<For translation purposes only>
June 9, 2011
For Immediate Release

REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Shuichiro Takahashi, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Shuichiro Takahashi, President & Representative
Director
Contact:
Kiyoyuki Takahashi
General Manager, Corporate Planning Dept.
Email: hankyureit-ir@hankyu-rt.jp

Notice Concerning Conclusion of Agreement on Acquisition of Assets (Investment Interest in Anonymous Association)
Hankyu REIT, Inc. (hereinafter “Hankyu REIT”) announces it has today decided to conclude an “Agreement
Concerning Investments in an Anonymous Association” (hereinafter “the Agreement”) with a limited liability company thatplans to be the business operator with respect to the investment interest in an anonymous association detailed below.
Going forward, based on the Agreement, Hankyu REIT shall continue discussions with the aforesaid limited liabilitycompany regarding the contents of an anonymous association contract, and provided that the preconditions set forth in
the Agreement are satisfied, Hankyu REIT plans to conclude an anonymous association contract with the aforesaid
limited liability company and acquire investment interest in an anonymous association. The matters currently underdiscussion and other undecided matters will be announced when the details have been decided.

Details
1. Overview of Acquisition(1) Asset to be acquired:

Investment interest in anonymous association with real estate trust beneficiaryinterests as portfolio properties(2) Property name:

Bay Leaf Funding GK (hereinafter “the Limited Liability Company”)
Investment interest in anonymous association (hereinafter “the Investment Interestin Anonymous Association”)(3) Real estate under trust:

AEON MALL SakaiKitahanada prou (site)(4) Proposed acquisition price:

Proposed investment amount: 372 million yen(Investment interest in anonymous association: 10%)(5) Proposed acquisition date:June 30, 2011

(6) Acquisition funds:

Corporate funds

12. Reason for Acquisition
Based on policies and properties under management as stipulated in our articles of incorporation, we are acquiring
an investment interest in an anonymous association to obtain steady growth with a focus on an overall balanced
portfolio. In the case that we are able to carry out the acquisition of an investment interest in an anonymousassociation, Hankyu REIT will receive dividends on profits funded by lease income and others from the landleaseholder. In addition, based on the Agreement, it is understood that, in accordance with the acquisition of theinvestment interest in an anonymous association, Hankyu REIT and the Limited Liability Company will havediscussions in good faith regarding the granting of priority negotiation rights to Hankyu REIT for acquisition of the realestate trust beneficiary interests which are portfolio properties in the investment interest in the anonymousassociation (hereinafter “the Trust Beneficiary Interests”), or the sites which are the real estate under the trust of theReal Estate Trust Beneficiary Interests.
On the conclusion of the Agreement, the following points were evaluated regarding the AEON MALL
SakaiKitahanada prou site (hereinafter “the Property”), which is the real estate under the trust of the Real Estate
Trust Beneficiary Interests.

(1) Location Conditions
The Property is the site of a large-scale community-based retail facility located adjacent to Kitahanada Station on
the Subway Midosuji Line. The rate of increase in the number of passengers using Kitahanada Station
significantly exceeds the rates of increase at other nearby stations on the Subway Midosuji Line. In the past 10years, the number of passengers using the station has increased by 1.5 times, to an average of 23,573
passengers per day. In addition, the eastern side of the site touches a principal local road, the Osaka-Takaishi
Route (Osaka Prefectural Road Route 28), the southern side of the site touches the Obori-Sakai Route (Osaka
Prefectural Road Route 187), and on the southeastern side, these routes cross at the Kitahanada intersection,
making the site an important hub for road traffic. As well as its convenience for access by road, another strengthof the retail facility on the Property is its ability to attract customers due to the ease with which it can be accessedby multiple means of transport, including rail and bus.
The population volume in the market area of the Property is abundant. By distance, the population in the 3km
area around the Property is 330,000, and 860,000 in the 5km area. Furthermore, in terms of population per
square meter of retail floor area, the population in the 3km area is 1.16 people, while the population in the 5km
area is 1.15 people, comfortably exceeding both the whole country’s average figure of 0.85 people per square
meter and Osaka prefecture’s average figure of 1.03 people per square meter. In the same 5km area, there is nocompeting facility to beat the retail facility on the Property in terms of features such as size or the ability to attract
customers, and as a result, we judge it to be highly competitive.
(2) Property Characteristics
With large supermarkets and the Hankyu Department Store at its core, the retail facility on the Property is alarge-scale shopping mall with about 160 specialty retail stores in areas such as fashion, household goods, andeating and drinking establishments. These stores account for about 56,500 square meters of the retail facility’s
floor space, and there is parking garage space for about 2,800 vehicles. The retail facility opened in October
2004, and a renewal of the specialty shops was carried out between October and November 2010 inconsideration of meeting the requirements of different types of clientele and changes in the competitiveenvironment. As a sophisticated retail facility, it boasts a considerable ability to attract customers.

