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

The total of equity investment of the Fund amounts to about JPY 20 Bil （USD 167 Mil）. The Fund is invested by several institutional investors, etc. in Japan, such as corporate pension funds, financial
institutions, corporations and educational institutions. Since the target assets of the Fund are the mezzanine debts collateralized by several logistics development projects, DREAM will manage the Fund with the expertise of Mitsubishi Corporation Group for real estate management.

On the ground that the LTV (Loan to Value) ratio of each asset is under 50~70% and its LTC (Loan to Cost) ratio is under 60~75%, the expected return is higher than the average dividend yield of J-REITs and private REITs while the risk of principal loss is limited. Furthermore, it is supposed that investment in debt of development projects rather than completed ones helps DREAM to offer investors attractive opportunities under current competitive domestic real estate finance market.

The Fund is the 4th mezzanine debt fund subsequent to DREAM Mezzanine Debt Fund I launched in October 2011, DREAM Mezzanine Debt Fund II in April 2013, and DREAM Mezzanine Debt Fund III in July 2014. 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】
Name：DREAM Mezzanine Debt Fund IV Investment Limited Partnership
Asset Type：Mezzanine debts collateralized by logistics development projects in Japan
Asset Size：About JPY 20 Bil / USD 167 Mil
Term：About 4 Years
Investor：15 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: 59 (as of December 2015)

【Contacts】
Diamond Realty Management Inc.
Structured Finance Department
info@mc-dream.com