February 28, 2017
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Officer(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative: Atsushi Kato
President and CEO
Contact: Toru Sugihara
Director and CFO
TEL: 03­5425­1340

Notice Concerning Acquisition and Transfer of Real Estate Beneficiary Interests in TrustStar Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment Corporation(“SAR”) entrusts the management of its assets, announces today its decision to acquire and transfer
quasi­co­ownership interest of real estate beneficiary interests in trust (collectively, the “Transactions”) as
follows.
SAR has considered and is implementing various measures to pursue the “maintenance and enhancement ofcash distribution per unit” for “maximization of unitholders’ value.” The asset replacement represents SAR’s
commitment to constantly pursue the enhancement of its portfolio and was decided through comprehensive
consideration of circumstances such as (1) Contribution to stability of occupancy rate and revenue of portfolio,(2) Implementation of active management in portfolio operation, (3) Return on gain on sale to unitholders(Please refer to Reference Material 5 attached at the bottom of this press release for further details).
Contribution to stability of occupancy rate and revenue of portfolio
The occupancy rate of Oak Minami­Azabu reached 100% as of the end of January 2017 as a result of strategicleasing activities conducted by the Asset Manager but it is considered that the fluctuation of revenue isrelatively large when compared with Baraki Logistics that has an occupancy rate of 100% by concluding along­term fixed­term building lease with two major companies. In addition, Baraki Logistics is a relatively
new building completed in August 2015 and is considered to be able to reduce maintenance andmanagement costs of buildings compared with Oak Minami­Azabu, completed in April, 1985. SAR believes
that contribution to the enhancement of the portfolio’s occupancy rate and revenue can be expected fromthese two points.
Implementation of active management in portfolio operation
SAR believed that the potential asset value of Oak Minami­Azabu will largely exceed the acquisition price as
the property has excellent profitability as an office building and scarce land with an area of 2,471.14 m2 (sitearea of Oak Minami­Azabu) in Minami­Azabu as well as its surrounding area. As a result of strategic sales
activities to the prospective buyers that recognize the above­mentioned asset values, a sale and purchase
contract was concluded on February 28, 2017 with the scheduled transfer price of 5,020 million yen, which
exceeded the appraisal value at the end of the 1st fiscal period (3,400 million yen) by approximately 45%.
This transfer is considered as a result of multifaceted verifications of the value of the assets owned by SAR
and is believed to expose the potential value of the assets owned by SAR.
Return on gain on sale to unitholders
SAR believes that the gain on sale expected to be acquired with the split transfer of Oak Minami­Azabu inthe 3rd and 4th fiscal periods can be returned to unitholders in two periods. In addition, part of the gain on1

sale is scheduled to be retained as internal reserves in each fiscal period and the internal reserves will be
used to alleviate the negative impact on cash distributions caused by unexpected factors such as temporary
decrease of income and accrual of a large amount of expenses in future management. Moreover, the gainon sale will be used to avoid dilution of cash distributions upon capital increase through public offering,absorb financial costs and address the difference between accounting and tax treatment, as needed, andwill secure stability of cash distribution per unit.

1. Overview of the asset to be acquired and the asset to be transferred(1) Overview of the asset to be acquired
Asset to be acquired

73% of quasi co­ownership interest in beneficiary interests in trust assets
comprised mainly of real estate

Property nameBaraki Logistics

Asset type

Logistics

Contract dateFebruary 28, 2017

Planned acquisition date

April 2017

Sellers

GKEnterprise

Planned acquisition price
Acquisition financing

3,431 million yen
payment received for the transfer of Oak minami^azabu and own resources
Refer to 3. Description of the asset to be acquired Special notations

