Diamond Realty Management Inc. (DREAM) announces it has launched DREAM Mezzanine Debt Fund　V (the Fund): the private fund specializing in the mezzanine debts collateralized by real estate assets in Japan.

The total of equity investment commitment of the Fund amounts to about JPY 18.5 Bil （USD 185 Mil）.
The Fund is invested by several institutional investors, etc. in Japan, such as corporate pension funds, financial institutions, corporations and educational institutions.

This fund has several features as follows:
a) Semi-blind pool fund: In addition to seeded assets, this Fund can invest in new mezzanine debts with contributions by capital calls. Furthermore, the redemption money during the investment term will be reallocated to new projects of this Fund.

b) Tranching structure (Leveraged within the fund): In order to offer investors attractive investment returns under current competitive domestic real estate finance market, this Fund enables the debt financing in addition to the equity investment, which is collateralized by each mezzanine debt, therefore the available capital has reached JPY 37.0 Bil.

c) New investment sectors: Following DREAM Mezzanine Debt Fund III and IV, this Fund can invest in development projects. In addition, in terms of the asset sectors, hotels and industrial properties have been added into the investment targets.

On the ground that the LTV (Loan to Value) ratio of each asset is under 80%, the expected return is higher than the average dividend yield of J-REITs and private REITs while the risk of principal loss is limited.
The Fund is the 5th mezzanine debt fund subsequent to DREAM Mezzanine Debt Fund I launched in October 2011, DREAM Mezzanine Debt Fund II in April 2013, DREAM Mezzanine Debt Fund III in July 2014 and DREAM Mezzanine Debt Fund IV in December 2015. In accord with the high needs of institutional investors to seek debt products that realize stable returns in spite of limited risks of principal loss, DREAM will make continuous efforts to provide investment opportunities for debts collateralized by real estate.

DREAM will provide domestic and overseas institutional investors with financial intermediary functions connecting with the real assets and continue to launch private real estate/mezzanine debt funds with superiority for the asset management company originated from trading company.

【Fund Summary（1USD=100JPY）】
Name：DREAM Mezzanine Debt Fund V Investment Limited Partnership
Asset Type：Mezzanine debts collateralized by retail, logistics, residential, office, hotel, industrial properties (development projects included) in Japan
LP Investment：Commitment Size About JPY 18.5 Bil / USD 185 Mil
Term：Investment term: 1.5 yearsManagement term: 5 years
Investor：10 Domestic institutional investors, etc.

【Diamond Realty Management Inc. (DREAM)】
Head Office: 16-1, Hirakawacho 2-Chome, Chiyoda-ku, Tokyo, Japan
Shareholder: 100% subsidiary of Mitsubishi Corporation
Representative: Takashi Tsuji, President and Chief Executive Officer
Date Established: 2004
Number of Employees: 68 (as of December 2016)

【Contacts】
Diamond Realty Management Inc.
Structured Finance Department
Mail: info@mc-dream.com
Tel: +81-3-5212-4835