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 16, 2016
REIT Issuer
Ichigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: +81-3-3502-4891

Sale of Portfolio Asset(Ichigo Saga Building)
Ichigo Real Estate Investment Advisors Co., Ltd. (IRE), the asset management company ofIchigo Office REIT, today contracted to sell the Ichigo Saga Building.
1. Sale Overview
Name
Asset Type/Property No.
Building Completion Date
Legal Form of Asset
Acquisition Date
(Original acquisition date)
Sale Price1
Forecast Book Value2
Difference between SalePrice and Forecast Book
ValueAppraisal ValueContract Date
Transfer Date
Settlement Date
Transfer Method
12

Ichigo Saga Building
Office / O-40
January 23, 1992
Trust beneficiary interest in real estate (juekiken)
November 1, 2011 (Ichigo Office REIT merger)(March 15, 2006)
870,000,000 yen
696,731,731 yen
173,268,269 yen
677,000,000 yen (as of October 31, 2015)
March 16, 2016
March 24, 2016
March 24, 2016
Assignment of trust beneficiary interest in real estate

Sale price excludes incidental expenses such as property, city planning, and consumption
taxes.
Forecast Book Value is an estimate for book value based upon the most recent book value(October 2015 fiscal period) adjusted for any capital expenditure and depreciation between
the most recent book value and the Settlement Date.

12. Sale Rationale
Ichigo Office REIT continues to execute on its strategy to “increase portfolio size and scale andbe smart in portfolio restructuring” as described in Stage V (“Lay Foundation for SustainableDividend Growth”) of its Growth Strategy Roadmap.
Ichigo Office REIT regularly reviews its portfolio for profitability and determines whether it isin the best interest of shareholders to continue to own each asset based upon its maintenanceneeds and competitiveness with nearby assets. In this case, Ichigo Office REIT concluded thatselling the asset is consistent with its Stage V objective of selling assets with limited potential inorder to improve its portfolio and increase shareholder value.
3. Asset Overview
Name
Legal Form of Asset
Location
Property Right
Size
ZoningLand
Coverage Ratio
Floor Area Ratio
Property Right
UseStructure
Building
Total Floor Area
Construction Date
Number of Tenants
Monthly Rent3
Tenant Security Deposits3
Leasable Area
Leased Area
Occupancy
Acquisition PriceAppraiser
DateAppraisal
Value3

Asset Overview
AssetIchigoOverview
Saga Building
Trust beneficiary interest in real estate (juekiken)
1-9-38 Ekimaechuo, Saga City, Saga Prefecture
Ownership
817.01 m2
Commercial
80%
500%
Ownership
OfficeSteel/RC 8F
4,139.09m2
January 23, 1992
21 (as of March 16, 2016)
6,851 thousand yen (as of March 16, 2016)
58,166 thousand yen (as of March 16, 2016)
2,786.43 m2 (as of March 16, 2016)
2,655.41 m2 (as of March 16, 2016)95.3 % (as of March 16, 2016)
659 million yen
Rich Appraisal Institute Co., Ltd.
October 31, 2015
677 million yen

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

2

4. Appraisal Overview
Appraisal Overview
Asset Name

Ichigo Saga Building

Appraisal Value

677,000,000 yen

AppraiserRich Appraisal Institute Co., Ltd.

Appraisal Date

October 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncome677,000,000 yen

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

666,000,000 yen
93,390,058 yen

Maximum Obtainable
Rental Income

98,944,214 yen

Based on rental income, common area service income, parking
lot income, and other income

Vacancy Loss

5,554,156 yen

Based on mid- to long-term vacancy rate

Expenses

38,092,014 yen

Administrative andMaintenanceExpenses

10,143,600 yen

Based on similar assets and past actual amounts

Utility Expenses

11,632,000 yen

Based on similar assets and past actual amounts

Repair Expenses

5,268,000 yen

Based on engineering reports and similar assets

PM Fees

2,561,727 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure
Net Profit
Cap Rate
Value via DCF Method

758,797 yen
7,555,200 yen
172,690 yen

Based on the expected turnover rate and tenant acquisition costs
for similar assets
Based on FY2015 actual amounts
Based on the standard of similar assets and past actual amounts

0 yen
55,298,044 yen
966,575 yen
12,291,000 yen
43,973,619 yen
6.6%

Based on 2.0% investment yieldBased 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.

682,000,000 yen

Discount Rate

6.5%

Based on transactions of similar assets and the yields of financial
assets with the asset’s individual characteristics taken into
account

Terminal Cap Rate

7.0%

Based upon risk-adjusted NOI

Value via Cost Approach

612,000,000 yen

Land

25.7%

Property

74.3%
Notes

None3

5. Buyer ProfileNameThe buyer is a domestic operating company, but did notgive consent to disclose its name.

Relationship with Ichigo Office
REIT or IRE

The buyer does not have any capital, personnel, or business
relationship of note with Ichigo Office REIT or IRE. Inaddition, 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.

