0120AE2008-VWHO

APPRAISAL REPORT

Prepared for
Waka XXXXXX

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February 10, 2008

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Prepared by
Takashi Yamaguchi (Appraiser)
Value Workers, Inc.
20-1-303 Kitamachi, Shinjuku, Tokyo, 162-0834, Japan

Pursuant to your request, I have prepared a summary report of a complete
appraisal for the subject property. The attached report details the scope of work,
level of reporting,reporting definition of value,
value valuation methodology
methodology, and pertinent data
researched and analyzed in the development of this appraisal.

(Note)
The forecasts, projections, or operating estimates contained herein are based on
current market conditions. These forecasts are, therefore, subject to changes with
future conditions.

Certification

I certify
tif tot theth bestb t off my knowledgekl d andd beliefb li f that:
th t

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1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal impartial, and unbiased
professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of thisreport, and no personal interest with respect to the parties involved.
4. I have no bias with respect to the property that is the subject of this report or to theparties involved with this assignment.
5. My engagement in and compensation for this assignment were not contingent upondevelopingp g or reportingp
gp
predetermined results,, the amount of the value estimate,, ora conclusion favoring the client.
6. My analyses, opinions, and conclusions were developed, and this report has been
prepared in conformity with the US Valuation Standards (Uniform Standards ofProfessional Appraisal Practice).
7. I have the knowledge and experience to complete the assignment competently.
8 No one provided significant professional assistance to the person(s) signing this8.
report.

Signature:

Date of certification: February 10, 2008

Table of Contents

Ⅰ． Final Opinion, Definition of Value, Effective Date, etc.

Final Opinion of Value, Definition of Value.
Effective Date of Appraisal
Reasonable
bl Exposure Timei
History of Subject Property
Ⅱ． Scope of Work
Ⅲ． Identification of the Property
Ⅳ． Property Right appraised
Ⅴ． Owner on the Registryg y Book
Ⅵ． Date of Inspection and Report
Ⅶ． General Assumptions and Limiting Conditions
Ⅷ． Purpose and Intended Use of the Appraisal
Ⅸ． Intended User(s)Ⅹ． Valuation Process
1. General Factors
2. General Condition of Community
3. Location and Transportation
4. General Condition of Subject Neighborhood
5. General Condition of Subject Property, and Zoning
6. Highest and Best Use
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7.
Application of Appraisal Methods
A. Cost Approacha. Land Value(1) Market Approach(2) Income Approach (Land Residual Method)(3) Reconciliationb Reproductionb.
d i cost off theh subject
bj bbuilding
ildi
c. Reproduction cost of the subject property
d. Depreciation
B. Income Approach (Direct Capitalization Method)
C. Income Approach (DCF Method)
D. Reconciliation and Final Opinionof Valuep
Sheet-Ⅰ
Land Sale Comparables Analysis
Sheet-Ⅱ
Income Capitalization (Land Residual Procedure)
Sheet-Ⅲ
Income Capitalization (Direct Capitalization Method)
Sheet-Ⅳ
Income Capitalization (DCF Method)
Sheet-ⅤRent Comparables

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1.
2.
3
3.
4.

.... P. 01.... P. 01.... P. 01.... P. 01.... P. 01.... P. 02.... P. 03.... P. 05.... P. 05.... P. 07.... P. 07.... P. 08.... P. 08.... P. 09.... P. 09.... P. 11.... P. 13.... P. 13.... P. 14.... P. 15
P 17.... P.
.... P. 17.... P. 17.... P. 17.... P. 17.... P. 18.... P. 18.... P. 19.... P. 19.... P. 20.... P. 20.... P. 20.... P. 22.... P. 24.... P. 25.... P. 26.... P. 27

Kanto Area Map
City Map (Land Comparables)
City Map (Rent Comparables)
Residential Map
Aerial Photographs
Topography Map
bli Sectional
S i l Map
PublicRegistered Land Surveyed Map
Registered Building Drawings
Copy of Public Registry Book
Document of Building Confirmation
Photographs
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Appendices.. App.
App 01.. App. 02.. App. 03.. App. 04.. App. 05.. App. 06.. A
App. 007.. App. 08.. App. 09.. App. 10.. App. 11.. App.
pp 12

Ⅰ． Final Opinion, Definition of Value, Effective Date, etc.

1. Final Opinion of Value, Definition of Value.
< FinalFi l Opinion
O i i off ValueV l >JPY 49,300,000.-(In terms of cash)(Excluding consumption tax)

USD 428,174.-(USD1 = JPY115.14)

PLE(Date of the rate: Feb 1, 2008)

SA
M< Definition of Value >For the purpose of this report, market value is defined as:
The most probable price which a property should bring in a competitive
and open market, under all conditions requisite to a fair sale, the buyer andseller each acting prudently and knowledgeably, and assuming the price is
not affected by undue stimulus.
Implicit in this definition are the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated.
2 Both parties are well-informed or well-advised,2.
well-advised and acting in what they
consider their best interests.
3. A reasonable time is allowed for exposure in the open market.
4. Payment is made in terms of cash or in terms of financial arrangements
comparable thereto; and5. The price represents the normal consideration for the property sold
unaffected
ff t d byb speciali l or creative
ti financing
fii or sales
l concessionsi
grantedt dby anyone associated with the sale.

2. Effective Date of Appraisal：

February 1, 2008

3. Reasonable Exposure Time：

Around 6 months

4. History of Subject Property：

According to the public registry book:
Subject building was constructed on March 6, 1999. Category of subject

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land changed from farmland to building site on the same date.
According to the registry book, Waka XXXXXX bought the subject
property on April 23, 2003. According to her father, at that transaction, saleprice was JPY55,600,000.

Ⅱ Scope
Ⅱ．
S
off W
Work
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This appraisal is performed based on the following conditions.
1. I checked the location and area (sq.m.) of the subject property with the:Public Registry Book
Property Tax Notice
Public Sectional Map
Registered Land Surveyed Map; andRegistered Building Drawings.
2. I conducted inspection on the subject property (exterior & Interior).
3. I researched and analyzed the real estate market in the comparable areas.
pdata in this area.
4. I collected and examined a lot of recent sale comparable(Additional contents are included in each section of this report)

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Ⅲ． Identification of the Property

Address ： 1-2-3 GHY, DEF-city, Saitama-prefecture, Japan
1. Land<Legal<L l description>di ti >((sq.m.: square meter)t )Category ofArea (sq.m.)
Land(Registered Area)

Lot Number
1-2-3 GHY, DEF-city, Saitama(埼玉県DEF市GHY一丁目2番3)PLE

165.40Total

165.40In this appraisal, area of the land depends on:

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2. Building

Building site

<Legal description>

Location, House Number

1-2-3 GHY, DEF-city,(DEF市GHY一丁目2番地3)House Number: 1-2-3 GHY(sq.m.: square meter)
Structure, Category

Area (sq.m.)(Registered Area)

