Creating peace of mind through honest and committed management.

July 28, 2015
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: Hiroto Tajitsu, Statutory Executive Officer, Head of Administration
Tel: 03-3502-4891

Real Estate Acquisition
Ichigo Real Estate Investment Advisors Co., Ltd. (IRE), the asset management company of
Ichigo Real Estate Investment Corporation (“Ichigo REIT”), has contracted to acquire TK(tokumei kumiai) equity interests in trust beneficiary interests in real estate, per the below.
I. Acquisition Summary
Legal Form of Assets
Asset Names

Underlying Real Estate

Investment Amounts(Expected)
Contract Date
Closing Date (Expected)
Financing Method
Settlement Method
1
2

TK equity interest in trust beneficiary interests in real estate(juekiken)(1) Motoazabu Holdings GK TK Equity Interest1(2) Ikenohata Holdings GK TK Equity Interest2(1) 7 assets: Vanguard Motoazabu Building, Dai 5 Akiyama
Building, Ningyocho Central Building, Otsuka Saint Core
Building, Osaka Nishi Honmachi Building, Dai 41 Ocean
Building, EME Nagoya Building(2) 6 assets: MG Ikenohata Building, Higashi Ikebukuro Q
Building, Sun Center Building, Sigma Hakata Building, HF
Fushimi Building, Nishiki First Building(1) 1,000,000,000 yen (net of acquisition costs)
6.92% ownership(2) 1,000,000,000 yen (net of acquisition costs)
6.69% ownership
July 28, 2015
July 29, 2015
Cash-on-handLump-sum payment

The TK Equity Interest is of a TK operated by Motoazabu Holdings GK.
The TK Equity Interest is of a TK operated by Ikenohata Holdings GK.

For details of the TK Operators, please see “TK Operator Profiles” in section III below.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiary interest in realestate by Ichigo Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to the Investment Corporation's
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

1II. Acquisition Rationale
In the current Stage IV Increase Size & Scale (November 2014 – October 2015) of its
multi-year growth strategy, Ichigo REIT is working to drive further dividend increases andgrowth in its portfolio of prime location mid-size offices, an asset class that offers both stabilityof returns and upside potential. Ichigo REIT is making steady progress in its growth strategy,
and received a long-term issuer rating of A- from Japan Credit Rating Agency (JCR) on June 30,
2015.
Today’s acquisition will contribute to Ichigo REIT’s next growth stage, Stage V Further
Increase Dividend and Solidify Market Position (November 2015 – October 2016). Ichigo REIT
will use cash-on-hand to acquire equity interests in high-quality mid-size offices to further drive
dividend increases for Ichigo REIT shareholders. Based on a TK structure backed by thesponsor support of Ichigo Group Holdings (“IGH”), rental income to Ichigo REIT is expected tototal 100 million yen per annum, increasing Ichigo REIT’s earnings per share by 35 yen (based
upon a 6-month fiscal period and today’s 1,416,323 shares outstanding). For the current October
2015 period, the earnings per share contribution from today’s acquisition is expected to be 11
yen on rental income of 16 million yen.
Ichigo REIT has also received a preferential negotiation right to acquire any or all of the trust
beneficiary interests or the underlying real estate in today’s transaction. This right provides anoption (but not an obligation) for Ichigo REIT to exercise at its discretion. For details, please see“Overview of Preferential Negotiation Right” in section III below.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

2III. Asset Summary
A. TK Overview
TK Operator
TK
Agreement
PeriodTotal TK
Investment
AmountMotoazabu Holdings GK1
Through July 31, 2022 (Expected)

14,450 million yen

Motoazabu Holdings GK

Primary TK Equity Interest
13,000 million yen3

Trust beneficiary interestin real estate (juekiken)
14,450 million yen2

Secondary TK Equity
Interest
1,000 million yen3

TK
Agreement
Details

Tertiary TK Equity Interest
450 million yen3
1

Ichigo Estate Co., Ltd. (“IES”) is the asset manager of Motoazabu
Holdings GK. IES is a related party of IRE, as defined in the Enforcement
Ordinance of the Investment Trust and Investment Corporation Law.
2
Includes acquisition costs, TK organization cost, and reserve. The
appraisal value as of July 1, 2015 is 14,440 million yen.
3
Ichigo REIT will invest 1,000 million yen (6.92%) in the TK Equity
Interest as the Secondary TK, and IGH will invest 13,000 (89.97%) million
yen as the Primary TK and 450 million yen (3.11%) as the Tertiary TK.
IGH is a related party of IRE, as defined in the Enforcement Ordinance of
the Investment Trust and Investment Corporation Law.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

3Calculation Period:
Quarterly (January-March; April-June; July-September;
October-December). However, the first calculation period runs
from the acquisition date of the TK Equity Interests until July-end
2015.
Distribution of Profit and Loss:(1) Based upon the below formulas, the TK Operator will
distribute the profit (including gains on sales), if any, to the TK
equity holders in the preference order of Primary TK,
Secondary TK, and Tertiary TK for each calculation period on
the last day of each calculation period:
Primary TK
Amount of investment as of the last day of each calculation
period × 1.2% × (actual number of days during the calculation
period/365)
Secondary TK
The lesser of the following will be distributed:
1) Amount of investment as of the last day of each calculation
period × 5% × (actual number of days during the calculation
period/365);2) 49% of the net income for the period
Tertiary TK
The remainder after the distributions to the Primary TK and
Secondary TK(2) If losses are generated in a calculation period (including losses
on sales), equity holders shall be distributed pro rata the losses
according to their investment ratios in each calculation period
within the amount of losses. In the case where the cumulativeloss exceeds the total equity contribution, the loss is limited tothe equity contribution.
Repayment of Capital:
The TK Operator will repay each equity holder the invested amountat the end of the TK agreement period. In the case where there are
cumulative losses, the remainder of the invested amount will be
repaid in the preference order of Primary TK, Secondary TK, thenTertiary TK.

Overview ofPreferential
Negotiation
Right

Description

Preferential negotiation right for acquisition of theUnderlying Real Estate

Exercise
Period ofPreferential
Right

From July 30, 2015 through July 31, 2016

Preferential
NegotiationPrice

If Ichigo REIT offers to acquire at the below Preferential
Price any or all of the trust beneficiary interests or theUnderlying Real Estate, the TK Operator shall beobligated to sell to Ichigo REIT, unless the Preferential
Price from Ichigo REIT is extraordinarily irrational
relative to market pricing at that time.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

4

Total: 14,370,000,000 yen (excludes consumption tax)
Underlying Real Estate and Preferential Prices
Vanguard Motoazabu Building 1,890,000,000 yen
Dai 5 Akiyama Building
1,350,000,000 yen
Ningyocho Central Building
1,450,000,000 yen
Otsuka Saint Core Building
2,740,000,000 yen
Osaka Nishi-Honmachi Building 2,190,000,000 yen
Dai 41 Ocean Building
1,330,000,000 yen
EME Nagoya Building
3,420,000,000 yen

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

5

TK Operator
TK
Agreement
PeriodTotal TK
Investment
AmountIkenohata Holdings GK1
Through July 31, 2022 (Expected)

14,950 million yen

Ikenohata Holdings GK

Primary TK Equity Interest
13,500 million yen3

Trust beneficiary interestin real estate (juekiken)
14,950 million yen2

TK
Agreement
Details

Secondary TK Equity
Interest
1,000 million yen3
Tertiary TK Equity Interest
450 million yen3
1

IES is the asset manager of Ikenohata Holdings GK. IES is a related party ofIRE, as defined in the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law.
2
Includes acquisition costs, TK organization cost, and reserve. The appraisal
value as of July 1, 2015 is 14,980 million yen.
3
Ichigo REIT will invest 1,000 million yen (6.69%) in the TK Equity Interestas the Secondary TK, and IGH will invest 13,500 (90.30%) million yen as thePrimary TK and 450 million yen (3.01%) as the Tertiary TK. IGH is a related
party of IRE, as defined in the Enforcement Ordinance of the Investment
Trust and Investment Corporation Law.
Calculation Period:
Quarterly (January-March; April-June; July-September;
October-December). However, the first calculation period runs fromthe acquisition date of the TK Equity Interests until July-end 2015.
Distribution of Profit and Loss:(1) Based upon the below formulas, the TK Operator will distributethe profit (including gains on sales), if any, to the TK equity
holders in the preference order of Primary TK, Secondary TK, andTertiary TK for each calculation period on the last day of eachcalculation period:

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

6Primary TK
Amount of investment as of the last day of each calculation period
× 1.2% × (actual number of days during the calculation
period/365)
Secondary TK
The lesser of the following will be distributed:
1) Amount of investment as of the last day of each calculation
period × 5% × (actual number of days during the calculation
period/365)
2) 49% of the net income for the period
Tertiary TK
The remainder after the distributions to the Primary TK and
Secondary TK(2) If losses are generated in a calculation period (including losses onsales), equity holders shall be distributed pro rata the losses
according to their investment ratios in each calculation period
within the amount of losses. In the case where the cumulative loss
exceeds the total equity contribution, the loss is limited to theequity contribution.
Repayment of Capital:
The TK Operator will repay each equity holder the invested amount at
the end of the TK agreement period. In the case where there are
cumulative losses, the remainder the of invested amount will be repaid
in the preference order of Primary TK, Secondary TK, then Tertiary
TK.

