Creating peace of mind through honest and committed management.

[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 10, 2014
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Minoru Ishihara, Executive Vice President & Statutory Executive Officer
Tel: 03-3502-4891

Acquisition of Portfolio Asset(Additional Section of Ichigo Mirai-Shinkin Building)

Ichigo Real Estate Investment Advisors Co., Ltd. (“IRE”), the asset management company ofIchigo Real Estate Investment Corporation (“Ichigo REIT”), has decided to acquire anadditional section of the following asset.
1. Acquisition Summary
Asset (Note 1)

Real estate

Asset Name (Note 2)

Ichigo Mirai-Shinkin BuildingLocation

3-1 Niagemachi, Oita City, OitaAsset Type (Note 3)

OfficeAcquisition Price (Note 4)

58,000,000 yenSeller

Oita Mirai Shinkin Bank

Contract Date

June 10, 2014

Closing Date (expected)

July 31, 2014

Financing Method

Cash on hand (expected)

Settlement Method

Lump-sum payment at the time of transfer(Note 1) After the completion of the acquisition, Ichigo REIT will entrust Sumitomo Mitsui
Trust Bank with the asset as of the Closing Date and own the asset as trust
beneficiary right in real estate.
(Note 2) The real estate Ichigo REIT is acquiring consists of the following: 1) an additional
section of Ichigo Mirai-Shinkin Building; 2) a part of the land where Ichigo
Mirai-Shinkin Building is located. For more details, please refer to section “3.
Asset Acquisition Overview” of this release.
(Note 3) Only the major asset type is listed in the table above.
(Note 4) Acquisition Price is exclusive of expenses incidental to the acquisition, such as1

property tax, city planning tax, and consumption tax.

2. Acquisition Rationale
The real estate consists of an office building and a multi-story parking structure across the street
from the building, part of which Ichigo REIT had already acquired as of November 1,2011(Note 5). The asset is a sectional ownership of 83.33% of the total building(4,409.37m2/5,291.27m2) and 82.971% of the land. The rest of the building and the land belongs
to Oita Mirai Shinkin Bank.
A former owner and Oita Mirai Shinkin Bank have established an agreement on themanagement and use of the office building, land, and additional structures. Pursuant to theprovision of the agreement, when selling the whole or a part of the building or land to a thirdparty, the current owner of the asset must offer to sell and transfer the building or land to boththe former owner and Oita Mirai Shinkin Bank in preference to the third party.
Ichigo REIT has decided to acquire the asset based on the assessment that, by acquiring anadditional part of the real estate in accordance with the agreement and entrusting the acquired
asset, Ichigo REIT’s sectional ownership for the land rises to 91.119% (Note 6) and its sectional
ownership for the building based on the registered total area rises to 90.57% (Note 6), which
will contribute to improving the value of the property and management efficiency.

(Note 5) Ichigo REIT acquired this property as of November 1, 2011 when the former Ichigo
Real Estate Investment Corporation (former CREED OFFICE Investment
Corporation) was absorbed into Ichigo REIT. The former CREED OFFICE
Investment Corporation acquired this property as of March 15, 2006, as announced
in the former CREED OFFICE Investment Corporation’s release “Notice ofTransactions with Interested Parties” on March 17, 2006.
(Note 6) The percentage is calculated from floor area derived from multiplying the figures
taken from center lines of the walls on the final plans of the building made at thetiming of the completion of construction. The actual percentage of land and of thebuilding to be recorded on the register will be fixed prior to the settlement of thisacquisition, and after the completion of the construction work by the seller topartition the asset into units owned by separate owners and measuring the actual
dimensions of the interior walls from surface to surface.

2

3. Asset Acquisition Overview
Detail of the asset Ichigo REIT plans to acquire in this acquisition is as follows.
Asset Overview
Asset (Note 7)
Asset Name (Note 8)
Location (Address)
Asset Type (Note 9)Land(Note 10)

Building(Note 11)

Appraisal Overview (Note 14)

Real estateAppraiser

Ichigo Mirai-Shinkin
Building
3-1 Niagemachi, Oita City,Oita
OfficeThe Tanizawa Sōgō
Appraisal Co., Ltd.

