(Translation of Japanese Original)
October 18, 2021

For Immediate Release
REIT Issuer
Hankyu Hanshin REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu Hanshin REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Kiyotaka Okano
General Manager, Financial and IR Department
Email: IR_PR@hhram.co.jp

Notice Concerning Acquisition and Transfer of Domestic Real Estate Trust Beneficiary Interest
Hankyu Hanshin REIT, Inc. (hereafter “HHR”) hereby notifies that Hankyu Hanshin REIT Asset Management,
Inc., the asset management company that HHR has selected to manage its assets (hereafter the “AssetManagement Company”), today decided to make the following acquisition and transfer of assets.

Details
1. Overview of Acquisition and Transfer(1) Overview of Acquisition
H-CUBE MINAMIAOYAMA
1) Specified asset type:2) Property name:

Trust Beneficiary Interest (Trustee: Mizuho Trust & Banking Co., Ltd.)
H-CUBE MINAMIAOYAMA

3) Planned acquisition price: 6,650,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)4) Appraisal value:
7,300,000,000 yen (Date of appraisal: September 15, 2021)
5) Planned acquisition date: December 14, 2021
6) Seller:

Hankyu Hanshin Properties Corp.

7) Acquisition fund:

Proceeds from funds procured from the transfer of Sphere Tower Tennozu(2) Overview of Transfer
Sphere Tower Tennozu
1) Specified asset type:

Trust Beneficiary Interest (equivalent of 33% quasi co-ownership)

2) Property name:Sphere Tower Tennozu

3) Planned transfer price:

8,600,000,000 yen

4) Appraisal value:

8,250,000,000 yen (Date of Appraisal: May 31, 2021)

5) Planned transfer date:

December 10, 2021

6) Planned buyer:

Domestic corporation(Please refer to postscript “6. Overview of Buyer and Seller”) (Note)(Note) Not disclosed as consent has not been obtained from the transferee.

11. Reason for Acquisition and Transfer
HHR has been examining asset replacement for improving the quality of its portfolio and sustainablegrowth of distribution. As a result, it has been decided that a strategic asset replacement (hereafter the“Replacement”), in which an urban retail facility (H-CUBE MINAMIAOYAMA) in central Tokyo owned byHankyu Hanshin Holdings Group (hereafter “the Sponsor Group”) is acquired and “Sphere Tower Tennozu”
owned by HHR is transferred, will be conducted.
"H-CUBE MINAMIAOYAMA" is a development project of the Sponsor Group following "nanohana
Ebisubashi (site)" and "MANDAI Shimoshinjo Store" acquired in March 2020, and is an urban retail facility
located in the Omotesando and Minami-Aoyama area, where domestic and foreign fashion brand stores areconcentrated. The property is located on a corner facing a street with high convenience, which is in a 2minute walk from Omotesando Station on the Tokyo Metro, and the medium-to-long-term needs for opening
stores can be expected due to the highly competitive location in the area, now and after the COVID-19
epidemic is settled. As such, HHR determined that the acquisition of the property will contribute to increasing
unitholder value.
“Sphere Tower Tennozu” is located in the Tennozu area and is an office building directly connected to thenearest station and maintains a high occupancy rate. On the other hand, we have been considering
replacement in line with our medium-term policy, as unrealized losses are arising and repair costs are
expected to increase in the future due to the aging of the building. We have recently been proposed
acquisition for a whole building from the transferee, and we have decided to sell it jointly with a quasi-co-owner (Note 1).

After the Replacement, in addition to improving the average yield after depreciation of the entire portfolio,
the improvement of quality of the portfolio, such as an increase in unrealized gains and shorter average ageof buildings (Note 2).
(Note 1) For specific figures on gains on transfer, please refer to "4. Details of assets to be acquired and transferred(2) Details of assets to be transferred."(Note 2) For specific figures of average yield after depreciation and unrealized gains and losses, please refer to"Status of Portfolio" below.

