May 17, 2012
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Noritada Terasawa, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Hiroshi Katayama, CEO & President
Contact: Ryuta Yoshida, General Manager, Planning Department
Phone: +81-3-3211-7921

Notice on Acquisition of Domestic Real Estate
Announcement is hereby made that on May 17, 2012, Japan Real Estate Investment Corporation (the“Company”) decided to acquire the following domestic real estate.

1. Outline of the acquisition
1) Asset to be acquired:

Domestic Real Estate2) Name of asset:

TIXTOWER UENO

3) Acquisition price:¥22,000 million

4) Scheduled acquisition
date:5) Seller:

June 15, 20126) Method of Settlement:

ITOCHU Property Development, Ltd.
Tokyo Kaihatsu K Special Purpose Company (TMK)Tokyo Tatemono Co., Ltd.
※In Japanese alphabetical order (the same shall apply hereinafter)
Lump sum payment at closing of acquisition

7) Acquisition funds:

Loans and own funds (scheduled)

2. Reason for the acquisition
The Company will acquire the asset based on the basic policies and investment attitude for acquisition
under the Articles of Incorporation of the Company. In particular, the following points have beenhighly evaluated in the determination of the acquisition.
(1) Superior location
・The area surrounding Ueno Station, in which this property is located, has flourished since
historic times, and is home to a number of railway lines including the Shinkansen bullet
train, JR lines, subways and private railways. It is popular among companies not only as alocation for a regional headquarters in Tokyo but also as an areal hub for overseeing the Joto
and Johoku districts, and thus it is well-established as the northern gate to Tokyo.
・Among other properties in this area, it is highly rated in terms of transportation convenience,
ideally located along Showa Street, which allows easy access to the Metropolitan Expressway
and is a two-minute walk to JR Ueno Station.
1(2) Highly competitive, newly constructed building・This property is a newly constructed multi-tenancy building which was completed in 2010
with superior seismic capacity and environmental considerations. With additional features
including a standard floor area of approximately 329 tsubo, a ceiling height of 2,800 mm
plus 100 mm of OA floor, individual air conditioning, and around-the-clock access, theproperty has a scarcity premium in terms of size, specifications, age of building, etc., in thearea surrounding Ueno Station, which primarily contains relatively older office buildings.
Given these elements, the property is regarded as being extremely competitive.

(3) Quality Enhancement of the investment portfolio
・With the aim of increasing the diversity of properties held by the company, the acquisitionof this property, which is located in the area surrounding Ueno Station, one of the major
Tokyo terminals, and which boasts the competitive features of new construction and highoccupancy rates in an area where the company has not yet entered, is particularly beneficial
not only to enhance the quality of the investment portfolio but also to lower the average ageof the company’s properties.
3. Details of the asset to be acquired
The relevant information is as set out below. The information on “area,” “structure” and “completiondate” is derived from the land registry and “usage” described below is among the main usages listed in
the land registry.
(1) Details of the real property
Location
Address shown inland registry
Address
Usage
Area
Land
Building
Structure
Completion dateArchitect
Constructor
Building confirmationand inspection bodyType of ownership
Land

Building

Land
4-104-1 Higashi-Ueno, Taito-ku, Tokyo and other 14 lots
Building
4-104-1 Higashi-Ueno, Taito-ku, Tokyo and others
4-8-1 Higashi-Ueno, Taito-ku, Tokyo
Shop, Office, Residence
2,412.80 m2
23,727.48 m2
Steel-framed reinforced concrete, steel-framed structure, flat roof
Above ground: 18 floors Below ground: 1 floor
July 2010
Fujita Corporation’s First Class Architect Office
Fujita Corporation
Urban Housing Evaluation Center
Ownership(Share of co-ownership in 5 lots/1,071.95 m2 and 10 lots/1,340.85 m2:
55,419,366/66,062,353) (Note 1)
Right of land
(Land: 15 lots as mentioned above; Type of right of land: surface rights; Ratioof right of land: 167,937,470/178,580,457)
Compartmentalized building units
The entire building is comprised of offices, residences and shops. The
Company will acquire the office portion of 16,414.37 m2 spanning from thethird floor to the 16th floor, the shop areas of 259.02 m2 on the second floor andco-ownership of the common areas (167,937,470/178,580,457) as set forth in
the rules on management.
※Ratio of share of ownership: 94.04%
2

Acquisition priceAppraisal value(Appraisal institution)(Appraisal date）
PML value
Collateral¥22,000 million¥22,300 million(DAIWA REAL ESTATE APPRAISAL CO., LTD.)(as of April 1, 2012)
2.0 % (Based on an earthquake risk assessment report issued by Tokio Marine& Nichido Risk Consulting Co., Ltd.）
Mortgage and flexible mortgage (The mortgage will be released before theacquisition of the property.)

