<For translation purposes only>
December 25, 2007
For Immediate Release
REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Mineo Yamakawa, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Mineo Yamakawa, President & Representative Director
Contact:
Hideo Natsuaki
General Manager, Investor Relations Dept.
Email: ir@hankyu-rt.jp

Notice Concerning the Acquisition of Asset (Finalization of Sale Price)
Hankyu REIT, Inc. (hereafter “Hankyu REIT”) announces that the sale price for the acquisition of the asset mentioned
below has been decided based on stipulations in the recent contract for the transfer of beneficiary interests (publiclyannounced in our press release dated January 24, 2007, “Notice Concerning the Acquisition of Asset (Execution ofAgreement)” (only in the Japanese language)). Hankyu REIT has decided to execute an MOU with the seller to carry outthe transfer. In addition, along with some previously undecided items being finalized, some items have changed, andthose details are included in this release. Also, the company plans to announce details of other undecided items when
they are finalized.
Furthermore, the details noted below in the section “Before Changes” are from the press release dated January 24, 2007,“Notice Concerning the Acquisition of Asset (Contract Execution)” (only in the Japanese language), and underlined items
indicate the points that have changed.

1.

Overview of Acquisition(Before Changes)
(i)
(ii)

Acquired asset:

Real estate trust beneficiary interests

Trustee:

Mitsubishi UFJ Trust and Banking Corporation

Property name:(Tentative) Shiodome Eastside Building (Note 1)(iii) Proposed acquisition price:

18,532,249,000 yen – 21,550,155,000 yen (Note 2)(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)(iv)

Proposed acquisition date:February 2008(v)

Seller:Raira Inc.

(vi)

Acquisition funds:

Not determined

Note 1: Construction work commenced for the building on this property in April 2006, but the building is not yetcompleted. Completion of the building is a requirement for the acquisition for the trust beneficiary rights,
which is planned after completion.
Note 2: In accordance with the set of rules prescribed in the transfer agreement, the acquisition price will be linked tothe profitability based on the results of the solicitation of new tenants. Also, in principle, it will be determined1

by the acquisition date and fall within the range expressed above.
(After Changes)
(i)
(ii)

Acquired asset:

Real estate trust beneficiary interests

Trustee:

Mitsubishi UFJ Trust and Banking Corporation

Property name:Shiodome Eastside Building(iii) Proposed acquisition price:

19,025,718,075 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)2.

(iv)

Proposed acquisition date:February 29, 2008(v)

Seller:Raira Inc.

(vi)

Acquisition funds:

Not determined

Details of Acquisition Financing(Before Changes)
Property name(Tentative) Shiodome Eastside Building

Specific asset type

Trust beneficiary interests (planned)

Proposed acquisition price

18,532,249,000 yen – 21,550,155,000 yen (Note 1)

Reference property
assessment value(Note 2)

20,110 million yen (As of January 1, 2007)
Determined the value of the property as the value of its income through the income
direct capitalization method and discounted cash flow method. The capitalization
rate for the capitalization method is 4.3%. The discount rate and terminal
capitalization rate used to calculate the present value using the DCF-method are
4.0% and 4.4% respectively.
(Appraisal organization：Rich Appraisal Institute K.K.)

Location

Lot no.

5-2-3, Tsukiji, Chuo-ku, Tokyo

Land

Building
coverage
Floor area ratio

80％
600％

Zone use

Building(Note 3)

Planned September 2007

Commercial zone

Month/Year
Built
Structure/
FloorsUse

Lot area

1,932.54 m²

Total floor

12,579.86 m²

Form ofownership

Right of ownershiparea
Form ofownership

Right of ownership

Design company

Kajima CorporationConstruction company

Kajima Corporation

Building recognition
organization

Tokyo Metropolitan Government

Steel-frame reinforced
concrete/8 stories
Offices

Note 1: In accordance with the set of rules prescribed in the transfer agreement, the acquisition price will be linked to the profitability
based on the results of the solicitation of new tenants. Also, in principle, it will be determined by the acquisition date and fallwithin the range expressed above。
Note 2: Because construction for the building is not yet completed, the reference property assessment value is calculated with theassumption that it is the price at the point the building is completed and operational. Furthermore, the plan is to obtain
another, fresh appraisal before acquisition.
Note 3: The building is not yet complete, nor is it registered, so these details are from the building’s confirmation certificate based on
regulations of the Building Standard Law’s Article 6, Paragraph 1.
Note 4: The preparer of building appraisal documents and property manager are both undecided at this point because the building is
not yet completed. Also, Probable Maximum Loss (PML) from earthquake risk analysis has also not yet been evaluated forthe same reasons. Both items are planned to be disclosed once they are determined or evaluated.

