March 25, 2008
For Translation Purpose Only
MID REIT, Inc.
1-4-4 Dojimahama, Kita-ku, Osaka
Yukinobu Izumi
Executive Director(Securities Code: 3227)
MID REIT Management Co., Ltd.
Nobuo Moroizumi
President and CEO
Inquiries:
Hiroshi Uemura
Director
General Manager, Planning & Finance Division
TEL. +81-6-6456-0700

Notice Regarding Acquisition of Property(Kitahama MID Building)
MID REIT, Inc. (hereafter “MID REIT”) today announced its decision to acquire thefollowing property, detailed below.
1. Acquisition Overview(1) Asset to be acquired: Trust beneficiary interest in entrusted real estate (trust
beneficiary interest in real estate)(2) Property name: Kitahama MID Building(3) Location: 1-6-7 Doshomachi, Chuo-ku, Osaka (indicated for residence)(4) Acquisition price: ¥10,800 million(Excludes various acquisition expenses, property taxes, city planning taxes, consumption
taxes, etc.)(5) Contract date: March 26, 2008 (Planned)(6) Acquisition completion date: April 24, 2008 (Planned)(7) Seller: Hull Asset TMK Limited (See “4. Seller Overview” below)(8) Acquisition funding: Borrowings
The aforementioned property to be acquired is referred to hereinafter as “the Property.”
2. Reason for Acquisition
The acquisition is being made to enhance MID REIT’s property portfolio in accordancewith the targeted assets and investment policies stipulated in its articles of incorporation.
In addition, the following points were evaluated in the decision to acquire theProperty.
(1) Location
Located close to the Sakaisuji Street, one of Osaka’s main arteries, and a two-minute walkfrom Kitahama Station on the Sakaisuji Line of the Osaka Municipal Subway or afour-minute walk from Kitahama Station on the Keihan Main Line, the Property boasts
superior transportation access. The Kitahama area is a business district with highconcentration of mid- and high-rise office buildings, and is home to the Osaka Securities
Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat their own risk. MID REIT and its affiliates disclaim any responsibility or liability for the consequence of investment in MID REIT.

Exchange as well as head offices and branches of securities and pharmaceutical companies.
Therefore, MID REIT expects demand for lease space in the area to remain consistently
high, with the Property attracting affiliated parties of the aforementioned companies.
(2) Building Features
Newly constructed in February 2008, the Property is an office building that offers
state-of-the-art functions, and is therefore expected to accommodate a range of tenantneeds over the medium and long terms.
Each floor of the Property’s rental area features 176 tsubo (approximately 582 ㎡) ofpillarless space that can be divided into smaller segments, providing for a range of layout
and spacing needs. The office space within the Property boasts air conditioning that can be
regulated at the individual office level, a power capacity of 50VA/㎡ (can be upgraded up
to 100VA/㎡) and office-automation (OA) floors with ample free space underneath forcomputer and other office equipment wires and cables and a security system using
non-contact IC card for monitored 24-hour access, thus providing a leading-edge officeenvironment. In addition, the building’s vibration control structure effectively reduces
potential earthquake damage to office areas.
Given these features, MID REIT expects the Property to retain its market competitivenessover the medium and long terms while contributing to internal growth. For these reasons,
MID REIT believes that the Property will contribute to improving the quality of its
portfolio.
3. Details of Property for Acquisition
Property Name
Type of Assets
Trustee
Trust Expiration Date
Lot number
Location (1)Indicated forresidence
Transportation
Completion Date
Use (1)
Structure (1)PML (2)
Architect
Structural designer
Builder
Agency authorizing building
construction
Land
Area (Note 1)
Building
Type ofLand
Ownership
Building
Floor-area ratio／Building-to-landratio (3)Mortgage

Kitahama MID Building
Trust beneficiary interest in entrusted real estate (trust
beneficiary interest in real restate)Mizuho Trust & Banking Co., Ltd. (planned)
April 24, 2008–March 31, 2018
1-1-2, Doshomachi, Chuo-ku, Osaka , etc.
1-6-7, Doshomachi, Chuo-ku, Osaka
Two-minute walk from Kitahama Station on the SakaisujiLine of the Osaka Municipal Subway, and a Four-minute
walk from the Kitahama Station on the Keihan Main Line
February 22, 2008
Offices, Parking
S, SRC, B1/18F
3.0% (Based on a detailed earthquake risk analysis report
dated March 17 2008, created by Engineering & Risk
Services Corporation and OYO RMS Corporation).
Kajima Corporation
Kajima Corporation
Kajima Corporation
General Building Research Corporation of Japan
1,802.49 ㎡
14,648.13 ㎡
Fee simple
Fee simple
925.4％／100％
To be provided (plan)

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat their own risk. MID REIT and its affiliates disclaim any responsibility or liability for the consequence of investment in MID REIT.

