Creating peace of mind through honest and committed management.

[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

March 20, 2015
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: 03-3502-4891

Sale of Portfolio AssetIchigo Real Estate Investment Corporation (“Ichigo REIT”) today contracted to sell the Ichigo
Sendai Chuo Building.
1. Sale Overview
Property No./ Name
Asset Type
Building Completion Date
Legal Form of Asset
Acquisition Date
(Original acquisition date)
Sale Price
Forecast Book Value1
Difference between Sale
Price and Forecast Book
Value
Appraisal ValueContract Date
Transfer Date
Settlement Date
Transfer Method

O-35 Ichigo Sendai Chuo BuildingOffice
October 9, 1981
Real estate
November 1, 2011 (Ichigo REIT merger)(June 30, 2006)
560,000,000 yen (excluding fixed asset tax, city planning tax,consumption tax, etc.)
521,040,969 yen
38,959,031 yen
427,000,000 yen (as of October 31,2014)
March 20, 2015
March 26, 2015
March 26, 2015
Real estate sale1

Forecast Book Value is an estimate for book value based upon the most recent book value(October 2014 fiscal period) adjusted for any and all capital expenditure and depreciation
between the most recent book value and the Settlement Date.

12. Sale RationaleIchigo REIT regularly reviews its portfolio for profitability and makes a determination whether
it is in the best interest of shareholders to continue to own each asset based upon its age,maintenance needs, and competitiveness with nearby assets. In this case, Ichigo REIT
concluded that selling the asset and using the sale proceeds to repay an existing loan would
increase shareholder value.
3. Asset Overview
O-35 Ichigo Sendai Chuo Building
Legal Form of AssetLocation
Property RightSizeLandZoning
Coverage Ratio /Floor Area Ratio
Property RightUse
Building
Structure
Total Floor Area
Construction Date
Number of Tenants
Monthly Rent2
Tenant Security Deposits2
Leasable Space
Leased Space
Occupancy
Acquisition PriceAppraiser
Appraisal
DateValue
2

Real estate
3-4-12, Chuo, Aoba-ku, Sendai City, Miyagi
Ownership
568.73 m2
Commercial
80%/600%
Ownership
Office, Retail
SRC/RC B2F/8F
3,696.53 m2
October 9, 1981
15 (as of March 26, 2015)
5,892,000 yen (as of March 26, 2015)
56,591,000 yen (as of March 26, 2015)
2,378.07 m2 (as of March 26, 2015)
2,259.46 m2 (as of March 26, 2015)
95.0% (as of March 26, 2015)
510 million yen
Rich Appraisal Institute Co., Ltd.
October 31, 2014
427 million yen

Monthly Rent and Tenant Security Deposits refer to those stated in the monthly rental contract.
Monthly Rent includes cost of utilities.

2

4. Appraisal Overview
Appraisal Overview
NameAppraisal Value

Ichigo Sendai Chuo Building
427,000,000 yen

AppraiserRich Appraisal Institute Co., Ltd.

Appraisal Date

October 31, 2014
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy LossExpenses
Administrative andMaintenanceExpenses
Utility Expenses
Repair Expenses
PM Fees
Leasing BrokerageFees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
LandProperty

427,000,000 yen

Note
Valuation determined via integrating a direct capitalization
valuation and DCF valuation

420,000,000 yen
74,462,719 yen
82,625,720 yen
8,163,001 yen

Based on rental income, common area service income, parking
lot income, and other income
Based on mid- to long-term vacancy rate

38,941,139 yen
13,006,260 yen

Based on similar assets and past actual amounts

9,495,000 yen
4,748,000 yen
1,936,248 yen

Based on similar assets and past actual amounts
Based on engineering reports and similar assets
Based on similar assets and past actual amounts
Based on the expected turnover rate and tenant acquisition costs
for similar assets
Based on FY2014 actual amounts
Based on the standard of similar assets and past actual amounts
Not applicable591,721 yen
9,030,100 yen
133,810 yen
0 yen
35,521,580 yen
762,614 yen
11,079,000 yen
25,205,194 yen
6.0 %Based on 2.0% investment yield
Based on engineering reports and similar assets
Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

430,000,000 yen
5.9%
6.4%
719,000,000 yen
78.7%
21.3%

Based on transactions of similar assets and the yields of financial
assets with the asset’s individual characteristics taken into
account
Based upon risk-adjusted NOI

Notes
The appraisal value was determined using the income approach, which recognizes the income value that would bereflected in the pricing of typical buyers of such an asset.