HHR evaluated the following points when deciding on the acquisition of “H-CUBE MINAMIAOYAMA”.
The property is an urban retail facility located a 2-minute walk from Omotesando Station, which isconnected to the Tokyo Metro (Ginza Line, Chiyoda Line, Hanzomon Line).
The Minami-Aoyama area, where the property is located, is the area with the highest fashion and lifestylesensitivity, and is one of Japan's leading areas with high needs for roadside stores of designer brands andhigh fashion. The property is located on a corner facing a particularly accessible street connecting Miyukidori Street and Kotto-dori Street. The building has 1 basement floor and 2 stories above ground. It is divided
into 2 sections, north and south, and both sections have good visibility from the street. As it is located in anarea of concentrated roadside stores in Minami-Aoyama and stands on the movement line of abundant
traffic, the potential of the property as a roadside store is high. Moreover, the property has characteristics
that match the expectations of brands that desire to open a store in the area. Thus, we judged that highrental demand can be expected.
The property currently houses cosmetics brand ORBIS and fashion brand Brooks Brothers.

2

[Status of Portfolio]
End of 32nd
fiscal period(ended May 2021)

Asset planned to
be transferred
Sphere Tower
Tennozu

Asset planned tobe acquired
H-CUBEMINAMIAOYAMA

After planned
asset replacement(Note 3)31 properties

1 property

1 property

31 properties

Date ofacquisition/transfer(planned)

December 10,
2021

December 14,
2021

Acquisition/transfer
price (planned)

8,600
million yen

6,650
million yen

Number of properties

Asset scale(Average) NOI yield(Note 1)

(Average) yield after
depreciation (Note 1)
Unrealized gain/loss(Note 2)

169,534
million yen

166,779
million yen

4.7%

3.6%

4.0%

4.7%

3.5%

2.1%

3.9%

3.6%

28,570
million yen−132
million yen

607
million yen

29,676
million yen(Note 1) (Average) NOI yield is calculated by dividing the sum total of (a) the difference between the real estate lease
operation income and real estate lease operation expenses of each property and (b) depreciation, by totalacquisition planned price. (Average) yield after depreciation is calculated by dividing the sum total of difference
between the real estate lease operation income and real estate lease operation expenses of each property, by
total acquisition planned price. (Average) NOI yield and (Average) yield after depreciation are calculated basedon the following figures.
・End of 32nd fiscal period:
Actual figures for the 32nd fiscal period.
・Asset to be transferred:
Actual figures for the 32nd fiscal period.
・Asset to be acquired:
The first fiscal year’s operating revenues and operating costs using the
DCF method as indicated in the appraisal reports are used.
・After the Replacement (planned): Figures after subtracting the figures of the Asset Planned to beTransferred and adding the Asset Planned to be Acquired to the actual
figures for the 32nd fiscal period(Note 2) Unrealized gain/loss indicates the difference between the appraisal value and the book value and is calculated
based on the following figures.
・Asset to be transferred:
Actual figures for the 32nd fiscal period.
・Asset to be acquired:Figures calculated based on the book value (expected value) which are
the total of the acquisition price (planned) and acquisition expenses thatare to be recorded as assets pursuant to the accounting policy of HHR・After the Replacement (planned): Figures obtained by adding/subtracting unrealized gain/loss of theAsset Planned to be Transferred and the Asset Planned to be Acquired
as well as expected capital expenditures and depreciation in the 33rd
fiscal periods to/from unrealized gain/loss at the end of the 32nd fiscal
period.
(Note 3) The figures after the Replacement (planned) are figures considering only the transfer of the Asset Planned to beTransferred and the acquisition of the Asset Planned to be acquired (as for unrealized gain/loss, expected
capital expenditures and depreciation in the 33rd fiscal periods are also added/subtracted) after the end of the
32nd fiscal period and may differ from actual figures.

3. Use of the transfer price
The use of the transfer price of “Sphere Tower Tennozu”, scheduled on December 10, 2021, will be used
to fund the acquisition of “H-CUBE MINAMIAOYAMA” and to replenish our own funds or use it to fund theacquisition of future specified assets.

