<For translation purposes only>
January 16, 2009For 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 Assets

Hankyu REIT, Inc. (hereafter “Hankyu REIT”) hereby notifies today that the acquisitions of the assets mentioned below
have been decided.

Details1.

Overview of Acquisition(1) LAXA Osaka(i)

Acquired asset:

Real estate trust beneficiary interests

Trustee:

Mitsubishi UFJ Trust and Banking Corporaton(ii)

Property name:

LAXA Osaka(iii)

Proposed acquisition price: 5,122,800,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)(iv)

Proposed acquisition date: January 22, 2009(v)

Seller:

ZEKUTO GK(vi)

Acquisition funds:

Debt financing(2) LaLaport KOSHIEN (site)(i)

Acquired asset:

Real estate trust beneficiary interests

Trustee:

Mitsubishi UFJ Trust and Banking Corporation(ii)

Property name:

LaLaport KOSHIEN (site)(iii)

Proposed acquisition price: 7,350,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)(iv)

Proposed acquisition date: January 22, 2009(v)

Seller:

ZEKUTO GK(vi)

Acquisition funds:

Debt financing

1

(3) Namba Hanshin Building(i)

Acquired asset:

Real estate trust beneficiary interests

Trustee:

Mitsubishi UFJ Trust and Banking Corporation(ii)

Property name:Namba Hanshin Building(iii)

Proposed acquisition price: 4,310,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)(iv)

Proposed acquisition date: January 22, 2009(v)

Seller:

ZEKUTO GK(vi)

Acquisition funds:

Debt financing(4) Richmond Hotel Hamamatsu(i)

Acquired asset:

Real estate trust beneficiary interests

Trustee:

Mitsubishi UFJ Trust and Banking Corporation(ii)

Property name:Richmond Hotel Hamamatsu(iii)

Proposed acquisition price: 2,100,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)

2.

(iv)

Proposed acquisition date: January 22, 2009(v)

Seller:

E-Hotels Network Y.K.

(vi)

Acquisition funds:

Debt financing

Reason for Acquisition
Based on policies and properties under management as stipulated in our articles of incorporation, we are
acquiring 4 properties to obtain steady growth with a focus on an overall balanced portfolio. The information
about the properties was provided by Hankyu Hanshin Holdings Group. Also, LAXA Osaka, LaLaport
KOSHIEN (site), and Namba Hanshin Building are properties that have been owned previously by Hanshin
Electric Railway Co., Ltd. and this acquisition shows the results that can be achieved through collaboration withthe aforesaid Group.
Also, with the decision to acquire the 4 properties, we have made the following assessments:(1) LAXA Osaka
The property is a complex facility, consisting of offices, a hotel (HOTEL HANSHIN), restaurants and cafes,
that is located in front of Hanshin Main Line's Fukushima Station and JR Osaka Loop Line’s Fukushima
Station. Situated in one of the area’s most prestigious locations, the property is recognized as a landmark
building of the area with a large total floor area.
The hotel portion, which occupies a large portion of the property is operated by Hankyu Hanshin Hotels
Co., Ltd. The hotel is suitably competitive as a city hotel, boasting such facilities as 289 guest rooms withnatural hot spring bath, a chapel, banquet hall, restaurant and spa.

(2) LaLaport KOSHIEN (site)
The property is a retail facility approximately 5 minutes walking distance from Koshien Station on the
Hanshin Main Line. It is in a prime location for transportation convenience. On the northern side of theproperty is Route 43 (national road), a major trunk road connecting Osaka and Kobe, while on the2western side runs Route 340 (prefectural road). Also, the location has excellent potential as a market
area as there is a population of 220,000 within a 3 km area, and 560,000 within a 5 km area.
The property is used as a lot for a retail facility and operating on the property is a shopping mallconsisting of a building owned by Mitsui Fudosan Co., Ltd., a large supermarket operated by a company
affiliated with the aforesaid company, and about 170 specialty stores ranging from fashion, interior, andvariety goods to restaurants and cafes. The mall targets families of three generations with a focus on
Japan's second baby boomers (people born approx. 1970–75). Also, Kidzania Koshien is scheduled toopen in March 2009, which will further raise the facility’s attractiveness to customers.

