[For Information Purpose Only]
June 23, 2014
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: Akiko Watanabe, Manager(Tel. +81-3-5411-2731)

Notice concerning Debt Financing andPrepayment of Existing Borrowings
Invincible Investment Corporation (INV) has determined to obtain new debt financing and toprepay certain existing borrowings. Details are as follows.
1. Reason for borrowing and prepayment
INV entered into a loan agreement as of June 23, 2014 to fund a portion of the acquisition of 18
hotel properties (in the form of trust beneficiary interests) (note 1) scheduled between July 17,
2014 and July 22, 2014 and to obtain a new syndicate loan (New Syndicate Loan (C)) with aninterest rate of 0.80% plus one-month JPY TIBOR to refinance the two existing syndicate loans(New Syndicate Loan (A) and New Syndicate Loan (B)) which have an average interest rate of
1.5% plus one-month JPY TIBOR (the “Refinancing”).
All three “megabanks” participating as lenders in the New Syndicate Loan (B) obtained in May
2014, namely Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
and Mizuho Bank, Ltd., will continue to participate as lenders in the New Syndicate Loan (C),which will lengthen borrowing period, further reduce borrowing costs, enhance debt service
coverage ratio, strengthen lender formation and secure greater financing availability andflexibility, as well as strengthen our revenue base through the acquisition of the 18 hotel
properties mentioned above.
INV believes that the Refinancing will enhance INV’s financial position and will serve as thebasis for implementing financial strategies such as procuring unsecured borrowings andobtaining credit ratings.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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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(Note 1) For details on the acquisition of the 18 hotel properties, please refer to the press release dated as of today
entitled “Notice concerning Acquisition of Assets and Entering into Leasing Contract”.

2. Details of the New Borrowing (anticipated)
New Syndicate Loan (C)(1) Lender: Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Citibank Japan Ltd.
Shinsei Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited(2) Borrowing amount: JPY57,300 million(3) Interest rate, etc.
: One-month JPY TIBOR (Base Rate) + spread (0.8%);
provided that for the first interest calculation period only,
two-month JPY TIBOR + spread (0.8%) (note1)
Variable interest rate(4) Borrowing method: Borrowing based on separate term loan agreement dated
as of June 23, 2014
Secured (Note 2) / with no guarantee(5) Agreement date
: June 23, 2014
(6) Anticipated borrowing date
: July 17, 2014 (Note 3)(7) Interest payment date
: On (1) the last Japanese business day of each month
before the principal maturity date, beginning with August29, 2014, and (2) the principal maturity date
(8) Principal repayment method : Lump-sum repayment on the principal maturity date
(9) Principal Maturity Date
: July 14, 2017
・Base rate applicable to the interest calculation period for interests to be paid on the relevant interest
payment date shall be one-month JPY TIBOR announced by Japanese Bankers Associations two
Japanese business days prior to the immediately preceding interest payment date.
・ JPY TIBOR announced by the Japanese Bankers Associations is available at its website(http://www.zenginkyo.or.jp/en/tibor/).
・Details of our debt financing is available at the “Borrowings & Investment Corporation Bonds” page of
INV’s website (http://www.invincible-inv.co.jp/eng/cms/loan.html)(Note 2) First priority pledges over the real estate trust beneficiary interests for 65 properties: Nisshin
Palacestage Daitabashi, Nisshin Palacestage Higashi-Nagasaki, Growth Maison Gotanda, Growth
Maison Kameido, Emerald House, Harmonie Ochanomizu, Suncrest Shakujii Koen, Growth Maison
Shin-Yokohama, Belle Face Ueno Okachimachi, Grand Rire Kameido, Growth Maison Ikebukuro,
Growth Maison Yoga, Route Tachikawa, Shibuya Honmachi Mansion, City Heights Kinuta, Acseeds
Tower Kawaguchi Namiki, Capital Heights Kagurazaka, College Square Machida, Belair Meguro,
Wacore Tsunashima I, Foros Nakamurabashi, Growth Maison Kaijin, College Square Machiya, City
House Tokyo Shinbashi, Winbell Kagurazaka, Nishiwaseda Crescent Mansion, Lexington Square
Akebonobashi, Casa Eremitaggio, Towa City Coop Shinotsuka II, Bichsel Musashiseki, Lexel Mansion
Ueno Matsugaya, Towa City Coop Sengencho, Royal Park Omachi, Lexington Square Haginomachi,
Visconti Kakuozan, Lexington Square Daitabashi, Lexington Square Honjo Azumabashi, AMS(Note1)This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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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(Note 3)

