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.

April 8, 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

Acquisition of Five Office Assets
Ichigo Real Estate Investment Advisors Co., Ltd. (IRE), the asset management company of
Ichigo Office REIT Investment Corporation (“Ichigo Office REIT”), has decided to acquire fiveassets (total acquisition price 8,370,000,000 yen).
I.

Acquisition Summary

Total appraisal value: 8,730,000,000 yen, total acquisition price: 8,370,000,000 yen
O-74
Ichigo Nishi
Honmachi
Building
OfficeOctober 1990
Trust beneficiaryinterest in realestate (juekiken)

O-75
Ichigo Hakata
Building

O-76
Nishiki First
Building

OfficeOctober 1985
Trust beneficiaryinterest in realestate (juekiken)

O-73
IchigoNingyocho
Building
OfficeMarch 1984
Trust beneficiaryinterest in realestate (juekiken)

OfficeApril 1989
Trust beneficiaryinterest in realestate (juekiken)

OfficeOctober 1984
Trust beneficiaryinterest in realestate (juekiken)

1,450,000,000 yen

1,530,000,000 yen

2,290,000,000 yen

1,410,000,000 yen

2,050,000,000 yen

1,350,000,000 yen

1,450,000,000 yen

2,190,000,000 yen

1,380,000,000 yen

2,000,000,000 yen

SellerMotoazabu
Holdings GK

Motoazabu
Holdings GK

Motoazabu
Holdings GK

Ikenohata
Holdings GK

Ikenohata
Holdings GK

Contract Date

April 8, 2016

April 8, 2016

April 8, 2016

April 8, 2016

April 8, 2016

Closing Date(expected)

May 9, 2016

May 9, 2016

May 9, 2016

May 9, 2016

May 9, 2016

Asset Name1
Asset Type
Date Built
Legal Form of
Asset
Appraisal
Value2Acquisition
Price3

O-72
Ichigo Shibuya
East Building

Financing

Borrowing and cash-on-hand (expected)4Settlement
MethodLump-sum payment
1

1

The current building names “Dai 5 Akiyama Building,” “Ningyocho Central Building,” “Osaka
Nishi Honmachi Building,” and “Sigma Hakata Building” will be changed to “Ichigo Shibuya
East Building,” “Ichigo Ningyocho Building,” “Ichigo Nishi Honmachi Building,” and“Ichigo Hakata Building,” respectively.
2
Appraisal value is as of March 1, 2016.
3
Acquisition price excludes incidental expenses such as property, city planning, andconsumption taxes.
4
Details of this borrowing will be announced when determined.

II.

Acquisition 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 Sustainable
Dividend Growth”) of its Growth Strategy Roadmap.
This five-asset acquisition, coupled with an earlier sale of four assets located in lower-quality
locations, is part of Ichigo Office REIT’s strategic restructuring to enhance the quality of its
portfolio and drive higher EPS and dividend growth for its shareholders.1
In this acquisition, Ichigo Office REIT is exercising its preferential negotiation rights for these
five assets obtained in the acquisition of equity interests in Motoazabu Holdings GK and
Ikenohata Holdings GK on July 29, 2015.2
1

For details on the four asset sales, please refer to the releases “Sale of Portfolio Asset (Akita
Sanno 21 Building)” on January 28, 2016, “Sale of Portfolio Assets (Ichigo Meieki Building,
Ichigo Yokohama Nishiguchi Building)” on March 4, 2016, and “Sale of Portfolio Asset(Ichigo Saga Building)” on March 16, 2016.
2
For details, please refer to the release “Real Estate Acquisition” on July 28, 2015.

III. Asset Acquisition Overview
Ichigo Office REIT is acquiring five mid-size office buildings located in Central Tokyo, Osaka,
Nagoya, and Fukuoka, major metropolitan areas where rental and economic growth can be
expected. The average NOI yield of the five assets is 5.1% and average occupancy is 97.5%.1, 2
Today’s acquisition is also expected to drive further growth in shareholder value for Ichigo
Office REIT’s shareholders by making full use of Ichigo Office REIT’s strengths in managing
and adding value to office assets.
1

The average NOI yield is calculated as the total NOI of the five assets at acquisition divided by
the total acquisition price. The NOI for each asset is calculated using the forecast NOI in thethird-party asset appraisal report, excluding any one-off revenues or expenses expected to be
incurred in the first year of ownership.
2
Occupancy is as of February 29, 2016.

2

(1)

Ichigo Shibuya East Building(i) Location
The Shibuya area consists of a commercial district and a business district. The
commercial district is to the northwest of the station, where many apparel stores andrestaurants are located. The business district is in the vicinity of major throughways
including Meiji Dori and Roppongi Dori. Many of the apparel stores in the areatarget the younger generation, while the business zone has become increasingly
popular as an office location for the IT industry.
In recent years a number of large-scale commercial/office buildings have been
redeveloped around Shibuya Station, and several revitalization projects are presently
underway. As a result of these developments, the area is expected to continue toattract more businesses and more people.
(ii) Features
This mid-size office building is a 9-minute walk from Shibuya Station, which isserviced by a large number of railways such as the JR Line.
The standard floor area is 58 tsubo (190 m2). The building has specifications suitedfor the demands of the typical tenant, such as individual air conditioning systems foreach floor and raised access flooring.
A convenience store occupies the first floor, and the other floors are occupied bytenants in the telecommunications industry.
(iii) Property Photos and Location

3

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking Co., Ltd.