Value

71,800,000 yen

Date

April 30, 2014

Value by Direct Capitalization
Method74,700,000 yen

Property Right

Freehold (right of site)

Size1,027.74 m2

Obtainable Rent Income

10,607,726 yenSize of Land
Acquired

83.74 m2

Other Income

1,048,354 yen

Size of Land
Ichigo REITOwns afterAcquisition

936.47 m2

Amount Equivalent toLoss on Vacant Space

1,165,607 yen

ZoningCommercial

Coverage
Ratio / Floor
Area Ratio

80% / 500%

Administrative andMaintenance Expenses

Property Right

Freehold (sectionalownership)

Taxes

ZoningOfficeOther Expenses

Structure

S/RC, 8F

Net Operating Income (NOI)

Total Floor
Area

5,591.20 m2

Gain on Investment ofDeposits

109,365 yen

383.06 m2

Capital Expenditure

1,302,000 yen

4,792.43 m2

Net Profit

5,006,454 yen

February 10, 1994

Cap Rate

6.7%Floor Area
AcquiredFloor Area
Ichigo REITOwns afterAcquisition
Construction
Date

IncomeExpenses

10,490,473 yen

4,291,384 yen
1,290,929 yen

890,200 yen
2,110,255 yen
6,199,089 yen

Architect

Raymond Tanabe
Architectural DesignOffice, Inc

Builder

Sato Corporation

Discount Rate

6.9%

Structural Strength
Calculator

Raymond Tanabe
Architectural Design
Office, Inc.

Terminal Cap Rate

6.9%

Inspection Agency

PML (Assessor)
Collateral

Value by DCF Method

Building Official(Oita City)
7.83 % (Sompo Japan
Nipponkoa Risk
Management Inc.)

Value by Cost Approach

Collateralized

3

70,600,000 yen

70,800,000 yen

Land

31.00%

Property

69.00%Rent Overview (Note 12)
Number of Tenants－

Monthly Rental Income－Deposit－

Leasable Space

304.04m2

Leased Space－Occupancy0%

Property ManagementCompany

XYMAX PROPERTIESKYUSHU Corporation

Master Lease Company－

Reference: NOI / year
(NOI yield) (Note 13)

6 million yen (10.7%)

Rent Overview (Note 11)

Special Items
Renovation of leasable space and common space (to cost 8 million yen) is planned after the acquisition.
Characteristics of the Asset(i) Location
The property is located near government office area in a commercial district where insurance office buildings line the street.
Since branch offices of leading companies are clustered in this area, Ichigo believes that there is stable demand for new store
openings and for expansion of offices or stores in the area.
(ii) Asset Characteristics
The property benefits from convenient train access, including a 10-minute walk away from Oita station on JR Nippo Line.This
is also a highly-visible office building facing the main street of the city, Chuo Dori.

(Note 7) Please refer to section “1.Acquisition Summary: Asset (Note 1)” of this release.
(Note 8) Please refer to section “1.Acquisition Summary: Asset Name (Note 2)” of this release.
(Note 9) Please refer to section “1.Acquisition Summary: Asset Type (Note 3)” of this release.
(Note 10) Size of the land is calculated by multiplying the percentage of land Ichigo REIT co-owns as aresult of this acquisition by the size of the land, and the percentage of which is expected to be
91.119% of the total size of the land. Please refer to section “2.Acquisition Rationale (Note 6)” ofthis release.
(Note 11) The percentage of floor space acquired for exclusive use by Ichigo REIT is expected to be 90.57% of the total
floor space of 5,291.27m2 excluding the common area of the building. Please refer to section “2. Acquisition
Rationale (Note 6)” of this release.
(Note 12) Until this acquisition, the seller was using the area Ichigo REIT acquires in this acquisition, and thus
there are currently no tenants for this area. After the Closing Date, IRE plans to launch leasing activities
without delay. As of the Closing Date of this acquisition, the occupancy rate for this building including
the part Ichigo REIT already owned prior to this acquisition is expected to be 87.8%.
(Note 13) The value indicated above as NOI is the income derived from Direct Capitalization in the Appraisal. NOI yieldis the value derived by dividing NOI by acquisition price and rounded to the second decimal place.
(Note 14) The content of this Appraisal Overview is of the asset acquired in this acquisition.

44. Financial Impact on Ichigo REIT in the Event of Failure to Fulfill Forward Commitment orSimilar Agreement
The sales agreement for the to-be-acquired asset (hereafter, the “Conveyance Agreement”)
constitutes a forward commitment or similar agreement (Note 15) by Ichigo REIT as stipulated
in the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators,etc.” by the Financial Services Agency.
In the event of a violation of the provisions of the Conveyance Agreement by Ichigo REIT or
the seller, the other party shall have the right to terminate the Conveyance Agreement and claim
an amount equivalent to 20% of the purchase price as penalty for the agreement termination.
The Conveyance Agreement does not prohibit the other party to claim additional damages if theamount of damages exceeds the above-mentioned amount.
Since Ichigo REIT plans to acquire this property with cash on hand, it is unlikely that Ichigo
REIT will not be able to fulfill its obligations under the Conveyance Agreement.
(Note 15) Refers to a postdated purchase and sales agreement under which payment andproperty delivery shall be made at least 1 month after the conclusion of the agreement,or any other agreement similar thereto.
5. Seller Profile
Name

