Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

June 14, 2016
REIT Issuer
Ichigo Hotel REIT Investment Corporation (3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: +81-3-3502-4892
Establishment of Ichigo Green Infrastructure Fund
Ichigo Real Estate Investment Advisors Co., Ltd. (“IRE”), the asset management company ofIchigo Hotel REIT, has decided to establish and list a new infrastructure fund, the Ichigo GreenInfrastructure Investment Corporation (“Ichigo Green Infrastructure Fund”), on the Tokyo Stock
Exchange’s Infrastructure Fund Market and file a report as the organizer to the Commissioner ofthe Financial Services Agency (FSA) in accordance with Article 31 Paragraph 3 of the Financial
Instruments and Exchange Law and Article 21 of the Cabinet Office Ordinance Concerning
Financial Instrument Services Business. 1
1The establishment and listing of the Ichigo Green Infrastructure Fund is subject to approval
by relevant authorities and the Tokyo Stock Exchange.

1. Objective
With its entry into the listed green infrastructure market, IRE is seeking to maximize
shareholder value by bringing together the solar power plant operating expertise of its parent,
Ichigo Inc. (2337), and IRE’s track record as a REIT asset manager.
With the support of Ichigo Inc. as REIT sponsor, IRE currently manages two J-REITs, Ichigo
Hotel REIT (3463) and Ichigo Office REIT (8975). The Ichigo Green Infrastructure Fund
will thus be IRE’s third publicly-listed investment management vehicle and will focus on
solar power plant investments, offering shareholders an opportunity to invest in the rapidly
expanding green infrastructure asset class while contributing to the development of Japan’s
capital markets.
Ichigo Hotel REIT and the Ichigo Green Infrastructure Fund have different investment
targets and investment criteria. Nevertheless, to manage and prevent any potential conflictsof interest among the various funds that IRE advises, IRE is amending its internal regulations
concerning the handling of real estate-related information effective today.

12. Details of the Ichigo Green Infrastructure Fund
NameIchigo Green Infrastructure Investment Corporation (Expected)

Location

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo (Expected)

Representative

Mami Nagasaki (Expected)

Organizer

Ichigo Real Estate Investment Advisors Co., Ltd.

3. Schedule
Establishment FilingJune 17, 2016 (Expected)

Establishment Date

June 24, 2016 (Expected)

Registration Application

Mid-July 2016 (Expected)

Registration Completion

Mid-August 2016 (Expected)

Note: The above schedule is subject to change, depending on the progress of IRE’s internal
procedures and relevant regulatory approvals.
4. Overview of the Changes in Operational Procedures(a) Details of Changes(i) Subject to shareholder approval, IRE will revise its managed asset types (i.e., Office,Hotel, etc.) in its statements of operational procedures(ii) IRE has newly established a Green Infrastructure Division to manage the Ichigo
Green Infrastructure Fund. (For details, please refer to today’s release “Changes inStatutory Executive Officers, Key Personnel, and Organization of the AssetManagement Company.”)(b) Date of Report Submission to the FSA
June 28, 2016 (Expected)
5. Management and Prevention of Potential Conflicts of Interest
In addition to the Ichigo Green Infrastructure Fund, IRE manages the Ichigo Hotel REIT, theIchigo Office REIT, and private equity real estate funds. To prevent and manage any
potential conflicts of interest, IRE has reworked its existing “Regulations Concerning
Information Related to Real Estate” that prevent arbitrary allocation of attractive acquisition
opportunities and renamed them “Regulations Concerning Information Related to Acquired
Assets.”
Details of IRE’s information handling rules are as follows:(a) Should IRE obtain information about a potential asset acquisition (“Lead”), theAcquisitions & Sales Division shall conduct a preliminary assessment to determine
whether to proceed with the Lead.
(b) Rotation Rule(i) A Lead that passes the preliminary assessment shall be shared with the President,
Hotel REIT Division Head, Office REIT Division Head, Green Infrastructure
Division Head, Private Funds Division Head, and Acquisitions & Sales Division
Head at the Pipeline Committee. Should the Committee agree to proceed with theLead, the Lead shall be given to the relevant Division according to the rotation rulebelow, where First Look is the primary acquisition right, Second Look is thesecondary acquisition right, etc.:2Asset Type

Use

Year Built

First Look

Second Look

Third Look

Fourth Look

Even

Office REIT

Private Funds/
Ichigo Inc.

Hotel REIT

–Odd

Private Funds/
Ichigo Inc.

Office REIT

Hotel REIT

–Even

Hotel REIT

Private Funds/
Ichigo Inc.

Office REIT

–Odd

Private Funds/Ichigo Inc.

Hotel REIT

Office REIT––Private Funds/
Ichigo Inc.

Hotel REIT

Office REIT

–EvenGreenPrivate Funds/
Infrastructure
Ichigo Inc.

Hotel REIT

Office REIT

Odd

Private Funds/
Green
Ichigo Inc.
Infrastructure

Hotel REIT

Office REIT

OfficeReal Estate
HotelOther
Renewable
EnergyPowerPlants–Notes:1) If a renewable energy generation facility is part of a real estate asset, it isconsidered Real Estate for these purposes.
2) For mixed-use assets, Use is based on area, e.g., for an office/hotel complex, if
more space is occupied by offices, it is classified as an Office asset.
3) If the acquisition is a building with an addition, Year Built refers to the year theaddition was completed. If the acquisition is a company, Year Built refers tocompany’s incorporation date. If the acquisition is a renewable energy generation
facility, Year Built refers to the year when power sale starts, as stipulated in thepower sale contract.
4) Hotel includes furnished and serviced residential assets and accommodations, aswell as their annexes and ancillaries.
5) Private Funds Division acquisition priorities refer to both private fund and Ichigo
Inc. acquisitions.

(ii) Regardless of (i) above, if the seller is Ichigo Inc., its subsidiary, or a company thatis owned fully or in part by Ichigo Inc. or its subsidiary, and the seller designates
Ichigo Office REIT or Ichigo Hotel REIT or Ichigo Green Infrastructure Fund as theacquirer, Office REIT Division, Hotel REIT Division, or Green Infrastructure
Division shall have the First Look.
(c) If the Division Head with First Look rights decides not to pursue the Lead, then theLead is given to the Division with Second Look rights, and so forth.
(d) All decisions in (b) and (c) are subject to approval of the Compliance Officer.
(e) The Hotel REIT Division shall regularly report the results of these procedures to theIchigo Hotel REIT Board of Directors.

6. Earnings Outlook
The earnings impact on Ichigo Hotel REIT of the establishment of the Ichigo GreenInfrastructure Fund and the changes in operational procedures is none. Therefore, norevisions will be made to Ichigo Hotel REIT’s release on March 16, 2016 “Earnings andDividend Forecast Revisions for the July 2016 and January 2017 Fiscal Periods.”3