3

4. Details of the Assets Planned to be Acquired and Transferred(1) Details of Asset Planned to be Acquired
Property nameSpecified asset type
Trustee of the trust
Period of trust
Planned acquisition priceAppraisal value
Location Address
Building coverage
Floor area ratio
Land

Zone use
Site area
Form of ownership

Design company
Construction company
Building recognition
organization
Property Manager
Earthquake PML(evaluators)
Collateral

Other matters to note

H-CUBE MINAMIAOYAMA
Trust beneficiary interest
Mizuho Trust & Banking Co., Ltd.
June 30, 2017 to November 30, 2027 (Note 1)
6,650,000,000 yen
7,300,000,000 yen (Date of appraisal: September 15, 2021)(Appraisal organization: DAIWA REAL ESTATE APPRAISAL CO., LTD. )5-7-1 Minamiaoyama, Minato-ku, Tokyo
Month/
70%
February, 2020
Year built
Steel-frame, reinforced
Structure/ concrete structure with160%
flat roof/ 2 floors with 1
Floor
underground floor
category 2 mediumBuilding
to high-rise exclusive
Use
shop
residential districts
Total floor
497.12 m2
801.24 m2
area
Form ofRight of ownership
Right of ownershipownership
Mitsubishi Jisho Sekkei, Inc.
Shinwa Construction Co., Ltd.
The Building Center of Japan
Hankyu Hanshin Building Management Co., Ltd.
10.7％（ERS Corporation and OYO RMS Corporation）
None The transaction agreement for the acquisition corresponds to a forward
commitment, etc. (referring to transaction agreements dated forward inwhich settlement and handing over of property is conducted more than
one month after the conclusion of the agreement, and other relatedagreements) stipulated in the Comprehensive Guidelines for Supervisionof Financial Instruments Business Operators, etc. Also, if HHR acts inserious violation of the terms of the transaction agreement (Including
cases where it was found that the representations and warranties under
the transaction agreement were incorrect or incorrect in important
respects), the seller may cancel the agreement. It has been agreed that
if the agreement is cancelled in such a situation HHR shall pay the seller
an amount equivalent to 10% of the sale price as a penalty. In addition,
under the transaction agreement, the obligation of HHR to pay the saleprice shall take effect on the date of execution of the sale and purchase,on condition that the company has completed the financing (including,but not limited to, loans and capital increases) necessary for the paymentof the purchase price.
 According to the Engineering Report, there are multiple points pointed
out regarding the Building Standard Law, etc., but said points arescheduled to be corrected promptly after HHR acquires the target realestate.

(Note 1) The period of trust (planned) at the time of acquisition by HHR.

4

(2) Details of Asset to be Transferred
Property nameSpecified asset type
Trustee of the trust
Period of trust
Proposed transfer priceSphere Tower Tennozu
Trust Beneficiary Interest (equivalent of 33% quasi co-ownership)
Mitsubishi UFJ Trust and Banking Corporation
March 31, 2003 to June 30, 2027
8,600,000,000 yen
8,250,000,000 yen (Date of appraisal: May 31, 2021)(Appraisal organization: Japan Real Estate Institute)8,380,000,000 yen (Note 1)
32,000,000 yen (expected amount)
2-2-8 Higashishinagawa, Shinagawa-ku, Tokyo
October 2, 2007
Month/(1) April 1993
80%
Year built(2) June 1991
(1) Steel-frame, reinforced
concrete, steel
reinforced concrete
structure with flat roof/
Structure/500%
27 floors with 2
Floorsunderground floors(2) Reinforced concrete
structure with flat roof/
Buildingwith 4 underground floors(1) office, shop
(2) machine room (district
Commercial
Usecooling and heating
district
system)Total floor(1) 43,477.68 m2
6,106.11 m2
area(2) 3,674.04 m2(Note 2)Right ofForm ofRight of ownershipownershipownership

Appraisal value
Book value
Gain/loss on transfer
Location (address)
Acquisition date
Building coverage

Floor area ratio

Land
Zone use

Site area (Note 2)
Form of ownership
Tenant details (Note 3)
Total number oftenants
Total rent income
Security deposits
Leasable area
Leased area
Occupancy rate

Other matters to note

23
592 million yen (Note 4) (Note 5)
315 million yen (Note 5)
8,818.09 m2 (Note 5)
8,731.47 m2 (Note 5)
99.0%
・The transaction agreement for the transfer corresponds to a forward
commitment, etc. (referring to transaction agreements dated forward inwhich settlement and handing over of property is conducted more than
one month after the conclusion of the agreement, and other relatedagreements) stipulated in the Comprehensive Guidelines for Supervisionof Financial Instruments Business Operators, etc. Also, if HHR acts inserious violation of the terms of the transaction agreement (Including
cases where it was found that the representations and warranties under
the transaction agreement were incorrect or incorrect in important
respects), the buyer may cancel the agreement. It has been agreed that
if the agreement is cancelled in such a situation HHR shall pay the buyer
an amount equivalent to 10% of the sale price as a penalty.

