February 28, 2017
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Hiroshi Nakajima, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Naoki Umeda, President & CEO
Contact: Ryuta Yoshida
Executive Officer & General Manager
Planning Department
Phone: +81-3-3211-7951

Notice on Acquisition of Domestic Property andTrust Beneficiary Right in Trust of Domestic Property

Japan Real Estate Investment Corporation (“JRE”) announced today that Japan Real Estate AssetManagement Co., Ltd., an asset management company to which JRE entrusts the management of its
assets, decided on February 28, 2017 the acquisition of domestic property and trust beneficiary rightin trust of domestic property as follows:≪List of properties to be acquired≫
Name of
Asset

Address

Type of Asset

Scheduled
Acquisition Price

Tamachi
Front
Building

Minato-ku,
Tokyo

Domestic property¥ 6,210 million

Shiodome
Building(additional
acquisition)

Scheduled
Acquisition Date

March 30, 2017
Minato-ku,
Tokyo

Trust beneficiary rightin trust of domestic property(Share of quasi-co-ownership: 5.0%)

1¥ 10,450 million≪Tamachi Front Building≫
1. Outline of the acquisition
1) Asset to be acquired:

2) Name of asset:

Domestic property
Land: Ownership
Building: Ownership
Tamachi Front Building3) Acquisition price:¥6,210 million

4) Scheduled acquisition date:

March 30, 20175) Seller:

Shiba Yon Development Specific Purpose Company (TMK)

6) Method of Settlement:7) Acquisition funds:

Lump sum payment at closing of acquisition
Loans (Note) and Own funds(Note) The detail of the loans will be informed as soon as it is decided.

2. Reasons for the acquisition
JRE will acquire the asset based on the basic policies and investment attitude for acquisition
under the Articles of Incorporation of JRE. In particular, the following points have been highly
evaluated in the determination of the acquisition.
(1) Superior location
The property to be acquired is a medium-sized, recently-built property located in Tamachi
area which attracts attention as a business base. The property offers superior traffic
convenience as it is close to Tamachi Station of JR Line and Mita Station of subway Mita
Line and subway Asakusa Line.
(2) Brand new office building with sophisticated features
Completed in July 2014, the property is a multi-tenant office building with excellent
visibility due to the curtain wall and exceptionally designed appearance. In addition, it
has a standard floor with an open-plan which can be divided into two (leasable floor space
is approximately 140 tsubo) and ceiling height is 2,800 mm (OA floor: 100 mm).
The
property mainly uses LED light for both the leased and common space to respond toenvironmental concerns. Therefore, competitiveness of the property is very high for thisarea.
3. Details of the asset to be acquired
The relevant information is as set out below. The information on “area,” “structure” and“completion date” is derived from the land registry and “usage” described below is among themain usages listed in the land registry.
(1) Details of the property
Location
Address shown inland registry
Address
Usage

Land
321-3 and 322-2, 4 Chome, Shiba, Minato-ku, Tokyo
Building 321-3 and 322-2, 4 Chome, Shiba, Minato-ku, Tokyo
13-2, 4 Chome, Shiba, Minato-ku, Tokyo
Offices, Shops

2

Area
Land
Building
Structure
Completion dateArchitect
Constructor
Building confirmationand inspection bodyType of ownership
Land
Building
Acquisition priceAppraisal value(Appraisal institution)(Appraisal date)
PML value
Collateral
Property managementcompany

747.31 m2
5,747.80 m2
Steel-framed, steel-framed reinforced concrete structure, flat roof
Above ground: 9 floors Below ground: 1 floor
July 2014
Mitsubishi Jisho Sekkei Inc.
Fujita Corporation
The Building Center of Japan
Ownership
Ownership¥ 6,210 million¥ 6,330 million(Japan Real Estate Institute)(as of February 1, 2017)3.3% (Based on an earthquake risk assessment report issued by
Tokio Marine & Nichido Risk Consulting Co., Ltd.)
Mortgage (the mortgage will be released before acquisition of theproperty)
Mitsubishi Estate Co., Ltd. (Note 1) (Note 2)(Note 1): The property management company to be appointed after the acquisition(Note 2): Outline of the property management company

Corporate name
Address of the registeredhead office
Representative
Paid-in capital
Major shareholders(Ratio of shareholders)

Mitsubishi Estate Co., Ltd.
6-1, 1 Chome, Otemachi, Chiyoda-ku, Tokyo

Hirotaka Sugiyama, President and CEO¥ 141,659 million (As of August 31, 2016)
The Master Trust Bank of Japan, Ltd. (Trust Account) (6.10%)
State Street Bank and Trust Company (3.89%)(as of September 30, 2016)
Japan Trustee Services Bank, Ltd. (Trust Account) (3.75%)
Principal business
Real estate business
Relationship with JRE
Mitsubishi Estate Co., Ltd. (“Mitsubishi Estate”) is a parent
or the asset management company and a shareholder that holds a 90% stake of the asset
company
management company to which JRE entrusts the management of
its assets. In addition, Mitsubishi Estate holds 17,120 units of
JRE’s investment units as of January 31, 2017 (1.31% of total
outstanding investment units). Furthermore, Mitsubishi Estate falls
within the definition of related party of the asset managementcompany under the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations, and also falls
within the definition of related party under the internal rules of theasset management company.

