<Provisional translation>
November 8, 2018

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:
Hiroshi Yoshida
General Manager, IR and Public Relations Department
Email: IR_PR@hhram.co.jp

Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Interest and Domestic Real
Estate, Commencement of Leasing, and Transfer of Domestic Trust Beneficiary Interest
Hankyu Hanshin REIT, Inc. (hereafter “Hankyu Hanshin REIT”) hereby notifies that Hankyu Hanshin REIT AssetManagement, Inc., the asset management company that Hankyu Hanshin REIT has selected to manage its
assets (hereafter the “Asset Management Company”), today decided to make the following acquisition,commencement of leasing and transfer of assets.
Also, based on Paragraph 2, Article 201 of the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951; including subsequent revisions; hereafter the “Investment Trust Act”), the Asset Management
Company has as of today acquired consent from Hankyu Hanshin REIT based on the approval of Executive
Meeting of Hankyu Hanshin REIT regarding the acquisition of GRAND FRONT OSAKA (Umekita Plaza andSouth Building; equivalent of 4.9% co-ownership) and GRAND FRONT OSAKA (North Building; equivalent of
4.9% co-ownership) among the three assets planned to be acquired (defined in 2. Reason for Acquisition andTransfer below). For details, please see 7. Transactions with Interested Parties, etc. below.
Details
1. Overview of Acquisition and Transfer(1) Overview of Acquisition(A) GRAND FRONT OSAKA (Umekita Plaza and South Building) (equivalent of 4.9% co-ownership)1) Specified asset type:
Trust beneficiary interest (Trustee: Sumitomo Mitsui Trust Bank, Ltd.)
2) Property name:
GRAND FRONT OSAKA (Umekita Plaza and South Building)(equivalent of 4.9% co-ownership)3) Planned acquisition price:
9,212,000,000 yen (excluding acquisition-related expenses, property
tax, city planning tax and consumption tax, among others)4) Appraisal value:
10,100,000,000 yen (Date of appraisal: September 30, 2018)
5) Planned acquisition date:
December 5, 2018 (planned)
6) Seller:
Hankyu Corporation
7) Acquisition fund:
Proceeds from the issuance of new investment units as indicated in“Notice Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” dated today, new borrowings as indicatedin “Notice Concerning Debt Financing” dated today, cash on hand andfunds procured from the transfer of LaLaport KOSHIEN (site) (planned).
(B) GRAND FRONT OSAKA (North Building) (equivalent of 4.9% co-ownership)
Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
11) Specified asset type:2) Property name:3) Planned acquisition price:4) Appraisal value:
5) Planned acquisition date:
6) Seller:7) Acquisition fund:

Trust beneficiary interest (Trustee: Sumitomo Mitsui Trust Bank, Ltd.)GRAND FRONT OSAKA North Building(equivalent of 4.9% co-ownership)
6,566,000,000 yen (excluding acquisition-related expenses, property tax,
city planning tax and consumption tax, among others)
7,150,000,000 yen (Date of appraisal: September 30, 2018)
December 5, 2018 (planned)
Hankyu Corporation
Proceeds from the issuance of new investment units as indicated in“Notice Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” dated today, new borrowings as indicated in“Notice Concerning Debt Financing” dated today, cash on hand andfunds procured from the transfer of LaLaport KOSHIEN (site) (planned).

(C) (Tentative name) Valor Takatsuki Store (site)1) Specified asset type:
Right of ownership
2) Property name:(Tentative name) Valor Takatsuki Store (site)
3) Planned acquisition price:
2,258,500,000 yen (excluding acquisition-related expenses, property tax,
city planning tax and consumption tax, among others)4) Appraisal value:
2,270,000,000 yen (Date of appraisal: September 30, 2018)
5) Planned acquisition date:
March 29, 2019 (planned)
6) Seller:
Hankyu Hanshin Properties Corp. (Note)
7) Acquisition fund:New borrowings as indicated in “Notice Concerning Debt Financing”
dated today and cash on hand (planned)(Note) A transaction agreement will be concluded between Hankyu Hanshin REIT and Hankyu Hanshin Properties
Corp. but the ownership rights of the property are held by Hanshin Electric Railway Co.,Ltd. as per the registry
as of the date of this document and shall be directly transferred to Hankyu Hanshin REIT. The planned
acquisition price indicated is the transaction price indicated in the transaction agreement between Hankyu
Hanshin REIT and Hankyu Hanshin Properties Corp.

(2) Overview of Transfer
LaLaport KOSHIEN (site)1) Specified asset type:2) Property name:3) Planned transfer price:4) Appraisal value:
5) Planned transfer date:
6) Planned buyer:

Trust beneficiary interest
LaLaport KOSHIEN (site)
7,960,000,000 yen
7,960,000,000 yen (Date of appraisal: September 30, 2018)
December 3, 2018 (planned)

Hanshin Electric Railway Co.,Ltd.

2. Reason for Acquisition and Transfer
As a result of continued negotiations with Hankyu Hanshin Holdings Group (hereafter sometimes referred toas the “Sponsor Group”) for improving the quality of Hankyu Hanshin REIT’s portfolio and increasing its asset
size, it has been decided that a strategic asset replacement (hereafter the “Replacement”), in which urban
large-scale complex facilities in central Osaka (GRAND FRONT OSAKA (equivalent of 4.9% co-ownership)(Note 1) owned by the Sponsor Group and a community-based retail facility ((Tentative name) Valor Takatsuki
Store (site)) (total of three properties; hereafter the “Three Assets Planned to be Acquired”) are acquired anda community-based retail facility owned by Hankyu Hanshin REIT LaLaport KOSHIEN (site) (hereafter the“Asset planned to be transferred”) is transferred, will be conducted.
Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
2