(3) Namba Hanshin Building
The Namba area in which the property is situated is one of Kansai region’s leading areas of concentrated
commercial activity, and in Osaka, second only to the Umeda area. Namba serves as a railway terminusthat connects 6 railway lines and boasts one of Osaka’s highest figures for passengers passing throughstation gates, second only to Umeda. With the Hanshin Namba Line scheduled to open in March 2009,
the area is poised for a new influx of passengers.
The property has excellent transportation convenience. It is in close proximity to the Subway Midosuji
Line’s Namba Station via the underground city Namba Walk. The total floor area of the property exceeds
3,000 tsubo , which makes the property stand out from the majority of buildings in the surrounding areathat have total floor areas less than 1,000 tsubo. For such an area, the property is highly regarded for its
size characteristics and the rental spaces, which are without pillars, can be adjusted with partitions.

(4) Richmond Hotel Hamamatsu
The property’s location, the city of Hamamatsu is a center of various industrial developments including
the manufacturing of transportation equipments, such as motorcycle and automobile, and othermanufacturing such as semiconductors and medical devices. The city population is approximately
820,000, which is greater than Shizuoka, Shizuoka Prefecture’s capital city, making it the largest city intheprefecture.

In

April

2007,

the

city

of

Hamamatsu

becameJapan’s

16th

government-ordinance-designated city.
The property is on Route 152 “Ote-dori” (national road), which traverses the city center in a north/south
direction, about 5 minutes drive from JR Hamamatsu Station in a north-western direction. While excellingin terms of visibility and scenic advantage, it is also close to Hamamatsu's city hall. The property issuitably competitive. It is a 218-room hotel for business travelers, and most rooms are spacious single
rooms (room floor area 17.6 m2), putting it in a higher grade compared with rival business-traveler hotels
even in terms of facility function.

3

3.

Details of the Acquired Asset(1) LAXA Osaka
Property name

LAXA Osaka

Specific asset type

Trust beneficiary interest

Proposed acquisition price

5,122,800,000 yen

Appraised value

5,130,000,000 yen (As of November 1, 2008)(Appraisal organization: Tanizawa Sogo Appraisal Co., Ltd.)

Location

Address

5-6-16 Fukushima, Fukushima-ku, OsakaLand

Building

80%

Building

coverageMonth/Year
Built

February 1999

Floor area ratio

600%/400%

Structure/
FloorsSteel frame and steel frame
reinforced concrete structurewith deck roof and 2
underground levels, 24 floors

Zone use

Commercial zone

Use

Store, office, hotel, parking
garage space

Total floor
area
Form ofownership

2

Lot area

5,678.87 m (Note 1)

Form ofRight of ownership,ownershipleased-land rights

40,674.12 m2 (Note 2)Stratified right of ownership(floor area of exclusive-use
portion 30,339.91 m2 )Design company

Takenaka Corporation
The consortium composed of Takenaka Corporation, Hanshin Kensetsu Co., Ltd.,

Construction company

OBAYASHI CORPORATION, KAJIMA CORPORATION, NOMURA CONSTRUCTION
INDUSTRIAL CO, LTD.

Building recognition
organization

Osaka City

Author of engineering report

Nikken Sekkei Construction Management, Inc. (October 2008)

Property manager

Hankyu Hanshin Building Management Co., Ltd.

PML of earthquake risk
analysis

3.4% (Evaluator: Engineering & Risk Services Corporation, OYO RMS Corporation）

Collateral

None
2

2

Note 1: The lot area includes 1,204.93 m of exclusive rights portion of other stratified owners and 320.49 m ofleased land portion (that Hanshin Electric Railway Co., Ltd. leases from the land owner and then subleases
out to the trustee). The portion of the lot that Hankyu REIT is acquiring is 4,153.45 m2.
Note 2: The total floor area is the total floor area of the entire building of the property (one building noted in theregistry).

4(2) LaLaport KOSHIEN (site)
Property name

LaLaport KOSHIEN (site)

Specific asset type

Trust beneficiary interest

Proposed acquisition price7,350,000,000 yen

Appraised value

7,350,000,000 yen (As of November 1, 2008)(Appraisal organization: Rich Appraisal Institute K.K.)