3(2) Tenant details
Total number of tenants
Total leasable space
Total leased space
Trend in occupancy rates

83,792 m2
3,792 m2
(Newly built in July 2014) *Listed in the land registry
March 31, 2015
69.6%
March 31, 2016
100.0%
Scheduled acquisition date
100.0%
Total rent revenue¥ 328 million per year
(Estimated under ordinary state occupancy)
Security Deposit¥ 288 million in total(Estimated under ordinary state occupancy)
NOI (Net Operating Income) ¥ 242 million per year
(Estimated under ordinary state occupancy)
Depreciation¥ 63 million per year
(Estimated under ordinary state occupancy)-JRE, upon acquisition of the property, will lease the space bypass-through method to Mitsubishi Estate Co., Ltd. who will
sublease the space to tenants.
-Total number of tenants, total leasable space, total leased
space and occupancy rate on the scheduled acquisition dateare projections as of the scheduled acquisition date.
-NOI is an estimated amount under ordinary state occupancy
given the fixed property taxes and city planning taxes, in(Note)
addition to the terms and conditions of lease agreements asof the scheduled acquisition date, etc.
-Estimated occupancy rate: 97%-Total rent revenue, security deposit and depreciation
represents the estimated amount under ordinary state
occupancy.
-The above figures (except total rent revenue, security deposit,
NOI and depreciation) are based on the data provided by theseller.

(3) Specifications for leasable floor space
Ceiling heightStandard floor area
Office automation floor
Electric capacity
Air conditioning system
Floor load
Others2,800 mm (after installing 100 mm of OA Floor)
465 m2
100 mm50 VA/ m2
Individual air conditioning by zones (max. 12 zones per floor)
500 kg/ m2
Around-the-clock entry and exit

4(4) Outline of the engineering report
i. Outline of repair items
Date of report
Preparer of report
Repairing expenses/Capital expenditure forthe next 15 years (Annual average)

Repairing expenses
Capital expenditure
Total

February 3, 2017
Shimizu Corporation¥ 3 million¥ 3 million¥ 6 million

ii. Description concerning utilization status of asbestos(Description on the possible use of asbestos)Sprayed materials with asbestos
None
4. Outline of seller
Corporate name
Address of the registered head
officeRepresentative
Establishment date
Paid-in capital
Major shareholder(Ratio of shareholders)
Principal Business

Shiba Yon Development Specific Purpose Company(TMK)
7-1, 2 Chome, Nihonbashi, Chuo-ku, Tokyo

Masami Mikami, Director
January 2008
¥ 3,700 million as of February 13, 2017
Undisclosed due to non-approval of disclosure by theseller(1) Undertaking, managing, and disposing of specified
assets in accordance with an asset securitization planunder the Act on Securitization of Assets(2) Any operations that occur in relation to thesecuritization of such specified assets
Net Assets and Total Assets in
Undisclosed due to non-approval of disclosure by thethe preceding fiscal period
sellerRelationship with JRE or the asset management company
Mitsubishi Estate Co., Ltd., a parent company that holds a
90% stake of the asset management company to which
Capital relationship
JRE entrusts the management of its assets, has a preferred
equity investment in Shiba Yon Development SpecificPurpose Company (TMK).
Personal relationship
None in particularBusiness relationship
None in particular
Shiba Yon Development Specific Purpose Company falls
within the definition of related party of the asset
management company under the Ordinance on
Terminology, Forms, and Preparation Methods ofConsolidated Financial Statements. Furthermore, Shiba
Applicability to
Yon Development Specific Purpose Company falls within
related parties
the definition of related party of the asset managementcompany under the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations, and also
falls within the definition of related party under theinternal rules of the asset management company.
55. Information on property owners, etc.
Property name
(Address)
Owner of the property
Corporate name
Relationship to party withspecial interest
Acquisition backgroundand reasons, etc.
Acquisition price
Acquisition date

Tamachi Front Building(13-2, 4 Chome, Shiba, Minato-ku, Tokyo)
Previous Owner
Second Previous Owner
Shiba Yon Development
None
Specific Purpose Company (TMK)
Reference to above 4. Outline ofseller
Newly built in July 2014--

6. Transactions with related parties
The acquisition of the property is deemed as transaction with related parties. When executing
such transaction, the asset management company has obtained the review and approval from thecompliance committee, and undergone approval procedures at an asset management meeting,pursuant to the Rules for Related Party Transactions.
7. Outline of the brokerage
Not applicable
8. Acquisition schedule
February 28, 2017
March 3, 2017
March 30, 2017

Determination of the acquisition of the property
Execution of the agreement for the acquisition (scheduled)
Lump sum payment at closing of the acquisition (scheduled)69. Outline of appraisal report
Name of asset
Appraisal value
Appraisal institution
Date of appraisal

Tamachi Front Building¥ 6,330,000 thousand
Japan Real Estate InstituteFebruary 1, 2017
AmountItem(thousand yen)

General Outline

Estimated by combining the capitalization values
under the direct capitalization method and DCF
6,330,000 method, as it was determined that both methods
offer similar normative validity.