GRAND FRONT OSAKA (equivalent of 4.9% co-ownership) is located on a prime area (Note 2) near
Umeda Station, an area including the largest terminal (passenger basis) in West Japan with an average of 2.3
million passengers per day, and comprises cutting-edge, high-rise, high-spec buildings. As such, Hankyu
Hanshin REIT believes that the acquisition of the properties will contribute to increasing unitholder value.
With regards to the selection of new tenants for the property, Hankyu Hanshin REIT arrived at decisions byjudging the operating plans of the assets that are to attract tenants, consistency with management policies,
the possibility of continued stable contracting, etc. while taking care to prevent transactions with anti-social
forces and utilizing credit research, etc. by research companies and such. Also, a master lease method inwhich the current lessee, etc. is made to be the master lessee may be introduced for the purpose of
establishing smooth relationships with existing tenants and maintaining effective operation and management.
The acquisition of (Tentative name) Valor Takatsuki Store (site) will be an acquisition of a development
project of the Sponsor Group , following the acquisition of KOHYO Onohara Store in July 2016. The property
is located in a dominant area (Note 3) of the Sponsor Group and is a community-based retail facility for whichstable cash flow is expected. As such, Hankyu Hanshin REIT believes that the acquisition of the property willcontribute to increasing the stability of the overall portfolio.
As for LaLaport KOSHIEN (site), in acquiring GRAND FRONT OSAKA (equivalent of 4.9% co-ownership)from the Sponsor Group, negotiations were held with the Sponsor Group and a suggestion to transfer
LaLaport KOSHIEN (site) was presented. Hankyu Hanshin REIT agreed the proposal including acquisition of
GRAND FRONT OSAKA (equivalent of 4.9% co-ownership) and transfer the property as it deemed that thesuggestion was in line with its strategy of increasing the ratio of properties located in city centers and would
also lead to enhancing the quality of the portfolio such as by increasing unrealized gain and decreasing the
average building age ((expected) from the end of the 27th fiscal period) as well as increasing the asset size.
(Note 1) GRAND FRONT OSAKA (equivalent of 4.9% co-ownership) is the compiled name for GRAND FRONT OSAKA(Umekita Plaza and South Building) (equivalent of 4.9% co-ownership) and GRAND FRONT OSAKA (North
Building) (equivalent of 4.9% co-ownership) planned to be acquired. In calculating the total number ofproperties, GRAND FRONT OSAKA (Umekita Plaza and South Building) (equivalent of 4.9% co-ownership)
and GRAND FRONT OSAKA (North Building) (equivalent of 4.9% co-ownership) are each counted as one
property. The same follows hereafter.
(Note 2) Prime area means that the location is favorable in terms of access from important transportation hubs such aslarge-scale terminal stations.
(Note 3) “Dominant area” refers to areas along Hankyu Hanshin lines where it is particularly deemed that the Hankyu
Hanshin Holdings Group has endeavored to increase the value of the lines through the development andoperation of excellent residences, retail facilities, entertainment facilities, etc. and attraction of educational
institutions and such, and has initiated development together with local peoples. The same follows hereafter.

Hankyu Hanshin REIT evaluated the following points upon deciding the acquisition of the Three Assets
Planned to be Acquired.
(A) GRAND FRONT OSAKA (equivalent of 4.9% co-ownership)
The property is a large-scale urban complex facility comprised of a high-spec office building, retail facility
and hotel directly connected to JR Osaka Station and is near Hankyu Umeda Station, Hanshin Umeda Stationand Umeda Station on the Osaka Metro Midosuji Line.
The office section of the properties is superior in terms of its location and size and also boasts rarity. The
facility standards and forms are the highest levels of the day. As such, it is thought that the appeal to potential
tenants will be strong even in the medium to long term.
Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
3The buildings to be occupied by retail tenants are comprised of Umekita Plaza, the South Building andNorth Building, the large-scale offices and a hotel that were established together, and in particular, Hankyu
Hanshin REIT believes that the elements of differentiation from other facilities are the Knowledge Capital(Note) in which the North Building is completed with various facilities for people to interact in such as large
and small offices, salons, labs, show room and theater.
The Intercontinental Hotels Group which operates the hotel section is one of the world’s largest hotel groups
with hotel projects in more than 100 countries and regions that it develops through its many affiliates and isglobally renowned for its brand strength and operational capabilities.
Also, Umekita Phase 2 is attracting attention as a large development project on the west side of theproperties and the participation of Hankyu Corporation from the Sponsor Group has been determined.
Furthermore, a new station is scheduled to open (Tentative name: Kita-Umeda Station) in the spring of 2023
in the development area for Umekita Phase 2, among other things, and thus Hankyu Hanshin REIT believes
the potential of the Umeda area including the properties will continue to grow.
(Note)

Knowledge Capital is the operator of offices, etc. serving as the base for the realization of intellectual creationand interaction established on the lower section of GRAND FRONT OSAKA (North Building) (equivalent of
4.9% co-ownership) as well as office facilities.

(B) (Tentative name) Valor Takatsuki Store (site)
The property is a community-based retail facility located in a dominant area of the Sponsor Group and
Takatsuki-shi Station on the Hankyu Railway Kyoto Line is the nearest station to the property. Takatsuki City
where the property is located sits roughly in between Osaka City and Kyoto City. Along with the Hankyu
Railway Kyoto Line, the JR Kyoto Line also runs through the city which is popular due to its convenience as acommuter town. As the number of households is also increasing, the location has ample trade area for theformation of a community-based retail facility.
Valor Holdings Co., Ltd., the tenant of the property, has supermarkets at its center of business and also
develops home improvement shops, drugs stores, sports clubs, etc. With supermarkets, instead of retail wherepurchased products are simply sold, it aims to construct business model of production and retail in which every
step from production to distribution and sales are handled. Also, the company is focusing on runningsupermarkets with a particular emphasis on perishable foods (dressed meat, fruits, vegetables and daily
dishes).
The average yield after depreciation of the portfolio after the Replacement (planned) is expected to be
maintained at the same 3.8% level as at the end of the 26th fiscal period (ended May 2018).

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
4

[Status of Portfolio]

End of26th fiscal
period(endedMay 2018)

Number ofproperties
Date ofacquisition/transfer(planned)
Acquisition/transfer
price (planned)

27
properties

Assetplanned tobetransferred

Three assets planned to be acquired

LaLaport
KOSHIEN(site)

GRAND FRONTOSAKA (Umekita
Plaza and South
Building)(equivalent of
4.9%
co-ownership)

GRAND FRONTOSAKA (North
Building)(equivalent of
4.9%
co-ownership)(Tentative
name)
Valor
TakatsukiStore(site)

1 property

1 property

1 property

1 property

December 3,
2018

December 5,
2018

December 5,
2018

March 29,
2019

7,960
million yen

9,212
million yen

6,566
million yen

2,258
million yen

153,918
million yen

Asset scale(Average) NOI
yield (Note 1)(Average) yield
after depreciation(Note 1)
Unrealized
gain/loss(Note 2)After
plannedasset
replacement(Note 3)29 properties

