May 8, 2015
To All Concerned Parties
REIT Issuer:
Japan Rental Housing Investments Inc.
6-16-12 Shinbashi, Minato-ku, Tokyo 105-0004
Toshiya Kuroda, Executive Director(Securities Code: 8986)
Asset Manager: Mi-Casa Asset Management Inc.
Yutaka Higashino, President and Chief Executive Officer
Inquiries: Shuji Nakamura, Chief Financial Officer
Tel: +81-3-5425-5600

Notice Concerning Acquisition of Assets
Japan Rental Housing Investments Inc. (hereafter referred to as the “Investment Corporation”) hereby announces that
Mi-Casa Asset Management Inc. (hereafter referred to as the “Asset Manager”), the asset manager of the Investment
Corporation, has resolved to acquire the seven assets described below (hereafter collectively referred to as the “Acquisition”)
at the Asset Manager’s investment committee and the board of directors’ meeting held today. Details are provided below.

I. Basic Policy for External Growth
The Investment Corporation contemplates to achieve stable profit distributions in the medium to long term by increasing
its asset size and improving its portfolio quality. The Investment Corporation’s strategy is to target properties with anacquisition price of generally at least JPY1 billion that are either located in the Tokyo metropolitan area, with an emphasis on
the 23 wards of Tokyo, or are large-scale properties located in other major cities. The Investment Corporation will also aim to
improve the quality of our portfolio through selective dispositions of mostly, relative to our current portfolio, older andsmaller properties located outside the Tokyo metropolitan area, especially properties with disposition prices of generally lessthan JPY 500 million.

II. Reasons for the Acquisition and Overview of the Anticipated Properties
The Investment Corporation targets its portfolio size to reach JPY 250 billion. The Investment Corporation acquired eightproperties for JPY 17.5 billion (total acquisition price) funded by bank debt and cash on hand since the last domestic public
offering in November 2013. The Asset Manager has resolved the Acquisition for a total anticipated acquisition price of JPY
14.3 billion since the Acquisition meets the conditions set by the above Basic Policy.
(Reasons for the Acquisition of the Anticipated Properties)
All of the anticipated properties are located in the 23 wards of Tokyo, Sapporo and Osaka cities. They are high-quality
buildings all of which completed construction in or after 2006 (Serenite Honmachi Grande is a brand new property
constructed in February 2015). The anticipated acquisition price ranges from 92.0% to 99.3% of the appraisal value of each
property (95.5% average for the seven properties as a whole).
In addition, the Investment Corporation will acquire six properties (other than Gran Casa Kita3jo) directly from the sellers
without using brokers which is made possible due to the Asset Manager’s independent channels. (Gransys Tenmabashi and
DayGran Tsurumi will be acquired via bridge funds. Please refer to the press release dated March 26, 2014, “NoticeConcerning Acquisition of Assets (Silent Partnership Equity Interest)”, for details.)(Overview of Each Anticipated Property)
F-1-070 Gran Casa Kita3jo
・A family-type property within walking distance of Sapporo station and the business areas in central Sapporo.
・Constructed in 2012 with an appraisal value of JPY 1,290 million, and an anticipated acquisition price of JPY 1,265
million (98.1% of the appraisal value)

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

1F-4-071 Gran Casa ShinKoiwa
・A family-type property developed as a condo-for-sale, with great access to the city center.
・Constructed in 2006 with an appraisal value of JPY 1,530 million, and an anticipated acquisition price of JPY 1,510
million (98.7% of the appraisal value) (without brokerage)
F-4-072 Gran Casa Ryogoku Ichibankan
・A family-type property developed as a condo-for-sale with high-grade amenities, in a convenient and comfortablelocation. (developed as a unit with Gran Casa Ryogoku Nibankan)
・Constructed in 2006 with an appraisal value of JPY 1,430 million, and an anticipated acquisition price of JPY 1,420
million (99.3% of the appraisal value) (without brokerage)
F-4-073 Gran Casa Ryogoku Nibankan
・Like Gran Casa Ryogoku Ichibankan, a family-type property developed as a condo-for-sale in a convenient andcomfortable location and with great access to the city center. (developed as a unit with Gran Casa Ryogoku Ichibankan)
・Constructed in 2006 with an appraisal value of JPY 785 million, and an anticipated acquisition price of JPY 770 million(98.1% of the appraisal value) (without brokerage)
O-6-142 Serenite Honmachi Grande・This studio-type property was newly built this spring, has great access to the commercial and business areas of Osaka
city, and features luxurious amenities in both the private and common areas.
・Constructed in February 2015 with an appraisal value of JPY 4,530 million, and an anticipated acquisition price of JPY
4,286 million (94.6% of the appraisal value) (without brokerage)
O-6-143 Gransys Tenmabashi (acquisition from bridge fund)・A studio-type property right next door to government and business districts, with good access to the Osaka business
district.
・Constructed in 2007 with an appraisal value of JPY 4,320 million, and an anticipated acquisition price of JPY 4,050
million (93.8% of the appraisal value) (without brokerage)
O-6-144 DayGran Tsurumi (acquisition from bridge fund)・A conveniently-located studio-type property with a large-scale park and commercial facilities nearby.
・Constructed in 2007 with an appraisal value of JPY 1,120 million and an anticipated acquisition price of JPY 1,030
million (92.0% of the appraisal value) (without brokerage)

The Acquisition will bring the asset size of the Investment Corporation to 199 properties and JPY 211.5 billion (based onthe (anticipated) acquisition price), for an anticipated total of 12,744 leasable units.

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

2< Anticipated Properties >Property
NumberName of
Property

Region(Note 2)

Property
Type

AnticipatedAcquisition Price(A)(JPY thousand)Appraisal Value(B)(JPY thousand)(Note 3)Difference
Between
AnticipatedAcquisition Priceand Appraisal
Value(B)-(A)(JPY thousand)((A)/(B))(Note 4)

Gran Casa
Kita3jo

Other Major Cities(Sapporo city, Hokkaido)

Family1,265,880

1,290,000

24,120(98.1%)

23 Wards of Tokyo(Katsushika-ku, Tokyo)

Family1,510,000

1,530,000

20,000(98.7%)

23 Wards of Tokyo(Sumida-ku, Tokyo)

Family1,420,000

1,430,000

10,000(99.3%)

23 Wards of Tokyo(Sumida-ku, Tokyo)

Family770,000

785,000

15,000(98.1%)

O-6-142

Serenite
HonmachiGrandeThree Major
Metropolitan Areas(Osaka city, Osaka)Studio4,286,000

4,530,000

244,000(94.6%)

O-6-143

GransysTenmabashi

Three Major
Metropolitan Areas(Osaka city, Osaka)Studio4,050,000

4,320,000

270,000(93.8%)

O-6-144

DayGranTsurumiThree Major
Metropolitan Areas(Osaka city, Osaka)Studio1,030,000

1,120,000

90,000(92.0%)

14,331,880

15,005,000

673,120(95.5%)

F-1-070(Note 1)F-4-071Gran Casa
ShinKoiwa(Note 1)F-4-072

Gran Casa
Ryogoku
Ichibankan(Note 1)F-4-073Gran Casa
Ryogoku
Nibankan(Note 1)

Total

(Note 1) The current names of the properties to be acquired above are “Zesty Sapporo”, “New City Apartments ShinKoiwa”, “New City Apartments
Ryogoku Ishihara I” and “New City Apartments Ryogoku Ishihara II”, but after the Acquisition by the Investment Corporation they will promptly
be changed to “Gran Casa Kita3jo”, “Gran Casa ShinKoiwa”, “Gran Casa Ryogoku Ichibankan” and “Gran Casa Ryogoku Nibankan”, respectively.
(Note 2) “Three Major Metropolitan Areas” refers to areas outside of the 23 wards of Tokyo, specifically the greater Tokyo area, the greater Nagoya area,
and the greater Osaka area. “Other major cities” refers to the Sapporo, Sendai, Niigata, Shizuoka and Hamamatsu, Okayama, Hiroshima,
Kita-Kyushu and Fukuoka, and Kumamoto Metropolitan Areas and any central cities with a population of 300,000 or more. The same applies to allfollowing.
(Note 3) “Anticipated Acquisition Price” does not include any necessary expenses (real estate agent intermediary fees, taxes and public dues, etc.) of
acquiring the real estate or the trust beneficiary interest of the real estate (the purchase price of the real estate or trust beneficiary interest of the realestate, as provided for in the real estate purchase and sale agreement or trust beneficiary interest purchase and sale agreement). The same applies toall following.
(Note 4) The ratio shown with bracket in “Difference between Anticipated Acquisition Price and Appraisal Value” shows the result of dividing the
anticipated acquisition price by the appraisal value (rounded off to the first decimal).

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

3III. Details of Anticipated Properties(1) F-1-070 Gran Casa Kita3jo
Category of anticipatedproperty for acquisition
Trust company

Real estate

Anticipated acquisition price

JPY 1,265,880 thousand-

Trust agreement period◇ Features of the Property
This property is a 15-story family-oriented apartment with reinforced concrete construction. It is a 9 minute walk from the JR line, Sapporo
station and a 7 minute walk from Sapporo station on the Sapporo City Subway Toho line. In addition to excellent access to the business area
in central Sapporo, the building is surrounded by large department stores, the “Sapporo Esta” commercial building, and the “Sapporo
Factory” commercial building complex, allowing it to target a a wide variety of convenience-conscious residents with a focus on DINKS andfamilies.
◇ Overview of the Property(Residential indication) 3-1-9 Kita3jo Higashi, Chuo-ku, Sapporo-city, Hokkaido (no residential indication)
Location (Note 1)(Lot number) 3-1-9 Kita3jo, Higashi Chuo-ku, Sapporo-city, Hokkaido
Proprietary
Type of ownershipCommercial area
Use Area (Note 2)Landownership
Area (Note 1)
400%/80%
1,146.46 m2 FAR/Building coverage ratio (Note 3)
Proprietary
Type of ownership
Use (Note 1)
Condominium
ownership
Building
Floor space (Note 1)
5,356.19 m2 Completion date (Note 1)
January 5, 2012
Structure type (Note 1) RC, 15-story building with one basement floor and flat roof
No. of leasable units by type
84 units (1LDK: 15 units, 2LDK: 69 units)
Property management
TAKARA Co., LTD.
company (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through (Note 10)◇ Property Lease Summary (Note 4)◇ Property Engineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
2
Leasable area (Note 6)
4,346.56 m
Date of report
April 7, 2015
Leased area
4,346.56 m2 Priority repairs
Monthly rent (Note 7)
JPY 7,072 thousand Near-future repairs (1 year)
JPY 20 thousand
Lease and guarantee deposits
JPY 6,270 thousand Far-future repairs (2~12 years)
JPY 42,010 thousand
Occupancy ratio (unit base)
100.0% Probable maximum loss (PML)
3.7%
Occupancy ratio (area basis)100.0%(Note 8)Special Note: None
Collateral: None

(2) F-4-071 Gran Casa ShinKoiwa
Category of anticipatedproperty for acquisition
Trust company

