August 15, 2017
To all concerned parties:
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 MidC ity Inc.
Representative: Toyota Watanabe, President & CEO
Inquiries:
Naoki Suzuki, Deputy President

TEL: +81-3-5293-4150

Notice Concerning Conclusion of Green Lease Agreement with Panasonic Corporationand Reception of Notice of Determination to Grant Subsidy
MCUBS MidCity Investment Corporation (hereafter “MCUBS MidCity”) announces that it concluded agreen lease agreement with Panasonic Corporation, a tenant of Twin 21 which MCUBS MidCity owns, andtoday received a notice of the determination related to the grant of a subsidy from the Shizuoka
Environment Resources Association (hereafter “SERA”) as a result of filing an application to SERA in
relation to the “Project for Promotion of CO2 Reduction at Tenant Buildings” subsidy within the Fiscal 2017
Project for Carbon Dioxide Emission Control Measures, etc. subsidy of the Ministry of the Environment, asdescribed below.
1. “Sustainability” efforts by MCUBS MidCity
MCUBS MidCity is promoting activities to maintain “sustainability” of the environment and the society.
Among its sustainability efforts, this project is an effort concerning “environmental performance”
towards environmental consciousness and environmental footprint reduction, through implementing
environmental/energy-saving measures and improving energy use efficiency at its holding properties.
With respect to energy management of its managing assets, MCUBS MidCity aims to contribute tosustainable development of society through implementing the following policies.
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Conduct business activities in consideration of energy saving/CO2 reduction.
Introduce more economical and efficient energy-saving equipment while considering characteristics
of facilities and tenant attribution for each property.
Aim to reduce specific energy consumption by an average of 1% or more per year from a medium tolong-term perspective.
By instilling the importance of reducing environmental load in all parties involved in asset
management (AM), property management (PM) and building management (BM), promotestreamlining measures with their full participation.
This project is an effort to reduce CO2 by cooperating with the tenant while receiving the subsidy fromSERA which receives subsidies from the Ministry of Environment.

12. Conclusion of green lease agreement(1) About green lease (Source “Green Lease Guide” by the Green Building Promotion Committee of the
Ministry of Land, Infrastructure, Transport and Tourism)
A green lease is where building owners and tenants collaborate to reach voluntary agreements withregards to energy saving and other environmental burdens of real estate as well as improvements ofindoor environments through contracts, memorandums of understanding (MOU) and such andimplement the contents of these agreements.
(2) Overview of green lease agreement
The green lease agreement concluded with Panasonic Corporation is a “green lease with energy efficiency
retrofit” where a tenant returns monetary benefits to a building owner when the benefits of the building
owner’s investment in energy-saving retrofit are attributed to the tenant. It aims to redistribute economic
benefits by returning part of the tenant’s reduction of electricity charges which came from retrofit
investment by MCUBS MidCity as a green lease fee. Both the tenant and MCUBS MidCity can gain economic
benefits with establishing a win-win relationship, even when the tenant pays the green lease fee to MCUBSMidCity, as the tenant can further enjoy the benefit of electricity charge reduction.

An overview of the green lease agreement is as follows:
Property nameTwin 21
Tenant name
Panasonic Corporation
Content of renovation work
The lights in the exclusive areas on the 2nd to 38th floors ofTwin 21 OBP Panasonic Tower will be changed to LED lighting.
Cost burden
The initial costs of the renovation work will be fully born by
MCUBS MidCity and the above tenant will pay the green leasefee to MCUBS MidCity during the following contract period.
Date of conclusion of contract
July 25, 2017
Contract period
From January 1, 2018 to December 31, 2022 (5 years)
Others
The tenant will pay the lease fee for the remaining period whencancelling the contract during the period.
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3. Grant of subsidy for the Project for Promotion of CO2 Reduction at Tenant Buildings
The “Project for Promotion of CO2 Reduction at Tenant Buildings” is one of the projects conducted by
SERA to grant subsidies after receiving subsidies for the Fiscal 2017 Project for Carbon Dioxide Emission
Control Measures, etc. from the Ministry of the Environment, to projects aiming to contribute tosignificant reduction of carbon in operations and other divisions by promoting the reduction of CO2 intenant buildings, realizing, spreading and expanding advanced commercial buildings, etc., andpromoting renovations to reduce CO2 in existing commercial facilities.
MCUBS MidCity filed an application related to the grant of a subsidy for the “Project for Promotion of
CO2 Reduction at Tenant Buildings” as of July 27, 2017 and received a notice of determination related tothe grant of a subsidy as of today. The amount of subsidy to be granted will be decided after thecompletion of the renovation work described in 2 (2) above and an inspection by SERA.
4. Future outlook
There will not be major impact on the business results for the fiscal period ending December 31, 2017
(the 23rd fiscal period: July 1, 2017 to December 31, 2017) and June 30, 2018 (the 24th fiscal period:January 1, 2018 to June 30, 2018) due to this project and the outlook of the business results will remainunchanged. Furthermore, MCUBS MidCity will continue to promote activities to maintain “sustainability”
of the environment and the society, including this project.

This English language release is for informational purposes only, and the Japanese language release should bereferred to as the original.
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