Steel framed 2 story building
for a shop and dwelling 1F
with a slate roof 2F

118.74126.30(家屋番号 GHY
(家屋番号:
GHY一丁目2番3)
丁目2番3)

Total 245.04

33. Description on the property tax notice(sq.m., JPY)
Land
Bldg.

Fixed property tax
Cit planningCityl i ttax
Fixed property tax
City planning tax

Area

Assessed value

165.4013,470,340

245.04

15,431,130

Tax base

Rate

Tax/year

2,245,056

1.4%

31,40044,490,112
490 112

0 3%
0.3%

13
400
13,40015,431,130

1.4%

216,000

15,431,130

0.3%

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28,901,470

4

307,000

Ⅳ． Property Right appraisedLand:
Ownership
Building:
Ownership (leased fee interest)[Occupant: Owner's parents]

Ⅴ． Owner on the Registry Book

111-111 GHR, DEF, Saitama

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As of February 1, 2008
Land:
Waka XXXXXX
Building:
Waka XXXXXX

111-111 GHR, DEF, Saitama(Note:)In Japan, registration of a real property is the setting up requirement (race type).
The registration does not have a public-reliance effect.

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Rights of possession of subject property
Written lease agreements do not exist.
In this appraisal, following rights were presumed.

< 1F (shop) >I heard the following information from Tadashi YYYYYY (father of Waka
XXXXXX), and, I identified his right as the normal lease.
* When he and his wife opened the restaurant in 2003, rent was set at
JPY300,000 per a month according to the advice of a real estate agent.
Aft that,th t market
k t condition
diti deteriorated
d t i t d sharply,h l andd many shops
hclosed.
l d* After
Rent was lowered to 200,000 per a month.
* Now, they pay JPY160,000 per a month.
* He had not paid any nonrefundable deposit or refundable deposit.
It is hard to identify their rights as the Temporary Tenancy, since they paid
JPY26,000,000 for repair, installations, fixtures, etc.
It is hard to identify their rights as the Term Building Lease, because thelease agreement is not written in a notarial deed.
It is hard to identify their rights as the Loan for Use, since the rent isthought to be the market rent. It exceeds the property tax level.
Registered 1F area includes a stair area that is a devaluing factor of the rent.

5Management and repair is owed to the lessee.
lessee That is also a devaluing factorof the rent.
Indicated Market Rent:
See Sheet-Ⅴ -1..
JPY208,450 /month ..
Modified Indicated Rent (after M. fee & R. cost deduction):
See Sheet-Ⅴ -1..
JPY191,774 /month ..

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< 2F (dwelling) >I heard the following information from Tadashi YYYYYY (father of Waka
XXXXXX), and, I identified his/her right as the loan for use ("ShiyouTaishaku" in Japanese).
* When he and his wife opened the restaurant, another shopkeeper opposed
them. Then he needed to watch the building. So he started to use the 2F.
* He agreed to move out of the 2F, when some severe troubles occur between
lessor and lessee.
Entrance of the 2F is independent from the 1F.
Registered 2F area includes a stair area, a corridor area, and a veranda area.
Theyy are devaluingg factors of the rent.
Indicated Market Rent:
See Sheet-Ⅴ -2..
JPY129,245 /month ..
Modified Indicated Rent (after M. fee & R. cost deduction):
See Sheet-Ⅴ -2..
JPY118,905 /month ..
< Tenant Fixtures,
Fixtures etc.
etc >I heard the following information from Tadashi YYYYYY (father of Waka
XXXXXX). I identified the tenant fixtures as trade fixtures. They are theirs.
* When he and his wife opened the restaurant, they paid JPY26,000,000 for
repair, installations, fixtures, etc.
* In Japan, common format of lease agreement includes tenant fixture clause.
It usuallyll says thatth t whenh lesseelopens ththe shop,hllesseemay pay for
f thethfixtures, and when the lease expires, lessee must remove them. He agreed
to it.

(Notes)In Japan, lease contract is valid without writing, and court protect it. In Japan,
even without the registration of the lease contract, possession of the building isregarded as the setting up requirement (race type).
In Japan, when lessor offers the termination of lease, justifiable reason isneeded. Justifiable reason is considerably high hurdle. In usual, termination by
the lessor is difficult. It is fact of the matter that case laws had created.

6In order to complement the justifiable reason,
reason compensation for tenant
removal is needed. In such case, even if lessee abandoned the right to demand
for the lessor to buy the tenant fixtures on the lease agreement, lessor usuallyneeds to pay it.

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(Notes)< TemporaryTttenancy >Article 40 of the Land and Building Lease Law
Japanese Land and Building Lease Law protects lessee backed by its history.
But, for obvious temporal lease, lessee protection is not needed (e.g. leasing fora temporal event). So, the Land and Building Lease Law is not applied to the
Temporary tenancy.
< Term building lease ("Teiki-Tatemono-Chintaishaku" in Japanese) >Article 38 of the Land and Building Lease Law
In this lease, the beginning and end of the lease must be clearly specified. At
the specified expiration date, lease contract definitely ends. Renewal of thecontract is not allowed. Lease agreement of the term building lease must be
written in a notarial deed.
< Loan for use ("Shiyou-Taishaku" in Japanese) >Article 593 of the Civil CodeA loan for use shall become effective when one of the parties receives adefined thing from the other party by promising that he/she will return the thing
after he/she has gratuitously made use of and taken the profits of the same.
The borrower shall bear the ordinarily necessary costs of borrowed things.
thingsLand and Building Lease Law is not applied to the loan for use.
If the parties have not specified the timing of the return and the purposes of
the using and taking profits, the lender may demand the return of the borrowed
things at any time.

Ⅵ． Date of Inspection and ReportFebruary 1, 2008
February 10, 2008

(Date of Inspection)(Date of Report)

Ⅶ． General Assumptions and Limiting Conditions

This appraisal has been developed under the following general assumptions andlimiting conditions:

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1 Appraisal of leased building and its site.
1.
site
Subject land and building are occupied and used by the lessee. This appraisal
is developed under the condition that the properties are free of any rights otherthan ownership, lease, and Loan for use.
2. The area (size) of the land and building depend on the Public Registry Book.
3. The property is appraised free and clear of any or all liens or encumbrances(unless otherwise stated).
stated)4. The forecasts, projections, or operating estimates contained herein are based on
current market conditions. These forecasts are, therefore, subject to changes
with future conditions.
5. Physical test for checking hazardous materials, which may or may not bepresent on the properties, has not been performed. The value estimated in thisreport is predicated on the assumption that no hazardous materials are on or in
the properties that would cause a loss in value. No responsibility is assumed forsuch conditions or for any expertise or engineering knowledge required to
discover them.

SAM

6. Any unknown conditions existing at the time of inspection could alter thevalue. No responsibilitypy is assumed for latent defects of any
y nature which mayyaffect value, nor for any expertise required to disclose such conditions.
7. Appraiser who performed this appraisal has no present or prospective interestin the subject property. Compensation for the appraiser is not contingent on thereporting of a predetermined value or direction in value that favors the cause of
the client. This appraisal is performed in a manner that is independent,
impartial and objective.

