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.

November 28, 2018
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

New Loan and Interest Rate Swap
Ichigo Office decided today to borrow funds via a new loan (“Term Loan XV”) andenter into an interest rate swap to lock-in the interest rate on the loan.
1. Reason for New Loan and Interest Rate Swap
The new loan will be used to repay part of an existing loan of JPY 3.867 billion. Detailsof the loan being repaid are in Section 3 below. The remainder of that existing loan will
be repaid from the bond issuance announced on November 22, 2018.
The term of the new loan is 7.8 years, longer than the loan being repaid, further
strengthening Ichigo Office’s finances. Ichigo Office is fixing the interest rate on thenew loan via a swap in order to hedge against any future rise in interest rates.
2. Loan and Interest Rate Swap Details
Term Loan XV
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1SMBC, Mizuho Bank, Shinsei Bank, Aozora Bank
JPY 2.866 billion
Repayment of existing loan
(SMBC Syndicate Loan II (Term Loan 2))
November 30, 2018
September 30, 2026
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.68% (p.a.)1
Final day of each month following the Loan Date(the first payment date will be December 28, 2018
and the last payment date will be the same as thePrincipal Repayment Date)No

The swap will fix the interest rate for Term Loan XV at 0.975%.

1

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
November 28, 20180.975%

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.
3. Existing Loan Being Repaid
SMBC Syndicate Loan II (Term Loan 2)
LenderLoan Amount

SMBC, Mizuho Bank, Shinsei Bank, Aozora Bank
JPY 3.867 billion(original loan amount: JPY 4 billion)
Use of Proceeds
Asset acquisition and related costs
Loan Date
December 10, 2013
Principal Repayment Date
November 30, 2018
Principal Repayment Terms
JPY 5 million of the principal will be repaid on
each Partial Principal Repayment Date;the remainder will be repaid in full on the Principal
Repayment Date.
Partial Principal Repayment Date Final day of January, April, July, and Octoberfollowing the Loan Date
Interest Rate
3M JPY TIBOR + 0.95% (p.a.)CollateralizedNo
4. Earnings Outlook
The impact of the new loan and interest rate swap on Ichigo Office’s April 2019 fiscal
period earnings has already been reflected in Ichigo Office’s June 14, 2018 release “April
2018 Fiscal Period Earnings.”
5. OtherRisks related to the loan have no material impact on the “Investment Risks” described in
the latest Financial Report submitted July 26, 2018.

2

Reference: Loan and Bond Composition after New Loan
Outstanding Loan and Bond Balance(JPY million)
BeforeNew Loan(A)

After
New Loan(B)Change(B) - (A)Short-term bank loans–––Long-term bank loans(due within one year)

16,743

12,875-3,867Long-term bank loans

86,65789,523+2,866

Total bank loans

103,400

102,398-1,001

3,200

3,200

–

106,600

105,598-1,001Other interest-bearing liabilities–––

Total interest-bearing liabilities

106,600

105,598-1,001

Bonds
Total bank loans and bonds

Note: Includes JPY 1 billion in proceeds from the bond issuance announced on
November 22.

3

Distribution of Loan and Bond Maturities
Before New Loan
■ Bank Loans (Floating Rate)
10,233
9,574■ Bank Loans (Fixed Rate)
9,639

9,629

9,633

■ Bonds(JPY million)

9,623

8,814
7,2636,867

6,554

6,346

1,000
3,867

4,600

7,859
6,370

2,380
2,000

3,000

Apr
2019

4,954

892

955

Oct2019

Apr
2020

900

Oct
2020

Apr2021

Oct
2021

Apr2022

Oct2022

Apr2023

Oct
2023

Apr
2024

1,200

1,000

Oct
2027

Apr
2028

600

Oct
2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr
2027

After New Loan
■ Bank Loans (Floating Rate)
10,233
9,574■ Bank Loans (Fixed Rate)
9,639

9,629

9,633

■ New Loan

■ Bonds(JPY million)

9,623

8,814
7,263
6,554

6,346

1,000
4,600

7,859
3,000

6,370
2,3804,954

2,866

2,000

Apr
2019

892

955

Oct
2019

Apr
2020

900

Oct
2020

Apr
2021

Oct
2021

Apr
2022

Oct
2022

Apr
2023

Oct
2023

4

Apr
2024

1,200

1,000

Oct
2027

Apr
2028

600

Oct
2024

Apr
2025

Oct
2025

Apr
2026

Oct
2026

Apr
2027