Property management
The Dai-Ichi Building Co., Ltd. (Note 3)company (Note 2)
Note 1: For 13 of the 15 lots mentioned above, the surface rights for the purpose of subway line
construction are set.
Note 2: The property management company to be entrusted after the acquisition shall be described.
Note 3: Outline of the property management company
Corporate name
The Dai-Ichi Building Co., Ltd.
Address of the registered head
2-4-12 Kyobashi, Chuo-ku, Tokyo
officeRepresentative
Akira Kakutani, President and Representative Director
Paid-in capital¥900 million (as of April 1, 2012)
Major shareholder
Takenaka Corporation
SHIMIZU CORPORATION(as of April 1, 2012)
Principal businessLeasing, acquisition and disposition, property management andmaster leasing of real estate etc.
Relationship with the Company or The majority of directors at the Dai-Ichi Building Co., Ltd. areseconded by The Dai-Ichi Life Insurance Company, Ltd., a
the asset management
shareholder (with a holding of 27% of shares) of the Japan Realcompany
Estate Asset Management Co., Ltd. (the asset managementcompany), to which the Company entrusts the management of its
assets.
The Dai-Ichi Building Co., Ltd. does not fall within the definition ofrelated party of the asset management company under the Order for
Enforcement of the Japanese Act on Investment Trusts andInvestment Corporations. However, as the Dai-Ichi Building Co.,
Ltd. falls within the definition of related party under the internal
rules of the asset management company, the asset managementcompany obtained the review and approval from the compliancecommittee, and undergone approval procedures at an asset
management meeting, pursuant to the Rules for Related Party
Transactions.

3(2) Tenant details
Total number of tenants
Total leasable space
Total leased space
Trend in occupancy rates

19
15,020 m2
14,853 m2
March 31, 2011
September 30, 2011
March 31, 201241.7 %
62.7 %
98.9 %
Scheduled acquisition date
98.9 %
Total rent revenue
Undisclosed due to non-approval of disclosure by tenants
Security Deposit
Undisclosed due to non-approval of disclosure by tenants¥ 1,006 million per year
NOI (Net Operating Income）(Estimated under normal leasing operation)
Depreciation¥ 470 million per year
(Estimated under normal leasing operation)- Total number of tenants, total leasable space, total leased space and occupancy
rate on the scheduled acquisition date are projections as of the scheduledacquisition date.
(Notes)- NOI is an estimated amount under normal operation given the fixed property taxes
and city planning taxes based on the terms and conditions of lease agreements as ofthe scheduled acquisition date, etc.
* Estimated occupancy rate: 95.0 %- Depreciation represents the estimated amount under normal operation.
- The above figures (except NOI and depreciation) are based on the data provided by
the seller.
(3) Specifications for rental floor space
Ceiling height
2,800 mmStandard floor area
329 tsubo
Office automation floor
100 mmElectric capacity
50 VA/m2
Air conditioning system
Individual air conditioning
Floor load
500 kg/m2 (heavy-duty zone 1,000 kg/m2)
OthersAround-the-clock entry and exit
(4) Outline of the engineering report
i. Outline of repair items
Date of report
Preparer of report
Repairing expenses/Capital expenditure forthe next 15 years

Repairing expenses
Capital expenditure
Total(Annual average)

March 30, 2012
Shimizu Corporation¥ 14 million¥ 2 million¥ 16 million

ii. Description concerning utilization status of asbestos(Description on the possible use of asbestos）
None

Sprayed materials with asbestos44. Outline of sellers
Corporate name
Address of the registered head
officeRepresentative
Paid-in capital
Establishment date
Major shareholder
Principal business