Ⅷ． Purpose and Intended Use of the Appraisal

Purpose and Intended Use of this appraisal is to assist the client in decisionmaking concerning the sale between relatives.
relatives (Tax effect considerations are not

Ⅸ． Intended User(s)This report is intended for use only by the sale related parties.

Ⅹ． Valuation Process

1. General Factors

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< Economic conditions >In Japan, poor economic conditions had continued about 1.5 decades since thecollapse of the bubble economy (from 1991). Government had introduced various
anti-deflation measures. Bank of Japan had continued ultra-low-interest rate
policy. But, as a whole, Japanese economy had been under severe condition for along time.
time

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But recently flattening-off trend is becoming clearer. Stock price had hit thebottom in 2003 and then it turned up. Corporate activities also turned up.
Afterwards, US subprime loan problem came to light in the latter half of 2007,
and its influence on the world economy is concerned, nowadays.
According to the “Cabinet Office Economy Watchers Survey” in January 2008,
on the whole, the economy is recovering moderately.

SAM< Land price trend >Also, in real estate dealing market, after the collapse of the bubble economy,
demand had diminished under the sluggish economy. Although the transition ofland pricediffers with areas,, decline trend continued for over ten yyears.
p
But recently flattening-off trend is becoming clear in the metropolitan areas.
And there seems Mini-bubble-phenomenon in some particular areas.
According to the public survey of land price as of July 1, 2007, national averageof residential land price declined by 0.7% per year, and commercial land pricerose by 1.0% per year. The average land price seems to be ending its declinationof 16 consecutive years.
Main cause of it is that the three metropolitan areas (Tokyo, Osaka, andNagoya) where demands for condominiums and offices are steady have pushed
up the average land price. Average land price of the commercial area of threeareas rose by 10.4% per year. In Tokyo it rose by 17.2%, and in Osaka it rose by
10.4%. The land price began to rise in local core cities such as Sendai andFukuoka Land price deflation after the collapse of the bubble economy seems toFukuoka.
be finished in these major areas.
On the other hand, in local areas, land price declined both in the commercial
areas and residential areas, 15 years in a row. Decline trend is continuing still inthese areas. Diversity became larger between measure areas and local areas.
One of the main factors of the land pprice risingareas isg in the three metropolitanpthe huge investment money. Investment money concentrated on the real estatesthat would generate yield and gain. On the other hand, in local areas where
populations are decreasing, yields could not be expected, so the investment
money also could not be expected.

9< Land price in this area >In this area, large decline of the land price had been continued after the collapseof the bubble economy.
In recent years, decline of land price enhanced people to buy the dwellings incentral metropolitan area. Subject neighborhood is located in an area that is
relatively far from central metropolitan area. Demands for this area decreased.
In
I addition,
dditi
i thisinthi area, populationl ti seems tot havehreachedh d theth ceiling,ili
andd agingisociety is progressing rapidly.
In this area, market condition is deteriorating. There are many vacant shops thatare closing their shutters.
< Transition of Published land price near the subject property >
index

1998

400,000

100.0

1999

380,000

95.0

2000

335,000

83.8

2001

278,000

69.5

2002

225,000

56.3

2003

190,000

47.5

2004

165,000

41.3

2005

147,000

36.8

2006

138,000

34.5

2007

138,000

34.5

Transition of land pricePLE

yen/sq.m

140.0
120.0
100.0
80.0
60.0
40.0

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year

20.0
0.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

< Market trend of real estate investment such as J-REIT >J-REIT (Japan Real Estate Investment Trust) was founded in 2001. New listing
increased rapidly from 2005 to 2006, and the market price rose remarkably fromthe latter half of 2006 to the first half of 2007.
2007
However, the US subprime loan problem came to light in June, 2007. The
worldwide financial crisis occurred and the market changed into decline.
< Average Cap-Rates of newly purchased J-REIT properties >The average Cap-Rates of Direct Capitalization Method that were used in thevaluations of J-REIT's newly purchased properties in the past 3 years in Tokyo
23 wards are as follows.
<Residential Property>
Years old

Story

Numberpurchased

Sum of thepurchase priceSum of theappraisal value

Average
Cap-Rates

under 10 years

under 20 story437¥779.9 billion¥781.9 billion

4.93%

10

10 years or more

under 20 story

125¥97.8 billion¥99.2 billion

5.41%

under 10 years

20 story or more

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¥99.6 billion¥100.1 billion

4.63%

10 years or more 20 story or more

4¥35.8 billion¥35.9 billion

4.63%< Condominium market trend >A
According
di tto th
the N
National
ti l R
Reall E
Estatet t IInformationfti Center,C t ththe average unit
it priceiof the new condominiums in Tokyo metropolitan area rose by 13.8% per year in
2007.
In Tokyo 23 wards it rose by 22.50%. In Tokyo Santama Area it rose by 11.6%.
In Kanagawa Prefecture, it rose by 8.4%. In Saitama Prefecture, it rose by 9.3%.
In Chiba Prefecture, it rose by 14.7%. In Ibaraki Prefecture, it rose by 11.5%.

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2. General Condition of CommunitySAM< History of EFG City >EFG City is located in the area 40km from Tokyo central area, 15km fromNMKJ,, and 20km from CHKJ City.
y Total area is 103.59 sq.km.
qThis city exists on the HJHG Tableland. It is an undulating area placed in thesouth of the Lake IOPOKL. The ILKOKL River and the DSKOKL River run
through this city into Lake IOPOKL.
In middle ages, this city was a castle town. After the Meiji Restoration, Armybase was settled. After the World War II, this city had been developing as a
bedroom town of the Tokyo metropolitan area.
< Population >EFG City was born in 1954. At that time, it had the population of 35,196 andthe number of household of 6,838.
In 1965 to 1975, the population increased by 8% to 9% per year. After then,iincreasing
i ratet declined,d li d andd in
i 2005 it decreased
d
d for
f the
th first
fi t time.
ti
P
Populationl ti off
aged people is increasing.
Year

Population

Household65 y.o. or more

1990/3/31

286,140

87,926

7.5%

1995/3/31

325,208

106,748

11.3%

2000/3/31

347,096

121,05413.7%

2005/3/31

350,236

130,306

17.5%

2007/3/31

350,252

134,504

19.8%< Transportation >11

KOPL Line runs through the north part of this city and it has 5 stations. JR Sobu
Line runs through the central part of this city and it has EFG Station. UIOPKLLine connects to the KOPL Line at the UIOPKL Station and it has 5 stations.
KOPL Bus Line, etc. run throughout this city. HKLKJ-KDFS Expressway runs
through the south part of this city and EFG IC is located.

