Translation of Japanese OriginalDecember 2, 2021

To All Concerned Parties

REIT Issuer:
Kenedix Office Investment Corporation
Hiroaki Momoi, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Masahiko Tajima, President & CEO
Inquiries:
Hiroaki Momoi
Head of Strategic Planning,
Office REIT Department
TEL: +81-3-5157-6010

Notice Concerning Partial Sale of Asset Pertaining to Land Expropriation(KDX Toranomon 1chome Building)Kenedix Office Investment Corporation (“the Investment Corporation”) has announced today, that Kenedix Real
Estate Fund Management, Inc. (“the Asset Management Company”), the asset management company for theInvestment Corporation, decided to partially sell the following property (“the Sale”).
1. Outline of the Sale
(1)
(2)

Property Name
: KDX Toranomon 1chome Building (“the Property”)
Type of Property to Be Sold
:Real estate (part of land, “the Asset to Be Sold”)(Note 1)
(3) Sale Price (Note 2): 1,702 million yen(4) Assumed Book Value (Note 3) : 943 million yen(5) Difference between
Sale Price and Assumed Book : 759 million yen
Value: (3)-(4) (Note 4)(6) Buyer: Tokyo Metropolitan Government (non-related party)(7) Date of Contract: December 2, 2021
(8) Date of Sale
: December 2, 2021
(9) Use of Proceeds: Cash on hand(10) Settlement Method: The payment is scheduled to be made after the completion of theregistration of the ownership transfer by the Tokyo MetropolitanGovernment, which is the buyer.
Note 1: The Property is owned as trust beneficiary interest, and Mitsubishi UFJ Trust and Banking Corporation, which is thetrustee, sell only the Asset to Be Sold as real estate in kind in the Sale.
Note 2: In addition to the sale price, 24 million yen is scheduled to be paid as compensation for property transfer pertaining to
the transfer of part of the ancillary structure on the Asset to Be Sold, and will be used as the cost of the construction
work to eliminate the structure. (Amounts are truncated to the nearest unit. The same applies below.)
Note 3: The amount is calculated by prorating the book value of the land of the Property as of the end of the 33rd fiscal period(October 31, 2021) for the land area pertaining to the Sale.
Note 4: The figure is the referential amount, calculated as the difference between the sale price and assumed book value, anddiffers from gain or loss on sale.

12. Reason for the Sale
The frontal road on the east side of the Property has been targeted in the “Tokyo Urban Planning Arterial Radial
Road No. 21 Development Project” since before and was approved as an urban planning project by the Ministry ofLand, Infrastructure, Transport and Tourism on March 20, 2019. Implementation of the Sale was decided following
discussions for land expropriation held between Tokyo Metropolitan Government, which intends to acquire thetargeted project site, and the Investment Corporation, as the land subject to the sale is not included in the land
portion of the building of the Property and has no impact on the leasing business.
3. Details of the Property to be Sold
Type of Specified Asset

Real estate (Land)

Location (Address)

1-10-5 Toranomon, Minato-ku, Tokyo

Land Category

Residential Land

Site Area

114.30 ㎡ of the 1,564.12 ㎡ site area

Type of Ownership

Proprietary ownershipSale Price

1,702 million yen

Appraisal Value (Note)

1,350 million yen

Note: The appraisal value with November 15, 2021, as the date of value estimate calculated by Japan Real Estate Institute isindicated.

4. Buyer’s Profile
Buyer

Tokyo Metropolitan Government

Relationship between theInvestment Corporation/AssetManagement Company and thebuyer

There is no special capital relationship between the Investment Corporationor the Asset Management Company. Also, the buyer is not a related party,etc. as defined in the Act on Investment Trusts and Investment
Corporations and not a related party as defined in the Office REIT
Department Related-party Transaction Rules of the Asset Management
Company.

