September 20 , 2024
For Translation Purpose Only
For Immediate Release
Japan Prime Realty Investment Corporation
Yoshihiro Jozaki, Executive Officer(Securities Code: 8955)
Asset Management Company:
Tokyo Tatemono Realty Investment Management, Inc.
Yoshihiro Jozaki, President and CEO
Inquiries: Yoshinaga Nomura, General Manager of Financeand Administration Division, Director and CFO(TEL: +81-3-3516-1591)

Notice Concerning Acquisition and Sale of Properties (Conclusion of Contracts)(Acquisition of The Royal Park Canvas Nagoya and Sale of JPR Ueno East Bldg.)
Japan Prime Realty Investment Corporation (“JPR”) announced that Tokyo Tatemono Realty Investment Management,
Inc. (“TRIM”), the asset management company to which JPR entrusts the management of its assets, today decided toacquire a property and to sell a property, as described below. (hereinafter the acquisition of The Royal Park Canvas
Nagoya is the “Acquisition” and the sale of JPR Ueno East Bldg. is the “Sale” and the Acquisition and the Sale are the“Asset Replacement.”)
Details
Ⅰ. Purpose of the Asset Replacement and Overview of Transactions
1. Purpose of the Asset Replacement
JPR decided to acquire a hotel very close to Nagoya Station due to its potential for future growth on the back ofrecovery of inbound demand, and to also sell an old office building, as part of a growth strategy focusing on DPU
growth. Through the Asset Replacement, JPR will achieve improvement in portfolio quality and profitability, returna portion of the gain on sale to unitholders as distribution, and also raise the DPU over the medium and long termby internally reserving the remaining amount as a “reserve for reduction entry under special provisions for property
replacement” and then reversing this reserve each fiscal period.
JPR will continue striving for improvement in unitholder value through external growth and the acquisition ofcapital gain driven by strategic asset replacement, as well as internal growth driven by rent increases.
2. Acquisition of The Royal Park Canvas Nagoya (hereinafter “the Property for Acquisition”)
The Property for Acquisition is situated in the Meieki area in the heart of Nagoya, conveniently located a fiveminute walk from JR Nagoya Station and a three-minute walk from Nagoya Subway Station. Nagoya Station is thelargest terminal station in the Chubu region. The surrounding area of the Property for Acquisition is not only abusiness hub that houses many company headquarters and branches but also a commercial hub lined with department
stores and many commercial facilities. In addition, Nagoya serves as a hub for many tourist destinations in the
Hokuriku Region such as Gifu, Toyama and Kanazawa and, because of the convenience of its location, Nagoya isable to capture not only business demand but also tourism demand, including inbound tourism.
The Property for Acquisition is a premium accommodation-oriented hotel opened in 2013. It has 153 guestrooms
and since the guestrooms are spacious with an average area of approximately 19 m 2 and 96 rooms are double/twinor larger rooms, it meets accommodation demand not only for business use but also for tourism including inboundtourism. The Property for Acquisition offers excellent convenience, for example, situated at the exit of Uni Mall, an
underground mall which connects to Nagoya Station, and the first floor of the hotel houses a convenience store.
Mitsubishi Estate Hotels & Resorts Co., Ltd., which is the hotel operator, has experience of operating hotels for1more than 35 years and currently operates 24 hotels of full-service-type hotels and premium accommodationoriented hotels, “THE” series, across the nation. The “Canvas” brand to which the Property for Acquisition belongs
is a brand line of this “THE” series and prides itself on the hotel’s high-quality feel and high service quality thatstem from knowhow gained from the operation of full-service hotels for many years.

23. Sale of JPR Ueno East Bldg. (hereinafter “the Property for Sale”)
The Property for Sale has made a stable revenue contribution as part of JPR’s portfolio but will struggle tomaintain profitability and competitiveness in the future due to its age. On the other hand, given that there is aconsiderable unrealized gain on the Property for Sale, JPR judged that realization of the unrealized gain through theSale and return of the gain on sale to unitholders over the medium and long term would be in the interests ofunitholders.
JPR plans to internally reserve 2,502 million yen of the 2,887 million yen gain on sale of the Property for Sale asa “reserve for reduction entry under special provisions for property replacement” (Article 2, Paragraph 2, Item 28 of
the Regulations on Accounting of Investment Corporations) by utilizing the “special provisions for taxation in casesof replacement of specified assets” (Article 65-7 of the Act on Special Measures Concerning Taxation). The reserve
for reduction entry under special provisions for property replacement will be reversed according to the depreciationof replaced assets and returned to unitholders as distributions each fiscal period and this is expected to help raise
distributions per unit (DPU).
Ⅱ. Overview of the Acquisition(i)