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E< Roads >In the north part of this city, National road 296 runs through this city. In thesouth part of this city, HKLKJ-KDFS Expressway and National road 51 run
through this city.
100% of the national roads and prefectural roads are paved. There are 3,948 city
roads in the city. 71.7% of them are paved.

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M< Infrastructure >(March 31, 2003)
Public water service: 329,726 users. (95%)
Public sewage
g service: 295,466,
users. (89%)()
City gas service:
92,146 users. (27%)< Commercial Base >Major shopping areas are located around the EFG station, QWE station, and
YUT station
station. Around 80% of shops are located in these 3 areas.
areas
There are 3 big shopping centers in this city; Sky Plaza (UIOPKL area), Lakepia
YUT (YUT area), and Ito-Yokado (YUT area). Lakepia YUT exists close to thesubject property.
< Trading area and Customers >According
A
di
to
t th
the C
Consumer Trend
T d Research,R
h thisthi city
it is
i an independenti dd t
commercial area in which over 60% of consumption is bought within this area.
In this city, gross sale amount was JPY131billion per year in 2002. In YUT
area, it was JPY22billion.

< History of Land Development in this area >The YUT station was situated at far northeast from current station in 1970. At
that time, current station area was rice fields, vegetable fields, and woods.
Afterwards, under the following land readjustment projects, current appearanceof the town was created.
Area
Project name
Term

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ABCD 11,3,5-chome
3 5-chome
ABCD 2,4,6-chome

YUT-station land readjustment project
YUT-south land readjustment project

1971 to 1982
1972 to 1983

3. Location and Transportation
NearbyNb railroad
il d station:t ti
YUT Station on the KOPL Line
Direction and distance (road line) from the nearby railroad station:
Northwest About
350 m
4. General Condition of Subject Neighborhood

PLE(1) Range
I identified the subject neighborhood in the range below (within the 2 & 3
block, starting from the subject property).
About
About

100 m
200 m

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Northeast
Southwest(2) Characteristics of the Subject Neighborhood< Street condition >Paved public road of 6m width is considered to be standard in this area, andarrangement and continuity of the streets are normal.
< Access >A
Accesstto ththe nearbyb railroad
il d station:t ti
Access to the nearby shopping center:
Access to the public offices:

Nomall
N
Good
Nomal

< Environmental conditions >Subject neighborhood is a commercial area where shops are located along
the street.
< Standard use of land in the area>
Width of the road:
6m width public road
Standard lot size:
Around 200 square meters

13Standard use:

Site of a shop

< Future trend >Few factors are observed which change the subject neighborhood in the near
future.
5 General5.
Gl Condition
C diti off Subject
S bj t Property,Pt andd Zoning
Z i
The property-specific value factors of subject land are as follows.

Pavement Classification
Paved
Public road
Paved
Private roadSAM(2) Lot conditions< Topography >Level< Shape >Close to square< Dimensions >Around18 m

PLE(1) Street conditions< Lot classification >Corner lot< Condition of the streets >Direction
Width
Northeast around 6.0m
Northwest around 6.0m

X

Ground height
Equal level
Equal level

18 m(3) Lifeline< Electric power service >< Public water service >< Public
P bli sewer servicei >< City gas service >ServedServedS
ServeddServed (LPG also served)(4) Zoning Districts< Designation as the City Planning Area >Designated.. Located in the: Urbanization Area
The City Planning Area is the place to which the city plan is designatedand the City Planning Law and other related laws are applied. City
planning can in principle only be carried out in a City Planning Area. The
City Planning Area, whose purpose is to regulate city development andprevent urban sprawl, is divided into 2 areas: the Urbanization Area and the14Urbanization Control Area. The City Planning Areas that have not been
divided are called the Undivided City Planning Area.

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< Local Zoning Regulations >Range: Whole subject land
Basic Zoning:
The subject property is located in an area designated as the:C
Commercial
i l Zone
Z
This zone is targeted at the commercial areas in city-center, sub-citycenter, and community central areas, etc. This zone is established topromote commercial environment for commercial and business services,
etc.
<Building Restriction>
Maximum Building Coverage Ratio:
80 %Maximum Floor Area Ratio:
400 % ... ** Restriction by the front street width: Applied: MFAR=360%(Article 52, 2nd clause of the Building Standards Law)
Minimum lot area: Not designatedComplementarypy Zoning:g
The subject property is located in an area designated as the:Fire Zone
Hight Zone is not designated.

(5) Present use of the land
Site of a shop (Spanish restaurant) & dwelling(6) Subject Building< Completion of construction >( 9.0 years old )March 6, 1999
< Grade of materials and construction >It li characterized
Italianht i d building
b ildi< Present use >Shop (Spanish restaurant) & dwelling< Maintenance and management >Normal< Degree of depreciation >Normal15

6. Highest and Best Use

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< Highest and Best Use of the Land as though Vacant >thinkk the
I thi
th Hi
Highesth t andd BestB t UseU off theth subject
bj t landl d as ththoughh vacantt is
i thethuse as a site of the shop & dwelling, same as the present use.
< Highest and Best Use of the Subject Property as Improved >I think the Highest and Best Use of the subject property as improved is theuse as a shop & dwelling, same as the present use.

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7.

Application of Appraisal Methods

Cost Approacha. Land ValueI applied Market Approach and Income Approach to estimate the value of
subject land.
(Note)
In built-up areas, we can hardly apply Cost Approach for lands. It is common
also in other countries.

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M

A.

PL
E

In this appraisal, I applied Cost Approach and Income Approach to estimate thevalue of subject property.
Market Approach is omitted because the subject property is unique among thecomparables and not easy to compare in a whole property concept.
concept(Note)In Japan we can hardly apply Direct Sales Comparison Method for built-up
properties, except for condo-units, etc. This method is thought to be not so reliable
in Japanese real estate business according to the short actual service life ofbuildings, the high price of land, and the highly-detailed zoning regulations.

(1) Market Approach
I collected a lot of comparables of land transaction in the subject andcomparable neighborhoods. Then, I compared the subject land with thecomparables from the viewpoint of market-specific value factors and propertyspecific value factors.
And I estimated the “Value indicated by the Market Approach” for:..
S Sheet-Ⅰ
See
125,000000 per sq.m.
Sh t Ⅰ.. JPY 125(2) Income Approach (Land Residual Method)
On the assumption of construction of an office building for rent, land value
was indicated by the land residual method.
p
All expense
was deducted from all income which would be ggenerated from theassumed improved property, and Net Operating Income (NOI) was indicated.
Then NOI that belongs to the building was deducted from it, and NOI thatbelongs to the land was indicated. NOI that belongs to the land was divided byappropriate capitalization rate.
And I estimated the "Value indicated by the Income Approach" for:17

185,000000 per sqsq.m.
m.. JPY 185..

