MIRAI : (Delayed)Notice Concerning Acquisition and Lease of Real Estate Trust Beneficiaries in Japan (4 Assets)

December 13, 2021

For Immediate Release

Real Estate Investment Trust:

MIRAI Corporation

Michio Suganuma, Executive Director

(Securities Code: 3476)

Asset Management Company:

Mitsui Bussan & IDERA Partners Co., Ltd.

Michio Suganuma, Representative Director, President

Contact: Nobuaki Takuchi, Executive Director, CFO

TEL: [phone]

Notice Concerning Acquisition and Lease of Real Estate Trust Beneficiaries in Japan("Ehime Building/Hiroshima", "Tsurumi Fuga 1", "BIGMOTOR Ginan (land)"

and "Yokohama-Daikokucho Maintenance Center (land)")

Mitsui Bussan & IDERA Partners Co., Ltd. (hereinafter the "Asset Manager"), the asset management company of MIRAI Corporation (hereinafter "MIRAI") announces that MIRAI has decided to make the acquisition (hereinafter the "Acquisition") and the start the lease of assets as follows.

1． Overview of the Acquisition

1. Assets to be Acquired

Asset Category/

Agreement

Acquisition

Acquisition

Name

Seller

Price

Asset Type (Note 1)

Date (Note 2)

Date

(million yen) (Note 3)

Office

Ehime Building/Hiroshima

2,780

Fuyo General Lease

January

Co., Ltd.

Core Asset

Tsurumi Fuga 1

5,300

12, 2022

December

Retail

13, 2021

Nippon Commercial

BIGMOTOR Ginan (land)

1,080

Development Co., Ltd.

Growth Asset

Yokohama-Daikokucho

March

(New Type

Industrial

CTF 1 GK

1,490

Maintenance Center (land)

25, 2022

Asset)

Total

10,650

(Note 1) "Asset Category/Asset Type" is a classification based on the usage of assets. For details, please refer to Reference Material 2 "Descriptions of the details of Asset to be Acquired."

(Note 2) "Agreement Date" is the signing date of the sale and purchase agreement with the seller.

(Note 3) "Acquisition Price" shows the sale and purchase value of each Asset to be Acquired that is stated in the sale and purchase agreement with the seller. The sale and purchase value does not include national or local consumption tax or expenses necessary for the acquisition, and it is rounded down to the nearest million yen. The same shall apply hereinafter.

Note:	This press release is a document that will be released publicly relating to acquisition and lease of real estate trust beneficiaries in
	Japan and is not prepared for the purpose of solicitation for investment. Before initiating investments, MIRAI asks investors to ensure
	that they refer to the prospectus for the issuance of new investment units and the secondary offering of investment units and
	amendments thereto prepared by MIRAI, and that they undertake investment at their own discretion and responsibility.
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1. Funds for Acquisition: Proceeds from the issuance of new investment units, loans and own funds

(Note) For details of the issuance of new investment units and loans, please refer to the "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units" and "Notice Concerning Borrowing of Funds" announced today.

1. Payment Method: The entire amount will be paid on the date of acquisition
   Under the "Comprehensive Guideline for Supervision of Financial Instruments Business Operators", the acquisition of "Yokohama-Daikokucho Maintenance Center (land)" is considered to be a "forward commitment, etc. (Note1)".

Please refer to "8. Forward Commitments and Other Matters" below for the details of the termination clause, etc.

(Note) A forward dated contract for the sale and purchase of a property which is to be settled and delivered more than one month after the conclusion of the contract, and any other similar contract. The same shall apply hereinafter.

1. Annual Rent: 572 million yen (Note)
   MIRAI has determined that the tenants of the Assets to be Acquired conforms with the tenant selection criteria described in the "Report on the Operation System of Issuer of Real Estate Investment Trust Securities (Japanese

versions only)" submitted on July 29, 2021.

(Note) For the definition of annual rent, please refer to Reference Material 2 "Descriptions of the details of assets to be acquired"

2. Reasons for Acquisition

MIRAI plans to implement two pillars of growth strategy in post-COVID-19 market. The first pillar is the improvement of portfolio defensiveness and MIRAI will focus on investment in neighborhood shopping centers (Note1), industrial assets (Note2), and land assets (Note 3) that are likely to generate stable cashflow even under the impact of COVID-19 from pipeline assets. The second pillar is to the expansion of asset under management looking ahead into post-COVID-19 reopening (economic recovery phase) and MIRAI aims to enhance unitholders' value such as DPU growth through active asset expansion including investment into asset class that is expected to experience

demand recovery along with recovery in footfall.

(Note 1) "Neighborhood shopping centers" refer to community-based retail properties where majority of tenants focus on daily necessities such as grocery that has stable demand.

