March 5, 2012
Daiwa Securities Group Inc.
Daiwa PI Partners Co. Ltd.
Attention
This is an unofficial translation of an excerpt of the press release issued on March 5,2012, by Daiwa Securities Group Inc. and Daiwa PI Partners Co. Ltd. The original
press release is in Japanese.
Notice regarding additional acquisition of the investment units of Daiwa Office
Investment Corporation and expected consolidation as a consolidated subsidiary
As announced on our press release, “Notice regarding additional acquisition ofthe investment units of Daiwa Office Investment Corporation by Daiwa PI Partners Co.
Ltd. from K.K. Columbus as a result of the foreclosure of the security interest” dated
February 21, 2012, Daiwa PI Partners Co. Ltd. (“Daiwa PIP”), a consolidated subsidiaryof Daiwa Securities Group Inc. (“DSGI”), in order to preserve a loan (the “Loan”)
provided under the loan agreement executed with K.K. Columbus (“Columbus”) dated
as of May 13th, 2011(the “Agreement”), acquired 52,500 investment units (13.26% of thetotal issued and outstanding investment units) issued by Daiwa Office Investment
Corporation (“DOI”) from Columbus on February 21, 2012 by way of the foreclosure ofthe security interest on the investment units of DOI held by Columbus.

Furthermore,

we hereby announce that Daiwa PIP foreclosed such security interest against 15,000
investment units of DOI (3.79% of the total issued and outstanding investment units) on
February 28, 2012, and will further foreclose the rest of DOI’s investment units held byColumbus, 1,405 investment units (0.35% of the total issued and outstanding
investment units) on March 6, 2012.

Accordingly, Daiwa PIP, together with theinvestment units acquired on February 28, 2012,

will acquire 16,405 additional

investment units in total (4.14% of the total issued and outstanding investment units)from Columbus (such additional acquisitions, the ”Additional Acquisitions”).
In addition, we also announce that, in accordance with the “effective controlstandards” of the accounting standards, DOI is expected to be treated as a consolidated
subsidiary of DSGI in its consolidated financial statements.

1. Reasons for the Additional Acquisitions
After Daiwa PIP’s foreclosure of 52,500 investment units of DOI held by
Columbus on February 21, 2012, the conditions for the foreclosure of the security
interest provided for in the Agreement were fulfilled again. Therefore, in order topreserve the Loan, Daiwa PIP conducts the Additional Acquisitions by way offoreclosure of the security interest on February 28, 2012 and March 6, 2012.

2. Outline of the Security Interest Provider of the Units(as of March 5, 2012)
1. Company Name

K.K. Columbus

2. Address

10-1, Roppongi 6-chome, Minato-ku, Tokyo

3. Title and Name ofRepresentative

President, Brian Defoe・Conclusion of Tokumei-Kumiai contracts and management4. Description of Businessof assets in which such Tokumei-Kumiai invest・Acquisition, possession, sale and purchase of investment
securities

5. Amount of Capital

JPY 100 million

6. Shareholders

K.K. daVinci Holdings: 100.0％

7. Relationships with Daiwa
Securities Group Inc.

Capital Relationship:

Not applicable

Personal Relationship:

Not applicable

Business Relationship:

Not applicable

Status as a Related
Party:

Columbus, its subsidiaries and its
affiliates are not Related Parties
of Daiwa Securities Group Inc.

3. Number of investment units acquired through the Additional Acquisitions andInvestor Composition before and after the Additional Acquisitions（1）Number of investment units acquired:

16,405 units（2）Investor Composition before and after the Additional Acquisitions:(Before the Additional Acquisitions)1. Number of investment
units heldDSGI

Daiwa PIP

K.K. Columbus

51,893 units

112,500units

16,405 units

13.11 %

28.42 %

4.14 %

3rd

1st6thDSGI

Daiwa PIP

K.K. Columbus

51,893 units

128,905units

0units13.11 %

32.57 %

0%

3rd

1st-2. Investment-holding
ratio against the total
outstanding investmentunits
3. Rank among investment
unit holders※ As of February 21st(After the Additional Acquisitions (Planned))
1. Number of investment
units held
2. Investment-holding
ratio against the total
outstanding investment
units
3. Rank among investment
unit holders※ The total number of the investment units held by DSGI and Daiwa PIP will be
180,798 (45.68% of the total outstanding investment units).
4. Date of Acquisitions