Capitalization Value
Direct Capitalization Value(1)Operating Revenue [①－②]6,470,000
330,340
Estimated by assessing price level of rental income

347,937 that could be earned on a stable basis over the midto long term.

① Annual Rent Revenue② Amount of Loss due to Vacancy(2)Operating Expenses

Estimated by assessing the level of occupancy rates
that are expected on a stable basis over the mid- to
17,597 long term based on occupancy condition, etc. ofcomparable properties.

90,668Referenced actual costs in past years andcomparable properties for the estimation of
39,729 building maintenance costs, and referenced contract
terms for the estimation of the property(Note) management fee. Comparable properties andindividual characteristics were also analyzed for theestimation.
Estimated based on the assumed turnover period of
2,613 tenants.
Estimated based on the actual costs in past years
14,400 and analyzing factors such as occupancy rates.
Estimated by analyzing annual average of repairing
3,507 expenses listed in the engineering reports.
Estimated based on property and other taxes related
29,723 materials.
Estimated by analyzing current insurance premiums
492 and those for comparable cases.

Maintenance Cost for Building
Property Management Fee
Brokerage Fee etc.
Utilities Expenses
Repairing Expenses
Property and Other Taxes
Casualty Insurance
Other Expenses(3)Net Operating Income [(1)－(2)](4)Profit from Managing Security Deposit

204 Applied neighborhood association membership fee
239,672
3,092 Estimated by assuming an interest rate of 1%
Estimated based on annual average of spend listed(5)Capital Expenditure

3,217 in the engineering reports.
239,547(6)Net Cash Flow [(3)+(4)－(5)]Determined by applying future transaction yields,
etc. to the standard cap rate, while adding and3.7% deducting individual characteristics to the standard
cap rate.

(7)Cap Rate
Discounted Cash Flow Value

6,180,000
Estimated by referencing the investment yields ofcomparable properties and analyzing the individual
3.5% characteristics of the property from acomprehensive perspective.

Discount Rate

7

Determined by referencing the investment yields ofcomparable properties and analyzing future trends
3.9% with regard to investment yields from acomprehensive perspective.

Terminal Cap Rate
Integrated Value
Ratio of Land
Ratio of Building

6,310,000
77.0%
23.0%

* Values below a thousand yen are cut off.

Any special considerations made in thereconciliation of estimated value anddetermination of the final appraisal value

None in particular(Note) The property management company to be appointed of the subject property did not agree to disclose theproperty management fee. If the fee for the subject property were to be disclosed, it may impact on otherdeals related to the property management company to be appointed, which could affect JRE to delegate
effective property management service based on JRE’s policy of property maintenance and operation. This
could in turn undermine the interest of JRE’s unitholders.
and property management fees are shown in total amount.

8

Accordingly, maintenance costs for the building≪Shiodome Building (Additional acquisition)≫
1. Outline of the acquisition
1) Asset to be acquired:
2) Name of asset:

Trust beneficiary right in trust of domestic property(5% of quasi-co-ownership) (Note 1)
Shiodome Building3) Trustee:

Mitsubishi UFJ Trust and Banking Corp.

4) Term of trust agreement:

From March 22, 2004 to March 31, 2022

5) Acquisition price:¥10,450 million

6) Scheduled acquisition date:

March 30, 20177) Seller:

Mitsui & Co. Real Estate Ltd.

8) Method of Settlement:
9) Acquisition funds:

Lump sum payment at closing of acquisition(Note 1)Loans (Note 2) and Own funds

JRE acquired quasi-co-ownership of a trust beneficially right in trust of Shiodome Building on
December 19, 2008, January 15, 2010 and on May 1, 2015, and owns 45.0% share of thequasi-co-ownership as of February 28, 2017. Following the above acquisition of additional
shares, JRE will hold 50.0% share of the quasi-co-ownership.

(Note 2)The detail of the loans will be informed as soon as it is decided.

2. Reasons for the acquisition
JRE will acquire the asset based on the basic policies and investment attitude for acquisition
under the Articles of Incorporation of JRE. In particular, the following points have been highly
evaluated in the determination of the acquisition.
(1) High competitivenessThis property is located in front of Hamamatsucho Station of JR Line and is the South
gateway of Shiodome area. It is also within three minutes’ walk from Hamamatsucho
Station of JR Line and Daimon Station of subway Asakusa Line and subway Oedo Line.
In addition, it is accessible to Tokyo Station and Shinagawa Station, which is a hub station
for “Shinkansen”, and also to Haneda Airport (Tokyo International Airport), providing
great traffic convenience.
As for other features, it is comparatively new building completed in December 2007 andhas over 1,000 tsubo area and 2,900 mm ceiling height (with 100 mm of OA floor) of
open-plan spacious standard floor for leasing.
(2) Increase in shares of co-ownership of the building
Since JRE’s shares of quasi-co-ownership of trust beneficially right in trust of this property
will go up to 50.0% from the current shares of 45.0% after the above acquisition, further
improvement in operational efficiency and the value of the asset can be expected.
3. Details of the asset to be acquired
The relevant information is as set out below. The information on “area,” “structure” and“completion date” is derived from the land registry and “usage” described below is among themain usages listed in the land registry.

