[For Information Purpose Only]
January 20, 2016
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Masayuki Inagaki,
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Debt Financing
Invincible Investment Corporation (INV) decided to obtain new debt financing as shown below.
1. Reason for Obtaining New Debt Financing
INV decided today to obtain new debt financing (hereinafter the “Financing”) in order toprocure funds for the acquisition of five hotel properties and one residential property (trust
beneficiary interests in domestic real estate) (Note), which are to be acquired on January 22,
2016, as well as a portion of the related expenses.
(Note)For details on the acquisition of the five hotel properties and one residential property, please refer to thepress release dated as of today entitled “Notice concerning Acquisition of Assets and Entering intoLeasing Contract.”

2. Details of the New Borrowing (anticipated)
Term Loan (B)[Term: three (3) years](1) Lender: Sumitomo Mitsui Trust Bank, LimitedMitsubishi UFJ Trust and Banking Corporation(2) Borrowing amount: JPY 4,250 million(3) Interest rate
: One-month JPY TIBOR (Base Rate) + spread (0.4%);
however the first interest calculation period uses
two-month JPY TIBOR + spread (0.4%) (Note 1)
Variable interest rate(4) Borrowing method: Borrowing based on separate term loan agreement dated
as of January 20, 2016
This English language notice is a translation of the Japanese-language notice released on January 20, 2016 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1(5) Agreement date(6) Anticipated borrowing date(7) Interest payment date:::

(8) Principal repayment method(9) Principal maturity date::

[Term: five (5) years](1) Lender(2) Borrowing amount(3) Interest rate(4) Borrowing method(5) Agreement date(6) Anticipated borrowing date(7) Interest payment date

(8) Principal repayment method(9) Principal maturity dateUnsecured / with no guaranteeJanuary 20, 2016
January 22, 2016
On (1) the last Japanese business day of each month
before the principal maturity date, beginning with February
29, 2016, and (2) the principal maturity dateLump-sum repayment on the principal maturity date
January 22, 2019

: Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation: JPY 4,250 million: One-month JPY TIBOR (Base Rate) + spread (0.6%);
however the first interest calculation period uses
two-month JPY TIBOR + spread (0.6 %) (Note 1)
Variable interest rate
: Borrowing based on separate term loan agreement dated
as of January 20, 2016
Unsecured / with no guarantee: January 20, 2016
: January 22, 2016
: On (1) the last Japanese business day of each month
before the principal maturity date, beginning with February
29, 2016, and (2) the principal maturity date
: Lump-sum repayment on the principal maturity date
: January 22, 2021

[Borrowings corresponding to the expected consumption tax refund (Note 2)](1) Lender: Sumitomo Mitsui Trust Bank, Limited(2) Borrowing amount: JPY 498 million(3) Interest rate
: One-month JPY TIBOR (Base Rate) + spread (0.2%);
however the first interest calculation period uses
two-month JPY TIBOR + spread (0.2 %) (Note 1)
Variable interest rate(4) Borrowing method: Borrowing based on separate term loan agreement dated
as of January 20, 2016
Unsecured / with no guarantee(5) Agreement date
: January 20, 2016
(6) Anticipated borrowing date
: January 22, 2016(7) Interest payment date
: On (1) the last Japanese business day of each monthThis English language notice is a translation of the Japanese-language notice released on January 20, 2016 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

2(8) Principal repayment method(9) Principal maturity date

(Note 1)

(Note 2)

before the principal maturity date, beginning with February
29, 2016, and (2) the principal maturity date
: Lump-sum repayment on the principal maturity date
: January 22, 2017

・Base rate applicable for the interest calculation period for interest to be paid on the relevant interest
payment date shall be one-month JPY TIBOR as announced by Japanese Bankers Association twoJapanese business days prior to the immediately preceding interest payment date.
・ JPY TIBOR as announced by JBA TIBOR Administration is available at its website(http://www.jbatibor.or.jp).
・Details of our debt financing are available at the “Borrowings & Investment Corporation Bonds” page ofINV’s website (http://www.invincible-inv.co.jp/eng/cms/loan.html).
・Borrowings corresponding to the expected consumption tax refund mean the borrowings which will beprepaid in the amount equivalent to the refund of consumption tax, which were paid in relation to theacquisition of the trust beneficiary interests acquired by the borrowings, in the case where theabove-mentioned consumption tax refunds are received. The same shall apply hereinafter.