TOWER Minami 6-Jo, Spacia Ebisu, Kindai Kagakusha Building, Lexington Plaza Nishigotanda,
Cross Square NAKANO, Ohki Aoba Building, Lexington Plaza Hachiman, AEON TOWN Sukagawa,
Hotel MyStays Kanda, Hotel MyStays Asakusa, Hotel MyStays Kyoto-Shijo, MyStays Shin Urayasu
Conference Center, Hotel MyStays Maihama, Hotel Vista Premio Dojima, Hotel MyStays
Nagoya-Sakae, Hotel MyStays Sakaisuji-Honmachi, Hotel MyStays Yokohama, Hotel MyStays
Nippori, Hotel MyStays Fukuoka-Tenjin-Minami, Flexstay Inn Iidabashi, Hotel MyStays Ueno Inaricho,
Flexstay Inn Shinagawa, Flexstay Inn Tokiwadai, Flexstay Inn Sugamo, Hotel MyStays Otemae,
Flexstay Inn Kiyosumi Shirakawa, Flexstay Inn Nakanobu P1 and Flexstay Inn Nakanobu P2. Firstpriority mortgages over two real estate properties: Shinjuku Island and Stop Parking Kanda-Sudacho.
Floating lien over nine properties: Hotel MyStays Kanda, Hotel MyStays Kyoto-Shijo, MyStays ShinUrayasu Conference Center, Hotel MyStays Maihama, Hotel Vista Premio Dojima, Hotel MyStays
Nagoya-Sakae, Hotel MyStays Sakaisuji-Honmachi, Hotel MyStays Yokohama and Hotel MyStays
Fukuoka-Tenjin-Minami.
As noted in “Notice concerning Acquisition of Assets and Entering into Leasing Contract” dated today,
the acquisition date for the 18 hotel properties is subject to change and could be as late as July 22,
2014. In case the acquisition date changes, then the borrowing date will also be changed to the samedate.

3. Details of Prepayment (anticipated)< New Syndicate Loan (A) > (prepayment)(1) Lender: Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Shinsei Bank, Limited
Citibank Japan Ltd.
Shinsei Trust & Banking Co., Ltd.
Aozora Bank, Ltd.
(2) Outstanding borrowing: JPY17,569 million
amount before
Repayment(Initial loan amount): (JPY20,350 million)(3) Repayment amount: JPY17,569 million(4) Borrowing amount: JPY0 million
outstanding after repayment(5) Source of repayment: The repayment of the New Syndicate Loan (A) and the New
Syndicate Loan (B) below will be funded by a portion of theproceeds from the New Syndicate Loan (C) (JPY57,300
million) as described in “2. Details of the New Borrowing(anticipated)”.
(6) Interest rate
: 1.64636%(from May 30, 2014 to June 29, 2014)
Variable interest rate(7) Borrowing method: Borrowing based on the term loan agreement dated as ofDecember 17, 2013
Secured / with no guarantee(8) Borrowing date
: December 20, 2013(9) Principal Maturity date
: December 20, 2016
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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.

3(9) Anticipated repayment date
(Note): July 17, 2014 (Note)

If the borrowing date for the New Syndicate Loan (C) is changed, then the repayment date will bechanged to the same date.

< New Syndicate Loan (B) > (prepayment)(1) Lender: Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited(2) Outstanding borrowing: JPY13,500 million
amount before
Repayment(Initial loan amount): (JPY13,500 million)(3) Repayment amount: JPY13,500 million(4) Borrowing amount: JPY0 million
outstanding after repayment(5) Source of repayment: The repayment of the New Syndicate Loan (A) and the New
Syndicate Loan (B) below will be funded by a portion of theproceeds from the New Syndicate Loan (C) (JPY57,300
million) as described in “2. Details of the New Borrowing(anticipated)”.
(6) Interest rate
: 0.98000%(from May 23, 2014 to June 29, 2014)
Variable interest rate(7) Borrowing method: Borrowing based on a separate term loan agreement dated
as of May 21, 2014
Secured / with no guarantee(8) Borrowing date
: May 23, 2014(9) Principal Maturity date
: May 23, 2015(9) Anticipated repayment date : July 17, 2014 (Note)(Note)

If the borrowing date for the New Syndicate Loan (C) is changed, then the repayment date will bechanged to the same date.

4. Future outlook
We expect to record loan-related costs in the amount of JPY300 million in the fiscal period
ending June 2014 and JPY244 million in the fiscal period ending December 2014 as
one-time expenses for the Refinancing.
Additionally, for the forecasted financial results and distributions in relation to theRefinancing for the fiscal period ending June 2014 (January 1, 2014 to June 30, 2014) andfor the fiscal period ending December 2014 (July 1, 2014 to December 31, 2014), pleaserefer to the press release entitled “Notice concerning Revision of Forecast of Financial
Results and Distribution for the 22nd Fiscal Period Ending June 2014 and concerningThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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.

4Forecast of Financial Results and Distribution for the 23rd Fiscal Period Ending December
2014” dated as of today.
5. Other matters necessary for appropriate understanding and decision by investors
For risks relating to the Refinancing, please refer to the “Investment Risks” (toshi risuku) inthe semi-annual securities report (yuka shoken hokokusho) of INV for the fiscal period
ended December 2013 (July 1, 2013 – December 31, 2013) (available in Japanese only),
filed on March 26, 2014, as well as “Section Two: Supplemental Information, 8. Investment
Risks” in the securities registration statement (yuka shoken todokedesho) of INV filed today(available in Japanese only).

