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)（PDF：1.5MB）

October 19, 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,

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)

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 real estate in Japan and preferential negotiation rights and dispose of the trust beneficiary right in real estate in Japan and the real estate in Japan as outlined below.

1. Overview of Acquisition

(Note 1) Property name is JMF's management name. The facility is currently referred to as "SÉRÉNiTÉ Fukushima Aria".

1

(Note 2) These properties are purchased in mutual sales in exchange for LIFE Kishibe (Land with leasehold interest) stated in the section "3. Overview of Disposition". The acquisition prices may change if the properties' financial balance decreases significantly during the period leading up to the acquisition date, resulting in a change in the seller's cashflows. The acquisition of the two properties is subject to confirm that purchase agreement for LIFE Kishibe (Land with leasehold interest) has been legally and validly executed and remains in force, and that the purchase and sale based on the agreement is expected to be executed without fail.

(Note 3) Property name is JMF's management name. The facility is currently referred to as "Duo Flats Ikebukuro".

(Note 4) Agreement has been reached with the seller that the JMF-Residence Ikebukuro 1-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 5) 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 (this applies hereinafter).

(Note 6) The current owner, Hoosiers Asset Management Co., Ltd., concluded the purchase agreement for the trust beneficiary right on the property between RICOH LEASING COMPANY, LTD. and JMF will conclude an agreement with RICOH for transfer of contractual position, which stipulates JMF's succession to the buyer position. The "contract completion date" is the date of the agreement on transfer of contractual position (this applies hereinafter).

(Note 7) The payment for the acquisition of this property is conditional on concluding a purchase agreement for the property subject to the preferential negotiation right stated in the section "2. Acquisition of Preferential Negotiation Rights" between JMF and seller.

(Note 8) 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.

(Note 9) Not disclosed as the seller has not agreed to the disclosure. There are no capital, personal or business relationships to note between JMF/the Asset Manager and the seller.

2. Acquisition of Preferential Negotiation Rights

3. Overview of Disposition

(Note 1) Ahead of the disposition, the real estate trust for the property will be divided into a trust for the land and a trust for the building, and the beneficial right on each will be disposed of. The disposition price is the total of disposition prices for the two.

2

(Note 2) This property is sold in mutual sales in exchange for the purchases of JMF-Residence Osaka Fukushima and JMF-ResidenceKita-Shinagawa stated in the section "1. Overview of Acquisition." The disposition of this property is subject to confirm that purchase agreement for JMF-Residence Osaka Fukushima and JMF-ResidenceKita-Shinagawa has been legally and validly executed and remains in force, and that the purchase and sale based on the agreement is expected to be executed without fail. The purchaser's obligation to pay the purchase price is contingent upon the completion of various due diligence procedures conducted by the purchaser to the purchaser 's reasonable satisfaction and the satisfaction of other conditions precedent under the purchase agreement as of the transfer execution date.

(Note 3) Book value refers to the estimated figures as of the month of disposition.

(Note 4) Gains on disposition are reference figures as the difference calculated at this time by subtracting book value and disposition-related expenses from the scheduled disposition price, and may differ from the actual gains on disposition.

(Note 5) Not disclosed as the purchaser has not agreed to the disclosure. There are no capital, personal or business relationships to note between JMF/the Asset Manager and the purchaser.

(Note 6) About Round1 Stadium Takatsuki, the purchaser has agreed to restore the multiple points identified in the engineering reports and other documents regarding each property at the responsibility of JMF.

4. Reason for Acquisition and Disposition

Highlights

• Acquired five new and relatively new residential properties for 10.5 billion yen at an NOI yield of 4.1% through bilateral transactions using various methods.
• 1. Working with major developers and other business partners, acquired new properties in exit for development project and acquired relatively new properties through mutual sales transactions.
  2. Acquired urban residential properties for rent that had been developed by a sponsor of private placement REITs, the first acquisition made based on relationships built through purchases of investment units in private placement REITs.
• Secured capital gains by selling two suburban retail properties for 5.9 billion yen
• 1. Ensured and boosted dividend payments by securing capital gains for the 43rd fiscal period ending August 2023

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 has used various methods such as those described below for the acquisition of the five residential properties, thereby securing properties with an NOI yield of 4.1% while the conditions in the real estate trading market remain harsh. With these acquisitions, JMF has achieved approximately 54.3% of acquisitions and approximately 40.6% of dispositions in the 200-billion-yen asset replacement target set in its asset replacement strategy, with steady progress made in JMF's portfolio diversification.