Because a part of the Property is scheduled for siting on
vacant public land, it has obtained an easing in thefloor-area ratio (see Note 3 below). In addition, the vacantSpecial Instructions
public land will be used for general thoroughfare and will
require maintenance.
Acquisition Price¥10,800 million¥10,800million (capitalization method date of value
Appraisal Value
estimate: March 1, 2008)(Appraisal method, etc)
(Appraisal agency: Japan Real Estate Institute)Rental Status(estimate as of the date of acquisition) (Note 4)
Total Tenants (5)7Total Annual Rent (6)¥575,701 thousand
Security Deposit/Guarantee, etc.
¥456,381 thousand(7)
Rentable Area (8)10,189.50 m2
Rental Area (9)9,320.00 m2
Occupancy Rate (10)91.5％
Notes:
1.“Location (lot number),” “Completion Date,” “use,” “structure,” and “area” are listed based onrecorded registration.
2.“PML” is translated as “Projected Maximum Loss” in the real estate/insurance industries and is used
as a rating index for earthquake risk in buildings. From the risk curve, which shows the relationshipbetween loss and annual exceedance probability as calculated by Engineering & Risk Services
Corporation and OYO RMS Corporation, divide the “projected loss for a building with a recurrence
interval of 475 years” by the “replacement cost” and calculate the percentage. The result of thiscalculation defines “Projected Maximum Loss (PML).” A 475-year recurrence interval is the equivalentof a 10% certainty of an event occurring during the 50-year period of building use.
3.“Floor-area ratio is stipulated in Article 52 of the Building Standard Law and is the ratio of the area offloor space to site area, and the value specified in urban planning based on zoning and other factors islisted. In addition, the floor-area ratio of the Property’s land was originally 800%, but due to theapplication of an integrated design system, the floor-area ratio was expanded to 925.4%.
“Building-to-land ratio” is stipulated in Article 53 of the Building Standard 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. In addition, the building-to-land ratio of the Property’s land was originally 80%, because thelocation was within a commercial 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.“Rental Status (estimate as of the date of acquisition)” presented in the above table is based on dataand information provided by the seller of the Property. In more specific terms, the status factors in
the tenants whose lease periods have already commenced as of March 25, 2008 and other tenants who
have signed lease agreements as of March 25, 2008 and whose lease periods are scheduled to havecommenced on the date of acquisition of the Property.
5.“Total Tenants” presented in the table above is based on the assumption that the lessee on theapplicable master lease agreement has agreed to serve as the lessor to the end-tenants of the Property.
The figure cited is the sum of the number of end-tenants who are already leasing space in theProperty and any other end-tenants who have signed lease agreements as of March 25, 2008 andwhose lease periods are scheduled to have commenced on the date of acquisition of the Property. Not
included are end-tenants whose leases or scheduled leases are limited to such items as storage andparking spaces.
6.“Total Annual rent” lists the total monthly rent, including monthly rent, monthly common-area fee,storage-area fee, and facility usage fee, multiplied by twelve and rounded down to the nearest one
thousand yen.
7.“Security Deposit/Guarantee, etc.” lists the security deposit and guarantee (including room, storage
space, parking space, etc.) balance rounded to the nearest decimal place.
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 in the end Tenant Lease Agreement

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat their own risk. MID REIT and its affiliates disclaim any responsibility or liability for the consequence of investment in MID REIT.

10.“Occupancy rate” is listed as a percentage, rounded to the nearest decimal place, obtained by dividing
rental area by rentable area.