164,605
million yen

5.0%

4.0%

4.3%

4.6%

4.3%

4.9%

3.8%

4.0%

3.7%

3.8%

4.3%

3.8%

22,704
million yen

207
million yen

787
million yen

496
million yen-25
million yen

23,640
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 totalacquisition planned price. (Average) NOI yield and (Average) yield after depreciation are calculated based on thefollowing figures.
・End of 26th fiscal period: Actual figures for the 26th fiscal period. (*1)
・Asset to be transferred: Actual figures for the 26th fiscal period.
・Assets to be acquired: For GRAND FRONT OSAKA (equivalent of 4.9% co-ownership), the first fiscal year’s
operating revenues and operating costs using the DCF method as indicated in the appraisal reports are used;
For (Tentative name) Valor Takatsuki Store (site), the second year’s (*2) operating revenues and operating costs
using the DCF method as indicated in the appraisal report are used.
・After the Replacement (planned): Figures after adding the figures of the Asset Planned to be Transferred and theThree Assets Planned to be Acquired to the actual figures for the 26th fiscal period (*1)(*1) For METS OZONE, LAMU Higashiosaka Branch (site) and Vessel Inn Hakata Nakasu, figures are calculatedusing the first fiscal year’s operating revenues and operating costs stated in the appraisal reports inaccordance with the DCF method. For MANDAI Nigawa Store (site), figures are calculated using the second
fiscal year’s operating revenues and operating costs stated in the appraisal reports in accordance with the
DCF method.
(*2) The current building is under construction and since the rent from September 6, 2018 (the completion date)and March 6, 2019 shall be an amount half that of the rent scheduled to be received thereafter, the second
year’s figures are used.
(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 26th fiscal period.
・Assets to be acquired: Figures calculated based on the book value (expected value) which are the total of theacquisition price (planned) and acquisition expenses that is to be recorded as asset pursuant to the accounting
policy of Hankyu Hanshin REIT.
・After the Replacement (planned): Figure obtained by adding/subtracting unrealized gain/loss of the Asset
Planned to be Transferred and the Three Assets Planned to be Acquired as well as expected capital
expenditures and depreciation in the 27th and 28th fiscal periods to/from unrealized gain/loss at the end of theDisclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
5

26th 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 Three Assets Planned to be acquired (as for unrealized gain/loss, expected
capital expenditures and depreciation in the 27th and 28th fiscal periods are also added/subtracted) after the end of
the 26th fiscal period and may differ from actual figures.

3. Details of the Assets Planned to be Acquired and Transferred(1) Details of Assets Planned to be Acquired(A) GRAND FRONT OSAKA (Umekita Plaza and South Building) (equivalent of 4.9% co-ownership)
GRAND FRONT OSAKA (Umekita Plaza and South Building)
Property name(equivalent of 4.9% co-ownership)
Specified asset type
Trust beneficiary interest
Trustee
Sumitomo Mitsui Trust Bank, Ltd.
Trust period
December 5, 2018 to November 29, 2024
Planned acquisition
9,212,000,000 yen
price
10,100,000,000 yen (Date of appraisal: September 30, 2018)
Appraisal value(Appraisal organization: Japan Real Estate Institute)
Location Lot Number
4-1 (Umekita Plaza), 4-20 (South Building) Ofuka-cho, Kita-ku, Osaka City
Land
Building
80%
Building Month/
February 2013
coverageYear built(Umekita Plaza) andMarch 2013 (South
Building)
Floor area
800%
Structure/
Reinforced concrete
ratio
Floorsand steel-frame
structure with flat roof /two floors with two
underground floors(Umekita Plaza)
Steel-frame andsteel-frame reinforced
concrete structure withflat roof / 38 floors withthree undergroundfloors (South Building)
Zone use
Commercial district
Use
Shop and parking lot(Umekita Plaza)
Office, shop andparking lot (South
Building)
2
2
Site area
20,488.08 m
Total floor
10,226.10 m(Note 1)(equivalent of 100%area
(Umekita Plaza)2
co-ownership)
181,371.39 m(South Building)(equivalent of 100%
co-ownership)Form ofRight of ownership andForm ofRight of ownershipownershipleased-land rightownership
Design company
Nikken Sekkei Ltd., Mitsubishi Jisho Sekkei Inc. and NTT Facilities Inc.
(In addition to the above, Takenaka Corporation and Obayashi Corporation
were involved in detailed design)
Construction company
Obayashi Corporation and Takenaka Corporation
Building recognition
The Building Center of Japan, Inc.
organization
Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
6

Property manager
Earthquake PML(evaluators)
Collateral

Other matters to note

Undisclosed (Note 2)
2.1% (ERS Corporation and OYO RMS Corporation)
None
・The consent of the co-owners of the property, etc. (including the trustee) is
required with regard to the transfer of co-ownership interest held by thetrustee and trust beneficiary interest held by Hankyu Hanshin REIT.
・According to the co-ownership agreement concluded between Hankyu
Hanshin REIT, the Asset Management Company, the trustee, Hankyu
Hanshin Properties Corp. and Hankyu Corporation, decision making ofcertain matters concerning the interest held by the trustee and Hankyu
Corporation shall be determined with the agreement of both parties uponsincere negotiations between the two.
2

(Note 1)Site area includes area of 9,917 m of leased land section.

(Note 2)

Undisclosed as consent of co-owner, etc. is not obtained.

(Note 3)

With the acquisition of the property and GRAND FRONT OSAKA (North Building) (equivalent of 4.9%
co-ownership), Hankyu Hanshin REIT is scheduled to acquire restitution rights for 490,000 yen of funds
concerning GRAND FRONT OSAKA TMO General Incorporation Association, which runs businesses related
to the revitalization of the area centering on GRAND FRONT OSAKA, the improvement of the environment
and the formation of communities, from Hankyu Corporation for the planned acquisition price of 490,000 yen(the planned acquisition price indicates the sale price (not including consumption tax, regional consumption
tax, transaction fees and other costs) as shown in the transaction agreement). Furthermore, the restitution
rights above may not be transferred separately from the property or GRAND FRONT OSAKA (North Building)(equivalent of 4.9% co-ownership).

(B) GRAND FRONT OSAKA (North Building) (equivalent of 4.9% co-ownership)
Property nameSpecified asset type
Trustee
Trust period
Planned acquisition
priceAppraisal value
Location Lot Number
Land
Building
coverage
Floor area
ratio

Zone use
Site area

Form ofownership
Design company

GRAND FRONT OSAKA (North Building) (equivalent of 4.9% co-ownership)
Trust beneficiary interest

Sumitomo Mitsui Trust Bank, Ltd.
December 5, 2018 to November 29, 2024
6,566,000,000 yen
7,150,000,000 yen (Date of appraisal: September 30, 2018)(Appraisal organization: Japan Real Estate Institute)
3-1 Ofuka-cho, Kita-ku, Osaka City
80%
Building Month/
February 2013
Year built
600%
Structure/
Steel-frame andFloorssteel-frame reinforced
concrete structure withflat roof / 38 floors withthree undergroundfloorsCommercial district
Use
Office, hotel shop andparking lot
2
2
22,680.03 m
Total floor
290,030.59 m(equivalent of 100%area
(equivalent of 100%
co-ownership)co-ownership)
Right of ownership
Form ofRight of ownershipownership
Nikken Sekkei Ltd., Mitsubishi Jisho Sekkei Ltd. and NTT Facilities Inc.
(In addition to the above, Takenaka Corporation and Obayashi Corporation
were involved in detailed design)

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
7

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

Other matters to note

Obayashi Corporation and Takenaka Corporation
The Building Center of Japan, Inc.
Undisclosed (Note 1)
2.8% (ERS Corporation and OYO RMS Corporation)
None
・The consent of the co-owners of the property, etc. (including the trustee) is
required with regard to the transfer of co-ownership interest held by thetrustee and trust beneficiary interest held by Hankyu Hanshin REIT.
・According to the co-ownership agreement concluded between Hankyu
Hanshin REIT, the Asset Management Company, the trustee, Hankyu
Hanshin Properties Corp. and Hankyu Corporation, decision making ofcertain matters concerning the interest held by the trustee and Hankyu
Corporation shall be determined with the agreement of both parties uponsincere negotiations between the two.