35. Buyer Profile
Name

Relationship with Ichigo REITor IRE

The buyer is a domestic operating company, but
did not give consent to disclosure of its name.
The buyer does not have any capital, personnel, or business
relationship of note with Ichigo REIT or IRE. In addition,
the seller is not an interested party as defined in theEnforcement Ordinance of the Investment Trust andInvestment Corporation Law or the internal regulations ofthe Asset Management Company.

6. Broker Profile
Name
Address
Representative
Principal Businesses
CapitalRelationship with Ichigo REITor IRE

Brokerage Fee

Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu, Chuo-ku, Tokyo
Takeo Nakano, President & CEO
Trust banking
247,300 million yen
The broker does not have any capital, personnel, or
business relationship of note with Ichigo REIT/IRE. In
addition, the seller is not an interested party as defined in
the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law or the internal regulations ofthe Asset Management Company.
The broker did not give consent to disclosure of the fee.

7. Use of Sale Proceeds
Ichigo REIT will allocate part of the sale proceeds towards prepayment of existing loans.
Details of the loan prepayment will be announced as soon as they have been decided.
8. Future Outlook
The impact of the sale on Ichigo REIT’s April 2015 fiscal period earnings forecast is minimal
and therefore the forecast is unchanged.

Website of Ichigo REIT: www.ichigo-reit.co.jp/english

4Portfolio Reference Information
1. Post-Sale Portfolio Summary
Before Sale (A)After Sale (B)Difference(B-A)－-0.1 years

Occupancy
96.0%396.0%
Average Building Age
20.8 years4
20.7 years
Diversification by Area –75.1% / 24.9%
75.4% / 24.6%
0.3% / -0.3%
Tokyo Metropolitan Area/Other
5
Areas (as of September 30, 2014)3
As of February 28, 20154
As of March 20, 2015
5
“Tokyo Metropolitan Area” refers to “Central Tokyo” and “Tokyo Metropolitan Area.” “OtherAreas” refers to “Four Major Regional Cities” and “Other Regional Cities.”
2. Post-Sale Portfolio Assets

No.

Property

AreaO-02O-03
O-04
O-05
O-06
O-07
O-08
O-09
O-10
O-11
O-12
O-14
O-15
O-16
O-17
O-18
O-19
O-20
O-21
O-22
O-23
O-24
O-25
O-26
O-27
O-28
O-29
O-33

Ichigo Nishisando Building
Ichigo Mita Building
Ichigo Nanpeidai Building
Ichigo Hanzomon Building
Ichigo Hijirizaka Building
Ichigo Shibuya Kamiyamacho Building
Ichigo Akasaka 5 Chome Building
Ichigo Shibakoen Building
Ichigo Ebisu Nishi Building
Ichigo Ginza 612 Building
Ichigo Uchikanda Building
Ichigo Yotsuya 4 Chome Building
Ichigo Tameike Building
Ichigo Jimbocho Building
Ichigo Hakozaki Building
Ichigo Kudan 2 Chome Building
Ichigo Kudan 3 Chome Building
Ichigo Gotanda Building
Ichigo Shin-Yokohama Building
Ichigo Minami-Ikebukuro Building
Ichigo Nakano North Building
Ichigo Eitai Building
Ichigo Yokosuka Building
Ichigo Ikejiri Building
Route Ikebukuro Building
Ichigo Nishi-Gotanda Building
Ichigo Kichijoji Building
Ichigo Meieki Building

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central TokyoCentral Tokyo
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Central Tokyo
Tokyo Metropolitan Area
Four Major Regional Cities