ITOCHU Property Development, Ltd.
2-9-11 Akasaka, Minato-ku, Tokyo

Shigeru Tsujimura, President¥10,225 million (as of March 31, 2012)
December 1, 1997
ITOCHU Corporation (as of March 31, 2012)
Development of office buildings and commercial facilities,
operation, management and consulting of real estate, etc.
Relationship with the Company or the asset management company
Capital relationship
None in particular
Personal relationship
Business relationshipApplicability to related parties

None in particularNone in particularNone in particularCorporate name
Address of the registered head
officeRepresentative
Paid-in capital
Establishment date
Major shareholder
Principal businessTokyo Kaihatsu K Special Purpose Company (TMK)
1-11 Kanda-Jinbocho, Chiyoda-ku, Tokyo
Located in Sakura Sogo Jigyosho
Tomoyoshi Horikawa, Director¥5,530 million (as of April 27, 2012)
November 8, 2006
Undisclosed due to the seller’s request(1)Undertaking, managing, and disposing of specified assets inaccordance with an asset securitization plan under the Act on
Securitization of Assets(2)Operations that occur in conjunction with and in relation to
the securitization of such specified assets
Relationship with the Company or the asset management company
Capital relationship
None in particular
Personal relationship
Business relationshipApplicability to related parties

Corporate name
Address of the registered head
officeRepresentative
Paid-in capital
Establishment date
Major shareholder

None in particularNone in particularNone in particularTokyo Tatemono Co., Ltd.
1-9-9 Yaesu, Chuo-ku, Tokyo
Hajime Sakuma, President & Representative Director¥92,451 million (as of December 31, 2011)
October 1, 1896
Japan Trustee Services Bank, Ltd. (Trust Account)
Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account 9)(as of December 31, 2011)

Principal business
Sales, lease and brokerage of real estate etc.
Relationship with the Company or the asset management company
Capital relationship
None in particular
Personal relationship

None in particular5

Business relationshipApplicability to related parties

None in particularNone in particular

5. Information on property owners, etc.
This domestic real estate was not acquired from an interested party with a special relationship to the Company
and/or the asset management company.
6. Outline of the brokerage
Not applicable

7. Acquisition scheduleMay 17, 2012
The property acquisition was determined.
May 18, 2012
Execution of agreement for the acquisition of the property (scheduled)
June 15, 2012
Closing of acquisition (scheduled)

8. Performance projection
For the company’s performance projection for the term ending September 2012 (from April 1, 2012 throughSeptember 30, 2012), given the acquisition of the property, please refer to the Announcement of Twenty-first
Fiscal Period Results ended March 2012 (REIT) in Japanese dated May 17, 2012.

This notice is the English translation of the announcement in Japanese dated May 17, 2012 on our website.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

Reference materials (attachment)• Outline of appraisal report• Photo: Outside view of TIXTOWER UENO
• Information map• List of a11 the assets of the Company after the acquisition of this asset

6

(Reference) Outline of appraisal report
Appraisal value
Appraisal institution
Appraisal date

¥22,300,000,000
DAIWA REAL ESTATE APPRAISAL CO.,LTD.
April 1, 2012

Item
Capitalized value
Value in direct capitalization method

Value/%¥22,300,000 thousand¥22,900,000 thousand

Net cash flow

¥1,053,836 thousand

Cap rate

4.6%

Value in DCF method¥22,100,000 thousand

Discount rate

4.4%

Terminal cap rate

4.8%

Integration value
Percentage for land

¥11,200,000 thousand
49.1%

Percentage for building

50.9%* Values below a thousand yen are cut off.

(Reference) Information map

7

(Reference) Photo: Outside view of TIXTOWER UENO

8

List of all the assets of the Company after the acquisition of this asset
Area

Name
Genki Medical Plaza
Kitanomaru Square
MD Kanda Building
Kandabashi Park Building
Nibancho Garden
Mitsubishi UFJ Trust and Banking
Building
Burex Kojimachi Building
Sanno Grand Building
Yurakucho Denki BuildingTokyo
metropolitan
area(23 wards)

Location
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
TokyoType of asset

Acquisition date orscheduled acquisitiondate

Acquisition
price (Note 1)(thousand yen)