Overview ofPreferential
Negotiation
Right

Description

Preferential negotiation right for acquisition of the Underlying
Real Estate

Exercise
Period ofPreferential
Right

From July 30, 2015 through July 31, 2016

If Ichigo REIT offers to acquire at the below Preferential Priceany or all of the trust beneficiary interests or the Underlying Real
Estate, the TK Operator shall be obligated to sell to Ichigo REIT,
unless the Preferential Price from Ichigo REIT is extraordinarily
irrational relative to market pricing at that time.
Total: 14,900,000,000 yen (excludes consumption tax)
Preferential
Negotiation
Underlying Real Estate and Preferential Prices
Price
MG Ikenohata Building
5,130,000,000 yen
Higashi Ikebukuro Q Building 3,010,000,000 yen
Sun Center Building
1,040,000,000 yen
Sigma Hakata Building
1,380,000,000 yen
HF Fushimi Building
2,340,000,000 yen
Nishiki First Building
2,000,000,000 yen

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

7

B. Asset Details(1) Vanguard Motoazabu Building(i) Location
The building is located in the Azabu area in western Minato Ward. It is a high-end
residential area with large houses and luxury apartments. Embassies and ambassadors’
residences are also located in the area, creating a lively and international atmosphere.
The area attracts international companies. Industries in the area range from design
offices, mass media companies, and IT firms. Companies that value robust disasterprevention measures also seek offices in the area.

(ii) Features
This mid-size office building is a 9-minute walk from Hiroo Station on the Tokyo
Metro Hibiya Line located in the Roppongi/Azabujuban area.
The standard floor area is 170 tsubo (560 m2), having a ceiling of 2.7 meters. The
exterior wall is an exposed concrete finish. The building is currently occupied by IT
and bridal industry tenants.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

8Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking Co., Ltd.

Period of Trust Contract

August 31, 2004 - July 31, 2025 (Expected)

Location

3-4-26 Motoazabu, Minato-ku, Tokyo

Land

Building

Property Right

FreeholdSize

1,022.12 m2

ZoningCategory I Mid/High-Rise Residential

Coverage Ratio/Floor
Area Ratio

60%/300%

Property Right

Freehold

ZoningOfficeStructure

RC B1F/2F

Total Floor Area

1,503.03 m2

Construction Date

July 1, 1992

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

1,890,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

1,950,000,000 yen

Architect1

I.M.A. Architects & Associates

1

Builder

Structural Strength Assessor

Komatsu Kensetsu Kogyo Corporation
1

I.M.A. Architects & Associates

Inspection Agency1

Minato Ward

PML (Assessor)

8.02% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

3

Monthly Rental Income

7,544 thousand yen

Deposit78,279 thousand yen

Leasable Space

1,329.96 m2

Leased Space

1,329.96 m2

Occupancy

100%

Property Management Company

Ken Corporation Ltd.(Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)2

80 million yen

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

9Special Items
A portion of the land (105m2) is a position designated road pursuant to Article 42 Paragraph 1 Item 5 of the BuildingStandards Act. A memorandum of understanding exists with the neighbor regarding this portion of land.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
2
NOI is the net operating income used by the appraiser in determining direct capitalization. NOI yield is calculated by
dividing NOI by Acquisition Price. Amounts less than a million are rounded off.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

10

Appraisal Overview
Name

Vanguard Motoazabu Building

Appraisal Value

1,890,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 1, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
IncomeVacancy Loss
Expenses

AmountNote

1,890,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,950,000,000 yen
108,017,895 yen
113,829,363 yen
5,811,468 yen

Based on rental income, common area service income, parking
lot income, and other income
Based on mid- to long-term vacancy rate

27,722,106 yen

Administrative andMaintenanceExpenses

3,622,811 yen

Based on similar assets and past actual amounts

Utility Expenses

7,006,229 yen

Based on similar assets and past actual amounts

Repair Expenses

2,580,000 yen

Based on engineering reports and similar assets

PM Fees

2,459,111 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes

783,997 yen
11,055,400 yen

Based on the expected turnover rate and tenant acquisition costs
for similar assets
Based on FY2015 actual amounts

Insurance Premiums

106,540 yen

Based on the standard of similar assets and past actual amounts

Other Expenses

108,018 yen

Bank commissions and other expenses

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

80,295,789 yen
1,603,407 yen

Based on 2.0% investment yield.

5,805,000 yen

Based on engineering reports and similar assets

Net Profit

76,094,196 yen

Cap Rate

3.9%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,870,000,000 yen

Discount Rate

4.0%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

4.1%

Based upon risk-adjusted NOI

Value via Cost Approach

1,810,000,000 yen

Land

95.0%

Property

5.0%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

11(2) Dai 5 Akiyama Building(i) Location
The Shibuya area consists of a commercial district and a business district. The
commercial district is on the northwestern side of the station where many apparelstores and restaurants are located. The business district is in the vicinity of major
throughways including Meiji Dori and Roppongi Dori. Many of the apparel stores in
the area target the younger generation, while the business zone has become
increasingly popular as an office location for the IT industry.
In recent years, around Shibuya Station a number of large-scale commercial/officebuildings have been reconstructed and a redevelopment plan of the area is presently
underway. As a result of the redevelopment plan, the area is expected to continue toattract more businesses and more people.
(ii) Features
This mid-size office building is a 9-minute walk from Shibuya Station, serviced byvarious railway companies such as the JR, Tokyo, and Keio Railways.
The standard floor area is 58 tsubo (190 m2). The building has the competitiveness tomeet the needs of each tenant, such as an individual air conditioning system for eachfloor and OA sub-floors.
A convenience store occupies the first floor, and the other floors are occupied bytenants in the telecommunications industry.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

12Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken) (Expected)

TrusteeMizuho Trust & Banking Co., Ltd. (Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

1-3-10 Higashi, Shibuya-ku, Tokyo

Land

Building

Property Right

FreeholdSize

297.16 m2

ZoningCommercial, Category II Mid/High-Rise Residential

Coverage Ratio/ Floor
Area Ratio

80%/500%, 60%/300%

Property Right

Freehold

ZoningOffice, Retail

Structure

RC 6F

Total Floor Area

1,159.16 m2

Construction Date

October 25,1985

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

1,360,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

1,400,000,000 yen

Architect1

Tobishima Corporation Tokyo Branch 1st Architect Office1

Builder

Structural Strength Assessor

Tobishima Corporation Tokyo Branch
1

Tobishima Corporation Tokyo Branch 1st Architect OfficeInspection Agency1

Shibuya Ward

PML (Assessor)

6.67% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

3

Monthly Rental Income

5,752 thousand yen

Deposit

63,907 thousand yen

Leasable Space

1,041.36 m2

Leased Space

1,041.36 m2

Occupancy

100%

Property Management Company

Ken Corporation Ltd.(Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)2

59 million yen
Special Items

Part of the frame of the concrete floor, stairs, and trees, and concrete earth-retaining wall encroaches the northeasternneighbor. A memorandum of understanding exists which agrees to rectify the situation when a large-scale renovation orreconstruction is implemented in the future.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
2
NOI is the net operating income used by the appraiser in determining direct capitalization. NOI yield is calculated by
dividing NOI by Acquisition Price. Amounts less than a million are rounded off.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

13

Appraisal Overview
Name

Dai 5 Akiyama Building

Appraisal Value

1,360,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 1, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeAmountNote

1,360,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,400,000,000 yen
81,867,414 yen

Maximum Obtainable
Income85,875,064 yen

Based on rental income, common area service income, parking
lot income, and other income

Vacancy Loss

4,007,650 yen

Based on mid- to long-term vacancy rate

Expenses

22,157,558 yen

Administrative andMaintenanceExpenses

3,323,989 yen

Based on similar assets and past actual amounts

Utility Expenses

6,885,406 yen

Based on similar assets and past actual amounts

Repair Expenses

2,100,000 yen

Based on the average of the past 12 years of engineering reports

PM Fees

3,298,537 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes

583,679 yen
5,799,300 yen

Based on the expected turnover rate and tenant acquisition costs
for similar assets
Based on FY2015 actual amounts

Insurance Premiums

84,780 yen

Based on the standard of similar assets and past actual amounts

Other Expenses

81,867 yen

Bank commissions and other expenses

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

59,709,856 yen
1,319,415 yen

Based on 2.0% investment yield.