(Note 1)

Undisclosed as consent of co-owner, etc. is not obtained.

(Note 2)

With the acquisition of the property, Hankyu Hanshin REIT is scheduled to acquire 1,666 common shares of
KMO Corporation (Note 3), which jointly plans and operates the Knowledge Capital Association, and restitution
rights for 4,900,000 yen of funds concerning Knowledge Capital Association from Hankyu Corporation for aplanned acquisition price of 83,300,000 yen (50,000 yen per share) and 4,900,000 yen respectively (theplanned acquisition price indicates the sale price (not including consumption tax, regional consumption tax,
transaction fees and other costs) as shown in the transaction agreement) (the planned acquisition meets therequirements stated under Article 67-15(1)(ii) of Special Taxation Measures Law). Furthermore, the sharesand the fund restitution rights may not be transferred separately from the property.

(Note 3)The overview of KMO Corporation is as follows.

Name

KMO Corporation

Location

3-1 Ofuka-cho, Kita-ku, Osaka City

Title and name ofrepresentative

Hidetoshi Odajima, Representative Director

Main business activities

Management and operation of tenants in Knowledge Capital, etc., andbusiness development of Knowledge Capital

Capital

Undisclosed (Note)

Date of establishment

April 1, 2009

Net assets and total
assets in theimmediately preceding
fiscal year

Undisclosed (Note)

Shareholders·NTT Urban Development Corporation·Obayashi Corporation·ORIX Real Estate Corporation·Kanden Realty & Development Co., Ltd.
·Nippon Steel Kowa Real Estate Co., Ltd.
·Sekisui House, Ltd.
·Takenaka Corporation·Tokyo Tatemono Co., Ltd.
·Nippon Tochi-Tatemono Co., Ltd.
·Hankyu Corporation·Mitsubishi Estate Co., Ltd.

Relationship between
Hankyu Hanshin REIT

Capitalrelationships

Hankyu Hanshin REIT plans to acquire 1,666 commonshares.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
8

or the AssetManagement Company
and the Company

Personnel
relationships
Businessrelationships

There are no personnel relationships to be noted between
Hankyu Hanshin REIT or the Asset Management Company
and KMO Corporation (as of today).
There are no business relationships to be noted between
Hankyu Hanshin REIT or the Asset Management Company
and KMO Corporation (as of today).

(Note) Undisclosed as consent of shareholders of KMO Corporation and others is not obtained.

(C) (Tentative name) Valor Takatsuki Store (site)
Property nameSpecified asset type
Planned acquisition
priceAppraisal value
Location Lot Number
Land
Building
coverage
Floor area
ratio
Zone use
Site area

Form ofownership
Property manager
Collateral

Other matters to note

(Tentative name) Valor Takatsuki Store (site)
Right of ownership
2,258,500,000 yen
2,270,000,000 yen (Date of appraisal: September 30, 2018)(Appraisal organization: The Tanizawa Sogo Appraisal Co., Ltd.)
300-1 Wakamatsu-cho, Takatsuki City, Osaka Prefecture
60%
Building Month/―Year built
200%
Structure/―
Floors
Quasi-industrial area
Use―
27,366.41 m
Total floor
area―(Note 1)
Right of ownership
Form of―ownership
Hankyu Hanshin Building Management Co., Ltd. (Planned)
None・Hankyu Hanshin REIT is scheduled to own only the land.
・The transaction agreement for the acquisition corresponds to a forward
commitment, etc. (referring to transaction agreements dating 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 Hankyu Hanshin
REIT acts in serious violation to the items of the transaction agreement,
the seller shall demand fulfillment of obligation or correction of thesituation within a certain period. If fulfillment of obligation or correction of
the situation is not performed within the designation period, the seller may
cancel the agreement. It has been agreed that if the agreement iscancelled in such a situation Hankyu Hanshin REIT shall pay the seller anamount equivalent to 20% of the sale price as a penalty.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
9(2) Details of Asset to be Transferred
LaLaport KOSHIEN (site)
Property name
LaLaport KOSHIEN (site)
Specified asset type
Trust beneficiary interest
Proposed transfer price
7,960,000,000 yen
7,960,000,000 yen (Date of appraisal: September 30, 2018)
Appraisal value(Appraisal organization: Richi Appraisal Institute Co., Ltd.)
Book Value
7,752,000,000 yen (Note 1)
Gain/loss on transfer
192,000,000 yen (expected amount)
Location (Address)
1-100 Koshien Hachiban-cho, Nishinomiya City, Hyogo Prefecture
Acquisition date
January 22, 2009
Building
60%
Building Month/
April 1981
coverageYear built
Floor area
200%
Structure/
Steel frame structure with
ratio
Floorsgalvanized steel plateroof / 2 floors
Land
Zone use
Class 2 residential
Use
Officezone
22
Site area
126,052.16 m
Total floor
394.88 m
area
Form ofRight of ownership
Form ofRight of ownershipownershipownership
Tenant details
Total number of1
tenants
Total rent income
514 million yen (Note 2)
Security deposits
335 million yen (Note 3)
2
Leasable area
126,052.16 m
2
Leased area
126,052.16 m
Occupancy rate
100.0%
Other matters to note
・Hankyu Hanshin REIT owns the land and the management building
constructed on the site section of the western parking lot. The building
constructed on the site section of the retail facility, etc. is owned by Mitsui
Fudosan Co., Ltd. and is not part of the trust beneficiary interest.
(Note 1)

The figure (expected value) as of December 3, 2018 is indicated with amounts rounded down to the nearest
million yen.

(Note 2)The total of actual figures for the 25th fiscal period (ended November 2017) and 26th fiscal period (ended May2018) is indicated.