2(After Changes)
Property nameShiodome Eastside Building

Specific asset type

Trust beneficiary interests (planned)

Proposed acquisition price

19,025,718,075 yen

Appraised price

19,100 million yen (As of December 3, 2007)(Appraisal organization：Rich Appraisal Institute K.K.)

Location

Address

5-4-18, Tsukiji, Chuo-ku, TokyoLand

Building
coverage
Floor area ratio80％600％Zone use

Commercial zone

Lot area
Form ofownership

Month/Year
BuiltStructure/Floors
Use

August 2007

1,932.54 m²

Total floor

11,950.30 m²

Right of ownershiparea
Form ofownership

Right of ownership

Design company

Kajima Corporation

Construction company

Kajima Corporation

Building recognition
organization
Preparer of building
appraisal documents

3.

Building

Steel-frame reinforced
concrete/8 stories
OfficesTokyo Metropolitan Government
Takenaka Corporation (December 2007)

Property manager

Not determined

PML of earthquake risk
analysis

4.6% (Evaulator: Engineering & Risk Services Corporation, OYO RMSCorporation)

CollateralNone

Overview of Leasing(Before Changes)
At this time because the building is not completed, there are no decided tenants. Furthermore, rental area capacity isplanned to be 9,298.33m².
(After Changes)
Total number of tenants

5 (Note 1)

Annual rent

888 million yen (Note 2)

Rental area capacity

9,311.32 m² (Note 3)

Actual rented area

8,531.25 m² (Note 3)

Occupancy rate

91.6％ (Note 4)

Security Deposit

760 million yen (Note 5)

Note 1: Current number of tenants.
Note 2: The figure represents a calculation of monthly rental amounts and revenues from common area charges as
expressed on existing rental agreements multiplied by 12 months. Figures are rounded to the nearest million
yen unit.
Note 3: Rental area capacity is the current total rentable area, and “actual rented area” is the actual area of rental space3

occupied by tenants in existing rental agreements. Parking garage space, storage and machinery rooms are notincluded.
Note 4: The current ratio of actual rented apace to available space. Figure is rounded to the nearest tenth. Parking
garage space, storage and machinery rooms are not included.
Note 5: The figure is a result of calculating the total monetary value of security deposits held from existing agreements.
The figure is rounded to the nearest million yen unit. Parking garage space, storage and machinery rooms are
not included.

4.

Overview of Intermediaries(Before Changes)(ii) Payment fee 185,322,490 yen – 215,501,550 yen (excluding consumption tax)
(After Changes)(ii) Payment fee 190,257,180 yen (excluding consumption tax)
Furthermore, the agent in (i) will change from Hankyu Corporation to Hankyu Realty Co., Ltd. as announced in our press
release dated August 16, 2007, “Notice Concerning a Change in the Broker for the Property Acquisition.”

5.

Acquisition Process(Before Changes)
January 30, 2007

Proposed conclusion of beneficiary interest transfer agreement

September 2007

Proposed construction completion dateFebruary 2008

Proposed acquisition of the trust beneficiary interest(After Changes)
January 30, 2007

Conclusion of beneficiary interest transfer agreement

August 30, 2007

Construction completion date

December 28, 2007

Proposed conclusion of MOU concerning execution of transfer

February 29, 2008

Proposed acquisition of beneficiary Interest

For further details related to the acquisition of this property, please refer to the press release dated January 24, 2007,“Notice Concerning the Acquisition of Asset (Execution of Agreement)” (only in the Japanese language) and the press
release dated August 16, 2007, “Notice Concerning a Change in the Broker for the Property Acquisition.”
Furthermore, there is no material effect from the acquisition of this property on the company's operating conditions in the5th fiscal period (ending November 2007). Forecasts for operating conditions in the 6th fiscal period (ending May 2008)
will be publicly disclosed when financial statements and results for the 5th fiscal period are released.
•The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka
Securities Exchange, Ministry of Land, Infrastructure and Transport, and to the press club of the construction trade newspaperof the Ministry of Land, Infrastructure and Transport.

•Hankyu REIT website: http://www.hankyu-reit.jp/

4<Attached materials>
・Reference material 1

Overview of Appraisal Report

・Reference material 2

Table of Real Estate Portfolio After the Acquisition of the Property

・Reference material 3

External photograph, information guide5

Reference Material 1
Overview of Appraisal Report
PROPERTY NAMESHIODOME EASTSIDE BUILDINGAppraised Value

19,100,000,000 yen

Appraisal Organization

Rich Appraisal Institute Co., Ltd.

Date of Appraisal

December 3, 2007
Item

Earned Price

Value

Basis for Valuation

19,100,000,000 yen

Earned Price from Direct Capitalization Method(i) Gross Return (a + b - c)a Income from rental feesb Other incomec Loss from non-occupancy(ii) Total Costs (a + b + c + d + e + f)

19,200,000,000 yen
930,277,805 yen
982,281,900 yen
170,000 yen
52,174,095 yen

Assessment based on medium- and long-term stable level ofrental fee and usage fee averages
Assessment
contracts.

ofvending

machineincomebasedonAssessed non-occupancy rate of 5%.

