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.

September 28, 2012
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

Sale of Portfolio Asset
Ichigo Real Estate Investment Corporation (“Ichigo REIT”) decided to sell the following
portfolio asset today per the below.
1. Sale Summary
O-45 COI Niigata Building
Asset
Acquisition Date(acquisition date by pre-merger IchigoREIT)
Sale PriceBook Value
Difference between Sale Price andBook ValueContract Date
Settlement Date (expected)
Settlement Method

Real estate
November 1, 2011
(February 1, 2008)
630,000,000 yen (excluding Fixed Asset Tax, City

Planning Tax, Consumption Tax, etc.)
1,811,020,155 yen (estimated as of August 31, 2012)-1,181,020,155 yen
September 28, 2012
November 15, 2012
Transfer of real estate

2. Reason for the Sale
Following its merger in November 2011, Ichigo REIT has defined the period until October 2012as a period for aiming to “Lay the Foundation for Growth” by improving portfolio quality via
the strategic use of negative goodwill. This asset sale is part of this strategy. The asset is 47 years
old and is a building which does not comply with new earthquake-resistance standards. After theGreat East Japan Earthquake in 2011, there is a necessity for earthquake-resistance reinforcement
construction in accordance with tenants’ BCP (Business Contingency Plan) needs. However, thebuilding requires significant reinforcement as well as considerable expense for tenants to temporarily
vacate the premises, which would not be cost-effective. Therefore, Ichigo REIT has decided to sell
the asset.

Since most of the potential buyers accounted for the reinforcement construction expense in thesale price, the highest bid for the asset was 630 million yen. The asset sale will thus generate an
impairment loss of c. 1,188 million yen. However, Ichigo REIT expects to offset this loss withnegative goodwill, and the sale does not have a negative impact on the dividend forecast for the
fiscal period ending October 2012.
Since the November 2011 merger, Ichigo REIT has focused on increasing portfolio quality via
asset improvement and replacement. As a result, after today’s sale, Ichigo REIT has no otherportfolio assets where asset value is at significant risk.
3. Use of Funds
The funds obtained through the sale will be used for future strategic growth.
4. Summary of Property
O-45 COI Niigata Building
AssetLocation (Note 1)
Property RightSize
Land (Note 1)
ZoningCoverage Ratio /Floor Area Ratio
Property Right
Use (Note2)
Building
Structure(Note 1)
Total Floor Area(Note 3)
Construction Date
Number of Tenants
Monthly Rent (Note 4)
Deposit (Note 4)
Leasable Space
Leased SpaceReal estateA) 1-4-2, Higashi-Odori, Chuoku, Niigata
B) 1-10-1, Higashi-Odori, Chuoku, Niigata
A) Ownership (fee simple)A) 1,089.58 m2 B) 1,718.38 m2
A) CommercialA) 80% / B) 600%
A) Ownership (fee simple)
A) OfficeA) SRC B2F/12F B) S 1FA) 9,571.05 m2 B) 1,327.90 m2

A) June 7, 1965 B) September 29, 1993
20 (as of August 31, 2012)
11,284 thousand yen (as of August 31, 2012)
64,365 thousand yen (as of August 31, 2012)
6,368.60 m2 (as of August 31, 2012)
2,988.59 m2 (as of August 31, 2012)
April 30, 2012 August 31, 2012 March 31, 2013
Occupancy (Note 5)
79.0 %
46.9 %
27.9 % (expected)
Acquisition Price
1,830 million yen
Appraiser
DAIWA REAL ESTATE APPRAISAL CO., LTD.
Appraisal
Date
September 10, 2012
Value
1,050 million yen(Note 1) COI Niigata Building consists of A) office building and B) remote parking.
(Note 2) B) Remote parking is a simple steel structure with self-parking without a wall, and is
not registered as a building. On the registry, only the control room is registered, which
is located on the first floor of parking. (Use: Office, Structure: Lightweight SteelConstruction with One-Story Galvanized Steel Plate)(Note 3) Total Floor Area of B) remote parking is as written in the inspection certificate.
Furthermore, Total Area of remote parking includes the control room (19.44 m2).
(Note 4) Monthly Rent and Deposit include rental income and common area fees as specified in
the individual lease contracts.
(Note 5) Occupancy as of March 31, 2013 is an expected occupancy which reflects contract
termination notices received as of today, and does not include any new lease contracts.
2

