Kenedix Residential Next Investment : Notice Concerning Acquisition of Properties (Total of 4 Residential Facilities and 3 Healthcare Facilitie)

February 14, 2022

To All Concerned Parties

REIT Issuer:

Kenedix Residential Next Investment Corporation

Representative: Tetsu Kawashima, Executive Director

(Securities Code Number: 3278)

Asset Management Company

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President & CEO

Contact: Shin Yamamoto, Head of Strategic Planning,

Residential REIT Department

TEL:+81-3-5157-6011

Notice Concerning Acquisition of Properties

(Total of 4 Residential Facilities and 3 Healthcare Facilities)

Kenedix Residential Next Investment Corporation (the "Investment Corporation") announced today that Kenedix Real Estate Fund Management, Inc. (the "Asset Management Company"), the asset management company for the Investment Corporation, has decided to acquire the following properties. The details are provided as follows.

< List of To-be Acquired Assets >

Disclaimer：This document is a press release to make a public announcement of acquisition of investment assets and their leases, and has not been prepared for the purpose of solicitation for investment. The Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment unites as well as amendments thereto prepared by the Investment Corporation (if any) before undertaking investments and investments be made at their own judgement and responsibility.

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However, the above scheduled date of acquisition of H-29 and H-30 among the 7 Properties is the date in case the pricing date is February 17, 2022, February 18, 2022, and February 21, 2022, indicated in "Notice Concerning Issuance of New Investment Units and Secondary Distribution of Investment Units" announced today. In the case that pricing date is changed, the scheduled date of acquisition will be changed as follows.

(Note1) The Investment Corporation plans to change the name of T-104 to be acquired in conjunction with the acquisition, and consent has not been obtained from the seller to disclose the name of the assets to be acquired as of today, Accordingly, the name after the change is provided. The same shall apply hereafter.

(Note2) Regarding T-104 and T-105, the Investment Corporation has agreed with the seller to entrust the asset to be acquired to Mizuho Trust & Banking Co., Ltd. As a trustee until the time of acquisition and that the Investment Corporation will receive the trust beneficiary interest. The same shall apply hereafter.

(Note3) "Acquisition Price" is the sales amount of the trust beneficiary interest (excluding acquisition costs, settlement of property tax and city planning tax or consumption tax, etc.) indicated in the trust beneficiary interest sales contract concerning the to-be acquired asset and is rounded down to the nearest thousand yen. The same shall apply hereafter.

(Note4) As for T-103,T-104,T-105,R-47 and H-31, the trust beneficiary interest sales contract associated with the acquisition falls under the forward commitments, etc.(refers to the postdated sales contract of the real estate, etc. signed by the Investment Corporation, under which payment and delivery shall be made at least one month after conclusion of the contract, or any other contract similar thereof.) by the Investment Corporation as specified in the Financial Services Agency "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc." Regarding the detail of cancellation clause, etc., please refer to "4. Financial Impact on the Investment Corporation in the Event of Failure to Fulfill the Forward Commitments, etc." The same shall apply hereafter.

(Note5) The details of debt financing will be announced as soon as it is determined.

Disclaimer：This document is a press release to make a public announcement of acquisition of investment assets and their leases, and has not been prepared for the purpose of solicitation for investment. The Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment unites as well as amendments thereto prepared by the Investment Corporation (if any) before undertaking investments and investments be made at their own judgement and responsibility.

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2. Reason for Acquisition of Properties

The Investment Corporation has decided to acquire the 7 Properties in order to expand assets under management and ensure stable returns while diversifying and enhancing the portfolio, in accordance with the Investment Corporation's investment targets and practices within its Articles of Incorporation.

Among the 7 Properties, all of 4 residential properties are newly constructed less than one year old as of today. the Investment Corporation believes that newly built residential properties are scarce, and this transaction contributes to improving the quality of the portfolio. T-103 is located within walking distance from Umejima Station on the Tobu Skytree Line and offers convenient access to central Tokyo. The Investment Corporation expects not only stable rental demand from single persons and married couples, etc., but also needs for extra room which new lifestyle change, the wider adoption of remote working leads to increase. T-104 boasts a convenient location to drug store and grocery stores within walking distance and with Musashi Shinjo Station on the JR Nambu Line in close proximity, which gives comfortable access to central Tokyo. The Investment Corporation expects the rental demand of T-104 holds steady. As the COVID-19 pandemic has driven an acceleration in demand residents moving from central Tokyo to the suburbs, the acquisition of T-103 and T-104 is to meet this new market shift to live in the suburban locations with a good living environment. T- 105 is a student housing dormitory project. The Investment Corporation has selected the operator that boasts a wealth of experience in the operation of student apartments and dormitories and expects T-105 project to generate stable returns through a building lease contract with long-term fixed rent. In addition, student dormitories are expected to have solid built-in student demand for near-campus housing and to be less affected by changes in rental market dynamics. The acquisition of T-105 project aligns with the Investment Corporation's new initiatives which contribute to further diversify its portfolio. Only R-47 is located in a regional area. The Property is situated within approximately a 4-minute walk from Naruo/Mukogawajoshidai- Mae Station on the Hanshin Main Line that boasts of remarkable connectivity to business and commercial areas such as Sannomiya, the center of Kobe, and Osaka. The Investment Corportation believes the Property to generate stable returns. As T-103 and R-47 are scheduled to be acquired in April 2022 after the seller nearly completes the new construction lease-up and the Property reaches stabilized occupancy, stable returns are expected on acquisition.