5,075,000 yen

Based on the average of the past 12 years of engineering reports

Net Profit

55,954,271 yen

Cap Rate

4.0%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,340,000,000 yen

Discount Rate

4.1%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

4.2%

Based upon risk-adjusted NOI

Value via Cost Approach

1,250,000,000 yen

Land

95.2%

Property

4.8%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

14(3) Ningyocho Central Building(i) Location
The Ningyocho area is 1.5km from the Tokyo Station, offering easy access to major
city centers using the Tokyo Metro Subway. As the rents in the area are relatively
reasonable despite its proximity to major office areas in central Tokyo such as the
Nihonbashi area adjacent to Ningyocho, the area serves as a secondary major
business district.
(ii) Features
This mid-size office building is a 4-minute walk from Ningyocho Station on the Toei
Asakusa Line and the Tokyo Metro Hibiya Line, and Kodenmacho Station on theTokyo Metro Hibiya Line. The standard floor of this building is 60 tsubo (190 m2),
with individual air conditioning systems and OA sub-floors, giving it
competitiveness in the area.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

15

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Period of Trust Contract

September 28, 2007 – July 31, 2025 (Expected)

Location

1-10-14 Nihonbashi-horidomecho, Chuo-ku, Tokyo

Land

Building

Property Right

FreeholdSize

318.89 m2

ZoningCommercial

Coverage Ratio/ Floor
Area Ratio

80%/700%

Property Right

Freehold

ZoningOfficeStructure

SRC 11F

Total Floor Area

2,122.71 m2

Construction Date

March 27, 1984

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd

Appraisal Value

1,470,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

1,540,000,000 yen

Architect1

Hiroshi Matsuura Architectural Office1

Builder

TAISEI CORPORATION

StructuralArchitect1
Inspection Agency

Hiroshi Matsuura Architectural Office1

Chuo Ward

PML (Assessor)

3.73% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the 16ledge.
Rent Overview (as of May 31, 2015)

Number of Tenants

8Monthly Rental Income

6,520 thousand yen

Deposit

60,573 thousand yen

Leasable Space

1,769.09 m2

Leased Size

1,769.09 m2

Occupancy

100%

Property Management Company

THE DAI-ICHI BUILDING CO., LTD.(Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)

2

74 million yen
Notes

1.
2.
3.

An intrusion prevention wall exists at the border with the southern neighbor. A memorandum of understanding
regarding its maintenance and management exists.
A V-shaped street drain, rain water inlet, and a concrete manhole exists at the border with the northern neighbor.
The engineering report indicates that a dumper does not exist over the elevator machine room. This will be rectified
after the acquisition at the owner’s expense.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

16

1

The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
2
NOI is the net operating income used by the appraiser in determining direct capitalization. NOI yield is calculated by
dividing NOI by Acquisition Price. Amounts less than a million are rounded off.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

17

Appraisal Overview
Name

Ningyocho Central Building

Appraisal Value

1,470,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 1, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
IncomeVacancy Loss
Expenses

AmountNote

1,470,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

1,540,000,000 yen
104,411,874 yen
109,806,182 yen
5,394,308 yen

Based on rental income, common area service income, parking
lot income, and other income
Based on mid- to long-term vacancy rate

30,303,825 yen

Administrative andMaintenanceExpenses

6,878,222 yen

Based on similar assets and past actual amounts

Utility Expenses

8,406,716 yen

Based on similar assets and past actual amounts

Repair Expenses

3,410,000 yen

Based on engineering reports and similar assets

PM Fees

3,473,496 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes

739,149 yen
7,147,300 yen

Based on the expected turnover rate and tenant acquisition costs
for similar assets
Based on FY2015 actual amounts

Insurance Premiums

144,530 yen

Based on the standard of similar assets and past actual amounts

Other Expenses

104,412 yen

Bank commissions and other expenses

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

74,108,049 yen
1,560,571 yen

Based on 2.0% investment yield.

7,750,000 yen

Based on engineering reports and similar assets

Net Profit

67,918,620 yen

Cap Rate

4.4%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

1,440,000,000 yen

Discount Rate

4.5%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

4.6%

Based upon risk-adjusted NOI

Value via Cost Approach

1,460,000,000 yen

Land

95.1%

Property

4.9%
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

18

(4) Otsuka Saint Core Building(i) Location
The Minami Otsuka Area is at the southeastern edge of Toshima Ward. There is acommercial district around Otsuka Station where the station building, hotels, andshopping streets are located. Many office buildings are found in the area for its
proximity to the station.
The area has convenient access to train stations on the JR Yamanote Line, Tokyo
Metro Marunouchi Line, and the Toden Arakawa Line. Otsuka Station on the JR
Yamanote Line is one stop away from Ikebukuro Station, one of the major terminal
stations in the city, and thus has easy access to Central Tokyo.
(ii) Features
The building is a mid-size office building, a 4-minute walk from Otsuka Station on
the JR Yamanote Line and a 6-minute walk from Shin-Otsuka Station on the Tokyo
Metro Marunouchi Line.
The 180-tsubo (590 m2) standard floor plate with the ceiling height of 2.6 meters is
relatively large compared to other office buildings in the vicinity. Stable rent income
can be expected due to its size and the easy-to-use standard shape of the floor plate.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

19

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)1(Expected)

TrusteeMizuho Trust & Banking Co., Ltd. (Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

3-46-3 Minami Otsuka, Toshima-ku, Tokyo

Land

Building

Property Right

FreeholdSize

976.82 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/500%

Property Right

Freehold

ZoningOfficeStructure

SRC 8F

Total Floor Area

4,573.06 m2

Construction Date

March 10, 1989

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

2,740,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

2,850,000,000 yen

Architect2

Akasaka Architectural Office2

Builder

Structural Strength Assessor

Fujita Engineering Company Ltd. Tokyo Branch
2

Akasaka Architectural OfficeInspection Agency2

City of Tokyo

PML (Assessor)

4.00% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as January 31, 2015)

Number of Tenants

7

Monthly Rental Income

12,510 thousand yen

Deposit

111,406 thousand yen

Leasable Space

3,687.98 m2

Leased Space

3,687.98 m2

Occupancy

100%

Property Management Company

Shimizu Comprehensive Development Co., Ltd.(Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)3

143 million yen
Special Items

1. A part of a metal frame encroaches the northwestern neighbor. A memorandum of understanding exists to remove
the frame at the owner’s expense and risk of accidents.
2. A lease termination notification has been received from one to the tenants (leased area: 298.82 m2) on February 27,
2015 to terminate the contract as of August 31, 2015. The occupancy of the building is expected to be 91.9% after
the termination.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

20

2

NOI is the net operating income used by the appraiser in determining direct capitalization. NOI yield is calculatedby dividing NOI by Acquisition Price.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

21

Appraisal Overview
Name

Otsuka Saint Core Building

Appraisal Value

2,740,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 1, 2015

Appraisal Value
Value by Direct Capitalization
MethodIncomeAmountNote

2,740,000,000 yen

Valuation determined via both a direct capitalization valuation
and DCF valuation

2,850,000,000 yen
193,544,601 yen

Maximum Obtainable
Income206,928,528 yen

Based on rental income, common area service income, parking
lot income, and other income

Vacancy Loss

13,383,927 yen

Based on mid- to long-term vacancy rate

Expenses

50,460,659 yen

Administrative andMaintenanceExpenses

8,320,083 yen

Based on similar assets and past actual amounts

Utility Expenses

16,330,375 yen

Based on similar assets and past actual amounts

Repair Expenses

6,660,000 yen

Based on engineering reports and similar assets

PM Fees

3,528,912 yen

Based on similar assets and past actual amounts

Leasing BrokerageFees

1,379,414 yen

Based on the expected turnover rate and tenant acquisition costs
for similar assets

Taxes

13,699,400 yen

Based on FY2015 actual amounts

Insurance Premiums

336,130 yen

Based on the standard of similar assets and past actual amounts

Other Expenses

193,545 yen

Bank commissions and other expenses

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

143,083,942 yen
2,822,750 yen

Based on 2.0% investment yield.

