Issue Date: May 17, 2013
Issue No.: 13000062

SUMMARYAPPRAISAL OF THE CONDOMINIUM IN EBISU 2 CHOME
SHIBUYA-KU, TOKYO, JAPANXYZ Bank Limited
Muromachi Building
1-2-3 Nihonbashi-Muromachi, Chuo-ku
Tokyo 103-8000
Japan
Re:

THE CONDOMINIUM IN EBISU 2 CHOME SHIBUYA-KU, TOKYO

Dear Sir or Madame:
As requested, we have prepared an appraisal of the above referenced property located at X
banchi X, Ebisu 2 chome, Shibuya-ku, Tokyo. The subject property is one unit within acondominium.
The purpose of this appraisal is to provide the asset value of the property’s unencumbered
fee simple estate. This appraisal was prepared in conformity with, and subject to, theJapanese Appraisal Standards.
Attached is our appraisal report in Japanese, which documents the investigation andanalyses of the economics of the subject property. Based on our analyses and subject to ourcertification, inclusive of basic assumptions and limiting conditions, we have concluded
that as of May 13, 2013, the asset value of the subject property’s unencumbered fee simple
estate was:
FIFTY SEVEN MILLION, SEVEN HUNDRED THOUSAND YEN¥57,700,000.Sincerely,

SANYU APPRAISAL CORPORATION______________________ Sanyu Appraisal Corporation _______________________

1THE SUBJECT PROPERTYPROPERTY IDENTIFICATION:

X banchi X, Ebisu 2 chome, Shibuya-ku, Tokyo, Japan

Whole Building
Building Name

The Hiroo Residence

Building Structure

Reinforced concrete building

Roof Structure

Flat roof

Number of Stories

7 stories with a basement

Floor Area

Total
1F
2F
3F
4F
5F
6F
7F
B1F

2,043.25 sqm
320.90 sqm
367.42 sqm
305.51 sqm
294.30 sqm
257.91 sqm
167.29 sqm
167.29 sqm
162.63 sqm

LandResidence Indication

2-X-X, Ebisu, Shibuya-ku, Tokyo

Lot Number

X ban X, Ebisu 2 chome, Shibuya-ku, Tokyo

Area

660.56 sqm

Right to Use the Site

Ownership:
ABC Homes Corporation(5,854/195,274)

Exclusively Owned Unit
Registered Number

XX ban X no 702, Ebisu 2 chome

Unit Number

702

Building TypeHouse

Building Structure

Reinforced concrete building

Number of Stories

1 story (9F)

Floor Area

52.97 sqm

Owner Name

ABC Homes Corporation

Annex Building
Registered Number

XX ban X no 702-1, Ebisu 2 chome

Building Type

Storage

Building Structure

Reinforced concrete building

Number of Stories

1 story (B1F)

Floor Area

2.32 sqm

Owner Name

ABC Homes Corporation______________________ Sanyu Appraisal Corporation _______________________

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CONDITIONS OF APPRAISALPROPERTY TYPE:

Tenant occupied dividedly owned building and site

INTEREST APPRAISED:Fee simple interest

TYPE OF VALUE:

Market value

DATE OF VALUE:

May 13, 2013

DATE OF INSPECTION:

May 13, 2013

OVERVIEW OF THE SUBJECT PROPERTYZONING:
City Planning AreaZoningUrbanization promotion area
Semi-industrial district

Building Coverage Ratio

60%

Floor Area Ratio (FAR)

300%

AREA MARKET TREND:
Condominium Price Range¥900,000/sqm - ¥1,150,000/sqm
The market is showing signs that land and condominium
prices are bottoming out against the backdrop of heightened
expectations to new government's adventurous economicpolicies.
The potential customers are individuals or corporations whopurchase for the purpose of their own use or investment. They
are likely to screen properties to find those that best meet theirneeds such as certain living amenities or yieldability.

PROPERTY DESCRIPTION:Neighboring Environment

The subject’s neighborhood is a residential area containing
medium high-rise apartment and office buildings and isapproximately a seven-minute walk to Hiroo Station, along
the Tokyo Metro Hibiya Subway Line. The town’s scenery is
relatively orderly.