Percentage
of portfolio

Real property

October 31, 2002

5,000,000

0.7%Real property

February 24, 2006

81,555,500

11.0%Real property

May 31, 2002

9,520,000

1.3%Real property

August 15, 2002

4,810,000

0.6%Real property

April 1, 2005

14,700,000

2.0%Real property

March 28, 2007

44,700,000

6.0%Real property

July 29, 2005

7,000,000

0.9%January 31, 2005
April 3, 2006
Total

10,200,000

Real property

August 1, 2003

7,200,000

1.0%

September 25, 2001

3,173,000

0.4%

March 1, 2011

4,410,000

0.6%Real property
Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate

10,700,000

2.8%

20,900,000

Kodenmacho Shin-Nihonbashi
Building

Chuo-ku, Tokyo

Kyodo Building(Kayabacho 2Chome)

Chuo-ku, Tokyo

Burex Kyobashi Building

Chuo-ku, Tokyo

Real property

July 22, 2002

5,250,000

0.7%

Ginza Sanwa Building

Chuo-ku, Tokyo

Real property

March 10, 2005

16,830,000

2.3%

Ryoshin Ginza East Mirror Building

Chuo-ku, Tokyo

Real property

March 15, 2005
May 24, 2010
Total

5,353,500
2,645,922
7,999,422

1.1%

Harumi Center Building

Chuo-ku, Tokyo

Real property

December 18, 2007

26,800,000

3.6%Real Property

November 15, 2011

60,800,000

8.2%
1.0%

Akasaka Park Building
Aoyama Crystal Building

Minato-ku,
Tokyo
Minato-ku,
Tokyo

Shiodome Building

Minato-ku,
TokyoShiba 2Chome Daimon Building

Minato-ku,TokyoCosmo Kanasugibashi Building

Minato-ku,
TokyoShinwa Building

Shinjuku-ku,
TokyoTokyo Opera City Building
TIXTOWER UENO
Higashi-Gotanda 1Chome Building
Osaki Front Tower
Omori-Eki Higashiguchi Building
Nippon Brunswick Building
Yoyogi 1Chome Buildingda Vinci Harajuku
Jingumae Media Square Building
Shibuya Cross Tower
Ebisu Neonato
Harmony Tower

Shinjuku-ku,
Tokyo
Taito-ku,Tokyo
Shinagawa-ku,
Tokyo
Shinagawa-ku,
TokyoReal property

March 14, 2003

7,680,000

Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate

December 19, 2008
January 15, 2010
Total

21,250,000
54,600,000
75,850,000

10.2%

September 10, 2001

4,859,000

0.7%

September 25, 2001

2,808,000

0.4%Real property

September 1, 2004

7,830,000

1.1%Real property

September 13, 2005
March 24, 2010
Total

9,350,000
22,426,831
31,776,831

4.3%

Real property

June 15, 2012

22,000,000

3.0%Real property

November 1, 2004

5,500,000

0.7%

79.1%

Real property

February 1, 2011

12,300,000

1.7%

Trust beneficiaryright in trust ofreal estate

September 10, 2001

5,123,000

0.7%Real property

March 24, 2004

6,670,000

0.9%Real property

April 1, 2004

8,700,000

1.2%Real property

November 22, 2002

4,885,000

0.7%Real property

October 9, 2003

12,200,000

1.6%Real property

November 30, 2001

34,600,000

4.7%

Shibuya-ku
Tokyo

November 14, 2003
April 1, 2004
Total

3,740,000

Real property

Nakano-ku
TokyoReal property

February 28, 2005

8,500,000

Ota-ku, Tokyo
Shibuya-ku,
TokyoShibuya-ku,
TokyoShibuya-ku,
TokyoShibuya-ku,
TokyoShibuya-ku,
Tokyo

Percentage
by area9360,000

0.6%

4,100,000
1.1%

Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate

Otsuka Higashi-Ikebukuro Building

Toshima-ku,
Tokyo

Ikebukuro 2Chome Building

Toshima-ku,
Tokyo

Ikebukuro YS Building

Toshima-ku,
TokyoReal property

Hachioji First Square

Hachioji City,
Tokyo

Real property

Saitama Urawa BuildingTokyo
metropolitan
area(excluding
23 wards)

MM Park Building

Kawasaki Isago Building

Musahi Kosugi STM Building

Saitama City,
SaitamaPrefecture
Yokohama City,
Kanagawa
Prefecture
Kawasaki City,
Kanagawa
Prefecture
Kawasaki City,
Kanagawa
Prefecture