Property Name

The Royal Park Canvas Nagoya(ii)

Asset Type

Beneficiary interest in real estate(iii)

Asset Class

Hotel

(iv)

Acquisition Price

6,500 million yen(v)

Appraisal Value

6,780 million yen(vi)

NOI Yield

4.1％(vii) NOI Yield after Depreciation

3.6％(viii) Contract Date

September 20, 2024

(ix)

Planned Acquisition Date

October 9, 2024(x)

SellerDomestic specific purpose company(xi)

Financing for Acquisition

Loans and own funds3

(xii) Settlement Method

Lump-sum payment at the time of delivery(xiii) Brokerage

None(Note 1) “Acquisition Price” excludes acquisition costs, property taxes, city planning taxes and consumption taxes.
(Note 2) “NOI Yield” is NOI divided by the acquisition price and is rounded to the first decimal place. “NOI” is net operating
income stated in the real estate appraisal report.
(Note 3) “NOI Yield after Depreciation” is NOI after depreciation divided by the acquisition price and is rounded to the firstdecimal place. “NOI after Depreciation” is NOI less forecast depreciation.
(Note 4) Details of the loans, which form part of the financing will be notified at a later date once determined.

Ⅲ. Overview of the Sale(i)

Property NameJPR Ueno East Bldg.

(ii)

Asset TypeReal estate(iii)

Asset Class

Office(iv)

Sale Price

6,150 million yen(v)

Appraisal Value

5,870 million yen(vi)Planned Book Value

2,849 million yen(vii) Planned Gain on Sale

2,887 million yen(viii) Contract Date

September 20, 2024

(ix)

Planned Sale Date

January 10, 2025

(x)

Buyer

Domestic specific purpose company(xi)

Settlement Method

Lump-sum payment at the time of delivery(xii) Brokerage

None(Note 1) All amounts less than one million yen have been rounded down.
(Note 2) As of the date of this document, this property has not been changed to the trust beneficial right, but the Investment
Corporation plans to execute with the trustee a trust agreement for real estate management and disposal of this property as
the primary trust asset as of the date of delivery date, in order to transfer the trust beneficiary right to the transferee basedon the said trust agreement for real estate management and disposal. The same will apply hereinafter.
(Note 3) “Sale Price” excludes property taxes, city planning taxes, and consumption taxes.
(Note 4) “Planned Book Value” indicates the assumed book value as of the planned sale date.
(Note 5) “Planned Gain on Sale” indicates the amount obtained by subtracting the planned book value and estimated sale expenses
from the Sale Price.

Ⅳ. Details of the Property (The Royal Park Canvas Nagoya)
1. Details of Property for Acquisition
Property Name

The Royal Park Canvas Nagoya

Location

3-23-13, Meieki, Nakamura-ku, Nagoya-shi

Asset Type

Beneficiary interest in real estate

Trustee

Sumitomo Mitsui Trust Bank, Limited

Trust Period

November 30, 2023 to November 30, 2033

Asset Class

Hotel and parking

Type of Structure

Reinforced concrete flat-roofed 12-story structure

Type of OwnershipLand: Ownership
Building: Ownership4Site Area

Land
: Total Site Area
Building: Gross Floor Area

666.37 m2
5,226.80 m2

Completion Date

October 2013

Probable Maximum Loss
(PML)

4.4％ (Sompo Risk Management Inc.)

Acquisition Price

6,500 million yen

Appraisal Value(Appraisal Date)

6,780 million yen (As of August 1, 2024)

Appraiser

Japan Real Estate InstituteCollateral

None

Property Management
Company

Best Property Co., Ltd.

Status of Leasing (including hotel)
Number of Tenants
Rent Revenue, Common
Charges (Annual)
Lease and Guarantee
Deposits3
Not disclosed
Not disclosed

Total Leasable Floor Space

5,185.05 m2

Total Leased Floor Space

5,185.05 m2

Occupancy Rate

100％

Hotel Contract and Operation Status
Hotel Lessee

Mitsubishi Estate Co., Ltd.

