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[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.

REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director

July 30, 2014

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

Notice of New Loan, Interest Rate Swap, and Repayment of Existing Loan
Ichigo Real Estate Investment Corporation (“Ichigo REIT”) has decided to repay its existing GE
loan with a longer Sumitomo Mitsui Banking Corporation (SMBC)-led syndicate loan whose
interest rate is fixed with an interest rate swap. The loan syndicate includes SMBC, Mizuho
Bank, Aozora Bank, Shinsei Bank, Resona Bank, Kagawa Bank, and ORIX Bank.
1. New Loan
(1) Reason for New Loan
This refinancing further strengthens Ichigo REIT’s lender formation and reduces its
interest rate costs, while extending and diversifying its debt maturity.
(2) Loan Details
SMBC Syndicate Loan II (Term Loan 3)(5 year)

Lenders

Sumitomo Mitsui Banking Corporation;
Mizuho Bank, Ltd.; Aozora Bank, Ltd.;
Shinsei Bank, Limited; Resona Bank,Limited; The Kagawa Bank, Ltd.; ORIX Bank
Corporation
6,500,000,000 yen
Repayment of existing loan
August 1, 2014
July 31, 2019
4,062,500 yen of the principal will be repaid
on each Partial Principal Repayment Date; theremainder will be repaid in full on thePrincipal Repayment Date.
Same as the Interest Payment Date
3M JPY TIBOR + 0.80 % (p.a.)
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be October 31, 2014 andthe last payment date will be the same as thePrincipal Repayment Date)
Yes

Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Principal Repayment Date
Interest Rate
Interest Payment Date

Collateralized12. Interest Rate Swap
(1) Reason
To fix the interest payment amount and hedge against a rise in interest rates.
(2) Swap Details
Counterparty
Notional Principal

Shinsei Bank, Limited
6,500,000,000 yen (Amortized by 4,062,500
yen on each Interest Payment Date)
Interest Rate
Fixed Interest Rate: 1.07%
Floating Interest Rate: 3M JPY TIBOR + 0.80%
Contract Date
July 30, 2014
Commencement Date
August 1, 2014
Termination Date
July 31, 2019
Interest Payment Date
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be October 31, 2014 and thelast payment date will be the same as thePrincipal Repayment Date)(Note) The effect of the interest rate swap is to fix the interest rate of the above loan at
1.07%.
3. Existing Loan Details
GE Japan LoanLender
Outstanding Balance before Repayment
Outstanding Balance after Repayment
Loan Date
Repayment Date
Interest Rate

GE Japan Corporation
6,500,000,000 yen
None
November 30, 2010
August 1, 2014
3M JPY LIBOR + 2.30 % (p.a.) (the current
interest rate is 2.43%)
Yes

Collateralized
4. Earnings Outlook

While this refinancing significantly progresses Ichigo REIT’s growth strategy and willcontribute to forward earnings growth, it will have a minimal earnings impact on the current
fiscal period and there are thus no changes to the October 2014 period earnings forecast.
The decrease in interest costs from this refinancing is expected to increase Ichigo REIT’s
six-month fiscal period dividend by 43 yen on a going-forward basis. (This calculation assumes
the current total outstanding shares of 1,026,323 and the specific impact of this refinancing only.
Because other factors may impact the dividend, the actual dividend may vary.)2

Outstanding Loan Balance (as of August 1, 2014)(million yen)
Lenders

Balance

Sumitomo Mitsui Banking Corporation

13,149

Aozora Bank, Ltd.

7,526

Mizuho Trust & Banking Co., Ltd.

3,834

Mizuho Bank, Ltd.

3,082

Shinsei Bank, Limited

6,761

Resona Bank, Limited

5,510

Prudential Mortgage Asset Holdings 1 Japan LPS

3,514

Tokyo Star Bank, Limited

2,955

Shinsei Trust & Banking Co., Ltd. (Note 1)

2,796

The Kagawa Bank, Ltd.

1,858

MetLife inc.

1,742

ORIX Bank Corporation

1,452

Shinsei Trust & Banking Co., Ltd. (Note 2)

1,100
1,000
56,278The Bank of Fukuoka, Ltd.
Total(Note 1) Source of funds is Investment LPS managed by AXA Real Estate Investment
Managers Japan KK(Note 2) Source of funds is Ichigo Group Holdings as sponsor

Lender Distribution
As of April 30, 2014
Fukuoka Bank
Shinsei Trust *2
2%
2%
Kagawa Bank
2%
MetLife3%

Shinsei Trust *1
5%

As of August 1, 2014
Shinsei Trust *2
Fukuoka Bank
2%
2%
ORIX Bank
3%
MetLife3%

ORIX Bank
2%

KagawaBank3%

SMBC
21%

Shinsei Trust *1
5%

Tokyo Star Bank
5%

Tokyo Star Bank
5%

Prudential LPS
6%Resona Bank
8%
MizuhoBank3%
MizuhoTrust7%

SMBC23%Prudential LPS
6%

Aozora Bank
12%

Resona Bank
10%

GE JapanCorporation12%

Aozora Bank
13%
MizuhoTrust
7%

Shinsei Bank
Mizuho Bank
12%
6%

Shinsei Bank
10%

3

Average Interest Rate (as of August 1, 2014)
2.80%
Syndicated loans (Term Loans 1&2) fromSMBC and Mizuho Trust

2.62%

2.62%
2.60%
Merger(Nov 2011)

Syndicated loans from
Aozora Bank

2.40%

2.35%
2.34%

Comprehensive
Refinancing

2.23%
2.26%

2.20%

Nearly halved
cost of debt:
from 2.62% to 1.53%

2.00%

Sale of COI Shinbashi
Building (Apr 2014)1.80%

1.88%

1.80%

1.82% 1.81%

1 st Accretive Follow-On
Public Offering (June 2013)

1.60%

1.78%

GE Loan
Refinancing(Aug 2014)

1.78%
1.69%

2nd Accretive Follow-On
Public Offering (Nov 2013)

1.69%

1.53%
1.40%
Oct 2011

Apr 2012

Oct 2012

Apr 2013

Oct 2013

Apr 2014

Distribution of Loan Repayment Dates (as of August 1, 2014)(million yen)

20,000Extended Debt Maturity by 3 Yearsvia Refinancing GE Loan
10,15810,000

7,530
6,825

6,685
5,900

5,366

6,422

6,500

3,607
2,430
2,430

0
Oct 2014

Apr 2015

Oct 2015

Apr 2016Oct 2016

Apr 2017

4

Oct 2017

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Distribution of Fixed vs. Floating Interest Rate Loans (as of August 1, 2014)

Float
27%

Fixed73%

Website of Ichigo REIT: www.ichigo-reit.co.jp/english

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