Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

October 29, 2018
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

New Loans and Interest Rate Swap
Ichigo Office decided today to borrow funds via new loans (“Term Loan XIV-A,”“Term Loan XIV-B,” and “Term Loan XIV-C”) and to enter into an interest rate swap tolock-in the interest rate on one of the loans.
1. Reason for New Loans and Interest Rate Swap
The new loans will be used to repay existing loans (JPY 1.6 billion). Details of the loans
to be repaid are in Section 3 below.
The terms of the new loans are seven and a half years, significantly longer than theexisting loans to be repaid, further strengthening Ichigo Office’s finances. Ichigo Office
is fixing the interest rate on Term Loan XIV-A (JPY 1 billion) via a swap in order tohedge against any future rise in interest rates.
2. Loan and Interest Rate Swap Details
Term Loan XIV-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC
JPY 1 billion
Repayment of existing loan (Term Loan VIII-A)
October 31, 2018April 30, 2026
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)1
Final day of each month following the Loan Date(the first payment date will be November 30, 2018
and the last payment date will be the same as thePrincipal Repayment Date)
No1

Swap Details
Counterparty
Contract Date
Fixed Interest Rate
1

Mizuho Bank
October 29, 2018
0.9625%

As a result of the interest rate swap, the interest rate for Term Loan XIV-A is fixed at0.9625%.

Term Loan XIV-B
LenderLoan Amount
Use of ProceedsLoan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Mizuho Bank
JPY 400 million
Repayment of existing loan (Term Loan VIII-C)
October 31, 2018
April 30, 2026
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)
Final day of each month following the Loan Date(the first payment date will be November 30, 2018
and the last payment date will be the same as thePrincipal Repayment Date)
No

Term Loan XIV-C
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Shinsei Bank
JPY 200 million
Repayment of existing loan (Term Loan VIII-E)
October 31, 2018
April 30, 2026
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)
Final day of each month following the Loan Date(the first payment date will be November 30, 2018
and the last payment date will be the same as thePrincipal Repayment Date)
NoNotes:
The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.

2

3. Existing Loans Being Repaid
Term Loan VIII-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Collateralized

SMBC
JPY 1 billion
Asset acquisition and related costs
May 10, 2017
October 31, 2018
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.33% (p.a.)No

Term Loan VIII-C
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Partial Repayment Date
Collateralized

Mizuho Bank
JPY 400 million
Asset acquisition and related costs
May 10, 2017
October 31, 2018
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.33% (p.a.)No

Term Loan VIII-E
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Collateralized

Shinsei Bank
JPY 200 million
Asset acquisition and related costs
May 10, 2017
October 31, 2018
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.33% (p.a.)No

4. Earnings Outlook
The impact of the new loans and interest rate swap on Ichigo Office’s October 2018 andApril 2019 fiscal period earnings has already been reflected in Ichigo Office’s June 14,2018 release “April 2018 Fiscal Period Earnings.”
5. OtherRisks related to these loans have no material impact on the “Investment Risks” describedin the latest Financial Report submitted July 26, 2018.

3

Reference: Loan and Bond Composition after New Loans
Outstanding Loan and Bond Balance(JPY million)
BeforeNew Loans(A)

AfterNew Loans(B)1

Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

15,87914,270-1,609Long-term bank loans

87,562

89,130+1,567

Total bank loans

103,442

103,400

-41

2,200

2,200

–

105,642

105,600-41

Other interest-bearing liabilities–––

Total interest-bearing liabilities

105,642

105,600-41

Bonds
Total bank loans and bonds

1

The amount excludes a JPY 41 million partial principal repayment scheduled on October
31, 2018.

4

Distribution of Loan and Bond Maturities
Before New Loans■ Bank Loans (floating rate)

8,814
6,867

■ Bank Loans (fixed rate)
9,574

10,233

9,639

9,629

■ Bonds
9,633(JPY million)

9,623

7,263
6,346

3,867

4,600

7,859

3,954

6,370
2,900
3,000
1,600
Oct
2018

Apr
2019

2,380

2,000
892

955

Oct
2019

Apr
2020

1,200

1,000

Oct2027

Apr
2028

900
Oct
2020

Apr2021

Oct2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

Oct2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

After New Loans■ Bank Loans (floating rate)■ Bank Loans (fixed rate)
9,574

10,233■ New Loans■ Bonds(JPY million)

9,639

9,629

9,633

9,623

8,814
6,867

7,263
6,346
5,554

3,867

4,600

7,859

1,600

6,370
2,900

Oct
2018

Apr
2019

2,380
3,954

2,000

3,000
892

955

Oct
2019

Apr
2020

1,200

1,000

Oct
2027

Apr
2028

900
Oct
2020

Apr2021

Oct2021

Apr2022

Oct2022

Apr2023

5

Oct2023

Apr2024

Oct2024

Apr2025

Oct2025

Apr
2026

Oct2026

Apr2027