MHR Announces Issuance of Investment Corporation Bond (Green Bond)

November 12, 2021

For Translation Purposes Only

Real Estate Investment Fund Issuer:

Mori Hills REIT Investment Corporation

(Securities Code: 3234)

1-12-32 Akasaka, Minato-ku, Tokyo

Hideyuki Isobe, Executive Director

Asset Manager:

Mori Building Investment Management Co., Ltd.

Hideyuki Isobe, President & CEO

Inquiries: Akira Nemoto

General Manager, Financial Department

TEL: +81-3-6234-3234

MHR Announces Issuance of Investment Corporation Bond (Green Bond)

Mori Hills REIT Investment Corporation (hereinafter "MHR") hereby announces that it decided to issue investment corporation bond (green bond) as below.

1. Overview of Investment Corporation Bond

1. Name of investment corporation bond
   MHR Twenty- third Series Unsecured Investment Corporation Bond (subject to a limited pari passu clause between specified investment corporation bonds) (green bond) (hereinafter, "Investment Corporation Bond").
2. Total issue amount of the investment corporation bond 1.5 billion yen
3. Certificates

The stipulation of the Act on Book Entry of Corporate Bonds and Shares will be applied to the Investment Corporation Bond. Thus, investment corporation bond certificates will not be issued for the Investment Corporation Bond.

1. Payment price
   100 yen per face value of 100 yen for each investment corporation bond
2. Redemption price
   100 yen per face value of 100 yen for each investment corporation bond
3. Interest rate
   0.400% per annum
4. Investment corporation bond amount
   100 million yen per investment corporation bond
5. Offering method Primary offering
6. Subscription period November 12, 2021

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1. 1. Payment date November 30, 2021
   2. Collateral and guarantee
      The Investment Corporation Bond is unsecured and unguaranteed. Furthermore, there is no particular asset retained for the Investment Corporation Bond.
   3. Redemption method and maturity
      The total amount of the Investment Corporation Bond will be redeemed on November 28, 2031.
      Redemption by purchase of Investment Corporation Bond by MHR is allowed at any time starting on the day following the payment date, unless otherwise specified by the book-entry transfer institution mentioned under (16) below.
   4. Interest payment date
      The first payment date will be May 30, 2022, and thereafter on May 30 and November 30 of each year.
      (If the interest payment date is a bank holiday, then the bank business day preceding it shall be deemed as the interest payment date.)
   5. Special financial condition
      Negative pledge clause is applicable.
   6. Credit rating
      Japan Credit Rating Agency, Ltd.: AA
   7. Book-entrytransfer institution
      Japan Securities Depository Center, Inc.
   8. Fiscal agent, issuing agent and paying agent MUFG Bank, Ltd.
   9. Underwriting securities companies Mizuho Securities Co., Ltd.
      Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
2. Reason for Issuance
   In order to promote the environmental initiatives and contribute to the realization of a sustainable society, MHR decided to issue the Investment Corporation Bond to procure investment funds for projects that are conscious of the environment.
   The Investment Corporation Bond is issued based on "Structure of MHR's Green Bonds" described in the press release "MHR Announces Submission of Revised Shelf Registration Statement for Issuance of Green Bonds" dated on October 29, 2020.
3. Amount of Funds to be Procured, Use of Funds and Planned Expenditure Period
   (1) Amount of funds to be procured (estimated paid-in amount): 1,486 million yen
   (2) Specific use of funds to be procured and planned expenditure period
4. 
   It will be used to part of funds for repayment of 6,500 million yen in long-term loans payable due November 30, 2021 (hereinafter "Existing Long-term Loans Payable"). (Difference of 5,014 million yen is planned to be appropriated by refinancing and cash-on-hand. However, the details haven't been decided.)

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4. Investors Who Declared Intention to Invest in the Investment Corporation Bond

Listed below in Japanese syllabary order are investors to date who declared their intention of investment in the Investment Corporation Bond and agreed to disclose their names.

・Asahi Shimbun Credit Cooperative

・Asset Management One Co., Ltd.

・SHIZUOKA YAIZU SHINKIN BANK

・Suwa Shinkin Bank

・The Dai-ichi Frontier Life Insurance Co., Ltd.

・The TAKAMATSU SHINKIN BANK

・Nishihyogo Shinkin Bank

・The Yamanashi Chuo Bank, Ltd.

5. Borrowings, etc. after the Issuance of Investment Corporation Bond

(Note 1) Indicates the borrowings, etc. as of November 30, 2021 after the issuance of the Investment Corporation Bonds (After the repayment of the Existing Long-term Loans Payable as mentioned in Section 3. (2)). It is assumed that 5,000 million yen of the Existing Long-term Loans Payable will be refinanced.

(Note 2) Long-term loans payable and investment corporation bonds include the current portion of long-term loans payable and investment corporation bonds within a year.

6. Other Items Required for Investors to Appropriately Understand/Judge the Concerned Information

As for risks regarding redemption of Investment Corporation Bond, etc. there are no material changes from the content of the investment risks indicated in the Semiannual Securities Report (Japanese) for the thirtieth fiscal period (ended July 31, 2021) submitted on October 27, 2021.

MHR's website: https://www.mori-hills-reit.co.jp/en/

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