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

1-3-10 Higashi, Shibuya-ku, Tokyo

Land

Building

Property Right

FreeholdSize

297.16 m2

ZoningCommercial, Category II Mid/High-Rise Residential

Coverage Ratio/ Floor
Area Ratio

80%/500%, 60%/300%

Property Right

Freehold

ZoningOffice, Retail

Structure

RC 6F

Total Floor Area

1,159.16 m2

Construction Date

October 25, 1985

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

1,450,000,000 yen

Appraisal Date

March 1, 2016

Value by Direct Capitalization Method

1,480,000,000 yen

Architect1

Tobishima Corporation Tokyo Branch First-class Registered Architect Office1

Builder

Tobishima Corporation Tokyo Branch

Structural Engineer1
Inspection Agency

1

Tobishima Corporation Tokyo Branch First-class Registered Architect Office
Shibuya Ward

PML (Assessor)

6.67% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

No (expected)
Rent Overview (as of February 29, 2016)

Number of Tenants

4Monthly Rental Income

5,711 thousand yen

Deposit

63,907 thousand yen

Leasable Area

1,041.36 m2

Leased Area

1,041.36 m2

Occupancy

100%

Property Management Company

Ken Corporation Ltd.(Expected)

Master Lease Company

Ichigo Office REIT Investment Corporation (Expected)

Master Lease Type

Pass-through (Expected)

NOI at Acquisition (NOI yield at
Acquisition)2

57 million yen (4.3%)

Depreciation Rate3

0.2%
Special Items

Part of concrete floor, stairs, and trees, and concrete earth-retaining wall encroaches the northeastern neighbor. A
memorandum of understanding exists which agrees to rectify the situation when a large-scale renovation or reconstruction
is implemented in the future.

4

1

The names of the architect, builder, structural engineer, and inspection agency are those of when the building wasbuilt.
2
NOI at Acquisition is the assumed annual net operating income excluding any special factors from the year ofacquisition, and it is the net operating income of the first year used by the appraiser in their DCF valuation. NOI
yield at Acquisition is calculated by dividing NOI at Acquisition by the Acquisition Price. Amounts less than amillion are rounded down. The above is an expected NOI, and not a forecast for the October 2016 fiscal period.
The NOI yield calculated using the NOI employed in the direct capitalization valuation method from the appraisal
report divided by the Acquisition Price is 4.6%.
3
Depreciation Rate is derived from the expected annual amount of depreciation at acquisition divided by the
Acquisition Price. The above is an expected rate, and not a forecast for the October 2016 fiscal period.

5Appraisal Overview
Name

Ichigo Shibuya East Building

Appraisal Value

1,450,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

March 1, 2016

Appraisal Value
Value by Direct Capitalization
MethodIncomeAmountNote

1,450,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,480,000,000 yen
81,654,486 yen

Maximum Obtainable
Income85,651,377 yen

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

Vacancy Loss

3,996,891 yen

Based on mid- to long-term vacancy rate

Expenses

20,023,786 yen

Administrative andMaintenanceExpenses

3,324,021 yen

Based on similar assets and past actual amounts

Utility Expenses

6,498,086 yen

Based on similar assets and past actual amounts

Repair Expenses

2,100,000 yen

Based on the average of the past 12 years of engineering reports

PM Fees

1,621,306 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes

520,309 yen
5,796,700 yen

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

Insurance Premiums

81,710 yen

Based on the standard of similar assets and past actual amounts

Other Expenses

81,654 yen

Bank commissions and other expenses

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

61,630,700 yen
1,319,437 yen

Based on 2.0% investment yield

5,075,000 yen

Based on the average of the past 12 years of engineering reports

Net Profit

57,875,137 yen

Cap Rate

3.9%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,430,000,000 yen

Discount Rate

4.0%

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

Terminal Cap Rate

4.1%

Based upon risk-adjusted NOI

Value via Cost Approach

1,410,000,000 yen

Land

95.4%

Property

4.6%
Notes

None

6

(2)

Ichigo Ningyocho Building(i) Location
The Ningyocho area is 1.5km from Tokyo Station, offering easy access to major city
centers using the Tokyo Metro Subway. As the rents in the area are relatively
reasonable despite its proximity to major office areas in central Tokyo, such as the
Nihonbashi area adjacent to Ningyocho, the area serves as a secondary major
business district.
(ii) Features
This mid-size office building is a 4-minute walk from Ningyocho Station on the Toei
Asakusa Line and the Tokyo Metro Hibiya Line, and Kodenmacho Station on theTokyo Metro Hibiya Line. The standard floor area of this building is 60 tsubo (190m2), with individual air conditioning systems and raised access flooring, making it acompetitive offering in the area.
(iii) Property Photos and Location

7

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Period of Trust Contract

September 28, 2007 – July 31, 2025 (Expected)