14,800,000 yen

Based on engineering reports and similar assets

Net Profit

131,106,692 yen

Cap Rate

4.6%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

2,690,000,000 yen

Discount Rate

4.7%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics taken
into account

Terminal Cap Rate

4.8%

Based upon risk-adjusted NOI

Value via Cost Approach

2,720,000,000 yen

Land

82.3%

Property

17.7%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

22

(5)

Osaka Nishi Honmachi Building(i) Location
The building is located in the Nishi-Honmachi area, a commercial and businesscenter in Osaka where many mid- and high-rise office buildings and stores arelocated. The area is close to Awaza Station on the Osaka Municipal Subway Chuo
Line and Sennichimae Line, and Honmachi Station on the Yotsubashi Line.
Awaza Station has access to two subways, and Honmachi Station on the Yotsubashi
Line close by is connected to Honmachi Station on the Midosuji Line.
(ii) Features
This mid-size office building situated on Chuo Odori Boulevard is a 4-minute walkfrom Awaza Station on the Osaka Municipal Subway Chuo Line and Sennichimae
Line.
Each floor has a standard floor plate of 162 tsubo (530 m2) which is sub-dividable tosuit the needs of its tenants. The common areas in the building were renovated in
February 2014.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

23

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking Co., Ltd. (Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

2-2-18 Awaza, Nishi-ku, OsakaLand

Building

Property Right

FreeholdSize

1,081.64 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/800%

Property Right

Freehold

Zoning(1)Office (2) Parking (3) Building Manager’s Office

Structure(1) SRC 14F (2) S 1F (3) CB 1F

Total Floor Area

(1)8,403.09 m2 (2) 44.77 m2 (3)4.48 m2

Construction Date

October22, 1990

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,210,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

2,250,000,000 yen

Architect1

Nikken Sekkei Ltd. 1st Architect Office1

Builder

Structural Strength Assessor

Konoike Construction Co., Ltd.
1

Nikken Sekkei Ltd. 1st Architect OfficeInspection Agency1

City of Osaka

PML (Assessor)

9.68% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as January 31, 2015)

Number of Tenants

30

Monthly Rental Income

14,950 thousand yen

Deposit132,242 thousand yen

Leasable Space

6,151.98 m2

Leased Space

6,073.98 m2

Occupancy

98.7%

Property Management Company

Japan Property Solutions Co., Ltd. (Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)2

133 million yen
Special Items

1. Part of a plant and a drain spout encroaches a southern and eastern neighbor. A memorandum of understanding exists
which agrees to rectify the situation when these parts are to be removed or moved, and to rectify the situation when theparts are reconfigured in the future.
2. Part of a fence and a concrete block encroaches an eastern neighbor. A memorandum of understanding exists which
agrees to rectify the situation when these parts are to be removed or moved, and to rectify the situation when the parts
are reconfigured in the future.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

24

A lease termination notification has been received from one to the tenants (leased area: 363.98 m2) on June 30, 2015
to terminate the contract as of December 31, 2015. The occupancy of the building is expected to be 92.8% after thetermination.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when thebuilding was built.
2
NOI is the net operating income used by the appraiser in determining direct capitalization. NOI yield is calculated by
dividing NOI by Acquisition Price. Amounts less than a million are rounded off.
3.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

25

Appraisal Overview
Name

Osaka Nishi Honmachi Building

Appraisal Value

2,210,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeNote
Valuation determined via both a direct capitalization
valuation and DCF valuation

2,210,000,000 yen
2,250,000,000 yen
224,675,540 yen

Maximum Obtainable
Rental Income

236,446,632 yen

Based on rental income, common area service income,parking lot income, and other income

Vacancy Loss

11,771,092 yen

Based on mid- to long-term vacancy rate

Expenses

91,480,883 yen

Administrative andMaintenance Expenses

22,332,800 yen

Based on similar assets and past actual amounts

Utility Expenses

33,499,260 yen

Based on similar assets and past actual amounts

Repair Expenses

4,156,000 yen

Based on the average of the past 12 years of engineering
reports

PM Fee6,748,333 yen

Based on similar assets

Leasing Brokerage
Fees1,457,113 yen

Based on the expected turnover rate, past actual amount, andtenant acquisition costs for similar assets

Taxes

22,049,800 yen

Based on FY2015 actual amounts

Insurance Premiums

563,550 yen

Based on the standard of similar assets and past actual
amounts

Other Expenses

674,027 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

133,194,657 yen
2,652,025 yen

Based on 2.0% investment yield

19,106,333 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

116,740,349 yen

Cap Rate

5.2%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,190,000,000 yen

Discount Rate

5.0%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.4%

Based upon risk-adjusted NOI

Value via Cost Approach

2,580,000,000 yen

Land

64.9%

Building

35.1%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

26

(6) Dai 41 Ocean Building(i) Location
The building is located in a business/commercial district known for generations as abusiness center with a concentration of buildings housing financial institutions. The
district is located between two prominent commercial areas in Nagoya, Meieki and
Sakae.
This area attracts sales offices of major corporations headquartered in the Tokyo or
Kansai Metropolitan Areas, and headquarters of major corporations based in the
Tokai area.
(ii) Features
This is a mid-size office building located within a 3-minute walk from Fushimi
Station of the Nagoya Municipal Subway Higashiyama and Tsurumai Lines. It issituated in a commercial district with a concentration of mid-to high-rise officebuildings along a street near Fushimi Dori Avenue.
The standard floor plate is 73 tsubo (240 m2) and the ceiling is 2.5 meters high. The
floor can be sub-divided into three units to suit the tenants’ needs. The building hascompetitiveness in the area for its well-renovated common areas and its building
specifications including OA sub-floors and individual air conditioning.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

27

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken) (Expected)

TrusteeMizuho Trust& Banking Co., Ltd. (Expected)

Period of Trust Contract

July 30, 2015 – July 31, 2025 (Expected)

Location

1-5-27 Nishiki, Naka-ku, Nagoya, Aichi Prefecture
Property Right

421.38 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%

Property Right

Freehold

ZoningOffice, Retail, Parking

Structure

SRC 9F

Total Floor Area

2,600.69 m2

Construction Date

January 31, 1991

Size
Land

Building

Freehold

1

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

1,340,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

1,360,000,000 yen

Architect2

Kokubu Architects Corporation

2

BuilderJDC Corporation

Structural Strength Assessor2
Inspection Agency

2

Kokubu Architects Corporation
City of Nagoya

PML (Assessor)

8.78% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

23

Monthly Rental Income

6,506 thousand yen

Deposit

54,087 thousand yen

Leasable Space

2,006.78 m2

Leased Space

2,006.78 m2

Occupancy

100%

Property Management Company

THE DAI-ICHI BUILDING CO., LTD.(Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)

3

72 million yen
Special Items

A lease termination notification has been received from one to the tenants (leased area: 67.44 m2) on April 8, 2015 toterminate the contract as of October 9, 2015.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
2
NOI is the net operating income used by the appraiser in determining direct capitalization. NOI yield is calculated by
dividing NOI by Acquisition Price.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

28

Appraisal Overview
Name

Dai 41 Ocean Building

Appraisal Value

1,340,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization
valuation and DCF valuation

1,340,000,000 yen
1,360,000,000 yen
97,822,603 yen

Based on rental income, common area service income,parking lot income, and other income

103,523,372 yen
5,700,769 yen

Based on mid- to long-term vacancy rate

25,496,564 yen

Administrative andMaintenance Expenses

7,138,700 yen

Based on similar assets and past actual amounts

Utility Expenses

6,555,924 yen

Based on similar assets and past actual amounts

Repair Expenses

1,647,750 yen

Based on the average of the past 12 years of engineering
reports

PM Fee1,368,876 yen

Based on similar assets

Leasing Brokerage
Fees
Taxes

Based on the expected turnover rate, past actual amount, andtenant acquisition costs for similar assets

657,319 yen
7,152,284 yen

Based on FY2015 actual amounts

Insurance Premiums

193,130 yen

Based on the standard of similar assets and past actual
amounts

Other Expenses

782,581 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

72,326,039 yen
1,169,485 yen

Based on 2.0% investment yield

5,305,583 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

68,189,941 yen

Cap Rate

5.0%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

1,330,000,000 yen

Discount Rate

4.8%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.2%

Based upon risk-adjusted NOI

Value via Cost Approach

1,000,000,000 yen

Land

70.0%

Building

30.0%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

29

(7) EME Nagoya Building(i) Location
The building is located in Meieki area near Nagoya Station, a major station with easy
access to multiple train lines including the Nagoya Municipal Subway Higashiyama
Line, Sakura-Dori Line, JR Lines, Tokaido Shinkansen Line, Meitetsu Lines, andNagoya Rinkai Rapid Transit Aonami Line. From Nagoya Station, passengers cantravel not only to the neighboring areas but also to cities across Japan.
East of Nagoya Station in the Meieki area is a business district with a concentrationof office buildings housing major corporations including banks and securities
companies.
Large-size office buildings have been torn down and rebuilt around Nagoya Station.
Now, small- and mid-size buildings are also being rebuilt, creating further liquidity
among office and retail tenants.
(ii) Features
This mid-size office building is located within a 7-minute walk from Nagoya Stationof the Nagoya Municipal Subway Higashiyama Line and Sakura-Dori Line, and haseasy access to public transportation including multiple train lines. Located on a wide
avenue called Hirokoji Dori with a wide frontage, the building has high visibility.
The standard floor plate is 182 tsubo (600 m2), and the ceiling is 2.6 meters high.
There are 3 elevators, and a mechanical parking tower that can park thirty cars. The
building is competitive for its renovation of the common areas in 2006 in addition to
the high specifications of the building.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

30

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Sumitomo Mitsui Trust Bank, Limited

Period of Trust Contract

May 22, 2001 - July 31, 2025 (Expected)