Location

Address (Note 1)

1-100 Koshien8ban-cho, Nishinomiya city, Hyogo

Land

Building

60%

Building

coverage
200%

Zone use

Class 2 residential zone

Form of2(i)86,124.96 m(ii)

35,737.20 m2(iii)

4,190.00 m2

Right of ownershipownership
Design company (Note 3)
Construction company(Note 3)
Building recognition
organization (Note 3)
Author of engineering report(Note 3)

April 1981(Note 4)(Note 3) Built

Floor area ratio

Lot area (Note 2)Month/Year
Structure/
FloorsSteel frame structure with
galvanized steel plate roof,
2 floors

Use

OfficeTotal floorarea

394.88 m

Form ofownership

Right of ownership2

Sekkei Jimusho General Drafting
Hanshin Doboku Kogyo K.K.
Nishinomiya City
Takenaka Corporation (September 2008)

Property manager

Hankyu Hanshin Building Management Co., Ltd.

PML of earthquake risk
analysis (Note 3)

6.0%

Collateral

None(Evaluator: Engineering
Corporation）

&

Risk

Services

Corporation,

OYO

RMS

Note 1: Address is of the retail facility portion.
Note 2: (i) area of the retail facility lot portion; (ii) area of the parking garage space portion on the western side; (iii)area of the parking garage space portion on the eastern side.
Note 3: Details of parking garage space administration building portion. The buildings of the retail facility portion are
owned by Mitsui Fudosan Co., Ltd.
Note 4: Renovated in October 2004.

5

(3) Namba Hanshin Building
Property nameNamba Hanshin Building

Specific asset type

Trust beneficiary interest

Proposed acquisition price

4,310,000,000 yen

Appraised value

4,310,000,000 yen (As of November 1, 2008)(Appraisal organization: Daiwa Real Estate Appraisal Co., Ltd.)

Location

Address

4-7-14 Namba, Chuo-ku, OsakaLand

Building

80%

Building

coverageMonth/Year

March 1992

Built

Floor area ratio

1000%

Zone use

Commercial zone

Lot area2

971.61 m

Form ofRight of ownershipownership

Structure/
FloorsSteel frame and steel frame
reinforced concrete structurewith deck roof and 2
underground levels, 11 floors

Use

Office, store, parking garage

Total floor
area
Form ofownership

9,959.01 m2
Right of ownership

Design company

Irie Miyake Architects and Engineers

Construction company

ARAIGUMI CO., LTD.

Building recognition
organization

Osaka City

Author of engineering report

Takenaka Corporation (September 2008)

Property manager

Hankyu Hanshin Building Management Co., Ltd.

PML of earthquake risk
analysis

4.5% (Evaluator: Engineering & Risk Services Corporation, OYO RMS Corporation）

Collateral

None

6

(4) Richmond Hotel Hamamatsu
Property nameRichmond Hotel HamamatsuSpecific asset type

Trust beneficiary interest

Proposed acquisition price

2,100,000,000 yen

Appraised value

2,100,000,000 yen (As of November 1, 2008)(Appraisal organization: Rich Appraisal Institute K.K.)

Location Address

218-1 Motoshiro-cho, Naka-ku, Hamamatsu

Land

80%

Building coverage

Building

Month/Year

September 2002

Built
Floor area ratio

600%

Zone use

Commercial zone
2

Lot area

1,264.43 m

Form of ownership Right of ownership

Structure/
FloorsSteel frame structure withdeck roof and 11 floors.

Use

Hotel, store

Total floor
area
Form ofownership

6,995.33 m2 (Note)
Right of ownership

Design company

Daiwa House Industry Co., Ltd.; INTER JUNK, INC. (building extension)

Construction company

Daiwa House Industry Co., Ltd.; Bisou Co., Ltd. (building extension)

Building recognition
organization

Hamamatsu City

Author of engineering report

Takenaka Corporation (October 2008)

Property manager

Hankyu Hanshin Building Management Co., Ltd.

PML of earthquake risk
analysis

13.9% (Evaluator: Engineering & Risk Services Corporation, OYO RMS
Corporation）

CollateralNone
2

Note: Includes 114.24 m in floor area of 4 annexed buildings (1 parking garage and 3 changing rooms).
4.

Overview of Leasing(1) LAXA Osaka
Total number of tenants

1 (Note 1)

Principal tenant

Hanshin Electric Railway Co., Ltd.

