This translation of the original Japanese notice is provided solely for information purposes. Should there
be any discrepancy between this translation and the Japanese original, the latter shall prevail.
December 19, 2018
REIT Issuer:

Nippon Healthcare Investment Corporation (Securities Code: 3308)
Representative: Shunichi Suzuki, Executive Director
Asset Manager: Daiwa Real Estate Asset Management Co., Ltd.
Representative: Akira Yamanouchi, President and Representative Director
Inquiries to: Kentaro Azumi, General Manager, Corporate Division(TEL: +81-3-6757-9600)

Notice Concerning Acquisition and Leasing of Property(Irise Komae Bettei)
Nippon Healthcare Investment Corporation (the “Investment Corporation”) hereby gives notice that Daiwa
Real Estate Asset Management Co., Ltd. (the “Asset Manager”), to which the Investment Corporation
entrusts its asset management operations, decided today to acquire and lease the real estate trust
beneficiary interest (the “Property”) as follows:
1. General Outline of the Asset to Be Acquired
Property nameIrise Komae Bettei
Type of asset
Trust beneficiary interest in domestic real estate (Note)
Location
1-32-5 Higashi-nogawa, Komae-city, Tokyo
Acquisition price394.5 million yen (excluding acquisition costs and consumption tax, etc.)
Date of conclusionof purchase
December 20, 2018 (scheduled)agreement
Date of delivery
December 20, 2018 (scheduled)
Seller
GK DA Healthcare 2
Operator nameHITOWA Care Services Co., Ltd.
Fund forCash on handacquisition
Payment method
Lump-sum payment at the time of delivery
IntermediaryNon-applicable(Note) The Investment Corporation plans to acquire 30% quasi-co-ownership of trust beneficiary interest in realestate as primary asset in trust. The remaining 70% quasi-co-ownership of trust beneficiary interest isscheduled to be owned by GK DA Healthcare 2.

2. Reason for Acquisition and Leasing
We believe that the Property is an appropriate healthcare facility pursuant to the basic policy for asset
management set forth in the Articles of Incorporation and the management policy of the Investment
Corporation. We decided to acquire and lease the Property because we appreciate its rarity andprofitability.
As for the operator of the Property, we believe that the operator is appropriate pursuant to the criteria for
selecting operators indicated in the Report on the Management Structure and System of the Investment
Corporation dated July 31, 2018. Please refer to below for further details.

Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

1

3. Details of the Acquisition and Leasing
Property Name
Irise Koma Bettei
Overview of the specified asset
Type of specified asset
Real estate trust beneficiary interests
Trustee
Mitsubishi UFJ Trust and Banking Corporation (scheduled)
Trust period
From February 20, 2017 to February 28, 2027
Acquisition price394.5
Scheduled acquisition
December 20, 2018
(million yen)dateAppraisal value (million
394.5 (30% quasi coAppraisal firm
Japan Real Estateyen) (Appraisal date)ownership of trust
Institutebeneficiary interest)(as of December 1, 2018)
Location
1-32-5 Higashi-nogawa, Komae-city, Tokyo
AccessApproximately 900 meters from Kitami Station on the Odakyu Odawara Line(approximately a 12-minute walk)Land
Area (m²)
2,475.48 (Total)
ZoningCategory 1 low-rise
exclusive residential district
Ownership form Ownership (30% quasiFloor-area ratio/
80/40
co-ownership of trust
Building-to-land ratio
beneficiary interest)(%)
Building Structure/Floors RC/3F
Number of leasable
1
compartments(compartment)
Total floor area
2,016.73 (Total)
Construction completion January 27, 2017(m²)
Ownership form Ownership (30% quasiUse
Home for the elderly
co-ownership of trust
beneficiary interest)
Japan Heartect Design First-class Architect Office
Building engineer
Ohtsuki Koumuten Co., Ltd.
Constructor
Building inspection agency Urban Housing Evaluation Center
Investigation agency or
structural calculation
ERI Solution Co., Ltd.
confirmation agency
Estimated emergency
Estimated short-term
repair expenses
0
repair expenses
0(thousand yen)(thousand yen)
Estimated long-term repair
expenses
15,220PML (%)
10.83(thousand yen)
Replacement value
462,400(thousand yen)
Property manager
AIP Healthcare Japan GK
Master lessee
The Investment Corporation Type of master lease
Pass-throughOverview of leasing
Real estate rent revenue
Not disclosed (Note 1)
Lease and guarantee deposits Not disclosed (Note 1)
HITOWA Care Services
Total leasable area (m²)
2,016.73 (Note 2)
Major tenantCo., Ltd.
Total leased area (m²)
2,016.73 (Note 2)
Occupancy rate
100.0% (Note 2)
Leased area of major
Ratio to total leasable
2,016.73 (Note 2)
100.0% (Note 2)
tenant (m²)
area
Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

2

(Note 1)(Note 2)

The figures are not presented as consent for disclosure has not been obtained from the operator. Furthermore,
the figures including those for properties owned as of the end of April 2019 are scheduled to be disclosed in thefinancial report for the 4th fiscal period (ending April 2019).
The figure indicated is for the entirety of the Property.

