[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
June 13, 2019
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities code:8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Debt Financing (Refinance) and
Execution of Interest Rate Swap Agreement

Invincible Investment Corporation (“INV”) has determined today to obtain new debt financing torefinance existing debt and has executed an interest rate swap agreement (the “Interest Rate SwapAgreement) today with regards to the new borrowing. Details are as follows.
1. Reason for Borrowing
INV has decided to execute a new loan agreement (the "New Borrowing") today in order to repay
borrowings in the amount of JPY 1,000 million due on June 15, 2019, which is one of the tranches of
the Term Loan (C) (Note1) with a total outstanding amount of JPY 3,000 million.
(Note 1) For details of the Term Loan (C), please refer to “4. Details of Loan to be Repaid” below and the press
releases entitled “Notice concerning New Loan” dated June 13, 2016 and “Notice Concerning Prepaymentof Loans” dated November 30, 2016. Since the maturity date (June 15, 2019) is a holiday (non-businessday), as per the provisions of the contract, the repayment date will be adjusted to the following businessday (June 17, 2019).

2. Details of the New Borrowing (anticipated)< Term Loan (J) >3-Year Tranche(1) Lender(2) Borrowing amount(3) Interest rate, etc.

: Citibank, N.A., Tokyo Branch: JPY 1,000 million: 1-month JPY TIBOR (Base Rate) + spread (0.300%) (Note1)
Variable interest rate

This English language notice is a translation of the Japanese-language notice released on June 13, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1(4) Borrowing method(5) Agreement date(6) Anticipated borrowing date(7) Interest payment date

(8) Principal repayment method(9) Principal maturity date

: Borrowing based on separate term loan agreement dated
June 13, 2019
Unsecured / with no guarantee: June 13, 2019
: June 17, 2019
: (1) The last Japanese business day of each month before theprincipal maturity date, beginning with June 28, 2019, and (2)the principal maturity date
: Lump-sum repayment on the principal maturity date
: June 17, 2022

(Note 1) ・Base rate applicable to each interest calculation period for the interests to be paid on the relevantinterest payment date shall be the 1-month JPY TIBOR announced by Japanese Bankers
Association two Japanese business days prior to the immediately preceding interest payment
date (in case of the initial interest calculation period, two Japanese business days prior to theborrowing date).
・JPY TIBOR announced by the Japanese Bankers Association is available at its website(http://www.jbatibor.or.jp/english/).
・Details of our debt financing is available at the “Borrowings & Investment Corporation Bonds” pageof INV’s website (http://www.invincible-inv.co.jp/eng/cms/loan.html).

3. Loan proceeds, use of proceeds and scheduled timing of disbursement(1) Loan proceeds
JPY 1,000 million(2) Use of proceeds
To be appropriated for the repayment of a tranche of Term Loan (C)(3) Scheduled timing of disbursement
June 17, 2019
4. Details of Loan to be Repaid
Term Loan (C)BalancebeforeRepayment(JPY million)

Repayment
Amount(JPY million)

Balanceafter
Repayment(JPY million)

Interest Rate(annual)

Maturity

Borrowing

Date

MethodJune 15,
2016

1,000

1,000－0.45818%(Note1)

June 15,2019

June 15,2016

1,000－

1,0000.55818%(Note1)

June 15,
2020

June 15,2016

1,000－

1,0000.65818%(Note1)

June 15,
2021

3,000

1,000

2,000

Borrowing
LenderDate

Citibank, N.A.,
Tokyo Branch

Total

Unsecured/
non-guaranteed(Note 1) The interest rates applicable as of June 13, 2019 are shown.

This English language notice is a translation of the Japanese-language notice released on June 13, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

25. Details of the Interest Rate Swap Agreement(1) Reason for Executing the Interest Rate Swap Agreement
In order to hedge the risk of interest rate fluctuations(2) Details of the Interest Rate Swap Agreement
Notional

Interest Rate

Principal(upper：fixed rate payable)

Agreement

ApplicableInterest(JPY(lower: floating rateDate

PeriodPayment Datemillion)

receivable)

June 13,2019

From
June 17, 2019
toJune 17, 2022

The last Japanesebusiness day of eachmonth and the last dayof the applicable period

Counterparty

0.34000 %Nomura Securities
Co., Ltd.