Annual rent

509 million yen (Note 2)

Rental area capacity

30,339.91 m2 (Note 3)

Actual rented area

30,339.91 m2 (Note 3)

Occupancy rate

100% (Note 4)

Security deposit

254 million yen (Note 5)

Note 1: The total number of tenants is considered as one because the property is planned to be entirely leased totenants under the master lease method.
Note 2: The figure represents a calculation of monthly rent amounts as expressed in a fixed-term building leaseagreement proposed to be concluded on January 22, 2009, multiplied by 12 times. Figures are rounded to thenearest million yen unit.
Note 3: Figures are the contractual areas expressed by the fixed-term building lease agreement proposed to beconcluded on January 22, 2009.
Note 4: The ratio of actual rented area to rental area capacity.
Note 5: The figure is the monetary value of the security deposit expressed in the fixed-term building lease agreement

7

proposed to be concluded on January 22, 2009.

(2) LaLaport KOSHIEN (site)
Total number of tenants

1

Principal tenant

Mitsui Fudosan Co., Ltd.

Annual rent

509 million yen (Note 1)

Rental area capacity

126,052.16 m2 (Note 2)

Actual rented area

126,052.16 m2 (Note 2)

Occupancy rate

100% (Note 3)

Security deposit

335 million yen (Note 4)

Note 1: The figure represents a calculation of monthly rent amounts as expressed in the existing lease agreement
multiplied by 12 times. Figures are rounded to the nearest million yen unit.
Note 2: Figures represent areas noted in the existing registry.
Note 3: The ratio of actual rented area to rental area capacity.
Note 4: The figure is the monetary value of the security deposit expressed in the existing lease agreement.

(3) Namba Hanshin Building
Total number of tenants

1 (18) (Note 1)

Annual rent

305 million yen (Note 2)
9,959.01 m2 (Note 3)

Rental area capacity(6,456.88 m2)
9,959.01 m2 (Note 3)

Actual rented area

(5,785.60 m2)
100% (Note 4)

Occupancy rate
(89.6%)
Security deposit

258 million yen (Note 5)

Note 1: The total number of tenants is considered as one because the property is entirely leased to tenants under the
pass-through master lease method. The figure in parentheses represents the existing number of end tenants.
Note 2: The figure represents a calculation of monthly rent amounts and revenues from common area charges as
expressed in the existing lease agreement, multiplied by 12 times. Figures are rounded to the nearest million
yen unit. Storage, parking garage space, and machinery room and others are not included.
Note 3: Rental area capacity and actual rented area are the contractual areas expressed in the master leaseagreement. The figures in parentheses in rental area capacity and actual rented area represent the existingarea that could be rented to end tenants, and the total of contractual area expressed in the leasing
agreements of existing end tenants, respectively. Storage, parking garage space, and machinery room andothers are not included.
Note 4: The ratio of the existing actual rented area to rental area capacity. The occupancy rate in parentheses iscalculated based on the rental area capacity and the actual rented area being the existing area that could be
rented to end tenants, and the actual rented area expressed in the leasing agreements of existing end
tenants, respectively. Figure is rounded to the nearest tenth. Storage, parking garage space, and machineryroom and others are not included.
Note 5: The figure is the monetary value of the security deposit expressed in the existing lease agreement. Figures
are rounded to the nearest million yen unit. Storage, parking garage space, and machinery room and others
are not included.

8

(4) Richmond Hotel Hamamatsu
Total number of tenants

1 (Note 1)

Principal tenant

RNT HOTELS Co., Ltd.

Annual rent–– (Note 2)

Rental area capacity

6,995.33 m2 (Note 3)

Actual rented area

6,995.33 m2 (Note 3)

Occupancy rate

100% (Note 4)

Security deposit–– (Note 2)

Note 1: The total number of tenants is considered as one because the property is entirely leased to tenants under the
master lease method.
Note 2: Information is not permitted to be disclosed (tenant request).
Note 3: Figures represent areas noted in the existing registry.
Note 4: The ratio of actual rented area to rental area capacity.

5.

Overview of the Seller(1)

LAXA Osaka; LaLaport KOSHIEN (site); Namba Hanshin Building

Trade name

ZEKUTO GK

Location of headquarters

Tokyo Kyodo Accounting Office, 3-1-1 Marunouchi, Chiyoda-ku, Tokyo
Representative

Representative

Company:

ZEKUTO

Holdings

LimitedLiability

Intermediary

Corporation
Executor of Duties: Ryutaro Uchiyama

Capital1 million yen
ZEKUTO GK is a special purpose company in which ZEKUTO Holdings Limited
Liability Intermediary Corporation has made investments and Hankyu Corporation,

