AEON REIT Investment : Notice Concerning Additional Conclusion of Floor-Space Expansion Development Agreement at AEON MALL Ota

(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

July 29, 2022

For Immediate Release

Investment Corporation:

AEON REIT Investment Corporation

1-2-1, Kanda Nishiki-cho,Chiyoda-ku, Tokyo

Representative: Nobuaki Seki, Executive Director

(Securities code: 3292)

Asset Manager:

AEON Reit Management Co., Ltd.

Representative:	Nobuaki Seki, Representative Director and
	President
Inquiries:	Tomohiro Itosaka, Managing Director in charge of
	Finance and Administration
	(TEL: [phone])

Notice Concerning Additional Conclusion of Floor-Space Expansion Development

Agreement at AEON MALL Ota

AEON REIT Investment Corporation (we or the "Investment Corporation") hereby announces as follows, that AEON Reit Management Co., Ltd. (the "Asset Manager") to which the Investment Corporation entrusts the management of its assets, resolved and concluded the Floor-Space Expansion Development Agreement for AEON MALL Ota (the "Property) owned by the Investment Corporation based on the discussion about renovation through floor-space expansion (the "Expansion") with AEON Mall Co., Ltd., a lessee of the Property with which we previously entered into the Pipeline Support Agreement and the Shopping Center Management Agreement (hereinafter collectively, the "Support Agreements").

1. Overview of the Floor-Space Expansion Development Agreement:

1. Property name AEON MALL Ota
2. Entities with which the Agreement is made AEON Mall Co., Ltd.
   Mizuho Trust & Banking Co., Ltd. (the "Trustee")
3. Outline of the Agreement
4. 1. On the premise of the Property, building is to be newly constructed, provided that AEON Mall Co., Ltd. will bear its expenses and responsibility (hereinafter, the expanded building shall be referred to as the "Extended Building" and the existing building other than the Extended Building shall be referred to as the "Existing Building").
   2. AEON Mall Co., Ltd. can make use of the underlying land of the Extended Building to construct it, and surrounding land which is reasonably required to construct and maintain the Extended Building (the "Premise of the Extended Building") free of charge.
   3. The Trustee and AEON Mall Co., Ltd. will conclude lease agreement of the Premise of the Extended Building (lease agreement establishing fixed term land lease right for business purposes, regulated in the Article 23(1) of the Act on Land and Building Leases, shall be referred to as the "Agreement Establishing Fixed Term Land Lease Right for Business Purposes") before the delivery. (Note)
   4. The Investment Corporation obtains rights to preferentially negotiate (the "Preferential Negotiation Rights") regarding receipt of status, rights and duties under the agreement of

construction of the Extended Building .

(Notes)

However, based on additional trust of the Extended Building, the Extended Building is added to an object of master lease agreement of the Existing Building between the Trustee and AEON Mall Co., Ltd., and the Agreement Establishing Fixed Term Land Lease Right for Business Purposes will may not be concluded or will be suspended as of acquisition of the Property, provided that the Extended Building is acquired exercising the Preferential Negotiation Rights as mentioned above.

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< Overview of the Preferential Negotiation Rights >

Description of the Preferential	The rights to preferentially negotiate regarding receipt
of status, rights and duties under the agreement of
Negotiation Rights
construction of the Extended Building
Period of the preferential	Period of validity of the Floor-Space Expansion
negotiation	Development Agreement

As of today this does not constitute a decision by the Investment Corporation to receive status, rights and duties under the agreement of construction of the Extended Building. The rights shall not be deemed a guarantee that we assure to acquire the property, nor shall we be obliged to receive status, rights and duties under the agreement of construction of the Extended Building as this is a right the Investment Corporation obtained based on the Floor-Space Expansion Development Agreement.

For acquiring the property, we will get required due diligence done and make a decision based on the internal rule which is the "Rule for Interested-Party Transactions" of AEON Reit Management Co., Ltd. (the "Asset Manager").

However, the Investment Corporation and the Asset Manager will pay no consideration to the entities with which the aforesaid agreement is made for obtaining the Preferential Negotiation Rights.

1. Scheduled re-opening date of the Extended Building (scheduled) Spring, 2024

2. Purpose of the Expansion:

Through the Support Agreements with AEON Group, the Investment Corporation and the Asset Manager will establish a strong support structure of AEON Group to us. We will be able to fully utilize the know-how and integrated capabilities in the development and operation of the retail and related properties that AEON Group have cultivated, and we will be aiming to expand our portfolio over the medium to long term.

The renovation through the Expansion will be conducted for the purpose of enhancing profit of the Property boasting a lot area of approx.146,000 ㎡, ensuring stable revenue over the medium to long term and realizing improvement of asset value through the Expansion, by cooperating with AEON Mall Co,. Ltd. and developing it as a shopping center which can meet every need from the local customers.

3. Future Outlook:

The aforesaid does not constitute a decision by the Investment Corporation to acquire the Extended Building. Furthermore, there is no impact to the forecasts of performance and distributions (estimated figures) of the Investment Corporation.

4. Others:

The Investment Corporation will make a prompt announcement if any matters to be disclosed related to the development arise.

*The Investment Corporation's website: http://www.aeon-jreit.co.jp/en/

・Architectural rendering of AEON MALL Ota ・New part of the Extended Building

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Architectural rendering of AEON MALL Ota

(Notes)

The architectural rendering shows an image of a planned-to-be-completed-building, thus may differ from the actual building.

New part of the Extended Building

	To Tatebayashi▶
◀To Kiryu
	Extended Building
AEON MALL Ota
To Ota▼
Parking lot	Connecting Bridge
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