See Sheet-Ⅱ(3) Reconciliation
Diversity resulted among indicated values.
Sales Comparison Method was applied with comparative study of many recent
comparables. Various comparisons were performed suitably by checking thevalue factors.
factors They are credible and reliable.
reliable So,
So the indicated value reflects thereality of the market at the effective date of the appraisal.
The Value indicated by the Income Capitalization Method is the total present
value of net return expected from the subject land in the future. It isconsiderably difficult to forecast the future NOI. However, it reflects theincome-producing capacity in which the essence of the economic value isd Th
fiit must bbe esteemedd as a verification
ifi i means off value.
lcreated.
Therefore,

SA
M

PL
E

I reexamined each stages of appraisal process objectively and critically, andreconsidered the feature of the methods and data.
Gov. published land price was also taken into account. And I estimated thevalue of subject land to be:
Unit Value
Land Area
Land Value
X
165.40 sq.m. ≒ JPY 20,700,000... 125,000 per sq.m.

b. Reproduction cost of the subject building
Materials of the building, the grade of construction and the trend of thebuilding costs were examined,examined and I estimated the subject building
reproduction cost to be:
Japanese real estate market is now under the condition that is not easily
foreseeable due to the economic uncertainty. In addition, as a result of therevision of the Building Standards Law in June 2007, building confirmation
procedures stagnated.
Construction-cost-hike came to light in the latter half of 2007. Contractors’
estimates soared by 10% to 20% until the end of 2007. One major factor is theprice-hike of construction materials such as steel according to the increased
demand in emerging economies such as China. Another major factor is thestagnated building confirmation. Since the number of constructions decreased
sharply in a short term, contractors started to raise their charge to avoid theirfifinanciali l ttroubles.
bl
In this appraisal, although depending on the standard cost, cost hike is also
taken into account, I estimated the reproduction cost as follows.
Unit Cost
Total Floor Area
Reproduction Cost
X
245.04 sq.m. ≒ JPY 40,700,000... 166,000 per sq.m.

18

c. Reproduction cost of the subject property
The land value indicated by (a.) were added to the reproduction cost of thesubject building indicated by (b.), and I estimated the Reproduction cost of thesubject property to be:
20,700,000.40,700,000...
+＝ JPY 61,400,000.-<Calculation p
process>
Land ..

PL
E

d. Depreciation
Depreciated value (based on physical, functional, economical factor, which isestimated by the methods based on economic life and observation) was
deducted from the reconstruction cost of the subject property, and I estimatedthe "Value indicated by the Cost Approach" to be…
.. JPY 49,300,000.(Items)
Land value ..
JPY 20,700,000.Building value .. JPY 28,600,000.-

SAM

Devaluation according to the unsuitable use: 0% is estimated
20,700,000
X 100% ≒ JPY 20,700,000.Building .. Straight line method
10% is estimatedSalvage value of frame:
Salvage value of installations:
10% is estimatedskelton: 40,700,000
X 0.90 X ( 1 - 9.0 / 30 ) × 90%
X 10% ≒ JPY 26,700,000.+ 36,630,000
X 0.10 X ( 1 - 9.0 / 15 ) × 90%
install.: 40,700,000
X 10% ≒ JPY 1,900,000.+ 4,070,000
subtatal JPY 28,600,000.D l ti based
Devaluationb d on observation:bti
0% iis estimatedti t dX
skelton: 26,700,000
100% ≒ JPY 26,700,000.install.: 1,900,000
X
100% ≒ JPY 1,900,000.subtatal JPY 28,600,000.Marketability as a combined property
0% is estimatedDevaluation according to the combination:
Land ..
20,700,000
X
100% ≒ JPY 20,700,000.Building .. 28,600,000
X
100% ≒ JPY 28,600,000.Total
JPY 49,300,000.-

19

Income Approach (Direct Capitalization Method)All expense was deducted from all income which would be generated from thesubject property, and the Net Operating Income (NOI) was indicated. Then the
NOI was capitalized by the appropriate capitalization rate.
And I estimated the "Value indicated by the Income Approach" to be…
..
See Sheet-Ⅲ.. JPY 49,700,000.-C.

Income Approach (DCF Method)
The future income, expense, capital expenditures, etc. were analyzed. And thefuture cash flow which subject property would generate was indicated. Then the
Net Cash flow was discounted to the present value by the appropriate discountrate.
And I estimated the "Value indicated by the Income Approach" to be…
..
See Sheet-Ⅳ.. JPY 48,400,000.-

D.

Reconciliation and Final Opinionpof Value

PL
E

B
B.

SA
M

As above mentioned,
Value indicated by Cost Approach:
Value indicated by Income Approach (Direct):
Value indicated by Income Approach (DCF):

JPY 49,300,000.JPY 49,700,000.JPY 48,400,000.-

Diversity resulted among indicated values.
Cost Approach was applied with comparative study of many recent land sales.
Various comparisons were performed suitably by checking the value factors.
They are credible and reliable. And building value was indicated by suitablecalculation. So, the indicated value has reliability. This indicated value isrespected in sales of owner occupied properties in Japan.
Japan
Income Approach indicates the total present value of net return expected fromthe subject property in the future. It is considerably difficult to forecast the future
NOI or Net cash flow. However, it reflects the income-producing capacity inwhich the essence of the economic value is created. This indicated value isrespected in sales of leased fee properties in Japan. Therefore, it must betd
I reexamined each stages of appraisal process objectively and critically, andreconsidered the feature of the methods and data. And, I estimated the value ofthe subject property to be:.. JPY 49,300,000.-

20

SA
M

PL
E

Values were divided in proportion to the value indicated by Cost Approach.
ApproachLand value ..
49,300,000
X 20.7
÷ 49.3≒ 20,700,000
÷ 49.3
Building value .. 49,300,000
X 28.6≒ 28,600,000(Excluding consumption tax)

21

Land Sale Comparables Analysis

Sale condit Time adjus Standard
Market Adjusted sale price Adjusted price Property
Indicated
Land valuemean
factorsions (B) tment (C) izing(D) factors (E) A×B×C×D×E
category building site
100
97
100
100
361.00sq.m.
WES 3-chome,
180,055
144,342
size
100
100
100
121
JPY/sq.m.
JPY/sq.m.
Sakura-shi date Jan 26,2006①②
category building site
100
98
100
100
110
WES 3-chome,162.76sq.m.
129,024
106,255
125,000
114,000
size
100
100
100
119
100
JPY/sq.m.
JPY/sq.m.
JPY/sq.m.
JPY/sq.m.
Sakura-shi date Feb 18,2006③④⑪
category building site
100
99
100
100
WES 3-chome,268.00sq.m.
106,045
91,291
size
100
100
100
115
JPY/sq.m.
JPY/sq.m.
Sakura-shi date May 17,2006⑤⑥
Gv. Published Land Price category building site
100
100
100
110
－
104,000
WES 1-chome,
144.00sq.m.
138,000
－
size
－
100
100
146
100
JPY/sq.m.
JPY/sq.m.
JPY/sq.m.
Jul 01,2007
Sakura-shi date⑦⑧⑪
category
100
100
100
110
－
－
0
size
－
100
100
100
100
JPY/sq.m.
JPY/sq.m.
JPY/sq.m.
Jul 01,2007
⑪
date
⑨
⑩
Property-specific value factors and standardizing (D)Market-specific value factors (E)Memoenvirontotal
streetaccessregulation
site
other
streetaccess environ- regulation other
total
ment
ment
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
101
120
100
100
121
①
②
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
104
95
120
100
100
119
③
④
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
115
100
100
115
⑤
⑥
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
104
100
140
100
100
146
⑦
⑧
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
⑨
⑩
100
100
100
100
110
100
110
Memo
100
100
100
100
100
100
100
⑪

C
α
β

A
P.22
B
C
α
β

Time adjastment

July 1, 2005
July 1, 2006
July 1, 2007～～～

June 30, 2006
June 30, 2007
February 1, 2008

- 6.1%+ 0.0%+ 0.0%

SheetⅠ- 1

Sub.L.