Location

4-24-8 Meieki, Nakamura-ku, Nagoya, Aichi Prefecture

Land

Building

Property Right

Freehold, landSize

1,001.17 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/800%

Property Right

Freehold

Zoning(1)Office, Retail, Warehouse (2)Parking

Structure(1)SRC B2F/8F (2)Steel 1F

Total Floor Area

(1)7,375.12 m2 (2)43.00 m2

Construction Date

(1)(2) February 23, 1982

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

3,430,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

3,530,000,000 yen

1Architect

Kume Sekkei

Builder1
Structural Strength Assessor

Kajima Corporation Nagoya Branch
1

Kume Sekkei

Inspection Agency1

City of Nagoya

PML (Assessor)

9.61% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

34

Monthly Rental Income

20,656 thousand yen

Deposit

199,162 thousand yen

Leasable Space

4,930.34 m2

Leased Space

4,930.34 m2

Occupancy

100 %Property Management Company

THE DAI-ICHI BUILDING CO., LTD.(Expected)

Master Lease Company

Motoazabu Holdings GK (Expected)

Assumed NOI (NOI yield)2

188 million yen
Special Items
2

1. A part of the property (132.45 m ) is leasehold. The size of the land indicated above includes this leasehold property.
2. A part of the concrete block wall encroaches the western neighbor. A memorandum of understanding exists which
agrees to rectify the situation when the wall is reconfigured in the future.
3. Part of a curb stone encroaches the eastern neighbor. A memorandum of understanding exists which agrees to rectify
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

31

the situation when the curb stone is reconfigured in the future.
4. Lease termination notifications have been received from four tenants:
Leased area:153.71 m2, contract termination as of June 30, 2015, notification received on April 27, 2015
Leased area: 54.10 m2, contract termination as of June 30, 2015, notification received on March 24, 2015
Leased area: 98.02 m2, contract termination as of September 30, 2015, notification received on March 31, 2015
Leased area: 98.02 m2, contract termination as of November 15, 2015, notification received on May 15, 2015
The occupancy of the building is expected to be 91.8% after the terminations.
1

The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price. Amounts less than a million are rounded off.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

32

Appraisal Overview
Name

EME Nagoya Building

Appraisal Value

3,430,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeNote
Valuation determined via both a direct capitalization
valuation and DCF valuation

3,430,000,000 yen
3,530,000,000 yen
290,901,811 yen

Maximum Obtainable
Rental Income

306,672,204 yen

Based on rental income, common area service income,parking lot income, and other income

Vacancy Loss

15,770,393 yen

Based on mid- to long-term vacancy rate

Expenses

102,641,471 yen

Administrative andMaintenance Expenses

15,645,500 yen

Based on similar assets and past actual amounts

Utility Expenses

34,051,914 yen

Based on similar assets and past actual amounts

Repair Expenses

2,269,750 yen

Based on the average of the past 12 years of engineering
reports

PM Fee4,540,857 yen

Based on similar assets

Leasing BrokerageFees

1,988,625 yen

Based on the expected turnover rate, past actual amount, andtenant acquisition costs for similar assets

Taxes

28,051,173 yen

Based on FY2015 actual amounts

Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

15,610,822 yen

Consumable goods, etc.

188,260,340 yen
3,786,175 yen

Based on 2.0% investment yield

19,166,250 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

172,880,265 yen

Cap Rate

4.9%

Value via DCF Method

Based on the standard of similar assets and past actual
amounts

482,830 yen

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

3,390,000,000 yen

Discount Rate

4.7%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.1%

Based upon risk-adjusted NOI

Value via Cost Approach

3,980,000,000 yen

Land

90.3%

Building

9.7%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

33

(8) MG Ikenohata Building(i) Location
This building is located in the Ikenohata area in southwestern Taito Ward. The area
has easy access to Chiyoda Ward, the center of business in Tokyo, and to Bunkyo
Ward with a concentration of educational and cultural facilities.
Since the area is also in a walking-distance from Ueno Station on the JR Line, one of
the major stations in Tokyo, demand for office space can be expected to supplement
the business districts in Chiyoda Ward and the Ueno area popular among local smallto medium-sized enterprises.
(ii) Features
The building is a mid-size office building on Shinobazu Dori, a 3-minute walk from
Yushima Station on the Tokyo Metro Chiyoda Line and 7-minute walk from Ueno
Hirokoji Station on the Tokyo Metro Ginza Line.
The standard floor plate is a little over 200 tsubo (660 m2) and the ceiling is 2.5
meters high. Equipped with individual air conditioning and OA sub-floors, thebuilding is competitive in the leasing market owing to the high building
specifications.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

34

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Trustee

Sumitomo Mitsui Trust Bank, Limited

Period of Trust Contract

October 31, 1989 - July 31, 2025 (Expected)

Location

1-2-18 Ikenohata, Taito-ku, Tokyo

Land

Building

Property Right

FreeholdSize

1,120.22 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%

Property Right

Freehold

ZoningOffice, Training Area

Structure

SRC B1F/8F

Total Floor Area

7,774.41 m2

Construction Date

June 27, 1991

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

5,140,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

5,310,000,000 yen

Architect1

Kume Sekkei

1

Builder

Kajima Corporation

Structural Strength Assessor
Inspection Agency

1

1

Kume Sekkei
City of Tokyo

PML (Assessor)

4.29% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

5

Monthly Rental Income

20,470 thousand yen

Deposit

93,837 thousand yen

Leasable Space

5,504.08 m2

Leased Space

4,711.52 m2

Occupancy

85.6%

Property Management Company

Shimizu Comprehensive Development Co., Ltd. (Expected)

Master Lease Company

Ikenohata Holdings GK (Expected)

Assumed NOI (NOI yield)2

263 million yen

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

35Special Items
None
1

The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building wasbuilt.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price. Amounts less than a million are rounded off.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

36

Appraisal Overview
Name

MG Ikenohata Building

Appraisal Value

5,140,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeNote
Valuation determined via both a direct capitalization
valuation and DCF valuation

5,140,000,000 yen
5,310,000,000 yen
347,882,479 yen

Maximum Obtainable
Rental Income

367,041,030 yen

Based on rental income, common area service income,parking lot income, and other income

Vacancy Loss

19,158,551 yen

Based on mid- to long-term vacancy rate

Expenses

84,665,435 yen

Administrative andMaintenance Expenses

16,974,213 yen

Based on similar assets and past actual amounts

Utility Expenses

23,182,680 yen

Based on similar assets and past actual amounts

Repair Expenses

11,200,000 yen

Based on the average of the past 12 years of engineering
reports

PM Fee4,950,634 yen

Based on contract rate and similar assets

Leasing BrokerageFees2,454,956 yen

Based on the standard turnover rate with competition, pastactual amounts, and similar assets into accountTaxes

25,029,000 yen

Based on FY2015 actual amounts

Insurance Premiums

526,070 yen

Based on the standard of similar assets and past actual
amounts

Other Expenses

347,882 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure263,217,044 yen
2,709,499 yen

Based on 2.0% investment yield

26,880,000 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

239,046,543 yen

Cap Rate

4.5%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

5,070,000,000 yen

Discount Rate

4.6%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

4.7%

Based upon risk-adjusted NOI

Value via Cost Approach

4,950,000,000 yen

Land

85.3%

Building

14.7%
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

37

(9) Higashi Ikebukuro Q Building(i) Location
The Higashi Ikebukuro area refers to the eastern side of Ikebukuro, the main station
for multiple train lines – the JR Yamanote Line, JR Saikyo Line, Tokyo Metro
Marunouchi Line, Fukutoshin Line, Yurakucho Line, Seibu Ikebukuro Line, and the
Tobu Tojo Line.
While the Higashi Ikebukuro area is not as bustling as the Ikebukuro area, the area ishighly visible with a concentration of office buildings due to the convenient access to
the Metropolitan Expressway.
(ii) Features
This building is a 9-minute walk from the Higashi Ikebukuro Station on the Tokyo
Metro Yurakucho Line and the Otsuka Station on the JR Yamanote Line. It is also a
12-minute walk from Ikebukuro Station on the JR Yamanote Line.
Each floor is sub-dividable with a standard floor plate of 140 tsubo (460 m2) and aceiling 2.6 meters high. The competitiveness of the building is high compared toother buildings in the area due its high specifications such as individual air
conditioning and OA sub-floor.
The first floor tenant is a supermarket. Consulting firms and telecommunications
company tenants occupy the upper floors.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

38

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

TrusteeMizuho Trust & Banking Co., Ltd.

Period of Trust Contract

May 18, 2007 - July 31, 2025 (Expected)

Location

2-23-2 Higashi Ikebukuro, Toshima-ku, Tokyo

Land

Building

Property Right

FreeholdSize

744.66 m2

ZoningCommercial/ Category I residential

Coverage Ratio/Floor
Area Ratio

80%/60%, 600%/400%

Property Right

Freehold

ZoningOffice, Parking

Structure

SRC/RC 8F

Total Floor Area

3,837.35 m2

Construction Date

June 8, 1993

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Value

3,040,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

3,140,000,000 yen

Architect1

Daisue Construction Co., Ltd. First-Class Registered Architects Office1

Builder

Structural Strength Assessor

Daisue Construction Co., Ltd. Tokyo Office1

Daisue Construction Co., Ltd. First-Class Registered Architects OfficeInspection Agency1

JAPAN ERI CO., LTD.

