October 4, 2018
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of Representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower, 6-10-1 Roppongi,Minato-ku, Tokyo, Japan(Securities code: 8963)
URL: http: //www.invincible-inv.co.jp/eng/
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Issuance of Investment Corporation Bonds
Invincible Investment Corporation (“INV”) hereby announces its decision to issue its investment
corporation bonds (the “Issuance”) today as follows.
1. Summary of the investment corporation bonds(1)

Name: Invincible Investment Corporation 3rd series unsecured bonds (withpari passu conditions among specified investment corporation bonds)(the “Investment Corporation Bonds”)(2)

Total issue amount: 2 billion yen(3)Form of bond certificate: The Act concerning Book-Entry Transfer of Corporate Bonds, Stocks
etc. is applicable to the Investment Corporation Bonds, thus
investment corporation bond certificates will not be issued.

(4)Issue price: ¥100 per ¥100 of each bond(5)Redemption price: ¥100 per ¥100 of each bond

(6)

Interest rate

0.550% per annum(7)

Denomination amount

100 million yen(8)Offering method

Public offering(9)

Offering period

October 4, 2018 (Thursday)(10) Payment date

October 12, 2018 (Friday)(11) Collateral/Guarantee

Neither collateral nor guarantee is applicable, and no assets are
specifically reserved as collateral for the Investment CorporationBonds.

(12) Redemption method anddate

October 12, 2023 (5 years)
The Investment Corporation Bonds may be purchased and cancelledThis English language notice is a translation of the Japanese-language notice released on October 4, 2018 and was prepared solely forthe convenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We
caution readers to undertake investment decisions based on their own investigation and responsibility. This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy
or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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at any time after the payment date, except for the case where the laws
and regulations or the Depository otherwise stipulates.

If thematurity date of the Investment Corporation Bonds falls on the bankholiday, the payment will be moved forward to the previous bankbusiness day.
(13) Interest payment dates

April 12 and October 12 every year (the first interest payment date isto be April 12, 2019)(14) RatingA (Japan Credit Rating Agency, Ltd.)(15) Financial covenants

Negative pledge among unsecured bonds(16) Depository

Japan Securities Depository Center, Inc.

(17) Fiscal agent, issuing agent,Mizuho Bank, Ltd.

and paying agent(18) Underwriting securities
companies

Mizuho Securities Co., Ltd.
SMBC Nikko Securities Inc.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

2. Reason for bonds issuance
INV will issue the Investment Corporation Bonds for the purpose of raising funds to repay its
existing borrowing, as the bonds diversify the financing sources for INV, while at the same time
lowering its financing costs, lengthening the average maturity period of its debt and diversifying thematurity date of its debt.
3. Total amount to be raised, use of funds and scheduled timing of disbursement(1) Total amount to be raised (approximate net proceeds)
1,980 million yen in total(2) Use of funds and scheduled timing of disbursement
The proceeds will be used to repay a portion of New Syndicate Loan (H) in the amount of 2,000
JPY million which is due on October 15, 2018, out of the outstanding amount of 21,925 million of
New Syndicate Loan (H) (the “Repayment”).
(Note)For details on the New Syndicate Loan (H), please refer to “4. Loans to be Repaid” below.

This English language notice is a translation of the Japanese-language notice released on October 4, 2018 and was prepared solely forthe convenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We
caution readers to undertake investment decisions based on their own investigation and responsibility. This translation of the originalJapanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy
or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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4. Loans to be Repaid
New Syndicate Loan (H)(as of October 4, 2018)

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A.,TokyoBranch
Shinsei Bank, Limited
Resona Bank, Limited
Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Dai-ichi Life
Insurance Company,
LimitedThe Nomura Trust andBanking Co., Ltd.
The Hiroshima Bank, Ltd.