(Overview of contract with major tenant)Contract format:
Standard building lease contract
Condition precedent: Trust beneficiary interest shall be transferred to the lessor (the Investment Corporation
who is the master lessee; the same shall apply hereinafter) and leasing from the trustee
to the lessor shall be commenced.
Contract period:
From the day the above condition precedent is fulfilled to January 31, 2047
Rent revisions:Lessor and lessee may revise rent every 10 years. In addition, if there are any significant
changes in land/building prices, taxes and dues and economic climate, rent may berevised after consultation.
Contract renewal:
The contract shall be renewed at lease conditions decided upon consultation between
both parties for another 10 years in the case neither lessor or lessee indicates its intention
to reject the renewal to the other party by no later than 12 months before the contract
expiration date mentioned above. This shall be applied thereafter.
Mid-term cancellation: Lessee may not cancel the contract mid-term until January 31, 2028. However, lessee
may cancel the contract by paying the remaining rent for the period for which mid-term
cancellation is not allowed and by waiving its right to claim return of its lease deposits. In
addition, For the period from February 1, 2028 to January 31, 2047, the lessee must givethe lessor a notice on mid-term cancellation in writing by no later than 12 months inadvance. However, if the lessor has concluded a lease contract with a new lessee, lessee
may cancel the contract as of the date of delivery to the new lessee.
Overview of operator and facility (Date of preparing the written explanation of important matter: July 1, 2018)
Operator
HITOWA Care Services
Opening date
March 1, 2017
Co., Ltd.
Type of facility
Fee-based homes for
Number of Rooms
59
the elderly with nursing(room)
care
Condition of rights for reside Rights to use
Resident capacity
59(people)Room area range (m²)
18.00
Number of residents
58(people)Entering requirement
Requiring nursing
Occupancy rate (Note 3) 98.3%
care/requiring support
Average required level of
2.7
Average age of86
nursing care (Note 4)
residents (years old)
Service fee payment
methodOne-time entrance fee
Monthly fee basis
basis
One-time entrance fee
－
－
(yen)
(rent received inadvance)Monthly service fee－
227,000~248,000(yen)
Staff at nighttime
Staff engaged in nursing
3.0:1(number of staff
1 nursing care staff
caremembers at minimum)
Medical corporation Yamatokai Tamagawa Hospital (internal medicine, etc.)
Cooperative medicalorganization
Cooperative dental
Medical corporation Risseikai Himawari Dental Clinic
organization

Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

3

Features
Site Features:
The Property is located in an administrative district between Komae City and Setagaya Ward.
With cherry blossoms running along Nogawa Green Space in the vicinity and various otherflowers planted, a pleasant environment has been created in the community along with the
Kitami Fureai Park on the east side of the Property.
Regional features: The area within a 3-km radius of the Property spans all of Komae City and part of Chofu Cityand Setagaya Ward. The number of elderly people aged 75 years or over is 122,000,
accounting for 32.6% of the total population of the two cities and one ward. The number of
elderly people aged 75 or over in Komae City is expected to increase to 12,400 in 2025 from10,600 in 2018.
Property features: The Property is a relatively new facility, completed in 2017, and has private rooms of mainly
around 18 m², the standard room size for facilities with nursing care. The rooms are equippedwith a sink and toilet.
Matters of special note
The Investment Corporation plans to conclude a quasi-co-owner agreement with other quasi-co-owners. The
agreement will stipulate obligations of certain procedures for transfer, provision of collateral and other dispositionof the quasi-co-ownership interest owned by each. Moreover, it will stipulate that certain important matters behandled based on the will of all quasi-co-owners.
(Note 3) “Occupancy rates” are occupancy rates indicated in the written explanation of important matter or the ratio
obtained by dividing the number of residents indicated in the written explanation of important matters by theresident capacity, rounded down to one decimal place. Furthermore, the occupancy rate indicated in thewritten explanation of important matters may differ from the ratio obtained by dividing the number of residents
by the resident capacity due to circumstances such as including people not residing temporarily.
(Note 4) “Average required level of nursing care” indicates the figure obtained by multiplying the respective numberof residents categorized as independent, requiring support level 1, requiring support level 2, requiring nursing
care levels 1-5 and other in the written explanation of important matters by 0, 0.375, 1, 1-5 and 1 respectively,
and dividing the sum total by the number of residents, rounded down to one decimal place.

Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

44. Details of the Seller(1) Company Name
(2) Location
(3)

(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

GK DA Healthcare 2
Shiroyama Trust Tower 33F, 4-3-1 Toranomon, Minato-ku, Tokyo
Representative member General Incorporated Association Nippon
Title and Name of
Senior Holdings
Representative
Function manager Yusuke Sato
1. Trading, owning, leasing and management of real estates
Description of
2. Acquisition, owning, disposition and trading of real estate trust
Businessbeneficiary interests
3. All operations incidental or relating to the preceding articles
Amount of Capital
300 thousand yen
Sales amount is not disclosed as the agreement for disclosure is not
Sales Amountgained from the seller.
Date of Incorporation
November 24, 2016
The amount of net assets is not disclosed as the agreement for
Net Assets
disclosure is not gained from the seller.
The amount of total assets is not disclosed as the agreement for
Total Assets
disclosure is not gained from the seller.
The major shareholders are not disclosed as the agreement for
Major Shareholders
disclosure is not gained from the seller.
Relationship between the seller and the Investment Corporation/Asset Manager
There is no capital relationship required to be disclosed between theInvestment Corporation/Asset Manager and the seller.
Capital RelationshipHowever, Daiwa Securities Group Inc., the parent company of the AssetManager, has conducted investment equal to the entire equity of silent
partnership interest of the seller as its sole silent partner.
There is no personnel relationship required to be disclosed between theInvestment Corporation/Asset Manager and the seller. In addition, there
Personnel
is no personnel relationship required to be disclosed between the
Relationshipaffiliated parties and the affiliated companies of the Investment
Corporation/Asset Manager and the affiliated parties and the affiliatedcompanies of the seller.
There is no business relationship required to be disclosed between theInvestment Corporation/Asset Manager and the seller. In addition, there
is no business relationship required to be disclosed between theaffiliated parties and the affiliated companies of the Investment
Business
Corporation/Asset Manager and the affiliated parties and the affiliatedRelationshipcompanies of the seller. However, the seller falls under interested partiesof the Asset Manager stipulated in the enforcement regulations of the
Law on Investment Trusts and Investment Corporations (Act 198 of1951, as amended, the “Investment Trusts Act”).
Status of
The seller is a subsidiary of Daiwa Securities Group Inc., the parent
Classification ascompany of the Asset Manager, and does fall under the Related Party.
Related Party

Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

55. Status of Owners etc. of Property
The seller of the Property is a special purpose company which Daiwa Securities Group Inc., the parent
company of the Asset Manager, has conducted investment equal to the entire equity of the silent
partnership interest. The seller falls under interested parties stipulated in the Investment Trusts Act andfalls under the Related Party pursuant to the “Regulation Concerning Conflict of Interest,” an internal ruleof the Asset Manager. Thus, the Asset Manager proceeded with procedures to reach a decision as
stipulated in the Regulation Concerning Conflict of Interest in making transactions with the seller to acquire
the respective asset to be acquired.
Given that this transaction falls under the transactions listed in the items of Article 245-2 (1) of the
Enforcement Regulations of the Law on Investment Trusts and Investment Corporations, approval
procedures by the Board of Directors are omitted.
The following table indicates company name, relationship with a party having special relationship ofinterest and history/reason, etc. for acquisition.
Previous owner
Company name
GK DA Healthcare 2
Relationship with a party
Parent company of the Asset
having special relationship ofManager makes silent
interest
partnership investment
Acquired for the purpose of
History/reason, etc.
investment management394.5 million yen (equivalent toAcquisition priceownership interest)
Date of acquisition
February 2017

Earlier previous owner

Not a party having special
relationship of interest－－

Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

66. Details of the Operator(1) Company Name
(2) Location
Title and Name of(3)
Representative
Description of(4)
Business

HITOWA Care Services Co., Ltd.
1-4-5 Roppongi, Minato-ku, Tokyo
President and Chief Executive Officer Yoshiteru Hakamada
Nursing care-related businesses (nursing care business and operationof fee-based homes for the elderly, etc.)
Operations of fee-based homes for the elderly and elderly housingwith supportive services under the brand of “Irise”; and operations ofgroup homes business and day services business across Japan
centering on the Kanto region.
100 million yen
22,876 million yen (fiscal period ended September 2017)
November 1, 2006

(5)

Business Overview

(6)
(7)
(8)
(9)