5. Details of Brokerage
Not applicable for the Sale.
6. Impact of the Sale
(1) Appraisal Value for the Property
The Asset to Be Sold is part of the land of the Property and is not included in the land portion where the building
stands. Therefore, the Sale will have no impact on the rental revenue and the payments of taxes and public dues
will decrease, resulting in an increase in the appraisal value of the Property after the Sale.
Base Date for Appraisal
Appraisal Value
Before the Sale
October 31, 2021
23,300 million yen
After the Sale
November 15, 2021
23,500 million yenNote: The above figure is the appraisal value before and after the Sale for the entire land and building of KDX Toranomon
1chome Building calculated by Japan Real Estate Institute.

(2) Profitability and Legal Compliance
The Sale will have no impact on the leasing business and business performance.
In addition, due to the decrease in land area with the Sale, the Property is expected to exceed the stipulated
floor-area ratio and become an existing non-conforming building. Therefore, there is a possibility that buildings
with the same size as the current building cannot be constructed when conducting extension work in the future
and that there may be an impact upon property sales.
2

7. Related-party Transaction
The Sale does not constitute the related-party transaction.
8. Date of the Sale
Determination Date of the Sale,
Transaction Agreement Execution Date and Sale Date

December 2, 2021
After completion of registration of the ownershiptransfer by the buyer

Settlement Date
9. Outlook

The date of the Sale is in the fiscal period ending April 30, 2022 (November 1, 2021 to April 30, 2022) and there was
no impact of the Sale on the financial results for the fiscal period ended October 31, 2021 (May 1, 2021 to October 31,
2021. Therefore, the forecast of financial results for the fiscal period ended October 31, 2021 remains unchanged.
Though a gain from the Sale is expected to occur, the forecast of financial results for the fiscal period ending April 30,
2022 together with handling of the gain is scheduled to be disclosed at the time of announcement on financial results
for the fiscal period ended October 31, 2021.
10. Summary of Appraisal Report
Name of the Property

KDX Toranomon 1chome Building (Note 1)

Appraisal Value
Appraiser
Appraisal Date

1,350,000,000 yen
Japan Real Estate InstituteNovember 15, 2021

Combined Land Area

1,564.12 ㎡
Flat-roofed, Steel-framed reinforced concrete structure;
11 aboveground floors with 1 basement floor
Office・Retail shop・Parking lot
11,212.05 ㎡
Content

Type of Structure and Number of Floors
Usage
Total Floor Area

Item①：Investment amount of buildings, etc. (Note 2)

3,810,000,000 yen(340,000 yen /㎡)②：Income capitalization approach value of thebuilding and site③：Current value of ② (②×compound present valuerate (Note 3))④：Current value of the investment amount ofbuildings, etc. (①×compound present value rate(Note 4))⑤：Value calculated using the capitalization method
for the integrated land (③－④)

23,700,000,000 yen
22,064,700,000 yen
3,591,687,000 yen
18,500,000,000 yen(11,800,000 yen /㎡)
114.30 ㎡⑥：Appraised quantity⑦：Value calculated using the capitalization method(⑤unit price × ⑥)

1,350,000,000 yen

Note 1: Of the Property, the appraisal value for the targeted site in the Sale is indicated.
Note 2: The re-procurement cost of building is assessed at 310,000 yen/m2
Note 3: Compound present value rate corresponding to a discount rate of 3.8% when considering that it takes 23 months until
the completion and operation of the assumed buildings is 0.9310.
Note 4: Compound present value rate corresponding to a discount rate of 3.8% when assuming that the average expenditure
period of the investment amount of buildings, etc. is in the nineteenth month is 0.9427.

3

Attached Material
Reference Material：Property Portfolio after the Sale

The Investment Corporation’s website: https://www.kdo-reit.com/en/
This notice is the English translation of the Japanese announcement on our website released on December 2, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

4Reference Material
Property Portfolio after the Sale
As of December 2, 2021
Type of Use

Office Buildings(Mid-size)

Area

5 Central Wardsof Tokyo

Location(Anticipated) Acquisition
Price (million yen) (Note 1)

