May 29, 2013
For Translation Purpose Only
MID REIT, Inc.
1-4-4 Dojimahama, Kita-ku, Osaka
Tomoyuki Goto
Executive Director(Securities Code: 3227)
MID REIT Management Co., Ltd.
Tomoyuki Goto
President and CEO
Hirotaka Saito
Managing Director
General Manager, Finance & Planning Division
TEL. +81-6-6456-0700
E-mail:midrm-info@mid.co.jp

Notice Regarding Acquisition of Property(Higobashi MID Building)
MID REIT, Inc. (hereafter “MID REIT”) announces its decision today to acquire property, as
detailed below.
1. Overview of Acquisition(1) Asset to be acquired:(2) Property name:(3) Location:(4) Acquisition price:(5) Contract date:(6) Acquisition date:(7) Seller:(8) Acquisition funding:Trust beneficiary interest in entrusted real estate(Trust beneficiary interest in real estate)
Higobashi MID Building
1-5-16 Edobori, Nishi-ku, Osaka (Indicated for residence)¥3,000 million (Planned)(Excluding various acquisition expenses, property taxes, city planningtaxes, consumption taxes, etc.)
May 29, 2013
June 21, 2013 (Planned)
MID Urban Development Co., Ltd. (See “4. Seller Overview” below)
Cash on hand (Planned)

Hereafter, the aforementioned asset to be acquired is referred to as the “Asset” and the Asset’s trust
property is referred to as the “Property.”
2. Reason for Acquisition
MID REIT concluded that a replacement of its assets in which it will acquire the Asset inaccordance with the asset management target and policy stipulated in its Articles of Incorporation,
along with implementing the asset transfer that was separately announced today, would be theoptimal way to maintain and enhance the profitability and quality of its portfolio in the medium tolong term.
In addition, the following points were evaluated in the decision to acquire the Asset.
(1) Location
Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

Facing Yotsubashisuji, which is a major arterial road in Osaka, and located a one-minute walkfrom Higobashi Station on the Osaka Municipal Subway Yotsubashi Line, six-minute walkfrom Yodoyabashi Station on the Osaka Municipal Subway Midosuji Line and six-minute walkfrom Watanabebashi Station on the Keihan Nakanoshima Line, the Property boasts superiortransportation access. The Higobashi area, where the Property stands, is a business area linedwith office buildings that is also in close proximity from Yodoyabashi, where there is aconcentration of financial institutions, etc., and is home to the head offices of chemical,
machinery and other long-established manufacturers of Osaka. In light of these and otherfactors, MID REIT assesses the area as having the potential to maintain constant tenancy
needs.
(2) Building Features
Constructed in January 2010, the Property is an office building equipped with specifications
that are expected to accommodate tenant needs over the medium to long term.
Each floor of the Property’s rental area features 139 tsubo of pillarless space that can bedivided into smaller segments, providing for a range of layout and spacing needs. The
equipment specifications include 24-hour air conditioning that can be regulated at theindividual office level, a power capacity of 50VA/㎡ (can be upgraded up to 75VA/㎡),
office-automation (OA) floors with 100mm of free space underneath for computer and otheroffice equipment wires and cables, and a security system using non-contact IC card readers formonitored 24-hour access, thus providing a leading-edge office environment.
In addition, the Property has been assigned with the DBJ Green Building Certification rank of“Silver 2012” by Development Bank of Japan Inc., in recognition of employing highlyefficient lighting for exclusive-use areas and employing an automatic control system formodulated light by installing “brightness sensors,” employing energy conservation throughspace designing that lets in natural light to common areas and other measures, as well as having
outstanding earthquake resistance performance in that employment of a vibration control
construction method using corrugated steel plate vibration control walls mitigates thevibration of the building in the event of an earthquake. Moreover, the Property has been
assigned with the rank of “A Class” by the City of Osaka’s Comprehensive Assessment System
for Building Environmental Efficiency (CASBEE Osaka), which is a tool for comprehensive
assessment and rating of not only consideration for the environment, such as use of energyconserving and low-environmental-load resources and materials, but also consideration for theindoor and outdoor built environment and other building quality and performance.
These features suggest that the Property is a property that can retain high market
competitiveness over the medium to long term and that internal growth can also be anticipated.
Therefore, MID REIT assesses the Property as being a property that will contribute toenhancing the quality of its portfolio.
3. Details of Property for Acquisition
Property Name
Type of Specified Asset