23. Details of the Proposed Acquisition of Asset(1) Overview of the targeted anonymous association to be invested
Yet to be decided(2) Overview of the Trust Beneficiary Interests and targeted real estate
Property name:AEON MALL SakaiKitahanada prou (site)

Specific asset type

Trust beneficiary interests

TrusteeYet to be decided

Trust period

Yet to be decided

Appraisal value

8,490 million yen (value as of June 1, 2011)(Appraisal organization: Rich Appraisal Institute co.,ltd.)

Location

4-1-32, Higashiasakayama-Cho, Kita-ku, Sakai and other

Lot number
Building
coverage
Floor area ratio

Month/Year

80% / 60%

Built

300% / 200%-

Structure/Floors

-

Use-

Total floor area-

Neighborhood commercial
Land

Zone use

district, Category 1
medium-to-high-rise exclusive

Building

residential districts
Lot area
Form ofownership
Property manager
PML of earthquake risk

64,232.77 m²

Form ofRight of ownershipownership-

Yet to be decided-

analysis
CollateralYes (proposed) (Note 1)

Overview of leasing
Total number oftenants (lessee of the2land)
Tenant (lessee of theThe Sumitomo Trust and Banking Co., Ltd. and AEON MALL Co., Ltd.

land)
Annual rent
Leasable area- (Note 2)
64,232.77 m² (Note 3)

capacity
Actual rented area

64,232.77 m² (Note 3)

Occupancy rate

100% (Note 4)

Security deposits- (Note 2)

Note 1: For the Real Estate Trust Beneficiary Interests, a pledge will be established setting the Limited Liability
Company as the pledgor and a non-recourse loan lender as the pledgee.

3Note 2: At the request of tenant (lessee of the land), information is not permitted to be disclosed.
Note 3: Figures represent areas noted in the existing registry.
Note 4: The ratio of actual rented area to leasable area capacity.
(3) Overview of the operator of the anonymous association who is proposed to be invested (As of June 9, 2011)
Trade name

Bay Leaf Funding GK

Location of headquarters

Tokyo Kyodo Accounting Office, 3-1-1 Marunouchi, Chiyoda-ku, Tokyo
Representative company: NFB48 Commerce Promotion Organization GIA

Representative

Executor of duties: Masakazu Hongo

Capital

100 thousand yen

Date of establishment

March 10, 2011
Bay Leaf Funding GK is a special purpose company in which the general

Major shareholder andincorporated association, NFB48 Commerce Promotion Organization GIA, hasshareholding ratio

made investments (100%) and Hankyu Corporation and others have invested forthe part of anonymous associations.
1. Acquisition, ownership, disposal, lease and management of real estate

Main business activities

2. Acquisition, ownership, and disposal of trust beneficiary interests of real estate
3. Operations related to or of ancillary relationship to, the above operations
Hankyu Corporation, shareholder (100% holding) of asset management company,
Hankyu REIT Asset Management, Inc., is an interested party as defined by the Act
on Investment Trusts and Investment Corporations (hereinafter “Investment TrustsAct”). Although it comprises a part of anonymous associations investing in theoperator, the operator does not fall under the definition of “interested party, etc.” inthe Investment Trusts Act. Also, because an investment of more than 50% is not

Relation to Hankyu REIT or
asset managementcompanyplanned, the operator does not qualify as an interested party as defined by theasset management company’s rules concerning transactions involving conflicts ofinterest.
However, because involvement of interested parties as defined by the Investment
Trusts Act is proposed by the operator, a report detailing all opinions including
minority opinions has been deliberated at the compliance committee in thecapacity of advisory organization in accordance with the asset managementcompany’s compliance committee regulations, and submitted to the asset
management company’s President & Representative Director and board ofdirectors.

4. Overview of Intermediaries
None

5. Acquisition Process
June 9, 2011June 10, 2011
June 23, 2011
June 29, 2011
June 30, 2011

Resolution approving conclusion of “Agreement Concerning Investments in anAnonymous Association” by the asset management company’s board of directors’
meeting
Proposed conclusion of “Agreement Concerning Investments in an AnonymousAssociation”
Proposed resolution of conclusion of anonymous association contract by the asset
management company’s board of directors’ meeting
Proposed conclusion of anonymous association contract
Proposed acquisition of the investment interest in anonymous association

46. Future Outlook
There is no influence from the investment interest in anonymous association that affects the conditions
surrounding the management of Hankyu REIT’s assets during the 12th fiscal period ended May 31, 2011.
Forecasts on the management of Hankyu REIT’s assets for the 13th fiscal period ended November 30, 2011
will be released with the Financial Results of the 12th fiscal period ending May 31, 2011.

