI RESIDENCE", and the expenses associated with the acquisition.

• For more details about the acquisition of the specified asset, please refer to the press release "Notice Concerning Acquisition of Assets (HF NAKANO-SAKAUE RESIDENCE and 2 Other Properties)" announced on December 23, 2022.

2. Status of Interest-Bearing Liabilities after Borrowing of Fund

(Unit: million yen, fractions of one unit have been rounded off)

		Before	After	Change
		Borrowing of fund	Borrowing of fund
	Short-term loans	200	200	-
	Long-term loans due	12,760	12,760	-
	within 1 year
	Long-term loans	79,197	80,797	1,600
	Total loans	92,157	93,757	1,600
	Investment corporation bonds	8,900	8,900	-
	Total interest-bearing liabilities	101,057	102,657	1,600

3. Other

The risks associated with the borrowing of funds as described above do not change from those detailed in "Investment Risks" in the periodic securities report (yuka shoken hokokusho) for the fiscal period ended May 2022 (41st Fiscal Period), which was submitted on August 26, 2022.

• Investment Corporation Website:https://www.heiwa-re.co.jp/en/

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