Location

1-10-14 Nihonbashi-horidomecho, Chuo-ku, Tokyo

Land

Building

Property Right

FreeholdSize

318.89 m2

ZoningCommercial

Coverage Ratio/ Floor
Area Ratio

80%/700%

Property Right

Freehold

ZoningOfficeStructure

SRC 11F

Total Floor Area

2,122.71 m2

Construction Date

March 27, 1984

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd

Appraisal Value

1,530,000,000 yen

Appraisal Date

March 1, 2016

Value by Direct Capitalization Method

1,610,000,000 yen

1Architect

Hiroshi Matsuura Architectural Office1

BuilderTaisei Corporation
1

Hiroshi Matsuura Architectural Office1

Chuo Ward

StructuralArchitect
Inspection Agency
PML (Assessor)

3.73% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

No (expected)
Rent Overview (as of February 29, 2016)

Number of Tenants

8Monthly Rental Income

6,580 thousand yen

Deposit

60,573 thousand yen

Leasable Area

1,769.09 m2

Leased Area

1,769.09 m2

Occupancy

100%

Property Management Company

The Dai-Ichi Building Co., Ltd. (Expected)

Master Lease Company—

Master Lease Type
Assumed NOI (NOI yield)
Depreciation Rate3—
2

61 million yen (4.3%)
0.3%
Notes

1.
2.

An intrusion prevention wall exists at the border with the southern neighbor. A memorandum of understanding
regarding its maintenance and management exists.
Part of the underground foundation for concrete block walls co-built with neighbor(s) exists between a western andsouthern neighbor. A memorandum of understanding regarding confirmation of the existence of the underground8

foundation exists. In addition, part of a pipe and an iron railing encroach a western and southern neighbor. A
memorandum of understanding exists to rectify the situation at the owner’s expense when removing the pipe and/or
the iron railing.
A V-shaped street drain, rain water inlet, and a concrete manhole exist at the border with the northern neighbor.

3.
1

2

3

The names of the architect, builder, structural engineer, and inspection agency are those of when the building wasbuilt.
NOI at Acquisition is the assumed annual net operating income excluding any special factors from the year ofacquisition, and it is the net operating income of the first year used by the appraiser in their DCF valuation. NOI
yield at Acquisition is calculated by dividing NOI at Acquisition by the Acquisition Price. Amounts less than amillion are rounded down. The above is an expected NOI, and not a forecast for the October 2016 fiscal period.
The NOI calculated using the NOI employed in the direct capitalization valuation method from the appraisal report
divided by the Acquisition Price is 5.2%.
Depreciation Rate is derived from the expected annual amount of depreciation at acquisition divided by the
Acquisition Price. The above is an expected rate, and not a forecast for the October 2016 fiscal period.

9

Appraisal Overview
Name

Ichigo Ningyocho Building

Appraisal Value

1,530,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

March 1, 2016

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
IncomeVacancy Loss
Expenses

AmountNote

1,530,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,610,000,000 yen
105,126,845 yen
110,489,310 yen
5,362,465 yen

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

29,167,012 yen

Administrative andMaintenanceExpenses

6,878,222 yen

Based on similar assets and past actual amounts

Utility Expenses

8,343,028 yen

Based on similar assets and past actual amounts

Repair Expenses

3,410,000 yen

Based on engineering reports and similar assets

PM Fees

2,445,150 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes

711,805 yen
7,134,400 yen

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

Insurance Premiums

139,280 yen

Based on the standard of similar assets and past actual amounts

Other Expenses

105,127 yen

Bank commissions and other expenses

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

75,959,833 yen
1,560,571 yen

Based on 2.0% investment yield

8,370,000 yen

Based on engineering reports and similar assets

Net Profit

69,150,404 yen

Cap Rate

4.3%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,490,000,000 yen

Discount Rate

4.4%

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

Terminal Cap Rate

4.5%

Based upon risk-adjusted NOI

Value via Cost Approach

1,470,000,000 yen

Land

95.1%

Building

4.9%
Notes

None

10

(3)

Ichigo Nishi Honmachi Building(i) Location
The building is located in the Nishi-Honmachi area, a commercial and businesscenter in Osaka where many mid- and high-rise office buildings and stores arelocated. The area is close to Awaza Station on the Osaka Municipal Subway Chuo
Line and Sennichimae Line, and Honmachi Station on the Yotsubashi Line.
Thanks to the many subway lines within easy walking distance, the area boasts
strong access to Umeda and other major business centers within Osaka.
(ii) Features
This mid-size office building situated on Chuo Odori Boulevard is a 4-minute walkfrom Awaza Station on the Osaka Municipal Subway Chuo Line and Sennichimae
Line.
Each floor has a standard floor plate of 162 tsubo (530 m2) which is sub-divisible tosuit the needs of its tenants. The common areas in the building were renovated in
February 2014.
(iii) Property Photos and Location

11

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking Co., Ltd.

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

2-2-18 Awaza, Nishi-ku, OsakaLand

Building

Property Right

FreeholdSize

1,081.64 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/800%

Property Right

Freehold

Zoning(1) Office (2) Parking (3) Building Manager’s Office

Structure(1) SRC 14F (2) Steel 1F (3) Concrete Block 1F

Total Floor Area

(1) 8,403.09 m2 (2) 44.77 m2 (3) 4.48 m2

Construction Date

October 22, 1990

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,290,000,000 yen

Appraisal Date

March 1, 2016

Value by Direct Capitalization Method

2,330,000,000 yen

Architect1

Nikken Sekkei Ltd. First-class Registered Architect Office1

Builder

Konoike Construction Co., Ltd.