Real estate

Anticipated acquisition price

JPY 1,510,000 thousand-

Trust agreement period◇ Unique Features of the Property
This property is a 13-story concrete-constructed apartment for families, and is a 4 minute walk from the JR Sobu line, ShinKoiwa station. A
mixture of medium/high rise and low rise residential buildings, as well as office and shop spaces can be found nearby. The station area
provides conveniences such as commercial facilities and roadside shops. Tokyo station is approximately 14 minutes away via JR Sobu line
express, giving excellent proximity to the city center. The property is leased in a condominium style, with full amenities, making it highly
competitive.
◇ Overview of the Property(Residential indication) 4-41-22 ShinKoiwa, Katsushika-ku, Tokyo
Location (Note 1)(Lot number) 4-89-2 ShinKoiwa, Katsushika-ku, Tokyo
Proprietary
Neighborhood commercial/
Type of ownership
Use Area (Note 2)Landownership
light-industrial district
Area (Note 1)
650.92 m2 FAR/Building coverage ratio (Note 3)
400%/200%/80%/60%
Proprietary
Type of ownership
Use (Note 1)
Condominium
Building
ownership
Floor space (Note 1)
2,710.60 m2 Completion date (Note 1)
February 15, 2006
Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

4Structure type (Note 1)
RC, 13-story building with flat roof
Number of leasable units by
36 units (3LDK: 36 units)
type
Property management
Tokyu Housing Lease Corporationcompany (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇ Property Lease Summary(Note 4)◇ Property Engeineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
2,467.92 m2 Date of reportFebruary 25, 2015
Leased area
2,467.92 m2 Priority repairs
Monthly rent (Note 7)
JPY 6,714 thousand Near-future repairs (1 year)
JPY 4,610 thousand
Lease and guarantee deposits
JPY 13,068 thousand Far-future repairs (2~12 years)
JPY 14,650 thousand
Occupancy ratio (unit base)
100.0% Probable maximum loss (PML)
4.0%
Occupancy ratio (area basis)100.0%(Note 8)Special Note: None
Collateral: None

(3) F-4-072 Gran Casa Ryogoku Ichibankan
Category of anticipatedproperty for acquisition
Trust company

Real estate

Anticipated acquisition price

JPY 1,420,000 thousand

Trust agreement period◇ Unique Features of the Property
The property is a 7-story family-oriented apartment constructed from reinforced concrete, located 10 minutes from the Toei Oedo subway
line, Ryogoku station. It is also a 15 minute walk from the JR Sobu line and Tokyo Metro Hanzomon line, Kinshicho station and Tokyo
station is only 10-15 minutes away from each station, providing excellent access to all parts of the city center. There are supermarkets and avariety of small retail stores nearby, making it very convenient for daily life. The property was developed together with Gran Casa Ryogoku
Nibankan, which is across the road to the west, and has full electric heating, including heated floors, with condominium amenities that fulfill
the needs of a wide range of family households.
◇ Overview of the Property(Residential indication) 3-6-3 Ishiwara, Sumida-ku, Tokyo
Location (Note 1)(Lot number) 3-26-1 Ishiwara, Sumida-ku, Tokyo
Proprietary
Type of ownership
Use Area (Note 2)
Light industrial districtLand
ownership
Area (Note 1)
742.06 m2 FAR/Building coverage ratio (Note 3)
300%/60%
Proprietary
Type of ownership
Use (Note 1)
Condominium
ownership
Building
Floor space (Note 1)
2,388.24 m2 Completion date (Note 1)
February 24, 2006
Structure type (Note 1) RC, 7-story building with flat roof
Number of leasable units by
33 units (2LDK:7 units, 3LDK: 26 units)
type
Property management
HASEKO LIVENET, Inc.
company (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇Property Lease Summary (Note 4)◇ Property Engineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
2,136.53 m2 Date of reportFebruary 13, 2015
2
Leased area
2,081.94 m
Priority repairs
Monthly rent (Note 7)
JPY 6,017 thousand Near-future repairs (1 year)
JPY 2,150 thousand
Lease and guarantee deposits
JPY 11,316 thousand Far-future repairs (2~12 years)
JPY 12,080 thousand
Occupancy ratio (unit base)
97.0% Probable maximum loss (PML)
6.4%
Occupancy ratio (area basis)
97.4%-(Note 8)Special Note: None
Collateral: None
Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

5(4) F-4-073 Gran Casa Ryogoku Nibankan
Category of anticipatedproperty for acquisition
Trust company

Real estate

Anticipated acquisition price

JPY 770,000 thousand

Trust agreement period◇ Unique Features of the Property
The property is a 7-story family-oriented condominium constructed from reinforced concrete, located 11 minutes from the Toei Oedo
subway line, Ryogoku station. It is also a 15 minute walk from the JR Sobu line and Tokyo Metro Hanzomon line, Kinshicho station,
providing excellent access to all parts of the city center. There are supermarkets and a variety of small retail stores nearby, making it very
convenient for daily life. The property was developed together with Gran Casa Ryogoku Ichibankan, and has full electric heating, including
heated floors, with condominium amenities that fulfill the needs of a wide range of family households.
◇ Overview of the Property(Residential indication) 3-7-6 Ishiwara, Sumida-ku, Tokyo
Location (Note 1)(Lot number) 3-24-1 Ishiwara, Sumida-ku, Tokyo
Proprietary
Type of ownership
Use Area (Note 2)
Light industrial districtLand
ownership2
FAR/Building coverage ratio (Note 3)
Area (Note 1)
398.79 m
300%/60%
Proprietary
Type of ownership
Use (Note 1)
Condominium
ownership
Building
Floor space (Note 1)
1,387.51 m2 Completion date (Note 1)
June 26, 2006
Structure type (Note 1)
RC, 7-story building with flat roof
Number of leasable units by
18 units (2LDK:12 units, 3LDK: 6 units)
type
Property management
HASEKO LIVENET, Inc.
company (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇ Property Lease Summary (Note 4)◇ Property Engineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
1,131.90 m2 Date of reportFebruary 13, 2015
Leased area
1,078.13 m2 Priority repairs
Monthly rent (Note 7)
JPY 3,234 thousand Near-future repairs (1 year)
JPY 1,590 thousand
Lease and guarantee deposits
JPY 6,950 thousand Far-future repairs (2~12 years)
JPY 12,680 thousand
Occupancy ratio (unit base)
94.4% Probable maximum loss (PML)
6.4%
Occupancy ratio (area basis)
95.2%(Note 8)Special Note: None
Collateral: None

(5) O-6-142 Serenite Honmachi Grande
Category of anticipatedproperty for acquisition

Trust beneficiary interests

Anticipated acquisition price

JPY 4,286,000 thousand

Mitsubishi UFJ Trust and Banking
From June 1, 2015
Trust agreement period (planned)
Corporation
To the end of June 2025
◇ Unique Features of the Property
The property is a newly-built (in February 2015) 15-story reinforced concrete condominium for singles, located a 3 minute walk from the
Osaka City Subway Chuo line, the Honmachi station. The Honmachi business district is close by, and there is easy access to the Umeda,
Shinsaibashi and Namba, which are dense commercial and business areas. With an automated entrance operated by contactless key, built-in
Wi-Fi in each room, reserved parking spaces on the shared areas of each floor to prevent theft, the property has a rarely-seen level ofamenities, and is sure to see demand primarily from working professionals.
◇ Overview of the Property(Residential indication) 1-4-22 Itachibori, Nishi-ku, Osaka-city, Osaka
Location (Note 1)(Lot number) 1-38 Itachibori, Nishi-ku, Osaka-city, Osaka
Proprietary
Type of ownership
Use Area (Note 2)
Industrial areaLand
ownership
Area (Note 1)
800%/80%
1,124.04 m2 FAR/Building coverage ratio (Note 3)
Trust company (planned)

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

6Type of ownership
Building

Floor space (Note 1)
Structure type (Note 1)

Proprietary
Use (Note 1)
ownership
9,266.74 m2 Completion date(Note 1)
RC, 15-story building with flat roof

Condominium, Shops, Offices
February 18, 2015

Number of leasable units by
268 units (1K: 133 units, 1DK: 44 units, 1LDK: 88 units, Retail: 2 units, Office: 1 unit)
type
Property management
HASEKO LIVENET, Inc.
company (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease(planned)
Pass through◇ Property Lease Summary (Note 4)◇ Property Engineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
7,591.92 m2 Date of report
April 7, 2015
Leased area
6,385.31 m2 Priority repairs
Monthly rent (Note 7)
JPY 20,824 thousand Near-future repairs (1 year)
JPY 10 thousand
Lease and guarantee deposits
JPY 24,103 thousand Far-future repairs (2~12 years)
JPY 28,210 thousand
Occupancy ratio (unit base)
87.7% Probable maximum loss (PML)
7.8%
Occupancy ratio (area basis)
84.1%(Note 8)Special Note: None
Collateral: None

(6) O-6-143 Gransys Tenmabashi
Category of anticipatedproperty for acquisition

Trust beneficiary interests

Anticipated acquisition price

JPY 4,050,000 thousand

Mitsubishi UFJ Trust and Banking
From September 21, 2007
Trust agreement period(planned)
Corporation
To the end of June 2025
◇ Unique Features of the Property
The property is a 15-story condominium with a reinforced concrete structure located approximately 1 minute from the Osaka City Subway
Tanimachi line, Tenmabashi station. There are government offices and business districts nearby and excellent access to major business areasand commercial centers such as Umeda and Yodoyabashi. The nearest station has a large-scale shopping facility as well, making this aconvenient location for daily life. Osaka Castle Park, a location famous for its cherry blossoms, and the Osaka mint bureau are also withinwalking distance.
◇ Overview of the Property(Residential indication) 1-2-12 Shimamachi, Chuo-ku, Osaka-city, Osaka
Location (Note 1)(Lot number) 1-21-2 Shimamachi, Chuo-ku, Osaka-city, Osaka
Proprietary
Type of ownership
Use Area (Note 2)
Industrial area
ownershipLand
2
FAR/Building coverage ratio (Note 3)
Area (Note 1)
1,256.91 m
800%/80%
Proprietary
Type of ownership
Use (Note 1)
Condominium, Shops
ownership
Building
2
Floor space (Note 1)
8,122.36 m
Completion date(Note 1)
May 30, 2007
Structure type (Note 1) RC, 15-story building with flat roof
Number of leasable units by
166 units (1K: 28 units, 1LDK: 136 units, Retail and Office: 2 units)
type
Property management
HASEKO LIVENET, Inc.
company (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇ Property Lease Summary (Note 4)◇ Property Engineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
6,749.31 m2 Date of report
January 6, 2015
Leased area
6,462.52 m2 Priority repairs
Monthly rent (Note 7)
JPY 22,566 thousand Near-future repairs (1 year)
JPY 880 thousand
Lease and guarantee deposits
JPY 15,332 thousand Far-future repairs (2~12 years)
JPY 56,250 thousand
Occupancy ratio (unit base)
95.2% Probable maximum loss (PML)
11.4%
Occupancy ratio (area basis)
95.8%
Trust company(Note 8)

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

7

Special Note: None
Collateral: None

(7) O-6-144 DayGran Tsurumi
Category of anticipatedproperty for acquisition
Trust company

