May 18, 2007
For Immediate Release
LCP Investment Corporation
Nihon-bashi Nishikawa Bldg.,
1-5-3 Nihon-bashi, Chuo-ku, Tokyo
Shunji Miyazaki: Executive Officer(Securities Code: 8980)
The LCP REIT Advisors Co., Ltd.
Nihon-bashi Nishikawa Bldg.,
1-5-3 Nihon-bashi, Chuo-ku, Tokyo
Shunji Miyazaki: CEO
Inquiries:
The LCP REIT Advisors Co., Ltd.
Yuji Kubo: CFO
TEL: +81-3-3272-7311
Notice concerning Acquisition of Assets
LCP Investment Corporation (the “Investment Corporation”) is pleased to announce today that it has
acquired the following three assets with details below.
Property

Property Name

Use

Type of Assets

NumberScheduled Acquisition Price(¥ in millions)

S-5

Bon Sejour Komaki

Senior Property

Real Estate

1,940

S-6

Bon Sejour Hadano Shibusawa

Senior Property

Real Estate

962

S-7

Bon Sejour Itami

Senior Property

Real Estate

748

-

Total

-

-

3,650

1, Outline of Acquisition(1) Bon Sejour Komaki(i) Property Name: Bon Sejour Komaki(ii) Type of Assets of Scheduled Acquisition: Real Estate(iii) Category of Properties: Senior Properties(iv) Scheduled Acquisition Price (*1): 1,940 million yen

(v) Scheduled Date of Purchase Agreement: May 22, 2007(vi) Scheduled Date of Acquisition: May 22, 2007(vii) Seller (*2): Zecs Community Corporation (*3)(viii) Acquisition Funds: Borrowing funds and own capital are planned to be the acquisition funds.
(2) Bon Sejour Hadano Shibusawa(i) Property Name: Bon Sejour Hadano Shibusawa(ii) Type of Assets of Scheduled Acquisition: Real Estate(iii) Category of Properties: Senior Properties(iv) Scheduled Acquisition Price (*1): 962 million yen(v) Scheduled Date of Purchase Agreement: May 22, 2007(vi) Scheduled Date of Acquisition: May 22, 2007(vii) Seller (*2): Zecs Community Corporation (*3)(viii) Acquisition Funds: Borrowing funds and own capital are planned to be the acquisition funds.
(3) Bon Sejour Itami(i) Property Name: Bon Sejour Itami(ii) Type of Assets of Scheduled Acquisition: Real Estate(iii) Category of Properties: Senior Properties(iv) Scheduled Acquisition Price (*1): 748 million yen(v) Scheduled Date of Purchase Agreement: May 22, 2007(vi) Scheduled Date of Acquisition: May 22, 2007(vii) Seller (*2): Zecs Community Corporation (*3)(viii) Acquisition Funds: Borrowing funds and own capital are planned to be the acquisition funds.
(*1) Scheduled acquisition price does not include the acquisition fee, property tax, city planning tax and consumption
tax, etc. and any amount less than a million yen is rounded off to the nearest million yen.
(*2) Please refer to 6. Seller’s Profile below.
(*3) Please refer to 4. Management of Senior Properties below.

2, Reason for Acquisition
The Investment Corporation has acquired the three properties described above in order to (i) securesteady growth and stable profits from a mid to long-term perspective in accordance with the “asset
management objectives and policies” provided in the Investment Corporation’s Articles ofIncorporation and (ii) increase the number of good senior properties.

3, Summary of Property
Please refer to “Summary of Assets of Scheduled Acquisition” described in the “Exhibit” below.
4, Management of Senior Properties(i) Management
Regarding management of senior properties, we try to manage such properties effectively byutilizing the know-how of Zecs Co., Ltd., which is the parent company of Zecs Investment AdvisoryCo., Ltd. (a shareholder of the Asset Management Company) and has experience in managing seniorproperties. Zecs Co., Ltd. manages a total of 31 senior properties: four senior housings for healthyelderly people in the “Charming Series”, 25 senior homes for people in need of nursing care in the“Bon Sejour Series” (including three properties to be acquired this time) and two other types ofsenior properties, through its consolidated subsidiary company. Zecs Community Corporation, which
is a consolidated subsidiary company of Zecs Co., Ltd. and a seller of three aforementioned
properties, manages a total of 27 properties, excluding the four senior housings in the “Charming
Series” mentioned above.
(ii) Establishment of Back-up Operator
In principle, the Investment Corporation sets up a back-up operator who leases senior properties andengages in the management thereof instead of the operator of such properties in case that certain
cases, such as rent default over a certain period or bankruptcy, happen to such operator, in order toimprove management stability in consideration of public and social interests concerning themanagement of senior properties. We believe this enables us to provide a more stable service toresidents. Regarding the three properties to be acquired this time in addition to the four fee-paying
senior homes already held, Japan Care Service Co., Ltd. (listed on the JASDAQ Securities
Exchange) is scheduled to be a back-up operator based on the Memorandum concluded with Japan
Care Service Co., Ltd.
5, Matters related to Building Resistance against Earthquakes
The adequacy of structural calculation of the aforementioned three properties has been reported by athird party institution through investigations as follows.
(i)

