February 29, 2016
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Hiroshi Nakajima, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Hiroshi Katayama, CEO & President
Contact: Ryuta Yoshida,
Executive Officer, General Manager, Planning Department
Phone: +81-3-3211-7951

Notice of the transfer of Domestic Real Estate
Japan Real Estate Investment Corporation (the “Company”) hereby announces that Japan Real Estate
Asset Management Co., Ltd., an asset management company to which the Company entrusts the
management of its assets, decided on February 29, 2016 to transfer the following domestic real estate
property.
1. Outline of transfer
1) Asset to be transferred:

Domestic Real Estate2) Name of asset:

Hirokoji Sakae Building3) Planned transfer price:¥1,850 million (Note 1)

4) Nominal book value:
5) Difference between
planned transfer price andnominal book value:
6) Scheduled contract date:¥1,681 million (Note 2)

March 1, 20167) Scheduled handover date:

March 30, 20168) Transferee:9) Settlement method:

TOTEC AMENITY LIMITED
A 10% deposit of the planned transfer price and consumption tax onbuilding will be paid on the scheduled contract date and the remaining
amount will be paid on the scheduled handover date.

¥168 million (Note 3)

Note 1: Expenses for transfer, property taxes, city planning taxes and consumption taxes are not included in theplanned transfer price.
Note 2: The nominal book value means the nominal book value as of March 30, 2016 computed by the asset
management company based on the book value at the end of the period ended September 30, 2015, thescheduled capital expenditures for up to March 30, 2016 and the nominal base depreciation for up to
March 30, 2016. However it is the number rounded down to the nearest million.

1

Note 3: It does not mean gain or loss from the transfer as it is the reference value calculated the balance between
the planned transfer price and the nominal book value. However it is the number rounded down to thenearest million.

2. Reasons for the transfer
This property is a relatively small-scale building and its building age exceeds the average building
age among the Company’s portfolio.
The transfer was decided after reviewing the current and future portfolio strategy taking into
consideration the characteristic of the building, the profitability of the portfolio and the real estatemarket trend, etc. with the asset management basic policy and the investment attitude stipulated in
the Article of the Company.
3. Details of the asset to be transferred
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.
Name of the asset
Type of specified asset
Location
Usage
Area
Land
Building
Structure
Completion date
Type of ownership
Land
Building
Acquisition date
Acquisition priceAppraisal value at transfer(Appraisal institution)(Appraisal date)
Tenant details
Total number of tenants
Total leasable space
Total leased space
Occupancy rate
Total rent revenue
Security Deposit

Hirokoji Sakae Building
Real estate
4-1, 2 Chome, Sakae, Naka-ku, Nagoya City,
Aichi Prefecture
Offices, shops
786.79 m2
6,445.08 m2
Steel-framed reinforced concrete structure, flat roof
Above ground: 9 floors Below ground: 2 floors
September 1987
Ownership
Ownership
September 22, 2006
¥ 1,680 million¥ 1,640 million(Daiwa Real Estate Appraisal Co., Ltd.)(as of February 1, 2016)
17 (As of February 29, 2016. The same shall apply hereafter)
3,911 m2
3,800 m2
97.2 % (Note)¥ 91,677 thousand (the September 2015 period)¥ 137,373 thousand (as of February 29, 2016)(Note) Some leasing contracts will be terminated on March 4, 2016.
The estimated occupancy rate will be 92.1% after the termination.

2

4. Outline of transferee
Corporate name
Address of the registered head
officeRepresentative
Establishment date
Paid-in capital
Major shareholders

TOTEC AMENITY LIMITED
27-8, 2 Chome, Meieki, Nishi-ku, Nagoya City,
Aichi Prefecture
Koji Sakai, President & CEO
May 20, 1971
¥180.62 million (as of February 29, 2016)
Koji Sakai (31%)
SAKAI Shoji (17%)

Employee stock ownership (14%)
1. Computer services, Providing computational
calculation and dispatching computer engineer
2. Selling program and consulting for development ofprogram
3. Selling computer and computer related device etc.
Net Assets and Total Assets in
Net assets (consolidate): ¥6,798 million (the March 2015
the preceding fiscal period
period)Total assets (consolidate): ¥12,662 million (same as theabove)
Relationship with the Company or the asset management company
Capital relationship
None in particular
Personal relationship
None in particularBusiness relationship
None in particular
Applicability to related parties None in particular
Principal Business5. Transactions with interested parties
Transactions with interested parties stipulated by the Act on Investment Trusts and Investment
Corporations of Japan will not be conducted with the transfer of domestic real estate.
6. Outline of brokerage
Corporate name
Address of theregistered head office
Representative
Establishment date
Paid-in capital
Principal business
Relationship with theCompany or the asset
managementcompany

