[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
December 10, 2018
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Partial Refund of TK Investment regarding TK Interest
with Overseas Real Estate as Underlying Assets
Invincible Investment Corporation (“INV”) announces that it has decided to receive a partial refundof the TK investment (the “Refund”) in connection with the TK interest backed by overseas realestate acquired on September 29, 2018 (Japan time), from Seven Mile Resort Holdings Ltd. (the“Cayman SPC”), the TK operator pertaining to the TK interest.
1.

Reasons for the Refund

As announced in “Notice concerning Acquisition of TK Interest with Overseas Real Estate as
Underlying Assets” dated July 17, 2018 and “Notice concerning Completion of Acquisition of Asset”
dated October 1, 2018, INV completed its investment in the Cayman SPC on September 28, 2018(Cayman Island local time), and the Cayman SPC acquired the Leasehold Interest in the Westin
Grand Cayman Seven Mile Beach Resort & SPA and the Sunshine Suites Resort (the “UnderlyingAssets”) on the same date.
In investing in the Cayman SPC, INV funded an amount which was reasonably estimated to enable
the Cayman SPC to acquire the Underlying Assets and other assets. However, based on theclosing settlement, the Cayman SPC did not need as much capital as anticipated resulting in asurplus of funds as of today. Therefore INV decided to receive a refund of the TK investment in theamount of USD 6.8 million from the Cayman SPC in order to enhance the efficiency of cashmanagement. As a result of the Refund, INV’s investment amount in the Cayman SPC will
decrease from its initial investment amount of USD 339,836,0001 to USD 333,036,0001 after theRefund. INV intends to effectively use the surplus cash to further enhance unitholder value. Also,
as a result of the lower TK investment amount, the new NOI yield2 based on the updated 2018
simulated NOI is 10.1%.
(Note 1)

INV fixed the exchange rate of 1 USD=110.45 JPY applicable to the TK investment by the foreign exchange
forward implemented in connection with the TK investment in the Cayman SPC (contract thereof was enteredinto on July 26, 2018 and implemented on September 26, 2018). Using such exchange rate of 1 USD=110.45

This English language notice is a translation of the Japanese-language notice released on December 10, 2018 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 based on
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 the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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(Note 2)2.

JPY, the initial investment amount in Japanese Yen denomination was JPY 37,534 million, while the investment
amount after the Refund will be JPY 36,783 million.
Newly calculated “NOI yield” of the Cayman Hotel TK Interest is calculated for reference by the following
formula; (Simulated NOI of the Underlying Assets - simulated cost in the Cayman SPC) ÷ the amount ofinvestment in the Cayman Hotel TK Interest after the Refund.
Simulated NOI of the Underlying Assets and simulated cost in the Cayman SPC are calculated based on theactual results from January 2018 to October 2018 and the forecasts from November 2018 to December 2018.
Simulated NOI of the Underlying Assets and simulated cost in the Cayman SPC include estimates, and are
different from actual NOI of the Underlying Assets and cost in the Cayman SPC and do not reflect the effect offoreign exchange hedging transactions.

Amount of Refund

USD 6.8 million (JPY 751 million1)(Note 1)

3.

INV fixed the exchange rate of 1 USD=110.45 JPY applicable to the TK investment by the foreign exchange
forward implemented in connection with the TK investment in the Cayman SPC (contract thereof was enteredinto on July 26, 2018 and implemented on September 26, 2018). Therefore, the amount of the Refund inJapanese Yen denomination is calculated and stated using such exchange rate of 1 USD=110.45 JPY.
Nevertheless, upon receiving the Refund in US dollars, INV will exchange it in Japanese Yen, using a spot
exchange rate. In the event discrepancy arises between the initial investment amount of JPY 751 million andthe amount in Japanese Yen denomination which INV received as the Refund calculated by such spot
exchange rate, such discrepancy will be recognized as foreign exchange profit or foreign exchange loss in thefiscal period ending December 2018.

Date of Refund

December 10, 2018 (Cayman Island local time)4.

Future OutlookThe impact to the INV’s financial results by the Refund is minimal and therefore no changes arerequired for the forecasts of the financial results for the fiscal period ending December 2018 (fromJuly1, 2018 to December 31, 2018) as announced in the “Financial Summary for the June 2018
Fiscal Period (from January 1, 2018 to June 30, 2018)” dated August 22, 2018.

Website of INV: http://www.invincible-inv.co.jp/eng

This English language notice is a translation of the Japanese-language notice released on December 10, 2018 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 based on
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 the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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