Oita Mirai Shinkin BankAddress

1-31 Eki-mae Hon-machi,Beppu,Oita

Representative

Investment in Capital

Keiji Seki
1. Deposit and loan operations
2. Securities investment
3. Other businesses relating to the aforementioned businesses
1,397,000,000 yen

Establishment Date

April 12, 1922

Equity Holder
Relationship with theIchigo REIT or AssetManager
Net Assets in
Most Recent Fiscal Year
Total Assets in
Most Recent Fiscal Year

Undisclosed
The Seller does not have any capital, personnel, or business relationshipand is not a related party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law.

Principal Businesses

24,360,000,000 yen
379,604,000,000 yen

6. Property Titleholders (*for transactions with interested parties)
N/A
7. Broker Profile
N/A
8. Future Outlook
This acquisition has little impact on the earning forecast of Ichigo REIT, and no amendment ismade to the forecast set forth in the release “Earnings and Dividend Forecast for the October
2014 Fiscal Period ”as announced on April 25, 2014.
Website of Ichigo REIT: www.ichigo-reit.co.jp/english
5

Property Photos and Location Map

Diagram of the Property

8F: Office
7F: Office
6F: Office
5F: Officemulti-storyparking
structure

4F: Office
3F: Office
2F: Office
1F: OfficeAcquired by Ichigo REIT in this acquisition (7.24%)
Already owned by Ichigo REIT prior to this acquisition (83.33%)
Owned by a third party (9.43%)

6

Portfolio Reference Information
1. Post-Acquisition Portfolio Summary

Occupancy
Average Building Age

Before Acquisition(A)
96.0% (Note 16)
18.7 years(Note 17)After Acquisition
(B)
95.8%

Difference
(B-A)
-0.2%

18.7 years－Diversification by Area (Metropolitan
Area/Other Areas)
75.2% / 24.8%
75.1% / 24.9% -0.1% / +0.1%(Note 18)
(Note 16) Occupancy in column A (“Before Acquisition”) is the value as of April 30, 2014.
(Note 17) Average Building Age in column A is the value as of May 31, 2014.
(Note 18) “Metropolitan Area” refers to "Central Tokyo" and “Tokyo Metropolitan Area.”and “Other Areas” refers to “Four Major Regional Cities” and “Other RegionalCities.” Also, percentage is calculated from acquisition prices.
2. Post-Acquisition Portfolio Assets

No.
O-02
O-03
O-04
O-05
O-06
O-07
O-08
O-09
O-10
O-11
O-12
O-13
O-14O-15
O-16
O-17
O-18
O-19
O-20
O-21
O-22
O-23
O-24
O-25
O-26
O-27
O-28
O-29

Property
Ichigo Nishisando Building
Ichigo Mita Building
Ichigo Nanpeidai Building
Ichigo Hanzomon Building
Ichigo Hijirizaka Building
Ichigo Shibuya Kamiyamacho Building
Ichigo Akasaka 5 Chome Building
Ichigo Shibakoen Building
Ichigo Ebisu-Nishi Building
Ichigo Ginza 612 Building
Ichigo Uchikanda Building
Ichigo Kudan-Minami Building
Ichigo Yotsuya 4 Chome Building
Ichigo Tameike Building
Ichigo Jimbocho Building
Ichigo Hakozaki BuildingIchigo Kudan 2 Chome Building
Ichigo Kudan 3 Chome Building
Ichigo Gotanda Building
Ichigo Shin-Yokohama Building
Ichigo Minami-Ikebukuro Building
Ichigo Nakano North Building
Ichigo Eitai Building
Ichigo Yokosuka Building
Ichigo Ikejiri Building
Route Ikebukuro Building
Ichigo Nishi-Gotanda Building
Ichigo Kichijoji Building

Area
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Tokyo Metropolitan Area
Central Tokyo
Tokyo Metropolitan Area
7

AcquisitionPrice(mm yen)(Note 19)
3,254
2,740
1,920
1,550
1,200
1,505
735
1,100
1,917
1,773
1,140
387
550
580
1,820
1,150
763
844
5,060
1,816
1,460
764
1,490
971
2,030
639
765
2,160

% ofPortfolio(Note 20)
2.8%
2.4%
1.7%
1.4%
1.0%
1.3%
0.6%
1.0%
1.7%
1.5%
1.0%
0.3%
0.5%
0.5%
1.6%
1.0%
0.7%
0.7%
4.4%
1.6%
1.3%0.7%
1.3%
0.8%
1.8%
0.6%
0.7%
1.9%