(Note 1) The figure (expected value) as of December 10, 2021 is indicated with amounts rounded down to thenearest million yen.
(Note 2) The total area of the asset including the site and the whole building.
(Note 3) The figure as of May 31, 2021 is indicated.
(Note 4) The total of actual figures for the 31st fiscal period (ended November 2020) and 32nd fiscal period (ended
May 2021) is indicated.
(Note 5) Total rent income, security deposit, leasable area, and leased area are indicated with amounts equivalentof 33% quasi co-ownership by HHR.

5

5. Overview of Leasing
H-CUBE MINAMIAOYAMA
Total number of tenants
Principal tenants
Annual rent
Leasable area
Leased area
Occupancy rate
Security deposits

2
ORBIS Inc., Brooks Brothers Japan Ltd.
Undisclosed (Note 1)
774.21m2 (Note 2)
774.21m2 (Note 2)
100.0% (Note 3)
Undisclosed (Note 1)(Note 1) Note undisclosed as tenants’ consent has not been obtained.
(Note 2) The area specified in the lease agreement with each tenant as of today is indicated.
(Note 3) The ratio of the rental area to the leasable area.

6. Overview of Buyer and Seller(1) Overview of Seller
H-CUBE MINAMIAOYAMA
Name
Location
Title and name ofrepresentative

Hankyu Hanshin Properties Corp.
Hankyu Terminal Building, 1-1-4 Shibata, Kita-ku, Osaka City
Ryuichi Morotomi, President and Representative Director

Sale of land, residences and condominiums, land utilization, brokerage andmediation for real estate, extension/reconstruction and renovation and leasemanagement of land and buildings
Capital12,426 million yen (as of March 31, 2021)
Date of establishment February 17, 1947
Net assets and total
Net Assets:
147,846 million yen
assets in the
Total Assets: 502,161 million yen
immediately preceding(as of March 31, 2021)
fiscal year
Major shareholders
and their shareholding Hankyu Hanshin Holdings, Inc.
100.0%
ratio
A unitholder of HHR (investment unit holding ratio: 3.22%). It is
the parent company of the Asset Management Company(investment unit holding ratio: 100%) and falls under the category
Capitalof interested parties, etc. as defined in the Act on Investment
relationship
Trusts and Investment Corporations (Act No. 198 of 1951)(hereafter referred to as the “Investment Trust Act”).
Personnel
There are no personnel relationships to be noted between HHR
relationshipor the Asset Management Company and the seller (as of today).
Relationship between
Business relationships with HHR:
HHR or the AssetManagement fees: 879 thousand yen
Management
Rent paid:
556 thousand yen
Company and the(32nd fiscal period (December 1, 2020 to May 31, 2021)
sellerBusiness
Business relationships with the Asset Management Company
relationship
Rent paid:
59,531 thousand yen(Previous fiscal year (April 1, 2020 to March 31, 2021))
Besides the above, the seller has concluded an information
sharing-related agreement with the Asset Management
Company.
Applicability to The parent company of the Asset Management Company (100%related parties ownership) and is a related party.
Main businessactivities

6(2) Overview of Buyer
Sphere Tower Tennozu
Not disclosed because consent has not been obtained from the transferee domestic corporation regarding
disclosure of the name, etc. There is no capital, personnel or business relationships to note between HHRor the Asset Management Company and the corporation. It is not a related party.
7. Status of Property Acquirers, etc.
H-CUBE MINAMIAOYAMA
Company name
Relationship to
special interested
partiesAcquisition
background,reasons, etc.
Acquisition date
Acquisition pricePrevious owner
Hankyu Hanshin Properties Corp.

Second previous owner
Non-interested party

See 6. Overview of Buyer andSeller above.

－

Development purpose－

November 15, 2017 (site)
The acquisition price is omitted
since the property was owned forover a year.