9(1) Details of the property in trust
Location
Address shown inland registry
Address
Usage
Area
Land
Building
Structure
Completion dateArchitect
Constructor
Building confirmationand inspection bodyType of ownership
Land
Building
Acquisition priceAppraisal value(Appraisal institution)(Appraisal date)
PML value
Collateral
Property managementcompany

71-19, 1 Chome, Kaigan, Minato-ku, Tokyoand other 14 lots
Building 71-19, 1 Chome, Kaigan, Minato-ku, Tokyo and other
2-20, 1 Chome, Kaigan, Minato-ku, Tokyo
Offices, Shops
Land

12,054.22 m2 (Total land area of the building site) (Note 1)
115,930.83 m2 (Total floor space of the entire building)
Steel-framed, Steel-framed reinforced concrete structure, flat roof
Above ground: 24 floors Below ground: 2 floors
December 2007
Mitsubishi Jisho Sekkei Inc., Nikken Sekkei Ltd.
Taisei Corporation
The Building Center of Japan
Ownership
Ownership¥ 10,450 million¥ 10,800 million(Daiwa Real Estate Appraisal Co., Ltd.)(as of February 1, 2017)1.4% (Based on an earthquake risk assessment report issued by
Tokio Marine & Nichido Risk Consulting Co., Ltd.)
None
Mitsubishi Jisho Property Management Co., Ltd. (Note 2)(Note1) A part of the land has a compartmentalized surface right created to protect railroad structures and tobuild a subway facilities.
(Note2) Outline of the property management company

Corporate name
Address of theregistered head office
Representative
Paid-in capital
Major shareholder
Principal business

Mitsubishi Jisho Property Management Co., Ltd.
2-3, 2 Chome, Marunouchi, Chiyoda-ku, Tokyo
Futoshi Chiba, President & CEO¥ 390 million
Mitsubishi Estate Co., Ltd.
Comprehensive administration and management services for officebuildings, commercial complexes, and so forth10

Relationship with JREor the asset
managementcompany

Mitsubishi Estate Co., Ltd., a parent company that holds a 90 %stake of the asset management company, to which JRE entrusts the
management of its assets, holds a 100 % stake in Mitsubishi Jisho
Property Management Co., Ltd. (“Mitsubishi Jisho Property
Management”).
Mitsubishi Jisho Property Management falls within the definition ofrelated party of the asset management company under the Order for
Enforcement of the Act on Investment Trusts and Investment
Corporations, and also falls within the definition of related party
under the internal rules of the asset management company.

(2) Tenant details
Total number of tenants
Total leasable space
Total leased space
Trend in occupancy rates

Total rent revenue
Security and deposit
NOI (Net Operating Income)Depreciation(Note)

38
4,019 m2
4,019 m2
March 31, 2012
98.4%
March 31, 2013
95.2%
March 31, 2014
98.2%
March 31, 2015
98.2%
March 31, 2016
93.2%
Scheduled acquisition date
100.0%¥ 475 million per year
(Estimated under ordinary state occupancy)¥ 371 million in total(Estimated under ordinary state occupancy)¥ 378 million per year
(Estimated under ordinary state occupancy)¥ 89 million per year
(Estimated under ordinary state occupancy)-Total number of tenants, total leasable space, total leased spaceand occupancy rate on the scheduled acquisition date areprojections as of the scheduled acquisition date.
-NOI is an estimated amount under ordinary state occupancy
given the fixed property taxes and city planning taxes, inaddition to the terms and conditions of lease agreements as ofthe scheduled acquisition date, etc.
-Estimated occupancy rate: 95%-Total rent revenue, security deposit and depreciation represents
the estimated amount under ordinary state occupancy.
-The above figures (except total rent revenue, security deposit,
NOI and depreciation) are based on the data provided by theseller.
- The above figures are calculated only for the
additionally-acquired share of quasi-co-ownership, but the
total number of tenants represents the total number of all thebuilding’s tenants.

