Initially, we will establish a portfolio consisting primarily of logistics facilities, which are more familiar targets for investment. We will then actively pursue other industrial properties, such as manufacturing and research and development facilities, along with infrastructure properties held by the private sector. From there, we plan to expand into infrastructure properties held by the public sector with the aim of maintaining a balanced portfolio of industrial and infrastructure properties over the mid to long term.

Pipeline Establishment. Because we will be investing in properties in which other J-REITs have not invested previously, such as in manufacturing, research and development and infrastructure facilities, it is critical for us to establish both a new acquisition pipeline network that will give us access to information about such properties and the experience needed to assess such properties according to their particular characteristics.

Our asset manager has assembled a team with significant experience in fund and asset management in Japan to support our investment activities, including individuals with significant property acquisition experience from their work for Japan Retail Fund, and other real estate investment funds; individuals with experience at governmental financial institutions; alumni of MLIT; individuals with significant experience at major real estate appraisal firms and accounting firms; and individuals seconded from Mitsubishi Corporation and UBS Global Asset Management. We aim to steadily add properties to our portfolio by utilizing our asset manager's own network and the extensive experience of its employees to establish a new pipeline for the accumulation of property-related information.

Solution-oriented Acquisitions. Because we are the first J-REIT to focus on manufacturing, research and development, and infrastructure facilities, information from existing intermediary channels will be of limited use in sourcing new properties. Therefore, we will focus primarily on sourcing properties through active sale proposals by our asset manager.

Our initial property acquisition activities will include flexible proposals designed to match the needs of property owners to whom proposals are made, such as off-balance-sheet sale and leaseback transactions, proposals to inject external capital for early-stage development projects and proposals to improve various management indices of an owner by reviewing its asset management strategy. For example, for properties that are under development, we might propose a scheme that will allow us to acquire the property immediately after completion through a forward commitment with the cooperation of Mitsubishi Corporation or others we deem to be appropriate partners.

We expect to make full use of Mitsubishi Corporation's vast network in connection with the acquisition of our properties, and we may acquire properties that it has developed or held first.

Occasionally, properties may become available at a time when we are unable to acquire them for one reason or another. In such situations, we may request a special purpose company, in which Mitsubishi Corporation or another appropriate partner has invested in the form of a silent partnership or other such arrangement to acquire and hold the property for later sale to us.

The following table details current ownership, both direct and indirect, of the various properties we intend to acquire in connection with the offerings:

* Previous beneficial interest holder dose not agreed to disclose the name.

In order to maintain and increase portfolio revenues in the mid and long term, we will develop growth strategies based on the characteristics of each property and its asset category so that each of our properties can be managed in the most appropriate manner. We will ensure that our asset manager, either directly or indirectly through our property managers, works closely with our tenants to ensure that their needs are satisfied. We also aim to achieve portfolio growth by engaging in various activities tailored to the characteristics and surrounding environment of each property, including expanding and refurbishing the properties, so as to maintain and improve both the rental income and occupancy rate of our entire portfolio.

We will also engage in efforts to maximize the profitability of our properties by streamlining and improving their management as well as by reviewing and reducing expenses.