－－

8. Transaction with Interested Parties, etc.
The buyer of H-CUBE MINAMIAOYAMA fall under interested parties, etc., as defined in the Investment
Trusts Act. Accordingly, the acquisition has been deliberated and approved by the investment management
committee, the compliance committee and the Board of Directors Meeting of the Asset Management
Company in accordance with the Asset Management Company’s rules concerning transactions involving
conflicts of interest set forth in the management guidelines, investment management committee regulations,compliance committee regulations, etc.
9. Overview of Intermediaries(1) H-CUBE MINAMIAOYAMA
Not applicable.
(2) Sphere Tower Tennozu
Not disclosed because consent has not been obtained from the domestic business corporation as theintermediary regarding disclosure of the name, etc. There is no capital, personnel or business
relationships to note between HHR or the Asset Management Company and the corporation. It is not a
related party.
10. Settlement Method, etc.
(1) H-CUBE MINAMIAOYAMA
Collective payment on the planned acquisition date(2) Sphere Tower Tennozu
Payment of deposit within 6 business days from the date of conclusion of the transaction agreement,
and the settlement of the remaining payment on the planned transfer date.

7

11. Schedule of Acquisition and Transfer(1) H-CUBE MINAMIAOYAMA

October 18, 2021
October 18, 2021
December 14, 2021

Resolution of acquisition of the Asset Planned to be Acquired at the AssetManagement Company’s Board of Directors Meeting.
Conclusion of property agreement for the Asset Planned to be Acquired
Payment for and acquisition (planned) of the Asset Planned to be Acquired(2) Sphere Tower Tennozu

October 18, 2021
October 18, 2021
By October 26, 2021
December 10, 2021

Resolution of transfer of the Asset Planned to be Transferred at the AssetManagement Company’s Board of Directors Meeting.
Conclusion of property agreement for the Asset Planned to be Transferred
Receipt of deposit (planned)
Receipt of payment for the balance after deducting the deposit from thetransfer price, and transfer (planned)

12. Future Outlook
There is no impact on the forecast of management status for the fiscal period ending November 2021
(33rd fiscal period: June 1, 2021 to November 30, 2021) due to the asset replacement.

In addition, there

is no adjustment to the forecast of management status for the fiscal period ending May 2022 (34th fiscal
period: December 1, 2021 to May 31, 2022), for the effect is insignificant.

*HHR website: https://www.hankyuhanshinreit.co.jp/eng/<Attached Materials>
・Reference Material 1 Overview of Appraisal Report
・Reference Material 2 Table of Real Estate Portfolio After the Replacement
・Reference Material 3 Property Photograph or Image View and Map of Surrounding Area8

Reference Material 1<Overview of Appraisal Report>
H-CUBE MINAMIAOYAMA

Property nameAppraisal value
Appraisal organization
Date of appraisal

7,300,000,000 yen
DAIWA REAL ESTATE APPRAISALCO.,LTD.
September 15, 2021

Item
Value indicated by the income approach
Value using the direct capitalization (Fixed-term
capitalization) method(1) Operating revenues (a + b - c)a. Income from rental fees, etc.
b. Other income
c. Loss from non-occupancy,etc.
(2) Operating costs (total of a to h)a. Maintenance/Administrative
fees, etc.
b. Utilities
c. Repairs
d. Property management fee
e. Cost for tenant recruitment
f. Public charges and taxes
g. Casualty insurance
premiums
h. Other expenses(3) Net operating income (NOI = (1) − (2))(4) Operating profit on deposit and security(5) Capital expenditures(6) Net cash flow (NCF = (3) + (4) − (5))(7) Capitalization rate

Value using the discounted cash flow (DCF) method
Discount rate

Value
7,300,000,000 yen
7,400,000,000 yen

undisclosed (Note)undisclosed (Note)

234,703,712 yen
2,612,193 yen

546,560 yen
236,769,345 yen
3.2%

7,250,000,000 yen
3.0%

Terminal capitalization rate
Value indicated by the cost approach
Land ratio
Building ratio
Special items toconsider at the time ofmaking adjustments toprovisional calculations
and deciding theappraisal value

Basis for valuation

3.4%

Assessed as the amount obtained by multiplying
assumed deposit, etc. by investment yield, which isassessed from both operational and procurement
aspects.
Assessed by referring to capital expenditures of similar
real estate.
Assessed by comprehensively taking into account thelocation, building conditions, contract terms, etc. of thetarget real estate.
Assessed by comprehensively taking into account theindividuality of the target real estate, referring to theinvestment yield in transactions for similar real estate.
Assessed by comprehensively taking into account future
uncertainly based on the capitalization rate.