Brokerage fee

Mitsubishi UFJ Trust and Banking Corporation (the“Corporation”)
4-5, 1 Chome, Marunouchi, Chiyoda-ku, Tokyo
Tatsuo Wakabayashi, President and Chairman
March 10, 1927
¥324.2 billion (as of March 31, 2015)
Trust asset business, Banking business, Stock transfer agency, Realestate business and others
The Corporation will be the Administrative Agent for the Company(for the business affairs related to Articles 117, paragraph (2) to (6)of the Act on Investment Trusts and Investment Corporations ofJapan other than those pertaining to investment corporation bonds)(Note).
There is no other special mention matter.
Undisclosed due to non-approval of disclosure by the broker

3

(Note) Please see the news release “Notice concerning Change of Administrative Agent”dated on December
18, 2015 for the details.

7. Schedule for the transfer
February 29, 2016 Determination of the transfer of the property
Execution of agreement for the transfer of the property andMarch 1, 2016
Receipt of a deposit (Note), ¥ 190 million (scheduled)
March 30, 2016
Closing of transaction (scheduled)(Note) The deposit shall bear no interest and will be applied to a part of the transfer price and consumption tax onbuilding at a settlement of the balance.

8. Performance projection
As the impact of the transfer of this property on the Company’s management performance for the
March 2016 period from October 1, 2015 to March 31, 2016 and the September 2016 period from
April 1, 2016 to September 30, 2016 is expected to be minor, no revision of the forecast for
performance will be made.
As for the gain on this transfer, a maximum of 60% of gains on disposal of land will be considered tobe reserved by utilizing special taxation measure“Special Provision for Taxation in the Event ofAdvance Acquisition of Land, etc. in 2009 and 2010”stipulated in Article 66-2 of the Act on Special
Measures Concerning Taxation.
9. Outline of appraisal report
Name of asset
Appraisal value
Appraisal institution
Appraisal dateHirokoji Sakae Building¥1,640,000 thousand
Daiwa Real Estate Appraisal Co., Ltd.
February 1, 2016
AmountItem

General Outline(thousand yen)

Estimated with DCF method which is referring future

Capitalization Value

1,640,000 net cash flow and also with the validation ofcapitalization value by direct method.

Direct Capitalization Value(1)Operating Revenue [①－②]1,670,000
183,042
Estimated based on level and trend of comparable cases① Annual Rent Revenue

194,688② Amount of Loss due to Vacancy

11,646 sustainable vacancy rate based on a level of comparable

referring to medium-to long term competitiveness etc.
Calculated with the estimation of medium-to long termcases and considering competitiveness etc.

(2)Operating Expenses

79,329Maintenance Cost for Building

23,338(Note)

Property Management Fee
Brokerage Fee etc.

Calculated maintenance cost based on the actual costs inpast years. Calculated PM fee based on current
contracts.

1,414 Monthly cost referring to comparable property cases.

4Calculated based on the actual costs in the past

Utilities Expenses

25,578

Repairing Expenses

5,333

Property and Other Taxes
Casualty Insurance

22,502 Estimated based on the actual figures for fiscal 2015.
738 Estimated based on comparable properties cases.

Other Expenses

423

considering occupancy rate.
Estimated based on annual average costs listed on theengineering reports.

Road occupation fee. Estimated based on the actual
figures for fiscal 2015.

(3)Net Operating Income [(1)－(2)](4)Profit from Managing Security Deposit

103,7122,504 Calculated at 2% of assuming investment costs.

(5)Capital Expenditure

24,206(6)Net Cash Flow [(3)+(4)－(5)]82,011

Estimated based on annual average expenditure listedon the engineering reports.

Estimated based on cap rate for A class building, of(7)Cap Rate

4.9%

which risk is the lowest, considering comparable
properties and characteristics of buildings such as
location and building age etc.

Discounted Cash Flow Value

1,630,000

Discount Rate

4.7%

Estimated with reference to comparable discount rate
etc.
Estimated with reference to comparable transaction

Terminal Cap Rate

5.1% yield considering a comprehensive perspective ofinvestment yield in future trend.

Integrated Value
Ratio of Land
Ration of Building

2,440,000
84.3%
15.7%

* Values below a thousand yen are cut off.