February 28, 2012 and March 6, 2012 (planned)

5. Outline of DOI to be consolidated(as of March 5, 2012)
1. Company Name

Daiwa Office Investment Corporation

2. Address

2-1, Ginza 6-chome, Chuo-ku, Tokyo

3. Title and Name ofRepresentative
4. Asset Management
Company

Executive Director, Kazuo Otaka
Daiwa Real Estate Asset Management Co., Ltd. (“DREAM”)

5. Description of Business

Investment in and management of specified assets

6. Amount of Capital

JPY 198,780 million

7. Date of Incorporation

July 11th, 2005

8. Principal Unitholders andDaiwa PI Partners Co. Ltd.
Japan Trustee Services Bank, Ltd(Trust Account)
Daiwa Securities Group Inc:

their investment-holdingratios (※)

32.57％
14.78%
13.11％DSGI holds 51,893 investment unitsof DOI.

Capital Relationship:

Furthermore, DSGI holds wholeshares of DREAM.
There is no personal relationshipbetween DSGI and DOI. On thePersonal Relationship:

other hand, some executives andemployees of DSGI have been also
appointed as directors of DREAM.
DSGI holds First Series Unsecured
Subordinated Investment
Corporation Bonds with Early

9. Relationships between
DOI and DSGI, andDREAM and DSGIRedemption Clause (limited toBusiness Relationship:

Qualified Institutional Investors),
and receives interests on thissubordinated bonds.
Moreover, DSGI has entered into asponsor support agreement withDREAM.
DOI has been an equity method
affiliate of DSGI, and will become aconsolidated subsidiary of DSGI from

Status as a Related

the fourth quarter of FY 2011.

Party:In addition, DSGI falls under thedefinition of “Interested Person, etc.”
under the Act on Investment Trusts
and Investment Corporations.

10. Financial history in theFiscal Period endedlatest three consecutive

on November 30,

accounting period

2010

Operating Revenue

JPY 6,424 million

Fiscal Period ended
on May 31, 2011
JPY 6,758 million

Fiscal Period endedon November 30,2011
JPY 7,605 million

Operating Income

JPY 2,481 million

JPY 2,823 million

JPY 3,317 million

Ordinary Income

JPY 1,273 million

JPY 1,587 million

JPY 1,767 million

Net Income

JPY 1,282 million

JPY 1,453 million

JPY 1,766 million

Total Assets

JPY 294,562 million JPY 298,626 million JPY 323,217 million

Net Assets

JPY 200,063 million JPY 200,234 million JPY 200,548 million※ The shareholding ratios of Daiwa PIP and DSGI are expected ratios after theAdditional Acquisitions, and the shareholding ratio of Japan Trustee Services Bank,
Ltd (Trust Account) is as of November 30th, 2011.

6. Prospects
Even though the aggregate number of investment units of DOI held by DSGIand Daiwa PIP will be limited to 180,798 (45.68% of the total outstanding investment
units), DOI is expected to be treated as a consolidated subsidiary of DSGI in its
consolidated financial statements in accordance with the “effective control standards” of
the accounting standards. Upon the consolidation of DOI as a consolidated subsidiaryof DSGI, pursuant to the “Accounting Standard for Consolidated Financial Statements”,
DSGI will measure DOI’s assets and debts at fair value, and perform various accounting
procedures, and from the fourth quarter of the fiscal year ending March 2012, theresults of DOI is expected to be reflected as a consolidated subsidiary on the
consolidated results of DSGI.

We are now examining the impact thereof on the

consolidated results of DSGI.
For your information, we believe that the Additional Acquisitions will not affectthe conduit status of DOI for taxation purposes the requirements for which arestipulated under Article 67-15 of the Act on Special Measures Concerning Taxation (the“Act”), because the aggregate investment-holding in DOI held by DSGI and Daiwa PIP(and those who have special relationships defined in Paragraph 5, Article 39-32-3 of theEnforcement Order for the Act with either of DSGI or Daiwa PIP) does not exceed 50%.
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