Major shareholders

Hanshin Electric Railway Co., Ltd., and others have invested for the part ofanonymous associations.
1. Acquisition, ownership, disposal, lease and management of real estate

Main business activities

2. Acquisition, ownership, and disposal of trust beneficiary interests of real estate
3. Operations related to or of ancillary relationship to, the above operations
Hankyu Corporation, parent company of asset management company, Hankyu REIT

Relation to Hankyu REIT
or asset managementcompany

Asset Management, Inc., and Hanshin Electric Railway Co., Ltd., subsidiary ofHankyu Hanshin Holdings which is a parent company of the aforesaid asset
management company, are interested parties as defined by the Investment Trust andInvestment Corporation Law, and although they comprise a part of anonymous
associations investing in the seller, they do not qualify as a special interested party.

9

(2)

Richmond Hotel Hamamatsu

Trade name

E-Hotels Network Y.K.

Location of headquarters

2-13-10 Nihonbashi, Chuo-ku, Tokyo

Representative

Representative Director: Minoru Tanaka

Capital

3 million yen
E-Hotels Network Y.K. is a special purpose company in which No. 3 NANIWA CLUB
Limited Liability Intermediary Corporation has made investments and Hankyu

Major shareholders

Corporation and others have invested for the part of anonymous associations.
1. Trade, ownership, disposal, and management of trust beneficiary interest
2. Purchase, acquisition, sale, lease and management of real estate

Main business activities

3. Operations related to the above operations
Relation to Hankyu REIT
or asset managementcompany

6.

Hankyu Corporation, parent company of asset management company, Hankyu REIT
Asset Management, Inc., is an interested party as defined by the Investment Trustand Investment Corporation Law, and although it comprises a part of anonymous
associations investing in the seller, it does not qualify as a special interested party.

Transactions with Interested Parties, etc.
Because Hankyu Hanshin Building Management Co., Ltd., who is the master lessee of Namba Hanshin
Building and consignee of the property management operations of all 4 properties, falls under the definition of“interested party, etc,” in the Investment Trust Law, the conditions concerning the conclusion of the master
lease agreement and the property management agreement, have been scrutinized and approved by theinvestment management committee, the compliance committee, and the board of directors of the asset
management company in accordance with the asset management company’s rules concerning transactions
involving conflicts of interest, investment management committee regulations, and compliance committee
regulations, among others.
Because Hanshin Electric Railway Co., Ltd., who is the master lessee and the land sublessor of LAXA Osaka,
falls under the definition of “interested party, etc,” in the Investment Trust Law, the conditions concerning theconclusion of the the master lease and land sublease agreement, have been scrutinized and approved by theinvestment management committee, the compliance committee, and the board of directors of the asset
management company in accordance with the asset management company’s rules concerning transactions
involving conflicts of interest, investment management committee regulations, and compliance committee
regulations, among others.
Details on intermediaries are described in “7. Overview of Intermediaries”.

7.

Overview of Intermediaries(1) LAXA Osaka
Broker:Hankyu Investment Partners, Inc.

Payment fee:

102,456,000 yen (excluding consumption tax)

(2) LaLaport KOSHIEN (site)
Broker:Hankyu Investment Partners, Inc.

Payment fee:

147,000,000 yen (excluding consumption tax)(3) Namba Hanshin Building
Broker:Hankyu Investment Partners, Inc.

Payment fee:

86,200,000 yen (excluding consumption tax)10

(4) Richmond Hotel Hamamatsu
Broker:Hankyu Realty Co., Ltd.

Payment fee:

42,000,000 yen (excluding consumption tax)

Because Hankyu Investment Partners, Inc. and Hankyu Realty Co., Ltd. fall under the definition of “interested
party, etc,” in the Investment Trust Law, the conditions concerning consignment of brokerage operations, havebeen scrutinized and approved by the investment management committee, the compliance committee, and theboard of directors of the asset management company in accordance with the asset management company’s
rules concerning transactions involving conflicts of interest, investment management committee regulations,and compliance committee regulations, among others.

8.

Acquisition Process
January 16, 2009

Resolution approving execution of the agreement at the asset managementcompany's board of directors' meeting.

January 22, 2009

Proposed conclusion of agreement to transfer real estate trust beneficiaryinterests, and proposed acquisition.

9.

Future Outlook
Please refer to “Financial Results for the Fiscal Period from June 1, 2008 to November 30, 2008” that was
released separately today.