6. Broker Profile
Name
Address
Representative
Principal Businesses
CapitalEstablished Date

Relationship with Ichigo Office
REIT or IRE

Brokerage Fee

Nomura Real Estate Urban Net Co., Ltd.
1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo
Seishi Miyajima, President
Real estate brokerage
1,000 million yen
November 6, 2000
The broker does not have any capital, personnel, orbusiness relationship of note with Ichigo Office REIT/IRE.
In addition, the seller is not an interested party as definedin 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 disclose the fee.

7. Settlement Method
Lump-sum payment
8. Use of Sale Proceeds
Ichigo Office REIT will allocate part of the sale proceeds towards prepayment of existing loans
and the rest will be retained as cash-on-hand for future strategic use including asset acquisitions.
Details of the loan prepayment will be announced as soon as they have been decided.

9. Future Outlook
The impact of the sale on Ichigo Office REIT’s earnings and dividend forecasts for the April
2016 and October 2016 fiscal periods is minimal, and therefore the forecasts are unchanged.
The capital gains from the sale will be allocated to the dividend reserve to maintain the stabilityof future dividends.

4

Portfolio Reference Information
1. Post-Sale Portfolio Summary1
Before Sale (A)After Sale (B)

95.9%2

95.9%

Difference(B-A)－83.4%/16.6%

83.7%/16.3%+0.3%/-0.3%

Occupancy
Diversification by Area –Greater Tokyo Area/Other Areas3
1

Sales of Ichigo Meieki Building and Ichigo Yokohama Nishiguchi Building are reflected inthis summary. For details regarding the sales of these assets, refer to the “Sale of Portfolio
Assets (Ichigo Meieki Building, Ichigo Yokohama Nishiguchi Building)” announcement
released on March 4, 2016.

2

As of January 31, 2016.
“Greater Tokyo Area” refers to “Central Tokyo” and “Tokyo Metropolitan Area.” “OtherAreas” refers to “Four Major Regional Cities” and “Other Regional Cities.” The ratio is basedon acquisition prices.

3

2. Post-Sale Portfolio Assets
Area1Acquisition
Price2(mm yen)

% ofPortfolio3

O-02 Ichigo Nishisando Building

Central Tokyo

3,254

2.0%

O-03 Ichigo Mita Building

Central Tokyo

2,740

1.7%

O-04 Ichigo Nanpeidai Building

Central Tokyo

1,920

O-05 Ichigo Hanzomon Building

Central Tokyo

1,550

1.2%
1.0%

O-06 Ichigo Hijirizaka Building

Central Tokyo

1,200

0.7%

O-07 Ichigo Shibuya Kamiyamacho Building

Central Tokyo

1,505

0.9%

O-08 Ichigo Akasaka 5 Chome Building

Central Tokyo

735

0.5%

O-09 Ichigo Shibakoen Building

Central Tokyo

1,100

0.7%

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

1,917

1.2%

O-11 Ichigo Ginza 612 Building

Central Tokyo

1,773

1.1%

O-12 Ichigo Uchikanda Building

Central Tokyo

1,140

0.7%

O-14 Ichigo Yotsuya 4 Chome Building

Central Tokyo

550

0.3%

O-15 Ichigo Tameike Building

Central Tokyo

580

0.4%

O-16 Ichigo Jimbocho Building

Central Tokyo

1,820

1.1%

O-17 Ichigo Hakozaki Building

Central Tokyo

1,150

0.7%

O-18 Ichigo Kudan 2 Chome Building

Central Tokyo

763

0.5%

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

844

0.5%

O-20 Ichigo Gotanda Building

Central Tokyo

5,060

3.1%

O-21 Ichigo Shin Yokohama Building

Tokyo Metropolitan Area

1,816

1.1%

O-22 Ichigo Minami Ikebukuro Building

Tokyo Metropolitan Area

1,460

0.9%

O-23 Ichigo Nakano North Building

Tokyo Metropolitan Area

764

0.5%

O-24 Ichigo Eitai Building

Tokyo Metropolitan Area

1,490

0.9%

O-25 Ichigo Yokosuka Building

Tokyo Metropolitan Area

971

0.6%

No.

Property

5No.

Area1

Property

Acquisition
Price2(mm yen)

% ofPortfolio3

O-26 Ichigo Ikejiri Building

Tokyo Metropolitan Area

2,030

1.2%

O-27 Ichigo Nishi Ikebukuro Building

Tokyo Metropolitan Area

639

0.4%

O-28 Ichigo Nishi Gotanda Building

Central Tokyo

765

0.5%

O-29 Ichigo Kichijoji Building

2,160

1.3%

4,705

2.9%

6,710

4.1%

O-38 Ichigo Toyamaeki Nishi Building

Tokyo Metropolitan Area
Four Major RegionalCities
Four Major RegionalCities
Other Regional Cities