1. Joint initiatives with major developers and other business partners

The acquisitions of JMF-Residence Osaka Noda and JMF-Residence Machida were made based on newly built relationships with major developers. Following these transactions, JMF expects growing opportunities for future acquisitions. With the purchase of JMF-Residence Osaka Noda, JMF has gained

3

the preferential negotiation right for SÉRÉNiTÉ Nagaranaka 1-chome Project (Temporary Name), which is an addition to its potential deal pipeline.

In the transactions for JMF-ResidenceKita-Shinagawa and JMF-Residence Osaka Fukushima, JMF acquired relatively new properties in favorable locations and sold LIFE Kishibe (Land with leasehold interest) in a mutual sale.

1. Leveraging relationships built through the acquisition of investment units in private placement REITs

Following the acquisition of investment units in Hoosiers Private REIT Investment Corporation on March 24, 2022(note), JMF has been looking into various opportunities to work with Hoosiers Group. The acquisition of JMF-Residence Ikebukuro 1-chome is the first cooperative deal realized through such efforts, which JMF believes will boost its potential for external growth.

(Note) See "Notice Concerning Acquisition of assets (investment units of domestic real estate investment corporation)" dated March 18, 2022.

1. Securing capital gains

JMF will use the proceeds from the disposition of Round1 Stadium Takatsuki and LIFE Kishibe (Land with leasehold interest) to acquire assets or for other purposes under its asset replacement strategy. Also, proceeds of approximately 2.0 billion yen are expected to accrue in the 43rd fiscal period ending August 2023, which JMF will allocate to dividend payments to ensure and boost the level of dividend payments.

Although the two properties disposed of do not necessarily meet the criteria for targets under the asset replacement strategy, JMF has decided that carrying out and securing proceeds from those dispositions contribute to higher unitholder value after comprehensively considering the competitive environment in the neighborhood, future profitability, and other factors.

4

5. Property Summary (Acquisition)

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

[JMF-Residence Osaka Noda]

Location

• The property has access to three stations of three railway lines: an approximately seven-minute walk from Tamagawa Station on the Osaka Metro Sennichimae Line, an approximately eight-minute walk to Nakanoshima Station on the Keihan Nakanoshima Line, and an approximately nine-minute walk to Noda Station of the JR Osaka Loop Line. The nearest station
  has direct lines to the south and north areas of Osaka City: an approximately four-minute ride to JR Osaka Station and approximately eight-minute ride to Osaka Metro Sennichimae Line's Namba Station. In addition to having good access to transport facilities, the property is located in close proximity with city center, having Dojima and Nakanoshima, office districts, in a walking distance.
• The property is conveniently located as it has a supermarket and multiple convenience stores within a five-minute walking distance. It also has green areas nearby, including Nakanoshima Promenade and Nakanoshima West Park.

Building Spec

• New 15-story apartment building completed in August 2022 (total of 70 units). Its units are mainly 1DK and 1LDK of approximately 30 ㎡, unit types that saw an increase in demand after the COVID-19 pandemic. It has competitive advantage in that its surrounding area has limited supply of new properties.
• 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 development in the area is expected to continue with the opening of the Naniwasuji Line and Nakanoshima Station (tentative name) planned in 2031. Thus, stable rental demand is expected from single adults who prefer to live near city center and their workplaces.

■ Property Photo / Property Location Map

Wide-area Map

*For enlarged map, please refer to QR code.

© OpenStreetMap Contributors

https://goo.gl/maps/yACNtxQBhyGGmWvj7

5