1,000(Note1)

One-month JPY TIBOR +0.30000%(Note1) Equivalent to the principal amount of borrowing by the Term Loan (J) to be implemented on June 17,
2019. By this Interest Rate Swap Agreement, the interest rate of Term Loan (J) will be fixed, in effect,
at 0.34000%.
(Note2) The initial interest calculation period is from June 17, 2019 (inclusive of the date) to June 28, 2019(exclusive of the date and up to one day prior), and the interest calculation period thereafter will be fromthe immediately preceding interest payment date (inclusive of the date) to the relevant interest payment
date (exclusive of the date and up to one day prior).

6. Future outlook
The impact of the New Borrowing and the Interest Rate Swap Agreement on financial results is
minimal and therefore no changes are required for the forecasts of financial results for the fiscal
periods ending June 2019 (from January 1, 2019 to June 30, 2019) and December 2019 (fromJuly 1, 2019 to December 31, 2019).
7. Other matters necessary for investors’ appropriate understanding/judgment of the concerned
information
With respect to the risks associated with the New Borrowing and the Interest Rate SwapAgreement, please refer to the content of “Investment Risks” stated in the securities report for
the fiscal period ended December 2018 (from July 1, 2018 to December 31, 2018) (available inJapanese only) filed on March 26, 2019.

Website of INV: http://www.invincible-inv.co.jp/eng/

This English language notice is a translation of the Japanese-language notice released on June 13, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3[For reference only]■Change in balance of interest-bearing liabilities (anticipated)(Unit：JPY million)
Before the New Borrowing

After the New Borrowing

Increase(As of June 13, 2019)(As of June 17, 2019)(Decrease)

Total loans

224,774

224,774－

Total investment
4,0004,000－
corporation bonds
Total interest-bearing liabilities
228,774
228,774－
Total appraisal value of assets－
493,265493,2651
owned by INV
2
LTV (based on appraisal value) (%)
46.4
46.4
－
(Note 1) As to “Total appraisal value of assets owned by INV”, among the 131 properties owned by INV as of today(including preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel and the overseas
real estate assets (which are “The Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine
Suites Resort”) as well as Spacia Ebisu, which INV has already determined to sell), the appraisal value for the130 properties (excluding preferred equity interest in the TMK) is based on the appraisal value stated in theappraisal reports on the valuation date of December 31, 2018. For the preferred equity interest in the TMK
which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset, the acquisition price (INV’s investmentamount) of such preferred equity interest, JPY 17,845 million, is deemed as the appraisal value and included.
The appraisal value of overseas real estate assets was translated into JPY based on the exchange rate of 1
USD=110.45 JPY which is the foreign exchange forward rate under the foreign exchange forward agreement
which we entered into on July 26, 2018 and became effective as of September 26, 2018.
(Note 2) “LTV (based on appraisal value)” in the above table is calculated according to the following formula:
LTV (based on appraisal value) ＝ Total interest-bearing liabilities (excluding short-term consumption tax loan)
÷ Total appraisal value of assets owned by INV × 100“Total interest-bearing liabilities” does not include the interest-bearing liabilities of the TMK which holds
Sheraton Grande Tokyo Bay Hotel as an underlying asset.
Moreover, while INV disposed of Royal Parks Tower Minami-Senju (the “Property”) on June 7, 2019, the saleproceeds were not appropriated to repayment of existing loans since INV plans to retain substantially all of thesale proceeds in order to acquire additional assets in the future as a part of its asset replacement strategy.
Therefore, LTV (based on appraisal value) is higher than before the disposition of the Property, but it isanticipated to be lower after such acquisition of additional assets. However, we have not determined any
specific acquisitions as of today, and we will announce promptly when determined. Please refer to “Noticeconcerning Sale of Domestic Trust Beneficiary Interest” dated May 28, 2019 for details of the disposition of theProperty.
(Note 3) The amounts are rounded down to the nearest million yen. The percentages are rounded to the nearest one
decimal place.

This English language notice is a translation of the Japanese-language notice released on June 13, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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■Lender formation after the New Borrowing (anticipated)

This English language notice is a translation of the Japanese-language notice released on June 13, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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