Hotel Operator

Mitsubishi Estate Hotels & Resorts Co., Ltd

Type of Rent

Fixed rent: Not disclosed
Variable rent: A certain percentage of the excess when revenue from hotel
accommodation operations exceeds base amount

Leased Floor Space

4,965.65 m2

Remarks

None in particular(Note 1) All amounts less than one million yen have been rounded down, and all rates have been rounded to the first decimal place.
(Note 2) “Location” indicates the residential address.
(Note 3) The information on “Asset Class,” “Type of Structure,” “Site Area,” and “Completion Date” is as stated in the registry.
(Note 4) The figures on “Status of Leasing (including hotel)” and “Hotel Contract and Operation Status” are as of the time of
conclusion of relevant sales and purchase agreements.
(Note 5) “Rent Revenue, Common Charges (Annual)” and “Lease and Guarantee Deposits” are not disclosed because approval fordisclosure is not acquired from the tenant. In addition, the types of rent are partially not disclosed as the consent of thetenants has not been obtained.
(Note 6) “Total Leasable Floor Space” and “Total Leased Floor Space” are the sum total of the agreed areas (excluding parking
facilities) based on building lease agreements with the hotel lessee and store lessee.

2. Overview of Appraisal Report
Property Name

The Royal Park Canvas Nagoya

Appraisal Value

6,780 million yen

Real Estate Appraiser

Japan Real Estate Institute

Appraisal Date

August 1, 2024

5

Types of Value

Fair Value

Item
Appraisal Value by
Capitalization Method
Appraisal Value by
Direct Capitalization Method
Operating Revenue

Potential Gross Cash Flow

Loss from Vacancies

Operating Expenses
Maintenance Expenses andProperty Management Fee
Utilities Expenses
Repairs and MaintenanceAmount(thousand yen)

General Outline

6,780,000

Price is adjusted by the direct capitalization method and the
DCF method.

6,860,000

Appraised by capitalizing net cash flow using the capitalization
rate.

321,920

Calculated by deducting loss from vacancies from potential
gross cash flow.

323,430

Estimated a revenue amount that could be received in a stablemanner in the medium and long term based on factors such as
the level of rent based on the current lease agreement, the levelof rent in the event of lease of the appraised property under a
new agreement, and the attributes of lessees occupying theappraised property.

1,510

A loss from vacancies, etc. is recorded based on expected stable
occupancy rates over the medium to long term. The occupancy
rates are assessed based on occupancy and demand for similar
properties, and past occupancy rates and expected trends forthis property.

54,680

Sum total of the following seven items

7,478

Assessed with reference to actual amounts of past fiscal years
and fees based on planned contract terms and conditions, andwith reference to maintenance and management expenses andfee rates of similar properties.

600

Assessed mainly based on actual amounts of past fiscal years.

3,350

Assessed based on actual amounts of past fiscal years as well as
future management and operation plans, the level of expensesof similar properties and engineering reports.

388

Recorded an average annual amount assessed based on theestimated length of tenancy.

42,484

Taxes and public dues were posted on the basis of materials
related to them.

Insurance Premium

370

Assessed taking into consideration factors such as estimatedpremiums and insurance rates for the appraised building andsimilar buildings.

Other Expenses

10

Neighborhood association membership fees are recognized asother expenses.

Tenant Solicitation Expenses
Tax and Public DuesNet Operating Income

267,240

Calculated as operating revenue minus operating expenses.

Profit through Managementof Temporary Deposits, etc.

1,299

Assessed as amount that reflects current agreement terms,
number of months of temporary deposit under new lease, andoccupancy status multiplied by investment yield (1.0%).

Capital Expenditure

8,034

Assessed based on factors such as building age and annual
average amount of renewal costs in the engineering report.

Net Cash Flow
Capitalization Rate
Appraisal Value through the
Discount Cash Flow (DCF) Method

260,505
3.8%

Calculated as net operating income adjusted for profit throughmanagement of temporary deposits and capital expenditure.
Assessed taking into consideration factors such as location,building and current agreement terms and conditions.

6,690,000

Discount Rate

3.6%

Appraised by comprehensively considering the individuality of
the appraised property while also referencing the investment
yields in transactions involving similar real properties.

Terminal Capitalization Rate

3.9%

Assessed by taking into consideration factors such as

6degradation of the building, uncertainty of rental market trends
and decline in liquidity.

Appraisal Value by Cost Method

6,790,000

Land Ratio

84.2%

Indicates the ratio to the total price of land and building bypercentage, rounded to the first decimal place.

Building Ratio

15.8%

Indicates the ratio to the total price of land and building bypercentage, rounded to the first decimal place.