3. Future outlook
The Financing has no effect on the forecasted financial results and distributions for thefiscal period ended December 2015 (July 1, 2015 to December 31, 2015). For the fiscal
period ending June 2016 (January 1, 2016 to June 30, 2016) and the fiscal period ending
December 2016 (July 1, 2016 to December 31, 2016), please refer to the press release
entitled “Notice concerning Revision of Forecast of Financial Results and Distribution forthe 25th Fiscal Period Ended December 2015, the 26th Fiscal Period Ending June 2016
and the 27th Fiscal Period Ending December 2016” dated as of today.
4. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure(1) Amount of funds to be raised
JPY 8,998 million(2) Specific use of proceeds and scheduled timing of expenditure
Use of proceeds
A part of funds to acquire specified
assets and related expenses

Amount (mn JPY)

Scheduled timing of expenditure

8,998

January 22, 2016

5. Other matters necessary for appropriate understanding and decision by investorsThe Financing described above will not result in any material change to the “InvestmentRisks” (toshi risuku) in the semi-annual securities report (yuka shoken hokokusho) of INV
for the fiscal period ended June 2015 (January 1, 2015 – June 30, 2015) (available inJapanese only), filed on September 28, 2015.

This English language notice is a translation of the Japanese-language notice released on January 20, 2016 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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(Appendix)＜Status of Borrowings before and after the Financing＞
The table below provides an overview of the borrowings of INV before the Financing.
Information which will be updated in connection with the Financing is underlined in each of the tables
below.
(Before the Financing: as of January 20, 2016)
LenderBorrowingdate

Borrowingamount(mn JPY)

Maturity
date

Security /guarantee

July 16,2018

Unsecured /nonguarantee

July 16,2019

Unsecured /nonguarantee

28,9790.73%
VariableInterest Rate
(Note 1)
(Note 4)

July 16,
2020

Unsecured /nonguarantee

1,080

0.33%
VariableInterest Rate
(Note 1)
(Note 5)

May 16,2016

Unsecured /nonguarantee

3,682

0.63%
VariableInterest Rate
(Note 1)
(Note 3)

August 28,
2019

Unsecured /nonguarantee

91,6990.63%(Note 6)

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Interest rate
(per annum)

July 16, 2015

28,979July 16, 2015

28,979Mizuho Bank, Ltd.
Shinsei Bank, Limited
Citibank Japan Ltd.

0.53%
VariableInterest Rate
(Note 1)
(Note 2)
0.63%
VariableInterest Rate
(Note 1)
(Note 3)

Sumitomo Mitsui Trust Bank, Limited

New
Syndicate
Loan (E)

Resona Bank, Limited
July 16, 2015
Mitsubishi UFJ Trust and BankingCorporation
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

July 16, 2015

Mizuho Bank, Ltd.
Term Loan(A)Mizuho Bank, Ltd.

August 28, 2015

Total debt
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)The interest rates applicable for the period from December 30, 2015 to January 28, 2016.
One-month JPY TIBOR + spread (0.4%)
One-month JPY TIBOR + spread (0.5%)
One-month JPY TIBOR + spread (0.6%)
One-month JPY TIBOR + spread (0.2%)
Interest rate (per annum) provided in Total debt is the weighted average interest rate based on theborrowing amount, excluding borrowings corresponding to the expected consumption tax refund, androunded to the nearest two decimal places.
The borrowing amount is rounded down to the nearest million JPY. The same shall apply hereinafter.