Structural Engineer1
Inspection Agency

Nikken Sekkei Ltd. First-class Registered Architect Office1

City of Osaka

PML (Assessor)

9.68% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

No (expected)
Rent Overview (as February 29, 2016)

Number of Tenants

29

Monthly Rental Income

14,369 thousand yen

Deposit

127,598 thousand yen

Leasable Area

6,151.98 m2

Leased Area

5,788.00 m2

Occupancy

94.1%

Property Management Company

Japan Property Solutions Co., Ltd. (Expected)

Master Lease Company

Ichigo Office REIT Investment Corporation (Expected)

Master Lease Type
Assumed NOI (NOI yield)
Depreciation Rate3

Pass-through (Expected)
2

123 million yen (5.6%)
1.5%
Special Items

1. Part of a drain spout encroaches a southern neighbor. A memorandum of understanding exists which agrees to rectify
the situation when the parts are reconfigured in the future.
2. Part of a fence and a concrete mass encroach an eastern neighbor. A memorandum of understanding exists which agrees
to rectify the situation when the parts are reconfigured in the future.
3. A lease termination notification has been received from one to the tenants (leased area: 78.00 m2) on September 30,

12

2015 to terminate the contract as of March 31, 2016. The occupancy of the building is expected to be 92.8% after thetermination. 4
1

2

3

4

The names of the architect, builder, structural engineer, and inspection agency are those of when the building wasbuilt.
NOI at Acquisition is the assumed annual net operating income excluding special factors from the year ofacquisition, and it is the net operating income of the first year used by the appraiser in their DCF valuation. NOI
yield at Acquisition is calculated by dividing NOI at Acquisition by the Acquisition Price. Amounts less than amillion are rounded down. The above is an expected NOI, and not a forecast for the October 2016 fiscal period.
The calculated using the NOI employed in the direct capitalization valuation method from the appraisal report
divided by the Acquisition Price is 6.2%.
Depreciation Rate is derived from the expected annual amount of depreciation at acquisition divided by the
Acquisition Price. The above is an expected rate, and not a forecast for the October 2016 fiscal period.
A new tenant has signed a lease contract on March 25, 2016 (to-be-leased area: 78.00 m2) to start leasing on April
1, 2016. Including this new lease contract, the occupancy of the building is expected to be 94.1%.

13

Appraisal Overview
Name

Ichigo Nishi Honmachi Building

Appraisal Value

2,290,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

March 1, 2016
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeNote2,290,000,000 yen

Valuation determined via both a direct capitalization
valuation and DCF valuation

2,330,000,000 yen
224,887,740 yen

Maximum Obtainable
Rental Income

236,658,832 yen

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

Vacancy Loss

11,771,092 yen

Based on mid- to long-term vacancy rate

Expenses

89,637,658 yen

Administrative andMaintenance Expenses

22,332,800 yen

Based on similar assets and past actual amounts

Utility Expenses

33,499,260 yen

Based on similar assets and past actual amounts

Repair Expenses

4,156,000 yen

Based on the average of the past 12 years of engineering
reports

PM Fee4,924,842 yen

2.5% of rental income based on current rate

Leasing Brokerage
Fees1,457,113 yen

Based on the expected turnover rate, past actual amount, andtenant acquisition costs for similar assets

Taxes

22,049,800 yen

Based on FY2015 actual amounts

Insurance Premiums

543,180 yen

Based on the standard of similar assets and past actual
amounts

Other Expenses

674,663 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

135,250,082 yen
2,652,025 yen

Based on 2.0% investment yield

19,106,333 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

118,795,774 yen

Cap Rate

5.1%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,270,000,000 yen

Discount Rate

4.9%

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

Terminal Cap Rate

5.3%

Based upon risk-adjusted NOI

Value via Cost Approach

2,680,000,000 yen

Land

66.4%

Building

33.6%
Notes

None

14

(4)

Ichigo Hakata Building(i) Location
The Hakata Eki-Mae area (the area in front of Hakata Station) is a commercial area
located on the western side of Hakata Station on the Fukuoka City Subway Airport
Line. It is an area known as “The Gateway to Asia” and along with the Tenjin area isa major business district in Fukuoka.
Office buildings and retail/office buildings are concentrated in the area around amajor shopping mall Canal City Hakata. The area is expected to draw steady demand
from potential tenants.
(ii) Features
This mid-size office building is conveniently located within walking distance from
Tenjin and Central Hakata and is only a one-minute walk from Gion Station of the
Fukuoka City Subway Kuko Line.
The building has an aluminum curtain wall façade. With a standard floor area of 88
tsubo (290 m2) and ceilings that are 2.5 meters high, the building has highcompetitiveness in the area thanks to its individual air conditioning systems andmechanical parking garage accommodating up to 36 cars.
(iii) Property Photos and Location

15

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking Co., Ltd.

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

1-28 Gionmachi, Hakata-ku, Fukuoka, Fukuoka Prefecture

Land

Building

Property Right

FreeholdSize

644.27 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%, 80%/400%

Property Right

Freehold

ZoningOfficeStructure

SRC B1F/9F

Total Floor Area

3,469.90 m2

Construction Date

April 17, 1989

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

1,410,000,000 yen

Appraisal Date

March 1, 2016

Value by Direct Capitalization Method

1,480,000,000 yen

Architect1

Tsukasa Architectural Office1

Builder

Araigumi Co., Ltd.

