Translation of Japanese Original
February 26, 2021
To All Concerned Parties
REIT Issuer:
Kenedix Office Investment Corporation
Jiro Takeda, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Masahiko Tajima, President & CEO
Inquiries:
Hiroaki Momoi
Head of Planning Division
Office REIT Department
TEL: +81-3-5157-6010

Notice Concerning Sale of Property (KDX Hon-Atsugi 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 sell the following property (“the Sale”).
1. Outline of the Sale
(1)
(2)
(3)
(4)
(5)

Property Name
: KDX Hon-Atsugi Building (“the Property”)
Type of Property to be Sold
: Trust beneficiary interest in real estate
Anticipated Sale Price (Note 1) : 935 million yen
Assumed Book Value (Note 2) : 1,115 million yen
Difference between AnticipatedSale Price and Assumed Book : ▲180 million yen
Value: (3)-(4) (Note 3)(6) Buyer: Tosei Corporation (non-related party)(7) Date of Contract: February 26, 2021
(8) Scheduled Date of Sale
: April 30, 2021
(9) Use of Proceeds: Cash on hand(10) Settlement Method: Payment in full on settlement: The buyer was selected after interested buyers were introduced by several(11) Buyer Selection
major domestic brokerage firms, and the prices and conditions of the sale,etc. were confirmed.
Note 1: Transfer costs, adjustment of property tax and city-planning tax, consumption tax, etc. are excluded. (Amounts aretruncated to the nearest unit. The same applies below.)
Note 2: Assumed book value is as of scheduled date of sale.
Note 3: Figures are referential amount, calculated as a difference between anticipated sale price and assumed book value, anddifferent from gain or loss on sale.

12. Reason for the Sale
The Investment Corporation seeks to enhance the quality of the portfolio by arranging a reshuffle and sales ofproperties before potential deterioration in asset profitability. Moreover, a comprehensive consideration of thepresent and future portfolio structural objectives, the real estate market trends, and the characteristic assessment ofproperties within the portfolio are conducted, while engaging in acquisitions of properties according to management
strategies.
The Property is an office building which is approximately 25 years in age and is relatively small in comparison toother portfolio properties. The decline in profitability is due to an increase in operating expenses (e.g., repairs), anda stagnant occupancy rate; therefore, the Investment Corporation has decided to sell the Property with an aim to
improve the profitability of the portfolio.
Although the anticipated sale price is below the assumed book value as of the scheduled date of sale and the latest
appraisal value, the Investment Corporation judges the sale to be at an appropriate standard, based on future cash
flow assumptions, incorporating historical occupancy, leasing records, and market trends within the surroundingarea of the property.
Through the Sale, the portfolio of the Investment Corporation will stand at 96 properties (total: 440.1 billion yen).
The investment proportions of office buildings in the portfolio will be 99.3%, and the investment proportions of theTokyo Metropolitan Area (Note) in the portfolio will be 81.3% (Based on acquisition price.).
Note: Tokyo Metropolitan Area refers to major cities in Tokyo Metropolitan, Kanagawa, Saitama, and Chiba Prefectures.

3. Details of the Properties to be Sold
Property Name

KDX Hon-Atsugi Building

Type of Specified Asset

Trust beneficiary interest in real estate

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Location (Address)

4-9-18 Nakamachi, Atsugi, Kanagawa

Usage

Office・Retail shop

Type of Structure

Flat-roofed, Steel-framed reinforced concrete structure;
8 aboveground floors

Site Area
Type ofOwnershipLand

724.62 ㎡

Building (Total Floor Area)

3,603.63 ㎡

Land

Proprietary ownership

Building

Proprietary ownership

Completion Date

May 31, 1995

Acquisition Date

March 1, 2007

Acquisition Price

1,305 million yen

Appraisal

Appraisal Value

1,190 million yen

Base Date for Appraisal

October 31, 2020

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Details

Please refer to “9. Summary of Appraisal Report” below.