Location(Note 1)

Trustee
Trust Period
Lot Number
Indicated for Residence

Higobashi MID Building
Trust beneficiary interest in entrusted real estate(Trust beneficiary interest in real estate)
Sumitomo Mitsui Trust Bank, Limited (Planned)
June 21, 2013 to June 20, 2023 (Planned)
1-1-38 Edobori, Nishi-ku, Osaka
1-5-16 Edobori, Nishi-ku, Osaka

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

One-minute walk from Higobashi Station on the Osaka
Municipal Subway Yotsubashi Line, six-minute walkfrom Yodoyabashi Station on the Osaka Municipal
Transportation
Subway Midosuji Line and six-minute walk from
Watanabebashi Station on the Keihan Nakanoshima
Line
Completion Date (Note 1)
January 18, 2010
Use (Note 1)
Offices
Structure (Note 1)
S with flat roof, B1F/11F
6.0% (Based on the earthquake risk analysis report
PML (Note 2)(detailed) dated April 3, 2013, created by Engineering and
Risk Services Corporation and OYO RMS Corporation.)
Architect
Takenaka Corporation
Structural Designer
Takenaka Corporation
BuilderTakenaka Corporation
Agency Authorizing Building Construction Nihon Kakunin Kensa Center K.K.
Land
Area
797.86 ㎡(Note 1)
Building
6,519.63 ㎡
Land
Fee simple
Type ofOwnership
Building
Fee simple
Floor-Area Ratio / Building-to-Land Ratio
800% / 100%
(Note 3)Mortgage
None
Special Instructions
None
Acquisition Price¥3,000 million¥3,130 million
Appraisal Value(Appraisal date: April 15, 2013)(Appraiser: Japan Real Estate Institute)
Status of Tenants (Estimate at planned acquisition date) (Note 4)
Total Tenants (Note 5)
10
Total Annual Rent (Note 6)¥207,385 thousand
Security Deposit / Guarantee, Etc. (Note 7) ¥117,474 thousand
Rentable Area (Note 8)
4,655.58 ㎡
Rental Area (Note 9)
4,332.47 ㎡
Occupancy Rate (Note 10)
93.1%
Notes:
1. “Location (Lot Number),” “Completion Date,” “Use,” “Structure” and “Area” are listed based on recorded
registration.
2. “PML” is translated as “Probable Maximum Loss” in the real estate/insurance industries and is used as arating index for earthquake risk in buildings. From the risk curve, which shows the relationship between loss
and annual exceedance probability as calculated by Engineering and Risk Services Corporation and OYO RMS
Corporation, divide the “probable loss for a building with a recurrence interval of 475 years” by the“replacement cost” and calculate the percentage. The result of this calculation defines “Probable Maximum
Loss (PML)” herein. A 475-year recurrence interval is the equivalent of a 10% certainty of an event occurring
during the 50-year period of building use.
3. “Floor-Area Ratio” is as stipulated in Article 52 of the Building Standards Law and is the ratio of floor area tosite area, and the value specified in urban planning based on zoning and other factors is listed.
“Building-to-Land Ratio” is as stipulated in Article 53 of the Building Standards Law and is the ratio ofbuilding area to site area, and the value specified in urban planning based on zoning and other factors is listed.
Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

The building-to-land ratio of the Property’s land was originally 80%, because the location was within acommercial zone, but because it was a fireproof building in a fire zone, its ratio was increased, and its
applicable building-to-land ratio came to 100%.
4. “Status of Tenants (Estimate at planned acquisition date)” is based on data and information provided by theseller. The status factors in the tenants whose lease periods have already commenced as at April 30, 2013 andthe tenants who have signed lease agreements as at April 30, 2013 and whose lease periods are scheduled tohave commenced as at the planned acquisition date.
5. “Total Tenants” is based on the assumption that the lessee on the master lease agreement has agreed to serveas the lessor. The figure cited is the sum of the number of end-tenants who are subleasing from the lessee on
the master lease agreement and the number of end-tenants who have signed lease agreements as at April 30,
2013 and whose lease periods are scheduled to have commenced as at the planned acquisition date. Not
included are end-tenants whose leases or scheduled leases are limited to such items as storage and parking
spaces.
6. “Total Annual Rent” lists the total monthly rent, including monthly rent, monthly common-area fee, storagearea fee and facility usage fee, displayed in the lease agreement, etc., multiplied by twelve and rounded down to
the nearest thousand yen.
7. “Security Deposit / Guarantee, Etc.” lists the security deposit and guarantee (including room, storage space,parking space, etc.) balance displayed on the lease agreement, etc., rounded down to the nearest thousand yen.
8. “Rentable Area” lists the rentable area of the Property’s building (excluding storage space, parking space, etc.).
9. “Rental Area” lists the area (room area only) displayed on the lease agreement, etc. with end-tenants.
10. “Occupancy Rate” lists the percentage, rounded to the nearest first decimal place, obtained by dividing rental
area by rentable area.