•

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/<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

Photograph of External Facade, Map of Location and Surrounding Area

11

Reference Material 1
Overview of Appraisal Report
PROPERTY NAMELAXA Osaka

Appraised Value

5,130,000,000 yen

Appraisal Organization

Tanizawa Sogo Appraisal Co., Ltd.

Date of Appraisal

November 1, 2008
Item

Earned Price *Earned Price from Direct Capitalization Method

Value

Basis for Valuation

5,130,000,000 yen

Calculated using DCF method as a standard andverified from the direct capitalization method.

5,030,000,000 yen(i) Operating return (a + b - c)

508,824,000 yen

a Income from rental fees

508,824,000 yen

Assessment based on market rates (= proposed rent)b Other income

0 yen

Assessment based on income records

c Loss from non-occupancy

0 yen

Assessment based on lease format and market
competitiveness of the targeted real estate(ii) Operating costs (a + b + c + d + e + f)a Maintenance/administrative fees, etc.

181,535,970 yen
3,600,000 yen

Assessment based on lease format and quoted
documents supplied by Hankyu REITb Utilities

0 yen

Assessment based on lease format and income
recordsc Repairs

22,936,000 yen

Assessment based on engineering report and similar
examplesd Public charges and taxes

107,489,900 yen

Recorded based on actual amount in 2008e Casualty insurance premiums

11,510,070 yen

Recorded based on quoted amounts

f Other expenses

36,000,000 yen

Assessment based on land lease agreement andincome records(iii) Net operating income (NOI = (i) - (ii))

327,288,030 yen(iv) Gain on investment of lump-sum money

5,088,240 yen

Assessment based on operating yield of 2.0%(v) Capital expenditures

45,872,000 yen

Assessment based on engineering report and similar
examples(vi) Net cash flow (NCF = (iii) + (iv) - (v))

286,504,270 yen(vii) Capitalization rate

5.7%

Earned Price from Discounted-Cash-Flow (DCF) Method

Assessment referenced trade yield examples ofsimilar real estates

5,170,000,000 yen

Discount rate

5.9%

Calculated by adding individual risk to hotel’s baseyield

Terminal capitalization rate

6.0%

Assessment based on capitalization rate coupled with
future forecast uncertainty

Estimated Price*

8,720,000,000 yen

Land Ratio

34.7%

Building Ratio

65.3%

Special items to consider at the time of making
adjustments to provisional calculations anddeciding the appraisal price/value

Targeted real estate is close to JR Osaka Loop Line’s Fukushima Station, in a south-eastern
direction, and is located at a meeting point of JR Osaka Loop Line, Hanshin Main Line, Route41 “Naniwa-suji” (prefectural road), and Route 2 (national road). It is a complex commercial
building that was a result of redevelopment of the lot that used to be Hanshin Main Line’s
station, accompanying the movement of that line to a subway route in 1999. It has theadvantage of being a landmark building of the bustling market areas of the surrounding
stations in Fukushima ward and has therefore a strong attractiveness to customers. The
appraised value of the targeted real estate was decided by the appraisal organization, who
treated the earned price as the appraised value. The appraisal decision was based onreconsideration of provisional calculations and examination of the judgment concerning thepersuasiveness of the provisional calculations and considerations were given to the process
by which the price was formulated, placing emphasis on profitability of the market participants(demanders) of the targeted real estate, the objectives of the appraisal request, and similarcases of the stratified-ownership building (for rent) and its lot (partial leased-land rights).

The appraised 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.

12Overview of Appraisal Report
LaLaport KOSHIEN (site)

PROPERTY NAME
Appraised Value

7,350,000,000 yen

Appraisal Organization

Rich Appraisal Institute K.K.

Date of Appraisal

November 1, 2008
Item

Value

Earned Price *Earned Price from Discounted-Cash-Flow (DCF) Method

Basis for Valuation

7,350,000,000 yen—

7,350,000,000 yen—

Discount rate per period

4.8%

—

Terminal capitalization rate

4.7%

—

Special items to consider at the time of making
adjustments to provisional calculations anddeciding the appraisal price/value

Targeted real estate is located in a suburb-type commercial zone intersected by majortransportation routes close to the Hanshin Koshien Baseball Stadium in south-eastern
Nishinomiya. This is a superb location both in terms of commercial area population and roadand rail accessibility. Also targeted real estate is comprised of a large-scale retail facility forwhich a twenty-year contract has been executed for the establishment of fixed-termleased-land rights for business use, and a parking area that is used for the aforesaid facility.
The profitability of the property is therefore deemed safe and secure.
The discount rate and the terminal capitalization rate especially from DCF method were
calculated based on consideration of the currently stable standard land prices. The appraisedvalue of the property was decided by the appraisal organization, who treated the value as theearned price obtained by the DCF method. The appraisal decision was based on similarcases with leased-land ownership and considerations were given to the process by which theearned price was formulated, placing emphasis on profitability of the market participants.