The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (KabutoClub), Osaka Securities Exchange, Ministry of Land, Infrastructure, Transport and Tourism, and to the pressclub of the construction trade newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.
Hankyu REIT website: http://www.hankyu-reit.jp/<Attached Materials>
Reference Material 1

Overview of Appraisal Report

Reference Material 2

Table of Real Estate Portfolio After the Acquisition of the Investment Interest in
Anonymous Association

Reference Material 3

Photograph of External Facade, Map of Location and Surrounding Area

5

Reference Material 1
Overview of Appraisal Report
PROPERTY
NAME
Appraised
Value
Appraisal
Organization
Date ofAppraisal

AEON MALL SakaiKitahanada prou (Site)

8,490,000,000 yen
Rich Appraisal Institute co.,ltd.
June 1, 2011

ItemEarned Price*
Earned Price from Discounted-Cash-Flow(DCF) method
Discount rate per period
Terminal capitalization rateSpecial
items toconsider at
the time ofmaking
adjustments
to provisional
calculations
and deciding
the appraisal
price/value

Value
8,490,000,000 yen
8,490,000,000 yen-

Basis for Valuation

5.0%
5.0%

--

The targeted real estate is located adjacent to prefectural road routes close to the border with
Osaka City inside the northern edge of Kita-ku, Sakai. This area is a favorable commercial zone
intersected by major transportation routes in a superb location both in terms of commercial area
population and accessibility. Also the targeted real estate is comprised of a large-scale retail facility
for which a fifty-year contract has been executed for the establishment of general fixed-termleased-land rights, and a parking area that is used for the aforesaid facility. The profitability of theproperty is therefore deemed safe and secure.
The discount rate, etc. using the DCF method was calculated based on consideration of the current
standard land prices and the remaining term of the lease. The appraised value of the property wasdecided by the appraisal organization, who treated the value as the earned price obtained by theDCF method. The appraisal decision was based on similar cases with leased-land ownership andconsiderations were given to the process by which the earned price was formulated, placingemphasis on profitability of the market participants.

*The appraised value of real estate is an indication of the opinion of the value by the appraiser of the real estate inquestion and is conducted by an appraisal in accordance with the law and standards related to real estateappraisals at the time of the appraisal. There may be cases where an appraisal of the exact real estate isconducted again, and because of factors such as timing of the appraisal and the appraisal method used by theappraiser, a different value may result. Furthermore, the appraised valuation of real estate is neither a guarantee
nor an obligation, now or into the future, of a sale or purchase of the real estate.

6Reference Material 2

Table of Real Estate Portfolio after the Acquisition of the Investment Interest in Anonymous Association
BuildingNo.
(Note 1)

Property Name

Facility(Type of Use)

Area

Acquisition Date

Acquisition
Price(in millions)

Investment
Ratio

R1 (K)HEP Five

RetailKansai

February 1, 2005

20,79017.1%

R2 (K)

Kitano Hankyu Building

RetailKansai

February 1, 2005

7,740

6.4%

R3 (K)Dew Hankyu Yamada

RetailKansai

February 1, 2005

6,930

5.7%

R4 (K)

Takatsuki-Josai
Shopping Center

RetailKansai

November 15, 2005

8,600

7.1%

R5 (K)

Nitori Ibaraki-Kita Store(site)

RetailKansai

March 29, 2006

1,318

1.1%

Kohnan Hiroshima
Nakano-Higashi Store(site)

2,170

Retail

Other
areas

October 2, 2006

R6

NU chayamachi

RetailKansai

March 15, 2007

19,30015.9%

Hotel Gracery Tamachi

Retail

Other
areas

December 25, 2008

4,160

3.4%

R9 (K)

LaLaport KOSHIEN(site)

RetailKansaiJanuary 22, 2009

7,350

6.1%

R10

Richmond HotelHamamatsu

Retail

Other
areas

January 22, 2009

2,100

1.7%

80,46366.3%

19,025

15.7%

19,02515.7%

R7 (K)
R8

1.8%
April 9, 2007

Subtotal
01

Shiodome Eastside
BuildingOffice

Other
areas

February 29, 2008

Subtotal

5

Ueroku F Building

ComplexfacilityKansai

November 1, 2005

2,980

2.5%

Sphere Tower Tennoz

Complexfacility

Otherareas

October 2, 2007

9,405

7.8%

M3 (K)LAXA Osaka

Complexfacility

KansaiJanuary 22, 2009

5,122

4.2%

M4 (K)

Namba-Hanshin
Building

Complexfacility

KansaiJanuary 22, 2009

4,310

3.6%

Subtotal

21,817

18.0%

Total

121,306

100.0%

M1 (K)
M2

Note 1: Numbers represent the classification for properties owned by Hankyu REIT by each region and type of use.
Letters represent retail (“R”), office (“O”) and complex facility (“M”).
Numbers represent the chronological order of the acquisition of each facility. Also, the letter “K” in parentheses
to the right of these numbers indicates that the property is located in the Kansai region.
Note 2: In addition to the assets shown above, we plan to acquire an investment interest in an anonymous association
issued by Bay Leaf Funding GK on June 30, 2011.

7

Reference Material 3

Photograph of External Facade

Map of Location and Surrounding Area8