TSE code :3462

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Investment Management Structure
Prioritizing Unitholders’ Interest

Nomura Real Estate Master Fund, Inc. (NMF) aims to establish an investment management structure that prioritizes unitholders’ interest, and to this end is striving to unite the interest of unitholders and that of Nomura Real Estate Development Co., Ltd., which acts as NMF’s sponsor, and Nomura Real Estate Asset Management Co., Ltd. (NREAM), an asset management company for NMF. In doing so, NMF is working in close collaboration with the sponsor and the asset management company in the pursuit of sustainable growth for its businesses and an improvement in unitholder value.

A Scheme Aimed at Uniting the Interest of Unitholders, the Sponsor and the Asset Management Company

Determining Management Fees Consistent with Unitholders’ Interest

NREAM has in place the following management fee structure, which includes a category of management fees (“asset management fee II”) determined to be consistent with NMF’s net income. The introduction of this fee category is expected to encourage staff members at NREAM to be more committed to accomplishing stronger results, for example, achieving rent increases and cost reductions in the course of property management, and negotiating with lenders in an effort to procure funds under more favorable conditions.

Fee structure Calculation method
Asset management feeⅠ(Total assets-linked) Total assets (*1) × 0.45%(annual basis)
Asset management fee II(Net income-linked) Net income (*2) × 5.5%
Acquisition fee Acquisition Price × 1.0%
Disposition fee Disposition Price × 1.0%
(*1) Excludes unamortized goodwill.
(*2) The amount obtained by adding goodwill amortization cost to Net Income before Deduction of Management Fee II and deducting gain on negative goodwill, after compensation of loss carried forward (if any).
Accepting a Same-Boat Investment

NMF has accepted a same-boat investment from the sponsor, with the aim of linking the interest of unitholders and the sponsor.
For information on the sponsor's share of investment units, click here.

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