Investigator

Company’s Name

Tokio Marine & Nichido Risk Consulting Co., Ltd.

Location (Head Office)1-2-1, Marunouchi, Chiyoda-ku, Tokyo

Representative

Tomohisa Yamada

Capital1 billion yen

Business Activities

Due diligence inspection of real estate, etc.

Relationship with the Investment Corporation

(ii)

None

Contents of Investigation: Verification and Inspection of Structural Calculation Report andrelated Design and Specification Report(iii)

Result of Investigation: It has been determined, to the extent of this investigation, that there
is no evidence that the architect intentionally modified the structural calculation report andthat, regarding the structural design of the property, such design conforms to the regulationsof the Building Standards Law and its enforcement order, etc. concerning resistance against
earthquakes.

6, Seller’s Profile
Seller of the three properties shown above
Company’s Name

Zecs Community Corporation

Location (Head Office)1-7, 1-chome, Uchisaiwai-cho, Chiyoda-ku, Tokyo

Representative

Hideyo Honma

Capital

80 million yen (as of May 31, 2006)

Business Activities

Management of senior properties

Relationship with theZecs Community Corporation is a consolidated subsidiary company of Zecs Co., Ltd.,

Investment Corporation

who is the parent company of Zecs Real Estate Investment Advisory Co., Ltd. holding
7.07% of the issued shares of the Asset Management Company.

7, Seller’s Situation(i) Bon Sejour Komaki
Previous Owner

Owner before
previous owner

Company’s Name

Zecs Community Corporation

Other than special
stakeholder

RelationshipwithSpecial

Stakeholder
Circumstances/Reason

The party similar to a sponsor-related party under the
self-regulation of the Asset Management Company.

for

Acquisition for the purpose of management of seniorTransaction

properties

Acquisition Price

Not to be disclosed due to a confidentiality provision in thePurchase/Sales Agreement with the previous owner.

Acquisition Date

January 2006

(ii) Bon Sejour Hadano Shibusawa
Previous Owner

Owner before
previous owner

Company’s Name

Zecs Community Corporation

Other than special
stakeholder

Relationshipwithspecialstakeholder

The party similar to a sponsor-related party under the
self-regulation of the Asset Management Company.

Circumstances/Reasonfor

Acquisition for the purpose of management of seniorTransaction

properties

Acquisition Price

Not to be disclosed due to a confidentiality provision in thePurchase/Sales Agreement with the previous owner.

Acquisition Date

July 2006(iii) Bon Sejour Itami
Previous Owner

Owner before
previous owner

Company’s Name

Zecs Community Corporation

Other than special
stakeholder

Relationshipwithspecialstakeholder
Circumstances/Reason

The party similar to a sponsor-related party under the
self-regulation of the Asset Management Company.

for

Acquisition for the purpose of management of seniorTransaction

properties

Acquisition Price

Not to be disclosed due to a confidentiality provision in thePurchase/Sales Agreement with the previous owner.