11

(3)

Specifications for leasable floor space

Ceiling heightStandard floor area
Office automation floor
Electric capacity
Air conditioning system
Floor load
Others2,900 mm (Some floors: 3,200 mm)
3,501 m2
100 mm (Some parts: 400 mm)
60 VA/ m2
Individual air conditioning by zones(max. 102-104 zones per floor)
500 kg/ m2 (Heavy duty zone: 1,000kg/ m2)
Around-the-clock entry and exit

(4) Outline of the engineering report
i. Outline of repair items
Date of report
Preparer of report
Repairing expenses
Repairing expenses/Capital expenditure forthe next 15 years (Annual average for the Capital expenditureassets to be acquired by JRE)
Total

February 1, 2017
Shimizu Corporation¥ 4 million¥ 15 million¥ 19 million

ii. Description concerning utilization status of asbestos(Description on the possible use of asbestos)Sprayed materials with asbestos
None
4. Outline of seller
Corporate name
Address of the registeredhead office
Representative
Establishment date
Paid-in capital
Major shareholders(Ratio of shareholders)
Principal Business

Mitsui & Co. Real Estate Ltd.
13-1, 1 Chome, Nishi-Shimbashi, Minato-ku, Tokyo
Shunsuke Furuya, President & CEO
November 1, 2000
¥ 3 billion
Mitsui & Co., Ltd. (100%)
Real estate sales, exchange, leasing and management.
Brokerage of real estate leasing and sales transactions.
Plan, propose and consult effective utilization anddevelopment of real estate.

Net Assets and Total Assets
Net Assets: ¥ 31,327 million (Fiscal year ended March 2016)
in the preceding fiscal
Total Assets: ¥ 79,837 million (Fiscal year ended March 2016)
periodRelationship with JRE or the asset management company
Mitsui & Co., Ltd., a shareholder that holds a 10% stake of theasset management company to which JRE entrusts the
Capital relationshipmanagement of its assets, has a 100% investment in Mitsui &Co. Real Estate Ltd.
1 officer of the asset management company is on temporary
Personal relationshipassignment from Mitsui & Co. Real Estate Ltd. as of February
28, 2017.
Business relationship
None in particular
12Applicability torelated parties

Mitsui & Co. Real Estate Ltd. falls within the definition ofrelated party of the asset management company under theOrdinance on Terminology, Forms, and Preparation Methodsof Consolidated Financial Statements. Furthermore, Mitsui &Co. Real Estate Ltd. does not fall within the definition ofrelated party of the asset management company under theOrder for Enforcement of the Act on Investment Trusts andInvestment Corporations, however, falls within the definitionof related party under the internal rules of the asset
management company.

5. Information on property owners, etc.
Property name
(Address)
Owner of theproperty
Corporate Name
Relationship toparty withspecial interest

Acquisition
background andreason etc.
Acquisition price

Acquisition date

Shiodome Building(2-20, 1 Chome, Kaigan, Minato-ku, Tokyo
Third Previous
Previous owner
Second Previous Owner
Owner
Mitsui & Co. RealMARE Y.K.
None
Estate Ltd.
Mitsubishi Estate Co., Ltd.
Reference to theabove 4.Outline of (a parent company that
holds a 90% stake of theseller.
asset managementcompany to which JRE
entrusts the management of
its assets) and Mitsui &Co., Ltd. (a shareholderthat holds a 10% stake ofthe asset managementcompany) had ananonymous association
investment.
Acquire for
Newly built in December
management of2007
asset investment
Not to state as theprevious owner isholding over one
year
March 2012-

6. Transactions with related parties
The acquisition of the property is not deemed as transaction with related parties, however, falls
within the definition of transaction with related parties under the internal rules of the asset
management company. When executing such transaction, the asset management company has
obtained the review and approval from the compliance committee, and undergone approval
procedures at an asset management meeting, pursuant to the Rules for Related Party Transactions.
13

7. Outline of the brokerage
Not applicable
8. Acquisition schedule
February 28, 2017
March 1, 2017
March 30, 2017

Determination of the acquisition of the property
Execution of the agreement for the acquisition (scheduled)
Lump sum payment at closing of the acquisition (scheduled)

9. Outline of appraisal report
Name of asset
Appraisal value
Appraisal institution
Date of appraisal

Shiodome Building¥ 10,800,000 thousand
Daiwa Real Estate Appraisal Co., Ltd.
February 1, 2017
Amount(thousand yen)

Item

General Outline
Estimated with DCF method which is referring future

Capitalization Value

10,800,000 net cash flow and also with the validation ofcapitalization value by direct method.

Direct Capitalization Value(1)Operating Revenue [①－②]

11,100,000
492,196
Estimated based on a level and trend of comparable

512,994 cases referring to medium to long term

① Annual Rent Revenue② Amount of Loss due to Vacancy(2)Operating Expenses

competitiveness etc.
Calculated with the estimation of medium to long term
20,798 stable vacancy rate based on a level of comparable
cases and considering competitiveness etc.

102,916
Maintenance cost for building is evaluated referring to

Maintenance Cost for Building

32,454 the budget, actual costs in past years and comparable

Property Management Fee(Note) properties’ cases. Property management fee is

Repairing Expenses

evaluated referring comparable properties’ cases.
Applied one month rent fee referring comparable
3,368 properties’ cases.
Calculated based on the actual costs in the past years
28,000 considering occupancy rate.
Estimated based on annual average of repairing
4,815 expenses listed in the engineering reports.

Property and Other Taxes

31,561 Estimated based on the actual figures for fiscal 2016.

Brokerage Fee etc.
Utilities Expenses

Estimated based on actual insurance premiums in the

Casualty Insurance

565 past years.