Any special considerations made in thereconciliation of estimated value andNone in particulardetermination of the final appraisal value(Note) The property management company of the subject property did not agree to disclose theproperty management fee. If the fee for the subject property were to be disclosed, it may
impact on other deals related to the property management company, which could affect theCompany to delegate effective property management service based on our policy of property
maintenance and operation. This could in turn undermine the interest of our unitholders.
Accordingly, maintenance costs for the building and property management fees are shown intotal amount.

This notice is the English translation of the announcement in Japanese dated on February 29, 2016.
However, no assurance or warranties are given for the completeness or accuracy of this English
translation.

5

(Reference) List of all the assets of the Company after the transfer of this asset
Area

Acquisition price (Note 1)(thousand yen)

Percentage
of portfolio

Name

Location

Type of asset

Acquisition date

Genki Medical Plaza

Chiyoda-ku, Tokyo

Real property

October 31, 2002

５，０００，０００

０．５％
８．８％

Kitanomaru Square

Chiyoda-ku, Tokyo

Real property

February 24, 2006

８１，５５５，５００

MD Kanda Building

Chiyoda-ku, Tokyo

Real property

M ay 31, 2002

９，５２０，０００

１．０％

Kandabashi Park Building

Chiyoda-ku, Tokyo

Real property

August 15, 2002

４，８１０，０００

０．５％

Otemachi Financial City
North Tower

Chiyoda-ku, Tokyo

Real property

M arch 31, 2014

１５，４６２，９００

１．７％

Nibancho Garden

Chiyoda-ku, Tokyo

Real property

April 1, 2005

１４，７００，０００

１．６％

Mitsubishi UFJ Trust and Banking
Building

Chiyoda-ku, Tokyo

Real property

M arch 28, 2007

４４，７００，０００

４．８％

Burex Kojimachi Building

Chiyoda-ku, Tokyo

Real property

July 29, 2005

７，０００，０００

０．８％

１０，２００，０００
１０，７００，０００
２０，９００，０００

２．３％

Sanno Grand Building

Chiyoda-ku, Tokyo

Real property

January 31, 2005
April 3, 2006
Total

Yurakucho Denki Building

Chiyoda-ku, Tokyo

Real property

August 1, 2003

７，２００，０００

０．８％

Kodenmacho Shin-Nihonbashi Building

Chuo-ku, Tokyo

Trust beneficiary rightin trust of real estate

September 25, 2001

３，１７３，０００

０．３％

Kyodo Building(Kayabacho 2Chome)