September 25, 2001

3,541,000

0.5%

September 25, 2001

1,728,000

0.2%

August 2, 2004

4,500,000

0.6%March 31, 2005
March 19, 2008
Total
September 25, 2001
October 11, 2001
Total

3,300,000

Real property

March 24, 2008

37,400,000

5.0%

Trust beneficiaryright in trust ofreal estate

September 25, 2001

3,375,000

0.5%Real property

March 25, 2008

4,000,000

0.5%

638,826,866

86.3%

86.3%
1.0%

Real property

Total: Tokyo metropolitan area
Hokkaido

8 • 3 Square Kita Building
Jozenji Park Building

TohokuregionHokuriku
regionReal property

January 31, 2005

1,000,000

0.1%

September 25, 2001
June 28, 2006
Total
February 28, 2002
March 3, 2003
Total
October 2, 2006
November 1, 2006
Total

2,924,000

Real property

September 22, 2006

1,680,000

0.2%Real property

September 10, 2001

14, 533,000

2.0%Real property

August 8, 2003

1,865,000

0.3%Real property

December 20, 2001

2,650,000

0.4%

Trust beneficiaryright in trust ofreal estate

September 1, 2008

24,000,000

3.2%

2,264,000

14,314,000

Kanazawa Park Building

Real property

Nagoya City,
Aichi Prefecture

Real property

Nagoya Misono Building
Kyoto Shijo Kawaramachi Building

Shin-Fujita Building
Kinki region

0.3%

2,574,000

1.0%

Kanazawa City,
Ishikawa
Prefecture

Nagoya Hirokoji Building

1,342,000

7,100,000

Trust beneficiaryright in trust ofreal estate

Nagoya City,
Aichi Prefecture
Nagoya City,
Aichi Prefecture
Nagoya City,
Aichi Prefecture
Kyoto City,
Kyoto
Prefecture
Osaka City,
Osaka
Prefecture

1,232,000

June 1, 2007

Sendai City,
MiyagiPrefecture

Hirokoji Sakae Building

0.8%

5,679,112

Real property

Sendai Honcho Honma
Building

Nishiki Park Building
Chubu
regionSapporo City,
Hokkaido
Sendai City,
MiyagiPrefecture

2,379,112

250,000

7.2%

0.6%
0.4%

3,174,000
2,880,000
1,700,000

0.6%

0.6%

4,580,000
3,850,000
1,300,000

0.7%

5,150,000
3.1%

6.1%

Sakaisujihonmachi Building

Osaka City,
Osaka
Prefecture

Real property

Midosuji Daiwa Building

Osaka City,
Osaka
Prefecture

Trust beneficiaryright in trust ofreal estate

September 25, 2001
December 26, 2003
Total
September 25, 2001
February 28, 2002
Total

Lit City Building

Okayama City,
OkayamaPrefecture

Real property

February 1, 2006

4,650,000

NHK Hiroshima Broadcasting
Center Building

Hiroshima City,
Hiroshima
Prefecture

March 25, 2004
March 3, 2008
Total

1,320,000

Real property

Real property

September 25, 2001

1,550,000

0.2%Real property

June 1, 2005

5,000,000

0.7%

Trust beneficiaryright in trust ofreal estate

September 10, 2001

3,657,000

0.5%

Total: Other major cities

101,837,000

13.7%

13.7%

Total: Portfolio

740,663,866

100.0%

100.0%

ChugokuregionTosei Tenjin Building
KyushuregionTenjin Crystal Building

Hinode Tenjin Building(Note1)(Note2)

Fukuoka City,
Fukuoka
Prefecture
Fukuoka City,
Fukuoka
Prefecture
Fukuoka City,
Fukuoka
Prefecture

1,900,000

0.6%

4,164,000
6,934,000
7,380,000

1,450,000

1.9%

0.6%
1.0%
0.4%

2,770,000

Acquisition prices are expressed by cutting off the numbers below a thousand.
The acquisition price of Jingumae Media Square Building is the price of the property on the date of acquisition (October
9, 2003), including the sales cost (¥614 million) of the part of the property that was transferred on October 30, 2009.

10

1.4%