marimo Regional Revitalization REIT, Inc.

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Green Finance

marimo Regional Revitalization REIT, Inc. (“marimo REIT”) announces today the formulation of the green finance framework (the “Framework”), the acquisition of a third-party evaluation for the Framework, and marimo REIT’s decision on borrowing of funds based on the Framework (the “Borrowing”) for the purpose of refinancing existing loans as described below.

Overview of the Framework

Use of Procured Funds

1) Eligible projects for investments

Funds procured through Green Finance based on the Framework will be allocated to acquisition of green buildings that satisfy the following eligibility criteria, refinancing of such funds, or renovation work.

2) Eligibility Criteria

Funds procured through green bonds or green loans will be allocated to acquisition of green buildings that satisfy the following eligibility criteria, refinancing of such funds, or renovation work.

(i) Eligibility standards for green building certification

Properties that have obtained or will obtain one of the following certifications

  • S rank to B+ rank of CASBEE Certification for Buildings and CASBEE Certification for Real Estate
  • 5-star to 3-star of DBJ Green Building Certification
  • 5-star to 3-star of BELS Certification (fiscal 2016 standards)
    *Excluding logistics facilities exceeding BEI = 0.75
  • The following levels of BELS Certification (fiscal 2024 standards)
    • Non-residential buildings: level 6 to level 4
    • Residential buildings with renewable energy facilities: level 6 to level 3
    • Residential buildings without renewable energy facilities: level 4 to level 3
(ii) Renovation work

Renovation work that satisfies one of the following.

  • Renovation work at a structure that obtained or will obtain one of the eligibility criteria certifications (i) to improve one or more stars, levels, or ranks of the certification
  • Renovation work capable of reducing energy consumption, greenhouse gas emission, or water consumption by 30% or more

Project selection process

1) Parties engaged in project selection

Projects for which procured funds will be used shall be reviewed for compliance with the eligibility criteria by the person(s) in charge at the Financial Management Department of the Asset Manager and selected upon internal approval, with the Financial Management Officer as the final decision maker.

2) Project selection process

After a draft for fund procurement through Green Finance to be used for a target project is proposed by the Financial Management Department of the Asset Manager, resolutions will be made at each of the following meetings.

  • Investment Management Committee of the Asset Manager
  • Board of Directors of the Asset Manager
  • Board of Directors of marimo REIT

Fund management methods

1) Plan for allocating procured funds

Funds procured through Green Finance will be promptly allocated to funds for (or renovation work of) properties satisfying eligibility criteria or refinancing of such funds. Until funds are allocated, they will be managed as cash or cash equivalents.

2) Management method for tracking procured funds

Procured funds are managed individually at the Financial Management Department, with their use, repayment date, balance, etc. prepared in an Excel file, so an operational structure that enables checking and tracking of deposit and withdrawal status is employed. Tracking is managed by the Financial Management Department, which is approved under an internal system, with the Financial Management Officer as the final decision maker.

Reporting

Appropriation of Funds

Name Amount raised
(Millions yen)		 Appropriation
(Millions yen)		 Unappropriated amount
(Millions yen)
Green Loans 2,015 2,015 －

Green Loans Borrowing Status

Lender Balance Interest
rate		 Drawdown
date		 Planned
repayment
date		 Security Use of Procured Funds
  • Sumitomo Mitsui Banking Corporation
  • The Hiroshima Bank, Ltd.
  • Sumitomo Mitsui Trust Bank, Ltd.
  • SBI Shinsei Bank, Limited
  • San ju San Bank, Ltd.
  • Resona Bank, Ltd.
  • Chugoku Bank, Ltd.
  • Aozora Bank, Ltd.
 2,015 million yen Base rate (JBA 3-month Japanese Yen TIBOR) (Note 3) +0.75% (floating rate) August 1,
2024		 August 1,
2029		 Unsecured and unguaranteed The Borrowing will be allocated to the refinancing of the acquisition funds of ArtizA Sendai Kakyoin and ArtizA Hakata PREMIER, specified assets that satisfy the eligibility criteria set forth in the green finance framework

Acquisition of Environmental Certifications

Please refer here.

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