Real estate

Anticipated acquisition price

JPY 1,030,000 thousand

Trust agreement period◇ Unique Features of the Property
The property is a 12-story condominium with a reinforced concrete structure, located a 4 minute walk from the Osaka City Subway
Nagahori-Tsurumi Ryokuichi line, Imafukutsurumi station. With the Flower Expo Memorial Park and a major commercial facility nearby,
this residential area is very convenient for daily life. Excellent access to the business and commercial areas in central Osaka city mean thathigh demand is expected mainly among working professionals.
◇ Overview of the Property(Residential indication) 4-3-19 Tsurumi, Tsurumi-ku, Osaka-city, Osaka
Location (Note 1)(Lot number) 4-20-2, 20-7, 20-11 Tsurumi, Tsurumi-ku, Osaka-city, Osaka
Proprietary
Quasi-residential area・category I
Type of ownership
Use Area (Note 2)
ownershipLand
residential area
Area (Note 1)
1,065.06 m2 FAR/Building coverage ratio (Note 3)
300%, 200%/80%, 80%
Proprietary
Condominium, Shops, Bicycle
Type of ownership
Use (Note 1)
ownershipparking, Parking lot
Building
Floor space (Note 1)
2,769.93 m2 Completion date (Note 1)
March 22, 2007
Structure type (Note 1) RC, 12-story building with flat roof
Number of leasable units by
79 units (1R: 55 units, 1K: 19 units, 1LDK: 3 units, Retail: 2 units)
type
Property management
HASEKO LIVENET, Inc.
company (planned)
Planned master lease party
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇ Property Lease Summary (Note 4)◇ Property Engineering Report Summary (Note 9)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
2,470.36 m2 Date of report
January 6, 2015
Leased area
2,380.34 m2 Priority repairs
Monthly rent (Note 7)
JPY 6,357 thousand Near-future repairs (1 year)
JPY 90 thousand
Lease and guarantee deposits
JPY 9,030 thousand Far-future repairs (2~12 years)
JPY 19,600 thousand
Occupancy ratio (unit base)
96.2% Probable maximum loss (PML)
11.9%
Occupancy ratio (area basis)
96.4%-(Note 8)Special Note: None
Collateral: None
(Note 1) Descriptions for “location (lot number)”, “area”, “floor space”, “type of structure”, “use”, and “completion date” are based on the information on
the registry. However, descriptions in “type of structure”, while based on information in the registry, use the following abbreviations: SRC: steel
reinforced concrete; RC: reinforced concrete; S: steel construction.
(Note 2) In the “Use Area” column, the class of Use Area under Article 8, Paragraph 1, Item 1 of the City Planning Act (Law No. 100, 1968, including
later amendments) is listed.
(Note 3) Figures for “FAR” in the “FAR/Building coverage ratio” column show, as indicated in Article 52 of the Building Standards Act (Law No. 201 of1950, including later amendments) (hereafter the “Building Standads Act”), the ratio of the sum of the floor space of the building to the land area,
and the upper limit as determined by city planning according to the use area. Figures for “building coverage ratio” show, as indicated in Article 53of the Building Standards Act, the ratio of the building area to the land area, and the upper limit as determined by city planning according to theuse area.
(Note 4) Figures and information in the “Property Lease Summary” column are as of April 10, 2015 for the anticipated properties.
(Note 5) Figures for the “Number of Tenants” column are “1” if a master lease agreement has been or will be concluded with a master lease company.
(Note 6) “Leasable area” shows the leasable area of the anticipated properties as of April 10, 2015, excluding area used by storage spaces, parking spaces,
custodian’s areas, signboards, vending machines, antennas and other spaces leased to the lessee in addition to their main use, or other areas leased
for the maintenance and supervision of the relevant property (including loan for use). Furthermore, leasable area is calculated using the center lineof the wall, and includes the meter boxes and pipe spaces allotted to each unit.
(Note 7) Figures for “monthly rent” show the monthly rent income (rent, public usage fee, parking fees, etc.) for the anticipated properties based on figuresand data as of April 10, 2015 and rounded to the thousands.
(Note 8) Figures in “occupancy ratio (area base)” show the ratio between leased area and leasable area as a percentage rounded to the second decimal.
(Note 9) The figures in the “Property Engineering Report Summary” column are rounded down to the thousands, and the ratios are rounded to the firstdecimal. Furthermore, earthquake PML data was acquired from Tokyo Marine & Nichido Fire Insurance in December 2014 for Gransys
Tenmabashi and DayGran Tsurumi, in January 2015 for Gran Casa ShinKoiwa, Gran Casa Ryogoku Ichibankan and Gran Casa Ryogoku
Nibankan, and in March 2015 for Gran Casa Kita3jo and Serenite Honmachi Grande.
Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

8

(Note 10) Gran Casa Kita3jo is planned for block rental by G.K. Japan Rental Housing to another company after the Acquisition by the Investment
Corporation.
(Note 11) After the Investment Corporation acquire the trust beneficiary interests of Gran Casa ShinKoiwa, Gran Casa Ryogoku Ichibankan, Gran Casa
Ryogoku Nibankan and DayGran Tsurumi, the Investment Corporation will receive the real property under the trust on the date of the Acquisition.
As a result, the category of properties will be real estate.

IV. Due Diligence Information
Property Number
and Property Name

Building Promoter

Architect

Building Contractor

Verification Agency

Inspection Agency

F-1-070
Gran Casa
Kita3jo

Zesty Co., Ltd.

Archproject Co.,Ltd.

Muramoto
Corporation

Sapporo Kogyo
Kensa, Co., Ltd.

(Note)

Takara Leben Co.,Ltd.

ST SEKKEI Co.,Ltd.

ItogumiConstruction Co.,Ltd.

eHomes Co., Ltd.

ERI Solution Co.,Ltd.

Secom HomelifeCo., Ltd.

Take Dot-com Co.,Ltd.

Tada Corporation,Co., Ltd.

eHomes Co., Ltd.

ERI Solution Co.,Ltd.

Secom HomelifeCo., Ltd.

Take Dot-com Co.,Ltd.

Tada Corporation,Co., Ltd.

eHomes Co., Ltd.

ERI Solution Co.,
Ltd.

O-6-142
Serenite
Honmachi Grande

Sunada Property
Co., Ltd.

Sunada Contruction
Co., Ltd.

Sunada Contruction
Co., Ltd.

Osaka Building
Disaster Prevention
Center(Note)

O-6-143
GransysTenmabashi

Daiwa System Co.,Ltd.

FKO Archi Design,
Co., Ltd.

Tobishima
Corporation

General Building
Research Companyof JapanERI Solution Co.,
Ltd.

O-6-144
DayGran Tsurumi

Daygran, Inc.,

Alpha City
Planning, Co., Ltd.

Sunada Contruction
Co., Ltd.

Tokyo Bldh Tech
Center, Co., Ltd.

ERI Solution Co.,
Ltd.

F-4-071Gran Casa
ShinKoiwa
F-4-072
Gran Casa
Ryogoku
Ichibankan
F-4-073Gran Casa
Ryogoku Nibankan

The Investment Corporation, in addition to the general property due diligence process, has requested supplementary
investigations regarding the structural calculation sheets by a third-party. That third party has reviewed the blueprints,
structural diagrams and structural calculation sheets to determine whether they meet the Building Standards Act. As a result,no such violations were found.
(Note) Gran Casa Kita3jo and Serenite Honmachi Grande have received approval notices of their structural calculation suitability from an approved
structural calculation review agency under the amended Building Standards Act (June 2007, implementation), so no additional investigation by athird-party has been performed.

V. Profile of the Counterparty(1) F-1-070 Gran Casa Kita3jo, O-6-142 Serenite Honmachi Grande
Each of the sellers of the anticipated properties is a domestic industrial company, but we are not disclosing further details,
as the sellers’ consents have not been obtained. There are no capital, personnel, or business relationships required to note
between the Investment Corporation or the Asset Manager and the sellers, nor are the sellers affiliated parties of either theInvestment Corporation or the Asset Manager.
Furthermore, each of the sellers is not classified as an interested party, etc. under the Order for Enforcement of the Law
Concerning Investment Trusts and Investment Corporations, nor is it defined as “interested parties, etc.” under the internal
rules on dealing with interested parties of the Asset Manager.
(2) F-4-071 Gran Casa ShinKoiwa, F-4-072 Gran Casa Ryogoku Ichibankan, F-4-073 Gran Casa Ryogoku Nibankan
Each of the sellers of the anticipated properties is a domestic limited liability company (Godo Kaisha), but we are notdisclosing further details, as the sellers’ consent has not been obtained. There are no capital, personnel, or businessNote: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

9relationships required to note between the Investment Corporation or the Asset Manager and the sellers, nor are the seller
affiliated parties of either the Investment Corporation or the Asset Manager.
Furthermore, each of the sellers is not classified as an interested party, etc. under the Order for Enforcement of the Law
Concerning Investment Trusts and Investment Corporations, nor is it defined as “interested parties, etc.” under the internal
rules on dealing with interested parties of the Asset Manager.
(3) O-6-143 Gransys Tenmabashi, O-6-144 DayGran Tsurumi
Company name
G.K. JFTHead office location
2-9-1 Nihonbashi, Chuo-ku, Tokyo
Representative employee: general incorporated association JSL
Representative
Operational executor: Shingo Kaminaga
A) Real estatetransactions, ownership, leasing, management and brokerage
Main businessB) Ownership and sales of trust beneficiary interests
C) All other duties auxiliary and related to those above
Paid-in capital
JPY 300,000
Date of establishment
February 17, 2014
Net assets
JPY 294,200 (as of December 31, 2014)
Total assets- (Note)There is no personnel relationship between the Investment Corporation or AssetManager and the seller.
As of the immediately previous fiscal period or fiscal year, the Investment Corporation
and Asset Manager have not made a transaction with the seller to acquire or transfer theasset, but the seller operates a silent partnership in which the Investment Corporation has
invested JPY 230 million (15% of the total equity interests), and the Investment
Relationship between the
Corporation has exercised the preemption right granted to the Asset Manager for thisInvestment Corporationacquisition. Please refer to the press release dated as of March 26, 2014, “Noticeor Asset Manager andConcerning Acquisition of Asset (Silent Partnership Equity Interest)” for details of thethis company
silent partnership equity interest and the preemption right.
This company is not an affiliated party of either the Investment Corporation or the AssetManager. Furthermore, the seller is not classified as an interested party, etc. under theOrder for Enforcement of the Law Concerning Investment Trusts and Investment
Corporations, nor is it defined as “interested parties, etc.” under the internal rules on
dealing with interested parties of the Asset Manager.
(Note) We are not disclosing further details as the seller’s consent has not been obtained.

VI. Profile of the Property Seller
Each of the sellers of the anticipated properties is not classified as a special related party of the Investment Corporation and
the Asset Manager.

VII. Profile of Brokerage(1) F-1-070 Gran CasaKita3jo
The broker is a domestic real estate transaction company. However, we are not disclosing further details, including thename of the company, as the broker’s consent has not been obtained. There are no capital, personnel, or business
relationships required to note between the Investment Corporation or the Asset Manager and the broker. Furthermore, thebroker is not classified as an interested party, etc. under the Order for Enforcement of the Law Concerning Investment
Trusts and Investment Corporations, nor is it defined as “interested parties, etc.” under the internal rules on dealing withinterested parties of the Asset Manager.