Acquisition Date

January 2006

8, Transactions with Stakeholders, etc.
Zecs Community Corporation, which is the seller of the three properties above, is a consolidated
subsidiary company of Zecs Co., Ltd., who is the parent company of Zecs Real Estate Investment
Advisory Co., Ltd. holding 7.07% of the issued shares of the Asset Management Company. Zecs
Community Corporation falls under the category of a party similar to a sponsor-related party (*)
under self-regulation by the Asset Management Company, which is a measure to prevent conflicts ofinterest concerning asset management of the Investment Corporation. Therefore, with respect to theconclusion of the Purchase/Sales Agreement related to the acquisition of the aforementioned assets,
it is deliberated and resolved in accordance with the said self-regulation.
In addition, regarding the aforementioned assets, the Investment Corporation is scheduled to leasethe buildings and entrust the business of property management to Zecs Community Corporation.
These transactions are also deliberated and resolved in accordance with self-regulation related to themeasure to prevent conflicts of interest mentioned above.
(*) Sponsor-related party means:(a) Party or person who falls under the category of Related-Parties, etc. defined by the Law concerning Investment
Trusts and Investment Corporations;(b) All shareholders of the Asset Management Company; and(c) Special Purpose Company which entrusts its asset management to a party or a person falling under the categoryof (b) above, or shares or Tokumei Kumiai Mochibun (note) of which are held by a party or a person fallingunder the category of (b) above.
(Note) Tokumei Kumiai Mochibun means equity interests of capital contribution in undisclosed associations.

9, Brokerage Summary
Regarding the above three properties to be acquired, The Chuo Mitsui Trust and Banking Company
Ltd. will mediate each property’s transaction between the Investment Corporation and Zecs
Community Corporation as a brokerage company. The Chuo Mitsui Trust and Banking Company
does not fall under the category of a sponsor-related party under self-regulation by the AssetManagement Company, which is a measure to prevent conflicts of interest concerning asset
management of the Investment Corporation. Regarding the acquisition of the three properties shown
above, the Investment Corporation will pay 36,500,000 yen (excluding consumption tax) as a
brokerage fee to The Chuo Mitsui Trust and Banking Company, Ltd.
10, Form of Payment
With respect to the aforementioned three properties, the Investment Corporation plans to make alump-sum payment of the acquisition price to the seller on the scheduled date of acquisition.
11, Forecasts of Financial Results
With respect to the effect of the acquisition on the forecasts of the financial results of the Investment
Corporation for the fiscal period ending August 31, 2007 (from March 1, 2007 to August 31, 2007),
please refer to the “Notice concerning Revisions of Forecasts of Financial Results for the Fiscal
Period Ending August 31, 2007” as of today.

* This document is being distributed today to the Kabuto Club (the press club of the TSE) as well as to the press clubfor the Ministry of Land, Infrastructure and Transport and to the press club for newspapers specialized inconstruction at the Ministry of Land, Infrastructure and Transport.
* The website of the Investment Corporation: http://www.lcp-reit.co.jp* This English language notice is a translation of the Japanese language notice issued on the same day and was
prepared solely for the convenience of, and reference by, overseas investors.
warranties as to its accuracy or completeness.

LCP Investment Corporation makes no[Exhibit] Summary of Assets of Scheduled Acquisition (1) Bon Sejour Komaki
Property Number：

S-5

Property Name：Bon Sejour Komaki

Property Features
The property is a senior home, located in Tokadai New Town, where there are about 9,000 households, 15 km to the north side of Nagoya-shi, which is in thecenter of the north-west area of Aichi-ken. The property is located 15 minutes by car to both “Komaki-shi” Station and “Kasugai” Station, however, there are
44 medical facilities within a radius of 4 km of the property due to the feature of new town, and there are also a shopping mall and 30 parks in New Town, making
the area a convenient and pleasant environment. The property is considered to have competitiveness as high as newly established properties due to alarge-scale renovation made to the property with the conversion of the property into a senior home in January 2007, and is considered to have highcompetitiveness compared to similar facilities due to the enrichment of incidental equipment and services, as a property which can meet demand in the market
area in Komaki-shi, where the proportion of independent aged people is the highest in Aichi-ken.
Address

1, 3-chome, Shiroyama, Komaki-shi, Aichi

Land number

1, 3-chome, Shiroyama, Komaki-shi, Aichi

Location

Type of ownership

Ownership right

Summary of Engineering Report （Unit： \ in thousands）

Category 1 mid-high-rise residential
Area usage

Tokio Marine & Nichido
Investigation Company

exclusive area

Risk Consulting Co., Ltd.

Land
Site area

8,229.85 ㎡

Date of Investigation

Floor area ratio

200%

Urgent-Bldg. coverage ratio

60%

RepairWithin 1 year

-

costs

Annual average overType of ownership

March 2007

Ownership right

5,401
12 years

Usage

Senior Home

Floor space (*）

8,805.49 ㎡

Earthquake PML

9.6%

Summary of Real Estate Appraisal Report（Unit： \ in millions）
Structure/Number of
Bldg.