F
a
c
t
o
r
s

PL
E

B

Sale price
(A)

M

A

Category, size, date

SA

Location

C
o
m
p
a
r
i
s
o
n

SheetⅠ- 1

Value Factors

SheetⅠ- 2

Comparable Ａ Comparable Ｂ Comparable Ｃ Published α Published β Subject Land
Arrangement, Continuity
Pavement
Other
Station, Bus stop
Shopping center, City office
Access
Other
Pollution, Noise
Environment Residential, Commercial
Other
Maximum floor area ratio
Administration Regulation factors
Other
Corner lot, etc.
Shape
Size
Site
Ground height

Memoranda

F
a
c
t
o
r
s

Other

M

P
r
o
p
e
r
t
y

PL
E

Street

Other

M
a
r
k
e
t

Other

+1

- 5

+ 20

+ 20

+ 15

corner lot

+4

+ 40

SheetⅠ- 2

F
a
c
t
o
r
s

+4

SA

P.23

Arrangement, Continuity
Pavement
Other
Station, Bus stop
Shopping center, City office
Access
Other
Pollution, Noise
Environment Living Env., Commercial Env.
Other
Maximum floor area ratio
Administration Regulation factors
Other

Street+ 10

Income Capitalization (Land Residual Procedure)

P.24⑤ Charges for
Common area
⑥ Total（①～⑤）
3. Interest Rates

165.40 ㎡

Steel framed shop & dwelling

Structure

Total

390.00 ㎡
JPY 63,300,000.-

PL
E

95.0%

JPY 2,334,000
JPY 720,000
4. Calculation of Expense
Calculation Process
Calculation Process
Items
JPY 7,750,931 ×
0.05
JPY 387,547① Cost of repair
JPY 629,000 ×
12months
JPY 7,548,000 ×
JPY 226,440
0.03② Management fee
JPY 44,800 Actual
Land
3.0%
JPY 2,334,000 ×③ P. TaxJPY 63,300,000 × 0.5 × 0.017
JPY 538,000 Estimate
Bldg
JPY 63,300
6yearsJPY 63,300,000 ×
3.0%
0.001
④ Insurance(
Annual Amortization)
JPY 0
JPY 720,000 × 0.184598⑤ C-loss-A.
JPY 7,750,931 × 1 ／ 24
JPY 322,955⑥ Vacancy loss
JPY 9,000 ×0
× 12months
JPY 63,300
JPY 63,300,000 ×
0.001⑦ Replacement-A.
JPY 0⑧ Other expense
JPY 0⑨ Other expense
Unit price / Site
JPY 9,954/㎡⑩ TotalJPY 1,646,342（①～⑨）
21.2 ％
Expense Ratio

370.50㎡

JPY 0
JPY 0
JPY 7,750,931

ａ ： Frame（F.Value／B.Value）
ｂ ： Installations（I.Value／B.Value）

Available Area

Memo
In this sheet, new highest and best use building is assumed tobe constructed.

JPY 132,911

ｒ ： Basic Rate

165.40 ㎡

Site Area

Building ValueJPY 70,020④ Parking lot fees

NR-Deposit
JPY 0
JPY 360,000
JPY 360,000

Building Area

JPY 7,548,000② Interest on
Refundable deposit③ Interest on
N-refundable deposit

R-Deposit
JPY 1,614,000
JPY 360,000
JPY 360,000

Sheet-Ⅱ

JPY 629,000

M① RentRentable Area
Unit Rent％
Rent / Month95.0%
123.50㎡ JPY 2,175/㎡ JPY 269,000
95.0%
123.50㎡ JPY 1,458/㎡ JPY 180,000
123.50㎡ JPY 1,458/㎡ JPY 180,000
95.0%

SA

1. Conditions of Lease
Floor
Total Area
1F
130.00㎡C2F
130.00㎡o3F
130.00㎡
n
4F
d
i
5F
t
6F
i
7F
o
8F
n
9F
s
B1F
Sum
390.00㎡
2. Calculation of Income
Items

5.5 %

ｇ ： Growth Rate

0.5 %

80 %

na ： Economic Life (Frame)

30.0 year

20 %nb ： Economic Life (Install.)

15.0 yearm ： Construction term

0.5 year

5. NOI (Building)
Items① Building
Initial Investment② PI-increasing
Amortization rate
③ Building
NOI （①×②）

Building Value

Calculation Process
JPY 161,850/㎡ ×
390.00 ㎡
JPY 63,300,000
× （ 1 + 0.003 ）Frame
Installations
0.0714850
0.065191 × 80 % ＋ 0.096661 × 20 %JPY 4,525,001

6. Value indicated by Income Approach
NOI (Income - Expense)
NOI (Building)
NOI (Land)(A) - (B)
0.96895
NOI (Land)(C
on account of construction term .. (rate)

=
=
=
＝

JPY 6,104,589.JPY 4,525,001.JPY 1,579,588.JPY 1,530,542.-

Land Value:

(D)

÷

5.0 %
（ r-g）

JPY 30,600,000.-≒（

JPY 185,000/㎡ ）Sheet-Ⅱ

(A)
(B)
(C)
(D)

Income Capitalization (Direct Capitalization Method)