(Note 2) "Industrial assets" refers to facilities such as factories, R&D centers and data centers that are the bases of various industrial activities.

(Note 3) "Land assets" refers to land where leasehold is established for a third party and the third party concerned owns a building on the land.

Note:	This press release is a document that will be released publicly relating to acquisition and lease of real estate trust beneficiaries in
	Japan and is not prepared for the purpose of solicitation for investment. Before initiating investments, MIRAI asks investors to ensure
	that they refer to the prospectus for the issuance of new investment units and the secondary offering of investment units and
	amendments thereto prepared by MIRAI, and that they undertake investment at their own discretion and responsibility.
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The balance between the two pillars of post-COVID-19 growth strategy is as shown in above picture. Four Assets to be Acquired include one office property located in regional core city, a neighborhood shopping center and two land assets and the Acquisition is positioned as the first pillar of post-COVID-19 growth strategy that will improve portfolio defensiveness. Further, the Assets to be Acquired are expected to contribute to sustainable DPU growth based on post- COVID-19 growth strategy as well as unitholders' value enhancement based on strategic asset management through expansion of MIRAI's portfolio, further diversification of risk and stability (defensiveness) improvement. MIRAI has decided to acquire the assets based on the portfolio construction strategy, real estate market trend, as well as the characteristics of each asset.

(Reference) Profitability of Assets to be Acquired

	Name			Acquisition Price			Appraisal Value			Appraisal NOI Yield			NOI Yield after
			(million yen)			(million yen)			(Note 1)			Depreciation (Note 2)
	Ehime Building/Hiroshima	2,780		2,950		5.0%		4.5%
	Tsurumi Fuga 1	5,300		5,800		4.4%		3.6%
	BIGMOTOR Ginan (land)	1,080		1,190		4.2%		4.2%
	Yokohama-Daikokucho	1,490		1,570		3.9%		3.9%
	Maintenance Center (land)
	Total/Average	10,650		11,510		4.5%		3.9%

(Note 1) "Appraisal NOI Yield" is calculated by dividing the appraisal NOI by the expected acquisition price rounding to the nearest tenth. "Appraisal NOI Yield" in the "Total/Average" shows "Average Appraisal NOI Yield". The "Average Appraisal NOI yield" is weighted average of "Appraisal NOI Yield" by the Acquisition Price of each asset. Appraisal NOI refers to the net operating income (NOI) obtained by subtracting operating expenses from operating revenues stated in the appraisal report, and it is income before subtracting depreciation. It differs from net cash flow (NCF) which is derived by adding investment management profits on investment from security deposit and subtracting the capital expenditures. The above appraisal NOI means the 1st year NOI under DCF method (if any specific factors for the 1st year, it means the 2nd or the 3rd year NOI).

(Note 2) "NOI Yield after Depreciation" is calculated by subtracting depreciation from the appraisal NOI and dividing by the expected acquisition price rounding to the nearest tenth. "NOI Yield after Depreciation" in the "Total/Average" shows "Average NOI Yield after Depreciation". "Average NOI Yield after Depreciation" is weighted average of "NOI Yield after Depreciation" by the Acquisition Price of each asset. Depreciation is estimated value calculated by the Asset Manager using straight-line method with certain assumptions. The same shall apply hereinafter.

Note:	This press release is a document that will be released publicly relating to acquisition and lease of real estate trust beneficiaries in
	Japan and is not prepared for the purpose of solicitation for investment. Before initiating investments, MIRAI asks investors to ensure
	that they refer to the prospectus for the issuance of new investment units and the secondary offering of investment units and
	amendments thereto prepared by MIRAI, and that they undertake investment at their own discretion and responsibility.
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3． Details of Assets to be Acquired

Property

Ehime Building/Hiroshima

Asset Category

Core Asset

Name

Asset Type

Office

Overview of the Specified Asset

Acquisition Date

January 12, 2022

Type of Specified Assets

Trust Beneficiaries

Acquisition Price

2,780 million yen

Overview of

Trustee

Mitsubishi UFJ Trust and

Appraisal Value

2,950 million yen

Banking Corporation

Trust

(Appraisal Date)

(October 31, 2021)

Beneficiaries

Expiry Date of

January 31, 2032

Trust

Nearest Station

6-minute walk from "Hatchobori" Station of Hiroshima Electric Railway

Address

2-10,Naka-kuMikawa-cho,Hiroshima-shi, Hiroshima

(Residential Address)

2-11,Naka-kuMikawa-cho,

Date of

July 29, 1991

Lot Number

Hiroshima-shi, Hiroshima,

Building

other 1 parcel of land

B1/9-story flat roof steel framed

Building

Structure

Coverage

100% (Note)

reinforced concrete structure

Ratio

Land

Floor Area

800%

Building

Usage

Office

Ratio

Use

Retail district

Gross Floor

6,983.18 sqm

Districts

Area

Site Area

845.52 sqm

Number of

30

Parking Spaces

Ownership

Ownership

Ownership

Ownership

Structure

Structure

Nomura Real Estate Partners Co.,

PM Company

ML Company

MIRAI

Ltd.