5. Buyer Profile
The buyer is a Japanese general operating company and has not provided consent for thedisclosure of its name. The buyer is not a “related party” as defined in the Enforcement
Ordinance of the Investment Trust and Investment Corporation Law and the internal rules ofIchigo Real Estate Investment Advisors Co., Ltd. (“IRE”), the asset manager of Ichigo REIT.
6. Broker Profile(1) Summary
Name

Ichigo Estate Co., Ltd. (“IES”)
The Imperial Hotel Tower,
Address
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative
Takuma Hasegawa, President & Representative Director
Capital500 million yen
Real Estate Solution Business of Small-Sized Assets andPrincipal Businesses
Grand Leases
IES is a 100% subsidiary of Ichigo Group Holdings Co.,
Relationship with Ichigo REIT
Ltd., the parent company of IRE. In addition, IES has inor Asset Management Company
place an agreement to support both Ichigo REIT and IRE.
(Note) The broker is a “related party” as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law and the internal rules of IRE. Therefore,
the sale procedure followed the internal rules of the asset management company.
(2) Brokerage Fee
12,600,000 yen
7. Future Outlook
Regarding the impact the asset sale has on the earnings forecast for the fiscal period endingOctober 2012 (May 1, 2012 – October 31, 2012) and the fiscal period ending April 2013
(November 1, 2012 – April 30, 2013), please refer to the “Revision of Earnings Forecast
and Dividend for the Fiscal Period Ending October 2012” release today.

3Portfolio Reference Information
1. Post-Sale Portfolio Summary
Before Sale (A)After Sale (B)Difference(B-A)

Occupancy
93.4%
95.3%
+1.9%
(as of August, 31 2012)
Average Building Age
21.2 years
20.8 years-0.5 years(as of November 15, 2012)
Diversification by Area (Note)(Tokyo Metropolitan Area/Other
73.9% / 26.1%
75.2% / 24.8%+1.3% / -1.3%
Areas) (as of November 15, 2012)(Note) “Tokyo Metropolitan Area” refers to “Central Tokyo” and “Tokyo Metropolitan Area.”“Other Areas” refers to “Four Major Regional Cities” and “Other Regional Cities.”
2. Post-Sale Portfolio Assets

Area

Acquisition% ofPrice
Portfolio(mm yen)

No.