O-33
O-34
O-35
O-37
O-38
O-39
O-40
O-42
O-44
O-46
O-47
O-48
O-49
O-50
R-01
R-02
R-03
R-04
R-05
R-06
R-07
R-08
R-09
R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-18
Z-01
Z-02
Z-03
Z-04
Z-05
Z-06
Z-07
Z-08
Z-09
Z-10
Z-11

Ichigo Meieki Building
Ichigo Sakae Building
Ichigo Sendai Chuo Building
Ichigo Marunouchi Building
Ichigo Toyamaeki-Nishi Building
Ichigo Mirai-Shinkin Building
Ichigo Saga Building
Ichigo Takamatsu Building
Akita Sanno 21 Building
Ichigo Kanda-Nishikicho Building
Ichigo Akiharaba North Building
Ichigo Sakaisuji Honmachi Building
Ichigo Kanda Ogawamachi Building
Ichigo Hatchobori Building

Four Major Regional Cities
Four Major Regional Cities
Other Regional Cities
Four Major Regional Cities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Four Major Regional Cities
Central Tokyo
Central Tokyo
Subtotal - Office (42 Properties)
ForeCity Roppongi
Central Tokyo
ForeCity Azabujuban
Central Tokyo
ForeCity Azabujuban No.2
Central Tokyo
Bureau Takanawadai
Central Tokyo
ForeCity Shirokanedai
Central Tokyo
B-Site Hamamatsucho
Central Tokyo
ForeCity Akihabara
Central Tokyo
Suite One Court
Central Tokyo
Ichigo Serviced Apartments Ginza
Central Tokyo
ForeCity Sasazuka
Central Tokyo
Gran Presso Kawadacho
Central Tokyo
ForeCity Sakurashinmachi
Tokyo Metropolitan Area
ForeCity Shinkamata
Tokyo Metropolitan Area
ForeCity Nakaochiai
Central Tokyo
ForeCity Tomigaya
Central Tokyo
ForeCity Ryogoku
Tokyo Metropolitan Area
ForeCity Toyosu
Tokyo Metropolitan Area
ForeCity Nishihonmachi
Four Major Regional Cities
Subtotal - Residence (18 Properties)
Falcon Shinsaibashi Building
Four Major Regional Cities
Fiesta Shibuya
Central Tokyo
Burg Omori
Tokyo Metropolitan Area
Pagoda Asakusa
Tokyo Metropolitan Area
Regalo Building
Tokyo Metropolitan Area
Ichigo Yokohama-Nishiguchi Building Tokyo Metropolitan Area
El Centro Sapporo
Four Major Regional Cities
Daimyo Balcony
Four Major Regional Cities
Konami Sports Club Izumi Fuchu
Other Regional Cities
Ichigo Shibuya Bunkamura-DoriCentral Tokyo
Building
Twicere Yokohama Isogo (RetailTokyo Metropolitan Area
Section)Subtotal - Other (11 Properties)
8837
4,705
510
6,710
1,650
1,158
659
3,010
5602,130
5,500
1,940
2,210
1,905
75,567
1,730
1,140
1,250
1,360
824
701
2,520
786
946
1,050
592
932
1,040
435
1,341
1,080
1,349
927
20,005
3,410
1,970
3,218
1,640
1,310
903
558
638
1,210

0.7%
4.1%
0.4%
5.9%
1.4%
1.0%
0.6%
2.6%
0.5%
1.9%
4.8%
1.7%
1.9%
1.7%
66.0%
1.5%
1.0%
1.1%
1.2%
0.7%
0.6%
2.2%
0.7%
0.8%
0.9%
0.5%
0.8%
0.9%
0.4%
1.2%
0.9%
1.2%
0.8%
17.5%
3.0%
1.7%
2.8%1.4%
1.1%
0.8%
0.5%
0.6%
1.1%

2,400

2.1%

1,620

1.4%

18,877

16.5%

Total (71 Properties)

114,449

100.0%(Note 19) Acquisition Price is normally either the actual acquisition price (excludingconsumption tax) or the acquisition price (excluding consumption tax) as describedin the sales agreement for the to-be-acquired asset. Nonetheless, 36 assets from O-02
to O-44 except O-39 and 7 assets from Z-02 to Z-08 are listed with the appraisal
value as of October 31, 2011 to reflect acquisition via the REIT merger at that time.
As for O-39, the underlying asset in today’s release, the Acquisition Price in thisacquisition is added to the appraisal value as of October 31, 2011.
(Note 20) % of Portfolio is the Acquisition Price as a percentage of the Total Acquisition Priceand rounded to the nearest second decimal place.

9