PML (Assessor)

6.50% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

4Monthly Rental Income

13,124 thousand yen

Deposit

112,820 thousand yen

Leasable Space

3,118.69 m2

Leased Space

3,118.69 m2

Occupancy

100%

Property Management Company

Shimizu Comprehensive Development Co., Ltd.(Expected)

Master Lease Company

Ikenohata Holdings GK (Expected)

Assumed NOI (NOI yield) 2

149 million yen
Special Items

The engineering report indicates that the fuse of the louver door of the mechanical garage within the zone at risk of fire
spread is damaged. An agreement has been made to rectify the situation at the seller’s expense.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when the building
was built.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price. Amounts less than a million are rounded off.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

39

Appraisal Overview
Name

Higashi Ikebukuro Q Building

Appraisal Value

3,040,000,000 yen

Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
Amount

Note
Valuation determined via both a direct capitalization

Appraisal Value
Value by Direct Capitalization
MethodIncome3,040,000,000 yen

valuation and DCF valuation

3,140,000,000 yen
205,790,887 yen

Maximum Obtainable
Rental Income

218,834,618 yen

Based on rental income, common area service income,parking lot income, and other income

Vacancy Loss

13,043,731 yen

Based on mid- to long-term vacancy rate

Expenses

56,156,969 yen

Administrative andMaintenance Expenses

10,291,743 yen

Based on similar assets and past actual amounts

Utility Expenses

26,159,739 yen

Based on similar assets and past actual amounts

Repair Expenses

4,440,000 yen

Based on engineering reports and similar assets

PM Fee2,126,046 yen

Based on contract rate and similar assets

Leasing BrokerageFees

1,232,810 yen

Based on the standard turnover rate with competition, pastactual amounts, and similar assets into accountTaxes

11,441,000 yen

Based on FY2015 actual amounts

Insurance Premiums

259,840 yen

Based on the standard of similar assets and past actual
amounts

Other Expenses

205,791 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

149,633,918 yen
2,720,259 yen

Based on 2.0% investment yield

11,100,000 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

141,254,177 yen

Cap Rate

4.5%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

3,000,000,000 yen

Discount Rate

4.6%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

4.7%

Based upon risk-adjusted NOI

Value via Cost Approach

3,020,000,000 yen

Land

85.2%

Building

14.8%
Notes

None
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

40

(10) Sun Center Building(i) Location
The area is conveniently located near stations of multiple train lines such as the JR
Tozai Line, Osaka City Subway Tanimachi Line, and Sakaisuji Line, and is also easy
to access by car as it is close to the Minami Morimachi Entrance of the Hanshin
Expressway. Mid- and high-rise office buildings are built on the major roads runningin front of the station, and slightly away from the major roads are small-sizedbuildings and residences such as condominiums.
The area is a subordinate business center of Osaka, having mid-sized office buildings
with steady demand from existing tenants and relatively less demand from new
tenants. Therefore, the lease market of the area is stable.
(ii) Features
This building is a 6-minute walk from Osaka Tenmangu Station on the JR Tozai Linelocated in a nice area with mid-size office buildings and condominiums.
The leased space of a standard floor is 90 tsubo (290 m2) and the ceiling is 2.58
meters high. The building has high competitiveness in the area with individual air
conditioning systems, OA sub-floors, and parking spaces for 34 cars.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

41

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken) (Expected)

TrusteeMizuho Trust Bank, Limited(Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025(Expected)

Location

1-3 Matsugaecho, Kita-ku, OsakaLand

Building

Property Right

FreeholdSize

661.54 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%

Property Right

Freehold

Zoning(1) Office, Parking, Machine Room (2) Warehouse

Structure(1) Steel B1F/9F (2) RC 1F

Total Floor Area

(1) 3,851.25 m2 (2) 6.84 m2

Construction Date

February 15, 1994

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

1,060,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

1,070,000,000 yen

1Architect

Konoike Construction Co., Ltd. Osaka Head Office 1st Architect Office

Builder1

Joint Venture of Konoike Construction Co., Ltd. and Yutaka Construction Co.,
Ltd.

Structural Strength Assessor1
Inspection Agency

1

Konoike Construction Co., Ltd. Osaka Head Office 1st Architect Office
City of Osaka

PML (Assessor)

4.14% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

12

Monthly Rental Income

6,224 thousand yen

Deposit55,821 thousand yen

Leasable Space

2,521.51 m2

Leased Space

2,521.51 m2

Occupancy

100%

Property Management Company

Japan Property Solutions Co., Ltd.(Expected)

Master Lease Company

Ikenohata Holdings GK (Expected)

Assumed NOI (NOI yield)

2

59 million yen
Special Items

None
The names of the architect, builder, structural strength assessor, and inspection agency are those of when thebuilding was built.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price.
1

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

42

Appraisal Overview
Name

Sun Center Building

Appraisal Value

1,060,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization
valuation and DCF valuation

1,060,000,000 yen
1,070,000,000 yen
99,499,438 yen

Based on rental income, common area service income,parking lot income, and other income

104,244,600 yen
4,745,162 yen

Based on mid- to long-term vacancy rate

39,760,611 yen

Administrative andMaintenance Expenses

11,441,300 yen

Based on similar assets and past actual amounts

Utility Expenses

10,525,950 yen

Based on similar assets and past actual amounts

Repair Expenses

3,641,250 yen

Based on the average of the past 12 years of engineering
reports

PM Fee2,615,550 yen

Based on similar assets

Leasing Brokerage
Fees
Taxes

Based on the expected turnover rate and tenant acquisition
costs for similar assets

495,525 yen
10,279,039 yen

Based on FY2015 actual amounts

Insurance Premiums

264,500 yen

Based on the standard of similar assets and past actual
amounts

Other Expenses

497,497 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

59,738,827 yen
844,170 yen

Based on the average of the past 12 years of engineering
reports

7,002,417 yen

Net Profit

53,580,580 yen

Cap Rate

5.0%

Value via DCF Method

Based on 2.0% investment yield

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

1,050,000,000 yen

Discount Rate

4.8%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.2%

Based upon risk-adjusted NOI

Value via Cost Approach

1,210,000,000 yen

Land

65.0%

Building

35.0%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

43

(11) Sigma Hakata Building(i) Location
The Hakata Eki-Mae area (area in front of Hakata Station) is a commercial area
located on the western side of Hakata Station of the Fukuoka City Subway Airport
Line. It is an area known as “Asia’s gateway” together with the Tenjin area. It is abusiness area where many large-size buildings stand on the major road.
Office buildings and retail/office buildings are concentrated in the area along the
Kokudai Road. It is an area with steady demand having many retail stores as well,such as Canal City Hakata, a major shopping mall.
(ii) Features
This mid-size office building conveniently located within walking distance from
Tenjin and Central Hakata and is only a one-minute walk from Gion Station of the
Fukuoka City Subway Airport Line.
The building has an aluminum curtain wall façade. With a standard floor area of 88
tsubo (290 m2) and ceilings that are 2.5 meters high, the building has highcompetitiveness in the area for its individual air conditioning systems and parking
space for 36 cars.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

44

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken) (Expected)

TrusteeMizuho Trust & Banking Co., Ltd. (Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

1-28 Gion, Hakata-ku, Fukuoka, Fukuoka Prefecture

Land

Building

Property Right

FreeholdSize

644.27 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%, 80%/400%

Property Right

Freehold

ZoningOfficeStructure

SRC B1F/9F

Total Floor Area

3,469.90 m2

Construction Date

April 17, 1989

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

1,380,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

1,450,000,000 yen

Architect1

Tsukasa Architectural Office1

Builder

Structural Strength Assessor

Araigumi Co., Ltd.
1

Tsukasa Architectural OfficeInspection Agency1

City of Fukuoka

PML (Assessor)

0.75% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

30

Monthly Rental Income

6,756 thousand yen

Deposit64,427 thousand yen

Leasable Space

2,423.86 m2

Leased Space

2,423.86 m2

Occupancy

100%

Property Management Company

Xymax Properties Kyusyu Corporation (Expected)

Master Lease Company

Ikenohata Holdings GK (Expected)

Assumed NOI (NOI yield)2

83 million yen
Special Items

An easement for the purpose of walkthrough has been set on the southwestern and southeastern side of the land.
1

The names of the architect, builder, structural strength assessor, and inspection agency are those of when thebuilding was built.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

45

Appraisal Overview
Name

Sigma Hakata Building

Appraisal Value

1,380,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization
valuation and DCF valuation

1,380,000,000 yen
1,450,000,000 yen
117,122,073 yen

Based on mid- to long- term rental income, common area
service income, parking lot income, and other income