(2) F-4-071 Gran CasaShinKoiwa, F-4-072 Gran Casa Ryogoku Ichibankan, F-4-073 Gran Casa Ryogoku Nibankan,
O-6-142 Serenite Honmachi Grande, O-6-143 Gransys Tenmabashi, O-6-144 DayGran Tsurumi
Not applicable.

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

10

VIII. Funds for Acquisition
The Acquisition is planned to use cash procured through an issuance of new investment units and new loans but using ourown funds if they are insufficient. Please refer to the press releases dated as of today, “Notice Concerning Issuance of New
Investment Units and Secondary Offering” for details of funds by the issuance of new investment units, and “NoticeConcerning Borrowing of Funds” for details of the new loans.

IX．Settlement Method
Lump-sum settlement at the time of acquisition (scheduled to be June 1, 2015).

X．Acquisition Schedule
Property Number andProperty Name

Date of Decision of Acquisition
Date of Conclusion of Purchase
Agreement

Payment Date (planned)
Delivery Date (planned)

May 8, 2015

June 1, 2015

F-1-070
Gran Casa Kita3jo
F-4-071Gran Casa ShinKoiwa
F-4-072
Gran Casa Ryogoku Ichibankan
F-4-073Gran Casa Ryogoku Nibankan
O-6-142
Serenite Honmachi Grande
O-6-143
Gransys Tenmabashi
O-6-144
DayGran Tsurumi

XI．Forecasts
Please refer to the press release dated as of today, “Notice Concerning Forecasts of Operating Results and Distributions for
the Fiscal Periods Ending September 30, 2015 (19th Fiscal Period) and March 31, 2016 (20th Fiscal Period)” for details of
operating forecasts of fiscal periods ending in September 2015 (April 1, 2015 to September 30, 2015) and March 2016
(October 1, 2015 to March 31, 2016).

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

11

XII．Property Appraisal Summary
Property Name

F-1-070
Gran Casa Kita3jo

Appraisal Value

JPY 1,290,000,000

Appraiser

Japan Real Estate Institute

Date of Appraisal

March 20, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)

(a)

(b)

Overview, etc.

JPY

1,290,000,000-

JPY

1,300,000,000-

JPY

95,735,000

Rental revenues includingcommon service fees

JPY

92,771,000

Parking fees

JPY

4,649,000

Other revenues

JPY

1,615,000

Losses from vacancies

JPY

3,300,000

Bad debt losses

JPY

0

JPY

22,865,000(2)Total Operating Expenses

Assessed using average rent based on the lease agreement withthe last resident, standards for rent and common service
expenses based on an assumed new contract for the property;
and price standards for collectible rent, etc. over the mid- andlong-term based on the reputation of the current tenants.
Assessed using the average rent based on the lease agreementwith the last resident, standards, etc. for usage fees based onlease of a new parking space, and price standards for stable,
collectible rent over the mid- and long-term.
Revenue from security deposits was assessed based on numberof months received from individual residents and average
turnover rate. Fees were also included for constructing electricpoles on the premises.
Assessed for each use according to stable mid- to long-term
occupancy rates based on operational status and demand trends
for similar properties in position for equivalent competition,
within similar regions and identical ranges of demand, pastoccupancy situations and future trends.
Judged unnecessary given situation of lessee.

-

Operation costs

JPY

3,193,000

Utilities

JPY

3,000,000

Repairs and maintenance expense

JPY2,847,000

Property management fees

JPY

2,448,000

Tenant promotion fees, etc.

JPY

2,210,000

Taxes and public dues

JPY

8,764,000

Assessed in consideration of the unique attributes of therelevant property, based on the property management terms
and conditions, which is the written proposal for property
management and other duties, and on the maintenance fees for
similar properties.
Assessed based on water, light and heating expenses for
similar properties, and in consideration of the unique attributesof the relevant property.
Assessed based on standard restoration costs caused by changeof residents in a single room, share of burden on the lessor,
and average period for burden of expense and degree ofrestoration cost, as well as consideration of performance inpast fiscal years, repair and average annual renewal fees on
engineering reports.
Assessed using the reward rate, etc. based on property
management terms and conditions, reward rate for similar
properties, and consideration of the unique attributes of therelevant property.
Assessed based on average annual resident turnover rate using
clerical fees for attracting new residents and signing contracts,
and contract terms and terms of lease, etc. for nearby similar
properties, as well as consideration of rental agency fees
including advertising fees based on one month of new rent
income (including common usage fee) and results from similar
properties.
Based on calculation of standard taxable value (does notinclude relief measures for new residences).

Property insurance

JPY

306,000

Assessed based on insurance estimates and insurance rates for

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

12similar buildings.

Other expenses(3) Net Operating Income (NOI):(1)-(2)

JPY

97,000JPY

72,870,000(4) Lump-sum Investment ReturnJPY

141,000(5) Capital Expenditure

JPY

1,493,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY71,518,000(7) Capitalization Rate

(%)

5.5

Value Indicated by DCF Method

JPY

1,280,000,000

Discount Rate

(%)

5.3

Terminal Capitalization Rate

(%)

5.7

JPY

1,220,000,000

Value indicated by cost approach
Land Ratio

(%)

18.0

Property Ratio

(%)

82.0

Other items of note by appraiser

Assessed using resident’s association membership fee.
Assessed using asset gain, based on current lease terms andcondition, mid- and long-term stable predictions of the numberof months of rent in deposit for new contract, multiplied by theoccupancy rate and then the operating yield to determine alump sum.
Assessed using the capital expenditure for similar properties asa standard, calculated assuming that the renewal fees
necessary to maintain building function, although actuallyirregular, will accumulate on an average amount every period,
the building age, and the average value for repair and renewal
fees on the engineering report.
Assessed based on standard yield for each region,
geographical conditions for the relevant property, adjustments
to the spread based on the building conditions and otherconditions, future uncertainty and transaction yield for similar
properties.
Assessed based on the investment yield, etc. for similar
properties, as well as consideration of the uniquecharacteristics of this property.
Assessed based on overall consideration of the investment
yield, etc. for similar properties, as well as future trends foryield, investment risks of the property, general predictions of
future growth rate and trends for real estate prices and rent.
Assessed through due consideration of the balance between theprice obtained by applying the sales comparison approach to
standard prices for standard use of neighboring regions, andthe publicly declared price as a standard.
Assessed using the cost method, considering the construction
costs and replacement costs on the engineering report forsimilar properties, first looking at the replacement cost forwhole replacement, and next applying the current cost ratio tothe replacement cost based on the present state of the building
and trends in local characteristics.

None

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

13

Property Name

F-4-071Gran Casa ShinKoiwa

Appraisal Value

JPY 1,530,000,00

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Date of Appraisal

January 6, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)Rental revenues includingcommon service fees(a) Parking fees

Overview, etc.

JPY

1,530,000,000-

JPY

1,560,000,000-

JPY

85,730,566-

JPY

82,402,560

JPY

5,076,000

Other revenues

JPY

2,236,083

Losses from vacancies

JPY

3,984,077

Bad debt losses

JPY

0

JPY

14,120,183

Operation costs

JPY

2,208,000

Utilities

JPY

985,248

Repairs and maintenance expense

JPY1,840,012

Property management fees

JPY

1,502,901

Tenant promotion fees, etc.

JPY

1,967,001

Taxes and public dues

JPY

4,728,900

Nonlife insurance

JPY

198,860

JPY

689,261

JPY

71,610,383(b)(2) Total Operating Expenses

Other expenses(3) Net Operating Income (NOI):(1)-(2)(4) Lump-sum Investment ReturnJPY

256,387(5) Capital Expenditure

JPY

1,758,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY70,108,770(7) Capitalization Rate

(%)

4.5

Value Indicated by DCF Method

JPY

1,510,000,000

Discount Rate

(%)

4.3

Based on rent level in current lease agreement, new andcontracted rent levels of similar properties within the same
demand/supply zone and their trends.
Based on security deposits and renewal fees, which arecalculated based on lease history of turnover and vacancy
rates.
Based on actual vacancy rate results of the subject property
and typical vacancy rates of similar properties.
Not indicated due to being secured by lease deposits, etc.
Based on the contract amount of planned property
management.
Based on utilities levels of similar properties and actual
amounts in past fiscal years.
Calculated based on the 15-year average repairs andmaintenance expense of ER and the standards of repairs andmaintenance expenses for the property
Based on the contract amount of planned property
management.
Based on figures after considering tenant promotion fees, etc.
assessed based on levels in similar properties while referring
to actual amounts in past fiscal years for the space to be filledcalculated by applying the assumed tenant turnover rate.
By referring to the amount equivalent to actual amount.
Estimated amount by referencing levels of nonlife insurance ofsimilar properties.
After assessing investment yield with comprehensive
consideration from the viewpoints of both management andprocurement aspects.
After verifying the average renewal expense over 15 years
stated in ER with the renewal expense levels of similar
properties.
Assessed by referring to capitalization rates, etc. in appraisal
reports for J-REIT properties, etc. within the same
demand/supply zone, after adjusting spread due to building
conditions of the subject property and other conditions while
using yields of similar use properties located in the areas withlowest risks as a standard.
Assessed by comprehensively considering the future trends ofinvestors yields, risks of the subject property as an economic
growth rate, trends for real estate prices, etc. with reference toNote: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

14cases with similar transaction yields.

Terminal Capitalization Rate

(%)

4.7

JPY

849,000,000

Land Ratio

(%)

39.8

Property Ratio

(%)

60.2

Value indicated by cost approach

Other items of note by appraiser

Assessed by comprehensively considering future trends ofinvestor yields, risks for investors in the relevant property,
general outlook for future economic growth and real estate
price trends, with reference to similar transactions.
－Price of vacant land of the subject site was calculated with theposted land price as a criterion while considering thecomparable price calculated by transaction comparison
approach as a standard.
Assessed after verifying the rebuilding price of the building
stated in ER with rebuilding prices of similar buildings.

None

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

15

Property Name

F-4-072
Gran Casa Ryogoku Ichibankan

Appraisal Value

JPY 1,430,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Date of Appraisal

January 6, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)Overview, etc.

JPY

1,430,000,000-

JPY

1,460,000,000-

JPY

79,778,298-

Rental revenues includingcommon service fees

JPY

77,145,540

Parking fees

JPY

2,160,000

Other revenues

JPY

3,003,124Losses from vacancies

JPY

2,530,366

JPY
JPY

0
12,797,786

Operation costs

JPY

2,100,000

Utilities

JPY

1,007,932

Repairs and maintenance expense

JPY

1,592,090

Property management fees

JPY

1,151,628

Tenant promotion fees, etc.

