福岡リート投資法人（8968） – Notice Concerning Decision of Prospective Buyer Regarding Property Acquisition

Provisional translation only May 20, 2022 Fukuoka REIT Corporation 1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City Etsuo Matsuyuki Executive Director (Securities Code: 8968) Asset Management Company: Fukuoka Realty Co., Ltd. 1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City Zenji Koike President and CEO Inquiries: Hiroyuki Ayabe General Manager of Finance Department TEL: +81-(0)92-272-3900 Notice Concerning Decision of Prospective Buyer Regarding Property Acquisition Fukuoka REIT Corporation (FRC) announces that it made an application jointly with Fukuoka Jisho Co., Ltd., the sponsor, for the sale of Island City Minato Bay related site (land with leasehold interest) (hereinafter referred to as the “property”) conducted by the Fukuoka City Port and Airport Bureau. FRC also announces that it received a notification of decision of prospective buyer (hereinafter referred to as the “decision notice”) from Fukuoka City today as described below. 1. Overview of the Decision of Prospective Buyer (1) Party that determined prospective buyer: Fukuoka City (2) Prospective buyer: (3) Location: (4) Area: (5) Price: (Note) FRC’s acquisition ratio is not yet determined at this time, but it will be announced when it is decided. FRC and Fukuoka Jisho Co., Ltd. Part of Minato Kashii 3-32-1, Higashi Ward, Fukuoka City Approximately 41,181 ㎡ 8,504 million yen (Note) The decision notice was issued by Fukuoka City. Upon discussing the acquisition with Fukuoka Jisho Co., Ltd. with which it jointly applied for the sale, FRC will make a decision on acquisition. At present, the property is a public lot for which infrastructure improvement work is being carried out. Accordingly, delivery is scheduled for March 2029. 2. Background and Reasons for Applying for the Sale FRC invests in a diverse range of properties, including retail facilities, office buildings, and others (logistics facilities, residential properties, hotels, etc.) in the Fukuoka and Kyushu regions as its main investment target area. In March 2019, the management guidelines at the asset management company were partially amended to modify the principle of the investment ratio in investment types, thereby allowing for more flexibility when considering investment in office buildings and other properties (logistics facilities, residential properties, hotels, etc.). In order to acquire logistics facilities in the future, FRC jointly applied with Fukuoka Jisho Co., Ltd. for the sale. FRC and Fukuoka Jisho Co., Ltd. were selected as prospective buyer as a result of the examination and selection by “the Island City Kashii Park Port Land Disposal Committee” established by Fukuoka City. Island City, where – 1 – the property is located, is located within a 10-km radius of Hakata Port, Fukuoka Airport, and Fukuoka IC. The Fukuoka City Expressway Route 6 (Island City Line) was opened in March 2021, making the area more convenient. In addition, there are very limited opportunities to acquire large-scale logistics sites of 10,000 tsubo or more in the Hakata Port Area, and FRC believes that the significance of creating opportunities for acquisition in this area, which will further develop as a logistics base to drive growth in Fukuoka, is extremely significant. 3. Characteristics and Outline of the Property (1) Property name (2) Location (3) Use (4) Transportation access (5) Others Island City Minato Bay related site (land with leasehold interest) (tentative) Part of Minato Kashii 3-32-1, Higashi Ward, Fukuoka City Logistics facilities (planned) Approximately 1.8 km to the entrance of Fukuoka City Expressway “Island City” After acquiring the property, FRC will conclude a land lease contract with Fukuoka Jisho Co., Ltd. as the lessee, and Fukuoka Jisho Co., Ltd. plans to start construction of the building. 4. Schedule with Fukuoka City Middle of June 2022 (planned) Agreement on Conclusion of Contract on Sale of Land (Note 1) December 2028 (planned) Conclusion of Provisional Contract on Sale of Land (Note 2) March 2029 (planned) Delivery of Land (Note 1) FRC will make a decision on acquisition of the property by the time the agreement on the conclusion of the contract on sale of land is concluded. This decision will be announced when it is made. (Note 2) It will be established upon resolution by the Fukuoka City Assembly pursuant to the provisions of Article 3 of the “Ordinance Concerning the Acquisition or Disposal of Contracts and Property Subject to the Resolution of the Assembly (Fukuoka City Ordinance No. 39 of 1964)”. *FRC’s website is https://www.fukuoka-reit.jp/en/index.html – 2 – (Attachments) Reference 1: Location of the Property – 3 –