4. Seller Overview
Name
MID Urban Development Co., Ltd.
Headquarters Location
1-4-4 Dojimahama, Kita-ku, Osaka
Name and Title of Representative Ryoichi Hanai, President, Member of the Board
Primary Business
Building business and housing business
Capital¥100 million
Date of Establishment
April 1, 1999
Relationship with MID REIT or Asset Management Company
The seller is a unitholder holding MID REIT investment units(5.01%) (at the end of the fiscal period ended December 31, 2012).
In addition, the seller is a shareholder holding all of the AssetManagement Company shares issued and outstanding and thus falls
Capital Ties
under the category of an interested person, etc. of the AssetManagement Company as defined in the Law Concerning
Investment Trusts and Investment Corporations (hereafter the“ITL”).
There are no personnel ties to be stated between the seller and MID
REIT.
Personnel Ties
1 director concurrently serves the seller and the Asset Management
Company, and 26 directors/employees of the Asset Management
Company are seconded from the seller.
There are no business ties to be stated between the seller and MID
Business Ties
REIT or the Asset Management Company.
The seller does not fall under the category of a related party of
MID REIT.
Status of Classification
The seller is a shareholder holding all of the Asset Management
as Related Party
Company shares issued and outstanding and thus falls under the
category of a related party of the Asset Management Company.
Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

5. Transactions with Interested Persons, Etc.
The Asset Management Company has formulated internal regulations that provide guidelines fortransactions with related parties of its sponsors with the aim of eliminating potential conflicts ofinterest and thereby enabling it to appropriately perform asset management to the benefit of MID
REIT’s unitholders. Under the internal regulations, the seller listed above falls under the category ofa sponsor related party. Accordingly, upon entering into an agreement on acquisition of the Assetwith the seller, the Asset Management Company followed certain procedures stipulated in the
aforementioned internal regulations, including the following: deliberation and approval by its
Compliance Committee, which includes outside experts; deliberation and decision by its Investment
Committee; and deliberation and resolution by its Board of Directors.
6. Status of Property Buyers, Etc.
The seller of the Asset falls under the category of an interested person, etc. as defined in the ITLof MID REIT. Accordingly, the status of property buyers, etc. is presented.
Property Name
Higobashi MID Building
Status ofCurrent
Previous
Property Owners, Etc.
Owner / Trust Beneficiary
Owner / Trust Beneficiary
Land: Other than a party having
Name
MID Urban Development Co., Ltd.
particular vested interest
Building: None
Relationship with
Parties having
See 4. above―
Particular
Vested Interest
Background andLand: Development purposes
Reason for
Building: Property developed by―Acquisition
the current owner
Acquisition Price
Concerning the land, ownership by(Including
the current owner exceeds one year―
other expenses)
and the price is thus omitted.
Land: Feb. 2007
Acquisition Date―
Building: Jan. 2010
7. Overview of BrokerageNone.
8. Settlement Method
MID REIT plans to settle the acquisition by making a single payment of the entire amount of theacquisition price to the seller using cash on hand at the time the Asset is handed over (scheduled forJune 21, 2013).
9. Schedule for Acquisition
May 29, 2013 Decision to acquire
May 29, 2013 Conclusion of an agreement concerning the transfer of the trust beneficiary interest
June 21, 2013 Acquisition of the trust beneficiary interest in real estate (Planned)
Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

10. Outlook
For the outlook of MID REIT’s business results for the fiscal period ending June 30, 2013 (January
1, 2013 to June 30, 2013) and the fiscal period ending December 31, 2013 (July 1, 2013 to
December 31, 2013) as a result of acquisition of the Asset, please refer to the “Notice Regarding
Revision of Business Results and Distributions Forecast for the 14th Period Ending June 30, 2013”
and the “Notice Regarding Revision of Distributions Forecast for the 15th Period Ending
December 31, 2013” separately announced today.