5,180,000,000 yen
96.0%
4.0%

The target real estate is a commercial facility located about 200m southeast of Omotesando Station on the Tokyo
Metro Ginza Line. The area has a concentration of roadside flagship stores such as luxury brand shops, and isconsidered to be a favorable location.
In this case, the appraisal value was determined to be 7,300,000,000 yen, based on the assessment of the revenue
price as 7,300,000,000 yen using both the direct capitalization method and the DCF method, and referring to theaccrued price.

The appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estateappraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither a guarantee
nor an obligation, now or into the future, of a sale or purchase at that appraisal value.
Note: The Asset Management Company decided not to disclose these items as no consent has been obtained from the tenants for thedisclosure of rents, etc., the assessment is based on actual results for reference and there is a possibility that disclosure of these items
will affect its competitiveness and damage the interests of unitholders.

9<Overview of Appraisal Report>
Sphere Tower Tennozu

Property nameAppraisal value
Appraisal organization
Date of appraisal

8,250,000,000 yen
Japan Real Estate InstituteMay 31, 2021

Item
Value indicated by the income approach
Value using the direct capitalization method(1) Operating revenues (a + b − c)a. Income from rental fees, etc.

Value
25,000,000,000 yen
25,400,000,000 yen
1,767,883,000 yen
1,474,918,000 yen

b. Other income
c. Loss from non-occupancy,
etc.

382,392,000 yen(2) Operating costs (total of a to h)a. Maintenance/Administrative
fees, etc.
b. Utilities

762,018,000 yen
163,000,000 yen

89,427,000 yen

322,000,000 yen

c. Repairs

52,470,000 yen

d. Property management fee

17,845,000 yen

e. Cost for tenant recruitment

9,748,000 yen

f. Public charges and taxes

182,652,000 yen

g. Casualty insurance
premiums
h. Other expenses(3) Net operating income (NOI = (1) − (2))(4) Operating profit on deposit and security(5) Capital expenditures

3,303,000 yen
11,000,000 yen
1,005,865,000 yen
9,048,000 yen
124,880,000 yen(6) Net cash flow (NCF = (3) + (4) − (5))(7) Capitalization rate

890,033,000 yen
3.5%

Value using the discounted cash flow (DCF) method
Discount rate (1 to 10 years)
Discount rate (from 11 years)

24,500,000,000 yen
3.3%-

Terminal capitalization rate

Value indicated by the cost approach
Land ratio
Building ratio
Special items to consider
at the time of making
adjustments toprovisional calculations
and deciding theappraisal value

3.7%

Basis for valuation

Assessed based on medium- to long-term stable
standard of rental and fees.
Book utilities revenue etc.
Non-occupancy rate is assessed as 4% for offices,
4% for shops, 0% for district cooling and heating
plant, and 42% for parking.
Assessed based on the current contract detail andthe actual amount in the previous FY
Assessed based on the actual amount in theprevious FY
Assessed by referring to the actual amount in theprevious FY, and by considering future management
and operation plans, the level of expenditure ofsimilar real estate, the annual average of repair andrenewal costs in the engineering report, etc.
Assessed by taking into account the current contract
details, etc.
Book annual average amount assessed on renter’s
expected rotation period, regarding costs necessary
for brokerage services for recruiting new tenants,
advertising, etc.
Assessed by considering details of materials related
to public taxes and burden adjustment.
Assessed by taking into account the current contract
details etc.
Book cleaning cost at Tennozu Airu Station, etc.
Assessed as an investment yield of 1.0%.
Assessed by taking into account the level of capital
expenditure of similar real estate, the age of building,and the annual average of repair and renewal costsin the engineering report.
Assessed by comprehensively taking into accountthe individuality of the target real estate, referring to
the investment yield in transaction for similar realestate.
Assessed by comprehensively taking into accountthe individuality of the target real estate, referring to
the investment yield in a transaction for similar realestate.
Assessed in consideration of the aging of buildings,
uncertainly in the leasing market trends, decline inliquidity, etc.

23,900,000,000 yen
76.7%
23.3%

The appraisal value was determined to be 8,250,000,000 yen, by employing the revenue assessed using both
the direct capitalization method and the DCF method, referring to the accrued price, the price of the whole building
and the site being assessed as 25,000,000,000 yen, and the price being multiplied by equity equivalent of 33%
quasi co-ownership.
*The above revenue and accrued price are the amount applied for the whole building and its site.

The appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estateappraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither aguarantee nor an obligation, now or into the future, of a sale or purchase at that appraisal value.

10Reference Material 2<Table of Real Estate Portfolio After the Replacement>
Property Name

Facility(Type of Use)

RegionAcquisition

Acquisition(Planned) Investment(Planned) Date

Price(millions of yen)

KansaiFebruary 1, 2005

6,468

3.9%

RetailKansaiFebruary 1, 2005

7,740

4.6%

RetailKansaiFebruary 1, 2005

6,930

4.2%

November 15, 2005

8,600

HEP Five(14% of the quasi co-ownership of
the trust beneficiary interests)

RetailKitano Hankyu Building
Dew Hankyu Yamada
Takatsuki-Josai Shopping Center

RetailKansai

Nitori Ibaraki-Kita Store (site)

RetailHANKYU NISHINOMIYA GARDENS(28% of the quasi co-ownership of
the trust beneficiary interests)

Ratio

5.2%

June 4, 2020

55

KansaiMarch 29, 2006

1,318

0.8%

RetailKansai

April 16, 2013

18,300

11.0%

AEON MALL SAKAIKITAHANADA(site)

RetailKansaiJune 27, 2013

8,100

4.9%

MANDAI Toyonaka Honan Store(site)

RetailKansaiJune 27, 2013

1,870

1.1%

Kita-Aoyama San cho-me Building

RetailOther

November 12, 2013

1,680

1.0%

RetailKansaiJune 4, 2014

3,100

1.9%

kotocross Hankyu Kawaramachi

RetailKansaiJune 4, 2014

2,770

1.7%

LIFE Shimoyamate Store (site)

RetailKansaiJune 4, 2014

1,421

0.9%

MANDAI Gojo Nishikoji Store (site)

RetailKansaiJune 24, 2014

4,182

2.5%

KOHYO Onohara Store

RetailKansaiJuly 1, 2016

1,631

1.0%

OASIS Town Itami Konoike (site)

RetailKansai November 25, 2016

7,100

4.3%

METS OZONERetail

Other

5,400

3.2%

DAILY QANAT Izumiya Horikawa
Marutamachi Store (site)

February 15, 2018

MANDAI Nigawa Store (site)

RetailKansaiMarch 27, 2018

2,280

1.4%

LAMU Higashiosaka Branch (site)

RetailKansaiMarch 27, 2018

1,850

1.1%

Vessel Inn Hakata Nakasu

RetailOther

March 29, 2018

2,760

1.7%

Valor Takatsuki Store (site)

RetailKansaiMarch 29, 2019

2,258

1.4%

FUNDES JIMBOCHO

RetailOther

March 29, 2019

2,830

1.7%

nanohana Ebisubashi (site)

RetailKansaiMarch 31, 2020

4,230

2.5%

MANDAI Shimoshinjo Store

RetailKansaiMarch 31, 2020

674

0.4%

H-CUBE MINAMIAOYAMA

RetailOther

December 14, 2021

Subtotal
Shiodome East Side Building
Hankyu Corporation Head Office
Building
SHIBAURA RENASITE TOWER

Sphere Tower Tennozu(33% of the quasi co-ownership of
the trust beneficiary interests)
LAXA Osaka

4.0%
66.1%

OfficeOther

February 29, 2008

19,025

11.4%

OfficeKansai

April 10, 2013

10,200

6.1%

OfficeOther

May 28, 2020

Subtotal
Ueroku F Building

6,650
110,197

3,475

2.1%

32,70019.6%

ComplexKansaiNovember 1, 2005

2,980

1.8%

ComplexOther

To be transferred――

ComplexKansaiJanuary 22, 2009

5,122

3.1%

ComplexKansai

December 5, 2018

9,212

5.5%

ComplexKansai

December 5, 2018

6,566

3.9%

23,88014.3%

166,779

100.0%

GRAND FRONT OSAKA(Umekita Plaza and South Building)(equivalent of 4.9% co-ownership)
GRAND FRONT OSAKA(North Building)(equivalent of 4.9% co-ownership)
Subtotal
Total

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Reference Material 3<H-CUBE MINAMIAOYAMA Property photograph><H-CUBE MINAMIAOYAMA Map of Surrounding Area>

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