Details of Tenant

As of January 31, 2021

Security and Guarantee Deposit

59 million yen

Number of End Tenants

12

Total Leasable Area

2,755.71 ㎡

Total Leased Area

2,136.13 ㎡

Occupancy Rate

77.5％
2

Operating Results
Rent Revenue
Net Operating Income
Rental Operating Income (Net Operating
Income after Depreciation)

The total of the actual amounts for fiscal periods ended April 30,
2020 and October 31, 2020
74 million yen
33 million yen
5 million yen

4. Buyer’s Profile
Company Name
Location

Tosei Corporation
4-2-3 Toranomon, Minato-ku, Tokyo

Title and Name of Representative

Seiichiro Yamaguchi, President and CEO
Real estate revitalization/development/rental/fund andDescription of Businessconsulting/management, and hotel
Amount of Capital
Approx. 6,600 million yen (as of November 30, 2020)
Date of Incorporation
February 2, 1950
Seiichiro Yamaguchi（27.31％）、Zeus Capital Limited（12.71％）、
Major Shareholder
QUINTET PRIVATE BANK（EUROPE）S.A107704（8.00％）(as of November 30, 2020)
Net Assets
Approx. 58,969 million yen (as of November 30, 2020)
Total Assets
Approx. 161,684 million yen (as of November 30, 2020)
Relationship with the Investment Corporation or the Asset Management Company
There is no special capital relationship between the Investment Corporation
Capital Relationshipor the Asset Management Company.
There is no special personnel relationship between the Investment
Personnel Relationship
Corporation or the Asset Management Company.
There is no special business relationship between the Investment
Business Relationship
Corporation or the Asset Management Company.
The buyer is not a related party, etc. as defined in the Act on Investment
Applicability of Related Party Trusts and Investment Corporations (“the Investment Trust Act”) and not a
Relationships
related party as defined in the Office REIT Department Related-party
Transaction Rules of the Asset Management Company.
5. Details of Brokerage
The brokerage firm for the Property is not a related party, etc. as defined in the Investment Trust Act and not a
related party as defined in the Office REIT Department Related-party Transaction Rules of the Asset Management
Company.
6. Related-party Transaction
The sale of the Property does not constitute the related-party transaction.
7. Date of the Sale
Determination Date of the Sale
Transaction Agreement Execution Date

February 26, 2021

Settlement and Sale Date

April 30, 2021 (Scheduled)

Note: The trust beneficiary interest transaction agreement concluded with the buyer of the Property (“the Transaction
Agreement”) falls under the category of forward commitment, etc. by an investment corporation, as stipulated in theComprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. provided by Financial
Services Agency. If the Investment Corporation violates any of the provisions of the Transaction Agreement and then theTransaction Agreement is cancelled for the reason that purposes of the Transaction Agreement cannot be fulfilled due tosuch violation, the Investment Corporation shall pay a certain ratio of the transaction price from which consumption
taxes, etc. are excluded as a penalty fee. Such penalty fee is set at 10% of the anticipated sale price (93 million yen).

3

8. Outlook
As the impact of the Sale on the financial results for the fiscal period ending April 30, 2021 (November 1, 2020 toApril 30, 2021) and the fiscal period ending October 31, 2021 (May 1, 2021 to October 31, 2021) is minimal, there is
no change to the operating forecasts and distribution forecasts for the fiscal periods.
Though a loss on sale is expected to occur in the fiscal period ending April 30, 2021 (November 1, 2020 to April 30,2021) due to the Sale, the distribution forecast remains unchanged with the adjustment of provision of reserve for
reduction entry from the sale of KDX Shin-Nihonbashi Building.

49. Summary of Appraisal Report
Property Name

KDX Hon-Atsugi Building

Appraisal Value
Appraiser
Appraisal Date

1,190,000,000 yen
Daiwa Real Estate Appraisal Co., Ltd.
October 31, 2020
Unit: Yen
Item

Content

Basis

Income Capitalization Approach Value

1,190,000,000

Assess an amount by verifying the Value Calculated Using the
Direct Capitalization Method as well as handling Value
Calculated Using the Discounted Cash Flow Method as astandard

Value Calculated Using the
Direct Capitalization Method(1) Gross Operating Revenue

1,220,000,000

Maximum Gross Operating
Revenue
Shortfall Attributed to Vacancies(2) Operating Expenses