The appraised 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.

13

Overview of Appraisal Report
PROPERTY NAME

Namba Hanshin Building

Appraised Value

4,310,000,000 yen

Appraisal Organization

Daiwa Real Estate Appraisal Co., Ltd.

Date of Appraisal

November 1, 2008
Item

Value

Earned Price *Basis for Valuation

4,310,000,000 yen

Earned Price from Direct Capitalization Method

4,320,000,000 yen(i) Operating return (a + b - c)

384,915,315 yen

a Income from rental fees

330,724,680 yen

Assessment based on an appropriate rental standard
with recognized stability over a medium-to-long termb Other income

76,690,388 yen

Recorded income from utilities and other income

c Loss from non-occupancy

22,499,753 yen

Assessment based on stable occupancy rate over a
medium-to-long term(ii) Operating costs (a + b + c + d + e + f)

144,793,255 yen

a Maintenance/administrative fees, etc.

50,704,787 yen

Assessment referenced maintenance/administrative
fees standards of similar real estates based on
existing contract detailsb Utilities

34,757,243 yen

Assessment referenced utilities standards of similar
real estate based on past actual records.

c Repairs

10,255,500 yen

Assessment based on annual average repair andupgrade cost provided by engineering reportd Public charges and taxes

45,648,845 yen

Assessment based on actual amount in 2008e Casualty insurance premiums

3,426,880 yen

Assessment based on quoted amounts

f Other expenses

0 yen(iii) Net operating income (NOI = (i) - (ii))

240,122,060 yen(iv) Gain on investment of lump-sum money

4,271,352 yen

Assessment based on operation yields of 2.0%(v) Capital expenditures

23,929,500 yen

Assessment based on annual average repair andupgrade cost provided by engineering report(vi) Net cash flow (NCF = (iii) + (iv) - (v))

220,463,912 yen(vii) Capitalization rate

5.1%

Earned Price from Discounted-Cash-Flow (DCF) Method

Assessment based on general consideration oflocation conditions, building conditions, and contract
conditions of the targeted real estate

4,300,000,000 yen

Discount rate

4.9%

Assessment based on transaction examples of similar
real estates, yield of financial assets and uniquecharacteristics of the real estate

Terminal capitalization rate

5.3%

Assessment based on characteristics of net income
used for capitalization rate, future uncertainty, liquidity
and market characteristics

Estimated Price*

3,360,000,000 yen

Land Ratio

50.3%

Building Ratio

49.7%

Special items to consider at the time of making
adjustments to provisional calculations anddeciding the appraisal price/value

The earned price was assessed at 4,310,000,000 yen using the direct capitalization method
and the discounted-cash-flow method and the appraised value was decided to be
4,310,000,000 yen after referencing the estimated price.

The appraised 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.

14

Overview of Appraisal Report
PROPERTY NAME

Richmond Hotel Hamamatsu

Appraised Value

2,100,000,000 yen

Appraisal Organization

Rich Appraisal Institute K.K.

Date of Appraisal

November 1, 2008
Item

Value

Earned Price*

Basis for Valuation

2,100,000,000 yen

Earned Price from Direct Capitalization Method

2,090,000,000 yen(i) Operating return (a + b - c)

145,036,080 yen

a Income from rental fees

145,036,080 yen

b Other income

Assessment
agreement

amountbasedonAssessment
agreement

based

real

estatebuildinglease

c Loss from non-occupancy(ii) Operating costs (a + b + c + d + e + f)a Maintenance/administrative fees, etc.