SRC, 10 F

Appraiser

Japan Real Estate InstituteMarch 1991

Appraisal Date

April 1, 2007

Government body (Komaki-shi)

Appraisal ValuefloorsCompletion date
Bldg. Inspection Agency
Architect

Kume Kenchiku Office
Dai Nippon Construction &1,940

Capitalization approach price

1,940

Price calculated by the direct capitalization

Constructor

1,960
Matsumura-gumi Corporation JV

approach

Current owner

Zecs Community Corporation

Gross income

Previous owner

Domestic company

Rental income

140

Trustee-

Other income

1

Scheduled expiration date of trust term-

ＰＭ company

Zecs Community Corporation

Gross expenses
Maintenance management

141

11
1

Master lease company-

Water/Utilities

Type of master lease

Net lease, Long term contract, Block rental0

Expenses for commission of0
building management
Lease Details （Unit: \ in thousand）
Investigation dateJune 30, 2007 (scheduled)

Total number of tenants

1

Number of rentable units

123

Tax and public charges

9

Damage insurance

1

Other

0

Lease advertising0

Reserve for large-scale repair
Number of leased units (as of the end of April)

6

6
expenses

Rentable area

8,858.49 ㎡

NOI

131

Rented area

8,858.49 ㎡

NCF

125

Monthly rent

10,450Capitalization rate

6.4%

Deposit/Security deposit

62,310Price calculated by the discounted cash flow
1,920
approachOccupancy ratio （based on the space）

100%

Discount rate

6.1%

Terminal cap rate

6.7%

Estimated value

1,940

Land price686

Bldg. price

1,254

Scheduled Acquisition Price （Unit： \ in millions）
Notes
N/A

(*) The column of “Floor space” of the building shows the building area registered on the real estate register. The
column of “Rentable area” shows the total area of the building and annex building registered on the real estateregister.

1,940

<Market Situation> Bon Sejour KomakiMarket Summary
The property is located in Tokadai New Town, which is a quiet residential area and where there areabout 9,000 households in the north-west area of Aichi-ken. The potential market of the property
will be Komaki-shi, where the proportion of independent aged people is the highest in Aichi-ken,
Kasugai-shi, where the number of those who need nursing care will be two times higher than thecurrent number after seven years, and Inuyama-shi, which has 19.4% of elderly people to the total
population, which is more than the average ratio in Aichi-ken. As the three cities considered to havehigh needs are located within a radius of 10 km from the property, demand for the property willfurther increase.
Features of Facilities
The property is a senior home under the Elderly Welfare Law and is managed as a residential seniorhome which is a residential facility for elderly people providing a meal service, etc. In addition,
residents can receive nursing care from the nursing care office in the facility when the necessity fornursing care arises. The property has been converted into a large-scale residential senior home which
has the second largest number of units in Aichi-ken by large-scale renovation. It does not look like awelfare facility as the exterior is dignified and harmonized with the surrounding residential area.
Most of the rooms have a unit area of 26.6 m2, therefore, the rooms are comfortably designed forresidents.
Data etc
Change concerning the number of those who need nursing care in Komaki-shi
Category

2000

2001

2002

2003

2004

2005

2006

Number of People

1,488

1,727

2,004

2,084

2,267

2,422

2,599

(*) Source: Nursing Care Section of Komaki-shi
Forecasts concerning the number of those who need nursing care in Kasugai-shi(Number in 2004 is actual results)
Category

2004

2006

2007

2008

2011

2014

Number of People

6,777

8,287

8,820

9,382

10,69912,977(*) Source: Third General Welfare Project for Elderly People in Kasugai-shi

Forecasts concerning the number of those who need nursing care in Inuyama-shi
Category

2006

2007

2008

2009

2010

2011

Number of People

2,094

2,254

2,404

2,546

2,658

2,754

(*) Source: Fourth General Welfare Project for Elderly People in Inuyama-shi(*) The sections of “Market Summary”, “Features of Facilities” and “Materials, etc.” above show extracts and asummary of the Appraisal Report by Tamura Planning and Operating Co., Ltd. and the Real Estate Appraisal Reportby the Japan Real Estate Institute. The Investment Corporation makes no warranties as to the accuracy orcompleteness of the descriptions in such sections as each appraisal is only an estimation or an opinion of theappraisers at a certain time.