(Note 3)

The total of amounts shown in the lease agreements as of today is indicated.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
104. Overview of Leasing(1) GRAND FRONT OSAKA (Umekita Plaza and South Building) (equivalent of 4.9% co-ownership)
Total number of tenants 2 (226) (Note 1)
Principal tenant
Undisclosed (Note 2)
Annual rent
Undisclosed (Note 2)
2
2
Leasable area
5,893.37 m (5,197.47 m ) (Note 3) (Note 4)22
Leased area
5,893.37 m (5,029.27 m ) (Note 3) (Note 4)
Occupancy rate
100.0% (96.8%) (Note 5)
Security deposits
Undisclosed (Note 2)(Note 1) The total number of tenants is considered as two because the property is leased in its entirety to tenants under
the pass-through master lease method, based on the number of lessees in the total lease. The number inparentheses is the total number of end tenants as of August 31, 2018.
(Note 2) Undisclosed as consent of co-owner, etc. is not obtained.
(Note 3) Leasable area and leased area are the contractual areas expressed in the master lease agreement. The figuresin parentheses in leasable area and leased area represent the existing area that could be leased to end tenants
as of August 31, 2018, and the total of contractual area expressed in the leasing agreements of existing end
tenants as of the same date, respectively. Storage, parking lots, machinery room, etc. are not included.
(Note 4) Leasable area and leased area are areas equivalent to the 4.9% co-ownership.
(Note 5) The figure in parentheses is the ratio of leased area to leasable area for end tenants as of August 31, 2018.

(2) GRAND FRONT OSAKA (North Building) (equivalent of 4.9% co-ownership)
Total number of tenants 5 (102) (Note 1)
Principal tenant
Undisclosed (Note 2)
Annual rent
Undisclosed (Note 2)
2
2
Leasable area
8,729.32 m (8,438.63 m ) (Note 3) (Note 4)22
Leased area
8,729.32 m (8,405.26 m ) (Note 3) (Note 4)
Occupancy rate
100.0% (99.6%) (Note 5)
Security deposits
Undisclosed (Note 2)(Note 1) The total number of tenants is considered as five because part of the property is leased in its entirety to tenants
under the pass-through master lease method and fixed-type master lease method, based on the number oflessees in the total lease of the portion and the number of end tenants of the direct lease. The number inparentheses is the total number of end tenants as of August 31, 2018.
(Note 2) Undisclosed as consent of co-owner, etc. is not obtained.
(Note 3) Leasable area and leased area are the contractual areas expressed in the master lease agreement with regard
to the master lease section. The figures in parentheses in leasable area and leased area represent the existingarea that could be leased to end tenants as of August 31, 2018, and the total of contractual area expressed in
the leasing agreements of existing end tenants as of the same date, respectively. Storage, parking lots,
machinery room, etc. are not included.
(Note 4) Leasable area and leased area are areas equivalent to the 4.9% co-ownership.
(Note 5) The figure in parentheses is the ratio of leased area to leasable area for end tenants as of August 31, 2018.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
11(3) (Tentative name) Valor Takatsuki Store (site)
Total number of tenants 1
Principal tenant
Valor Holdings Co., Ltd.
Annual rent
Undisclosed (Note 1)
2
Leasable area
7,366.41 m
2
Leased area
7,366.41 m (Note 2)
Occupancy rate
100.0% (Note 3)
Security deposits
Undisclosed (Note 1)(Note 1) Undisclosed as consent of tenant is not obtained.
(Note 2) The areas specified in the lease agreement as of today are indicated.
(Note 3) The ratio of leased area to leasable area.

5. Overview of Buyer and Seller(1) Overview of Sellers(A) GRAND FRONT OSAKA (equivalent of 4.9% co-ownership)
Name
Hankyu Corporation
Location
1-1 Sakae-machi, Ikeda City, Osaka Prefecture
Title and name of
Takehiro Sugiyama, President and Representative Director
representative
Urban transportation business, real estate business and entertainment andMain business activities
communications business
Capital
100 million yen (as of March 31, 2018)
Date of establishment
October 19, 1907
Net assets and total assets Net assets:
211,784 million yen
in the immediately
Total assets: 1,089,016 million yen
preceding fiscal year
(as of March 31, 2018)
Major shareholders andHankyu Hanshin Holdings, Inc. 100.0%
their shareholding ratio
The seller is a subsidiary of the parent company of the Asset
CapitalManagement Company’s parent company and thus falls underrelationships
interested parties, etc., as defined in the Investment Trusts Act.
One director/employee has been seconded to the AssetManagement Company and serves as President andPersonnel
Representative Director of the Asset Management Company
Relationship between
relationships
and Executive Director of Hankyu Hanshin REIT.
Hankyu Hanshin REIT or
Two directors/employees concurrently hold a position at thethe Asset Management
Asset Management Company (as of today).
Company and theBusiness relationships with Hankyu Hanshin REIT:
Company
Rental income: 1,216,129 thousand yen
Rent paid: 13,939 thousand yen
Business(26th fiscal period (December 1, 2017 to May 31, 2018)
relationships
Business relationships with the Asset Management Company:
The seller has concluded an information sharing-relatedagreement with the Asset Management Company.
(B) (Tentative name) Valor Takatsuki Store (site)
Name
Hankyu Hanshin Properties Corp.
Location
Hankyu Terminal Building 1-1-4 Shibata, Kita-ku, Osaka City
Title and name ofTsuneo Wakabayashi, President and Representative Director
representative
Main business activities
Sale of land, residences and condominiums, land utilization, brokerage andDisclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
12Capital
Date of establishment
Net assets and total assets
in the immediately
preceding fiscal year
Major shareholders andtheir shareholding ratio

mediation for real estate, extension/reconstruction and renovation and leasemanagement of land and buildings
12,426 million yen (as of April 1, 2018)
February 17, 1947
Net assets:
130,028 million yen
Total assets: 301,548 million yen(as of March 31, 2018)
Hankyu Hanshin Holdings, Inc.
Capitalrelationships

Relationship between
Hankyu Hanshin REIT or
the Asset Management
Company and theCompany

Personnel
relationships

Businessrelationships

100.0%The seller is the parent company of the Asset Management
Company (investment unit holding ratio: 100%) and thus falls
under interested parties, etc., as defined in the Investment
Trusts Act.
There are no personnel relationships to be noted between
Hankyu Hanshin REIT or the Asset Management Company
and the seller (as of today).
Business relationships with Hankyu Hanshin REIT:Management fees: 1,005 thousand yen
Rent paid: 556 thousand yen(26th fiscal period (December 1, 2017 to May 31, 2018)
Business relationships with the Asset Management Company:
Rent paid: 45,693 thousand yen(Previous fiscal year (April 1, 2017 to March 31, 2018)
Besides the above, the seller has concluded an information
sharing-related agreement with the Asset Management
Company.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
13

(2) Overview of Buyer
LaLaport KOSHIEN (site)
Name

Hanshin Electric Railway Co., Ltd.