<Attachments>
Attachment 1: Appraisal Summary
Attachment 2: Property Portfolio after Acquisition of the Asset
Attachment 3: Photograph of Higobashi MID Building
Attachment 4: Map of Higobashi MID Building

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

Attachment 1
Appraisal Summary
Unit: Thousands of yen (Note 1)
Appraiser

Japan Real Estate Institute

Final Appraisal Value
Appraisal Date

3,130,000
April 15, 2013

Value Calculated Using Direct Capitalization (DC) Method
Operating Revenues

3,170,000
233,314Gross Potential Revenues

245,842

Vacancy Loss, etc.

－12,528

Operating Expenses

69,016

Maintenance and Management Expenses, etc. (Note 2)

35,000Real Estate Taxes

24,636

Other Expenses

9,380

Net Operating Income (NOI)

164,298

Gains from Management of One-time Proceeds

2,469

CAPEX

4,928

Net Cash Flows (NCF)

161,839Overall Capitalization Rate

5.1%

Value Calculated Using Discount Cash Flow (DCF) Method

3,080,000

Discount Rate

4.9%

Terminal Capitalization Rate

5.3%

Value Calculated Using the Cost Method

3,040,000

Ratio of Land Price

41.3%

Ratio of Building Price

58.7%

Notes:
1. Amounts presented in the table above have been rounded to the nearest thousand yen. Accordingly, the sumof the line items for each group may not add up to the amount shown in the subtotal.
2. Maintenance and management expenses, etc. include utility expenses.

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

Attachment 2
Property Portfolio after Acquisition of the AssetType

RegionProperty Name

Officeproperties

68,70044.2 Aug. 31, 2006

Matsushita IMP Bldg.

24,60015.8 Aug. 31, 2006―

― Aug. 31, 2006
Aug. 31, 2006
Oct. 31, 2007

Midosuji MID Bldg.

8,290

5.3

MID REIT Kyobashi Bldg.

2,300

1.5 Aug. 31, 2006

MID Imabashi Bldg.

3,270

2.1

MID Midosujikawaramachi Bldg.

2,000

1.3 May 16, 2007

Kitahama MID Bldg.

10,800

7.0 Apr. 24, 2008

MID Nishihommachi Bldg.

3,550

2.3 Oct. 30, 2008

Higobashi MID Bldg.

3,000

1.9

126,510

81.4

Subtotal (9 properties)
Osaka area

Acquisition
Date

Twin 21 (Note 2)

Panasonic Osaka Kyobashi Bldg.
(Note 3)

Osaka area

Acquisition Investment
Price
Ratio
(Millions(%)
of Yen)(Note 1)

Konami Sports Club Kyobashi

Tokyo metropolitan area,
Government-designatedNon-officecities (excluding the
AEON MALL Tsudanuma
properties
Osaka area) and othermajor cities
Subtotal (2 properties)
Total (11 properties)

Apr. 3, 2007

June 21, 2013
(Planned)

2,780

1.8 Aug. 31, 2006

26,10016.8 Aug. 31, 2006

28,88018.6

155,390

100.0

Notes:
1. Investment ratios presented in the table above have been rounded to the nearest first decimal place.
Accordingly, the sum of the investment ratio figures may not add up to 100.0%.
2. Data for Twin 21 includes the trust beneficiary interest of Twin 21 (partial ownership of leased land).
3. Panasonic Osaka Kyobashi Building is scheduled to be transferred on June 21, 2013.
4. In addition to the portfolio properties listed in the table above, MID REIT has acquired an interest in thesilent partnership operated by Sakura Dori Development Limited Liability Company that will develop the
Sakura Dori MID Building on November 29, 2007, January 30, 2008, September 29, 2008 and February 26,2009.

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

Attachment 3
Photograph of Higobashi MID Building

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.

Attachment 4
Map of Higobashi MID Building

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Higobashi MID Building),” and is
not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in MID
REIT. Investment decisions are investors’ sole discretion and responsibility and are made at their own risk. MID REIT and its affiliates disclaim any
responsibility or liability for the consequence of investment in MID REIT.