Structural Engineer1
Inspection Agency

Tsukasa Architectural Office1

City of Fukuoka

PML (Assessor)

0.75% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

No (expected)
Rent Overview (as of February 29, 2016)

Number of Tenants

30

Monthly Rental Income

6,756 thousand yen

Deposit64,427 thousand yen

Leasable Area

2,423.86 m2

Leased Area

2,423.86 m2

Occupancy

100%

Property Management Company

Xymax Properties Kyusyu Corporation (Expected)

Master Lease Company

Ichigo Office REIT Investment Corporation (Expected)

Master Lease Type
Assumed NOI (NOI yield)
Depreciation Rate3

Pass-through (Expected)
2

69 million yen (5.0%)
0.9%
Special Items

1. An easement for the purpose of walkthrough has been set on the southwestern and southeastern side of the land. As aresult, 38.84 m2 on the southwestern part of the land is used by the general public as a road.
2. A construction inspection report indicates a guide light should be repaired. The seller agreed to rectify the situation at
the cost of the seller. The report also indicates that an automatic fire alarm system located in area leased to a tenant
should be repaired. Since it was due to the tenant’s layout change that made it necessary to add an additional automatic

16

fire alarm system, the seller agreed to ask the tenant to rectify the situation.
3. A lease termination notification was received from one of the tenants (leased area: 47.57 m2) on January 4, 2016 toterminate the contract as of July 4, 2016. Also, another lease termination notification was received from another tenant(leased area: 146.45 m2) on January 27, 2016 to terminate the contract as of July 31, 2016. The occupancy of thebuilding is expected to be 92.0% after these terminations.
1
The names of the architect, builder, structural engineer, and inspection agency are those of when the building wasbuilt.
2
NOI at Acquisition is the assumed annual net operating income excluding any special factors from the year ofacquisition, and it is the net operating income of the first year used by the appraiser in their DCF valuation. NOI
yield at Acquisition is calculated by dividing NOI at Acquisition by the Acquisition Price. Amounts less than amillion are rounded down. The above is an expected NOI, and not a forecast for the October 2016 fiscal period.
The NOI calculated using the NOI employed in the direct capitalization valuation method from the appraisal report
divided by the Acquisition Price is 6.1%.
3
Depreciation Rate is derived from the expected annual amount of depreciation at acquisition divided by the
Acquisition Price. The above is an expected rate, and not a forecast for the October 2016 fiscal period.

17

Appraisal Overview
Name

Ichigo Hakata Building

Appraisal Value

1,410,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

March 1, 2016
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
ExpensesNote

1,410,000,000 yen

Valuation determined via both a direct capitalization
valuation and DCF valuation

1,480,000,000 yen
115,955,673 yen
122,515,130 yen
6,559,457 yen

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

32,522,597 yen

Administrative andMaintenance Expenses

7,918,700 yen

Based on similar assets and past actual amounts

Utility Expenses

9,678,372 yen

Based on similar assets and past actual amounts

Repair Expenses

2,474,333 yen

Based on the average of the past 12 years of engineering
reports

PM Fee2,110,149 yen

Based on similar assets

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure872,312 yen
8,086,204 yen
222,970 yen
1,159,557 yen

Based on FY2015 actual amounts
Based on the estimate and standard of similar assets
Consumable goods, etc.

83,433,076 yen
1,644,832 yen

Based on 2.0% investment yield

8,236,000 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

76, 841,908 yen

Cap Rate

5.2%

Value via DCF Method

Based on the expected turnover rate and tenant acquisition
costs for similar assets

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

1,380,000,000 yen

Discount Rate

5.0%

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

Terminal Cap Rate

5.4%

Based upon risk-adjusted NOI

Value via Cost Approach

1,590,000,000 yen

Land

81.3%

Building

18.7%
Notes

None

18

(5)

Nishiki First Building(i) Location
The Fushimi area is located between Nagoya’s two major commercial districts,
Meieki and Sakae. The area has historically been a major commercial area with
office buildings and financial institutions.
The area attracts interest from major companies headquartered in the Tokyo or
Kansai area seeking branch offices, and also from Tokai-based companies seeking
headquarter offices.
(ii) Features
This mid-size office building is a 6-minute walk from Fushimi Station on the Nagoya
City Subway Tsurumai Line and Higashiyama Line.
The standard floor plate is 180 tsubo (594 m2) offering a relatively large space fortenants seeking office space in the Fushimi area. The building is competitive from aleasing perspective, with 2.5 meters high ceilings, individual air conditioning for theoffice spaces, raised access flooring, and frequently-refreshed common areas.
A subsidiary of a TSE First Section-listed telecommunications company is currently
the single tenant renting the whole building.
(iii) Property Photos and Location

19

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust Bank, Limited

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

1-8-8 Nishiki, Naka-ku, Nagoya, Aichi Prefecture

Land

Building

Property Right

FreeholdSize

947.10 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%

Property Right

Freehold

ZoningOffice, Conference Room, Parking

Structure

SRC B1F/7F

Total Floor Area

5,740.45 m2

Construction Date

October 23, 1984

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,050,000,000 yen

Appraisal Date

March 1, 2016

Value by Direct Capitalization Method

2,080,000,000 yen

1Architect

Nikken Sekkei Ltd. Nagoya Office

Builder1

Joint Venture of Obayashi Corporation, Sato Kogyo, and Shimizu Corporation
1

Structural Engineer

Nikken Sekkei Ltd. Nagoya OfficeInspection Agency1

City of Nagoya

PML (Assessor)