This English language notice is a translation of the Japanese-language notice released on January 20, 2016 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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The table below provides an overview of the borrowings of INV after the Financing.
(After the Financing: as of January 22, 2016 (anticipated))
LenderBorrowingdateBorrowing
amount(mn JPY)

Maturity
date

Security /guarantee

July 16,2018

Unsecured /nonguarantee

July 16,2019

Unsecured /nonguarantee

28,9790.73%
VariableInterest Rate
(Note 1)
(Note 4)

July 16,
2020

Unsecured /nonguarantee

1,080

0.33%
VariableInterest Rate
(Note 1)
(Note 5)

May 16,2016

Unsecured /nonguarantee

August 28,
2019

Unsecured /nonguarantee

January
22, 2019

Unsecured /nonguarantee

January
22, 2021

Unsecured /nonguarantee

January
22, 2017

Unsecured /nonguarantee

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

July 16, 2015

28,979July 16, 2015

28,979Mizuho Bank, Ltd.
Shinsei Bank, Limited
Citibank Japan Ltd.
New
Syndicate
Loan (E)

Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited

July 16, 2015

Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

July 16, 2015

Mizuho Bank, Ltd.

Term Loan(A)Term Loan(B)Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation

Sumitomo Mitsui Trust Bank, Limited

August 28, 2015

3,682

January 22,
2016

4,250

January 22,
2016

4,250

January 22,
2016

498

Total debt

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

100,697

Interest rate
(per annum)
0.53%
VariableInterest Rate
(Note 1)
(Note 2)
0.63%
VariableInterest Rate
(Note 1)
(Note 3)

0.63%
VariableInterest Rate
(Note 1)
(Note 3)
VariableInterest Rate
(Note 2)
(Note 6
VariableInterest Rate
(Note 4)(Note 6)
VariableInterest Rate
(Note 5)(Note 60.63%
(Note 7)The interest rates applicable for the period from December 30, 2015 to January 28, 2016.
One-month JPY TIBOR + spread (0.4%)
One-month JPY TIBOR + spread (0.5%)
One-month JPY TIBOR + spread (0.6%)
One-month JPY TIBOR + spread (0.2%)
For the first interest calculation period, two-month JPY TIBOR + spread is used in lieu of One- month JPY
TIBOR. The interest rates applicable from January 22, 2016 to February 28, 2016 will be disclosed on thedate of implementation of the borrowing.
Interest rate (per annum) provided in Total debt is the weighted average interest rate based on theborrowing amount, excluding borrowings corresponding to the expected consumption tax refund, and as amatter of convenience, the one-month JPY TIBOR as of December 28, 2015, is applied. The interest
rates obtained are rounded to the nearest two decimal places.

This English language notice is a translation of the Japanese-language notice released on January 20, 2016 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

5[For reference only]
Borrowing amount outstanding and Loan to Value Ratio (LTV) before/after the Financing(Units: mn JPY)
Before the Financing(As of January 20,2016)

After the Financing(As of January 22,2016)

ChangeTotal debt

91,699100,697

8,998

Appraisal value (Note 1)

214,952

225,262

10,310

42.2

44.0

1.8

LTV based on appraisalvalue (%) (Note 2)(Note 1)

(Note 2)

(Note 3)

With regard to appraisal value, the appraisal values of 111 properties held as of the end of December
2015 are the values as of such date. Furthermore, among the six properties scheduled to be acquired
as of January 22, 2016, the appraisal value of “Hotel MyStays Shinsaibashi” is the value as of November
1, 2015; the appraisal values of “Comfort Hotel Kurosaki”, “Comfort Hotel Maebashi”, “Comfort HotelTsubame-Sanjo”, “Comfort Hotel Kitami” and “Royal Parks Momozaka”, are the values as of November
20, 2015.
LTV (appraisal value basis) is calculated using the following formula;
LTV based on appraisal value = interest-bearing debt (excluding JPY 1,080 million borrowings
corresponding to the expected consumption tax refund, which is included in New Syndicate Loan (E) and
JPY 498 million borrowings corresponding to the expected consumption tax refund, which is included inTerm Loan (B)) / appraisal value x 100
The amount is rounded down to JPY million, and the percentage is rounded to the nearest first decimalplace.

This English language notice is a translation of the Japanese-language notice released on January 20, 2016 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

6