Creating peace of mind through honest and committed management.

July 14, 2015
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Statutory Executive Officer, Head of Administration
Tel: 03-3502-4891
Ichigo Hotel REIT Establishment andFiling of Report for Changes in Operational Procedures
Ichigo Real Estate Investment Advisors Co., Ltd. (“IRE”), the asset management company ofIchigo Real Estate Investment Corporation (“Ichigo REIT”), has decided to start preparation for
the establishment of a new hotel J-REIT (“Ichigo Hotel REIT”) and file a report as the REIT
establisher to the Commissioner of the Financial Services Agency (FSA) based on Article 3Paragraph 3 of the Financial Instruments and Exchange Law and Article 21 of the Cabinet
Office Ordinance Concerning Financial Instrument Services Business.
1. Objective
On the back of significant support from its sponsor, Ichigo Group Holdings (2337), Ichigo REIT
completed accretive public offerings in November 2014 and April 2015 to acquire high-quality
assets and strategically refocus its portfolio on mid-size offices. Ichigo REIT is continuing toaccelerate its growth strategy to maximize shareholder value.
IRE’s decision to establish Ichigo Hotel REIT reflects the viability of hotels for deployment ofthe Ichigo Group’s extensive real estate value-add capabilities and the continued strengtheningof its hotel asset management business. Japan’s hotel industry is growing due to the expansionof inbound tourism, with the number of foreign visitors to Japan rapidly increasing.
In listing a J-REIT focused on Japanese hotels, an asset class offering very attractive returns toinvestors, Ichigo is working to not only expand investment opportunities on behalf ofshareholders, but also to support the vitality of the J-REIT market and contribute to thegovernment’s objective to promote Japanese tourism.1
As announced in its Extraordinary Report filed on April 9, 2015, Ichigo REIT has been
undergoing a strategic restructuring of its portfolio to focus on mid-size offices with the basic
principle of not acquiring any new residential or hotel assets going forward. Consistent with thisstrategy, Ichigo REIT is transitioning to become a specialized office REIT (“Ichigo OfficeREIT”) that focuses on offices.2

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the issuance of new shares through underwriter third-party
allotment, and has not been prepared for the purpose of solicitation of investment.

Ichigo Office REIT and Ichigo Hotel REIT have different investment targets and investment
criteria. Nonetheless, to manage and prevent any and all potential conflicts of interest between
the two REITs and also Ichigo’s private funds, IRE will amend its internal regulations related tothe handling of real estate-related information effective as of today.
12

The listing of Ichigo Hotel REIT is subject to Tokyo Stock Exchange and regulatory approval.
Please refer to the release “Partial Amendment to Articles of Incorporation” announced today.

2. Details of Ichigo Hotel REIT
NameIchigo Hotel REIT Investment Corporation (Expected)

Location

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo (Expected)

Representative

Osamu Miyashita (Expected)

Organizer

Ichigo Real Estate Investment Advisors Co., Ltd.

3. Schedule
Establishment Filing

July 17, 2015 (Expected)

Establishment Date

July 22, 2015 (Expected)

Registration Application

Mid-August 2015 (Expected)

Registration Completion

Mid-September 2015 (Expected)

Note: The above schedule is subject to change, depending on the progress of IRE internal
procedures and relevant regulatory approvals.
4. Overview of the Report of Changes in Operational Procedures(a) Details of Changes
In establishing Ichigo Hotel REIT, IRE will make the following changes:(i) Subject to shareholder approval, IRE will revise the managed asset types (i.e., Office,Hotel, etc.) in its statements of operational procedures(ii) Reorganization and segregation of operations related to Ichigo Hotel REIT
A Hotel REIT Division will be newly established, and the REIT Division currently incharge of Ichigo REIT will be renamed the Office REIT Division. For details, pleaserefer to today’s release, “Changes in Corporate Directors, Key Personnel, andOrganization of the Asset Management Company.”(b) Report Date
July 28, 2015 (Expected)

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the issuance of new shares through underwriter third-party
allotment, and has not been prepared for the purpose of solicitation of investment.

25. Management and Prevention of Potential Conflicts of Interest
IRE will manage the Ichigo Office REIT, Ichigo Hotel REIT, and private equity real estate funds.
To manage and prevent any and all potential conflicts of interest, IRE has in place internal
regulations that set out how to handle all real estate asset acquisition-related information toprevent arbitrary or unequal allotment of attractive acquisition opportunities.
The details of IRE’s information handling rules are as follows:(a) Should IRE obtain asset acquisition-related information (“Lead”), the Administration
Division shall conduct a preliminary assessment of the acquisition to determine whether toproceed with the Lead.
(b) (i) A Lead that passes the preliminary assessment shall be shared with the Chairman,President, Office REIT Division Head, Hotel REIT Division Head, Private Fund
Division Head, and Administration Division Head at the Pipeline Committee. Should themembers agree to proceed with the Lead, the Lead shall be passed on to the relevant
Division according to the rotation rule below, where First Look is the primary acquisitionright and Second Look is the secondary acquisition right:
Asset Type1
OfficeHotel3
OtherYear Built2

First Look

Second Look

EvenOffice REIT

Private Fund/IGH4

Odd

Private Fund/IGHOffice REIT

Even

Hotel REIT

Private Fund/IGHOdd

Private Fund/IGH

Hotel REIT–

Private Fund/IGH

Hotel REIT

1For mixed-use assets, Asset Type is based on area, e.g., for a office/hotel complex, if
more space is occupied by offices, it is classified as a Hotel asset.

2

If the acquisition is a building with an addition, Year Built refers to the year the addition
was completed. If the acquisition is a company, Year Built refers to company’sincorporation date.

3Hotel refers to accommodation facilities, annexes, and ancillaries, e.g., swimming pools,meeting rooms, banquet rooms, retail stores, amusement facilities. It also includes
furnished and serviced residential assets and accommodations.

4Private Fund Division acquisition priorities refer to both private fund and Ichigo GroupHoldings (IGH) acquisitions.

(ii) Regardless of the aforementioned in (i), if the seller is Ichigo Group Holdings, its
subsidiary, or a company that is owned fully or in part by Ichigo Group Holdings or its
subsidiary, and the seller designates Ichigo REIT or Ichigo Hotel REIT as the acquirer,Ichigo REIT or Ichigo Hotel REIT shall have the First Look and the private fund shallhave the Second Look.
(c) If the Division Head with the First Look decides not to pursue the Lead, then the Lead is
given to the Division with the Second Look. If the Division with the Second Look decides
to withdraw, then the Division having neither the First Look nor the Second Look will havethe right to work on the Lead.
(d) All decision in (b) and (c) are subject to approval of the Compliance Officer.
(e) The Office REIT Division shall regularly report to the Ichigo Office REIT board the resultsof these acquisition information-handling procedures.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the issuance of new shares through underwriter third-party
allotment, and has not been prepared for the purpose of solicitation of investment.

3

6. Future Outlook
The impact on Ichigo REIT of the establishment of Ichigo Hotel REIT and the filing of thereport for changes in operational procedures is minimal. Therefore, no revisions will be made to
Ichigo REIT’s Financial Report for the Fiscal Period Ending April 2015 (November 1, 2014 –April 30, 2015.)

Website of Ichigo REIT: www.ichigo-reit.co.jp/english

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the issuance of new shares through underwriter third-party
allotment, and has not been prepared for the purpose of solicitation of investment.

4