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.

December 8, 2014
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Minoru Ishihara, Executive Vice President & Statutory Executive Officer
Tel: 03-3502-4891

New Loans and Interest Rate Swap
Ichigo Real Estate Investment Corporation (“Ichigo REIT”) has decided to borrow funds via
new loans and enter an interest rate swap agreement.
I. New Loans(i) Reason
During the October 2014 fiscal period, Ichigo REIT carried out Stage III “Enhance
Profitability” of it multi-stage growth strategy via executing upon its financing strategy
and external and internal growth strategies. As Stage IV “Increase Size & Scale” begins
from April 2015, Ichigo REIT is seeking to drive further dividend growth and maximize
shareholder value through strategically focusing its portfolio on mid-size offices, an asset
class that offers both stability of returns and upside potential.
In order to achieve these goals, Ichigo REIT has carried out a public offering and isacquiring eleven assets as announced in the November 14, 2014 releases “Issuance ofNew Shares and Secondary Share Offering” and “Asset Acquisitions and Sales.” Ichigo
REIT will acquire these assets using funds from the public offering, loans led bymegabanks, and cash on hand. The loans will strengthen Ichigo REIT’s lender base, andlengthen as well as diversify loan maturities.

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(ii) Loan Details
SMBC Syndicate Loan II (Term Loan 4) – 6 year maturity
Lenders

Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Principal Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation; Mizuho
Bank, Ltd.; Aozora Bank, Ltd.; Shinsei Bank,Limited; The Bank of Tokyo-Mitsubishi UFJ,Ltd.; Resona Bank, Limited
5,500 million yen
Acquisition of specified assets and related costs
December 10, 2014
December 10, 2020
3,437,500 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be January 2015 and the last
payment date will be the same as the Principal
Repayment Date)
1M JPY TIBOR + 0.85 % (p.a.)
Final business day of each month (the firstpayment date will be December 2014 and thelast payment date will be the same as thePrincipal Repayment Date)
Yes

SMBC Syndicate Loan II (Term Loan 5) – 3.5 year maturity
Lenders

Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Principal Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation; Mizuho
Bank, Ltd.; Aozora Bank, Ltd.; Shinsei Bank,Limited; The Bank of Tokyo-Mitsubishi UFJ,Ltd.; Resona Bank, Limited; The Kagawa Bank,Ltd.; ORIX Bank Corporation
1,500 million yen
Acquisition of specified assets and related costs
December 15, 2014
June 15, 2018937,500 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be January 2015 and the last
payment date will be the same as the Principal
Repayment Date)
1 M JPY TIBOR + 0.70 % (p.a.)
Final business day of each month (the firstpayment date will be December 2014 and thelast payment date will be the same as thePrincipal Repayment Date)
Yes2SMBC Syndicate Loan II (Term Loan 6) – 5 year maturity
Lenders

Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Principal Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation; Mizuho
Bank, Ltd.; Aozora Bank, Ltd.; Shinsei Bank,Limited; The Bank of Tokyo-Mitsubishi UFJ,Ltd.; Resona Bank, Limited
5,500 million yen
Acquisition of specified assets and related costs
December 15, 2014
December 16, 2019
3,437,500 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be January 2015 and the last
payment date will be the same as the Principal
Repayment Date)
1 M JPY TIBOR + 0.80 % (p.a.)
Final business day of each month (the firstpayment date will be December 2014 and thelast payment date will be the same as thePrincipal Repayment Date)
Yes

SMBC Syndicate Loan II (Term Loan 7) – 3.4 year maturity
Lenders

Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Principal Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation; Mizuho
Bank, Ltd.; Aozora Bank, Ltd.; Shinsei Bank,Limited; The Bank of Tokyo-Mitsubishi UFJ,Ltd.; Resona Bank, Limited; ORIX Bank
Corporation
1,500 million yen
Acquisition of specified assets and related costs
January 9, 2015
June 15, 2018937,500 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be January 2015 and the last
payment date will be the same as the Principal
Repayment Date)
1 M JPY TIBOR + 0.70 % (p.a.)
Final business day of each month (the firstpayment date will be January 2015 and the last
payment date will be the same as the Principal
Repayment Date)
Yes3

II. Interest Rate Swap(i) Reason
To fix the interest payment amount of the aforementioned Term Loan 4 and hedge against
a rise in interest rates.
(ii) Swap Details
Counterparty
Notional Principal
Interest Rate

Contract Date
Commencement Date
Termination Date
Interest Payment Date

Mizuho Bank, Ltd.
5,500 million yen (Amortized by 3,437,500 yen
on each Interest Payment Date)
Fixed Interest Rate: 1.26750%
Floating Interest Rate: 1 M JPY TIBOR+ 0.85 % (p.a.)
December 8, 2014
December 10, 2014
December 10, 2020
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be January 2015 and the last
payment date will be the same as the Principal
Repayment Date)(Note) The interest rate swap agreement shall, in effect, fix the interest rate of Term Loan
4 at 1.26750%.
III. Future Outlook
There is no amendment to Ichigo REIT’s earnings and dividend forecast as announced in“Earnings and Dividend Forecast Revisions for the October 2014 and April 2015 Fiscal Periods”
on November 14, 2014.
IV. OtherRisks related to this loan and swap have no material impact on the “Investment Risks” describedin the latest Securities Report (submitted November 14, 2014).

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Reference: Loan Composition after New Borrowing■ Outstanding Loan Balance(million yen)
Before execution

After execution(Expected as ofJanuary 9, 2015) 1

Short-term borrowings

000

Long-term borrowings(due within one year)

19,743

16,825-2,918Long-term borrowings

36,13644,266

8,130

Total amount of borrowings

55,88061,091

5,211

Investment corporation bonds

00055,880

61,0915,21100055,880

61,091

5,211

Total amount of borrowings andInvestment corporation bonds
Other interest-bearing
liabilities
Total of interest-bearing
liabilities
1Increase/Decrease

These figures assume that all loans are executed as planned and all assets announced inthe November 14, 2014 release “Asset Acquisitions and Sales” are sold, and theproceeds are used to repay 8,771 million yen of existing loans.

■ Outstanding Loan Balance (as of January 9, 2015)
ORIX Bank
2%

Shinsei
Trust *3
2%

Bank of Fukuoka 2%

MetLife Alico
3%
Tokyo Star
3%
Kagawa Bank
3%

SMBC
22%

Tokyo MUFJ
3%

Shinsei Trust *2
5%

Mizuho Bank
9%

Prudential LPS
6%

Mizuho Trust
4%

Resona Bank10%Shinsei Bank
13%

Aozora Bank
13%

2

Source of funds is Investment LPS managed by AXA Real Estate Investment Managers
Japan KK

3

Cash funding is provided by Ichigo Group Holdings Co., Ltd.

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■ Distribution of Repayment Dates (Expected, as of January 9, 2015)(million yen)
20,00010,000

9,517
7,530
6,581
5,900
4,450

6,422
5,417

5,431

4,310
2,430
1,765

0
April 2015

Oct 2015

April 2016

Oct 2016

April 2017

Oct 2017

April 2018

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

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Oct 2018

April 2019Oct 2019

April 2020

Oct 2020

April 2021