Location

1-1-24 Ebie, Fukushima-ku, Osaka City

Title and name ofrepresentative

Masao Shin, President and Representative Director

Capital29,384 million yen (as of March 31, 2016)

Main business activities

Rail way business, real estate business, sports and leisure business

Date of establishment

June 12, 1899

Net assets and total assets
in the immediately
preceding fiscal year
Major shareholders andtheir shareholding ratio

Net assets:
137,360 million yen
Total assets: 384,177 million yen(as of March 31, 2018)
Hankyu Hanshin Holdings, Inc.
Capitalrelationships

Relationship between
Hankyu Hanshin REIT or
the Asset Management
Company and theCompany

Personnel
relationships

Businessrelationships

100.0%The buyer is a subsidiary of the parent company of the AssetManagement Company’s parent company and thus falls underinterested parties, etc., as defined in the Investment Trusts Act.
There are no personnel relationships to be noted between
Hankyu Hanshin REIT or the Asset Management Company andthe seller (as of today).
Business relationships with Hankyu Hanshin REIT:
Rental income: 254,412 thousand yen
Rent paid: 17,250 thousand yen(26th fiscal period (December 1, 2017 to May 31, 2018)
Business relationships with the Asset Management Company:
The buyer has concluded an information sharing-relatedagreement with the Asset Management Company.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
146. Status of Property Acquirers, etc.
(1) GRAND FRONT OSAKA (equivalent of 4.9% co-ownership)Company name
Relationship to
special interested
partiesAcquisition
background,reasons, etc.

Acquisition date

Acquisition pricePrevious owner
Hankyu Corporation

Second previous owner
Non-interested party

See 5. Overview of Buyer andSeller above.

－

Development purpose－

June 27, 2007 (land)
Completed February 28, 2013
(building, Umekita Plaza, North
Building)
Completed March 29, 2013
(building, South Building)
The acquisition price is omitted
since the property was owned forover a year.

－－(2) (Tentative name) Valor Takatsuki Store (site)
Company name
Relationship to
special interested
partiesAcquisition
background,reasons, etc.
Acquisition date

Acquisition pricePrevious owner
Hanshin Electric Railway Co., Ltd.

Second previous owner
Non-interested party

See 5. Overview of Buyer andSeller above.

－

Development purpose－

July 14, 2017
Undisclosed as consent of thesecond previous owner is not
obtained. The transaction price inthe transaction agreement between
Hanshin Electric Railway Co., Ltd.
and Hankyu Hanshin Properties
Corp. is 1,984 million yen.

－－Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
15

7. Transactions with Interested Parties, etc.
The sellers of the Three Assets Planned to be Acquired and buyer of LaLaport KOSHIEN (site) all fall underinterested parties, etc., as defined in the Investment Trusts Act. Accordingly, the acquisition of the Three
Assets Planned to be Acquired and the transfer of the Asset planned to be transferred have 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. Also, of the Three
Assets Planned to be Acquired, the seller of GRAND FRONT OSAKA (equivalent of 4.9% co-ownership) is a
subsidiary of Hankyu Hanshin Holding, Inc., the parent company of the Asset Management Company’s parent
company, and based on Paragraph 2, Article 201 of the Investment Trust Act, the Asset Management
Company has as of today acquired consent from Hankyu Hanshin RIET based on the approval of the
Executive Meeting of Hankyu Hanshin REIT. Consent based on the Investment Trust Act is not required withregards to (Tentative name) Valor Takatsuki Store (site).
8. Overview of Intermediaries
Not applicable.
9. Settlement Method, etc.
Full payment at handover for all properties.
10. Schedule of Acquisition and Transfer
November 8, 2018

Resolution of acquisition and conclusion of agreement of the Three Assets Planned to be
Acquired and transfer of the Asset Planned to be Transferred at the Asset Management
Company’s Board of Directors Meeting.

December 3, 2018

Transfer (planned) of LaLaport KOSHIEN (site)

December 5, 2018

Payment for and acquisition (planned) of GRAND FRONT OSAKA(equivalent of 4.9% co-ownership)

March 29, 2019

Payment for and acquisition of (Tentative name) Valor Takatsuki Store (site)

11. Future Outlook
For the impact on the conditions surrounding management for the fiscal period ending May 2019 (28th fiscal
period: December 1, 2018 to May 31, 2019) and fiscal period ending November 2019 (29th Fiscal Period:
June 1, 2019 to November 30, 2019), please see “Notice Concerning Revision to the Forecast of Financial
Results and Distribution for the Fiscal Period Ending May 31, 2019 and Forecasts of Financial Results andDistribution for the Fiscal Period Ending November 30, 2019” dated today.
••

The Japanese original has been distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka Securities
Exchange and the Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction trade
newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.
Hankyu Hanshin REIT website: https://www.hankyuhanshinreit.co.jp/eng/<Attached Materials>
・Reference Material 1
・Reference Material 2・Reference Material 3

Overview of Appraisal Report
Table of Real Estate Portfolio After the Replacement
Property Photograph or Image View and Map of Surrounding Area

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
16

Reference Material 1<Overview of Appraisal Report>
Property nameAppraisal value
Appraisal organization
Date of appraisal

GRAND FRONT OSAKA (Umekita Plaza and South Building)
10,100,000,000 yen
Japan Real Estate Institute
September 30, 2018
Item

Value

Value indicated by the income approach*

206,000,000,000 yen

Value using the direct 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. Fees for seeking tenants, etc.
f. Public charges and taxes
g. Casualty insurance premiumsh. Other expenses(3) Net operating income (NOI = (1) − (2))(4) Operating profit on deposit and security(5) Capital expenditures

209,000,000,000 yen(6) Net cash flow (NCF = (3) + (4) − (5))(7) Capitalization rate

7,319,273,000 yen
3.5%

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

203,000,000,000 yen
3.3%

Terminal capitalization rate

Value indicated by the cost approach*Land ratio
Building ratio

Special items to consider at the time ofmaking adjustments to provisional
calculations and deciding the appraisal
value

Basis for valuation
Assessment through associating the value
indicated by the income approach using the direct
capitalization method and the value indicated by
the income approach using the DCF method.
－－

Undisclosed (Note)－

Undisclosed (Note)

7,502,419,000 yen
Undisclosed (Note)
182,800,000 yen

3.7%

215,000,000,000 yen
78.2%
21.8%

－
－
Assessment taking into consideration the levels ofcapital expenditure and building age of similar
properties as well as their average annual repair
and renewal fees in the engineering reports, etc.
－
Assessment taking into consideration future
uncertainly and transaction yields, etc. of similar
properties and adjusting for the spread instandard yield caused by location conditions, etc.
－
Assessment taking into consideration individualfeatures of the single building and its site, etc. andreferencing investment yields of similar
properties, etc.
Assessment taking into consideration future
trends of investment yields, trends in real estate
prices and rents, etc. and referencing investment
yields of similar properties, etc.
－－－

With the assessment, the target real estate’s locational features, real estate attributes such as building use
and main demanders, etc. were taken into consideration and it was deemed that value indicated by the
income approach would be more convincing and so said approach was adopted. The value indicated by thecost approach was kept as reference. The price of the single building and its site was assessed, the price
was multiplied by the co-ownership ratio of the single building and site and the appraisal value wasdetermined considering also market factors such as that it is co-owned.