Amount of Capital
Amount of Sales
Date of Incorporation
Attribute
Unlisted(listed market)
Number of Facilities
114 facilities
Operated (Note)
Number of Resident
Rooms Operated
6,807 rooms(Note)
Relationship between the operator and the Investment Corporation/Asset Manager
There is no capital relationship required to be disclosed between theInvestment Corporation/Asset Manager and the operator. In addition,
there is no capital relationship required to be disclosed between the
Capital Relationshipaffiliated parties and the affiliated companies of the Investment
Corporation/Asset Manager and the affiliated parties and the affiliatedcompanies of the operator.
There is no personnel relationship required to be disclosed between theInvestment Corporation/Asset Manager and the operator. In addition,
Personnel
there is no personnel relationship required to be disclosed between the
Relationshipaffiliated parties and the affiliated companies of the Investment
Corporation/Asset Manager and the affiliated parties and the affiliatedcompanies of the operator.
There is no business relationship required to be disclosed between theInvestment Corporation/Asset Manager and the operator. In addition,
Business
there is no business relationship required to be disclosed between the
Relationshipaffiliated parties and the affiliated companies of the Investment
Corporation/Asset Manager and the affiliated parties and the affiliatedcompanies of the operator.
The operator does not fall under the Related Party of the Investment
Status ofCorporation/Asset Manager. In addition, the affiliated parties and theClassification asaffiliated companies of the operator do not fall under the Related Persons
Related Partyof the Investment Corporation/Asset Manager.

(10)
(11)
(12)

(Note)

Number of Facilities Operated and Number of Resident Rooms Operated indicate number of facilities
and resident rooms of fee-based homes for the elderly, group homes and elderly housing with supportive
services, whose information obtained was from the operator’s website and interviewing the operator (asof November 1, 2018).

7. Status of Intermediary
None applicable for the acquisition of the trust beneficiary interest.
8. Future Prospects
For forecasts of management status for the fiscal period ending April 2019 (10th fiscal period) and thefiscal period ending October 2019 (11th fiscal period), please refer to “REIT Financial Report for the 9th
Fiscal Period” separately announced today.

Note: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

79. Summary of Appraisal Report
Appraiser
Appraisal Date
Appraised Value
Items

Japan Real Estate InstituteDecember 1, 2018
399 million yen(million yen)

Income Approach Value

399

Direct Capitalization Value

405(1) Operating Revenue
Potential Annual Rent
RevenueAmount of Loss due to
Vacancy(2) Operating Expenses
Maintenance andOperation Cost
Water & Utility Charges
RepairPM FeeLeasing Fee
Tax
Non-life Insurance
Others(3) Net Operating Revenue(4) Gain on Guarantee
Deposit Investment

Outline, etc.
Assessed based on the DCF method withreference/verification to direct capitalization value
Assessed based on the capitalization rate forstandardized net income recognized to be stable overthe medium to long-term

Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed(Note)

Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed
590(5) Capital Expenditures

1(6) Net Revenue ((3)+(4)-(5))59(7) Capitalization Rate

4.4%(8) Quasi-co-ownershipinterest
Discounted Cash Flow Value

Investment return is assumed at 1.0%.
Assessed after taking into account the level of capital
expenditures of similar properties, building age,annual average amount of repair/upgrading coststated in the ER, etc.
－
Comprehensive consideration taking into account theproperty’s location, the characteristics of the building
and contractual characteristics

30%
393

Discount Rate

4.2%

Terminal Capitalization Rate

4.6%

Integrated Value by Using Cost
MethodRatio of Land
Ratio of Building－
Assessed using a method comparing transaction
cases of similar properties, an investigation method
adding the property’s unique characteristics to theyields of other financial assets and other methods
Assessed based on transaction yield of similartransaction cases after comprehensively taking into
account future trends of investment yield, risk of
subject property as an investment target, generalprediction on future economic growth rate, trend ofreal estate prices, etc.

402

68.8%
31.2%
Other things appraiser noted upon valuation
Although the Property is located rather far from Kitami Station on the Odakyu Odawara Line at approximately 850 metersfrom the station, inconvenience in accessibility to the nearest station is mitigated, as taxis, etc. are relatively easy to find.
In addition, as for building characteristics, the building was completed in 2017 and is relatively new. Thus, no specificdeterioration from age is found and it is believed to stand favorably even when compared to other competitive properties.
For this case, the appraisal value is determined after comprehensively taking into account location characteristics, building
grade, age and other factors of the subject property.
(Note) The figures are not disclosed as the Asset Manager judged that the disclosure of these might negatively impact
the competitiveness of the Investment Corporation and harm unitholders interest as the appraisal uses figures
based on actual results as reference.

-EndNote: This press release was prepared as a public announcement regarding acquisition and leasing of assets by the Investment
Corporation and was not prepared with the aim of soliciting investments.

8