Special notations

Quasi co­ownership interest in beneficiary interests in trust assets comprised mainly of real estate is as below
quasi

owner

co­ownership

Planned acquisition
priceAppraisal value

note2

note3

interest
Baraki Logistics

73%
27%

total

SAR
note1

GKSAPR2100%

3,431 million yen

3,470 million yen

note1

1,269 million yen――

4,700 million yen―(Note 1) A sale and purchase agreement of 27% of quasi co­ownership interest in trust beneficiary interests, thatsets the seller as GK Enterprise, the buyer as GK SAPR2, and the planned acquisition date as until the endof April 2017 has been concluded as of today.
Moreover, the preferential negotiation rights with GK Enterprise which SAR acquired have been changed
to the preferential negotiation rights with GK SAPR2. For details, please refer to the “Notice Concerning
Change in Preferential Negotiation Rights,” separately announced today.
(Note2) excluding acquisition­related expenses, consumption tax and local consumption tax(Note3) refer to Summary of appraisal report(2) Overview of the asset to be transferred
Asset to be transferred

quasi co­ownership interest in beneficiary interests in trust assets comprised
mainly of real estate

Property nameOak Minami­Azabu

Asset type

OfficeContract dateFeb 28, 2017

Planned transfer date
Planned buyer

1: 49%

Mar 31, 2017

2: 51%

Aug 1, 2017

Kanden Realty

Development Co.,Ltd.

2

Planned transfer price(Note 2)

1: 49%

2,459.8 million yen

2: 51%

2,560.2 million yen

Book value (Note 3)

3,413 million yen

Gain/loss on sale (Note 4)

708 million yen

Special notations

Refer to 4. Description of the asset to be transferred Special notations(Note1)Indicated is the sale and purchase price of the asset to be acquired stated in the sale and purchaseagreement for the asset to be acquired (excluding acquisition­related expenses, consumption tax andlocal consumption tax).
(Note2)Indicated is the book value as of July 31, 2016.
(Note3)Please refer to “Notice Concerning Revision to Forecasts for Operating Results and Distribution for the
Fiscal Period Ending July 31, 2017” announced today.

Reason for the Transactions
Acquisition of BarakiLogistics
Baraki Logistics, located within 30km from Tokyo Station, is a logistics facility with good access tocentral Tokyo. It is approximately 700m south of Wangan­Ichikawa Interchange on the Higashi­Kanto
Expressway, and has excellent accessibility to central Tokyo as well as to Haneda and Narita
International Airport and can also address air logistics demand. In addition, it has excellent commuting
convenience for workers as it is located within walking distance to the nearest station and is a logistics
facility with high appeal to tenants due to its excellent location. It is a relatively new property
completed in August 2015 (approximately 1.5 years old) and is fully occupied with the conclusion oflong­term fixed­term building lease agreements with two major companies.
SAR decided to acquire the property by exerting the preferential negotiation rights acquired from thesponsor group (Note 1) after determining that the acquisition will contribute to the stability of medium­to long­term revenue and enhancement of the quality and stability of the portfolio as a result ofcomprehensively considering the characteristics of the location and property.
Moreover, SAR is scheduled to acquire quasi co­ownership interest equivalent to approximately 73%
of the trust beneficiary interest of the property in the Transactions.
Transfer of Oak Minami­Azabu
Oak Minami­Azabu is a multi­tenant office building located an approximate eight­minute walk from
Shirokane Takanawa Station on the Tokyo Metro Nanboku Line and Toei Mita Line. It is located in“Minami­Azabu Area,” an exclusive residential district where embassies of various countries
concentrate and where apparel, mass media and IT­related companies have their offices.
The occupancy rate was approximately 77.9% upon acquisition, but reached 100% as of the end ofJanuary 2017 through successful strategic leasing activities conducted by narrowing down the target
and renewal work of common spaces, etc. resulting in enhanced value as an income property.
SAR believed that the property had potential value (multifaceted asset value) as a versatile property
due to the characteristics of the Minami­Azabu Area as well as the large portion of land.
SAR was able to sell the property for 5,020 million yen, largely exceeding the appraisal value at theend of the 2nd fiscal period (3,470 million yen) as a result of sales activities by focusing on theabove­mentioned aspects. This transfer is considered as a transaction through which multifaceted asset
values of the property became visible.
As mentioned above, the Transactions seek to maintain and enhance cash distribution per unit in order tocontribute to SAR’s basic policy of “maximization of unitholder’s value,” and are believed to lead to further
strengthening of the portfolio.
Moreover, please refer to the attached Reference Material 4 for specific measures that are considered as a
strategy to maximize unitholders’ value by the Asset Manager.