4. Seller Overview
Hull Asset TMK Limited
Seikou Building 6F,
7-2-1 Minami Aoyama, Minato-ku, Tokyo
Koichi Yokoyama, Representative Director
1. Transfer, management, and disposal of
specified assets in accordance with asset
liquidation plans based on laws related to asset
liquidation.
2. Other work incidental to the liquidation of
the aforementioned specified assets.
78.7% of the outstanding shares of the the
MID Urban Development Co., Ltd., the parent
company of MID REIT Management Co., Ltd.,MID REIT's asset management company, areindirectly held by a fund managed by Aetos
Capital, LLC. This special-purpose company is acompany established by said fund. In addition,
the MID Urban Development Co., Ltd. has
been entrusted with the management of assets
from this special-purpose company.

Company Name
Headquarter Location
Representative
Primary Business

Relationship to MID REIT

5. Interest of the Asset Management Company in the Property
With the aim of eliminating potential conflicts of interest and thereby enabling it toperform efficient asset management that will benefit MID REIT’s unitholders, the AssetManagement Company has formulated internal regulations that provide guidelines fortransactions between its sponsor companies and MID REIT. Under the internal regulations,
the Seller listed above falls under the category of a sponsor company. Accordingly, uponentering into an agreement with the Seller, the Asset Management Company followed
certain procedures stipulated in the aforementioned internal regulations, including thefollowing: approval by its Compliance Committee, which includes outside experts;
deliberation and resolution by its Investment Committee; and deliberation and resolution ata meeting of its Board of Directors.
6. Information on property owners, etc
Property
Name

Status of Building
Owner
Corporate Name
Relationship withrelated parties
Background andReason for
Acquisition
Acquisition Price(including otherexpenses)Acquisition date

Kitahama MID Building
Previous owner/ Trust beneficiary
Hull Asset TMK Limited

Owner prior to the previous owner/ Trust beneficiaryNone

See 4. above－

Newly constructed in February
2008

－

－

－

－

－

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat their own risk. MID REIT and its affiliates disclaim any responsibility or liability for the consequence of investment in MID REIT.

7. Overview of brokerage
Company Name
MID Urban Development Co. Ltd.
Headquarters Location 1-4-4 Dojimahama, Kita-ku, Osaka
Representative
Isao Yamamoto, President, Member of the Board
Commission¥216million (Excluding consumption taxes and local
consumption taxes payable）
MID Urban Development Co., Ltd. is the sole unitholder of
MID REIT Management Co., Ltd., the asset management
Relationship tocompany of MID REIT, with complete ownership of all of its
MID REIT or Asset units of common stock issued and outstanding.
management company This relationship applies to related parties of the asset
management company as stipulated by the Law for Investment
Trusts and Investment Corporations.
8. Settlement Method
The acquisition price will be paid to the seller in full using borrowings at the time theproperty is handed over (scheduled for April 24, 2008).
9. Schedule for Acquisition
March 25, 2008 Reached decision to acquire the Property
March 26, 2008 Conclude an agreement concerning the transfer of the trust beneficiaryinterest (Planned)
April 24, 2008 Acquire the trust beneficiary interest (Planned))
10. Outlook
For details regarding the impact of the acquisition of the Property on MID REIT’s
performance for the 4th fiscal period (January 1, 2008 – June 30, 2008) and the 5th fiscal
period (July 1 – December 31, 2008), please refer to the March 25, 2008 press release
entitled “Notice Regarding Revision of Business Results for the 4th Fiscal Period, Ending
June 30, 2008, and the 5th Fiscal Period, Ending December 31, 2008.”<Attachments>
Attachment 1: Appraisal Summary
Attachment 2: Property Portfolio after Acquisition of Kitahama MID Building
Attachment 3: Photograph of Kitahama MID Building
Attachment 4: Map of Kitahama MID Building（Japanese Ver.）