Sheet-Ⅲ

Cost of Equity

11.5 %

Cost of Debt （long term）

4.0%

Weighted Average
Cost of Capital

6.3

%

SA

P.25

M

PL
E

1. Conditions of Lease
Floor
Total Area
Rentable Area
Unit Rent
R-Deposit％
Rent / Month C-Common Area
165.40 ㎡ Available Area
165.40 ㎡
Site Area
1F
88.8%
105.40㎡
118.74㎡
JPY
1,978/㎡
JPY
0
JPY 0
JPY
208,450
C
2F
97.50㎡ JPY 1,326/㎡ JPY 129,245
126.30㎡ 77.2%
JPY 0
JPY 0
o
Steel framed shop & dwelling
Structure
3F
n
4F
d
Total
245.04 ㎡
Building Area
i
5F
t
6F
Reconstruction Cost
JPY 40,700,000.i
7F
o
Memo
8F
n
9F
s
B1F
JPY 0
JPY 0
Sum
245.04㎡ 82.8%
202.90㎡
JPY 337,695
3. Calculation of Expenses
2. Calculation of Income
Items
Items
Calculation Process
Calculation Process
JPY 121,570
JPY 4,052,340 ×
0.03① M/Management① Contract
12months
JPY 4,052,340
JPY 337,695 ×
JPY 0② W/Other utilities/Market rents
JPY 202,617
0.05
JPY 4,052,340 ×② Charges for③ Cost of repair
JPY 0 ×12months
JPY 0
JPY 0
④ P.M.fee
Common area
③ W/S/E
JPY 0⑤ L-commissions
JPY 0/Other utilities
JPY 44,800
Actual due
Land
JPY 262,200⑥ P. Tax
Bldg
Actual due④ Parking lot fees
JPY 00
JPY 40,000 ×× 12 ヶ月
JPY 0
D.A.
Actual due⑦ Insurance
JPY 0
0.001
JPY 40,700 JPY 40,700,000 ×⑤ Other income
JPY 0
JPY 0
JPY 0
⑧ Other expenses⑥ Vacancy-JPY 168,848
JPY 4,052,340 × 1 ／ 24
JPY 0
/Collection loss
Operating expenses
Operating income
JPY 671,887
JPY 3,883,492
（①～⑥）
（①～⑥）
4. WACC
Weight of Equity

30 %Risk-free rate

1.5%

Weight of Debt

70 %Real estate premium

3.5%

Other risks

6.5%

Operating expense ratio:

Cost of Equity

17.3 ％

11.5 %

5. Net Operation Cash Flow
Net Operating Income
Interest on R-deposit
4.0%
Levelled Capital Expenditure
Net Operating Cash Flow

＝
＝
＝
＝

JPY 3,211,605
JPY 0
JPY 81,047
JPY 3,130,558

Indicated Value:

(D)

÷

6.3 %

≒

JPY 49,700,000.-

Sheet-Ⅲ

(A)
(B)
(C)
(D)

Income Capitalization (DCF Method)

Sheet-Ⅳ（JPY）

CategoryYear

1st year

2nd year

3rd year

4th year

5th year

6th year

7th year

8th year

9th year

10th year

10th year

IncomeContract/Market rents

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

4,052,340

Charges for Common area

0

0

0

0

0

0

0

0

0

0

0

W/S/E/ Other utilities

0

0

0

0

0

0

0

0

0

0

0

Parking lot fees

0

0

0

0

0

0

0

0

0

0

0

Other income

0

0

0

0

0

0

0

0

0

0

0

-168,848-168,848-168,848-168,848-168,848-168,848-168,848

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

3,883,492

Maintenance/Management

121,570

121,570

121,570

121,570

121,570

121,570

121,570

121,570

121,570

121,570

121,570

W/S/E/ Other utilities

0

0

0

0

0

0

0

0

0

0

0

Cost of repair

202,617

202,617

202,617

202,617

202,617

202,617

202,617

202,617

202,617

202,617

202,617

Property management fee

0

0

0

0

0

0

0

0

0

0

0

0

-168,848-168,848-168,848-168,848

PL
E

Vacancy/Collection loss
Total operating income
Expense

0

0

0

0

0

0

0

0

0

0

44,80044,80044,80044,80044,80044,80044,80044,80044,80044,800Property tax for Bldg

262,200

262,200

262,200

262,200

262,200

262,200

262,200

262,200

262,200

262,200

262,200

Property tax for D.A.

0

0

0

0

0

0

0

0

0

0

0

Insurance

40,70040,70040,70040,70040,70040,70040,70040,70040,70040,70040,700

Other expenses

M044,800

0

0

0

0

0

0

0

0

0

0

0

Total operating expenses

0671,887

671,887

671,887

671,887

671,887

671,887

671,887

671,887

671,887

671,887

671,887

Net operating income

03,211,605

3,211,605

3,211,605

3,211,605

3,211,605

3,211,605

3,211,605

3,211,605

3,211,605

3,211,605

3,211,605

17.3%

17.3%

17.3%

17.3%

17.3%

17.3%

17.3%

17.3%

17.3%

17.3%

17.3%

0

0

0

0

0

0

0

0

0

0

0

Operating expense ratio
Interest on R-deposit
Levelled capital expenditure

81,047

81,047

81,047

81,047

81,047

81,047

81,047

81,047

81,047

81,047

81,04703,130,558

3,130,558

3,130,558

3,130,558

3,130,558

3,130,558

3,130,558

3,130,558

3,130,558

3,130,558

3,130,558

1.0000000

0.9425071

0.8883196

0.8372475

0.7891117

0.7437433

0.7009833

0.6606818

0.6226972

0.5868965

0.5531541

0.5531541

02,950,573

2,780,936

2,621,052

2,470,360

2,328,332

2,194,469

2,068,303

1,949,390

1,837,314

1,731,681

Net operating cash flow
Discount factor

SA

P.26

Leasing commissions
Property tax for Land

PV of NOC
Total PV of NOC

JPY 22,932,410.-

Resale value

PV of Reversion value

JPY 25,450,466.-

Sale costs

Indicated Present value

JPY 48,400,000.-(Total PV of Net Income + PV of Reversion)

Discount rate

6.1%

Standard rate

Terminal risk rate

0.5%

5.0%
1.0%
0.1%
0.0%
0.0%
6.1%
(Discount rate is indicated by reflecting above premiums on the standard rate which derived from comparable sales data.)

47,432,700
3.00%

Reversion+ Area+ Bldg. age+ Grade+ State= Discount rate

1,422,981
0
46,009,719

Sheet-Ⅳ

Demolition / T-removal

Rent Comparables(Shops)Ａgreedor not1

Agreed WES 6-chome

ESS

12 min.

42.00sq.m2

Agreed WES 4-chome

ESS

8 min.

3

Offering WES 4-chome

ESS

4

Offering WES 4-chome

5

Floor

Frame

Bldg.
Ｓtory

Bldg.
Ａge

452.09sq.f.

shop

1F

S

2F

14 y.o.

151.20sq.m

1,627.52sq.f.

shop

1F

S

2F

16 y.o.

3 min.

138.83sq.m

1,494.37sq.f.

shop

1F

S

2F

ESS

3 min.

64.79sq.m

697.40sq.f.

shop

1F

S

Offering WES 4-chome

ESS

3 min.

75.66sq.m

814.40sq.f.

shop

2F

6

Offering WES 4-chome

ESS

3 min.

85.95sq.m

925.17sq.f.

shop

7

Offering WES 4-chome

ESS

3 min.

76.19sq.m

820.11sq.f.

8

Offering WES 2-chome

ESS

8 min.

53.82sq.m

9Offering WES 2-chome

ESS

7 min.

32.50sq.m

No.

Agreedor notRent/sq.m.