Property

O-01

COI Shinbashi Building

Central Tokyo

6,110

5.86%

O-02

COI Nishisando Building

Central Tokyo

3,254

3.12%

O-03

MTC Building

Central Tokyo

2,740

2.63%

O-04

COI Nanpeidai Building

Central Tokyo

1,920

1.84%

O-05

Joware Hanzomon

Central Tokyo

1,550

1.49%

O-06

COI Hijirizaka Building

Central Tokyo

1,200

1.15%

O-07

COI Shibuya Kamiyamacho Building

Central Tokyo

1,505

1.44%

O-08

COI Akasaka 5 Chome Building

Central Tokyo

735

0.70%

O-09

COI Shibazonobashi Building

Central Tokyo

1,100

1.05%

O-10

COI Ebisu Nishi Building

Central Tokyo

1,917

1.84%

O-11

COI Ginza 612

Central Tokyo

1,773

1.70%

O-12

COI Uchikanda Building

Central Tokyo

1,140

1.09%

O-13

COI Kudan-Minami Building

Central Tokyo

387

0.37%

O-14

COI Yotsuya 4 Chome Building

Central Tokyo

550

0.53%

O-15

COI Akasaka Tameike Building

Central Tokyo

580

0.56%

O-16

DSM Jimbocho Building

Central Tokyo

1,820

1.74%

O-17

DSM Nihonbashi Kakigaracho Building Central Tokyo

1,150

1.10%

O-18

COI Kudan 2 Chome Building

Central Tokyo

763

0.73%

O-19

COI Kudan 3 Chome Building

Central Tokyo

844

0.81%

O-20

COI Gotanda Building

Central Tokyo

5,060

4.85%

O-21

Benex S-2

Tokyo Metropolitan Area

1,8161.74%

O-22

COI Minami-Ikebukuro Building

Tokyo Metropolitan Area

1,460

1.40%

O-23

Technos Nakano Building

Tokyo Metropolitan Area

764

0.73%

O-24

COI Eitai Building

Tokyo Metropolitan Area

1,490

1.43%

4O-25

COI Yokosuka Bayside Building

Tokyo Metropolitan Area

971

0.93%

O-26

Chitose Building

Tokyo Metropolitan Area

2,030

1.95%

O-27

Route Ikebukuro Building

Tokyo Metropolitan Area

639

0.61%

O-28

Nishi-Gotanda AccessCentral Tokyo

765

0.73%

O-29

TK Kichijoji Building

Tokyo Metropolitan Area

2,160

2.07%

O-30

Ibaraki Kowa Building

Other Regional Cities

604

0.58%

O-33

COI Mei-Eki Building

Four Major Regional Cities

837

0.80%

O-34

COI Nagoya Plaza Building

Four Major Regional Cities

4,705

4.51%

O-35

COI Sendai Chuo Building

Other Regional Cities

510

0.49%

O-37

CRD Marunouchi

Four Major Regional Cities

6,710

6.43%

O-38

Toyamaeki Nishi Building

Other Regional Cities

1,650

1.58%

O-39

Daihyaku Mirai-Shinkin Building

Other Regional Cities

1,100

1.05%

O-40

Kearney Place Saga

Other Regional Cities

659

0.63%

O-42

COI Takamatsu Building

Other Regional Cities

3,010

2.89%

O-44Akita Sanno 21 Building

Other Regional Cities

560

0.54%

O-46

M’s SQUARE

Central Tokyo

2,130

2.04%

70,668Subtotal - Office (40 Properties)
R-01

ForeCity Roppongi

Central Tokyo

1,730

67.74%
1.66%

R-02

ForeCity Azabujuban

Central Tokyo

1,140

1.09%

R-03

ForeCity Azabujuban No.2

Central Tokyo

1,250

1.20%

R-04

Bureau Takanawadai

Central Tokyo

1,360

1.30%

R-05

ForeCity Shirokanedai

Central Tokyo

824

0.79%

R-06

B-Site Hamamatsucho

Central Tokyo

701

0.67%

R-07

ForeCity Akihabara

Central Tokyo

2,520

2.42%

R-08

Sweet One Court

Central Tokyo7860.75%

R-09

B-site Ginza East

Central Tokyo

946

0.91%

R-10

ForeCity Sasazuka

Central Tokyo

1,050

1.01%

R-11

Gran Presso Kawadacho

Central Tokyo

592

0.57%

R-12

ForeCity Sakurashinmachi

Tokyo Metropolitan Area

932

0.89%

R-13

ForeCity Shinkamada

Tokyo Metropolitan Area

1,040

1.00%

R-14

ForeCity Nakaochiai

Central Tokyo

435

0.42%

R-15

ForeCity Tomigaya

Central Tokyo

1,341

1.29%

R-16

ForeCity Ryogoku

Tokyo Metropolitan Area

1,080

1.04%

R-17

ForeCity Toyosu

Tokyo Metropolitan Area

1,349

1.29%

R-18

ForeCity Nishihonmachi

Four Major Regional Cities

927

0.89%

Subtotal - Residence (18 Properties)

20,005Z-01

Falcon Shinsaibashi Building

Four Major Regional Cities

3,410

19.18%
3.27%

Z-02

Fiesta Shibuya

Central Tokyo

1,970

1.89%

Z-03

Burc Omori

Tokyo Metropolitan Area

3,218

3.08%

Z-04

Pagoda Asakusa

Tokyo Metropolitan Area

1,640

1.57%

5Z-05

Regalo Building

Tokyo Metropolitan Area

1,310

1.26%

Z-06

Lespoir 296

Tokyo Metropolitan Area

903

0.87%

Z-07

El Centro Sapporo

Four Major Regional Cities

558

0.53%

Z-08

Daimyo Balcony

Four Major Regional Cities

638

0.61%

Subtotal - Others (8 Properties)
Total

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

613,647 13.08%
104,320 100.00%