Other Items Considered upon Appraisal

None in particular

Ⅴ. Details of the Property (JPR Ueno East Bldg.)
1. Details of Property for Sale
Property NameJPR Ueno East Bldg.

Location

1-3-5, Matsugaya, Taito-ku, Tokyo

Asset TypeReal Estate

Asset Class

Office, retail and parking

Type of Structure
Type of Ownership
Site Area

Steel frame and steel framed reinforced concrete flat-roofed 8-story structurewith a 1-story basement
Land: Ownership
Building: OwnershipLand: Total Site Area
1,242.97 m2
Building: Gross Floor Area
8,490.44 m2

Completion Date

October 1992

Sale Price

6,150 million yen

Appraisal Value(Appraisal Date)

5,870 million yen (As of August 1, 2024)

Appraiser

Japan Real Estate InstituteStatus of Leasing
Number of Tenants
Rent Revenue, common
charges (Annual)
Lease and Guarantee
Deposits

10
332 million yen
277 million yen

Total Leasable Floor Space

6,454.89 m2

Total Leased Floor Space

6,454.89 m2

Occupancy Rate

100％

Remarks

None in particular(Note 1) All amounts less than one million yen have been rounded down, and all rates have been rounded to the first decimal place.
(Note 2) “Location” indicates the residential address.
(Note 3) The information on “Asset Class,” “Type of Structure,” “Site Area,” and “Completion Date” is as stated in the registry.
(Note 4) The information on “Status of Leasing” is as of the time of conclusion of relevant sales and purchase agreements.

2. Overview of Appraisal Report
Property NameJPR Ueno East Bldg.

Appraisal Value

5,870 million yen

7Real Estate Appraiser

Japan Real Estate Institute

Appraisal Date

August 1, 2024

Types of Value

Fair Value

Item
Appraisal Value by
Capitalization Method
Appraisal Value by
Direct Capitalization Method

Amount(thousand yen)

General Outline

5,870,000

Price is adjusted by the direct capitalization method and the
DCF method.

5,920,000

Appraised by capitalizing net cash flow using thecapitalization rate.

354,275

Calculated by deducting loss from vacancies from potential
gross cash flow.

373,441

Estimated a stable revenue amount, taking into account newrent levels and future trends estimated based on the current
contract terms and actual past figures, etc.

19,166

A loss from vacancies, etc. is recorded based on expected
stable occupancy rates over the medium to long term. The
occupancy rates are assessed based on occupancy and demand
for similar properties, and past occupancy rates and expected
trends for this property.

122,926

Sum total of the following seven items

Maintenance Expenses andProperty Management Fee

38,537

Assessed with reference primarily to actual amounts of pastfiscal years and rates based on agreement terms and conditions
and also with reference to the level of management expenses
and rates of similar properties.

Utilities Expenses

37,400Assumed based on the actual results, etc.

Repairs and Maintenance

11,363

Assessed based on actual amounts of past fiscal years as well
as future management and operation plans, the level of
expenses of similar properties and engineering reports.

Tenant Solicitation Expenses

2,583

Recorded an average annual amount assessed based on theestimated length of tenancy.

Tax and Public Dues

32,328

Taxes and public dues were posted on the basis of materials
related to them.

Insurance Premium

715

Assessed taking into consideration factors such as premiums
and premium rates of similar buildings.

Operating Revenue
Potential Gross Cash Flow

Loss from Vacancies

Operating Expenses

Other Expenses
Net Operating Income0

No other expenses existed.

231,349

Calculated as operating revenue minus operating expenses.

Profit through Managementof Temporary Deposits, etc.

2,992

Assessed as amount that reflects current agreement terms,
number of months of temporary deposit under new lease, andoccupancy status multiplied by investment yield (1.0%).

Capital Expenditure

27,310Assessed based on factors such as building age and annual
average amount of renewal costs in the engineering report.

207,031

Calculated as net operating income adjusted for profit throughmanagement of temporary deposits and capital expenditure.

Net Cash Flow
Capitalization Rate
Appraisal Value through the
Discount Cash Flow (DCF) Method

3.5%

Assessed taking into consideration factors such as location,building and current agreement terms and conditions.

5,820,000

Discount Rate

3.3%

Appraised by comprehensively considering the individualityof the appraised property while also referencing theinvestment yields in transactions involving similar real
properties.

Terminal Capitalization Rate

3.6%

Assessed by taking into consideration factors such as

8degradation of the building, uncertainty of rental market trends
and decline in liquidity.

Appraisal Value by Cost Method

4,860,000

Land Ratio

75.9%

Indicates the ratio to the total price of land and building bypercentage, rounded to the first decimal place.