*The above value indicated by the income approach and value indicated by the cost approach correspondto the single 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 the appraisal
conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards, etc. There arecases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estate appraiser
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 co-owner, etc. for thedisclosure of rents, etc., the assessment is based on actual results for reference and there is a possibility that disclosure of these items willaffect its competitiveness and damage the interests of unitholders.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
17

<Overview of Appraisal Report>
Property nameAppraisal value
Appraisal organization
Date of appraisal

GRAND FRONT OSAKA (North Building)
7,150,000,000 yen
Japan Real Estate Institute
September 30, 2018
Item

Value indicated by the income approach*
Value using the direct capitalization method(1) Operating revenues (a + b − c)Value
146,000,000,000 yen
147,000,000,000 yen－

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. Fees for seeking tenants, etc.
f. Public charges and taxes
g. Casualty insurance premiumsh. Other expenses(3) Net operating income (NOI = (1) − (2))(4) Operating profit on deposit and security(5) Capital expenditures

Undisclosed (Note)(6) Net cash flow (NCF = (3) + (4) − (5))(7) Capitalization rate

5,303,752,000 yen
3.6%

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

Terminal capitalization rate

Value indicated by the cost approach*Land ratio
Building ratio

Special items toconsider at the time ofmaking adjustments toprovisional
calculations anddeciding the appraisal
value

Basis for valuation
Assessment through associating the value
indicated by the income approach using the direct
capitalization method and the value indicated by
the income approach using the DCF method.
－－

Undisclosed (Note)

5,542,432,000 yen
Undisclosed (Note)
238,680,000 yen

145,000,000,000 yen
3.4%

3.8%

171,000,000,000 yen
72.0%
28.0%

－
－
Assessment taking into consideration the levels ofcapital expenditure and building age of similar
properties as well as their average annual repair
and renewal fees in the engineering reports, etc.
－
Assessment taking into consideration future
uncertainly and transaction yields, etc. of similar
properties and adjusting for the spread in standard
yield caused by location conditions, etc.
－
Assessment taking into consideration individualfeatures of the single building and its site, etc. andreferencing investment yields of similar properties,
etc.
Assessment taking into consideration future trendsof investment yields, trends in real estate prices
and rents, etc. and referencing investment yieldsof similar properties, etc.
－－－

With the assessment, the target real estate’s locational features, real estate attributes such as building use and main
demanders, etc. were taken into consideration and it was deemed that value indicated by the income approach would be moreconvincing and so said approach was adopted. The value indicated by the cost approach was kept as reference. The price ofthe single building and its site was assessed, the price was multiplied by the co-ownership ratio of the single building and site
and the appraisal value was determined considering also market factors such as that it is co-owned.

*The above value indicated by the income approach and value indicated by the cost approach correspond to the single
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 the appraisal
conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards, etc. There arecases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estate appraiser 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 orinto 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 co-owner, etc. for thedisclosure of rents, etc., the assessment is based on actual results for reference and there is a possibility that disclosure of these items willaffect its competitiveness and damage the interests of unitholders.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
18

<Overview of Appraisal Report>(Tentative name) Valor Takatsuki Store (site)

Property nameAppraisal value
Appraisal organization
Date of appraisal

2,270,000,000 yen
The Tanizawa Sogo Appraisal Co., Ltd.
September 30, 2018

Item
Value indicated by the income approach
Value using the discounted cash flow (DCF) method
Discount rate per period(Year 1 – Year 10.0)

Value
2,270,000,000 yen
2,270,000,000 yen
4.2%

Discount rate per period(Year 11.0 – Year 29.7)

4.4%

Discount rate per period(upon returning to vacant land)

4.4%

Special items to consider
at the time of making
adjustments to provisional
calculations and deciding
the appraisal value

Basis for valuation

Assessment comprehensively taking into
consideration of the content of the current leaseagreement, land rent levels, lease period,
business risks and other factors, based on themethod to compare with the yields of land withleasehold right transaction cases, etc., as well as
the accumulation method
Assessment based on the discount rate for thecurrent agreement period and adding thepossibility to sell the property as vacant land,etc.

In the assessment the appraisal value of the target real estate was determined to be 2,270,000,000 yen with thevalue indicated by the income approach using the discounted cash flow (DCF) method, in light of the typology of thetarget real estate of being a “site (land with lease-land right)” and considering to the process by which the price wasformulated, placing emphasis on profitability of the market participants (demanders) of the targeted real estate, theobjectives of the appraisal request, etc.

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 the appraisal
conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards, etc. There arecases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estate appraiser
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.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
19

<Overview of Appraisal Report>
Property nameAppraisal value
Appraisal organization
Date of appraisal

LaLaport KOSHIEN (site)
7,960,000,000 yen
Richi Appraisal Institute Co., Ltd.
September 30, 2018

Item
Value indicated by the income approach
Value using the discounted cash flow (DCF) method
Discount rate (first to 10th year)
Property 1 and 2
Terminal capitalization rate
Terminal capitalization rate

Special items to consider
at the time of making
adjustments to provisional
calculations and deciding
the appraisal value

Property 1
Property 2

Value
7,960,000,000 yen
7,960,000,000 yen
4.1%

－
－
－

Basis for valuation

3.9%
4.0%

－
－

The target real estate is located in a suburb-type commercial zone intersected by major transportation routes close to
the Hanshin Koshien Baseball Stadium in south-eastern Nishinomiya. This is a superb location both in terms ofcommercial area population and road and rail accessibility facing major boulevards. Also, the target real estate iscomprised of a large-scale retail facility for which a twenty-year contract has been executed for the establishment of
fixed-term leased-land rights for business use, and a parking area that is used for the aforesaid facility. The contract isapproaching maturity but there is sufficient possibility that it will be renewed. The profitability of the property istherefore deemed safe and secure.
The discount rate and the terminal capitalization rate especially from DCF method were calculated based on
consideration of the currently stable standard land prices. The appraised value of the property was decided by theappraisal organization, who treated the value as the earned price obtained by the DCF method. The appraisal
decision was based on similar cases with leased-land ownership and considerations were given to the process bywhich the earned price was formulated, placing emphasis on profitability of the market participants.