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat 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, unless otherwise stated (1)Appraiser
Japan Real Estate Institute
Final Appraisal Value
10,800,000
Appraisal Date
March 1, 2008
Value Calculated Using Direct Capitalization (DC) Method
10,900,000
Operating Revenues
630,154
Gross Potential Revenues
656,744
Vacancy Loss, etc.
－26,590
Operating Expenses
135,089
Maintenance and Management Expenses, etc. (2) 66,600
Real Estate Taxes
44,014
Other Expenses
24,475Net Operating Income (NOI)
495,065
Gains from Management of One-time Proceeds
9,901
CAPEX
14,020Net Cash Flows (NCF)
490,946
Overall Capitalization Rate
4.5%
Value Calculated Using Discount Cash Flow (DCF) Method
10,600,000
Discount Rate
4.3%
Terminal Capitalization Rate
4.6%
Value Calculated Using the Cost Method
8,740,000
Ratio of Land Price
48.8%
Ratio of Building Price
51.2%
Location- and
The Property is an office building located approximately 150 meters southeast of
Building-Specific Kitahama Station on the Sakaisuji Line on the Osaka Municipal Subway. The
Considerations
Kitahama area has developed as a financial center with a high concentration ofbanks and securities companies. More recently, redevelopment projects in the area
have been vigorously promoted. In particular, situated in the Kitahama
Renovation Block, a multipurpose development area that hosts offices, hotels,
residences and commercial facilities, the Property stands out and boasts superiortransportation access and living environment. The building of the Property has
been newly constructed based on a total design system. Equipped with suchleading-edge facilities as Vibration control structure, decentralized
air-conditioning and OA floors, the Property demonstrates high potential tosustain stable demand from various tenants.
Note 1: Amounts presented in the table above have been rounded to the nearest one-thousandth.
Accordingly, the sum of the line items for each group may not add up to the amountshown in the subtotal.
Note 2: Maintenance and Management expenses include utility expenses.

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat 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 Kitahama MID Building

Type

RegionProperty
No.

Property Name

1

Twin 21

2
3
4

Midosuji MID Bldg.

5

Higashinoda MID
Bldg.

10

MID Imabashi Bldg.

11

MID
Midosujikawaramachi
Bldg.

2,000

1.3

12

Kitahama MID Bldg.

10,800

6.9

－

－

1,160

0.7

128,740

81.7

2,780

1.8

Osaka Area
OfficeProperties

Matsushita IMP
Bldg.
Matsushita Denko
Bldg.

Tokyo metropolitan
6
Kyobashi MID Bldg.
area,
Government-designatedMID
cities (excluding the
7
Shibakanasugibashi
Osaka area) and otherBldg.
major cities
Subtotal（9 Properties）
Osaka area

Acquisition
Investment
Acquisition
Price
Ratio
Date
(Millions(%)
of Yen)Aug. 31,
68,70043.6
2006
Aug. 31,
24,60015.6
2006
Aug. 31,
7,620
4.8
2006
Aug. 31,
2006
8,290
5.3
Oct. 31,2007
Aug. 31,
2,300
1.5
2006
April 3,
3,270
2.1
2007

8

Konami Sports Club
Kyobashi

May 16,2007
April 24,2008
(planned)
Aug. 31,2006
Aug. 31,2006

Aug. 31,2006

Tokyo metropolitan
Non-officearea,properties Government-designated
AEON Tsudanuma
Aug. 31,
26,10016.6
9Shopping Center
2006
cities (excluding the
Osaka area) and othermajor cities
28,88018.3
Subtotal（2 Properties）
157,620
100.0
Total（11 Properties）
Note 1: Investment ratios presented in the table above have been rounded to the nearest decimal
place. Accordingly, the sum of the investment ratio figures may not add up to 100.0%.
Note 2: Data for Twin 21 includes the trust beneficiary interest of Twin21(partial ownership ofleased land)
Note 3: Data for Midosuji MID Bldg. includes that of the adjoining land.
Note 4: The Kyobashi MID Building is scheduled for sale on April 17, 2008.
Note 5: In addition to the portfolio properties listed in the table above, MID REIT has acquired aninterest in the silent partnership operated by Sakura Dori Development Limited Liability

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat their own risk. MID REIT and its affiliates disclaim any responsibility or liability for the consequence of investment in MID REIT.

Company that will develop the Sakura Dori MID Building (tentative name) on November
29, 2007 and January 30, 2008. In line with the acquisition of the silent partnershipinterest, MID REIT has been granted a preferential negotiation right, effective over a
six-month period after the completion of construction, to purchase a trust beneficiaryinterest in the Sakura Dori MID Building.

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat 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 the Kitahama MID Building

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat 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 Kitahama MID Building（Japanese Ver.）

Note: This press release provides information regarding MID REIT’s “Notice Regarding Acquisition of Property (Kitahama 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 made at the investors’ sole discretion and responsibility and are madeat their own risk. MID REIT and its affiliates disclaim any responsibility or liability for the consequence of investment in MID REIT.