3

SAR will continue to discuss, verify and implement various measures that contribute to the interests ofunitholders including those indicated above without being bound by precedent.
Moreover, please refer to Reference Material 5 as a material related to the Transactions.
(Note1)The Sponsor Group is Star Asia Management Limited (the Sponsor), Star Asia Asset Management LLC, Star Asia
Management Japan Limited, Malcolm F. MacLean IV, Taro Masuyama and investment vehicles in Japan that are theinvestment destination of funds (excluding minority investments) for which Malcolm F. MacLean IV and Taro
Masuyama make investment decisions (a) that are in Japan and own or acquire investment assets such as real estateor (b) that own or acquire SAR’s investment units.

Description of the asset to be acquired
Baraki Logistics 73%
Property no.

LGC­04

Property nameBaraki Logostocs

Type

Logistics

Beneficiary interestin trust

Trustee

Mitsubishi UFJ Trust andBanking Corporation

Overview of specified asset
Type of specified asset

Period set for beneficiary interest in trust (planned)
Planned acquisition price

3,431 million yen

From April6th, 2017
To the end of Apri, 2027
Date of conclusion ofsale and purchaseFebrary 28, 2017agreement
Sellers
GK Enterprise

Appraisal value

3,470 million yen

Location

2526­42 Baraki, Ichikawa­shi, Chiba

Indication of residential address
Nearest station
Land

Close toType of ownership
Site area

Building

Wangan­Ichikawa

Proprietary ownership
6,240.96

Use district

Building coverage ratio

60Type of ownership

Proprietary ownership

Total floor area
Construction
completion
Property management company (planned)

Higashi­Kanto High way
Semi­industrial are

Floor area ratio

200

12,471.50

Use

Logistics

August 14,2015

Structure and floors

RC S
5F

CRE Inc.

Master lease company(planned)

Status of leasing
Total leasable area

Total number oftenants
Monthly rent(including common
area maintenance fee)

12,185.78

Total leased area
12,185.78
Security and guarantee deposits2Non­dislosed

Non­dislosed

Occupancy rate
Feb 1st, 2017
100.0
Appraisal firm
The Tanizawa Sogo Appraisal Co., Ltd.
Status of collateral
SAR has no plan to offer it as collateral after the acquisition.
Special notations
It is stipulated that SAR shall not bear any liability for compensation for damages, etc. and may cancel each “sale andpurchase agreement of beneficiary interest in trust” in the case fund procurement (includes but not limited to issuance of
SAR’s investment units and borrowings from financial instructions based on monetary consumption loan agreement) for
purchasing quasi co­ownership interest of the beneficiary interests in trust has not been implemented satisfactorily by thetransfer date.

4

Description of the asset to be transferred
Oak Minami­Azabu
Property
OFC­02
no.
Overview of specified asset

Property nameOak Minami­Azabu

Type of specified asset

Beneficiary interest in trust

TrusteeAcquisition price

3,271 million yen

Acquisition date

Appraisal value

3,470 million yen

Planned buyer

Location

3­145­3 Minami­Azabu, MInatoku, Tokyo

Indication of residential address

Type of ownership3­19­23 Minami­Azabu, MInatoku, Tokyo
Approximately 8­minute walk from Shirokane­Takanawa on the Tokyo Metro
Nanboku Chiyoda Line/ Toei­Mita Line
Proprietary ownership

Site area

2,471.14

Use district

Commercial district

Building coverage ratio

80%

Floor area ratio

500%

Type of ownership

Proprietary ownership
10,454.93
including logistics7.41

Use

OfficeApr 30, 1985

Structure and floors

SRC B1/14F

CBRE Japan KK

Master lease
company

SAR

Nearest station
Land

Building

Total floor area
Construction
completion
Property management company

Type

OfficeMizuho Trust &Banking Co., Ltd.
Jan 14, 1953
Kanden Realty
Development Co.,Ltd.

