<Provisional translation>
November 11, 2013
For Immediate Release
REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Yoshihiro Nakano
General Manager, Corporate Planning Dept.
Email: hankyureit-ir@hankyu-rt.jp

Notice Concerning Acquisition of Domestic Real Estate
Hankyu REIT, Inc. (hereafter “Hankyu REIT”) announces its decision made today to undertake the following
acquisition of assets.
Details
1. Overview of Acquisition(1) Asset to be acquired:

Right of ownership(2) Property name:Kita-Aoyama 3 cho-me Building(3) Planned acquisition price: 1,680,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax
and consumption tax, among others)(4) Appraisal value:

1,700,000,000 yen (Date of appraisal: October 31, 2013)(5) Planned acquisition date: November 12, 2013(6) Seller:

Kawata Construction Inc. (Land)
SLB, K. K. (Building)(7) Acquisition funds:

Cash on hand

2. Reason for Acquisition
Hankyu REIT will acquire the property in order to build a well-balanced portfolio and attain steady growth,
based on the target and policy of asset management stipulated in its Articles of Incorporation.
Furthermore, this represents the first urban retail property Hankyu REIT will acquire in central Tokyo.
Going forward, Hankyu REIT will continue to acquire high-quality blue-chip properties based on its
investment policy of keeping the ratio of the Kansai region at 50% or more and the ratio of retail-use zone
at 50% or more, while taking into account diversifying the portfolio in terms of region and use.
In addition, Hankyu REIT evaluated the following points upon deciding on the acquisition of the property.
・ The property is located in “Omotesando” (indicating the alley that passes from the Aoyama Dori1

street to Jingumae and its vicinities in the Kita-Aoyama area), somewhat behind the Aoyama Doristreet on the western side. The area has a relatively high concentration of retail facilities amonglocations not facing major streets, and features competitive superiority. The property is surroundedby many fashion brand stores that are purpose-driven and have strong ability to attract customers
targeting core fans. Most recently, some brands opened their first shops in Japan in this area, andbusinesses other than fashion also opened shops there. The image of the location is relatively
favorable, and there is a growing number of customers seen around the area who seek originality orhope to enjoy town walking apart from the bustle of the main streets.
・ ACRO Inc., the main tenant, was established as a wholly-owned company of Pola Orbis HoldingsInc., and operates 25 shops in department stores, etc. throughout Japan (as of October 2013)
offering natural skin care cosmetic products under the “THREE” brand it has created. The “THREEAOYAMA” housed in the property is the flagship shop of the “THREE” brand, and operates spa anddining facilities along with a shop selling the products, matching the characteristics and image of thearea.
3. Details of Assets to be Acquired
Property nameKita-Aoyama 3 cho-me Building

Specified asset type

Right of ownership

Planned acquisition price

1,680,000,000 yen

Appraisal value1,700,000,000 yen (Date of appraisal: October 31, 2013)(Appraisal organization: Daiwa Real Estate Appraisal Corporation)

Location Address

3-12-13 Kita Aoyama, Minato-ku, Tokyo

Land

60%

Building coverage

Building

Month/Year built

September 2013

300%
Floor area ratio

160% (standard floorarea ratio based on

Structure/ Floors

Steel-frame structurewith flat roof / 3 floors

road width)
Zone use

Type 1 residential

Use

district
Site area
Form ofownership
PML of earthquake

415.42m2

Total floor area
Form ofownership

Right of ownershipmanager
Collateral

692.00m2
Right of ownership

7.4% (Engineering & Risk Services Corporation and OYO RMS Corporation)

evaluation (evaluators)
Consigned property

Retail, office

GREEN SEED Co., Ltd.
None

4. Overview of Leasing2

Total number of tenants

2

Principal tenant

ACRO Inc., asulabo Co., Ltd.

Annual rent

－ (Note 1)

Leasable area

619.76m2 (Note 2)

Leased area

619.76m2 (Note 2)

Occupancy rate

100% (Note 3)

Security deposit－ (Note 1)

Note 1: Undisclosed as consent has not been obtained from the tenants.
Note 2: The area specified in the lease agreement with tenants is indicated.
Note 3: The ratio of leased area to leasable area.
5. Overview of Sellers(1) Kawata Construction Inc.
NameKawata Construction Inc.