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 the appraisal
conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards, etc. There arecases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estate appraiser 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 orinto the future, of a sale or purchase at that appraisal value.

(Note) Property 1: Site of retail facility
Property 2: Parking lot and parking management, etc.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
20Reference Material 2< Table of Real Estate Portfolio After the Replacement>
Property
Code(Note)

Property Name

Facility(Type of
Use)

RegionAcquisition(Planned) Date

Acquisition(Planned)Price(millions ofyen)

Investment
Ratio

HEP Five
R1 (K)(14% of the quasi co-ownership of thetrust beneficiary interests)

RetailKansaiFebruary 1, 2005

6,468

3.9%

R2 (K)
R3 (K)
R4 (K)
R5 (K)

Kitano Hankyu Building
Dew Hankyu Yamada
Takatsuki-Josai Shopping Center
Nitori Ibaraki-Kita Store (site)
Kohnan Hiroshima Nakano-Higashi
Store (site)
Hotel Gracery Tamachi
LaLaport KOSHIEN (site)
HANKYU NISHINOMIYA GARDENSRetailRetailRetailRetailKansaiKansaiKansaiKansai
Other

RetailRetailOther
Kansai

7,740
6,930
8,600
1,318
2,170
5
4,160
―

4.7%
4.2%
5.2%
0.8%

RetailFebruary 1, 2005
February 1, 2005
November 15, 2005
March 29, 2006
October 2, 2006
April 9, 2007
December 25, 2008
To be transferred(28% of the quasi co-ownership of thetrust beneficiary interests)

RetailKansai

April 16, 2013

18,300

11.1%

RetailKansaiJune 27, 2013

8,100

4.9%

RetailKansaiJune 27, 2013

1,870

1.1%

RetailKansaiJune 4, 2014

3,100

1.9%

RetailRetailRetailRetailRetailRetailRetailRetailRetailKansaiKansaiKansaiKansaiKansai
Other
KansaiKansai
Other

June 4, 2014
June 4, 2014
June 24, 2014
July 1, 2016
November 25, 2016
February 15, 2018
March 27, 2018
March 27, 2018
March 29, 2018

2,770
1,421
4,182
1,631
7,100
5,400
2,280
1,850
2,760

1.7%
0.9%
2.5%
1.0%
4.3%
3.3%
1.4%
1.1%
1.7%

RetailKansaiMarch 29, 2019

2,258

1.4%

OfficeOther

February 29, 2008

100,413
19,025

61.0%
11.6%

OfficeKansai

April 10, 2013

10,200

6.2%

ComplexKansaiNovember 1, 2005

29,225
2,980

17.8%
1.8%

Complex

Other

October 2, 2007

9,405

5.7%

R6
R8
R9 (K)
R11 (K)R12 (K)R13 (K)R14 (K)R15 (K)R16 (K)R17 (K)R18 (K)R19 (K)
R20
R21 (K)R22 (K)
R23
R24 (K)
O1O2 (K)
M1 (K)
M2

AEON MALL SAKAIKITAHANADA(site)
MANDAI Toyonaka Honan Store(site)DAILY QANAT Izumiya Horikawa
Marutamachi Store (site)
kotocross Hankyu Kawaramachi
LIFE Shimoyamate Store (site)
MANDAI Gojo Nishikoji Store (site)
KOHYO Onohara StoreOASIS Town Itami Konoike (site)
METS OZONEMANDAI Nigawa Store (site)
LAMU Higashiosaka Branch (site)
Vessel Inn Hakata Nakasu(Tentative name) Valor Takatsuki
Store (site)
Subtotal
Shiodome East Side Building
Hankyu Corporation
Head Office Building
Subtotal
Ueroku F Building
Sphere Tower Tennozu(33% of the quasi co-ownership of thetrust beneficiary interests)

1.3%
2.5%
―

M3 (K)
M5

LAXA Osaka
ComplexKansaiJanuary 22, 2009
5,122
3.1%
Kita-Aoyama San cho-me Building
Complex
Other
November 12, 2013
1,680
1.0%
GRAND FRONT OSAKA
M6 (K)(Umekita Plaza and South Building)ComplexKansai
December 5, 2018
9,212
5.6%
(equivalent of 4.9% co-ownership)
GRAND FRONT OSAKA
M7 (K)(North Building)ComplexKansai
December 5, 2018
6,566
4.0%
(equivalent of 4.9% co-ownership)
Subtotal
34,965
21.2%
Total
164,605
100.0%
Note: “Property code” indicates the codes and numbers assigned to the properties owned by Hankyu Hanshin REIT throughclassification by facility (type of use) and region. The alphabets on the left represent the facility (type of use): (“R” is forretail-use facility, “O” is for office-use facility and “M” is for mixed-use (complex) facility). The numbers are assigned toeach facility in the chronological order of the acquisition. Also, the letter “(K)” in parentheses to the right of the numerals
indicates that the property is located in Kansai Region.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
21

Reference Material 3<GRAND FRONT OSAKA (equivalent of 4.9% co-ownership) Property Photograph and Surrounding Area>

GRAND FRONT OSAKA (North Building)

GRAND FRONT OSAKA(South Building)

Umekita Plaza<GRAND FRONT OSAKA (equivalent of 4.9% co-ownership) Map of Surrounding Area>

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
22

(Note 1) Includes properties jointly owned with the Sponsor Group.
(Note 2) Includes properties developed and owned jointly with other companies. Hankyu Hanshin REIT does not plan toacquire them.
(Note 3) Based on the plan announced by WEST JAPAN RAILWAY COMPANY as of the date of this document, subject tochange or cancellation.
(Note 4) Based on the plan announced by Yodobashi Holdings Co., Ltd. and Hankyu Hanshin Hotels Co., Ltd. as of the dateof this document, subject to change or cancellation.
(Note 5) Hankyu Hanshin REIT does not plan to acquire properties other than the assets planned to be acquired above as ofthe date of this document.

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
23

<(Tentative name) Valor Takatsuki Store (site) Property Image View>(Note) Hankyu Hanshin REIT is scheduled to acquire the land only. Also, the building is currently under construction and theabove figure may differ from the situation after completion as it envisions the building after completion.

<(Tentative name) Valor Takatsuki Store (site) Map of Surrounding Area>

Disclaimer: This document is a press release to make a public announcement of the acquisition of assets, commencement of leasing
and transfer of an asset, and has not been prepared as a solicitation for investment. Hankyu Hanshin REIT advises investors
to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering ofinvestment units prepared by Hankyu Hanshin REIT as well as (if any) amendments thereto before undertaking investments
and investments be made at their own discretion and responsibility.
24