[Exhibit] Summary of Assets of Scheduled Acquisition (2) Bon Sejour Hadano Shibusawa
Property Number：

S-6

Property Name：Bon Sejour Hadano Shibusawa

Property Features
The property is a senior home, located in Hadano-shi (western area of Kanagawa-ken) and 10 minutes on foot from “Shibusawa” Station (Odakyu-line). The
area around the property is surrounded by nature and there are 45 medical facilities within a radius of 5 km of the property.
The property is considered to have competitiveness as high as newly established properties due to a large-scale renovation made to the property withconversion of the property into a senior home in March 2007, and is considered to have high competitiveness compared to similar facilities due to theenrichment of incidental equipment and services, as a property which can meet demand in the market area.
Address

6-60, 1-chome, Shibusawa-kami, Hadano-shi, Kanagawa

Land number

518-2 other 2 number, 1-chome, Shibusawa-kami, Hadano-shi, Kanagawa

Location

Type of ownership

Ownership right

Summary of Engineering Report

Category 1 mid-high-rise residential exclusive
Area usage（Unit： \ in thousands）
Tokio Marine & Nichido

Investigation Company
area

Risk Consulting Co., Ltd.

Land
Site area

2,588.04 ㎡

Date of Investigation

Floor area ratio

200%

Urgent-Bldg. coverage ratio

60%

RepairWithin 1 year

-

costs

Annual average overType of ownership

April 2007

Ownership right

4,031
12 years

Usage

Senior Home

Floor space (*）

3,435.79 ㎡

Earthquake PML

17.4%

Summary of Real Estate Appraisal Report（Unit： \ in millions）
Structure/Number of
Bldg.

RC, 5 F

Appraiser

Japan Real Estate Institute

July 1991

Appraisal Date

April 1, 2007

Government body (Hadanoi-shi)

Appraisal ValuefloorsCompletion date
Bldg. Inspection Agency
Architect

Koji Iwata Sekkei OfficeConstructor

Sekino Kensetsu Co., Ltd.

962

Capitalization approach price962

Price calculated by the direct capitalization
973
approach
Current owner

Zecs Community Corporation

Gross income

Previous owner

2 individuals

Rental income

75

Trustee-

Other income

1

Scheduled expiration date of trust term-

ＰＭ company

Zecs Community Corporation

Maintenance management

1

Master lease company-

Water/Utilities

0Type of master lease

Net lease, Long term contract, Block rental

Expenses for commission of0

Gross expenses

75

5

building management

Lease Details （Unit: \ in thousands）
Investigation dateJune 30, 2007(scheduled)

Total number of tenants

1

Number of rentable units

100

Tax and public charges

4

Damage insurance

0

Other

0

Lease advertising0

Reserve for large-scale repair
Number of leased units (as of the end of April)

04
expenses

Rentable area

3,435.79 ㎡

NOI

70

Rented area

3,435.79 ㎡

NCF

66

Monthly rent

5,553

Deposit/Security deposit

33,108

Capitalization rate

6.8%

Price calculated by the discounted cash flow
951
approachOccupancy ratio （based on the space）

100%

Discount rate

6.6%

Terminal cap rate

7.1%

Estimated value

943

Land price217

Bldg. price726

Scheduled Acquisition Price （Unit：\ in million）
Notes
N/A

962

<Market Summary> Bon Sejour Hadano Shibusawa
Market Summary
The property is located 10 minutes on foot from “Shibusawa” Station, which is in the western part of
Kanagawa-ken and is a quiet residential area surrounded by nature. In Hadano-shi, which is apotential market area of the property, the number of elderly people is increasing from year to year,
and such number reached 25,800 people as of September 2005, which is an increase of about 5,500
over six years. In addition, such number will most likely increase in the future and, after seven years,
the number of elderly people over 65 years old is expected to reach 42,514 (the ratio of elderly
people: 25.6%). According to a population census conducted in 2005, the population of single
elderly people in Hadano-shi is expected to increase. Therefore, demand for senior housing facilities
will also increase.
Features of Facilities
The property is a senior home under the Elderly Welfare Law and is managed as a residential seniorhome which is a residential facility for elderly people providing a meal service, etc. In addition,
residents can receive nursing care from the nursing care office in the facility when the necessity fornursing care arises. The property provides a very good nursing care service such as a system forproviding good nursing care and the allocation of nurses, which is superior to a fee-paying nursing
care home, in the area of Hadano-shi, where senior homes are in short supply. While the property is
managed under a system providing good nursing care, a lump-sum payment to move in and monthly
costs are largely lower than the average cost of homes for people in need of nursing care in
Kanagawa-ken. Therefore, this property provides management with high quality at a low cost.
Data etc.
Change of Population in Hadano-shi
2006

