NEWS RELEASE

Japan Real Estate Investment CorporationOctober 25, 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 concerning Pre-payment of Loan
Announcement is hereby made that on October 25, 2012, Japan Real Estate Investment Corporation
decided to make the pre-payment of the following existing loans prior to the principal repayment dates:
1. Pre-payment of loan
November 1, 2012(a) Pre-payment date:¥14,500 million(b) Total amount of pre-payment:(c) Details of loans to be pre-paid before the due dates:<Short-term loans from Mitsubishi UFJ Trust and Banking Corporation, The Bank of Tokyo-Mitsubishi
UFJ, Ltd. and Mizuho Corporate Bank, Ltd. >1) Total amount of loan:¥4,000 million
Lender, amount of loan, amount of pre-payment, balance after the pre-payment of loan, start ofthe loan period and principal repayment date:
Mitsubishi UFJ Trust
The Bank ofMizuho Corporate Bank,Lenderand Banking
Tokyo-Mitsubishi UFJ,Ltd.
CorporationLtd.

2)

Amount of loan

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

Amount of pre-payment¥1,500 million¥1,500 million¥1,000 million¥0 million¥0 million¥0 million

BalanceStart of the loan period

August 1, 2012

Principal repayment dateFebruary 1, 2013

3)
4)

Interest rate:
Borrowing method:

5)Interest payment date:

6)

Repayment of principal:

0.28% (From October 1, 2012 to October 31, 2012)
Loan based on overdraft agreements concluded separately withrespective lenders
Unsecured/non-guaranteed loan
1st of every month until the principal repayment date (includingthe principal repayment dates)
Payment in full on the principal repayment dates

<Short-term loan from The Bank of Tokyo-Mitsubishi UFJ, Ltd.>
1) Start of the loan period:
September 3, 2012
2)

Amount of loan:¥500 million

3)

Amount of pre-payment:¥500 million

4)5)Balance after the pre-payment of loan:
Interest rate:¥0 million

6)

Borrowing method:

7)

Interest payment date:

8)

Repayment of principal:

0.28% (from October 3, 2012 to November 4, 2012)
Loan based on overdraft agreement concluded with lender
Unsecured/non-guaranteed loan
3rd of every month until the principal repayment date(including the principal repayment dates)
Payment in full on the principal repayment date9)

Principal repayment date:

March 4, 2013

<Short-term loan from Mizuho Corporate Bank, Ltd.>
1) Start of the loan period:
June 1, 2012
2)

Amount of loan:¥1,000 million

3)

Amount of pre-payment:¥1,000 million

4)5)Balance after the pre-payment of loan:
Interest rate:¥0 million

6)

Borrowing method:

7)

Interest payment date:8)

Repayment of principal:

0.33% (from October 1, 2012 to October 31, 2012)
Loan based on overdraft agreement concluded with lender
Unsecured/non-guaranteed loan
1st of every month until the principal repayment date(including the principal repayment dates)
Payment in full on the principal repayment date9)

Principal repayment date:

March 1, 2013

<Short-term loan from Mizuho Corporate Bank, Ltd. and The 77 Bank, Ltd.>
1) Total amount of loan:¥5,000 million
2)

Lender, amount of loan, amount of pre-payment, balance after the pre-payment of loan, start ofthe loan period and principal repayment date:LenderMizuho Corporate Bank, Ltd.
The 77 Bank, Ltd.
Amount of loan

¥4,000 million¥1,000 million

Amount of pre-payment¥4,000 million¥1,000 million¥0 million¥0 million

BalanceStart of the loan period

March 26, 2012

Principal repayment date

March 26, 2013

3)
4)

Interest rate:
Borrowing method:

5)Interest payment date:

0.33% (From October 26, 2012 to November 25, 2012)
Loan based on overdraft agreements concluded separately withrespective lendersUnsecured/non-guaranteed loan
26th of every month until the principal repayment date (includingthe principal repayment dates)

6)

Repayment of principal:

Payment in full on the principal repayment dates<Short-term loan from Shinkin Central Bank>
1) Start of the loan period:

March 26, 2012

2)

Amount of loan:¥2,000 million

3)

Amount of pre-payment:¥2,000 million

4)5)Balance after the pre-payment of loan:
Interest rate:¥0 million

6)

Borrowing method:

7)

Interest payment date:

8)

Repayment of principal:

0.33% (from October 26, 2012 to November 25, 2012)
Loan Agreement concluded on March 22, 2012
Unsecured/non-guaranteed loan
26th of every month until the principal repayment date(including the principal repayment dates)
Payment in full on the principal repayment date9)

Principal repayment date:

March 26, 2013

<Long-term loan from The Ashikaga Bank, Ltd. and The Joyo Bank, Ltd.>
1) Total amount of loan:¥2,000 million
2)

Lender, amount of loan, amount of pre-payment, balance after the pre-payment of loan, start ofthe loan period and principal repayment date:LenderThe Ashikaga Bank, Ltd.
The Joyo Bank, Ltd.
Amount of loan

¥1,000 million¥1,000 million

Amount of pre-payment¥1,000 million¥1,000 million¥0 million¥0 million

BalanceStart of the loan period

June 15, 2012

Principal repayment dateJune 16, 2014

3)
4)

Interest rate:
Borrowing method:

5)Interest payment date:

6)

Repayment of principal:

0.33% (From October 15, 2012 to November 14, 2012)
Loan Agreement concluded on June 13, 2012
Unsecured/non-guaranteed loan
15th of every month until the principal repayment date (includingthe principal repayment dates)
Payment in full on the principal repayment dates* There will be a settlement fee of approx. ¥41,095 upon this pre-payment.

2. Funds for pre-payment
Part of the proceeds from the investment unit issuance to be received on October 29, 2012
In addition to this prepayment, part of such proceeds will be appropriated for the scheduled payment ofshort-term loan of 1,000 million yen from The Sumitomo Trust & Banking Co., Ltd. due on November
1, 2012.

3. Balance of interest-bearing debts after the pre-payment of the loans (as of November 1, 2012)(Units: millions of yen)
Before pre-payment

After pre-payment

Increase/Decrease

Short-term loans

13,5000-13,500

Current portion of long-term loans

68,10068,100±0Long-term loans

179,150

177,150-2,000Total loans
Current portion of investment
corporation bonds
Investment corporation bonds(except for current portion)
Total investment corporation
bonds
Total interest-bearing debts

260,750

245,250-15,50000±045,00045,000±045,00045,000±0305,750

290,250-15,500

4. Others
Regarding the loan repayment risk, there is no important change to the “Investment risks” description
in the latest securities report submitted on June 25, 2012.

This notice is the English translation of the announcement in Japanese dated October 25, 2012 on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of this Englishtranslation.