Chuo-ku, Tokyo

Trust beneficiary rightin trust of real estate

M arch 1, 2011

４，４１０，０００

０．５％

Burex Kyobashi Building

Chuo-ku, Tokyo

Real property

July 22, 2002

５，２５０，０００

０．６％

Ginza 1 chome East Building

Chuo-ku, Tokyo

Trust beneficiary rightin trust of real estate

M arch 2, 2015

６，４５９，０００

０．７％

Ginza Sanwa Building

Chuo-ku, Tokyo

Real property

M arch 10, 2005

１６，８３０，０００

１．８％

Ryoshin Ginza East Mirror Building

Chuo-ku, Tokyo

Real property

M arch 15, 2005
M ay 24, 2010
Total

５，３５３，５００２，６４５，９２２
７，９９９，４２２

０．９％

Harumi Front

Chuo-ku, Tokyo

Real property

January 7, 2013

３１，３００，０００

３．４％

Harumi Center Building

Chuo-ku, Tokyo

Real property

December 18, 2007

２６，８００，０００

２．９％

Akasaka Park Building

Minato-ku, Tokyo

Real property

November 15, 2011

６０，８００，０００

６．６％

Aoyama Crystal Building

Minato-ku, Tokyo

Real property

M arch 14, 2003

７，６８０，０００

０．８％

Clover Shiba-koen

Minato-ku, Tokyo

Trust beneficiary rightin trust of real estate

January 20, 2015

４，５００，０００

０．５％

December 19, 2008
January 15, 2010
M ay 1, 2015
Total

２１，２５０，０００
５４，６００，０００
１０，１００，０００
８５，９５０，０００

９．３％

４，８５９，０００

０．５％

０．３％

Shiodome Building

Minato-ku, Tokyo

Trust beneficiary rightin trust of real estate

Shiba 2Chome Daimon Building

Minato-ku, Tokyo

Trust beneficiary rightin trust of real estate

September 10, 2001

Cosmo Kanasugibashi Building

Minato-ku, Tokyo

Trust beneficiary rightin trust of real estate

September 25, 2001

２，８０８，０００

Shinjuku Eastside Square

Shinjuku-ku, Tokyo

Real property

October 1, 2014

２３，１００，０００

２．５％

Shinwa Building

Shinjuku-ku, Tokyo

Real property

September 1, 2004

７，８３０，０００

０．８％

Tokyo Opera City Building

Shinjuku-ku, Tokyo

Real property

September 13, 2005
M arch 24, 2010
Total

９，３５０，０００２２，４２６，８３１
３１，７７６，８３１

３．４％

TIXTOWER UENO

Taito-ku, Tokyo

Real property

June 15, 2012

２２，０００，０００

２．４％
０．６％

Tokyo
metropolitan
area(23 wards)

７４．４％

Higashi-Gotanda 1Chome Building

Shinagawa-ku, Tokyo

Real property

November 1, 2004

５，５００，０００

Osaki Front Tower

Shinagawa-ku, Tokyo

Real property

February 1, 2011

１２，３００，０００

１．３％

Omori-Eki Higashiguchi Building

Ota-ku, Tokyo

Trust beneficiary rightin trust of real estate

September 10, 2001

５，１２３，０００

０．６％

Nippon Brunswick Building(Land with leasehold interest)

M arch 24, 2004

６，６７０，０００

Shibuya-ku, Tokyo

Real property

August 23, 2013

－１，１７０，０００

Total

５，５００，０００

Yoyogi 1Chome Building

Shibuya-ku, Tokyo

Real property

April 1, 2004

８，７００，０００

０．９％

da Vinci Harajuku

Shibuya-ku, Tokyo

Real property

November 22, 2002

４，８８５，０００

０．５％

０．６％

Jingumae Media Square Building

Shibuya-ku, Tokyo

Real property

October 9, 2003

１２，２００，０００

１．３％

Shibuya Cross Tower

Shibuya-ku, Tokyo

Real property

November 30, 2001

３４，６００，０００

３．７％

November 14, 2003
April 1, 2004
February 18, 2014
Total
February 28, 2005
December 19, 2012
M arch 27, 2015
Total

３，７４０，０００
３６０，０００
１０，５１２，０００
１４，６１２，０００
８，５００，０００
５２０，０００
２，１００，０００
１１，１２０，０００

Ebisu Neonato

Shibuya-ku, Tokyo

Real property

Harmony Tower

Nakano-ku Tokyo

Real property

１．６％

１．２％

Toshima-ku, Tokyo

Trust beneficiary rightin trust of real estate

September 25, 2001

３，５４１，０００

０．４％

Ikebukuro 2Chome Building

Toshima-ku, Tokyo

Trust beneficiary rightin trust of real estate

September 25, 2001

１，７２８，０００

０．２％

Ikebukuro YS Building

Toshima-ku, Tokyo

Real property

August 2, 2004

４，５００，０００

０．５％

M arch 31, 2005
M arch 19, 2008
Total
September 25, 2001
October 11, 2001

３，３００，０００２，３７９，１１２
５，６７９，１１２
１，２３２，０００
１，３４２，０００

Total

２，５７４，０００

Otsuka Higashi-Ikebukuro BuildingTokyo
metropolitan
area(excluding 23 wards)

Hachioji First Square

Hachioji City, Tokyo

Real property

Saitama Urawa Building

Saitama City,
Saitama Prefecture

Real property

０．６％

０．３％

MM Park Building

Yokohama City,
Kanagawa Prefecture

Real property

M arch 24, 2008

３７，４００，０００

４．０％

Queen's Tower A

Yokohama City,
Kanagawa Prefecture

Trust beneficiary rightin trust of real estate

January 31, 2014

１７，２００，０００

１．９％

Kawasaki City,
Trust beneficiary right
Kanagawa Prefecture in trust of real estate

September 25, 2001

３，３７５，０００

０．４％

Kawasaki Isago Building

Musahi Kosugi STM Building

Kawasaki City,
Kanagawa Prefecture

Percentage
by area

７．６％

Real property

Total: Tokyo metropolitan area

6

M arch 25, 2008

４，０００，０００

０．４％

７５８，９１０，７６６

８１．９％

８１．９％

Acquisition price (Note 1)(thousand yen)