Location

1-5-15 Bunkyo-cho, Mishima-shi, Shizuoka

Title and name of representative

Eiji Kawata, Representative

Main business activities

Business related to land use, civil engineering business,
construction business and real estate business

Capital42.75 million yen (Note 1)

Date of establishment
Net assets and total assets in
immediately preceding fiscal year

February 1946

Relation to Hankyu REIT or asset
management company

Undisclosed as consent has not been obtained from the Seller
None

Note 1: The capital as of the date of this press release.

(2) SLB, K. K.
NameSLB, K. K.

Location

1-5-15 Bunkyo-cho, Mishima-shi, Shizuoka

Title and name of representative

Eiji Kawata, Representative

Main business activities

Real estate leasing and transaction business

Capital

8 million yen (Note 1)

Date of establishment
Net assets and total assets in
immediately preceding fiscal year

October 2009

Relation to Hankyu REIT or assetmanagement company

Undisclosed as consent has not been obtained from the Seller
None

Note 1: The capital as of the date of this press release.

6. Overview of Intermediaries

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Name

Tokyu Livable, Inc.

Location

1-9-5 Dogenzaka, Shibuya-ku, Tokyo

Title and name of representative

Yoshihiro Nakajima, Representative Director

Real estate brokerage business, commissioned sales
business, real estate leasing business and real estate sales

Main business activities

business
Capital1,396.3 million yen (Note 1)

Date of establishment

March 1972

Relation to Hankyu REIT or assetmanagement company

NoneBrokerage fees

Undisclosed as consent has not been obtained from theintermediary

Note 1: The capital as of the date of this press release.

7. Acquisition Process
Hankyu REIT plans to pay the sellers the acquisition price in full on the planned acquisition date.
8. Acquisition Schedule
November 11, 2013

Resolution of acquisition of property at the asset management company’s Boardof Directors’ meeting

November 12, 2013

Conclusion of agreement, Payment and acquisition of the property (planned)

9. Future Outlook
The acquisition of the property will have minimal impact on the management of Hankyu REIT’s
assets for the fiscal period ending November 2013 (17th fiscal period: June 1, 2013 to November 30,2013) and thus there is no revision to the forecasts for such disclosed in the “Financial Results for
the Fiscal Period From December 1, 2012 to May 31, 2013” dated July 19, 2013.
• The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka Securities
Exchange, Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction trade newspaper of theMinistry of Land, Infrastructure, Transport and Tourism.
• Hankyu REIT website: http://www.hankyu-reit.jp/eng/<Attached Materials>
Reference Material 1 Overview of Appraisal Report
Reference Material 2 Table of Real Estate Portfolio After the Asset Acquisition
Reference Material 3 Property Photographs and Map of Location and Surrounding Area

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Reference Material 1<Overview of Appraisal Report>
PROPERTY
NAME

Kita-Aoyama 3 cho-me Building

Appraisal value
Appraisalorganization

1,700,000,000 yen
Daiwa Real Estate Appraisal Corporation

Date of appraisal

October 31, 2013
Item

Value indicated by the income approach
Value using the direct capitalization method (directcapitalization method over a definite term)

Value

Basis for valuation

1,700,000,000 yen
1,730,000,000 yen(1) Operating revenues (a + b − c)82,074,600 yen

a Income from rental fees, etc.

83,198,880yenb Other income

0 yen

c Loss from non-occupancy, etc.
(2) Operating costs (a + b + c + d + e + f + g+h)Assessment taking into consideration the contracted rent
levels and market rent levels

1,124,280 yen

Assessment taking into consideration the occupancy inthe market

12,172,237 yen

a Maintenance/Administrative fees, etc.

1,800,000 yen

Assessment based on existing agreement content

b Utilities

1,124,640 yen

Assessment with reference to utility expenses for similar
properties

c Repairs

213,581 yen

Assessment with reference to repair expenses for similar
propertiesd Public charges and taxes

6,767,005 yen

Land:e Property management fee

1,200,000 yen

Assessment based on the conditions in the agreement
currently in force

178,011 yen

Assessment with reference to leasing costs for similar
properties and other informationg Casualty insurance premiums

89,000 yenAssessment with reference to casualty insurance
premiums of similar properties

h Other expenses

800,000 yen

Assessment in terms of other expenses related tooperations

f Leasing costassessment based on the actual amount for
fiscal 2013
Building: assessment with reference to public charges
and taxes for similar properties(3) Net operating income (NOI＝(1)－(2))

69,902,363 yen(4) Operating profit on deposit and security

1,343,124 yen

Assessment taking into consideration the investment
management yield from the perspective of both theinvestment management aspect and procurement
aspect498,355 yen

Assessment with reference to capital expenditures ofsimilar properties(5) Capital expenditures(6) Net cash flow (NCF＝(3)＋(4)－(5))

70,747,132 yen(7) Capitalization rate

Value using the discounted cash flow (DCF) method

4.1%

Assessment taking into consideration the appraised realestate’s location conditions, building conditions,agreement conditions in a comprehensive manner

1,680,000,000 yen

Discount rate

3.9%

Assessment taking into consideration the long-term
financial instruments investment yield, borrowing rates,
risks as an investment target, etc.

