NEWS RELEASE
November 2, 2023
For Immediate Release
Investment Corporation
Japan Real Estate Investment Corporation
Jo Kato, Executive Director(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Shojiro Kojima, President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Strategic Planning Department
Phone: +81‐3‐3211‐7951

Announcement of Acquisition of Domestic Real Estate
Japan Real Estate Investment Corporation (“JRE”) hereby announces that Japan Real Estate AssetManagement Co., Ltd. (“JRE‐AM”), the asset management company to which JRE entrusts asset investment,
today decided to acquire domestic real estate as follows:

1. Outline of the Acquisition
Property nameSeavans S Building (additional acquisition)(ratio of ownership interest: 4.21725%)

Acquisition price (planned)

JPY 2,290 million

SellerUndisclosed (see item 4 below)

Brokerage

Yes (not an interested party)

Decision dateNovember 2, 2023

Contract dateNovember 2, 2023

Transfer date (scheduled)

December 1, 2023

Payment date (scheduled)
December 1, 2023
(Note) The ratio of ownership interest in the field of “Property name” indicates the percentage of JRE’s
ownership interest in the entire property. JRE acquired partial ownership of the property (13.45%)
on January 31, 2020, and the total ownership ratio will become 17.66725% with the additionalacquisition.
2. Reason for the Acquisition
JRE will acquire the property pursuant to the policies and types of assets targeted for asset investment
stipulated in its Articles of Incorporation. The property is high‐specification building with great functionality,
situated in a favorable location in central Tokyo, which JRE determined will contribute to enhancing its
medium‐ to long‐term competitiveness and expanding its asset size.
The property was evaluated for the following points in particular:(1) Excellent building and facilities
1Seavans S Building S is an office building with high specification features, including a ceiling height of
2.7 meters, a raised floor of 80 millimeters, and an electrical capacity of 45VA/m2. Typical office floors
are equipped with rectangular and pillar‐free floor plates of approx. 2,000 m2, where flexible
workspace arrangements according to various business needs can be accommodated. Significant
renovations have been carried out in 2012, retaining a grade comparable to new buildings. The
property received the highest S rank under the CASBEE Certification, demonstrating highcompetitiveness in terms of environment.
(2) Superior location
The property offers excellent access to domestic and international transportation, conveniently locatedseven minutes on foot from Hamamatsucho station on JR Lines and Tokyo Monorail Line, and three minutes
on foot from Tokyo Waterfront New Transit Waterfront Line (Yurikamome) Hinode station, for connection
to Tokyo and Shinagawa stations for using the Shinkansen bullet train, and to the Haneda Airport. Apedestrian deck extends from Hamamatsucho station close to the proximity of the property.
Hamamatsucho station is currently undergoing renovation, with planned improvement of the pedestrian
network surrounding the station including widening of the deck from the south gate which leads to theproperty. In addition, a large complex facility is being developed in the adjacent district, expected to further
increase in the value of the area.
3. Description of the Property to Be Acquired
Seavans S Building (additional acquisition)
Property name(ratio of ownership interest: 4.21725 %)Type of specified asset
Domestic real estate
Type of ownership
Ownership pertaining to the following:
・ 1‐3‐12, Shibaura, Minato‐ku, Tokyo (3,832.26m2):
Land
Co‐ownership interest of 55,637/400,000
Co‐ownership interest of sectional ownership (Seavans S Bldg.
business interest: 4.21725%)
Building
・ For 16th through 22nd floor (13,932.31m2):
Co‐ownership interest of one‐seventh
Location (Building address)
1‐2‐3, Shibaura, Minato‐ku, Tokyo
Usage
OfficesAreaLand
26,468.48 m2 (area stated in the real property registry)
166,405.36 m2
Building(gross floor area stated in the real property registry)
S/RC/SRC structure with flat roof, 24 stories above the ground
Structureand 2 basement levels
Typical floor area
2,012 m2
Completion
January 1991
Matters related to
PML: 1.7% (based on the seismic risk assessment report by Tokio
earthquake resistanceMarine dR Co., Ltd.)
Mortgage
Yes (to be released before the transfer)Appraisal value
JPY 2,300 million(Date of value)(as of October 1, 2023)
Appraisal institution
Daiwa Real Estate Appraisal Co., Ltd.
Outline of lease
Total number of tenants 16
Total rent revenues
JPY 140 million per year
No receipt of security deposits based on Agreement between theSecurity deposit
co‐owners
Total leased area
1,782 m2
Net rentable area
1,906 m2
Occupancy rate
March 31, 2022
100.0%
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Special notes

September 30, 2022
84.6%
March 31, 2023
92.3%
September 30, 2023
97.9%
Scheduled acquisition date 93.5%
・Matters pertaining to the first option on the transfer of sectional
ownership interest in the property is provided for in the co‐owners agreement. Note that no right of the site pertaining to thesectional ownership interest is established over said land.
・The boundary confirmation has not been completed.
・According to a survey report prepared by Tokio Marine dR Co.,
Ltd., the land‐use history research found that the possibility ofsoil contamination cannot be denied; however, a risk of healthhazard is deemed low.