Status of leasing
Total leasable area

6,511.74

Total leased area

4,732.93

Total number of10
tenants
Monthly rent
15,341 thousand yen(including common
area maintenancefee)
131,745,575 thousand yen

Security and guarantee deposits
Occupancy rate
Sep 20162
84.37

Oct 2016
84.37

Nov 2016

Dec 2016

84.37
Japan Real Estate Institute

84.37

Jan 2017
100.00Appraisal firm
Special notations
A deposit of a total of 550 million yen (245 million yen for the first settlement and 255 million yen for the second
settlement) set forth in each “sale and purchase agreement of beneficiary interest in trust” is scheduled to be paid
respectively by the buyer on the contract date of the agreement, and SAR will, after the payment, have a sale and purchaseprice receivable (2,214.8 for the first settlement and 2,305.2 for the second settlement), which is the amount after
deducting deposit­equivalent from the planned transfer price. In addition, as for the first settlement, “sale and purchaseagreement of beneficiary interest in trust,” stipulates that seller and buyer can cancel the agreement when the seller
returns the deposit to the buyer with no interest and pays the same amount as the deposit to the buyer and when thebuyer abandons the deposit only between the contract date and fulfillment date of the agreement by either SAR or thebuyer(Not stipulated for the second settlement and in the “sale and purchase agreement of beneficiary interest in

trust”).
SAR will conclude a quasi co­ownership agreement with the buyer, trustee and the Asset Manager before the firstsettlement of the transfer and agree with the rights and obligations between quasi co­owners such as decision making
methods as the beneficiary of beneficiary interests in trust and transfer restriction on the quasi co­ownership interest of
beneficiary interests in trust.

5

Summary of appraisal report
Baraki Logistics
unit:yen
Summary of real estate appraisal report
Baraki Logistics

Property nameAppraisal value

3,470,000,000
The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal firm
Date of value
Item
Indicated value by income approach
Indicated value by direct
capitalization method(1) Opera1ng revenue ((a)−(b))(a) Gross potential income

February 1, 2017
Description, etc.
Estimated by correlation of the indicated value by direct
3,470,000,000 capitalization method and the indicated value by DCF
method.
Details

3,550,000,000
259,445,350
259,445,350(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance andmanagement fee
Utilities expenses

026,772,000

Repair expenses

1,130,000

Property management fee
Tenant leasing cost, etc.

2,400,0000Property taxes
Insurance premium

20,878,400
565,000

Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on
deposits

4,045,445(5) Capital expenditures(6) Net cash flow
(NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value of DCF method

5,995,404
13,891,789

210,539,312
603,876 Appraised investment return as 1.0%.
by reference to repair and renewal expenses
2,260,000 Appraisedin the ER and the level of similar real estate.
208,883,188
4.3
3,430,000,000

Discount rate
Terminal capitalization rate
Indicated value by cost approachAppraised by comprehensively taking into account thecompetitiveness of the subject real estate, etc.

4.2
4.5
3,510,000,000

Ratio of land
69.6
Ratio of building
30.4
Matters considered in reconciliation of indicated values anddetermination of appraisal value

Employed the indicated value by income approach with
the indicated value by cost approach only as reference.

Oak Minami­Azabu
unit:yen
Summary of real estate appraisal report
Oak Minami­Azabu

Property nameAppraisal value

3,470,000,000 yen
Japan Real Estate Institute

Appraisal firm
Date of value
Item

January 31, 2017
Description, etc.

Details6

Indicated value by income approach
Indicated value by direct capitalization
method(1) Opera&ng revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance and managementfee
Utilities expenses
Repair expenses
Property management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Estimated by correlation of the indicated value by direct
3,470,000,000 capitalization method and the indicated value by DCF
method.
3,510,000,000
278,262,000
299,423,000
Appraised taking into consideration the occupancy status
21,161,000 of the subject real estate and similar real estate and future
supply/ demand trend.
112,154,000
Appraised by reference to the agreement terms and the26,020,000
level of similar real estate.
Appraised by reference to actual data and the level of
28,000,000
similar real estate.
Appraised by reference to costs for restoring to original
6,986,000
state in the ER and the level of similar real estate.
Appraised by reference to the agreement terms and the
5,265,000
level of similar real estate.
Appraised by reference to the agreement terms and the2,040,000
level of similar real estate.
43,387,000 Appraised based on actual data.
456,000 Appraised by reference to the level of similar real estate.
0 none166,108,000