ConditionTimeadjust.

Standardizing

Marketspecific

Adjusted Rent

3

Offering

1,779/sq.m.

95%

100%

100%

100%

1,690/sq.m.

4Offering

2,132/sq.m.

95%

100%

100%

100%

2,025/sq.m.

7Offering

1,429/sq.m.

95%

100%

100%

100%

1,358/sq.m.

Nearby to station
Station on foot

10

Area

Rent
per month

Charge for
Common Area

JPY80,000

Total Ｒent
per month

Total Ｒent per month
per sq.m.

Refundable Deposit
Deposit/Rent

JPY0

JPY80,000

JPY1,905/sq.m.

JPY400,000

5.0 mo.

JPY300,000

JPY0

JPY300,000

JPY1,984/sq.m.

JPY1,200,000

4.0 mo.

21 y.o.

JPY243,810

JPY3,150

JPY246,960

JPY1,779/sq.m.

JPY731,429

3.0 mo.

2F

21 y.o.

JPY135,000

JPY3,150

JPY138,150

JPY2,132/sq.m.

JPY675,000

5.0 mo.

S

2F

21 y.o.

JPY106,667

JPY3,150

JPY109,817

JPY1,451/sq.m.

JPY320,000

3.0 mo.

2F

S

2F

21 y.o.

JPY120,000

JPY3,150

JPY123,150

JPY1,433/sq.m.

JPY360,000

3.0 mo.

shop

2F

S

2F

21 y.o.

JPY105,714

JPY3,150

JPY108,864

JPY1,429/sq.m.

JPY317,143

3.0 mo.

579.32sq.f.

shop

1F

W

2F

13 y.o.

JPY100,000

JPY0

JPY100,000

JPY1,858/sq.m.

JPY500,000

5.0 mo.

349.83sq.f.

shop

1F

S

2F

17 y.o.

JPY75,000

JPY0

JPY75,000

JPY2,308/sq.m.

JPY225,000

3.0 mo.

PL
E

Location

M

P.27

Use

SA

No.
on
map

Sheet-Ⅴ -1

Average

Property-specificIndicated Rent

Rentable Area

Indicated Rent

1,691/sq.m.

110%

JPY1,860/sq.m.

112.07 sq.m.

JPY208,450.-*Note.1*Note.2*Note.2 Management and repair is owed to the lessee which is also a devaluing factor of the rent. Management fee and repair cost are around 8% of the rent on average. So I evaluated the following rent.
Indicated rent

M. fee & R. cost deduction

Modified indicated rent

JPY208,450

92.0%

JPY191,774.-

Sheet-Ⅴ -1*Note.1 Registered 1F area includes a stair area which is a devaluing factor of the rent. Above figure exclude it.

Rent Comparables(Dwellings)
Ａgreedor not11

Agreed WESS 2-chome

ESS

4 min.

42.93sq.m

12Agreed WESS 2-chome

ESS

8 min.

13

Agreed WESS 1-chome

ESS

14

Offering WESS 2-chome

15

Frame

Bldg.
Ｓtory

Bldg.
Ａge

462.10sq.f. dwelling

2F

S

2F

18 y.o.

54.64sq.m

588.14sq.f. dwelling

2F

RC

3F

0 y.o.

5 min.

44.30sq.m

476.85sq.f. dwelling

1F

S

2F

ESS

5 min.

40.00sq.m

430.56sq.f. dwelling

2F

S

Offering WESS 3-chome

ESS

7 min.

48.10sq.m

517.75sq.f. dwelling

2F

16

Offering WESS 1-chome

ESS

4 min.

57.00sq.m

613.55sq.f. dwelling

17

Offering WESS 3-chome

ESS

2 min.

42.67sq.m

18

Offering WESS 1-chome

ESS

3 min.

51.75sq.m

No.

Agreedor notRent/sq.m.

ConditionTimeadjust.

Standardizing

Marketspecific

Adjusted Rent

11

Agreed1,118/sq.m.

100%

100%

100%

102%

1,140/sq.m.

14

Offering

1,475/sq.m.

100%

100%

80%

103%

1,215/sq.m.

16

Offering

1,088/sq.m.

100%

100%

100%

102%

1,110/sq.m.

Nearby to station
Station on foot

Area

Use

Charge for
Common Area

JPY48,000

Total Ｒent
per month

Total Ｒent per month
per sq.m.

Refundable Deposit
Deposit/Rent

JPY0

JPY48,000

JPY1,118/sq.m.

JPY96,000

2.0 mo.

JPY75,000

JPY3,700

JPY78,700

JPY1,440/sq.m.

JPY75,000

1.0 mo.

17 y.o.

JPY49,000

JPY0

JPY49,000

JPY1,106/sq.m.

JPY98,000

2.0 mo.

2F

19 y.o.

JPY57,000

JPY2,000

JPY59,000

JPY1,475/sq.m.

JPY114,000

2.0 mo.

S

2F

21 y.o.

JPY58,000

JPY2,000

JPY60,000

JPY1,247/sq.m.

JPY116,000

2.0 mo.

2F

S

2F

16 y.o.

JPY60,000

JPY2,000

JPY62,000

JPY1,088/sq.m.

JPY60,000

1.0 mo.

459.30sq.f. dwelling

1F

S

2F

16 y.o.

JPY64,000

JPY2,000

JPY66,000

JPY1,547/sq.m.

JPY128,000

2.0 mo.

557.04sq.f. dwelling

2F

S

3F

5 y.o.

JPY72,000

JPY3,000

JPY75,000

JPY1,449/sq.m.

JPY144,000

2.0 mo.

19
20

Rent
per month

PL
E

Location

M

P.28

Floor

SA

No.
on
map

Sheet-Ⅴ -2

Average

Property-specificIndicated Rent

Rentable Area

Indicated Rent

1,155/sq.m.

100%

JPY1,155/sq.m.

111.90 sq.m.

JPY129,245.-*Note.1*Note.2*Note.2 Management and repair is owed to the lessee which is also a devaluing factor of the rent. Management fee and repair cost are around 8% of the rent on average. So I evaluated the following rent.
Indicated rent

M. fee & R. cost deduction

Modified indicated rent

JPY129,245

92.0%

JPY118,905.-

Sheet-Ⅴ -2*Note.1 Registered 2F area includes a stair area, a corridor area, and a veranda area. They are devaluing factors of the rent. Above figure exclude them.

Since this report is a sample, following pages are intentionally excluded.
.. App. 01.. App. 02.. App. 03.. A
App. 04.. App. 05.. App. 06.. App. 07.. App. 08.. App. 09.. App. 10.. App. 11.. App. 12

SA
M

PL
E

Kanto Area Map
City Map (Land Comparables)
City Map (Rents Comparables)
R id i l M
Residential
Map
Aerial Photographs
Topography Map
Public Sectional Map
Registered Land Surveyed Map
Registered Building Drawings
Copy of Public Registry Book
Document of Building Confirmation
Photographs