19,320,773 yen
2,884,317 yenb Utilities

management

0 yen

c Repairs

0 yen

d Public charges and taxes

14,096,396 yen

Based on actual amount in 2008.

e Casualty insurance premiums

2,340,060 yen

Assessment based on quoted amounts supplied byHankyu REIT

f Other expenses

0 yen(iii) Net operating income (NOI = (i) - (ii))

125,715,307 yen(iv) Gain on investment of lump-sum money

2,900,800 yen

Assessment based on annual security deposit of 2.0%(v) Capital expenditures

11,328,333 yen

Assessment based on engineering report(vi) Net cash flow (NCF = (iii) + (iv) - (v))

117,287,774 yen(vii) Capitalization rate

5.6%

Earned Price from Discounted-Cash-Flow (DCF) Method

2,100,000,000 yen

Discount rate

5.4％

Terminal capitalization rate

5.7%

Estimated Price*

1,940,000,000 yen

Land Ratio

18.8%

Building Ratio

81.2%

Special items to consider at the time of making
adjustments to provisional calculations anddeciding the appraisal price/value

Targeted real estate is Richmond Hotel Hamamatsu located about 1 km north-west of JR’s
Hamatsu Station (Tokaido Shinkansen and Tokaido Main Line) and 160 m south-east from
Hamamatsu’s city hall. Targeted real estate’s neighborhood is a commercial zone in which
store, office and other buildings are concentrated along the sides of Route 152 (nationalroad). For the assessment of the earned price using the DCF method, the discount rate andterminal capitalization rate used to calculate the present value are 5.4% and 5.7%
respectively. For the assessment of the earned price using the direct capitalization method,the eleventh year is taken as the standard net income of a stable period and capitalization
rate is 5.6%. The appraisal organization decided the appraised value of the property with aweighting towards the DCF method.

The appraised 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.

15

Reference Material 2
Table of Real Estate Portfolio After the Acquisition of the Properties
Building
No.

Property Name

(Note)

Facility(Type of Use)

Area

Acquisition (TBD)
Date

Acquisition
Price(Actual/Proposed)(in millions)

Investment
Rate

R1 (K)HEP Five

RetailKansaiFebruary 1, 2005

23,10017.1%

R2 (K)

Kitano Hankyu Building

RetailKansaiFebruary 1, 2005

7,740

5.7%

R3 (K)Dew Hankyu Yamada

RetailKansaiFebruary 1, 2005

6,930

5.1%

R4 (K)

Takatsuki-Josai Shopping

RetailKansaiNovember 15, 2005

8,600

6.4%

RetailKansaiMarch 29, 2006

1,318

1.0%

Other

October 2, 2006

2,170

areas

April 9, 2007

KansaiMarch 15, 2007

19,30014.3%

December 25, 2008

4,160

3.1％

January 22, 2009

7,350

5.5％

January 22, 2009

2,100

1.6％

82,773

61.4%

February 29, 2008

19,02514.1%

May 16,2008

11,2008.3%

30,225

22.4%

November 1, 2005

2,980

2.2%

October 2, 2007

9,405

7.0%

CenterR5 (K)R6
R7 (K)

Nitori Ibaraki-Kita Store (site)
Kohnan Hiroshima
Nakano-Higashi Store (site)

RetailNU chayamachi

RetailR8Hotel Gracery Tamachi

RetailR9(K)LaLaport KOSHIEN(site)

RetailR10

Richmond Hotel Hamamatsu

RetailOther
areas
KansaiOther
areas

Subtotal
01
02 (K)

Shiodome Eastside Building
HankyuCorporation

Office Building

Head

Other

Officeareas

OfficeKansaiSubtotal
M1 (K)

Kansai

1.6%

5

Ueroku F Building

Multi-purpose

M2

Sphere Tower Tennoz

Multi-purpose

M3(K)LAXA Osaka

Multi-purpose

KansaiJanuary 22, 2009

5,122

3.8％

M4(K)

Namba-Hanshin Building

Multi-purpose

KansaiJanuary 22, 2009

4,310

3.2％

Subtotal

21,817

16.2%

Total

134,816100.0%

Other
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.

16

Reference Material 3
Photograph of External Facade of LAXA Osaka

Map of Location and Surrounding Area of LAXA Osaka

17

Photograph of External Facade of LaLaport KOSHIEN(site)

Map of Location and Surrounding Area of LaLaport KOSHIEN(site)

18

Photograph of External Facade of Namba-Hanshin Bldg.

Map of Location and Surrounding Area of Namba-Hanshin Bldg.

19

Photograph of External Facade of Richmond Hotel Hamamatsu

Map of Location and Surrounding Area of Richmond Hotel Hamamatsu

20