JPY

1,825,370

Taxes and public dues

JPY

4,278,300

Nonlife insurance

JPY

158,730

Other expenses(3) Net Operating Income (NOI):(1)-(2)

JPY

683,736-

JPY

66,980,512-(4) Lump-sum Investment ReturnJPY

240,143(5) Capital Expenditure

JPY

1,520,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY65,700,655

(a)

(b)

Bad debt losses(2) Total Operating Expenses(7) Capitalization Rate

(%)

4.5

Value Indicated by DCF Method

JPY

1,420,000,000

Terminal Capitalization Rate

(%)

4.3

Based on rent level in current lease agreement, new andcontracted rent levels of similar properties within the same
demand/supply zone and their trends
Based on security deposits and renewal fees, which arecalculated based on lease history of turnover and vacancy rates
Based on actual vacancy rate results of the subject property
and typical vacancy rates of similar properties
Not indicated due to being secured by lease deposits, etc.
－
Based on the contract amount of planned property
management
Based on utilities levels of similar properties and actual
amounts in past fiscal years
Calculated based on the 15-year average repairs andmaintenance expense of ER and the standards of repairs andmaintenance expenses for the property
Based on the contract amount of planned property
management
Based on figures after considering tenant promotion fees, etc.
assessed based on levels in similar properties while referring
to actual amounts in past fiscal years for the space to be filledcalculated by applying the assumed tenant turnover rate
Assessed by referring to the amount equivalent to actual
amountEstimated amount by referencing levels of nonlife insurance ofsimilar properties

After assessing investment yield with comprehensive
consideration from the viewpoints of both management andprocurement aspects
After verifying the average renewal expense over 15 years
stated in ER with the renewal expense levels of similar
properties

Assessed by referring to capitalization rates, etc. in appraisal
reports for J-REIT properties, etc. within the same
demand/supply zone, after adjusting spread due to building
conditions of the subject property and other conditions while
using yields of similar-use properties in minimum risk areas.

Assessed by comprehensively considering the future trends ofinvestor yields, risks of the subject property as an economic
growth rate, trends for real estate prices, etc. with reference toNote: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

16transaction yields for similar cases.

Terminal Capitalization Rate
Value indicated by cost approach

(%)

4.7

JPY

1,010,000,000

Land Ratio

(%)

56.4

Property Ratio

(%)

43.6

Other items of note by appraiser

Assessed by comprehensively considering future trends ofinvestor yields, risks for investors in the relevant property,
general outlook for future economic growth and real estate
price trends, with similar transactions as case references.

Price of vacant land of the subject site was calculated with theposted land price as a criterion while considering thecomparable price calculated by transaction comparison
approach as a standard.
Assessed after verifying the rebuilding price of building statedin ER with rebuilding prices of similar buildings.

None

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

17

Property Name

F-4-073Gran Casa Ryogoku Nibankan

Appraisal ValueJPY 785,000,000

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Date of Appraisal

January 6, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)Rental revenues includingcommon service fees(a) Parking fees

Overview, etc.

JPY

785,000,000-

JPY

804,000,000-

JPY

44,799,562-

JPY

41,897,520

JPY

1,476,000

Other revenues

JPY

2,826,968

Losses from vacancies

JPY

1,400,926

Bad debt losses

JPY

0

JPY

7,939,835

Operation costs

JPY

1,800,000

Utilities

JPY

718,830

Repairs and maintenance expense

JPY753,437

Property management fees

JPY

647,589

Tenant promotion fees, etc.

JPY

998,610

Taxes and public dues

JPY

2,511,000

Nonlife insurance

JPY

94,630JPY

415,739JPY

36,859,727(b)(2)Total Operating Expenses

Other expenses(3) Net Operating Income (NOI):(1)-(2)(4) Lump-sum Investment ReturnJPY

130,988(5) Capital Expenditure

JPY

829,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY

36,161,715(7) Capitalization Rate

(%)

4.5

Value Indicated by DCF Method

JPY

777,000,000

Terminal Capitalization Rate

(%)

4.3

Based on rent level in current lease agreement, new andcontracted rent levels of similar properties within the same
demand/supply zone and their trends
Calculated based on security deposits, renewal charges andother revenues, with turnover rates and vacancy rates ofexample leases as reference
Based on actual vacancy rate results of the subject property
and typical vacancy rates of similar properties
Not indicated due to being secured by lease deposits, etc.

Based on the contract amount of planned property
management
Based on utilities levels of similar properties and actual
amounts in past fiscal years
Calculated based on the 15-year average repairs andmaintenance expense of ER and the standards of repairs andmaintenance expenses for the property
Based on the contract amount of planned property
management
Based on figures after considering tenant promotion fees, etc.
assessed based on levels in similar properties while referring
to actual amounts in past fiscal years for the space to be filledcalculated by applying the assumed tenant turnover rate
By referring to the amount equivalent to actual amount
Estimated amount by referencing levels of nonlife insurance ofsimilar properties

After assessing investment yield with comprehensive
consideration from the viewpoints of both management andprocurement aspects
After verifying the average renewal expense over 15 years
stated in ER with the renewal expense levels of similar
properties

Assessed by referring to capitalization rates, etc. in appraisal
reports for J-REIT properties, etc. within the same
demand/supply zone, after adjusting spread due to building
conditions of the subject property and other conditions while
using yields of similar-use properties in minimum risk areas.

Assessed by comprehensively considering the future trends ofinvestors yields, risks of the subject property as an economic
growth rate, trends for real estate prices, etc. with reference totransaction yields for similar cases.

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

18Terminal Capitalization Rate
Value indicated by cost approach

(%)

4.7

JPY

540,000,000

Land Ratio

(%)

55.7

Property Ratio

(%)

44.3

Other items of note by appraiser

Assessed by comprehensively considering future trends ofinvestor yields, risks for investors in the relevant property,
general outlook for future economic growth and real estate
price trends, with similar transactions as case references.

Price of vacant land of the subject site was calculated with theposted land price as a criterion while considering thecomparable price calculated by transaction comparison
approach as a standard.
Assessed after verifying the rebuilding price of building statedin ER with rebuilding prices of similar buildings.

None

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

19

Property Name

O-6-142
Serenite Honmachi GrandeAppraisal Value

JPY 4,530,000,000

Appraiser

Japan Real Estate Institute

Date of Appraisal

March 20, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)

(a)

(b)

Overview, etc.

JPY

4,530,000,000-

JPY

4,590,000,000-

JPY

291,563,000

Rental revenues includingcommon service fees

JPY

293,730,000

Parking fees

JPY

5,773,000

Other revenues

JPY

5,537,000

Losses from vacancies

JPY

13,477,000

Bad debt losses

JPY

0

JPY

60,466,000(2)Total Operating Expenses
Operation costs

JPY

5,300,000

Utilities

JPY

3,000,000

Repairs and maintenance expense

JPY8,486,000

Property management fees

JPY

6,584,000

Tenant promotion fees, etc.

JPY

13,918,000

Taxes and public dues

JPY

19,850,000

Nonlife insurance

JPY

528,000

Assessed using average rent based on the lease agreement withthe last resident, standards for rent and common service
expenses based on an assumed new contract for the property,
and price standards for collectible rent, etc. over the mid- andlong-term based on the reputation of the current tenants
Assessed using the average rent based on the lease agreementwith the last resident, standards, etc. for usage fees based onlease of a new parking space, and price standards for stable,
collectible rent over the mid- and long-term.
Revenue from security deposits was assessed based on numberof months received from individual residents and average
turnover rate. Fees for constructing electric poles on thepremise also included.
Assessed for each use according to stable mid- to long-term
occupancy rates based on operational status and demand trends
for similar properties in position for equivalent competition,
within similar regions and identical ranges of demand, pastoccupancy situations and future trends
Judged unnecessary given situation of lessee

Assessed in consideration of the unique attributes of therelevant property, based on the property management terms
and conditions, which is the written proposal for property
management and other duties, and on the maintenance fees for
similar properties
Assessed based on water, light and heating expenses for
similar properties, and in consideration of the unique attributesof the relevant property
Assessed using restoration costs based on standard restoration
costs caused by change of residents in a single room, share ofburden on the lessor, and average period for burden of expenseand degree of restoration cost, as well as consideration of
performance in past fiscal years, repair and average annual
renewal fees on engineering reports.
Assessed using the reward rate, etc. based on property
management terms and conditions, reward rate for similar
properties, and consideration of the unique attributes of therelevant property
Assessed based on average annual resident turnover rate using
clerical fees for attracting new residents and signing contracts,
and contract terms and terms of lease, etc. for nearby similar
properties, as well as consideration of rental agency fees
including advertising fees based on one month of new rent
income (including common usage fee) and results from similar
properties
Based on calculation of standard taxable value (does notinclude relief measures for new residences)
Assessed based on insurance estimates and insurance rates for
similar buildings

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

20

Other expenses(3) Net Operating Income (NOI):(1)-(2)JPY

2,800,000

JPY

231,097,000(4) Lump-sum Investment ReturnJPY

560,000(5) Capital Expenditure

JPY

2,360,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY

229,297,000(7) Capitalization Rate

(%)

5.0

Value Indicated by DCF Method

JPY

4,470,000,000

Terminal Capitalization Rate

(%)

4.8

Terminal Capitalization Rate

(%)

5.2

JPY

3,990,000,000

Value indicated by cost approach
Land Ratio

(%)

36.8

Property Ratio

(%)

63.2

Other items of note by appraiser

Assessed based on electricity security control fees, internet
connection and service fees and resident’s association
membership fees

Assessed using asset gain, based on current lease terms andcondition, mid- and long-term stable predictions of the numberof months of rent in deposit for new contract, multiplied by theoccupancy rate and then the operating yield to determine alump sum
Assessed using the capital expenditure for similar properties asa standard, calculated assuming that the renewal fees
necessary to maintain building function, although actuallyirregular, will accumulate on an average amount every period,
the building age, and the average value for repair and renewal
fees on the engineering report

Assessed based on standard yield for each region,
geographical conditions for the relevant property, adjustments
to the spread based on the building conditions and otherconditions, future uncertainty and transaction yield for similar
properties

Assessed based on the investment yield, etc. for similar
properties, as well as consideration of the uniquecharacteristics of the relevant property
Assessed based on overall consideration of the investment
yield, etc. for similar properties, as well as future trends foryield, investment risks of the property, general predictions of
future growth rate and trends for real estate prices and rent

Assessed through due consideration of the balance between theprice obtained by applying the sales comparison approach to
standard prices for standard use of neighboring regions, andthe publicly declared price as a standard
Assessed using the cost method, considering the construction
costs and replacement costs on the engineering report forsimilar properties, first looking at the replacement cost forwhole replacement, and next applying the current cost ratio tothe replacement cost based on the present state of the building
and trends in local characteristics

None

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

21

Property Name

O-6-143
Gransys Tenmabashi

Appraisal Value

JPY 4,320,000,000

Appraiser

Japan Real Estate Institute

Date of Appraisal

January 1, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)Overview, etc.

JPY

4,320,000,000-

JPY

4,370,000,000-

JPY

284,953,000

Rental revenues includingcommon service fees

JPY

264,811,000

Parking fees

JPY

19,418,000

Other revenues

JPY

14,503,000

Losses from vacancies

JPY

13,779,000

Bad debt losses

JPY

0Assessed using average rent based on the lease agreement withthe last resident, standards for rent and common service
expenses based on an assumed new contract for the property,
and price standards for collectible rent, etc. over the mid- andlong-term based on the reputation of the current tenants
Assessed using the average rent based on the lease agreementwith the last resident, standards, etc. for usage fees based onlease of a new parking space, and price standards for stable,
collectible rent over the mid- and long-term
Revenue from security deposits was assessed based on numberof months received from individual residents and average
turnover rate. Fees for constructing electric poles on thepremise also included
Assessed for each use according to stable mid- to long-term
occupancy rates based on operational status and demand trends
for similar properties in position for equivalent competition,
within similar regions and identical ranges of demand, pastoccupancy situations and future trends.
Judged unnecessary given situation of lessee

JPY

55,433,000

Operation costs

JPY

8,152,000

Utilities

JPY

7,800,000

Repairs and maintenance expense

JPY4,660,000

Property management fees

JPY

6,229,000

Tenant promotion fees, etc.