Ratio(Note 1)KDX Hamamatsucho Place

Minato-ku, Tokyo

20,700

4.7%

July 2, 2018

KDX Shinbashi Ekimae Building

Minato-ku, Tokyo

16,3003.7%

June 30, 2020KDX Toranomon 1chome Building

Minato-ku, Tokyo

14,616

3.3%

March 30, 2016

KDX Harumi Building

Chuo-ku, Tokyo

10,2502.3%

June 30, 2008

KDX Nishi-Shinbashi Building

Minato-ku, Tokyo

8,400

1.9%

February 1, 2017

Property Name

(Scheduled) Date ofAcquisition (Note 2)

Hiei Kudan-Kita Building

Chiyoda-ku, Tokyo

7,600

1.7%

February 1, 2008

KDX Shinjuku Building

Shinjuku-ku, Tokyo

6,800

1.5%

February 18, 2010

KDX Ochanomizu Building

Chiyoda-ku, Tokyo

6,400

1.4%

April 2, 2007

KDX Shiba-Daimon Building

Minato-ku, Tokyo

6,0901.3%

March 1, 2007

KDX Kojimachi Building

Chiyoda-ku, Tokyo

5,950

1.3%

November 1, 2005

KDX Nihonbashi 313 Building

Chuo-ku, Tokyo

5,940

1.3%

August 1, 2005

KDX Takanawadai Building

Minato-ku, Tokyo

5,250

1.1%

November 19, 2013

KDX Iidabashi Building

Shinjuku-ku, Tokyo

4,670

1.0%

July 22, 2011

KDX Ebisu Building

Shibuya-ku, Tokyo

4,640

1.0%

May 1, 2006

Higashi-Kayabacho Yuraku Building

Chuo-ku, Tokyo

4,450

1.0%

August 1, 2005

KDX Iidabashi Square

Shinjuku-ku, Tokyo

4,350

0.9%

January 10, 2014

KDX Ginza 1chome Building

Chuo-ku, Tokyo

4,3000.9%

November 12, 2010

KDX Hamamatsucho Center Building

Minato-ku, Tokyo

3,9500.8%

September 1, 2015

KDX Shin-Nihonbashi Ekimae Building

Chuo-ku, Tokyo

3,829

0.8%

August 2, 2016

KDX Shinbashi Building (Note 2)