Building Ratio

24.1%

Indicates the ratio to the total price of land and building bypercentage, rounded to the first decimal place.

Other Items Considered upon Appraisal

None in particular

Ⅵ. Overview of the Other Party in the Asset Replacement
The buyer and the seller are domestic specific purpose companies. JPR has not disclosed detailed information
about the buyer and the seller because it has not obtained their consent. Neither JPR nor TRIM has any capital,
personal, or business relations to be stated with the buyer or the seller. Neither the buyer nor the seller is a related
party of JPR or TRIM.
Ⅶ. Outlook
For details of the operating forecasts for the fiscal period ending June 30, 2025, which reflect the impact of theAsset Replacement, please refer to “Notice Concerning Revisions to Operating Forecasts for the Fiscal PeriodEnding June 30, 2025” released today.
Please note that the impact on the operating conditions for the fiscal period ending December 31, 2024, is minimal
and that there is no revision to the operating forecasts for the fiscal period ending December 31, 2024.

9

[Attachment][Reference] Real Estate Portfolio after the Asset Replacement
Area

Asset Class

OfficeCentral Tokyo

RetailOfficeGreater Tokyo

RetailOfficeOther Cities

RetailProperty
No.
A-1
A-2
A-3
A-4
A-6
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-20
A-21
A-22
A-23
A-24
A-25
A-26
A-27
A-28
A-29
A-30
A-1
A-3
A-4
A-5
A-6
A-7
B-1
B-2
B-3
B-5
B-6
B-8
B-9
B-10
B-11
B-12
B-13
B-14
B-15
B-1
B-3
B-4
B-5
B-6
B-7
C-1
C-9
C-12
C-13
C-14
C-17
C-19
C-20
C-21
C-22
C-23
C-24
C-25
C-4
C-5
C-6
C-7

Property Name
Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyocho Bldg.
Shin-Kojimachi Bldg.
MS Shibaura Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower (land with Leasehold Interest)
Science Plaza - Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.
Otemachi Financial City North Tower
Tokyo Tatemono Higashi-Shibuya Bldg.
Ochanomizu Sola CityJPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg. (Yurakucho Itocia)
JPR Ginza Namiki-dori Building
FUNDES Suidobashi
Arca East Bldg.
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Nakano Central Park East
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki DICE Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA (Umekita Plaza and South Building)
GRAND FRONT OSAKA (North Building)JPR Dojima West
Housing Design Center Kobe
JPR Chayamachi Bldg.
FUNDES Tenjin Nishi DoriThe Royal Park Canvas Nagoya
Total

Acquisition
Investment
Price
Investment
Ratio by(yen inRatio
Area
millions)
16,276
3.1％
2,874
0.5％
2,100
0.4％
2,420
0.5％
11,200
2.1％
5,100
1.0％
3,500
0.7％
14,966
2.8％
15,121
2.9％
710
0.1％
24,320
4.6％
3,760
0.7％
2,041
0.4％
2,800
0.5％
8,400
1.6％
5,100
1.0％
51.2％
15,050
2.8％
3,400
0.6％
36,000
6.8％
2,660
0.5％
4,213
0.8％
18,400
3.5％
5,750
1.1％
11,4002.2％
11,300
2.1％
6,490
1.2％
12,000
2.3％
4,275
0.8％
2,740
0.5％
3,400
0.6％
10,100
1.9％
3,250
0.6％
5,880
1.1％
2,350
0.4％
2,927
0.6％
1,490
0.3％
8,100
1.5％
3,188
0.6％
13,131
2.5％
6,510
1.2％
31,300
5.9％
7,000
1.3％
32.8％
6,090
1.2％
13,8702.6％
28,800
5.4％
10,200
1.9％
2,100
0.4％
7,254
1.4％
4,335
0.8％
15,080
2.9％
3,800
0.7％
2,140
0.4％
1,560
0.3％
3,150
0.6％
1,670
0.3％
2,810
0.5％
2,140
0.4％
4,137
0.8％
10,996
2.1％
5,430
1.0％
16.0％
3,750
0.7％
11,800
2.2％
9,500
1.8％
2,460
0.5％
7,220
1.4％
6,000
1.1％
3,310
0.6％
6,500
1.2％
529,094
100.0%(Note 1) “Acquisition Price” does not include acquisition costs.
(Note 2) “Acquisition Price” is rounded down to the nearest million yen and percentages are rounded to the first decimal place.

10