JPY

14,276,000

Taxes and public dues

JPY

13,676,000

Nonlife insurance

JPY

590,000

Other expenses

JPY

50,000(a)(b)(2)Total Operating Expenses

Assessed in consideration of the unique attributes of therelevant property, based on the property management terms
and conditions, which is the written proposal for property
management and other duties, and on the maintenance fees for
similar properties
Assessed based on water, light and heating expenses for
similar properties, and in consideration of the unique attributesof the relevant property
Assessed using restoration costs based on standard restoration
costs caused by change of residents in a single room, share ofburden on the lessor, and average period for burden of expenseand degree of restoration cost, as well as consideration of
performance in past fiscal years, repair and average annual
renewal fees on engineering reports.
Assessed using the reward rate, etc. based on property
management terms and conditions, reward rate for similar
properties, and consideration of the unique attributes of therelevant property
Assessed based on average annual resident turnover rate using
clerical fees for attracting new residents and signing contracts,
and contract terms and terms of lease, etc. for nearby similar
properties, as well as consideration of rental agency fees
including advertising fees based on one month of new rent
income (including common usage fee) and results from similar
properties
Based on calculation of standard taxable value (does notinclude relief measures for new residences)
Assessed based on insurance estimates and insurance rates for
similar buildings-

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

22(3) Net Operating Income (NOI):(1)-(2)

JPY

229,520,000(4) Lump-sum Investment ReturnJPY

521,000(5) Capital Expenditure

JPY

2,738,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY

227,303,000(7) Capitalization Rate

(%)

5.2

Value Indicated by DCF Method

JPY

4,260,000,000

Discount Rate

(%)

5.0

Terminal Capitalization Rate

(%)

5.4

JPY

2,880,000,000

Value indicated by cost approach
Land Ratio

(%)

41.3

Property Ratio

(%)

58.7

Other items of note by appraiser

Assessed using asset gain, based on current lease terms andcondition, mid- and long-term stable predictions of the numberof months of rent in deposit for new contract, multiplied by theoccupancy rate and then the operating yield to determine alump sum
Assessed using the capital expenditure for similar properties asa standard, calculated assuming that the renewal fees
necessary to maintain building function, although actuallyirregular, will accumulate on an average amount every period,
the building age, and the average value for repair and renewal
fees on the engineering report
Assessed based on standard yield for each region,
geographical conditions for the relevant property, adjustments
to the spread based on the building conditions and otherconditions, future uncertainty and transaction yield for similar
properties
Assessed based on the investment yield, etc. for similar
properties, as well as consideration of the uniquecharacteristics of this property
Assessed based on overall consideration of the investment
yield, etc. for similar properties, as well as future trends foryield, investment risks of the property, general predictions of
future growth rate and trends for real estate prices and rent
Assessed by applying the sales comparison approach to actual
transaction prices
Calculated through assessment of the replacement costs for theproperty given its unique characteristics, then application ofdepreciation adjustment and consideration of the marketabilityof the property and premises as a whole.

None

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

23

Property Name

O-6-144
DayGran Tsurumi

Appraisal Value

JPY 1,120,000,000

Appraiser

Japan Real Estate Institute

Date of Appraisal

January 1, 2015

Item

Details

Value indicated by income approach
Value indicated by the Direct
Capitalization Method(1) Total Operating Income: (a)-(b)Overview, etc.

JPY

1,120,000,000-

JPY

1,130,000,000-

JPY

79,728,000

Rental revenues includingcommon service fees

JPY

74,507,000

Parking fees

JPY

2,916,000

Other revenues

JPY

5,737,000

Losses from vacancies

JPY

3,432,000

Bad debt losses

JPY

0

JPY

16,770,000

Operation costs

JPY

2,030,000

Utilities

JPY

2,900,000

Repairs and maintenance expense

JPY

1,748,000

Property management fees

JPY

1,897,000

Tenant promotion fees, etc.

JPY

2,599,000

Taxes and public dues

JPY

5,301,000

Nonlife insurance

JPY

198,000

Assessed based on standard taxed amounts for fiscal year 2014
Assessed based on insurance estimates and insurance rates for
similar properties

Other expenses

JPY

97,000

-

(a)

(b)

(2)Total Operating Expenses

Assessed using average rent based on the lease agreement withthe last resident, standards for rent and common service
expenses based on an assumed new contract for the property,
and price standards for collectible rent, etc. over the mid- andlong-term based on the reputation of the current tenants
Assessed using the average rent based on the lease agreementwith the last resident, standards, etc. for usage fees based onlease of a new parking space, and price standards for stable,
collectible rent over the mid- and long-term.
Revenue from security deposits was assessed based on numberof months received from individual residents and average
turnover rate. Fees for constructing electric poles on thepremise also included.
Assessed for each use according to stable mid- to long-term
occupancy rates based on operational status and demand trends
for similar properties in position for equivalent competition,
within similar regions and identical ranges of demand, pastoccupancy situations and future trends
Judged unnecessary given situation of lessee
Assessed in consideration of the unique attributes of therelevant property, based on the property management terms
and conditions, which is the written proposal for property
management and other duties, and on the maintenance fees for
similar properties
Assessed based on the utilities amounts at similar properties
and the unique characteristics of the relevant property, withperformance from past years as reference
Assessed using restoration costs based on standard restoration
costs caused by change of residents in a single room, share ofburden on the lessor, and average period for burden of expenseand degree of restoration cost, as well as consideration of
performance in past fiscal years, repair and average annual
renewal fees on engineering reports.
Assessed using the reward rate, etc. based on property
management terms and conditions, reward rate for similar
properties, and consideration of the unique attributes of therelevant property
Assessed based on average annual resident turnover rate using
clerical fees for attracting new residents and signing contracts,
and contract terms and terms of lease, etc. for nearby similar
properties, as well as consideration of rental agency fees
including advertising fees based on one month of new rent
income (including common usage fee) and results from similar
properties

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

24(3) Net Operating Income (NOI):(1)-(2)

62,958,000(4) Lump-sum Investment Return

JPY

176,000(5) Capital Expenditure

JPY

923,000(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY

62,211,000(7) Capitalization Rate

(%)

5.5

Value Indicated by DCF Method

JPY

1,110,000,000

Discount Rate

(%)

5.3

Terminal Capitalization Rate

(%)

5.7

JPY

962,000,000

Value indicated by cost approach
Land Ratio

(%)

41.5

Property Ratio

(%)

58.5

Other items of note by appraiser

*URL:

JPY

Assessed using asset gain, based on current lease terms andcondition, mid- and long-term stable predictions of the numberof months of rent in deposit for new contract, multiplied by theoccupancy rate and then the operating yield to determine alump sum
Assessed using the capital expenditure for similar properties asa standard, calculated assuming that the renewal fees
necessary to maintain building function, although actuallyirregular, will accumulate on an average amount every period,
the building age, and the average value for repair and renewal
fees on the engineering report
Assessed based on standard yield for each region,
geographical conditions for the relevant property, adjustments
to the spread based on the building conditions and otherconditions, future uncertainty and transaction yield for similar
properties
Assessed based on the investment yield, etc. for similar
properties, as well as consideration of the uniquecharacteristics of the relevant property
Assessed based on overall consideration of the investment
yield, etc. for similar properties, as well as future trends foryield, investment risks of the property, general predictions of
future growth rate and trends for real estate prices and rent
Assessed by applying the sales comparison approach to actual
transaction prices
Calculated through assessment of the replacement costs for theproperty given its unique characteristics, then application ofdepreciation adjustment and consideration of the marketabilityof the property and premises as a whole.

None

http//www.jrhi.co.jp/en/

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

25

(Reference Material 1) Photographs of the Anticipated Properties(1) F-1-070 Gran Casa Kita3jo

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

26

(2) F-4-071 Gran Casa ShinKoiwa

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

27

(3) F-4-072 Gran Casa Ryogoku Ichibankan

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

28

(4) F-4-073 Gran Casa Ryogoku Nibankan

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

29

(5) O-6-142 Serenite Honmachi Grande

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

30

(6) O-6-143 Gransys Tenmabashi

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

31

(7) O-6-144 DayGran Tsurumi

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

32

(Reference Material 2) Locations of the Anticipated Properties(1) F-1-070 Gran Casa Kita3jo(2) F-4-071 Gran Casa ShinKoiwa

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

33

(3) F-4-072 Gran Casa Ryogoku Ichibankan(4) F-4-073 Gran Casa Ryogoku Nibankan(5) O-6-142 Serenite Honmachi Grande

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

34

(6) O-6-143 Gransys Tenmabashi(7) O-6-144 DayGran Tsurumi

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

35

(Reference Material 3) Portfolio by Type and Category after the Acquisitions(Differences following the Acquisitions indicated within parentheses. Unit: Number of residential units)
RegionStudioFamilyTotal by Area

23 Wards of Tokyo

2,286

1,188 (+87)

3,474 (+87)

Three Major Metropolitan Areas

4,275 (+513)

1,677

5,952 (+513)

Other Major Cities

2,765

553 (+84)

3,318 (+84)

Total by Type9,326 (+513)

3,418 (+171)

12,744 (+684)(Reference Material 4) Portfolio Status after the Acquisitions
Asset size((anticipated) acquisition price)

JPY 211.5 billion

Total Number of properties owned

199

Total number of leasable units

12,744 Units

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

36

(Additional Material 1) Overview of Portfolio after the Acquisitions<Number of Properties etc.>
Before the Acquisitions

Acquisition of 7 Properties(+)

Total Number of Owned Properties

192 properties

7 properties

199 properties

Total Number of Leasable Units

12,060 units

684 units

12,744 units

Total Leasable area

478,611.21 m2

26,894.50 m2

505,505.71 m2

12.4 years

5.5 years

12.0 years

Average Age of Buildings (Note)

After the Acquisitions(Note) Indicates weighted average of age of properties in accordance with (anticipated) acquisition price. “Before the Acquisition” and“Acquisition of 7 Properties” are as of today, “After the Acquisitions” is as of payment and delivery date of the asset to be acquired.