5AcquisitionPrice(mm yen)% ofPortfolio

3,254
2,740
1,920
1,550
1,200
1,505
735
1,100
1,917
1,773
1,140
550
580
1,820
1,150
763
844
5,060
1,816
1,460
764
1,490
971
2,030
639
765
2,160
837

2.6%
2.2%
1.6%
1.3%
1.0%
1.2%
0.6%
0.9%
1.6%
1.4%
0.9%
0.4%
0.5%
1.5%0.9%
0.6%
0.7%
4.1%
1.5%
1.2%
0.6%
1.2%
0.8%
1.6%
0.5%
0.6%
1.8%
0.7%

No.
O-34
O-37
O-38
O-39
O-40
O-42
O-44
O-46
O-47
O-48
O-49
O-50
O-51
O-52
O-53
O-54
O-55
O-56
O-57
O-58
Z-01
Z-02
Z-03
Z-04
Z-05
Z-06
Z-07
Z-08
Z-09
Z-10
Z-11
Z-12
Z-13
Z-14
R-04
R-06
R-09

Property

Area

Ichigo Sakae Building
Ichigo Marunouchi Building
Ichigo Toyamaeki-Nishi Building
Ichigo Mirai-Shinkin Building
Ichigo Saga Building
Ichigo Takamatsu BuildingAkita Sanno 21 Building
Ichigo Kanda-Nishikicho Building
Ichigo Akihabara North Building
Ichigo Sakaisuji Honmachi Building
Ichigo Kanda Ogawamachi Building
Ichigo Hatchobori Building
Ebisu Green Glass
Ichigo Omori Building
Ichigo Takadanobaba Building
Ichigo Omiya Building
Ichigo Sagamihara Building
Ichigo Ofuna Building
Ichigo Sendai East Building
Ichigo Kumamoto Building

Four Major Regional Cities
Four Major Regional Cities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Four Major Regional Cities
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Other Regional Cities
Other Regional Cities
Subtotal - Office (48 Properties)
Falcon Shinsaibashi Building
Four Major Regional Cities
Fiesta Shibuya
Central Tokyo
Burc Omori
Tokyo Metropolitan Area
Pagoda Asakusa
Tokyo Metropolitan Area
Regalo Building
Tokyo Metropolitan Area
Ichigo Yokohama-Nishiguchi Building Tokyo Metropolitan Area
El Centro Sapporo
Four Major Regional Cities
Daimyo Balcony
Four Major Regional Cities
Konami Sports Club Izumi Fuchu
Other Regional Cities
Ichigo Shibuya Bunkamura-DoriCentral Tokyo
Building
Twicere Yokohama Isogo
Tokyo Metropolitan Area
(Retail Section)
Lions Square Kawaguchi
Tokyo Metropolitan Area
Ichigo Shin Yokohama Arena-Dori
Tokyo Metropolitan Area
Building
Ichigo Kamata Building
Tokyo Metropolitan Area
Bureau Takanawadai
Central Tokyo
B-Site Hamamatsucho
Central Tokyo
Ichigo Serviced Apartments Ginza
Central Tokyo
Subtotal - Others (17 Properties)
Total (65 Properties)

6

Acquisition
Price(mm yen)

% ofPortfolio

4,705
6,710
1,650
1,158
659
3,010
560
2,130
5,500
1,940
2,210
1,905
5,900
3,850
1,580
3,430
1,1742,000
1,840
1,450
95,894
3,410
1,970
3,218
1,640
1,310
903
558
638
1,210

3.8%
5.4%
1.3%
0.9%
0.5%
2.4%
0.5%
1.7%
4.5%
1.6%
1.8%
1.5%
4.8%
3.1%
1.3%
2.8%
1.0%
1.6%
1.5%
1.2%
77.8%
2.8%
1.6%
2.6%
1.3%
1.1%
0.7%
0.5%
0.5%
1.0%

2,400

1.9%

1,620

1.3%

2,430

2.0%

1,700

1.4%

1,400
1,360
701
946
27,414
123,308

1.1%
1.1%
0.6%
0.8%
22.2%
100.00%