Special Comment

Not applicable

(Note) Specified building coverage ratio is 80%. However, the building has received relaxation to 100% for fireproof building located in a fire prevention district.

Overview of Lease

	Total Rentable Area		4,700.45 sqm		Occupancy Ratio		94.4%
	Principal Tenant		NHK Culture Center, Inc.		Number of Tenants		20
	Annual Rent		170 million yen		Guarantee Deposit		151 million yen
Overview of Summary of Engineering Report
	Survey Company		Daiwa Real Estate Appraisal		Urgent Repairs		-
		Co., Ltd
	Date of the Report		November 2021		Long-term Repairs		22,062 thousand yen
Overview of Seismic Risk Analysis
	Survey Company		Tokio Marine dR Co., Ltd.		PML		4.3%

Collateral

Not applicable

Note:	This press release is a document that will be released publicly relating to acquisition and lease of real estate trust beneficiaries in
	Japan and is not prepared for the purpose of solicitation for investment. Before initiating investments, MIRAI asks investors to ensure
	that they refer to the prospectus for the issuance of new investment units and the secondary offering of investment units and
	amendments thereto prepared by MIRAI, and that they undertake investment at their own discretion and responsibility.
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Overview of the Real Estate Appraisal Report

Appraisal Value	2,950 million yen
Appraiser	Daiwa Real Estate Appraisal Co., Ltd
Appraisal Date	October 31, 2021

(million yen)

Item

Details

Remarks, etc.

Valuation

2,950

Value based on the direct capitalization method

3,050

Operating revenues

220

Potential gross revenues:

229

Sum of (a) through (d)

(a) Rental revenues from rooms for rent

Reported based on current rent, new rent and its trend for similar properties in

204

the same market while giving consideration to medium- to long-term

including common area charges

competitiveness of the property.

(b) Utilities revenues

13

Assessed and reported based on actual amount from previous years while

giving consideration to occupancy level.

Reported based on current rent and actual cases and trend of rent in

(c) Parking revenues

10

surrounding area while giving consideration to medium- to long-term

competitiveness of the property.

(d) Other revenues

0

Reported based on the contracted and actual amount from previous years.

Losses from vacancy, etc.

9

Reported based on the actual vacancy and average level of vacancy of similar

properties while giving consideration to the competitiveness of the property.

Operating expenses

67

Maintenance expenses

16

Reported based on maintenance expenses of similar properties and contract

amount.

Utilities expenses

12

Assessed and reported based on actual amount from previous years while

giving consideration to occupancy level.

Repair expenses

5

Reported based on repair expenses in the engineering report.

PM fees

3

Assessed and reported based on fees of similar properties and contract.

Advertisement and leasing expenses, etc.

1

Assessed and reported with reference to property management contract and

leasing expenses of similar properties.

Taxes and public dues

25

Assessed and reported based on certification of registered matters of property

tax ledger for FY2021.

Property and casualty insurance premiums

1

Reported based on insurance premium of similar properties.

Other expenses

1

Assessed and reported based on actual amount from previous years.

Net operating income

153

Investment gains on lump-sum payment

1

Reported and assessed based on comprehensive view of both investment

management and funding perspective.

Capital expenditures

17

Reported based on renewal expenses on engineering report which was judged

reasonable while giving consideration to construction management fee.

Net cash flow

137

Discount rate

4.5%

Assessed based on comprehensive view of location, condition of the building

and other factors.

Value based on DCF method

2,910

Discount rate

4.3%

Assessed based on comparison against discount rate of other similar real estate

transactions and return on other financial assets.

Assessed based on capitalization rate with reference to comprehensive view

Terminal capitalization rate

4.7%

of uncertain factors such as aging of the building and trend of transaction

market.

Value based on cost approach

3,050

Ratio of land

84.0%

Ratio of building

16.0%

Other matters to which the appraiser pays attention in the

Not applicable

appraisal

Note:

This press release is a document that will be released publicly relating to acquisition and lease of real estate trust beneficiaries in

Japan and is not prepared for the purpose of solicitation for investment. Before initiating investments, MIRAI asks investors to ensure

that they refer to the prospectus for the issuance of new investment units and the secondary offering of investment units and

amendments thereto prepared by MIRAI, and that they undertake investment at their own discretion and responsibility.

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