8.84% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

No (expected)
Rent Overview (as of February 29, 2016)

Number of Tenants

1Monthly Rental Income(Note)

Deposit(Note)

Leasable Area

3,324.54 m2

Leased Area

3,324.54 m2

Occupancy

100%

Property Management Company

The Dai-Ichi Building Co., Ltd. (Expected)

Master Lease Company

Ichigo Office REIT Investment Corporation (Expected)

Master Lease Type

Pass-through (Expected)

Assumed NOI (NOI yield)2

115 million yen (5.8%)

Depreciation Rate3

0.9%
Special Items

A construction inspection report indicates a foam fire extinguishing apparatus should be repaired. The seller agreed to ask
tenants to rectify the situation at the cost of the seller.
1
The names of the architect, builder, structural engineer, and inspection agency are those of when the building wasbuilt.
2
NOI at Acquisition is the assumed annual net operating income excluding any special factors from the year of20

acquisition, and it is the net operating income of the first year used by the appraiser in their DCF valuation. NOI
yield at Acquisition is calculated by dividing NOI at Acquisition by the Acquisition Price. Amounts less than amillion are rounded down. The above is an expected NOI, and not a forecast for the October 2016 fiscal period.
The NOI calculated using the NOI employed in the direct capitalization valuation method from the appraisal report
divided by the Acquisition Price is 5.8%.
3Depreciation Rate is derived from the expected annual amount of depreciation at acquisition divided by the
Acquisition Price. The above is an expected rate, and not a forecast for the October 2016 fiscal period.
(Note) The tenant did not give consent to disclose this data.

21

Appraisal Overview
Name

Nishiki First Building

Appraisal Value

2,050,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

May 1, 2016
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
ExpensesNote

2,050,000,000 yen

Valuation determined via both a direct capitalization
valuation and DCF valuation

2,080,000,000 yen
156,725,723 yen
161,746,856 yen
5,021,133 yen

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

40,342,312 yen

Administrative andMaintenance Expenses

6,957,900 yen

Based on similar assets and past actual amounts

Utility Expenses

15,180,912 yen

Based on similar assets and past actual amounts

Repair Expenses

2,191,083 yen

Based on the average of the past 12 years of engineering
reports

PM Fee1,560,000 yen

Based on similar assets

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

940,557 yen
11,617,500 yen
327,060 yen
1,567,300 yen

Based on FY2015 actual amounts
Based on the estimate and standard of similar assets
Consumable goods, etc.

116,388,411 yen
1,763,694 yen

Based on 2.0% investment yield

14,390,167 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

103,756,938 yen

Cap Rate

5.0%

Value via DCF Method

Based on the expected turnover rate and tenant acquisition
costs for similar assets

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,040,000,000 yen

Discount Rate

4.8%

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

Terminal Cap Rate

5.2%

Based upon risk-adjusted NOI

Value via Cost Approach

1,700,000,000 yen

Land

79.3%

Building

20.7%
Notes

None

22

IV. Seller Profile
Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
Office REIT or AssetManager1

Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
Office REIT or AssetManager11Motoazabu Holdings GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Mariko Hirano
1. The acquisition, holding, and sale of trust
beneficiary interest (juekiken)
2. The holding, management, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
June 8, 2015
Ippan Shadan Hojin Star Holding
While the Seller is not a related party as defined in the
Act on Investment Trusts and Investment Corporations(the “Act”), the acquisition process has followed theinternal rules of IRE vis-à-vis related party transactions
for the following reasons: First, Ichigo Inc., the 100%
owner of IRE, is a related party according to the Act,and Ichigo Inc. owns more than half of the equity ofMotoazabu Holdings GK. Second, Ichigo Estate Co.,
Ltd., a related party as defined in the Act, has provided
asset management advisory services to IRE.
Ikenohata Holdings GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Hiroshi Sasaki
1. The acquisition, holding, and sale of trust
beneficiary interest (juekiken)
2. The holding, management, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
June 8, 2015
Ippan Shadan Hojin Star Holding
While the Seller is not a related party as defined in the
Act on Investment Trusts and Investment Corporations(the “Act”), the acquisition process has followed theinternal rules of IRE vis-à-vis related party transactions
for the following reasons: First, Ichigo Inc., the 100%
owner of IRE, is a related party according to the Act,and Ichigo Inc. owns more than half of the equity of
Ikenohata Holdings GK. Second, Ichigo Estate Co.,
Ltd., a related party as defined in the Act, has provided
asset management advisory services to IRE.

Ichigo Office REIT followed strict related-party procedures to safeguard against
conflicts of interest. Ichigo Office REIT also obtained second opinions to assess thefairness of the transaction prices.

23

V.

Ownership History
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT
Acquisition
Rationale
Acquisition Price
Acquisition Date
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT
Acquisition
Rationale
Acquisition Price
Acquisition Date
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT
Acquisition
Rationale
Acquisition Price
Acquisition Date
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT
Acquisition
Rationale
Acquisition Price
Acquisition Date

Ichigo Shibuya East Building
Current Owner
Motoazabu Holdings GK
Related Party as defined in theinternal rules of IRE. Pleasesee “Seller Profile” in Section
IV.