108,356,028 yen

a Maintenance/administrative fees, etc.

44,891,852 yenb Utilities

13,519,968 yen

Assessment based on averages of similar real estate, etc.

c Repairs

4,433,550 yen

Assessment guided by averages of similar real estate, etc.

d Public charges and taxes

42,975,658 yen

Assessment of lot based on considering the premiums inexisting insurance contracts.
Self-assessment of building guided by similar real estatebuildings.

e Casualty insurance premiums

2,535,000 yen

Assessment based on casualty insurance quotations.

f Other expenses

0 yen

Assessment based on existing contracts.

None.

(iii) Net rental income（NOI = (i) - (ii))

821,921,777 yen(iv) Gain on investment of lump-sum money

13,438,318 yen

Assessment based on a medium- to long-term stablelump-sum money in view of the occupancy rate(v) Capital expenditures

10,344,950 yen

Assessment guided by averages of similar real estate.

(vi) Net cash flow (NCF = (iii) + (iv) - (v))

825,015,145 yen(vii) Capitalization rate
Price based on discounted-cash-flow method

4.3％

Based on portfolio property location, type of building, andexisting contractual conditions, among other factors

19,000,000,000 yen

Discount rate

4.0％

Determined by assessing factors such as capitalization rate
on investments in long-term financial products, risk oftargeted real estate for investment purposes, and borrowingrates.

Terminal capitalization rate

4.4％

Based on portfolio property location, type of building, andexisting contractual conditions, among other factors

Estimated Price

9,560,000,000 yen

Land ratio

69.0％

Ratio of the land rounded to the nearest tenth as apercentage to the value of the building and its lot

Building ratio

31.0％

Ratio of the building rounded to the nearest tenth as apercentage to the value of the building and its lot

Special items toconsider at the time ofmaking adjustments toprovisional calculations
and deciding theappraisal price/value

After assessing the value of income from the property using both the DCF method and the direct-return method, thecomputed value is used as a reference, and the value of the building and its lot is appraised at 19,100,000,000 yen

The appraisal value of real estate is an indication of the opinion of the value by the appraiser of the real estate in question and is conducted by
an appraisal in accordance with the law and standards related to real estate appraisals at the time of the appraisal. There may be cases wherean appraisal of the exact real estate is conducted again, and because of factors such as timing of the appraisal and the appraisal method usedby the appraiser, a different value may result. Furthermore, the appraised valuation of real estate is neither a guarantee nor an obligation, now
or into the future, of a sale or purchase of the real estate.

6Reference Material 2
Table of Real Estate Portfolio After the Acquisition of the Property
BuildingNo.

Property Name(Note)

Facility(Type of Use)

AreaAcquisition (TBD)
DateAcquisitionPrice(Actual/Proposed)(in millions)

Investment
Rate

R1 (K)HEP Five

RetailKansai

February 1, 2005

23,10023.0%

R2 (K)

Kitano Hankyu Building

RetailKansai

February 1, 2005

7,740

7.7%

R3 (K)Dew Hankyu Yamada

RetailKansaiFebruary 1, 2005

6,930

6.9%

R4 (K)

Takatsuki-Josai Shopping Center

RetailKansaiNovember 15, 2005

8,600

8.6%

R5 (K)

Nitori Ibaraki-Kita Store (site)

RetailKansaiMarch 29, 2006

1,318

1.3%

OtherOctober 2, 2006

2,170

areasApril 9, 2007

KansaiMarch 15, 2007

R6
R7 (K)

Kohnan Hiroshima
Nakano-Higashi Store (site)
NU chayamachi

RetailRetail

19,30019.2%

69,16368.8%

19,02518.9%

19,025

18.9%

November 1, 2005

2,980

3.0%

October 2, 2007

9,405

9.4%

Subtotal

12,385

12.3%

Total

100,573

100.0%

Subtotal
0

Shiodome Eastside Building

OtherOfficeareas

February 29, 2008

Subtotal
M1 (K)
M2

2.2%

5Ueroku F Building

Multi-purpose

Sphere Tower Tennoz

Multi-purpose

KansaiOther
areas

Note: Numbers represent the classification for properties owned by Hankyu REIT by each region and type of use.
Letters represent retail (“R”), office (“O”) and multi-purpose (“M”).
Numbers represent the chronological order of the acquisition of each facility. Also, the letter “K” in parentheses to the right ofthese numbers indicates that the property is located in the Kansai region.

7

Reference Material 3

Image of External Facade

Map of Location and Surrounding Area

8