Minato-ku, Tokyo

3,728

0.8%

May 1, 2006

KDX Hatchobori Building

Chuo-ku, Tokyo

3,6800.8%

August 1, 2005

KDX Ginza East Building

Chuo-ku, Tokyo

3,600

0.8%

March 13, 2015

KDX Shibuya Nanpeidai Building

Shibuya-ku, Tokyo

3,500

0.7%

August 10, 2017

KDX Hamamatsucho Building

Minato-ku, Tokyo

3,460

0.7%

May 1, 2006

KDX Kanda Ekimae Building

Chiyoda-ku, Tokyo

3,300

0.7%

February 7, 2020

KDX Mita Building

Minato-ku, Tokyo

3,180

0.7%

November 18, 2013

KDX Higashi-Shinjuku Building

Shinjuku-ku, Tokyo

2,950

0.6%

September 1, 2006

KDX Kayabacho Building

Chuo-ku, Tokyo

2,780

0.6%

May 1, 2006

KDX Jimbocho Building

Chiyoda-ku, Tokyo

2,760

0.6%

March 31, 2008

KDX Hakozaki Building

Chuo-ku, Tokyo

2,710

0.6%

July 22, 2011

KDX Akihabara Building

Chiyoda-ku, Tokyo

2,600

0.5%

November 19, 2013

KDX Yoyogi Building

Shibuya-ku, Tokyo

2,479

0.5%

September 30, 2005

Harajuku F.F. Building

Shibuya-ku, Tokyo

2,4500.5%

August 1, 2005

KDX Kajicho Building

Chiyoda-ku, Tokyo

2,350

0.5%

July 3, 2006

KDX Hamacho Nakanohashi Building

Chuo-ku, Tokyo

2,3100.5%

February 1, 2008

KDX Shinjuku 286 Building

Shinjuku-ku, Tokyo

2,300

0.5%

June 1, 2007

KDX Minami Aoyama Building

Minato-ku, Tokyo

2,270

0.5%

August 1, 2005

Nihonbashi Horidomecho FirstChuo-ku, Tokyo

2,2000.5%

August 19, 2013

Shin-toshin Maruzen Building

Shinjuku-ku, Tokyo

2,110

0.4%

February 29, 2008

KDX Nihonbashi 216 Building

Chuo-ku, Tokyo

2,010

0.4%

December 1, 2009

KDX Kanda Kitaguchi Building

Chiyoda-ku, Tokyo

1,950

0.4%

August 1, 2005

KDX Shinjuku 6-chome Building

Shinjuku-ku, Tokyo

1,9000.4%

September 13, 2013

KDX Iwamoto-cho Building

Chiyoda-ku, Tokyo

1,864

0.4%

May 1, 2008

KDX Nishi-Shinjuku Building

Shinjuku-ku, Tokyo

1,500

0.3%

April 2, 20075

Type of UseAreaTokyo
Metropolitan Area

Property Name

Location

OtherRegional AreasRatio(Note 1)(Scheduled) Date ofAcquisition (Note 2)

KDX Musashi-Kosugi Building

Kawasaki, Kanagawa

12,0002.7%

March 20, 2014

KDX Yokohama Kannai Building

Yokohama, Kanagawa

9,500

2.1%

January 31, 2018

KDX Yokohama Building

Yokohama, Kanagawa

7,210

1.6%

October 29, 2014

KDX Fuchu Building

Fuchu, Tokyo

6,120

1.3%

September 21, 2012

Toshin 24 Building

Yokohama, Kanagawa

5,300

1.2%

May 1, 2006

KDX Higashi-Shinagawa Building

Shinagawa-ku, Tokyo

4,590

1.0%

July 22, 2011

KDX Nishi-Gotanda Building

Shinagawa-ku, Tokyo4,2000.9%

December 1, 2006

KDX Ikebukuro Building

Toshima-ku, Tokyo

3,900

0.8%

November 18, 2013

KDX Kawasaki-Ekimae Hon-cho Building

Kawasaki, Kanagawa

3,760

0.8%

February 1, 2008

KDX Takadanobaba Building

Toshima-ku, Tokyo

3,650

0.8%

May 30, 2014

Koishikawa TG Building

Bunkyo-ku, Tokyo

3,080

0.7%

November 18, 2009

KDX Kasuga Building

Bunkyo-ku, Tokyo

2,800

0.6%

September 21, 2012

KDX Yokohama Nishiguchi Building

Yokohama, Kanagawa

2,750

0.6%

December 2, 2014

Shinagawa-ku, Tokyo

2,620

0.5%

November 18, 2009

KDX Nakano-Sakaue Building

Nakano-ku, Tokyo

2,533

0.5%

August 1, 2005

KDX Shin-Yokohama Building

Yokohama, Kanagawa

2,520

0.5%

May 1, 2006

KDX Funabashi Building

Funabashi, Chiba

2,252

0.5%

March 1, 2006

BR Gotanda

Shinagawa-ku, Tokyo

2,200

0.5%

April 5, 2017

KDX Omiya Building

Saitama, Saitama

2,020

0.4%

March 26, 2013(excluding 5 Central Wards) KDX Gotanda Building

Office Buildings(Mid-size)(Anticipated) Acquisition
Price (million yen) (Note 1)

KDX Okachimachi Building

Taito-ku, Tokyo

2,0000.4%

March 1, 2007

KDX Ikebukuro West Building

Toshima-ku, Tokyo

1,934

0.4%

September 3, 2014

KDX Nakameguro Building

Meguro-ku, Tokyo

1,880

0.4%

September 21, 2012

KDX Kiba Building

Koto-ku, Tokyo

1,580

0.3%

June 20, 2006

KDX Monzen-Nakacho Building

Koto-ku, Tokyo

1,400

0.3%

January 19, 2007

KDX Tachikawa Ekimae Building

Tachikawa, Tokyo

1,267

0.2%

December 26, 2011

KDX Hachioji Building

Hachioji, Tokyo

1,155

0.2%

March 1, 2007

KDX Nagoya Sakae Building (Note 2)