1,844,000 Appraised investment return as 2.0%.
Appraised by reference to repair and renewal expenses in(5) Capital expenditures
16,960,000
the ER and the level of similar real estate.
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
150,992,000
Appraised by comprehensively taking into account the(7) Capitalization rate
4.3
competitiveness of the subject real estate, etc.
Indicated value of DCF method
3,430,000,000
Appraised by comprehensively taking into account the
Discount rate
4.1
competitiveness of the subject real estate, etc.
Terminal capitalization rate
4.5
Appraised by reflecting aging risk, market trend risk, etc.
Estimated by multiplying the total of the land price and theIndicated value by cost approach
4,050,000,000
building price by marketability correction rate.
Ratio of land
90.1
Ratio of building
9.9
Matters considered in reconciliation of indicated values andEmployed the indicated value by income approach with thedetermination of appraisal value
indicated value by cost approach only as reference.

Profile of the seller and planned buyer
Seller profile Baraki Logistics
Name

GK Enterprise

Location5­1­4 Toranomon, Minato­ku, Tokyo
Representative partner: Ippanshadanhoujin
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership, disposition of real estate
2. Leasing and management of real estate
3. Acquisition, ownership, disposition of beneficially interest in trust
4. Acquisition, ownership, disposition of securities
5. All business incidental to the above
100,000 yen

Representative
Main business description

CapitalEstablished

April 1, 2015
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.

7Personnel relationship

There is no personal relationship to report.

Business relationship

There is no business relationship to report.

Related party or no

The Seller does not fall under the category of interested person, etc. as provided in theInvestment Trusts Act, but falls under the category of interested party (Note) prescribed in
the “Rules on Transactions with Interested Parties”, which is the voluntary rules set forth by
the Asset Manager for preventing conflict of interests regarding its management of SAR’s
assets. Upon conducting the acquisition of the assets, the Asset Manager has performed
deliberation and resolution in accordance with the voluntary rules.

Planned buyer profile Oak Minami­Azabu
Development Co.,Ltd
Kanden Realty
Location3­3­23 Nakanoshima, kita­k, Osaka­shi, Osaka
Representative
Tomoaki Nakamori
Name

Main business description

1.
2.
3.
4.

Acquisition, ownership, disposition of real estate
Leasing and management of real estate
Development
4. 17. omit
18. All business incidental to the above

5.
710,000,000 yen
Established
July 4, 1947
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
CapitalPersonnel relationship

There is no personal relationship to report.

Business relationship

There is no business relationship to report.

Related party or no

There is no relationship to report.

Status of Parties Related to the Acquisition of the Property
Baraki Logistics
Previous owner, previous trustee
Company name

GK Enterprise

Relationship with parties

Acquisition background and

The company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

reason, etc.
Acquisition price

4,650,000,000 yen

Acquisition period

June 30, 2016

who have special interests

Before Previous owner, previous
trustee
Other than the one with a relationshipof special interest

Transaction with interested person, etc.
The Transactions are no transactions with interested person, etc., but the seller in the asset acquisition falls
under the category of interested party prescribed in the “Rules on Transactions with Interested Parties,”
which is the voluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon deciding on the acquisition of the asset, the Asset Manager has
performed deliberation and resolution in accordance with the voluntary rules.

8Overview of broker
Baraki Logistics
Overview of broker
Name
Location
Representative
Main business description

Jones Lang LaSalle, Inc.
2­13­10 Nagata­cho, Chiyoda­ku, Tokyo
Toshinobu Kawanishi
1. Consultant and research of real estate investment
2. Sales, trading, leasing, management of real estate; and agent and brokerage of such
3. Appraisal and consultant of real estate
4. through 24. Omission
25. All business incidental to the above
Capital
195 million yen
Established
April 23, 1985
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personal relationship to report.
Business relationship
There is no Busiess relationship to report.
The company does not fall under the category of related party of SAR/the Asset Manager.
Related party or no

Breakdown and value of the brokerage commission
Since the consent has not been obtained from the broker, the information is not disclosed as an
undisclosed case due to unavoidable reasons.