Calculated based on the actual promotion expenses

Other Expenses

2,150 etc.

(3)Net Operating Income [(1)－(2)](4)Profit from Managing Security Deposit

389,280
3,981 Assessed at a rate of return on investment of 1%(5)Capital Expenditure

15,021 the engineering reports.

(6)Net Cash Flow [(3)+(4)－(5)]378,240

Estimated based on annual average of spend listed in

Estimated based on the standard yield out of analyzed
transaction yield of comparable properties’ cases for A
3.4% class building, taking account of market trend ofleasing and acquisition for the area.

(7)Cap Rate

14

Discounted Cash Flow Value

10,650,000
Estimated by referencing the transactions of

Discount Rate

3.2% comparable properties and comparing with yields ofother financial instruments, etc.
Estimated with consideration of the marketability etc.
3.6% upon termination of analyzing the cap rate.

Terminal Cap Rate
Integrated Value
Ratio of Land
Ratio of Building

8,500,000
82.8％
17.2％

* Values below a thousand yen are cut off.

Any special considerations made in thereconciliation of estimated value anddetermination of the final appraisal value(Note)

None in particular

The property management company of the subject property did not agree to disclose the property
management fee.

If the fee for the subject property were to be disclosed, it may impact on other deals

related to the property management company, which could affect JRE to delegate effective property
management service based on JRE’s policy of property maintenance and operation. This could in turnundermine the interest of JRE’s unitholders.

Accordingly, maintenance costs for the building andproperty management fees are shown in total amount.

≪Future outlook≫
As the impact of the acquisition on JRE's management performance for March 2017 period (fromOctober 1, 2016 to March 31, 2017) and September 2017 period (from April 1, 2017 to September
30, 2017) is expected to be minor, no revision of the forecast for performance will be made.

Reference materials (attachments)• Information map and exterior appearance of Tamachi Front Building• Information map and exterior appearance of Shiodome Building• List of all the assets of JRE after the acquisition of these assets

This notice is the English translation of the announcement in Japanese dated February 28, 2017.
However, no assurance or warranties are given for the completeness or accuracy of this English
translation.

15

(Reference) Information map and exterior appearance of Tamachi Front Building

16

(Reference) Information map and exterior appearance of Shiodome Building17

(Reference) List of all the assets of JRE after the acquisition of these assets
Area

Percentage
of portfolio

Location

Type of asset

Acquisition date

Chiyoda-ku, Tokyo

Real property

February 24, 2006

８１，５５５，５００

８．６％
１．０％

MD Kanda Building

Chiyoda-ku, Tokyo

Real property

May 31, 2002

９，５２０，０００

Kandabashi Park Building

Chiyoda-ku, Tokyo

Real property

August 15, 2002

４，８１０，０００

０．５％

Otemachi Financial City
North Tower

Chiyoda-ku, Tokyo

Real property

March 31, 2014

１５，４６２，９００

１．６％

Nibancho Garden

Chiyoda-ku, Tokyo

Real property

April 1, 2005

１４，７００，０００

１．６％

Mitsubishi UFJ Trust and Banking
Building

Chiyoda-ku, Tokyo

Real property

March 28, 2007

４４，７００，０００

４．７％

Burex Kojimachi Building

Chiyoda-ku, Tokyo

Real property

July 29, 2005

７，０００，０００

０．７％

Chiyoda-ku, Tokyo

Real property

January 31, 2005
April 3, 2006
Total

１０，２００，０００

Sanno Grand Building

１０，７００，０００

２．２％

Yurakucho Denki Building

Chiyoda-ku, Tokyo

Real property

August 1, 2003

７，２００，０００

０．８％

Chuo-ku, Tokyo

Trust beneficiary right intrust of real property

September 25, 2001

３，１７３，０００

０．３％

Kyodo Building(Kayabacho 2Chome)