123,811,130 yen
6,689,057 yen

Based on mid- to long-term vacancy rate

33,635,807 yen

Administrative andMaintenance Expenses

7,918,700 yen

Based on similar assets and past actual amounts

Utility Expenses

9,238,446 yen

Based on similar assets and past actual amounts

Repair Expenses

2,474,333 yen

Based on the average of the past 12 years of engineering
reports

PM Fee3,867,795 yen

Based on similar assets

Leasing Brokerage
Fees
Taxes

Based on the expected turnover rate and tenant acquisition
costs for similar assets

882,032 yen
8,086,204 yen

Based on FY2015 actual amounts

Insurance Premiums

231,320 yen

Based on the estimate and standard of similar assets

Other Expenses

936,977 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

83,486,266 yen
1,650,664 yen

Based on 2.0% investment yield

8,236,000 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

76,900,930 yen

Cap Rate

5.3%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

1,350,000,000 yen

Discount Rate

5.1%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.5%

Based upon risk-adjusted NOI

Value via Cost Approach

1,580,000,000 yen

Land

80.0%

Building

20.0%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

46

(12) HF Fushimi Building(i) Location
The Fushimi area is located between the two major commercial districts, Meieki and
Sakae. The area is considered to be the third major commercial area with officebuildings and financial institutions.
The area attracts major companies having their headquarters in Tokyo or Kansai
seeking branch offices and Tokai-based companies seeking headquarter offices.
(ii) Features

This mid-size office building is a 4-minute walk from Fushimi Station on the Nagoya
City Subway Tsurumai Line and Higashiyama Line.
The standard floor is 130 tsubo (420 m2) offering a relatively large space for tenants
seeking office space in the Fushimi area. The building is competitive in the leasing
market of the area, with the main entrance and the southern side of the building(facing the main road) having been renovated.
The basement floor is currently occupied by a restaurant. Tenants on the upper floors
include the bridal industry, interior goods, and electrical equipment.

(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

47

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken) (Expected)

TrusteeMizuho Trust Bank, Limited (Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025(Expected)

Location

1-18-24 Nishiki, Naka-ku, Nagoya, Aichi Prefecture

Land

Building

Property Right

FreeholdSize

770.43 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/800%

Property Right

Freehold

ZoningOffice, Retail

Structure

SRC B1F/9F

Total Floor Area

6,290.43 m2

Construction Date

September 21, 1984

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,350,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

2,410,000,000 yen

Architect1

Kajima Corporation Nagoya Branch 1st Architect Office1

Builder

Structural Strength Assessor

Kajima Corporation Nagoya Branch
1

Kajima Corporation Nagoya Branch 1st Architect OfficeInspection Agency1

City of Nagoya

PML (Assessor)

10.21% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.
Rent Overview (as of May 31, 2015)

Number of Tenants

39

Monthly Rental Income

12,067 thousand yen

Deposit106,108 thousand yen

Leasable Space

4,152.22 m2

Leased Space

3,935.41 m2

Occupancy

94.8%

Property Management Company

THE DAI-ICHI BUILDING CO., LTD.(Expected)

Master Lease Company

Ikenohata Holdings GK (Expected)

Assumed NOI (NOI yield)2

134 million yen
Special Items

1. The rainwater inlet encroaches the southwestern neighbor. A memorandum of understanding exists which agrees torectify the situation when this is to be removed, moved, or reconfigured in the future.
2. The concrete block foundation and U-shaped drain encroaches the northeastern neighbor. A memorandum of
understanding exists which agrees to rectify the situation when this is to be removed, moved, or reconfigured in the
future.
Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

48

3. A part of a signage and lighting installed on the building encroaches the southeastern neighbor. No memorandum of
understanding exists to rectify the situation.
4. The fire prevention inspection report indicates the need to rectify the automatic fire alarm system and the emergency
alarm system on the leased space on the seventh floor. A request for rectification has been sent to the tenant.
5. The building inspection report indicates the need to rectify the ventilation hood and improve the amount of ventilation.
A request for rectification has been sent to the tenant.
6. The building inspection report indicates the need to rectify the wire to open the gas ventilation on the leased space of thefirst floor. A request for rectification has been sent to the tenant.
7. The special building inspection report indicates the need to repair the emergency lighting and an agreement has been
made to repair it at the seller’s expense.
8. The special building inspection report indicates the need to rectify the gas exhaust planning of the leased spaces on thefirst and second floor, the air ventilation of the leased space on the second floor, the machine ventilation equipment of
the leased space on the seventh floor, and emergency lamp of the leased area on the ninth floor. Requests forrectification have been sent to the tenants.
9. Lease termination notifications have been received from two tenants:
Leased area:160.70 m2, contract termination as of July 31, 2015, notification received on January 30, 2015
Leased area: 39.60 m2, contract termination as of January 1, 2016, notification received on July 1, 2015
The occupancy is expected to be 90.0% after the terminations.
1
The names of the architect, builder, structural strength assessor, and inspection agency are those of when thebuilding was built.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

49

Appraisal Overview
Name

HF Fushimi Building

Appraisal Value

2,350,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeNote
Valuation determined via both a direct capitalization
valuation and DCF valuation

2,350,000,000 yen
2,410,000,000 yen
189,885,598 yen

Maximum Obtainable
Rental Income

202,376,814 yen

Based on mid- to long- term rental income, common area
service income, parking lot income, and other income

Vacancy Loss

12,491,216 yen

Based on mid- to long-term vacancy rate

Expenses

55,729,814 yen

Administrative andMaintenance Expenses

11,304,600 yen

Based on similar assets and past actual amounts

Utility Expenses

19,594,692 yen

Based on similar assets and past actual amounts

Repair Expenses

2,151,667 yen

Based on the average of the past 12 years of engineering
reports

PM Fee2,937,566 yen

Based on similar assets

Leasing BrokerageFees

1,223,986 yen

Based on the expected turnover rate and tenant acquisition
costs for similar assets

Taxes

17,037,195 yen

Based on FY2015 actual amounts

Insurance Premiums

530,680 yen

Based on the estimate and standard of similar assets

Other Expenses

949,428 yen

Consumable goods, etc.

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

134,155,784 yen
2,390,641 yen

Based on 2.0% investment yield

13,558,083 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

122,988,342 yen

Cap Rate

5.1%

Value via DCF Method

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,320,000,000 yen

Discount Rate

4.9%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.3%

Based upon risk-adjusted NOI

Value via Cost Approach

2,680,000,000 yen

Land

86.3%

Building

13.7%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

50

(13) Nishiki First Building(i) Location
The Fushimi area is located between the two major commercial districts, Meieki and
Sakae. The area has historically been a major commercial area with office buildings
and financial institutions.
The area attracts major companies having their headquarters in the Tokyo or theKansai area seeking branch offices and also Tokai-based companies seeking
headquarter offices.
(ii) Features
This mid-size office building is a 6-minute walk from Fushimi Station on the Nagoya
City Subway Tsurumai Line and Higashiyama Line.
The standard floor plate is 180 tsubo (594 m2) offering a relatively large space fortenants seeking office space in the Fushimi area. The building is competitive from aleasing perspective, as the ceilings are 2.5 meters high and the office spaces haveindividual air conditioning, OA sub-floors, and the common spaces have beenrenewed.
A subsidiary of a TSE First Section-listed telecommunications company is currently
the single tenant renting the whole building.
(iii) Property Photos and Location

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

51

Asset Overview
Legal Form of Asset

Trust beneficiary interest in real estate (juekiken) (Expected)

TrusteeMizuho Trust Bank, Limited (Expected)

Period of Trust Contract

July 30, 2015 - July 31, 2025 (Expected)

Location

1-8-8 Nishiki, Naka-ku, Nagoya, Aichi Prefecture

Land

Building

Property Right

FreeholdSize

947.10 m2

ZoningCommercial

Coverage Ratio/Floor
Area Ratio

80%/600%

Property Right

Freehold

ZoningOffice, Conference Room, Parking

Structure

SRC B1F/7F

Total Floor Area

5,740.45 m2

Construction Date

October 23, 1984

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Value

2,010,000,000 yen

Appraisal Date

July 1, 2015

Value by Direct Capitalization Method

2,040,000,000 yen

1Architect

Nikken Sekkei Ltd. Nagoya Office

Builder1

Joint Venture of OBAYASHISHIMIZU CORPORATION

Structural Strength Assessor1

Nikken Sekkei Ltd. Nagoya OfficeInspection Agency1

City of Nagoya

PML (Assessor)

8.84% (Sompo Japan Nipponkoa Risk Management Inc.)

Collateral

A right of pledge has been established, with the lender to the primary TK
equity interest as the pledgee.