(Note)
・JRE, upon acquisition of the property, will lease the whole space to be acquired to a master lesseein accordance with a joint operating agreement, in which the master lessee will then sublease
it to third parties under a master lease contract of a pass‐through type.
・”Area” represents ones stated in the real property registry, which is subject to the whole building
and site comprised of Seavans S Bld., N Bldg., and AMALL.
・ “Structure,” and “Completion” show the same entries stated in the real property registry.
“Usage,” however, indicates the main entries, among those listed in the real property registry.
・ “Outline of lease” is based on the data provided by the seller.
・ JRE ʼ s business balance is calculated in accordance with the joint operating agreement, bymultiplying that of the whole Seavans S Bldg. by JREʼs additionally acquired business interest init (4.21725%).
・“Total rent revenues,” “Total leased area,” and “Net rentable area” represent the figures derived
by multiplying the ones pertaining to the whole Seavans S Bldg. by JRE’s additionally acquired
business interest in it (4.21725%).
・As for “Security deposit”, they are centrally managed by the master lessee under the master lease
contract.
・”Total number of tenants” and “Occupancy rate” are the ones pertaining to the whole Seavans SBldg.
・ “Total number of tenants,” “Total leased area,” “Net rentable area,” and “Occupancy rate on thescheduled acquisition date” are forecasts as of the scheduled acquisition date.
・ NOI (Net Operating Income): JPY 95 million a year (an estimated amount)・ Depreciation: JPY 19 million a year (an estimated amount)
4. Outline of Seller
The seller’s information is undisclosed due to the absence of its consent.
There are no capital, personnel or business relationships to note between JRE or JRE‐AM and the seller.
In addition, the seller does not fall under the category of a related party of JRE or JRE‐AM.
5. Status of Owners, Etc. of the Property
This property is not acquired from any party that falls under an interested party of JRE or JRE‐AM.
6. Settlement Method
1) Acquisition fund (anticipated)
Loans and cash on hand(Note) For more information about loans for the acquisition, the details will be announced once they are determined.

2) Settlement method
Lump‐sum payment at the time of transfer
37. Future Outlook
The scheduled date of acquisition of the property falls under the operating period ending March 2024,
and there is no impact on the operating performance of JRE in the fiscal period ending September 2023
(April 1, 2023 to September 30, 2023). Moreover, there are no revisions to the operating performance
forecast for the fiscal period ending March 2024 (October 1, 2023 to March 31, 2024) as the acquisitions
will likely have only a marginal effect on performance.
<Reference>
Performance forecasts announced on May 15, 2023 and actual results
Operating
Revenues

Operating
ProfitOrdinary
ProfitNet Profit

Dividend perUnit (excluding
dividend inexcess ofearnings)

JPY million

JPY million

JPY million

JPY millionJPY

JPY

37,34517,041

16,172

16,161

11,667

038,61017,39016,38016,37011,500041,05019,32018,26017,62011,5500

Period ended

March 31,2023(Actual)September 30,2023(Forecast)March 31,2024(Forecast)

Dividend inexcess ofearnings perunit

8. Summary of Appraisal Report
Property name

Seavans S Building (additional acquisition)(ratio of ownership interest: 4.21725%)
JPY 2,300 million
Daiwa Real Estate Appraisal Co., Ltd.
October 1, 2023

Appraisal value
Appraiser
Date of value
Item

Value indicated by the income approach
Value indicated by the direct
capitalization method(1) Operating income [①‐②]①Poten al rental income②Vacancy loss(2) Operating expenses
Maintenance andmanagement fee
Property management fee

AmountDescription

2,300,000

Indicated by the income approach, placing more weighton the DCF method that incorporates fluctuations of thefuture net cash flow, while employing the direct
capitalization method for verification

2,360,000
160,161
168,590
8,428

Estimated considering the medium‐ to long‐termcompetitiveness of the subject property and new rent
levels of comparable properties
Recorded based on expenses incurred in previous years
and average vacancy rates of comparable properties,
considering the competitiveness of the subject property

63,77024,404(note)

Estimated based on expenses incurred in previous years
for the maintenance and management fee, and thecurrent contract for property management fee

Utilities expenses

21,351

Repair expenses

841
1,137

Estimated referring to expenses incurred in previousyears
Estimated according to the average annual expenses
stated in the engineering report
Estimated considering levels of expenses of comparable
properties

14,935

Recorded on the basis of recent results432668
96,390Recorded on the basis of recent results

Leasing cost
Property tax and city
planning tax
Insurance Premium
Other expenses(3) Net operating income [(1)‐(2)]4Recorded on the basis of recent results

(4) Operating profit on lump‐sum payments

0(5) Capital expenditures

6,575(6) Net cash flow [(3)+(4) ‐ (5)]89,814(7) Capitalization rate

3.8%

Value indicated by the DCF method

Excluded from consideration in accordance with the ML
contract
Estimated referring to the average annual repair/renewal expenses stated in the engineering report
Estimated referring to the market capitalization rates ofcomparable properties

2,280,000

Discount rate

3.6%

Terminal capitalization rate

4.0%

Value indicated by the cost approach
Land ratio
Building ratio

2,060,000
89.0%
11.0%

Estimated from the discount rates in the transactions ofcomparable properties and comparisons with the yields
of other financial instruments, etc.
Estimated on the basis of the capitalization rate, while
taking into account the marketability of the subject
property at the end of the holding period* In thousands of yen (amounts are rounded down to the nearest thousand yen)

Any special considerations in thereconciliation between indicatedvalues and determination of the final
appraisal value
Note:

Nothing in particular

No consent has been obtained from the property management company to disclose the property
management fee as a separate item. Moreover, if the property management fee for the subject property isdisclosed separately, it might potentially affect other deals done by the property management company,
which could negatively affect JRE in efficiently delegating property management services under its policyon the maintenance and management of target investment properties. This could in turn undermine theinterests of its unitholders. Accordingly, the maintenance and management fee and the property
management fee are shown by the combined amount.

This is the English translation of the announcement in Japanese dated November 2, 2023.
No assurance or warranties are given for the completeness or accuracy of this English translation.
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(Reference) map of Seavans S Building(Reference) Exterior view of Seavans S Building

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