Nagoya, Aichi

7,550

1.7%

April 25, 2008

KDX Nagoya Ekimae Building

Nagoya, Aichi

7,327

1.6%

December 26, 2011
January 9, 2015

KDX Sakura-dori Building

Nagoya, Aichi

5,9001.3%

KDX Karasuma Building

Kyoto, Kyoto

5,4001.2%

June 1, 2007

KDX Tosabori Building

Osaka, Osaka

5,000

1.1%

January 31, 2020

KDX Hakata-Minami Building

Fukuoka, Fukuoka

4,9001.1%

February 1, 2008

KDX Shin-Osaka Building

Osaka, Osaka

4,550

1.0%

September 1, 2015

KDX Nagoya Nichigin-mae Building

Nagoya, Aichi

3,5000.7%

March 15, 2016

KDX Kobayashi-Doshomachi Building

Osaka, Osaka

2,8700.6%December 1, 2010

KDX Higashi Umeda Building

Osaka, Osaka

2,7700.6%

March 28, 2012

KDX Utsunomiya Building

Utsunomiya, Tochigi

2,3500.5%

May 30, 2014

KDX Kitahama Building

Osaka, Osaka

2,2200.5%

February 1, 2008

KDX Minami-Honmachi Building

Osaka, Osaka

2,2000.5%

December 2, 2014

KDX Sendai Building

Sendai, Miyagi

2,1000.4%

June 1, 2007

KDX Sapporo Building

Sapporo, Hokkaido

2,0050.4%

March 25, 2011

KDX Sapporo Kitaguchi Building

Sapporo, Hokkaido

1,8000.4%

July 20, 2017

KDX Hiroshima BuildingHiroshima, Hiroshima

1,300

0.2%

September 1, 2014

368,391

83.8%-Total of 87 Office Buildings (Mid-size)

6Type of Use

Area

5 Central Wardsof Tokyo

Office Buildings(Other)Tokyo Metropolitan Area
(excluding 5 Central Wards)

Other
Regional Areas

OthersInvestment Security

5 Central Wardsof Tokyo

5 Central Wardsof Tokyo

Property Name

Location(Anticipated) Acquisition
Price (million yen) (Note 1)

Ratio(Note 1)(Scheduled) Date ofAcquisition (Note 2)

Ginza 4chome Tower

Chuo-ku, Tokyo

9,800

2.2%

August 19, 2013

ARK Mori Building

Minato-ku, Tokyo4,1690.9%

December 1, 2016

Pentel Building (Note 3)

Chuo-ku, Tokyo

3,350

0.7%

March 26, 2015

Mitsubishijuko Yokohama Building

Yokohama, Kanagawa

14,7203.3%

December 7, 2017

KDX Chofu Building

Chofu, Tokyo

8,700

1.9%

Jule 14, 2019

KDX Toyosu Grand Square

Koto-ku, Tokyo

8,666

1.9%

May 30, 2014

Senri Life Science Center Building

Toyonaka, Osaka

13,0002.9%

October 15, 2014

Portus Center Building

Sakai, Osaka

5,570

1.2%

September 21, 2005

Total of 8 Office Buildings (Other)

67,975

15.4%-Total of 95 Office Buildings

436,366

99.3%

Portfolio PML 3.3%

2,880

0.6%

April 18, 2014
-Shinjuku 6chome Building (Land)

Shinjuku-ku, Tokyo

Total of 1 Others Property

2,880

0.6%

Total of 96 Properties

439,246

100.0%

1,107-March 28, 2014

1,107--

G. K. KRF43 Silent Partnership Equity Interest

Shinjuku-ku, Tokyo

Total of 1 Investment Security
Note 1: The (anticipated) acquisition prices and ratios are rounded down to the nearest million and first decimal place respectively.
Note 2: For the property with multiple acquisition dates due to additional acquisition, etc., the first acquisition date is shown.
Note 3: Building, site and the land for Pental Building are counted as one property.

7