Oak Minami­Azabu
Overview of broker
The information is undisclosed as consent to disclosure has not been obtained from the broker.
There is no capital relationship, personnel relationship or business relationship to report
between SAR/the Asset Manager and the broker, nor does the broker fall under the category of
related party of SAR/the Asset Manager.
Value of the brokerage commission
Since the consent has not been obtained from the broker, the information is not disclosed as an
undisclosed case due to unavoidable reasons.
Schedule for the Transactions
Baraki Logistics
February 28, 2017
Until the endof April.2017

Oak Minami­Azabu
February 28, 2017

March 31, 2017

Acquisition decided
Conclusion of a sale and purchase agreement of trust beneficiary interest
Acquisition of beneficiary interest in trust (planned) quasi­co­ownershipinterest of real estate beneficiary interests in trust 73%
Payment of acquisition price (planned)
Conclusion of a master lease agreement and property management agreement(planned)

Transfer decided
Conclusion of a sale and purchase agreement of trust beneficiary interest
Receipt of deposit
Transfer of beneficiary interest in trust (planned) quasi­co­ownership interestof real estate beneficiary interests in trust 49%

9August 1, 2017

Receipt of transfer price (planned) quasi­co­ownership interest of real estate
beneficiary interests in trust 49%
Transfer of beneficiary interest in trust (planned) quasi­co­ownership interestof real estate beneficiary interests in trust 51%
Receipt of transfer price (planned) quasi­co­ownership interest of real estate
beneficiary interests in trust 51%

Settlement method
As for the sale and purchase prices of the Transactions, the acquisition price is scheduled to be settled inlump sum on the planned acquisition date. As for the settlement for the property to be transferred, SAR
will receive the amount after subtracting from the transfer price 245 million yen and 255 million yen
received as deposit on the contract date of a sale and purchase agreement of trust beneficiary interest in
trust.
12. Future outlook
As a result of the Transactions, 5% or larger discrepancy is expected for cash distribution per unit in the
management status and cash distribution forecast for the fiscal period ending July 2017 announced in
Financial Report for Fiscal Period Ended July 31, 2016 dated September 14, 2016. Please refer to “NoticeConcerning Revision to Forecasts for Operating Results and Distribution for the Fiscal Period Ending July 31,
2017,” separately announced today, for further details.

* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the pressclub of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club forconstruction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia­reit.com/en/

10

Reference Material 1: Portfolio List after the Transactions
Real estateappraisalvalue(million yen)
(Note 2)
3,040
1,770

Propertyno.

Property name

OFC­01

Minami­Azabu Shibuya Building

Minato­ku, Tokyo(Planned)acquisition
price(million yen)
(Note 1)
2,973

OFC­02

Oak Minami­Azabu Building

Minato­ku, Tokyo

1,668

OFC­03

Honmachibashi Tower

Chuo­ku, Osaka­shi, Osaka

6,065

6,830

9.5

OFC­04

Nishi­Shinjuku Matsuya Building

Shibuya­ku, Tokyo

1,763

2,290

2.8

OFC­05Alphabet Seven

Minato­ku, Tokyo

1,725

2,270

2.7

OFC­06

Shibuya MK Building

2,042

2,530

3.2

OFC­07

Hakata­eki Higashi 113 Building

1,885

1,960

2.9

OFC­08Asahi Building

Shibuya­ku, Tokyo
Hakata­ku, Fukuoka­shi,
Fukuoka
Kanagawa­ku, Yokohama­shi,
Kanagawa

6,320

6,470

9.9

Office subtotal

38.2

RSC­01

Urban Park Azabujuban

Minato­ku, Tokyo

2,045

2,140

3.2

RSC­02

Urban Park Daikanyama

6,315

7,120

9.9

RSC­04

Urban Park Shin­Yokohama

2,528

2,580

4.0

RSC­05

Urban Park Namba

Shibuya­ku, Tokyo
Kohoku­ku, Yokohama­shi,
Kanagawa
Naniwa­ku, Osaka­shi, Osaka

1,490

1,610

2.3

RSC­06

Urban Park Gokokuji

Toshima­ku, Tokyo

1,460

1,480

2.3

Residential property subtotal

21.7

Location

LGC­01

Iwatsuki Logistics

LGC­02

Yokohama Logistics

LGC­03

Funabashi Logistics

Iwatsuki­ku, Saitama­shi,
Saitama
Kanagawa­ku, Yokohama­shi,
Kanagawa
Funabashi­shi, Chiba