Chuo-ku, Tokyo

Trust beneficiary right intrust of real property

March 1, 2011

４，４１０，０００

０．５％

Burex Kyobashi Building

Chuo-ku, Tokyo

Real property

July 22, 2002

５，２５０，０００

０．６％

Ginza 1Chome East Building

Chuo-ku, Tokyo

Trust beneficiary right intrust of real property

March 2, 2015

６，４５９，０００

０．７％

Ginza Sanwa Building

Chuo-ku, Tokyo

Real property

March 10, 2005

１６，８３０，０００

１．８％

Chuo-ku, Tokyo

Real property

March 15, 2005
May 24, 2010
Total

５，３５３，５００

Ryoshin Ginza East Mirror Building

２，６４５，９２２

０．８％

７，９９９，４２２

Harumi Front

Chuo-ku, Tokyo

Real property

January 7, 2013

３１，３００，０００

３．３％

Harumi Center Building

Chuo-ku, Tokyo

Real property

December 18, 2007

２６，８００，０００

２．８％

Akasaka Park Building

Minato-ku, Tokyo

Real property

November 15, 2011

６０，８００，０００

６．４％

Aoyama Crystal Building

Minato-ku, Tokyo

Real property

March 14, 2003

７，６８０，０００

０．８％

Clover Shiba-koen

Minato-ku, Tokyo

Trust beneficiary right intrust of real property

January 20, 2015

４，５００，０００

０．５％

２１，２５０，０００

Trust beneficiary right intrust of real property

December 19, 2008
January 15, 2010
May 1, 2015
March 30, 2017
Total

Minato-ku, Tokyo

５４，６００，０００
１０，１００，０００

１０．２％

１０，４５０，０００
９６，４００，０００

Shiba 2Chome Daimon Building

Minato-ku, Tokyo

Trust beneficiary right intrust of real property

September 10, 2001

４，８５９，０００

０．５％

Cosmo Kanasugibashi Building

Minato-ku, Tokyo

Trust beneficiary right intrust of real property

September 25, 2001

２，８０８，０００

０．３％

Tamachi Front Building

Minato-ku, Tokyo

Real property

March 30, 2017

６，２１０，０００

０．７％

Shinjuku-ku, Tokyo

Trust beneficiary right intrust of real property

October 1, 2014
January 25, 2017
Total

２３，１００，０００

Shinjuku Eastside Square

６，６６０，０００

Shinwa Building

Shinjuku-ku, Tokyo

Real property

September 1, 2004

７，８３０，０００

Shinjuku-ku, Tokyo

Real property

September 13, 2005
March 24, 2010
Total

２２，４２６，８３１

３．２％
０．８％

９，３５０，０００
３．４％

３１，７７６，８３１

TIXTOWER UENO

Taito-ku, Tokyo

Real property

June 15, 2012

２２，０００，０００

Higashi-Gotanda 1Chome Building

Shinagawa-ku, Tokyo

Real property

November 1, 2004

５，５００，０００

０．６％

Osaki Front Tower

Shinagawa-ku, Tokyo

Real property

February 1, 2011

１２，３００，０００

１．３％

Omori-Eki Higashiguchi Building

Ota-ku, Tokyo

Trust beneficiary right intrust of real property

September 10, 2001

５，１２３，０００

０．５％March 24, 2004

６，６７０，０００

August 23, 2013

－１，１７０，０００

Total

５，５００，０００

Shibuya-ku, Tokyo

Real property

２．３％

０．６％

Yoyogi 1Chome Building

Shibuya-ku, Tokyo

Real property

April 1, 2004

８，７００，０００

da Vinci Harajuku

Shibuya-ku, Tokyo

Real property

November 22, 2002

４，８８５，０００

０．５％

Jingumae Media Square Building

Shibuya-ku, Tokyo

Real property

October 9, 2003

１２，２００，０００

１．３％

Shibuya Cross Tower

Shibuya-ku, Tokyo

Real property

November 30, 2001

３４，６００，０００

３．７％

November 14, 2003
April 1, 2004
February 18, 2014
Total
February 28, 2005
December 19, 2012
March 27, 2015
Total

３，７４０，０００
３６０，０００

Ebisu Neonato

Shibuya-ku, Tokyo

Real property

１０，５１２，０００

０．９％

１．５％

１４，６１２，０００
８，５００，０００
５２０，０００

Harmony Tower

Nakano-ku Tokyo

Real property

Otsuka Higashi-Ikebukuro Building

Toshima-ku, Tokyo

Trust beneficiary right intrust of real property

September 25, 2001

３，５４１，０００

０．４％

Ikebukuro 2Chome Building

Toshima-ku, Tokyo

Trust beneficiary right intrust of real property

September 25, 2001

１，７２８，０００

０．２％

Ikebukuro YS Building

Toshima-ku, Tokyo

Real property

August 2, 2004

４，５００，０００

０．５％

Hachioji City, Tokyo

Real property

March 31, 2005
March 19, 2008
Total
September 25, 2001
October 11, 2001
Total

３，３００，０００

Hachioji First Square

Saitama Urawa BuildingTokyo
metropolitan
area(excluding 23 wards)

Saitama City,
Saitama Prefecture

Real property

２，１００，０００
１１，１２０，０００

２，３７９，１１２

１．２％

０．６％

５，６７９，１１２
１，２３２，０００
１，３４２，０００

０．３％

２，５７４，０００

MM Park Building

Yokohama City,
Kanagawa Prefecture

Real property

March 24, 2008

３７，４００，０００

４．０％

Queen's Tower A

Yokohama City,
Kanagawa Prefecture

Trust beneficiary right intrust of real property

January 31, 2014

１７，２００，０００

１．８％

Kawasaki Isago Building

Kawasaki City,
Kanagawa Prefecture

Trust beneficiary right intrust of real property

September 25, 2001

３，３７５，０００

０．４％

Musashi Kosugi STM Building

Kawasaki City,
Kanagawa Prefecture

Real property

March 25, 2008

４，０００，０００

０．４％

７７７，２３０，７６６

８２．３％

Total: Tokyo metropolitan area

18

７４．８％

２９，７６０，０００

Tokyo Opera City Building

Nippon Brunswick Building(Land with leasehold interest)