Previous Owner
Unrelated Party―

Investment―

1,320,000,000 yen
July 30, 2015――

Ichigo Ningyocho Building
Current Owner
Motoazabu Holdings GK
Related Party as defined in theinternal rules of IRE. Pleasesee “Seller Profile” in Section
IV.

Previous Owner
Unrelated Party―

Investment―

1,420,000,000 yen
July 30, 2015――

Ichigo Nishi Honmachi Building
Current Owner
Previous Owner
Motoazabu Holdings GK
Unrelated Party
Related Party as defined in theinternal rules of IRE. Please―see “Seller Profile” in Section
IV.
Investment―

2,150,000,000 yen
July 30, 2015――

Ichigo Hakata Building
Current Owner
Ikenohata Holdings GK
Related Party as defined in theinternal rules of IRE. Pleasesee “Seller Profile” in Section
IV.

Previous Owner
Unrelated Party―

Investment―

1,350,000,000 yen
July 30, 2015

―
―

24

Asset Name
Overview
Name
Relationship to
Ichigo Office REIT
Acquisition
Rationale
Acquisition Price
Acquisition Date

VI.

Nishiki First Building
Current Owner
Ikenohata Holdings GK
Related Party as defined in theinternal rules of IRE. Pleasesee “Seller Profile” in Section
IV.

Previous Owner
Unrelated Party―

Investment―

1,960,000,000 yen
July 30, 2015――

Broker Profile

N/A

VII.

Forward Commitment

Because the settlement date for this acquisition is May 9, 2016, one month plus one day fromtoday, the acquisition (hereafter, the “Conveyance Agreement”) constitutes a forward
commitment by Ichigo Office REIT as stipulated in the “Comprehensive Guidelines forSupervision of Financial Instruments Business Operators, etc.” by the Financial Services
Agency.1
In the event of a violation of the provisions of the Conveyance Agreement by Ichigo Office
REIT or the seller, the other party shall have the right to terminate the Conveyance Agreement
and claim an amount equivalent to 10% of the purchase price as penalty for the agreement
termination. Since the Conveyance Agreement stipulates that Ichigo Office REIT is obliged tomake payments on the condition that it has completed the necessary fundraising to pay for theacquisition, and since Ichigo Office REIT is not obliged to pay the acquisition price should it beunable to raise funds for the payment, it is unlikely that the Conveyance Agreement will have amaterial impact on its earnings or dividends.
1

Refers to a postdated purchase and sale agreement under which payment and property delivery
shall be made at least 1 month after the conclusion of the agreement, or any other agreement
similar thereto.

VIII.

IX.

Acquisition Schedule
Contract Date

April 8, 2016

Settlement and Acquisition Date

May 9, 2016 (Expected)

Future Outlook

For the acquisition’s earnings impact, please refer to today’s release “Earnings and Dividend
Forecast Revisions for the October 2016 Fiscal Period and Forecast for the April 2017 Fiscal
Period.”25

Portfolio Reference Information

Ichigo Office REIT Strategic Restructuring Objectives
1.

Increase NOI and Dividend
Increase NOI with High-Quality Acquisitions using Proceeds from Asset Sales and
Low-Cost Debt (Low LTV = Additional Borrowing Capacity)
Reduce Cost of Debt by Paying Down Higher-Cost Existing Debt with the Proceedsfrom Asset Sales, while Funding New Acquisitions with Lower-Cost Debt

Revise Up October 2016 Dividend (+90 yen vs. Initial Forecast)2.

Increase Portfolio Quality
Sold Low-Upside Assets
Acquired High-Quality Prime Location Assets via Ichigo’s Sponsor Support

3.

Generate Capital Gains on Low-Upside Asset Sales into Strong Market
Sell Low-Upside Assets into a Strong Market and Generate JPY 300M in Capital
Gains
Retain Capital Gains in Dividend Reserve and Deploy against Future Dividends

26

1. Post-Acquisition Portfolio

Pre- Acquisition
Number of Assets

Asset
Sales

Asset
Acquisitions

Post- Acquisition

77

4

5

78

Acquisition Price (billion yen)

165.6

2.9

8.3

171.0

Office Ratio

85.5%

69.5%

100.0%

86.5%

9.1

0.2

0.5

9.4

4.5%

5.1%

4.8%

4.5%

Average Occupancy

96.0%

93.8%

96.8%

96.2%

3

725

50

72

747

+8.4

0

+0.3

+8.7

Annual NOI (billion yen)

1

2

Average Post-Depreciation NOI Yield
3

Number of Tenants

Unrealized Gains (billion yen)

4

1

Pre-Acquisition NOI yield annualizes the actual NOI for the October 2015 fiscal period (except for
assets acquired within the fiscal period, which use the NOI from the Direct Capitalization Method(DCM) appraisal at acquisition). Asset Acquisitions NOI yield uses the NOI in the DCM appraisal
value at acquisition.
2
Average Post-Depreciation NOI Yield is calculated as the total NOI of the five assets at acquisition
minus actual depreciation during the October 2015 fiscal period converted to annual amountdivided by the total acquisition price. Asset Acquisitions Post-Depreciation NOI Yield is aprovisional calculation by the asset management company. Using provisional data that reflects thein-hand tenant lease termination notice at Akita Sanno 21 Building, which brings that building’s
occupancy to below 50%, the Asset Sales Post-Depreciation NOI Yield is 3.5%.
3
Average Occupancy and Number of Tenants is as of December 31, 2015 for Pre-Acquisition andAsset Sales, and as of February 29, 2016 for Asset Acquisitions and Post-Acquisition.
4
Pre-Acquisition and Asset Sales Unrealized Gains are calculated using the appraisal value andperiod-end book value of the October 2015 fiscal period. Asset Acquisitions Unrealized Gains arecalculated based on the appraisal value at acquisition and the expected acquisition price.