2007

2008

2009

2010

2011

2012

Total Population

162,098

162,694

163,301

163,838

164,527

164,999

165,400

Under 40 years old

76,59075,65974,85474,011

73,10972,01170,93665 years old and over

27,61429,391

31,16332,96734,30935,45937,720(*) Estimate number of General Projects in Hadano-shi (Hadano 2010 Plan) (based on the Basic
Residents’ Register)(*) The sections of “Market Summary”, “Features of Facilities” and “Materials, etc.” above show extracts and asummary of the Appraisal Report by Tamura Planning and Operating Co., Ltd. and the Real Estate Appraisal Reportby the Japan Real Estate Institute. The Investment Corporation makes no warranties as to the accuracy orcompleteness of the descriptions in such sections as each appraisal is only an estimation or an opinion of theappraisers at a certain time.

[Exhibit] Summary of Assets of Scheduled Acquisition (3) Bon Sejour Itami
Property Number：

S-7

Property Name：Bon Sejour Itami

Property Features
The property is a senior home, located in front of “Itami” Station (Hankyu-line), which is the center of Itami-shi, which has a population of 200,000 and islocated in the south-east area of Hyogo-ken. The accessibility is good as the property is located within walking distance from “Itami“ Station （Hankyu and JRlines）. In addition, there are 65 medical facilities within a radius of 2 km of the property. The population of elderly people has increased 1.6 times over the lastten years in Itami-shi, therefore the property is considered to have competitiveness as high as newly established properties due to a large-scale renovation
made to the property with conversion of the property into a senior home in February 2007, and is considered to have high competitiveness compared to similar
facilities due to the enrichment ofincidental equipment and services, as a property which can meet demand in the market area.

Address

2-25, 1-chome, Chuo, Itami-shi, Hyogo

Land number

6 and 5, 1-chome, Chuo, Itami-shi, Hyogo

Location

Type of ownership

Ownership right

Area usage

Commercial area

Summary of Engineering Report （Unit： \ in thousands）
Tokio Marine & Nichido
Investigation Company
Risk Consulting Co., Ltd.

Land
Site area

1,976.11 ㎡

Date of Investigation

Floor area ratio

400%

Urgent-Bldg. coverage ratio

80%

RepairWithin 1 year

-

costs

Annual average overType of ownership

March 2007

Sectional ownership

2,062
12 years

Usage

Senior Home

Floor space (*）

8,512.54 ㎡

Earthquake PML

8.6%

Summary of Real Estate Appraisal Report（Unit： \ in millions）
Structure/ Number of
Bldg.

SRC, 11 F

Appraiser

Japan Real Estate InstituteMarch,1989

Appraisal Date

April 1, 2007

Government body (Itami-shi)

Appraisal ValuefloorsCompletion date
Bldg. Inspection Agency
Architect

Yasui Architects & Engineers, Inc.

Constructor

Nishimatsu Construction Co., Ltd.

748

Capitalization approach price748

Price calculated by the direct capitalization
755
approach
Current owner

Zecs Community Corporation

Gross income

Previous owner

Domestic company

Rental income

54

Trustee-

Other income0

Scheduled expiration date of trust term-

ＰＭ company

Zecs Community Corporation

Maintenance management

1

Master lease company-

Water/Utilities

0

Gross expenses

544Expenses for commission ofType of master lease

Net lease, Long term contract, Block rental0
building management

Lease Details （Unit: \ in thousands）
Investigation dateJune 30, 2007 (scheduled)

Tax and public charges

3

Damage insurance

0

Total number of tenants

1

Other

0

Number of rentable units

62

Lease advertising0

Number of leased units (as of the end of April)0

Reserve for large-scale repair2
expenses
Rentable area

2,129.87 ㎡

NOI

50

Rented area

2,129.87 ㎡

NCF

48

Monthly rent

4,050

Deposit/Security deposit

24,108

Capitalization rate

6.4%

Price calculated by the discounted cash flow
741
approachOccupancy ratio （based on the space）

100%

Discount rate

6.1%

Terminal cap rate

6.7%

Estimated value

561

Land price191

Bldg. price370

Scheduled Acquisition Price （Unit： \ in millions）
Notes
N/A

(*) The property is one property among three properties which are independently registered in section in the same
area. The column of “Site area” of land shows the total area of all land and the column of “Floor space” of thebuilding shows the total area of all floors. However, the ratio of shares of the land of the property is 24,928/100,000.
The area includes a multi-level parking garage registered on the real estate register (36 car spaces available), twowaste collection spaces and three bicycle parking spaces. According to the management rules of the Wake-Up
Building Itami Home Owner’s Association consisting of the building owners of this site, the aforementioned space isshared by the ratio of shares of co-owners.