1,6501.0%

O-39 Ichigo Mirai Shinkin Building

Other Regional Cities

1,158

0.7%

O-42 Ichigo Takamatsu Building

Other Regional Cities

3,010

1.8%

O-46 Ichigo Kanda Nishikicho Building

Central Tokyo

2,130

1.3%

O-47 Ichigo Akihabara North Building

5,500

3.4%

1,940

1.2%

O-49 Ichigo Kanda Ogawamachi Building

Central Tokyo
Four Major RegionalCities
Central Tokyo

2,210

1.4%

O-50 Ichigo Hatchobori Building

Central Tokyo

1,905

1.2%

O-51 Ebisu Green GlassCentral Tokyo

5,900

3.6%

O-52 Ichigo Omori Building

Central Tokyo

3,850

2.4%

O-53 Ichigo Takadanobaba Building

Central Tokyo

1,580

1.0%

O-54 Ichigo Omiya Building

Tokyo Metropolitan Area

3,430

2.1%

O-55 Ichigo Sagamihara Building

Tokyo Metropolitan Area

1,174

0.7%

O-56 Ichigo Ofuna Building

Tokyo Metropolitan Area

2,000

1.2%

O-57 Ichigo Sendai East Building

Other Regional Cities

1,840

1.1%

O-58 Ichigo Kumamoto Building

Other Regional Cities

1,450

0.9%

O-59 Ichigo Jingumae Building

Central Tokyo

7,200

4.4%

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

3,650

2.2%

O-61 Ichigo Hiroo Building

Central Tokyo

3,9602.4%

O-62 Ichigo Sasazuka Building

Central Tokyo

4,780

2.9%

O-63 Ichigo Nihonbashi East Building

Central Tokyo

4,700

2.9%

O-64 Ichigo Sakurabashi Building

Central Tokyo

2,500

1.5%

O-65 Ichigo Shinkawa Building

Central Tokyo

2,360

1.5%

O-66 Ichigo Kudan Building

Central Tokyo

3,190

2.0%

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

3,660

2.2%

O-68 Axior Mita

Central Tokyo

1,800

1.1%

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metropolitan Area

4,570

2.8%

O-70 Koriyama Big-i (Office Section)

Other Regional Cities

1,660

1.0%

O-71 Ichigo Kawasaki Building

Tokyo Metropolitan Area

1,750

1.1%

Subtotal - Office (58 Properties)

139,618

85.8%

O-34 Ichigo Sakae Building
O-37 Ichigo Marunouchi Building

O-48 Ichigo Sakaisuji Honmachi Building

6Area1

Acquisition
Price2(mm yen)

% ofPortfolio3

Central Tokyo

1,360

0.8%

Central Tokyo

701

0.4%

R-09 Ichigo Serviced Apartments Ginza

Central Tokyo

946

0.6%

Z-02 Ichigo Fiesta Shibuya

Central Tokyo

1,970

1.2%

Z-03 Ichigo Burg Omori

Tokyo Metropolitan Area

3,218

2.0%

Z-04 Ichigo Pagoda Asakusa

Tokyo Metropolitan Area

1,640

1.0%

Z-05 Ichigo Machida East Building
Ichigo Sapporo Minami 2 Nishi 3
Z-07Building

Tokyo Metropolitan Area
Four Major RegionalCities
Four Major RegionalCities
Other Regional Cities

1,310

0.8%

558

0.3%

638

0.4%

1,210

0.7%

Central Tokyo

2,400

1.5%

Tokyo Metropolitan Area

1,620

1.0%

Tokyo Metropolitan Area

2,430

1.5%

Tokyo Metropolitan Area

1,700

1.0%

Tokyo Metropolitan Area

1,400

0.9%

Subtotal - Others (15 Properties)

23,101

14.2%

Total (73 Properties)

162,719100.0%

Motoazabu Holdings GK TK Equity Interest

1,000－Ikenohata Holdings GK TK Equity Interest

1,000－

2,000－No.

Property

Ichigo Serviced Apartments
Takanawadai
R-06 B-SITE Hamamatsucho
R-04

Z-08 Ichigo Daimyo Balcony
Z-09 Konami Sports Club Izumi Fuchu
Ichigo Shibuya Bunkamura Dori
Z-10
Building
Twicere Yokohama Isogo
Z-11(Retail Section)
Z-12 Lions Square Kawaguchi
Ichigo Shin Yokohama Arena Dori
Z-13
Building
Z-14 Ichigo Kamata Building

Investments inSecurities

Total (2 TK Equity Interests)“Central Tokyo” refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards. “TokyoMetropolitan Area” refers to Tokyo (excluding the six wards above), Kanagawa, Chiba, and Saitama
Prefectures. “Four Major Regional Cities” refers to Osaka, Nagoya, Fukuoka, and Sapporo.
2Acquisition Price excludes consumption tax. For the 39 assets acquired via the REIT merger on
November 1, 2011 (O-02 to O-42 and Z-02 to Z-08), the appraisal value as of October 31, 2011 isshown.
3% of Portfolio is the ratio of each asset’s Acquisition Price to the Total Acquisition Price, rounded to thenearest second decimal place.
17