Percentage
of portfolio

Area

Name

Location

Type of asset

Acquisition date

Hokkaido

8 • 3 Square Kita Building

Sapporo City,
Hokkaido

Real property

June 1, 2007

７，１００，０００

０．８％

Jozenji Park Building

Sendai City,
Miyagi Prefecture

Real property

January 31, 2005

１，０００，０００

０．１％

Higashi Nibancho Square

Sendai City,
Miyagi Prefecture

Real property

January 7, 2013

９，９５０，０００

１．１％

September 25, 2001

２，９２４，０００
２５０，００００．３％

TohokuregionHokuriku
regionSendai Honcho Honma
Building

Sendai City,
Miyagi Prefecture

Trust beneficiary rightin trust of real estate

AER

Sendai City,
Miyagi Prefecture

Real property

Kanazawa Park Building

Nishiki Park Building

Chubu
regionKinki
regionChugokuregionKyushuregionKanazawa City,
Ishikawa Prefecture
Nagoya City,
Aichi Prefecture

June 28, 2006
total

Real property

Real property

１８，６４０，０００

February 28, 2002

２，８８０，０００

M arch 3, 2003

１，７００，０００

total

４，５８０，０００
３，８５０，０００

June 9, 2014

３．５％

１，３００，０００
６５０，０００

total

５，８００，０００

２．０％

０．５％

Nagoya City,
Aichi Prefecture

Trust beneficiary right intrust of real estate

July 31, 2013８，５６７，０００

０．９％

Nagoya Hirokoji Building

Nagoya City,
Aichi Prefecture

Real property

September 10, 2001

１４，５３３，０００

１．６％

Nagoya Misono Building

Nagoya City,
Aichi Prefecture

Real property

August 8, 2003

１，８６５，０００

０．２％

Shijo Karasuma Center Building

Kyoto City,
Kyoto Prefecture

Real property

September 3, 2013

４，４００，０００

０．５％

Kyoto Shijo Kawaramachi Building

Kyoto City,
Kyoto Prefecture

Real property

December 20, 2001

２，６５０，０００

０．３％

Umeda Square Building

Osaka City,
Osaka Prefecture

Trust beneficiary rightin trust of real estate

April 1, 2015

１５，５２３，５２０

１．７％

Shin-Fujita Building

Osaka City,
Osaka Prefecture

Trust beneficiary rightin trust of real estate

September 1, 2008

２４，０００，０００

２．６％

September 25, 2001

Sakaisujihonmachi Building

Osaka City,
Osaka Prefecture

２，２６４，０００
１，９００，０００

０．４％

December 26, 2003
total
September 25, 2001

０．５％

０．６％

Nagoya Hirokoji Place

Real property

０．８％

３，１７４，０００

September 1, 2015

October 2, 2006
November 1, 2006

Percentage
by area

３．３％

８．０％

４，１６４，０００

February 28, 2002

６，９３４，０００
７，３８０，０００

total

１４，３１４，０００

M arch 25, 2015

９，３００，０００

１．０％

February 1, 2006

４，６５０，０００

０．５％

Midosuji Daiwa Building

Osaka City,
Osaka Prefecture

Trust beneficiary rightin trust of real estate

Amagasaki Front Building

Amagasaki City,
Hyogo Prefecture

Trust beneficiary rightin trust of real estate

Lit City Building

Okayama City,
Okayama Prefecture

Real property

M arch 25, 2004
M arch 3, 2008

１，３２０，０００

total

２，７７０，０００

１．５％

０．８％

NHK Hiroshima Broadcasting Center
Building

Hiroshima City,
Hiroshima Prefecture

Real property

Tosei Tenjin Building

Fukuoka City,
Fukuoka Prefecture

Real property

September 25, 2001

１，５５０，０００

０．２％

Tenjin Crystal Building

Fukuoka City,
Fukuoka Prefecture

Real property

June 1, 2005

５，０００，０００

０．５％

Hinode Tenjin Building

Fukuoka City,
Fukuoka Prefecture

Trust beneficiary rightin trust of real estate

September 10, 2001

１，４５０，０００

０．３％

１．１％

３，６５７，０００

０．４％

Total: Other major cities

１６７，１８７，５２０

１８．１％

１８．１％

Total: Portfolio

９２６，０９８，２８６

１００．０％

１００．０％(Note1) Acquisition prices are expressed by cutting off the numbers below a thousand.
(Note2) The transfer price of Nippon Brunswick Building (building) dated August 23, 2013 is indicated minus ￥ 1,170 million, which is the buildinmg acquisition price on the date of the aqcuisition as of March 24, 2004.
(Note3) The acquision 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 propeetythat was transferred on October 30, 2009.

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