Percentage
by area

２０，９００，０００

Kodenmacho Shin-Nihonbashi Building

Shiodome BuildingTokyo
metropolitan
area(23 wards)

Acquisition price (Note 1)(thousand yen)

Name
Kitanomaru Square

７．４％

８２．３％

Acquisition price (Note 1)(thousand yen)

Percentage
of portfolio

Area

Name

Location

Type of asset

Acquisition date

Hokkaido

8 • 3 Square Kita Building

Sapporo City, Hokkaido

Real property

June 1, 2007

７，１００，０００

０．８％

Jozenji Park Building

Sendai City,
Miyagi Prefecture

Real property

January 31, 2005

１，０００，０００

０．１％

Higashi Nibancho Square

Sendai City,
Miyagi Prefecture

Real property

January 7, 2013

９，９５０，０００

１．１％

２，９２４，０００

TohokuregionSendai Honcho Honma
Building

Sendai City,
Miyagi Prefecture

Trust beneficiary right intrust of real property

September 25, 2001
June 28, 2006
total

AER

Sendai City,
Miyagi Prefecture

Real property

September 1, 2015

１８，６４０，０００

Real property

February 28, 2002
March 3, 2003
total

２，８８０，０００

Kanazawa Park Building

Kanazawa City, Ishikawa
Prefecture

Kanazawa Kamitsutsumicho Building

Kanazawa City, Ishikawa
Prefecture

Real property

October 3, 2016

２，７８０，０００

Nagoya City,
Aichi Prefecture

Real property

October 2, 2006
November 1, 2006
June 9, 2014
April 1, 2016
total

３，８５０，０００

Nishiki Park Building

Hokuriku
regionChubu
regionKinki
regionKyushuregion

０．８％

３．５％
０．３％

３，１７４，０００

１，７００，０００

２．０％

０．５％

４，５８０，０００

０．８％
０．３％

１，３００，０００
６５０，０００

０．６％

１７５，０００５，９７５，０００

Nagoya Hirokoji Place

Nagoya City,
Aichi Prefecture

Trust beneficiary right intrust of real property

July 31, 2013８，５６７，０００

０．９％

Nagoya Hirokoji Building

Nagoya City,
Aichi Prefecture

Real property

September 10, 2001

１４，５３３，０００

１．５％

Nagoya Misono Building

Nagoya City,
Aichi Prefecture

Real property

August 8, 2003

１，８６５，０００

０．２％

Shijo Karasuma Center Building

Kyoto City,
Kyoto Prefecture

Real property

September 3, 2013

４，４００，０００

０．５％

Umeda Square Building

Osaka City,
Osaka Prefecture

Trust beneficiary right intrust of real property

April 1, 2015

１５，５２３，５２０

１．６％

Shin-Fujita Building

Osaka City,
Osaka Prefecture

Trust beneficiary right intrust of real property

２．５％

Sakaisujihonmachi Building

Osaka City,
Osaka Prefecture

Real property

Osaka City,
Osaka Prefecture

Trust beneficiary right intrust of real property

Amagasaki Front Building

Amagasaki City,
Hyogo Prefecture

Midosuji Daiwa Building

Chugokuregion２５０，０００

Percentage
by area

September 1, 2008

２４，０００，０００

September 25, 2001
December 26, 2003
total
September 25, 2001
February 28, 2002
total

２，２６４，０００

１４，３１４，０００

Trust beneficiary right intrust of real property

March 25, 2015

９，３００，０００

１．０％
０．５％

１，９００，０００

０．４％

３．３％

７．６％

４，１６４，０００６，９３４，０００
７，３８０，０００

１．５％

Lit City Building

Okayama City, Okayama
Prefecture

Real property

February 1, 2006

４，６５０，０００

NHK Hiroshima Broadcasting Center
Building

Hiroshima City,
Hiroshima Prefecture

１，３２０，０００

Real property

March 25, 2004
March 3, 2008
total

Tosei Tenjin Building

Fukuoka City,
Fukuoka Prefecture

Real property

September 25, 2001

１，５５０，０００

０．２％

Tenjin Crystal Building

Fukuoka City,
Fukuoka Prefecture

Real property

June 1, 2005

５，０００，０００

０．５％

Hinode Tenjin Building

Fukuoka City,
Fukuoka Prefecture

Trust beneficiary right intrust of real property

September 10, 2001

３，６５７，０００

０．４％

１，４５０，０００

０．８％
０．３％

２，７７０，０００

１．１％

Total: Other major cities

１６７，４９２，５２０

１７．７％

１７．７％

Total: Portfolio

９４４，７２３，２８６

１００．０％

１００．０％(Note1) Acquisition prices are expressed by cutting off the numbers below a thousand.
(Note2) The sales price of Nippon Brunswick Building (building) dated August 23, 2013 is indicated minus ￥1,170 million, which is thebuilding acquisition price on the date of the acquisition as of March 24, 2004.
(Note3) The acquisition price of Jingumae Media Square Building is the price of the property on the date of acquisition (October 9, 2003),
including the sales cost (￥614 million) of the part of the property that was sold on October 30, 2009.

19