Sojitz Corporation


Announcement Regarding Sojitz’s Sponsorship of Nippon REIT

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Mar. 29, 2017
Sojitz Corporation

Sojitz Corporation (“Sojitz”) has announced that they will invest in a bridge fund (*1) called Nicholas Capital 10, LLC (“the fund”) through tokumei kumiai investment (*2), in order to support the acquisition of new assets by Nippon REIT Investment Corporation (“Nippon REIT”), a REIT for which Sojitz acts as main sponsor and which has contracted Sojitz subsidiary Sojitz REIT Advisors K.K. to manage its properties.

The fund was set up to acquire trust beneficiary rights (*3) covering the residences listed below, as a way for Nippon REIT to add these properties to its portfolio in the near future. The fund is planned to grant preferential negotiation rights to Nippon REIT and Sojitz REIT Advisors when it comes to the acquisition of these properties (see “Investment Outline” below).

Nippon REIT is an integrated, listed REIT premised on a basic policy of fully pursuing community of interest with investors, and whose primary targets of investment are office buildings, residential housing, and commercial facilities.

Sojitz believes that securing return through this tokumei kumiai investment and helping to finance this fund in their capacity as sponsor for Nippon REIT will help expand the number of assets which Nippon REIT manages in the future.

(*1) Bridge fund: A fund set up to bridge the gap between the real estate seller’s and the J-REIT’s (in this case, Nippon REIT) expectations regarding the acquisition period, as well as temporarily retain the real estate until fully acquired by the J-REIT.

(*2) Tokumei kumiai investment: Investment based on a contract (called a tokumei kumiai contract) which allows the investor to invest in the operator of a business and collect dividends from profits of that business (revenue from rent collection, etc.) Among tokumei kumiai investments, those that contain a clause subordinate to payment of receivables or other tokumei kumai investments made to the business operator are called subordinate tokumei kumiai investments.

(*3) Trust beneficiary rights: Entitlement to profit and loss from the assets which make up the trust (in this case, residential real estate) though a trust beneficiary (a bank trust, etc.).

[Investment Outline]

Assets slated for acquisition A holding acquired through the subordinate tokumei kumiai investment which will manage the assets comprising the trust (the real estate).
(2)Name of the asset to be acquired Assets belonging to Nicholas Capital 10’s subordinate tokumei kumiai
(3)Real estate included in the trust (provisional name)Residence Hiroo
Merveille Sensoku
Splendid Shinosaka III
Charmant Fuji Osaka Jonan
Piachere Fuminosato
(4)Investment amount Total JPY 300 million
(5)Scheduled date for tokumei kumiai investment March 29th and April 10th, 2017

[Related Information]

Nicholas Capital 10, LLC – Company Overview

Location 7-1, Nihombashi 2, Chuo-ku, Tokyo
Representative Director Representative Director of the Holding:
General Incorporated Association Nicholas Funding 10 Corporate Officer, Hiroshi Arihara
Total Capitalization JPY 7.55 billion (as of April 11th, 2017) (planned)
Main Business Acquisition, retention, liquidation, and management of trust beneficiary rights

Sojitz REIT Advisors K.K. – Company Overview

Established November 2006
Location 18-1, Shimbashi 1, Minato-ku, Tokyo
Koku Kaikan 3F
Representative Director Toshio Sugita, President & CEO
Ownership Sojitz Corporation – 67%
Cushman & Wakefield Asset Management K.K. – 18%
Agility Asset Advisors, Co. Ltd. – 15%
Total Capitalization JPY 150 million
Main Business Investment management
Web Site

Nippon REIT Investment Corporation

Established September 2010
Location 18-1, Shimbashi 1, Minato-ku, Tokyo
Koku Kaikan 3F
Representative Director Hisao Ishikawa, Executive Officer
Asset Management Sojitz REIT Advisors K.K.
Web Site

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