LGC­04

Baraki Logistics

Ichikawa­shi, Chiba

Investment
ratio (%)
(Note 3)
4.7
2.6

6,942

7,000

10.9

3,560

3,880

5.6

7,875

8,240

12.3

3,431

3,470

5.4

Logistics property subtotal

34.1

HTL­01R&B Hotel Umeda East

Kita­ku, Osaka­shi, Osaka

2,069

HTL­02

Smile Hotel Namba

Naniwa­ku, Osaka­shi, Osaka

1,750

2,250

3.2

1,960

6.7

Hotel subtotal

6.0

63,906
68,890100.0(Note 1) ”(Planned) acquisition price” indicates, except for Minami­Azabu Shibuya Building and Oak Minami­Azabu Building,the sale and purchase price stated in the sale and purchase agreement for the acquired asset/asset to be acquired,
rounded to the nearest million yen. The sale and purchase price or the planned sale and purchase price does notinclude consumption tax, local consumption tax and various expenses required for the acquisition. As to
Minami­Azabu Shibuya Building and Oak Minami­Azabu Building, since price for each property is not set in the saleand purchase agreement, the total sale and purchase price of the two properties is divided proportionally based on
the ratio of appraisal value of each property at the time of acquisition and indicated as “Acquisition price.”(Note 2) ”Real estate appraisal values” are the opinions of value stated in the real estate appraisal report with July 31, 2016as the date of value for acquired assets and November 1, 2016 for assets to be acquired, each rounded to thenearest million yen.
(Note 3) “Investment ratio” is the ratio of (planned) acquisition price for each acquired asset/asset to be acquired to thetotal of (planned) acquisition prices, rounded to the first decimal place.

11Reference Material2: Summary of engineering report and earthquake risk analysis

Type

Propertyno.

Property name

PML (%)

OFC­01 Minami­Azabu Shibuya Building

12.6
High­rise bldg.11.2
Low­rise bldg. A 6.3
Low­rise bldg. B 5.5 (Note1)

OFC­02 Oak Minami­Azabu Building

OfficeOFC­03 Honmachibashi Tower

2.7

OFC­04 Nishi­Shinjuku Matsuya Building

12.2

OFC­05 Alphabet Seven

7.8

OFC­06 Shibuya MK Building

13.1

OFC­07 Hakata­eki Higashi 113 Building

7.1

OFC­08 Asahi Building

4.8

RSC­01 Urban Park Azabujuban

7.2

RSC­02 Urban Park Daikanyama
Residence

Existing bldg12.7

Bldg. A: 10.2

RSC­04 Urban Park Shin­Yokohama

14.5

RSC­05 Urban Park Namba

13.2

RSC­06 Urban Park Gokokuji

9.2

LGC­01 Iwatsuki Logistics

12.2

LGC­02 Yokohama Logistics

10.8

Bldg. B: 7.9

Logistocs
LGC­03 Funabashi Logistics

Bldg1­A13.9

LGC­04 BarakiLogistics

Bldg1­B14.4

10.9

Bldg211.1

Note1

HTL­01 R&B Hotel Umeda East

11.4

HTL­02 Smile Hotel Namba

12.3

Hotel
Entire Portfolio (Note2)

3.57

Note1 Entire building
Note2 SAR consigned calculation of individual PML and portfolio PML to Deloitte Tohmatsu Property Risk Solution Co., Ltd.
and have received the reports. The figure in the entire portfolio column is the PML for the entire portfolio (portfolio
PML) based on the company’s “portfolio earthquake risk evaluation report” dated February 17th, 2017.

12

Reference Material 3:<Baraki Logistics: photos of exterior of property

Baraki Logostics: location map

Baraki Logostocs

13