Borrowing
Date

BorrowingAmount
Before theRepayment(JPY million)

Repayment
Amount(JPY million)

BorrowingAmountAfter theRepayment(JPY million)

October 13,
2017

2,000

2,000

October 13,
2017

3,700

October 13,
2017

Interest Rate
(Annual Rate)

Maturity
Date－

0.26545%(Note 1)

October
13, 2018－

3,700

0.31545%(Note1)

October
13, 2019

1,868－

1,868

0.36545%(Note 1)

October
13, 2020

October 13,2017

1,867－

1,8670.46545%(Note 1)

October
13, 2021

October 13,
2017

5,365－

5,3650.66545%(Note 1)

October
13, 2022

October 13,
2017

3,565

－

3,5650.76545%(Note 1)

October
13, 2023

October 13,
2017

3,560－

3,5600.86545%(Note 1)

October
11, 2024

21,9252,000

19,925

Total

Borrowing
MethodUnsecured /with noguarantee(Note 1) The interest rates are those applicable for the period from September 28, 2018 to October 30, 2018.
(Note 2) For details of the loan, please refer to the press releases “Notice concerning Debt Financing” dated September 21, 2017 and“Notice concerning Prepayment of Loan” dated May 31, 2018.

Since the maturity date (October 13, 2018) for the borrowing

subject to the Repayment falls on a non-business day, as per provision of contract, the next business day (October 15, 2018) willbe the actual maturity date.

5. Future outlook
The impact of the Issuance and the Repayment to financial results is minimal and therefore nochanges are required for the forecasts of the financial results for the fiscal period ending December2018 (from July 1, 2018 to December 31, 2018) as announced in the “Summary of Financial Results
for the Fiscal Period Ended June 30, 2018” dated August 22, 2018.
6. Other matters necessary for investors’ appropriate understanding/judgment of the concerned
Information
With respect to the risks associated with the Issuance and the Repayment, there will be no changethat substantially affects the matters stated in “Investment Risks” (toshi risuku) stated in thesecurities report (yuka shoken hokokusho) for the fiscal period ended June 2018 (from January 1,2018 to June 30, 2018) filed on September 25, 2018 and the supplemental documents for shelfregistration (hakko toroku tsuiho shorui) filed on October 4, 2018.
Website of INV: http://www.invincible-inv.co.jp/eng
This English language notice is a translation of the Japanese-language notice released on October 4, 2018 and was prepared solely forthe convenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We
caution readers to undertake investment decisions based on their own investigation and responsibility. This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy
or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3[For reference only]■ Balance of interest-bearing liabilities (anticipated)(Unit：million yen)

Total loans
Total investment
corporation bonds
Total interest-bearing
liabilities
Total appraisal value ofassets owned by INV1
LTV (based on appraisalvalue)2 (%)

Before Issuance andAfter Issuance andRepayment
Repayment(As of October 4, 2018) (As of October 15, 2018)
227,873
225,873

Increase(Decrease)-2,000

2,000

4,000

＋2,000229,873

229,873－

515,151

515,151

－

44.4

44.4

－

(Note 1) As to “Total appraisal value of assets owned by INV”, among the 132 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 TK
interest the underlying assets of which are “The Westin Grand Cayman Seven Mile Beach Resort & Spa” and“Sunshine Suites Resort”), the 125 properties held as of June 30, 2018 (excluding preferred equity interest in the TMK)
are based on the appraisal value stated in the appraisal reports on the valuation date of June 30, 2018, and the four
properties acquired from July 2018 onward (excluding the overseas real estate TK interest) are based on the appraisal
value stated in the appraisal reports on the valuation date of June 1, 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 investment amount)of such preferred equity interest, JPY 17,845 million, is deemed as the appraisal value and included. Also, for theoverseas real estate TK interest the underlying assets of which are “The Westin Grand Cayman Seven Mile Beach
Resort & Spa” and “Sunshine Suites Resort”, the acquisition price (INV’s TK investment amount) of such TK interest,
USD 339,836 thousand (JPY 37,534 million, converted into JPY amount via exchange rate of USD 1=JPY 110.45
based on the foreign exchange forward executed on July 26, 2018 and implemented on September 26, 2018), isdeemed as the appraisal value and included.
(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 debt (excluding short-term consumption tax loan)

÷ Totalappraisal value of assets owned by INV × 100“Total interest-bearing liabilities” do not include the interest-bearing liabilities of the TMK which holds Sheraton GrandeTokyo Bay Hotel as an underlying asset.
(Note 3) The amounts are rounded down to the nearest million yen. The percentages are rounded to the nearest one decimalplace.

■ Lender formation after the Issuance and Repayment (anticipated)

This English language notice is a translation of the Japanese-language notice released on October 4, 2018 and was prepared solely forthe convenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We
caution readers to undertake investment decisions based on their own investigation and responsibility. This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy
or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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