NEWS RELEASE

Japan Real Estate Investment Corporation

July 15, 2010
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Hiroshi Katayama, CEO & President
Contact: Toru Kimura, General Manager, Planning Department
Phone: +81-3-3211-7921

Notice concerning Pre-payment of Loan
Announcement is hereby made that on July 15, 2010, Japan Real Estate Investment Corporation decided tomake the pre-payment of the following existing loans prior to the principal repayment dates:

1. Pre-payment of loan
July 26, 2010
(1) Pre-payment date:¥10,000 million(2) Total amount of pre-payment:(3) Details of loans to be pre-paid before the due dates:<Short-term loan from The Bank of Tokyo-Mitsubishi UFJ, Ltd.>
1)

Start of the loan period:

September 24, 2009

2)

Amount of loan:¥2,500 million

3)

Amount of pre-payment:¥2,500 million

4)5)Balance after the pre-payment of loan:
Interest rate:

6)

Borrowing method:

7)

Interest payment date:

8)

Repayment of principal:¥0 million
0.5246% (from June 24, 2010 to July 25, 2010)
Loan based on overdraft agreement
Unsecured/non-guaranteed loan
24th of every month until the principal repayment date(including the principal repayment date)
Payment in full on the principal repayment date

9) Principal repayment date:
September 24, 2010
* There will be no outstanding balance upon repayment.

<Short-term loan from Mizuho Corporate Bank, Ltd.>
1)

Start of the loan period:

March 24, 2010

2)

Amount of loan:¥4,500 million

3)

Amount of pre-payment:¥2,500 million

4)5)Balance after the pre-payment of loan:
Interest rate:¥2,000 million6)

Borrowing method:7)

Interest payment date:8)

Repayment of principal:

0.5246% (from June 24, 2010 to July 25, 2010)
Loan based on overdraft agreement
Unsecured/non-guaranteed loan
24th of every month until the principal repayment date(including the principal repayment date)
Payment in full on the principal repayment date9) Principal repayment date:
March 24, 2011
* There will be no outstanding balance upon repayment.

<Short-term loan from Mitsubishi UFJ Trust and Banking Corporation>
Start of the loan period

September 1, 2009March 24, 2010

Amount of loan

¥2,000 million¥2,000 million

Amount of pre-payment
Balance after
the pre-payment of loan

¥500 million *1¥2,000 million *2

Interest rate

Borrowing method

Interest payment date

Repayment of principal
Principal repayment date

¥1,500 million¥0 million

0.523% (from July 1, 2010
to August 1, 2010)
Loan based on overdraft
agreements
Unsecured/non-guaranteed loan

0.5246% (from June 24, 2010
to July 25, 2010)
Loan agreement concluded on
March 19, 2010
Unsecured/non-guaranteed loan
1st of every month until24th of every month until
the principal repayment date
the principal repayment date(including the principal(including the principal
repayment date)
repayment date)
Payment in full on the principal Payment in full on the principal
repayment date
repayment date
September 1, 2010

March 24, 2011

*1 There will be a break-funding cost upon pre-payment. The break-funding cost amount(amount below the minimum unit is disregarded) is calculated by multiplying the principal
amount by a difference between 0.223% (one-month Japanese Yen TIBOR announced by
Japanese Bankers Association (JBA) on June 29, 2010, percentage after the fourth decimal
point is truncated) and the one-week Japanese Yen TIBOR to be announced by JBA on July 22,2010 (percentage after the fourth decimal point will be truncated), for the 7 days from July 26,
2010 (pre-payment date) to August 1, 2010 (a day prior to the next interest payment date)inclusive, calculated on a per-diem basis, assuming that there are 365 days per year. The
break-funding cost amount will be confirmed on July 22, 2010.
The estimated break-funding cost is ¥7,000 for the principal repayment of ¥500 million, as
calculated based on the one-week Japanese Yen TIBOR announced by JBA as of July 15,2010.
*2 There will be no outstanding balance upon repayment.

<Short-term loan from The Sumitomo Trust & Banking Co., Ltd.>Start of the loan period

September 24, 2009

March 24, 2010

Amount of loan

¥1,000 million¥2,000 million

Amount of pre-payment
Balance after
the pre-payment of loan

¥1,000 million¥1,500 million¥0 million¥500 million

0.5246% (from June 24, 2010
to July 25, 2010)
Loan based on overdraftagreements
Unsecured/non-guaranteed loan

Interest rate

Borrowing method

Interest payment date

Repayment of principal

0.5246% (from June 24, 2010
to July 25, 2010)
Loan agreement concluded on
March 19, 2010
Unsecured/non-guaranteed loan
24th of every month until
24th of every month until
the principal repayment date
the principal repayment date(including the principal(including the principal
repayment date)
repayment date)
Payment in full on the principal Payment in full on the principal
repayment date
repayment datePrincipal repayment date
September 24, 2010
* There will be no outstanding balance upon repayment.

2. Funds for pre-payment

March 24, 2011

Proceeds from the investment corporation bonds to be issued on July 23,
2010 and own funds

3. Balance of interest-bearing debts after the pre-payment of the loans (as of July 26, 2010)(Units: millions of yen)
Before pre-payment

After pre-payment

Increase/Decrease

Short-term loans

39,00029,000-1,000Current portion of long-term loans

59,10059,100±0Long-term loans

119,400

119,400±0

Total loans
Current portion of investment
corporation bonds (Note)
Investment corporation bonds(except for current portion)
Total investment corporation
bonds
Total interest-bearing debts

217,500

207,500-1,00000±055,000

55,000±055,000

55,000±0272,500

262,500-1,000We will inform you of the interest rates of the short-term loans of total ¥2,500 million on and after July 26,
2010 and the interest rate of the short-term loan of ¥1,500 million on and after August 2, 2010 after thepre-payment of the loans mentioned above once they have been decided.

This notice is the English translation of the announcement in Japanese dated July 15, 2010 on our website.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.