748

<Market Summary> Bon Sejour Itami
Market Summary
The property is located in front of “Itami” Station (Hankyu-line), where people can live an active life.
In Itami-shi, which is a potential demand area for property, the number of elderly people isincreasing from year to year. Especially, the number of elderly people from 65 years to 74 years old
has been rapidly increasing and increased by 60% (from 12,121 to 19,151) compared to ten years
ago. Itami-shi is the second most populated city in Hyogo-ken and has good accessibility, and thereis expected to be a high demand for the property from elderly people in such city.
Features of Facilities
The property is a senior home under the Elderly Welfare Law and is managed as a residential seniorhome which is a residential facility for elderly people providing a meal service, etc. In addition,
residents can receive nursing care from the nursing care office in the facility when the necessity fornursing care arises. The property’s good features is that it is located in an environment whereresidents can live a life similar to that they previously enjoyed and that the tenant rent iscomparatively low regardless of providing nursing care services in Itami-shi, while there is lesssupply of welfare facilities and residences for independent elderly people.
Data etc.
Change of the number of those who need nursing care in Itami-shi
2000
Number of people

2003
2,612

2004
4,437

2005
5,119

5,474

(*) Source: Third Nursing Care Business Project in Itami-shi(*) The sections of “Market Summary”, “Features of Facilities” and “Materials, etc.” above show extracts and asummary of the Appraisal Report by Tamura Planning and Operating Co., Ltd. and the Real Estate Appraisal
Report by the Japan Real Estate Institute. The Investment Corporation makes no warranties as to the accuracy orcompleteness of the descriptions in such sections as each appraisal is only estimation or an opinion of theappraisers at a certain time.

【Appendix１】Photograph of the Scheduled Acquisition Property（1）Bon Sejour Komaki（Senior Property）（2）Bon Sejour Hadano Shibusawa（Senior Property）（3）Bon Sejour Itami（Senior Property）

[Appendix 2] Portfolio after acquisition of three senior properties

Category of
Properties

Residential

Numberof

Property Name

Area

Properties

Acquisition(Scheduled) Date

Acquisition

Investment(Scheduled)PriceRatio(million yen)

(%)