The 3 healthcare facilities are being managed by operators with an extensive track record. The Investment Corporation believes that the 3 healthcare facilities will contribute to diversifying the portfolio of the Investment Corporation's healthcare facilities and to improving earnings stability. H-29 is situated in Nada Ward, Kobe City filled with natural beauty and known as a secluded high-class residential area. H-30 and H- 31 are located in Takarazuka City famous as a tourist city and as a highly coveted city to live. Excellent connectivity with the center of the Kansai region and good living environment are other factors of the competitiveness of both cities. The 3 healthcare facilities are well equipped to provide wide range of services as a fee-based senior housing with nursing care (Kaigo-tsuki). Additionally, the high reliability of the operator, its proven operational track record, extensive healthcare services, reasonable move-in costs, and favorable living environment bring operational stability.

The Investment Corporation invests mainly in residential facilities such as rental housing and in healthcare facilities including fee-based senior housing, in what we call "spaces where people live and stay".

The Investment Corporation aims at maximizing the unitholders' value by ensuring stable rental returns and steady growth of assets under management by taking advantage the characteristics of each assets type through "flexible" and "dynamic" real estate investment management in detecting changes in social and economic structures in a timely manner.

In the decision of acquiring the 7 Properties, characteristics of each property stated in 3. "Overview of the To-be Acquired Assets" were evaluated.

Disclaimer：This document is a press release to make a public announcement of acquisition of investment assets and their leases, and has not been prepared for the purpose of solicitation for investment. The Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment unites as well as amendments thereto prepared by the Investment Corporation (if any) before undertaking investments and investments be made at their own judgement and responsibility.

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3. Overview of the To-be Acquired Assets (T-103) KDX Residence Umejima

Disclaimer：This document is a press release to make a public announcement of acquisition of investment assets and their leases, and has not been prepared for the purpose of solicitation for investment. The Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment unites as well as amendments thereto prepared by the Investment Corporation (if any) before undertaking investments and investments be made at their own judgement and responsibility.

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"Shimane (島 根)" when Umeda Village, Shimane Village, Koemon Shinden, and Kurihara Village were merged together in 1889. The development of apartment buildings and large- scale commercial facilities has occurred since Route 7 opened in 1973 and the Tobu Isezaki Line quadruped in 1974, which triggered to convert agricultural and industrial land into urban construction land around the Nishi Arai/Umeshima area, where the Property is located. The Property is a newly built property completed in September 2021 and small-family property that consists of mainly 1DK and 2DK units. The Property is located within approximately a 7-minute walk to Umejima Station on the Tobu Skytree Line, connecting to Ueno station in approximately 16 minutes and to Tokyo station in approximately 30 minutes. Therefore, it offers convenient access to central Tokyo. The Property boasts a convenient location to supermarkets such as "Tobu Store" and "Acolle", drug store and Adachi ward office in the surrounding area. Additionally, the shopping street is immediately adjacent to the Umejima Station. The Investment Corporation expects not only stable rental demand from single persons and married couples, etc., but also needs for extra room which new lifestyle change, the wider adoption of remote working leads to increase.

(Note i) A part of the Property's site (0. 06 m²) is provided as a private road.

(Note ii) The Property has an attached building for garbage storage (6. 10 m²), but it is not included in the total floor area.

(Note iii) The figure described in the earthquake PML valuation report (level 2) prepared for each to-be-acquired asset created by Sompo Risk Management Inc. in January 2022.

(Note iv) Appraisal date is made as of December 1, 2021.

(Note v) The occupancy rate as of February 28, 2022 is 72.5% when taking into account the parcels for which lease agreements have been concluded by January 31, 2022, and the occupancy rate as of February 28, 2022 is 84.8% when taking into account the parcels to be leased by tenants who have submitted applications for leasing the Property by January 31, 2022. However, tenants who have already submitted an application to lease the Property may withdraw their application, and there is no guarantee that they will actually conclude a lease agreement for the parcel. Therefore, the occupancy rate after taking such parcels into account may differ from the actual occupancy rate.

（Note1） "Location" is the indication of the residential address. In case there is no indication of the residential address, it is the building address under the lot address or the building location indicated in the registration items certificate (the lot number among such if there are multiple lot addresses). In case of the building is not completed as of today, the lot number is indicated (If there is more than one lot, the lot number of one of them). The same shall apply hereafter.

（Note2） "Building coverage ratio" and "Floor area ratio" are the designated building-to-land ratio and designated floor-area

ratio provided in the city plan. The same shall apply hereafter.

（Note3） "Type" is the classification of the principal residential unit of the building, the studio type, the small family type or family type as described below. The same shall apply hereafter. However, T-105 is under construction as of today and the buildings have not been completed, the type of T-105 is a planned type as of today and are subject to change in the future.

（Note4） "Total number of tenants" is described the number of end tenants. In the case that there is a master lease contract entered into with a master lease company after the acquisition of the property by the Investment Corporation, "Total number of tenants" is indicated as "1". The same shall apply hereafter.

（Note5） "Total Rent Income" is the sum of the monthly rent according to the lease agreements actually executed with the end tenants (the sum of rent and common area maintenance charges of the residents etc., provided, however, that in case the adjunct facilities fee such as car parking space usage fees are included in the lease agreements, it includes such fees) in the case that the master lease type is pass-through and is the monthly rent according to the sublease

Disclaimer：This document is a press release to make a public announcement of acquisition of investment assets and their leases, and has not been prepared for the purpose of solicitation for investment. The Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment unites as well as amendments thereto prepared by the Investment Corporation (if any) before undertaking investments and investments be made at their own judgement and responsibility.

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