Investment Corporation
MCUBS MidCity Investment Corporation(Tokyo Stock Exchange Company Code: 3227）
Representative: Katsuhiro Tsuchiya, Executive Director

URL: http://www.midcity-reit.com/en/

Asset Management Company
MCUBS MidCity Inc.
Representative: Toyota Watanabe, President & CEO
Inquiries:
Naoki Suzuki, Deputy President

TEL: +81-3-5293-4150

Business Update(Update on Leasing Status, Enhancement of Unitholder Values)

October 26, 2017

Update on Leasing Status
Lease Agreement with Panasonic (Twin21)
 Concluded a memorandum to change lease agreement priorto current contract expiry
 Achieved upward rent revision and extension of agreement
period225yen per unit (+45yen after unit split) after July 1, 2018

 Separately concluded a 5 year Green lease agreement in July 2017
Main details of the Memorandum

Agreement
PeriodAnnual Rent＊

Remarks＊

 Singed leasing contracts with 3 new tenants to refill
approximately 2.5 floors of the vacated 4 floors+

290yen per unit (+58yen after unit split)

Floor MapFor rent
26F：リーシング中

BeforeAfterNew tenant
25F：契約締結

April 1, 2015 toMarch 31, 2018

October 18, 2017 toMarch 31, 2022

New tenant
24F：契約締結

3 years

approximately 4.5 years

1,791 million yen

1,924 million yen
approximately +7.4％－Non-cancellable
during the agreement period
The rent will be revised on July 1, 2018

New tenant/For rent
5F：契約締結／(Incl.
a part of 6F)
リーシング中（一部6Fを含む）

Rounded down the fraction of less than one million yen

cf. ”Notice Concerning Conclusion of Memorandum to Change Lease Agreement on Leased Units with Panasonic
Corporation” released on October 18, 2017
“Notice Concerning Conclusion of Green Lease Agreement with Panasonic Corporation and Reception ofNotice of Determination to Grant Subsidy” released on August 15, 20171 Asahi Group is to vacate 4 floors in September and October→ New contracts’ revenue contribution equivalent to→ Revenue growth contribution equivalent to+

Leasing Update (Matsushita IMP Building)cf. “Notice Concerning Change in Tenants” released on September 2, 2016

Enhancement of Unitholder Values
Investment Unit Split
PurposeDiscussion with Investors

Broaden MCUBS MidCity’s investor base and increase the liquidityof the investment units, making an environment which enables
investors to handle their investment more easily after this split

Summary

December 31, 2017

Method5 for 1

Effective date

January 1, 2018

Number ofinvestment units

Before:296,625 units
After: 1,483,125 units

MCUBS MidCity is to consider enhancing unitholder returns
through seeking further capital efficiency with considering thefollowing conditions surrounding our investment corporation
1. Investment opportunities in high quality properties
which will enhance portfolio quality
2.

Financial stability and excess cash level■

December 14, 2017

Publication of record date (scheduled)3.

Price of investment unit

December 31, 2017

Record date

4.

Compliance with legal/ regulatory requirements■

January 1, 2018

(The final trading day with rights at the Tokyo Stock Exchange is December 26, 2017.)

Effective datecf. “Notice concerning Investment Unit Split and Revision of Forecast Distribution per Unit”

2

During investor meetings, we recognized that many institutional
investors prefer “repurchase of own investment units” to “surplus
cash distribution”

Unitholder return enhancement

Record date■

Discussion on Unitholder Return Enhancement

Schedule
Events from 23rd to 25th period
Period ending December 2017
The 23rd period
JulAug

Sep

Period ending June 2018
The 24th period
OctNovDecJanFebMar

Twin 21Panasonic

P. December 2018
The 25th period
AprMayJunGrant of subsidy

Scheduled subsidy amount determination

LED lighting
retrofit

Signed Green lease agreement

Green lease fees (Jan. 2018 to Dec. 2022)

26F
25F
24F

Lease cancellation (Oct. 2017)
Lease cancellation (Oct. 2017)

New tenant (Dec. 2017-)
New tenant (Jan. 2018-)

Lease cancellation (Oct. 2017)

5F (Approximately half)

New tenant (Jan. 2018-)

5F (Remaining half + a part of 6F)
Lease cancellation (Sep. 2017)

Investment
unit split

Record date (Dec. 31, 2017)

Publication of record date

296,625 units

3Aug

Old Memorandum (Apr. 2015 to Mar. 2018)

New Memorandum to Change Lease Agreement on Leased Units (Oct. 2017 to Mar. 2022)

Matsushita
IMP Building
Leasing
UpdateJul

Effective date (Jan.1, 2018)
1,483,125 units

New Rent

Disclaimer•

This material main contain forward-looking statements regarding results, plans, managerial targets and strategies. These forward-looking statements are based on current assumptions and preconditions for future events and trendsof business circumstances, which are not necessarily correct. Actual results may vary widely from such statements according to various factors•This material is prepared subject to the accounting principles generally accepted in Japan, unless otherwise stated•This material is about analyses of financial results of MCUBS MidCity Investment Corporation (the “Investment Corporation”), and is not prepared for the purpose of inducement or invitation for any acquisition of investment securitiesof the Investment Corporation nor any execution of other financial transaction contracts. Investment decisions are to be made at investors’ sole discretion and responsibility•The Investment Corporation is a publicly-offered real estate investment corporation (J-REIT) investing in real estate and related assets the prices of which may fluctuate. Unitholders of the Investment Corporation may suffer loss whenunit prices decline in the market or an amount of distributions declines, according to economic and interest rate circumstances, a balance of supply and demand for units, real estate market environment, fluctuations of prices of, andrent revenues from real estate properties under management, disasters, aggravation of financial status of the Investment Corporation and other reasons. For detail, please see “Investment Risk” stated in the Securities Registration
Statement (offering circular) and the Securities Report of the Investment Corporation.

Asset Management Company: MCUBS MidCity Inc.

(Certified Financial Instruments Business Operator: Director of Kanto Local Financial Bureau (Kinsho) Registration No. 2888, and Member of The Investment Trusts Association, Japan)