<Asset Size etc.>

Total (Anticipated) Acquisition Price(Note 1)

Total Book Value (a)(Note 2)

Appraisal Value (b)(Note 3)Ratio(a) / (b) × 100%
Average (Anticipated) Acquisition
Price per Property

Before the Acquisitions

Acquisition of 7 Properties(+)

JPY 197.2 billion

JPY 14.3 billion

JPY 211.5 billion

JPY 191.8 billion

JPY 14.3 billion

JPY 206.1 billion

JPY 203.5 billion

JPY 15.0 billion

JPY 218.5 billion

94.2%

95.5%

94.3%

JPY 1.02 billion

JPY 2.04 billion

JPY 1.06 billion

5.68%

5.39%

5.66%

After the Acquisitions(Note 1)NOI Yield(Note 4)(Note 1) Total (Anticipated) Acquisition Price and Average (Anticipated) Acquisition Price per Property are calculated based on the acquisition(anticipated) price.
(Note 2) Book Values are based on the values on the balance sheet for end of the 18th fiscal period for “Before the Acquisitions”, on the anticipatedacquisition price for the “Acquisition of 7 Properties”, and on sum of the total of the values on the balance sheet for end of the 18th fiscal
period and the total of anticipated acquisition price for anticipated 7 properties for “After the Acquisitions.”(Note 3) Appraisal Values are based on the end of the 18th fiscal period for “Before the Acquisitions”, as of acquisition for “Acquisition of 7 Properties”,
and using the total of the Acquisition of 7 Properties value and the Appraisal Value at the end of the 18th fiscal period for “After theAcquisitions.”(Note 4) NOI yield is calculated by NOI/(anticipated) acquisition price. Figures are based on annualizations of 18th fiscal period performance for“Before the Acquisition”, on appraised NOI at the time of acquisition for “Acquisition of 7 Properties”, and on the total of annualizations of
18th fiscal period performance and appraised NOI at the time of acquisition for “After the Acquisitions.”<Amount and Rate of Investment by Type (Based on (Anticipated) Acquisition Price) >Rental Property Category

Before the Acquisitions

Acquisition of 7 Properties(+)

After the Acquisitions

StudioJPY 126. 0 billion (63.9%)

JPY 9.3 billion (65.4%)

JPY 135.4 billion (64.0%)

FamilyJPY 71.1 billion (36.1%)

JPY 4.9 billion (34.6%)

JPY 76.1 billion (36.0%)<Amount and Rate of Investment by Region (Based on (Anticipated) Acquisition Price)>
RegionBefore the Acquisitions

Acquisition of 7 Properties(+)

After the Acquisitions

23 Wards of Tokyo

JPY 87.1 billion (44.2%)

JPY 3.7 billion (25.8%)

JPY 90.8 billion (42.9%)

Three Major Metropolitan Areas

JPY 76.9 billion (39.0%)

JPY 9.3 billion (65.4%)

JPY 86.3 billion (40.8%)

Other Major Cities

JPY 33.1 billion (16.8%)

JPY 1.2 billion (8.8%)

JPY 34.3 billion (16.3%)

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

37

(Additional Material 2) List of Portfolio after the Acquisitions
Property
NumberName of Property

Region(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)
(Note 2)

(Note 1)O-1-001

Satella Kita 34jo

Other Major Cities

1,133,714

0.5

O-1-004

Satella Nagayama

Other Major Cities

342,4280.2

O-1-032

willDo Kita 24jo

Other Major Cities

316,000

0.1

O-1-033

Flat Carerra

Other Major Cities

290,000

0.1

O-1-034s13w9 h+Other Major Cities

463,000

0.2

O-1-035s9w12 h+Other Major Cities

533,000

0.3

O-1-036

willDo Minami hiragishi

Other Major Cities

315,000

0.1

O-1-090

Sky Hills N15

Other Major Cities

712,000

0.3

O-1-091

Sky Hills Sakaemachi

Other Major Cities

832,000

0.4

O-1-092

Dormy Chitose

Other Major Cities

476,000

0.2

O-1-093

Sky Hills Takadai I

Other Major Cities

448,000

0.2

O-1-128

Alpha Tower Sapporo Minami4jo

Other Major Cities

1,185,000

0.6

O-1-132

Cresidence Sapporo Minami4jo

Other Major Cities

1,140,000

0.5

O-2-037

willDo Nishitadaicho

Other Major Cities

512,000

0.2

O-2-054

willDo Kamisugi 3chome

Other Major Cities

506,000

0.2

O-2-065

Grandmaison Shichifuku

Other Major Cities

342,000

0.2

O-2-094

Living Stage Higashi Sendai

Other Major Cities

317,200

0.1

O-2-123

West Park Hasekura

Other Major Cities

1,240,000

0.6

O-2-137

Forest Hill SendaiAoba

Other Major Cities

2,750,000

1.3

O-2-140

Gran Casa Sendai Itsutsubashi

Other Major Cities

2,100,000

1.0

O-3-079

willDo Ishizue-cho

Other Major Cities

462,5100.2

O-3-080

willDo Sasaguchi

Other Major Cities

266,000

0.1

O-4-005

willDo Koshigaya

Three Major Metropolitan Areas

499,333

0.2

O-4-006

Joyful Sayama

Three Major Metropolitan Areas

216,6190.1

O-4-007

Lumiere Hachioji

Three Major Metropolitan Areas

480,7610.2

O-4-008

willDo Kiyosumi

23 Wards of Tokyo

5,024,619

2.4

O-4-009

Turkey’s Denenchofu No. 2

23 Wards of Tokyo

281,523

0.1

O-4-010

willDo Honchiba

Three Major Metropolitan Areas

379,857

0.2

O-4-011

willDo Yokohama Minami

Three Major Metropolitan Areas

233,1420.1

O-4-012Site Pia

Three Major Metropolitan Areas

506,1420.2

O-4-024

VISTA Supreme

Three Major Metropolitan Areas

563,584

0.3

O-4-025

Joy Oyamadai

23 Wards of Tokyo

624,265

0.3

O-4-031

willDoOtsuka

23 Wards of Tokyo

725,2290.3

O-4-038

willDo Niiza

Three Major Metropolitan Areas

590,438

0.3

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

38

Property
Number

Property Name

Region(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)
(Note 2)

(Note 1)O-4-039

Toshin Shoto Mansion

23 Wards of Tokyo

912,000

0.4

O-4-055

Harmony Kamikitazawa

23 Wards of Tokyo

400,000

0.2

O-4-062

willDo Minami Urawa

Three Major Metropolitan Areas

396,000

0.2

O-4-069

College Square KitaIkebukuro

23 Wards of Tokyo

727,000

0.3

O-4-070

College SquareTobuNerima

23 Wards of Tokyo

892,000

0.4

O-4-071

College Square Akatsuka

23 Wards of Tokyo

734,000

0.3

O-4-072

College Square Higashikurume

Three Major Metropolitan Areas

523,000

0.2

O-4-073

College Square Waseda II

23 Wards of Tokyo

215,000

0.1

O-4-074

College Square Myogadani

23 Wards of Tokyo

1,060,000

0.5

O-4-075

College Square ShinKoiwa

23 Wards of Tokyo

724,000

0.3

O-4-076

College Square Kiba

23 Wards of Tokyo

639,000

0.3

O-4-077

College Square Kinshicho

23 Wards of Tokyo

490,000

0.2

O-4-078

College Square Waseda

23 Wards of Tokyo

316,000

0.1

O-4-089

Lexington Square ShinjukuGyoen

23 Wards of Tokyo

1,010,000

0.5

O-4-095

Prospect NihonbashiHoncho

23 Wards of Tokyo

808,000

0.4

O-4-096

Maison de Ville Takanawa Gyoranzaka

23 Wards of Tokyo

1,480,000

0.7

O-4-097

Roppongi Rise House

23 Wards of Tokyo

912,000

0.4

O-4-098

TK Flats Shibuya

23 Wards of Tokyo

4,770,000

2.3

O-4-099

Masion de Ville NakaMeguro

23 Wards of Tokyo

1,050,000

0.5

O-4-100

Prospect KALON Minowa

23 Wards of Tokyo

1,620,000

0.8

O-4-101

Prospect Shinonomebashi

23 Wards of Tokyo

3,040,000

1.4

O-4-102

Prospect Monzennakacho

23 Wards of Tokyo

1,080,000

0.5

O-4-103

Prospect Ogikubo

23 Wards of Tokyo

701,000

0.3

O-4-104

Exceria Ikebukuro WEST II

23 Wards of Tokyo

852,000

0.4

O-4-105

Prospect OmoriKaigan

23 Wards of Tokyo

1,480,000

0.7

O-4-106

Prospect MusashiShinjo

Three Major Metropolitan Areas

1,050,000

0.5

O-4-107

Fragrance Kawaski

Three Major Metropolitan Areas

548,900

0.3

O-4-108

Prospect Chuo-Rinkan

Three Major Metropolitan Areas

524,000

0.2

O-4-120

Gala Place Shinjuku Gyoen

23 Wards of Tokyo

2,170,000

1.0

O-4-121

Joyce Court

23 Wards of Tokyo

3,010,000

1.4

O-4-122

Act Forme Asakusa

23 Wards of Tokyo

1,216,000

0.6

O-4-125

Gran Casa Roppongi

23 Wards of Tokyo

1,480,808

0.7

O-4-126

Gran Casa MinamiAoyama

23 Wards of Tokyo

3,750,000

1.8

O-4-127

Storia Jingumae

23 Wards of Tokyo

3,160,000

1.5

O-4-129

Spacia Shinjuku

23 Wards of Tokyo

2,525,000

1.2

O-4-133

Lietocourt Yotsuya

23 Wards of Tokyo

1,716,800

0.8

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

39

Property
Number

Property Name

Region(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)
(Note 2)

(Note 1)O-4-134

Lietocourt Motoakasaka

23 Wards of Tokyo

1,095,700

0.5

O-4-138

Gran Casa Ginza East

23 Wards of Tokyo

2,000,000

0.9

O-5-013

willDo Kanayama masaki

Three Major Metropolitan Areas

490,095

0.2

O-5-026

Excelsior Sakae

Three Major Metropolitan Areas

641,767

0.3

O-5-027

willDo Hibino

Three Major Metropolitan Areas

317,6030.2

O-5-040

willDo Chiyoda

Three Major Metropolitan Areas

633,000

0.3

O-5-041

willDo Taiko dore

Three Major Metropolitan Areas

1,120,000

0.5

O-5-042

willDo Kanayama

Three Major Metropolitan Areas

370,000

0.2

O-5-043

willDo Kanayama Sawashita

Three Major Metropolitan Areas

375,000

0.2

O-5-056

willDo Kachigawa

Three Major Metropolitan Areas

503,000

0.2

O-5-057

Stagea Kogane

Three Major Metropolitan Areas

600,000

0.3

O-5-063

willDo Inae

Three Major Metropolitan Areas

641,000

0.3

O-5-066

willDo Higashibetsuin

Three Major Metropolitan Areas

703,000

0.3

O-5-081

willDo Matsubara

Three Major Metropolitan Areas

549,000

0.3

O-5-082

willDoYokkaichi Unomori

Three Major Metropolitan Areas

529,1500.3

O-5-086

willDo Daikancho

Three Major Metropolitan Areas

655,000

0.3

O-5-088

willDo TakabataThree Major Metropolitan Areas

494,115

0.2

O-6-014

willDo Ichioka

Three Major Metropolitan Areas

722,7610.3

O-6-015

willDo Ebie

Three Major Metropolitan Areas

350,904

0.2

O-6-016

willDo Imafuku Nishi

Three Major Metropolitan Areas

413,857

0.2

O-6-017

Maison FloraThree Major Metropolitan Areas

584,2850.3

O-6-018

Wind Four Minami Honmachi

Three Major Metropolitan Areas

307,1420.1

O-6-028

willDo Shin-Osaka s I

Three Major Metropolitan Areas

285,723

0.1

O-6-029

Grand Mer Higashi Yodogawa

Three Major Metropolitan Areas

236,069

0.1

O-6-030

willDo FukaeMinami

Three Major Metropolitan Areas

184,7160.1

O-6-044

willDo Dainichi

Three Major Metropolitan Areas

217,000

0.1

O-6-046

willDo Tsukamoto

Three Major Metropolitan Areas

730,000

0.3

O-6-047

willDo Tenmabashi

Three Major Metropolitan Areas

338,000

0.2

O-6-048

willDo SakaisujiHommachi

Three Major Metropolitan Areas

325,000

0.2

O-6-049

willDo Tanimachi

Three Major Metropolitan Areas

1,040,000

0.5

O-6-050

willDo Nanba wII

Three Major Metropolitan Areas

486,000

0.2

O-6-051

willDo Nanba wI

Three Major Metropolitan Areas

690,000

0.3

O-6-052

Zekubenten

Three Major Metropolitan Areas

466,000

0.2

O-6-058

willDo Tsurumi morokuchi

Three Major Metropolitan Areas

180,000

0.1

O-6-059

willDo Hamasaki dori

Three Major Metropolitan Areas

2,280,000

1.1

O-6-060

willDo Minamimorimachi

Three Major Metropolitan Areas

493,000

0.2

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

40

Property
Number

Property Name

Region(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)
(Note 2)