98,793,208
103,948,640
5,155,432
31,428,929

Maintenance Expenses

9,503,000

Utility Expenses

8,903,000

Repair Expenses

2,381,833

Property Management Fee

1,833,326

Tenant Recruitment Expenses, etc.
Taxes and Dues

756,886
7,365,500

Damage Insurance Fee

185,384

Other Expenses(3) Net Operating Income(NOI= (1)-(2))(4) Gain on Guarantee Deposit
Investment

500,000
67,364,279(5) Capital Expenditure

3,379,847(6) Net Cash Flow
(NCF=(3)+(4)-(5))

64,839,685(7) Capitalization Rate

5.3%

Value Calculated Using the
Discounted Cash Flow Method

Assess an amount based on the rent revenue, common area
charge revenue, parking revenue and other revenue, etc. thatare believed to remain stable over the medium and long term
Assess an amount based on the premise of an occupancy ratiothat is believed to remain stable over the medium and longterm

855,253

Assess an amount based on the actual maintenance expenses
and by verifying such amount by reference to the standards ofmaintenance expenses at similar properties
Assess an amount based on the actual utility expenses in thepast, and by verifying such amount by reference to the levelsof utility expenses at similar properties
Recognize an annual average amount of repair expenses,
judging such amount to be appropriate based on theengineering report
Assess a standardized PM fee ratio based on PM fee ratios atsimilar properties
Assess an amount in consideration of an estimated tenant
turnover and a vacancy rate, based on the levels of tenant
recruitment expenses, etc. at similar properties
Assess an amount based on the fiscal 2020 tax statement, etc.
Assess an amount based on actual insurance premium, and by
verifying such amount by reference to insurance premiums,
etc. at similar properties
Assess an amount based on actual other expenses in the past
Assess income from investments by using an investment returnof 1.0%Assess an annual average amount of renewal expenses basedon the engineering report, judging such amount to beappropriate, with CM fees added
Assess an amount by comprehensively taking into accountcomparison with transaction cases, etc. at similar properties,
the property’s location, the characteristics of the building, therights, the terms of contract, etc.

1,180,000,000

Discount Rate

5.1%

Terminal Capitalization Rate

5.5%

Assess an amount by comprehensively taking into accountcomparison with transaction cases, etc. at similar properties
and property’s unique characteristics by reference toinvestment yields of financial asset
Assess an amount by considering nature of net cash flow for
calculation of the capitalization rate, future uncertainty,
liquidity, marketability and other factors

Value Calculated Using the Cost Method
Land
Building

714,000,000
42.8%
57.2%

The Appraiser’s Points to Consider upon
Appraisal Other Than the Above

Nothing in particular5

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 February 26, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

6

Reference Material
Property Portfolio after the Sale
As of April 30, 2021
Type of Use

Office Buildings(Mid-size)

Area

5 Central Wardsof Tokyo

Property Name

Location

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

(Scheduled) Date of
Acquisition (Note 2)

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, 2020
March 30, 2016

KDX Toranomon 1chome Building

Minato-ku, Tokyo

15,5503.5%

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

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

6,090

1.3%

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

4,300

0.9%

November 12, 2010

KDX Hamamatsucho Center Building

Minato-ku, Tokyo

3,950

0.8%

September 1, 2015
August 2, 2016

KDX Shin-Nihonbashi Ekimae Building

Chuo-ku, Tokyo

3,829

0.8%

KDX Shinbashi Building (Note 2)

Minato-ku, Tokyo

3,728

0.8%

May 1, 2006

KDX Hatchobori Building

Chuo-ku, Tokyo

3,680

0.8%

August 1, 2005

KDX Ginza East Building

Chuo-ku, Tokyo

3,600

0.8%

March 13, 2015
August 10, 2017

KDX Shibuya Nanpeidai Building

Shibuya-ku, Tokyo

3,500

0.7%

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
March 31, 2008

KDX Jimbocho Building

Chiyoda-ku, Tokyo

2,760

0.6%

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
August 1, 2005

Harajuku F.F. Building

Shibuya-ku, Tokyo

2,450

0.5%

KDX Kajicho Building

Chiyoda-ku, Tokyo

2,350

0.5%

July 3, 2006

KDX Hamacho Nakanohashi Building

Chuo-ku, Tokyo

2,310

0.5%

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 First

Chuo-ku, Tokyo

2,200

0.4%

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

1,900

0.4%

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, 20077

Type of Use

Area

Tokyo
Metropolitan Area

Property Name

Location

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

(Scheduled) Date of
Acquisition (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, Tokyo

