October 2, 2006
To whom it may concern:
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)
Contact: (Asset Management Contractor)
Japan Real Estate Asset Management Co., Ltd.
Haruhiko Araki, General Manager of Planning Department
Phone: +81-3-3211-7921

Announcement of Public Offering of Units
Please be informed that Japan Real Estate Investment Corporation (the “Corporation”) will make an
additional public offering of new units as resolved by the Board of Directors at a meeting held on October 2,2006.
1． Public offerings of new units(1)

Number of issues
to be publiclyoffered: 64,600 units(2)

Issue value: To be determined(Issue value shall be determined at the Board of Directors meeting held
on a date from October 16, 2006 (Mon) to October 19, 2006 (Thu).
(hereinafter referred to as “price determination date”).Issue valuemeans the value per unit the Corporation receives from underwriters. )(3)

Aggregate amount : To be determined.
of issue price(issue value)(4)

Subscription
Method: The new units shall be publicly offered and the Corporation will have thefollowing companies underwrite all the units on a firm commitment basis:
Nikko Citigroup Limited (Lead manager), Nomura Securities Co., Ltd.,
Shinko Securities Co., Ltd., Mizuho Securities Co., Ltd., Mitsubishi UFJSecurities Co., Ltd. and Daiwa Securities SMBC Co., Ltd. (hereinafter,collectively referred to as “Underwriters”).
In addition, the publicly subscribed issue price (offering price) shall betentatively set at the product of the closing price of a unit traded on thethe Tokyo Stock Exchange on the price determination date (or nearest date
if the closing price is not available on such given date), multiplied by aconversion factor of 0.90 – 1.00 (fractions omitted), and then finallydetermined taking into account the demand forecast.

(5)

Underwriting
agreement: Underwriters shall make payment of the aggregate amount of theissue value to the Corporation on the payment date. The pricedifference between issue price and issue value shall be the proceedsof each underwriter, and the Corporation will not pay an underwriting
fee to underwriters.

(6)

Demand forecast(bookbuilding)
period :: October 12, 2006 (Thu)
Through October 19, 2006 (Thu) (maximal length)

Disclaimer: This document is intended to serve as a press statement to make available the information on additional public offering ofunits of Japan Real Estate Investment Corporation (the “Corporation”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any unit or other investment of the Corporation. Prospective unitholders are advised toread the Corporation’s prospectus for new unit issuance (and its amendments, if any) before making investment decisions for yourself.

(7)Minimumsubscription unit

: 1 unit (subscriptions above one unit should be multiples of one unit).

(8)

Subscription
period: October 20, 2006 (Fri)through October 24, 2006 (Tue)Please note that the above subscription period may be moved up taking
into account the demand forecast. In that case, the earliest subscription
period shall be October 17, 2006 (Tue) through October 19, 2006 (Thu).

(9)

Payment date(10) Delivery date

: October 27, 2006 (Fri)Please note that the above payment date may be moved up, taking into
account the demand forecast. In that case, the earliest payment date shallbe October 24, 2006 (Tue).
: The next business day after the payment date.

(11) Offering price, issue value and other pertinent matters required for issuance of new units shall be
determined at the Board of Directors meeting from now on.
(12) Each clause mentioned above is under and subject to effective notification to the relevant
authorities pursuant to the Securities and Exchange Law.
2． Change of number of units issued and outstanding upon new issuance of units
Number of units outstanding before the offering
Number of newly issued units
Number of units outstanding after the issuance of units

345,400
64,600410,000

3． Reason for the issuance of units (use of proceeds), etc.
(1)

Reason for the issuance of units (use of proceeds)
Net proceeds from the offerings (approximately 61,300,000,000 yen) will be used primarily
for repayment of a portion of the existing borrowings and for the purchase of additional
specified properties.

(2)

Change in use of proceeds from the last issuance of units
Not applicable

4． Distribution of earnings to unitholders(1)

Basic policy regarding distribution of earnings
The distribution of earnings is based on the cash distribution policy defined in the Articles ofIncorporation.
Currently, the Corporation will not make a distribution in excess of earnings.

(2)

Distributions in past three periods

Distribution per Unit

the 7th Period

the 8th Period

the 9th Period

From October 1, 2004
To March 31, 2005

From April 1, 2005
To September 30, 2005

From October 1, 2005
To March 31, 2006

¥15,824¥15,951¥16,172

Disclaimer: This document is intended to serve as a press statement to make available the information on additional public offering of units of Japan Real
Estate Investment Corporation (the “Corporation”), and does not constitute and should not be construed as an offer to sell or solicitation of an offer topurchase any unit or other investment of the Corporation. Prospective unitholders are advised to read the Corporation’s prospectus for new unit issuance(and its amendments, if any) before making investment decisions for yourself.

5． Others(1)

Placement to specified persons
Not applicable(2)

Equity finance activities in the past three years
1) Equity finance
Unit: Million of yen
Date of issuance
Amount issued Unitholders’ capital
RemarkMay 11, 2001 (Establishment)
200
200
Private placement
September 8, 2001 (Note)
81,06081,260Public offering
May 8, 2002
30,892112,152
Public offering
October 25, 2003
21,295
133,448
Public offering
April 26, 2005
68,024201,472
Public offering(Note) Units were listed on Tokyo Stock exchange on September 10, 2001.
2) Unit price development in the past three computation periods and the latest period
the 7th Period

the 8th Period

the 9th Period

Unit: Yen
the 10th Period

From October 1, 2004 From April 1, 2005 From October 1, 2005 From April 1, 2006
To March 31, 2005 To September 30, 2005 To March 31, 2006 To September 30, 2006

OpenHighLow
Close(3)874,000
893,000
805,000
875,000

860,000
1,000,000
842,000
915,000

895,000
1,070,000
867,000
1,020,000

1,010,000
1,100,000
904,000
1,000,000

Restriction period on next additional issuance of units
The Corporation has an agreement with Nikko Citigroup Limited concerning the restriction ofadditional issuance of units for three months from the payment date of this public offering;
however Nikko Citigroup Limited has the authority to cancel all or part of this agreement or toshorten such restriction period at its discretion.

This notice is the English translation of October 2, 2006 announcement in Japanese on our website. However,no assurance or warranties are given for the completeness or accuracy of this English translation.

Disclaimer: This document is intended to serve as a press statement to make available the information on additional public offering of units of Japan Real
Estate Investment Corporation (the “Corporation”), and does not constitute and should not be construed as an offer to sell or solicitation of an offer topurchase any unit or other investment of the Corporation. Prospective unitholders are advised to read the Corporation’s prospectus for new unit issuance(and its amendments, if any) before making investment decisions for yourself.