Year Built

February 2013 (Building Age: 0.2 years)

Building Grade

Average

Maintenance Condition

Average

Management Type

Commissioned Management (details unknown)

Elevator

Available______________________ Sanyu Appraisal Corporation _______________________

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Subject Unit
Sunshine/Natural Drafts

Average

View

Average

Noise/ Vibration

None

Floor

7th floor of a 7-story building

Location

Corner unit

Orientation of Openings

Northwest

Floor Layout

2 bedrooms with a living /dining room and kitchen

Car Parking

None

Self Storage (Trunk Room)

Available

Balcony

Available

Market CompetitivenessExcellent______________________ Sanyu Appraisal Corporation _______________________

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PRICE OF THE SUBJECT UNIT
SALES COMPARISON APPROACH
ABC

Location

Ebisu 2 chomeNishiazabu 3 chome

Minamiazabu 1 chome

Sales Price¥1,097,868/sqm¥1,082,057/sqm¥1,036,998/sqm

Floor Area

43.63 sqm

58.13 sqm

38.38 sqm

Transaction Date

November 2011

March 2013

September 2012

Traffic AccessHiroo St. 500m

Hiroo St. 650m

Azabu juban St. 720m

Building Grade

Fair

Very Good

Average

Building Age

3.0 years

3.0 years

2.0 years

619

11

Floor/Layout

5F/1LDK

5F/1LDK

5F/1LDK

Adjusted Price¥1,080,000/sqm¥936,000/sqm¥1,020,000/sqm

Comparable Sales

Number of Stories¥1,010,000/sqm

Comparison Price

Exclusively Owned Unit
Difference
Correction Rate

Standard Price¥1,010,000/sqm ×

107/100

Size Adjustment

×106/100

Floor Area

×52.97 m2Price≒¥60,700,000(¥1,150,000/sqm)

Annex Building
Difference
Correction Rate

Standard Price¥517,000/sqm

×100/100

Size Adjustment

×

Sales Comparison Approach Value:

100/100

Floor Area

×

2.32 m2Price≒¥1,200,000(¥517,000/sqm)¥61,900,000 (¥1,120,000/sqm)______________________ Sanyu Appraisal Corporation _______________________

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INCOME CAPITALIZATION APPROACH* Rental conditions (income) are based on the assumptions.
Item(1)

AmountTotal Income

Rentable Area: House - 58.54 sqm
Rent: ¥265,000/month (¥4,527/sqm)
Common Area Maintenance Fee: included into rent
Vacancy Ratio: 5.0%

(2)

Total Expense(3)

Net Operating Income(4)

Profit from Investment of Deposit
Capital Expenditure(5)

Net Cash Flow

(6)

Capitalization Rate

¥3,146,876

OER(Total Expense / Total Income): 20.4%¥2,504,828(1) - (2)¥5,035¥39,600¥2,470,263(3) + (4)5.0%

Income Capitalization Approach Value

Income Capitalization Approach Value:¥642,048¥49,400,000(5) / (6)(¥893,000/sqm)¥49,400,000 (¥893,000/sqm)

VALUE CONCLUSIONS
Sales Comparison Approach
Income Capitalization Approach
Final Conclusion of Market Value¥61,900,000(¥1,120,000/sqm)¥49,400,000(¥893,000/sqm)¥ 57,700,000(¥1,040,000/sqm)

The Sales Comparison Approach value was derived from comparable sales of similar areas and arevalue indications showing market conditions that reflect current trends.
In contrast, the Income Capitalization Approach value was mostly based on assumption inestimating its incomes and expenses. Although it was estimated lower compared to the Sales
Comparison Approach value, it is thought to be due to that occupant comfort is valued more thanyieldability in the subject area.
Therefore, we gave weight to the Sales Comparison Approach value while giving consideration to
the balance with the Income Capitalization Approach value.

______________________ Sanyu Appraisal Corporation _______________________

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