(Note 1)

O-6-064

willDo Matsuyamachi

Three Major Metropolitan Areas

810,000

0.4

O-6-067

willDo Shinosaka

Three Major Metropolitan Areas

861,000

0.4

O-6-083

willDo Sannomiya East

Three Major Metropolitan Areas

731,000

0.3

O-6-084

willDo Kamishinjo wI

Three Major Metropolitan Areas

366,000

0.2

O-6-085

willDo Kujo

Three Major Metropolitan Areas

537,000

0.3

O-6-111

Abreast ShinOsaka

Three Major Metropolitan Areas

1,391,000

0.7

O-6-112

Abreast Sakuragawa

Three Major Metropolitan Areas

385,800

0.2

O-6-113

Prospect Bishoen

Three Major Metropolitan Areas

277,000

0.1

O-6-114Prospect Nakanoshima

Three Major Metropolitan Areas

734,000

0.3

O-6-116

Prospect Toyonaka Hattori

Three Major Metropolitan Areas

366,000

0.2

O-6-117

Prospect Shimogamo

Three Major Metropolitan Areas

281,000

0.1

O-6-118

Prospect Kawaramachi Gojo

Three Major Metropolitan Areas

583,000

0.3

O-6-119

Gransys Esaka

Three Major Metropolitan Areas

1,260,000

0.6

O-6-131

Serenite Koshien

Three Major Metropolitan Areas

2,550,000

1.2

O-6-136

Pregio Miyakojima

Three Major Metropolitan Areas

1,610,000

0.8

O-6-139

Serenite Shinosaka Nibankan

Three Major Metropolitan Areas

3,510,000

1.7

O-6-141

Gran Casa Umedakita

Three Major Metropolitan Areas

2,050,000

1.0

O-6-142

Serenite Honmachi Grande

Three Major Metropolitan Areas

4,286,000

2.0

O-6-143

Gransys Tenmabashi

Three Major Metropolitan Areas

4,050,000

1.9

O-6-144

DayGran Tsurumi

Three Major Metropolitan Areas

1,030,000

0.5

O-7-068

willDo Okayamaeki Nishiguchi

Other Major Cities

1,220,000

0.6

O-7-087

willDo Okayamadaiku

Other Major Cities

1,040,000

0.5

O-9-053

willDo Nakasu

Other Major Cities

2,460,000

1.2

O-9-130

Renaissance 21 Hakata

Other Major Cities

1,500,000

0.7

O-9-135

Granpark Tenjin

Other Major Cities

4,698,000

2.2

135,424,572

64.0(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)

Studio Total

Property
Number

Property Name

Region(Note 2)

(Note 1)F-1-041

Palais d’or Maruyama

Other Major Cities

559,000

0.3

F-1-069

Gran Casa Omotesando

Other Major Cities

1,510,000

0.7

F-1-070

Gran CasaKita3jo

Other Major Cities

1,265,880

0.6

F-2-001

Royal Garden Shinrin Koen

Other Major Cities

396,1900.2

F-2-002

Green Park Komatsujima

Other Major Cities

550,5230.3

F-2-003

Dia Palace Izumizaki

Other Major Cities

355,095

0.2

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

41

Property
Number

Property Name

Region(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)
(Note 2)

(Note 1)F-2-004

willDo Takasago

Other Major Cities

364,9040.2

F-2-042

Living Stage Minamisendai

Other Major Cities

159,500

0.1

F-2-043

Takasagoseki Nibankan

Other Major Cities

558,000

0.3

F-3-034

Ark Heim Niigata

Other Major Cities

1,060,000

0.5

F-4-005

Johanna Mansion

Three Major Metropolitan Areas

556,7140.3

F-4-006

Iruma Ekimae Building

Three Major Metropolitan Areas

1,517,000

0.7

F-4-007

Iruma Ekimae Building No. II

Three Major Metropolitan Areas

687,666

0.3

F-4-008

Sereno Omiya

Three Major Metropolitan Areas

1,554,523

0.7

F-4-009

Suzuran-kan

Three Major Metropolitan Areas

441,1900.2

F-4-010Bonheur Tokiwa

Three Major Metropolitan Areas

752,904

0.4

F-4-011

Profit Link Takenotsuka

23 Wards of Tokyo

636,333

0.3

F-4-013

Dream Heights

23 Wards of Tokyo

358,666

0.2

F-4-014

Green Hills Asukayama

23 Wards of Tokyo

587,238

0.3

F-4-015

Oji Heights

23 Wards of Tokyo

347,857

0.2

F-4-016

Sakagami Royal Heights NO. II

23 Wards of Tokyo360,7140.2

F-4-017

willDo Todoroki

23 Wards of Tokyo

1,764,809

0.8

F-4-018

Chez Moi Sakuragaoka

Three Major Metropolitan Areas

609,904

0.3

F-4-019

Libest NishiChiba

Three Major Metropolitan Areas

2,152,476

1.0

F-4-020

Corinne Tsudanuma

Three Major Metropolitan Areas

352,7610.2

F-4-022

Chigasaki Daikan Plaza

Three Major Metropolitan Areas

453,571

0.2

F-4-028

Winbell Chorus Hiratsuka No. 13

Three Major Metropolitan Areas

477,587

0.2

F-4-029

Libest Higashi Nakayama

Three Major Metropolitan Areas

1,371,314

0.6

F-4-031

MGA Kanamachi

23 Wards of Tokyo

484,000

0.2

F-4-035

Greenhills Roka

23 Wards of Tokyo

662,000

0.3

F-4-036

Lofty Hirai

23 Wards of Tokyo

324,000

0.2

F-4-038

Colonnade Kasuga

23 Wards of Tokyo

3,115,277

1.5

F-4-039

The Palms Yoyogi Uehara Cosmo Terrace

23 Wards of Tokyo

1,250,000

0.6

F-4-040

Sun Terrace Yoyogi Uehara

23 Wards of Tokyo

1,180,000

0.6

F-4-044

Prospect NihonbashiKoamicho

23 Wards of Tokyo

840,000

0.4

F-4-045

Park Terrace Ebisu

23 Wards of Tokyo

2,060,000

1.0

F-4-046

Prospect Dogenzaka

23 Wards of Tokyo

1,590,000

0.8

F-4-047

Prospect Glarsa Hiroo

23 Wards of Tokyo

3,560,000

1.7

F-4-048

Prospect Hatsudai

23 Wards of Tokyo

518,000

0.2

F-4-049

Prospect NishiSugamo

23 Wards of Tokyo

1,110,000

0.5

F-4-050

Prospect Machiya

23 Wards of Tokyo

484,000

0.2

F-4-051

Prospect KiyosumuTeien

23 Wards of Tokyo

2,630,000

1.2

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

42

Property
Number

Property Name

Region(Anticipated)
Acquisition Price(JPY thousands)

Ratio (%)
(Note 2)

(Note 1)F-4-052

Prospect Morishita

23 Wards of Tokyo

1,260,000

0.6

F-4-053

Prospect OnshiKoen

23 Wards of Tokyo

1,110,000

0.5

F-4-054

BELNOS34

23 Wards of Tokyo

1,700,000

0.8

F-4-055

SK Residence

23 Wards of Tokyo

805,000

0.4

F-4-056

Angel Heim NishiRokugo No. 2

23 Wards of Tokyo

1,012,000

0.5

F-4-057

Deim Hashimoto

Three Major Metropolitan Areas

748,000

0.4

F-4-058

Prospect Kawasaki

Three Major Metropolitan Areas

1,520,000

0.7

F-4-059

Prospect UrawaTokiwa

Three Major Metropolitan Areas

717,000

0.3

F-4-064

Glana Ueno

23 Wards of Tokyo

1,100,000

0.5

F-4-065

The Residence Honmoku Yokohama
BaysideThree Major Metropolitan Areas

5,550,000

2.6

F-4-066

Lietocourt Asakusabashi

23 Wards of Tokyo

1,615,800

0.8F-4-071Gran Casa ShinKoiwa

23 Wards of Tokyo

1,510,000

0.7

F-4-072

Gran CasaRyogoku Ichibankan

23 Wards of Tokyo

1,420,000

0.7

F-4-073Gran Casa Ryogoku Nibankan

23 Wards of Tokyo

770,000

0.4

F-5-023

willDo Temmacho

Three Major Metropolitan Areas

627,7850.3

F-5-024

Grace Mansion Fuji

Three Major Metropolitan Areas

492,7610.2

F-5-032

Stellato City Sakurayama

Three Major Metropolitan Areas

735,000

0.3

F-5-037

willDo Kurokawa

Three Major Metropolitan Areas

677,000

0.3

F-5-060

Gran Casa Daikancho

Three Major Metropolitan Areas

1,082,000

0.5

F-5-061Gran Casa Gokiso

Three Major Metropolitan Areas

932,500

0.4

F-5-067

Liettecourt Marunouchi

Three Major Metropolitan Areas

3,756,800

1.8

F-5-068

Gran Casa Kamimaezu

Three Major Metropolitan Areas

2,050,000

1.0

F-6-026

willDo Nishi-Akasi

Three Major Metropolitan Areas

635,666

0.3

F-6-033

La Vita Nippombashi

Three Major Metropolitan Areas

1,860,000

0.9

F-6-062

Crown Heim NishiTanabe

Three Major Metropolitan Areas

405,000

0.2

F-6-063

Prospect Katsura

Three Major Metropolitan Areas

470,000

0.2

Family Total

76,131,920

36.0

Total

211,556,492

100.0(Note 1) Figures in “(Anticipated) Acquisition Price” are rounded off to thousands of yen. Totals and subtotals of (anticipated) acquisition prices add up thefigures without rounding down and are rounded down to thousands of yen.
(Note 2) Figures in “Ratio (%)” show the ratio of the (anticipated) acquisition price of each owened property or anticipated property to the total of the(anticipated) acquisition price of the owened properties and anticipated properties.

Note: This English language notice is a translation of the Japanese-language notice released on May 8, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers
to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japanese-language noticeis provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completeness of this English
translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and theJapanese original, the latter shall prevail in all respects.

43