Terminal capitalization rate

4.3%

Assessment taking into consideration the appraised realestate’s location conditions, building conditions andagreement conditions in a comprehensive manner

Value indicated by the cost approach

1,510,000,000 yen

Land ratio

88.2%

Building ratio

11.8%

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Special items to consider
at the time of making
adjustments to provisional
calculations and deciding
the Appraisal value

The appraisal decision was based on an assessment of the value indicated by the cost approach using both thedirect capitalization method and DCF method at 1,700,000,000 yen and the Appraisal value was decided with thevalue

The Appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of the appraisal
conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards, etc. There arecases where another appraisal of the same real estate may result in a different Appraisal value, depending on the real estate appraiser conducting
the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither a guarantee nor an obligation, now orinto the future, of a sale or purchase at that Appraisal value.

6Reference Material 2<Table of Real Estate Portfolio After the Asset Acquisition>
After the Asset Acquisition (as of November 12, 2013)
Property
Code(Note)

Property Name

Facility(Type ofUse)

RegionAcquisition Date
(Actual/Proposed)

Acquisition
Price
Investment(Actual/Ratio
Proposed)(millionyen)

R1 (K)HEP Five

RetailKansaiFebruary 1, 2005

6,468

5.1%

R2 (K)

Kitano Hankyu Building

RetailKansai

February 1, 20057,740

6.1%

R3 (K)Dew Hankyu Yamada

RetailKansai

February 1, 2005

6,930

5.4%

R4 (K)

Takatsuki-Josai Shopping Center

RetailKansai

November 15, 2005

8,600

6.7%

R5 (K)

Nitori Ibaraki-Kita Store (site)

RetailKansai

March 29, 2006

1,318

1.0%

RetailOther

October 2, 2006

2,170

April 9, 2007

5R6Kohnan Hiroshima
Nakano-Higashi Store (site)

1.7%

R8

Hotel Gracery Tamachi

RetailOther

December 25, 2008

4,160

3.3%

R9 (K)

LaLaport KOSHIEN (site)

RetailKansai

January 22, 2009

7,350

5.7%

R10Richmond Hotel Hamamatsu

RetailOther

January 22, 2009

2,100

1.6%

RetailKansai

April 16, 2013

18,300

14.3%

RetailKansai

June 27, 2013

8,100

6.3%

RetailKansai

June 27, 2013

1,870

1.5%

75,11158.8%

R11 (K)

HANKYU NISHINOMIYAGARDENSAEON MALL

R12(K)SAKAIKITAHANADAPROU (site)

R13(K)

MANDAI Toyonaka Honan
Store (site)
Subtotal

O1O2 (K)

Shiodome East Side Building
Hankyu Corporation
Head Office Building

OfficeOther

February 29, 2008

19,025

14.9%

OfficeKansai

April 10, 2013

10,2008.0%29,22522.9%

Subtotal
M1 (K)

Ueroku F Building

ComplexKansaiNovember 1, 2005

2,980

2.3%

Sphere Tower Tennoz

Complex

Other

October 2, 2007

9,405

7.4%

M3 (K)LAXA Osaka

ComplexKansaiJanuary 22, 2009

5,122

4.0%

M4 (K)

Namba-Hanshin Building

ComplexKansaiJanuary 22, 2009

4,310

3.4%

Kita-Aoyama 3 cho-me Building

Complex

Other

November 12, 2013

1,680

1.3%

Subtotal

23,497

18.4%

Total

127,834

100.0%

M2

M5

Note: The properties owned by Hankyu REIT are assigned codes classified by facility (type of use) and region. The letterson the left represent the facility (type of use): “R” is for retail-use facility, “O” is for office-use facility and “M” is formixed-use (complex) facility. The numerals are the numbers assigned to each facility in the chronological order ofthe acquisition. Also, the letter “K” in parentheses to the right of the numerals indicates that the property is locatedin the Kansai region.

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Reference Material 3<Kita-Aoyama 3 cho-me Building: Property Photograph><Kita-Aoyama 3 cho-me Building: Map of Location and Surrounding Area>

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