27

2. Post-Acquisition Portfolio Assets
Area

Acquisition
Price2(mm yen)% ofPortfolio

O-02 Ichigo Nishisando Building

Central Tokyo

3,254

1.9%

O-03 Ichigo Mita Building

Central Tokyo

2,740

1.6%

O-04 Ichigo Nanpeidai Building

Central Tokyo

1,920

1.1%

O-05 Ichigo Hanzomon Building

Central Tokyo

1,550

0.9%

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

0.4%

O-09 Ichigo Shibakoen Building

Central Tokyo

1,100

0.6%

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

1,917

1.1%

O-11 Ichigo Ginza 612 Building

Central Tokyo

1,773

1.0%

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

0.3%

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

0.4%

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

844

0.5%

O-20 Ichigo Gotanda Building

Central Tokyo

5,060

3.0%

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

0.4%

O-24 Ichigo Eitai Building

Tokyo Metropolitan Area

1,490

0.9%

O-25 Ichigo Yokosuka Building

Tokyo Metropolitan Area

971

0.6%

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

0.4%

O-29 Ichigo Kichijoji Building

2,160

1.3%

4,705

2.8%

6,710

3.9%

O-38 Ichigo Toyamaeki Nishi Building

Tokyo Metropolitan Area
Four Major Regional
CitiesFour Major Regional
CitiesOther Regional Cities

1,650

1.0%

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

1.2%

O-47 Ichigo Akihabara North Building

Central Tokyo
Four Major Regional
CitiesCentral Tokyo

5,500

3.2%

1,940

1.1%

2,210

1.3%

No.

1

Property

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

O-48 Ichigo Sakaisuji Honmachi Building
O-49 Ichigo Kanda Ogawamachi Building

28

Area1

Acquisition
Price2(mm yen)% ofPortfolio

O-50 Ichigo Hatchobori Building

Central Tokyo

1,905

1.1%

O-51 Ebisu Green GlassCentral Tokyo

5,900

3.4%

O-52 Ichigo Omori Building

Central Tokyo

3,850

2.3%

O-53 Ichigo Takadanobaba Building

Central Tokyo

1,580

0.9%

O-54 Ichigo Omiya Building

Tokyo Metropolitan Area

3,430

2.0%

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

0.8%

O-59 Ichigo Jingumae Building

Central Tokyo

7,200

4.2%

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

3,650

2.1%

O-61 Ichigo Hiroo Building

Central Tokyo

3,960

2.3%

O-62 Ichigo Sasazuka Building

Central Tokyo

4,780

2.8%

O-63 Ichigo Nihonbashi East Building

Central Tokyo

4,700

2.7%

O-64 Ichigo Sakurabashi Building

Central Tokyo

2,500

1.5%

O-65 Ichigo Shinkawa Building

Central Tokyo

2,360

1.4%

O-66 Ichigo Kudan Building

Central Tokyo

3,190

1.9%

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

3,660

2.1%

O-68 Axior Mita

Central Tokyo

1,800

1.1%

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metropolitan Area

4,570

2.7%

O-70 Koriyama Big-i (Office Section)

Other Regional Cities

1,660

1.0%

O-71 Ichigo Kawasaki Building

Tokyo Metropolitan Area

1,750

1.0%

O-72 Ichigo Shibuya East Building

Tokyo Metropolitan Area

1,350

0.8%

Tokyo Metropolitan Area
Four Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesSubtotal - Office (63 Properties)

1,450

0.8%

2,190

1.3%

1,380

0.8%

2,000

1.2%

147,988

86.5%

No.

Property

O-73 Ichigo Ningyocho Building
O-74 Ichigo Nishi Honmachi Building
O-75 Ichigo Hakata Building
O-76 Nishiki First Building

29

Area1

Acquisition
Price2(mm yen)% ofPortfolio

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

1.9%

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-07
Building

Tokyo Metropolitan Area
Four Major Regional
CitiesFour Major Regional
CitiesOther Regional Cities

1,310

0.8%

558

0.3%

638

0.4%

1,210

0.7%

Central Tokyo

2,400

1.4%

Tokyo Metropolitan Area

1,620

0.9%

Tokyo Metropolitan Area

2,430

1.4%

Tokyo Metropolitan Area

1,700

1.0%

Tokyo Metropolitan Area

1,400

0.8%

Subtotal - Others (15 Properties)

23,101

13.5%

Total (78 Properties)

171,089

100.0%

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 in
Securities

Total (2 TK Equity Interests)

1“Central Tokyo” refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards.
“Tokyo Metropolitan 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.
2
Acquisition Price excludes incidental expenses such as acquisition fees, property, city
planning, and consumption taxes, and other fees. For the 38 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 is shown.

30