4,200

0.9%

December 1, 2006

KDX Ikebukuro Building

Toshima-ku, Tokyo

3,900

0.8%

November 18, 2013
February 1, 2008

KDX Kawasaki-Ekimae Hon-cho Building

Kawasaki, Kanagawa

3,760

0.8%

KDX Takadanobaba Building

Toshima-ku, Tokyo

3,650

0.8%

May 30, 2014

Koishikawa TG Building

Bunkyo-ku, Tokyo

3,080

0.6%

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

KDX Gotanda Building

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

0.4%

April 5, 2017
March 26, 2013(excluding 5 Central Wards)

Office Buildings(Mid-size)

Other
Regional Areas

KDX Omiya Building

Saitama, Saitama

2,020

0.4%

KDX Okachimachi Building

Taito-ku, Tokyo

2,000

0.4%

March 1, 2007

KDX Ikebukuro West Building

Toshima-ku, Tokyo

1,934

0.4%

September 3, 2014
September 21, 2012

KDX Nakameguro Building

Meguro-ku, Tokyo

1,880

0.4%

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 Hon-Atsugi Building

Atsugi, Kanagawa--

March 1, 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

KDX Sakura-dori Building

Nagoya, Aichi

5,900

1.3%

January 9, 2015

KDX Karasuma Building

Kyoto, Kyoto

5,400

1.2%

June 1, 2007

KDX Tosabori Building

Osaka, Osaka

5,000

1.1%

January 31, 2020

KDX Hakata-Minami Building

Fukuoka, Fukuoka

4,900

1.1%

February 1, 2008

KDX Shin-Osaka Building

Osaka, Osaka

4,550

1.0%

September 1, 2015

KDX Nagoya Nichigin-mae Building

Nagoya, Aichi

3,500

0.7%

March 15, 2016

KDX Kobayashi-Doshomachi Building

Osaka, Osaka

2,870

0.6%

December 1, 2010

KDX Higashi Umeda Building

Osaka, Osaka

2,770

0.6%

March 28, 2012

KDX Utsunomiya Building

Utsunomiya, Tochigi

2,350

0.5%

May 30, 2014

KDX Kitahama Building

Osaka, Osaka

2,220

0.5%

February 1, 2008

KDX Minami-Honmachi Building

Osaka, Osaka

2,200

0.4%

December 2, 2014

KDX Sendai Building

Sendai, Miyagi

2,100

0.4%

June 1, 2007
March 25, 2011

KDX Sapporo Building

Sapporo, Hokkaido

2,005

0.4%

KDX Sapporo Kitaguchi Building

Sapporo, Hokkaido

1,800

0.4%

July 20, 2017

KDX Hiroshima Building

Hiroshima, Hiroshima

1,300

0.2%

September 1, 2014

369,324

83.9%-

Total of 87 Office Buildings (Mid-size)

8Type of Use

Area

Property Name

Location

Ginza 4chome Tower
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

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

(Scheduled) Date of
Acquisition (Note 2)

Chuo-ku, Tokyo

9,800

2.2%

August 19, 2013

ARK Mori Building

Minato-ku, Tokyo

4,169

0.9%

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

September 21, 2005

5,570

1.2%

Total of 8 Office Buildings (Other)

67,975

15.4%-

Total of 95 Office Buildings

437,300

99.3%

Portfolio PML 2.29%

Shinjuku 6chome Building (Land)

2,880

0.6%

April 18, 2014

Total of 1 Others Property

Shinjuku-ku, Tokyo

2,880

0.6%

-

Total of 96 Properties

440,180

100.0%

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.

9

1,107

-

March 28, 2014

1,107

-

-