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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 Refinancing＞
The table below provides an overview of the borrowings of INV before the Refinancing.
Information which will be updated in connection with the Refinancing are underlined in each of thetables below.
(Before the Refinancing: as of May 30, 2014)
LenderBorrowingdate

Borrowingamount(mn JPY)

Interest
rate (perannum)

Maturity
date

Security /guarantee

13,5000.98000%
VariableInterest
Rate

May 22,
2015

Secured /non guarantee

December20, 2016

Secured /non guarantee

March 31,2018

Secured/non guarantee

March 31,2019

Secured/non guarantee

March 31,2020

Secured/non guarantee

March 31,2019

Secured/non guarantee

Sumitomo Mitsui Banking Corporation
New
Syndicate
Loan (B)The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.

May 23,2014(Note 1)

Sumitomo Mitsui Trust Bank, Limited

Subtotal of short-term debt

13,500Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
New
Syndicate
Loan (A)Shinsei Bank, Limited
Citibank Japan Ltd.

December20, 2013

17,5691.64636%
VariableInterest
Rate(Note 2)

Shinsei Trust & Banking Co., Ltd.
Aozora Bank, Ltd.

Subtotal of long-term debt

Prudential
LPS Loan
B(Note 3)

17,569Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

2,700

Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

2,860

Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

1,830

Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

2,570

Subtotal of long-term debt in trust

1.9%
Fixed
interest
1.9%
Fixed
interest
1.9%
Fixed
interest
1.9%
Fixed
interest

9,960This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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Total debt
(Note 1)

(Note 2)
(Note 3)(Note 4)41,0291.49%(Note 4)

Interest rate applicable to the period from May 23, 2014 to June 29, 2014.
One-month JPY TIBOR + spread (0.8%); provided that for the first interest calculation period only,
two-month JPY TIBOR + spread (0.8%)
Interest rate applicable from May 30, 2014 to June 29, 2014.
One-month JPY TIBOR + spread (1.5%)
INV received the borrowed funds (after deducting reserves and other proceeds) from Mitsubishi UFJ Trustand Banking Corporation (hereinafter, “Mitsubishi UFJ Trust”) as payment of the trust principal of theTrust Beneficiary Interests (“TBI”) on September 28, 2012. On the same day, Mitsubishi UFJ Trust, thetrustee of the TBI to which INV is the beneficiary, borrowed funds from Prudential Mortgage Asset
Holdings 1 Japan Investment Limited Partnership, which is a part of the Prudential Financial Inc. Group.
Interest rate (per annum) provided in Total debt is the weighted average interest rate based on the
borrowing amount, rounded to the nearest two decimal places. The borrowing amount is rounded down to
the nearest million JPY.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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 Refinancing.
(After the Refinancing: as of July 17, 2014 (anticipated))
LenderBorrowingdate

Borrowingamount(mn JPY)

July 17,2014

57,300Interest
rate (perannum)

Maturity
date

Security/
guarantee

July 14,2017

Secured/non guarantee

March 31,2018

Secured/non guarantee

March 31,2019

Secured/non guarantee

March 31,2020

Secured/non guarantee

March 31,2019

Secured/non guarantee

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
New
Syndicate
Loan (C)Citibank Japan Ltd.

Variable(Note 1)

Shinsei Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited

Subtotal of long-term debt

Prudential
LPS LoanB

57,300Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

2,700

Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

2,860

Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

1,830

Prudential Mortgage Asset Holdings 1 Japan
Investment Limited Partnership

September
28, 2012

2,570

Subtotal of long-term debt in trust

9,960

1.09%
(Note 2)One-month JPY TIBOR + spread (0.8%); provided that for the first interest calculation period only,
two-month JPY TIBOR + spread (0.8%)
Interest rate (per annum) provided in Total debt is the weighted average interest rate, rounded to thenearest two decimal places. In addition, the interest rate for New Syndicate Loan (C) is calculated basedon the assumption that a one-month JPY TIBOR as of May 30, 2014 applies. The borrowing amount isrounded down to the nearest million JPY.
Total debt

(Note 1)
(Note 2)

1.9%
Fixed
interest
1.9%
Fixed
interest
1.9%
Fixed
interest
1.9%
Fixed
interest

67,260This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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.

8[For reference only]
Borrowing amount outstanding as of July 17, 2014 (anticipated)

Short-term debt
Long-term debt
Total debt

(Units: mn JPY, figures rounded down to the nearest mn JPY)
Before Refinancing
After Refinancing
Balance(As of May 30, 2014)(As of July 17, 2014)
13,500(13,500)
27,52967,26039,731
41,02967,26026,231This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown 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.

9