R-1

City House Tokyo Shinbashi

Greater Tokyo

May 25, 2006

2,790

3.0%

R-3

Winbell Kagurazaka

Greater Tokyo

May 23, 2006

3,690

4.0%

R-4

Nishiwaseda Crescent Mansion

Greater Tokyo

May 23, 2006

2,190

2.4%

R-5

Lexington Square Akebonobashi

Greater Tokyo

May 25, 2006

1,600

1.7%

R-6

Montserrat Yotsuya

Greater Tokyo

May 23, 2006

557

0.6%

R-7

Casa Eremitaggio

Greater Tokyo

May 25, 2006

1,240

1.3%

R-9

Lexington Square Shimokitazawa

Greater Tokyo

May 25, 2006

2,700

2.9%

R-10

Homest Ikejiri

Greater Tokyo

May 23, 2006

806

0.9%

R-11

Towa City Cope Shin-otsukaⅡ

Greater Tokyo

May 25, 2006

937

1.0%

R-12

Towa City Cope Asukayama-Koen

Greater Tokyo

May 25, 2006

529

0.6%

R-13

Bichsel Musashiseki

Greater Tokyo

May 23, 2006

703

0.8%

R-14

Lexel Mansion Ueno Matsugaya

Greater Tokyo

May 23, 2006

1,130

1.2%

R-15

Cosmo Nishiojima Grand Stage

Greater Tokyo

May 25, 2006

909

1.0%

R-16

Towa City Cope Sengencho

Greater Tokyo

May 25, 2006

1,240

1.3%

R-17

Royal Park Ohmachi

TohokuMay 25, 2006

564

0.6%

R-18

Lexington Square Hagino-machi

TohokuMay 23, 2006

411

0.4%

R-19

Visconti Kakuozan

Chubu

May 23, 2006

397

0.4%

R-20

Lexington Square Kitahorie

Kansai

May 25, 2006

596

0.6%

R-21

Lexington Square Shinmachi

Kansai

May 25, 2006

421

0.5%

R-22

Luna Coat Tsukamoto

Kansai

May 23, 2006

632

0.7%

R-23

Lexington Square Fushimi

Chubu

October 31, 2006

2,990

3.2%

R-24

Lexington Square Daitabashi

Greater Tokyo

March 29, 2007

1,019

1.2%

R-25

Lexington Square Honjo-Azumabashi

Greater Tokyo

March 29, 2007

525

0.6%

R-26

AMS TOWER Minami 6-Jo

Hokkaido

March 29, 2007

1,400

1.5%

R-27

Lexington Square Shirokane Takanawa

Greater Tokyo

March 30, 2007

7,660

8.3%

R-28

Spacia Ebisu

Greater Tokyo

March 30, 2007

9,140

9.9%

Greater Tokyo

March 30, 2007

1,780

1.9%

R-29

The Palms Yoyogi Uehara Cosmo
Terrace

R-30

Sun Terrace Yoyogi Uehara

Greater Tokyo

March 30, 2007

1,570

1.7%

R-31

Park Habio Shinjuku Gyoen

Greater Tokyo

March 30, 2007

1,390

1.5%

Sub-total

Senior

55.9%

S-1

Bon Sejour Chitose Funabashi

Greater Tokyo

May 25, 2006

791

0.9%

S-2

Bon Sejour Yotsugi

Greater Tokyo

May 25, 2006

765

0.8%

S-3

Bon Sejour Hino

Greater Tokyo

May 25, 2006

699

0.8%

S-4

Bon Sejour Musashi-Shinjo

Greater Tokyo

November 24, 2006

610

0.7%

S-5

Bon Sejour Komaki

1,940

2.1%

S-6

Bon Sejour Hadano Shibusawa

962

1.0%

S-7

Bon Sejour Itami

748

0.8%

6,515

7.1%

May 22,2007

Chubu(Scheduled)
May 22,2007

Greater Tokyo(Scheduled)
May 22,2007

Kansai(Scheduled)

Sub-total

Others51,516

OfficeO-1

Otsuka Cent Core Building

Greater Tokyo

May 25, 2006

2,540

2.8%

OfficeO-2

Ueno Fujita Estate 1

Greater Tokyo

May 23, 2006

1,840

2.0%

OfficeO-3

Cross Square NAKANOGreater Tokyo

May 23, 2006

1,038

1.1%

RetailO-4

Lexington Plaza Hachiman

TohokuMay 23, 2006

4,760

5.2%

OfficeO-5

Ohki Aoba Building

TohokuMay 25, 2006

847

0.9%

RetailO-6

Loc Town Sukagawa

TohokuMay 23, 2006

2,563

2.8%

RetailO-8

Valor Takinomizu-ten

Chubu

May 23, 2006

2,230

2.4%

Hotel

O-9

Lexington Plaza Hiroshima Otemachi

Chugoku/Shikoku

November 24, 2006

2,450

2.7%

Office

O-10

New Edobashi Building

Greater Tokyo

March 30, 2007

8,770

9.5%

OfficeO-11

Shuwa Nishi Gotanda Building

Greater Tokyo

March 30, 2007

7,160

7.8%

Sub-total

34,198

37.1%

Total

92,229100.0%(*1) “Area” is divided into six sub-areas which consist of the prefectures shown below.
Hokkaido area: Hokkaido
Tohoku area: Aomori, Miyagi, Akita, Iwate, Yamagata, Fukushima
Greater Tokyo area: Tokyo, Kanagawa, Saitama, Chiba
Chubu area: Shizuoka, Nagano, Aichi, Niigata, Fukui, Ishikawa, Toyama, Mie, Gifu
Kansai area: Kyoto, Osaka, Hyogo, Shiga, Nara, Wakayama
Chugoku/Shikoku area: Hiroshima, Okayama, Yamaguchi, Tottori, Shimane, Ehime, Kagawa, Kochi, Tokushima(*2) In the column of “(Scheduled) Acquisition Price”, the sale price provided in the Transfer Agreement with precedentcondition is shown (excluding consumption tax, etc.), and rounded off to the nearest million yen.
(*3) In the column of “Investment Ratio”, each ratio equals each (scheduled) acquisition price divided by the grand total(scheduled) acquisition price and is rounded off to the nearest tenth.