CORPORATION, Sato Kogyo andRent Overview (as of May 31, 2015)
Number of Tenants

1Monthly Rental Income(Note)

Deposit(Note)

Leasable Space

3,324.54 m2

Leased Space

3,324.54 m2

Occupancy

100%

Property Management Company

THE DAI-ICHI BUILDING CO., LTD.(Expected)

Master Lease Company

Ikenohata Holdings GK (Expected)

Assumed NOI (NOI yield)2

116 million yen
Special Items

None
The names of the architect, builder, structural strength assessor, and inspection agency are those of when thebuilding was built.
2
NOI is the net operating income used by the appraiser in determining direct capitalization.
NOI yield is calculated by dividing NOI by Acquisition Price.
(Note) Tenant has not consented to disclosure.
1

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

52

Appraisal Overview
Name

Nishiki First Building

Appraisal Value

2,010,000,000 yen

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Appraisal Date

July 1, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses

Note
Valuation determined via both a direct capitalization
valuation and DCF valuation

2,010,000,000 yen
2,040,000,000 yen
156,749,982 yen

Based on mid- to long- term rental income, common area
service income, parking lot income, and other income

161,771,115 yen
5,021,133 yen

Based on mid- to long-term vacancy rate

40,041,360 yen

Administrative andMaintenance Expenses

6,957,900 yen

Based on similar assets and past actual amounts

Utility Expenses

15,180,912 yen

Based on similar assets and past actual amounts

Repair Expenses

2,191,083 yen

Based on the average of the past 12 years of engineering
reports

PM Fee1,560,000 yen

Based on similar assets

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure

11,617,598 yen

Based on FY2015 actual amounts

339,310 yen

Based on the estimate and standard of similar assets

1,254,000 yen

Consumable goods, etc.

116,708,622 yen
1,763,694 yen

Based on 2.0% investment yield

14,390,167 yen

Based on the average of the past 12 years of engineering
reports

Net Profit

104,082,149 yen

Cap Rate

5.1%

Value via DCF Method

Based on the expected turnover rate and tenant acquisition
costs for similar assets

940,557 yen

Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual
characteristics, property right, etc.

2,000,000,000 yen

Discount Rate

4.9%

Based on transactions of similar assets and the yields offinancial assets with the asset’s individual characteristics
taken into account

Terminal Cap Rate

5.3%

Based upon risk-adjusted NOI

Value via Cost Approach

1,670,000,000 yen

Land

79.0%

Building

21.0%
Notes

None

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

53

C. TK Operator Profiles
Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
REIT or Asset Manager

Name
Address
Representative

Principal Businesses

CapitalEstablishment Date
Equity Holder

Relationship with the Ichigo
REIT or Asset Manager

Motoazabu Holdings GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Mariko Hirano
1. The acquisition, holding, and sale of trust beneficiaryinterest (juekiken)
2. The holding, management, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
June 8, 2015
Ippan Shadan Hojin Star Holding
The Seller does not have any capital, personnel, or
business relationship and is not a related party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. However, IGH, the 100%
shareholder of IRE is a related party according to theinternal rules of IRE, because it holds more than half of theequity in Motoazabu Holdings GK. Also, IES, a related
party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law, isproviding asset management advisory services.
Ikenohata Holdings GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Hiroshi Sasaki
1. The acquisition, holding, and sale of trust beneficiaryinterest (juekiken)
2. The holding, management, and sale of real estate
3. Other businesses relating to the aforementioned
businesses
100,000 yen
June 8, 2015
Ippan Shadan Hojin Star Holding
The Seller does not have any capital, personnel, or
business relationship and is not a related party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law. However, IGH, the 100%
shareholder of IRE is a related party according to theinternal rules of IRE, because it holds more than half of theequity in Ikenohata Holdings GK. Also, IES, a related
party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law, isproviding asset management advisory services.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

54

D. Transactions with Related-Parties(1) Seller Profile
The seller did not consent to disclosure.
(2) Other
Motoazabu Holdings GK and Ikenohata Holdings GK are not related parties as definedin the Enforcement Ordinance of the Investment Trust and Investment Corporation Law.
Nonetheless, the acquisition process has followed the internal rules of IRE for thefollowing reasons: First, Ichigo Group Holdings, the 100% shareholder of IRE is arelated party according to the internal rules of IRE since it holds more than half of theequity in Motoazabu Holdings GK and Ikenohata Holdings GK. Second, Ichigo EstateCo., Ltd., a related party as defined in the Enforcement Ordinance of the Investment
Trust and Investment Corporation Law, is providing asset management advisory
services.
E.

Broker Profiles
Name
Address
Representative
Principal Business
Registration
CapitalEstablished Date
Relationship with
Ichigo REIT or IRE
Brokerage FeeF.

C&M Securities Co., Ltd.
2-30-15 Hacchobori, Chiyoda-ku, Tokyo
Masaki Nishioka, Representative Director
Brokerage of securities, handling of private placements
Financial Instruments Dealer, Kanto Financial Bureau,
Registration No. 73
300 million yen
July 2000
The broker does not have any capital, personnel, or business
relationship of note with Ichigo REIT/IRE. In addition, the seller
is not an interested party as defined in the Enforcement Ordinanceof the Investment Trust and Investment Corporation Law or theinternal regulations of the Asset Management Company.
The broker did not give consent to disclosure of the fee.

Acquisition Schedule
Contract Date

July 28, 2015

TK Equity Acquisition Date

July 29, 2015

Trust Beneficiary Interest Acquisition Date

July 30, 2015

G. Future Outlook
The current fiscal period earnings impact from this acquisition is minimal. Therefore, noforecast revisions will be made to the Financial Report for the Fiscal Period Ending October
2015 (May 1, 2015 – October 31, 2015) announced on June 16, 2015.

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

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

55

Reference: Post-Acquisition Portfolio

No.

Area1

Property

Acquisition
Price2% of(mm yen) Portfolio3

O-02 Ichigo Nishisando Building

Central Tokyo

3,254

2.0%

O-03 Ichigo Mita Building

Central Tokyo

2,740

1.7%

O-04 Ichigo Nanpeidai Building

Central Tokyo

1,920

1.2%

O-05 Ichigo Hanzomon Building

Central Tokyo

1,550

0.9%

O-06 Ichigo Hijirizaka Building

Central Tokyo

1,200

0.7%

O-07 Ichigo Shibuya Kamiyamacho Building

Central Tokyo

1,505

0.9%

O-08 Ichigo Akasaka 5 Chome Building

Central Tokyo

735

0.4%

O-09 Ichigo Shibakoen Building

Central Tokyo

1,100

0.7%

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

1,917

1.2%

O-11 Ichigo Ginza 612 Building

Central Tokyo

1,773

1.1%

O-12 Ichigo Uchikanda Building

Central Tokyo

1,140

0.7%

O-14 Ichigo Yotsuya 4 Chome Building

Central Tokyo

550

0.3%

O-15 Ichigo Tameike Building

Central Tokyo

580

0.4%

O-16 Ichigo Jimbocho Building

Central Tokyo

1,820

1.1%

O-17 Ichigo Hakozaki Building

Central Tokyo

1,150

0.7%

O-18 Ichigo Kudan 2 Chome Building

Central Tokyo

763

0.5%

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

844

0.5%

O-20 Ichigo Gotanda Building

Central Tokyo

5,060

3.1%

O-21 Ichigo Shin Yokohama Building

Tokyo Metropolitan Area

1,816

1.1%

O-22 Ichigo Minami Ikebukuro Building

Tokyo Metropolitan Area

1,460

0.9%

O-23 Ichigo Nakano North Building

Tokyo Metropolitan Area

764

0.5%

O-24 Ichigo Eitai Building

Tokyo Metropolitan Area

1,490

0.9%

O-25 Ichigo Yokosuka Building

Tokyo Metropolitan Area

971

0.6%

O-26 Ichigo Ikejiri Building

Tokyo Metropolitan Area

2,030

1.2%

O-27 Route Ikebukuro Building

Tokyo Metropolitan Area

639

0.4%

O-28 Ichigo Nishi-Gotanda Building
O-29 Ichigo Kichijoji Building

Central Tokyo
Tokyo Metropolitan Area

765
2,160

0.5%
1.3%

O-33 Ichigo Meieki Building

Four Major Regional Cities

837

0.5%

O-34 Ichigo Sakae Building

Four Major Regional Cities

4,705

2.9%

O-37 Ichigo Marunouchi Building

Four Major Regional Cities

6,710

4.1%

O-38 Ichigo Toyamaeki Nishi Building

Other Regional Cities

1,650

1.0%

O-39 Ichigo Mirai Shinkin Building

Other Regional Cities

1,158

0.7%

O-40 Ichigo Saga Building

Other Regional Cities

659

0.4%

O-42 Ichigo Takamatsu Building

Other Regional Cities

3,010

1.8%

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

56

No.

Area1

Property

O-44 Akita Sanno 21 Building

Other Regional Cities

O-46 Ichigo Kanda Nishikicho Building

Acquisition
Price2% of(mm yen) Portfolio3
560

0.3%

Central Tokyo

2,130

1.3%

O-47 Ichigo Akiharaba North Building
O-48 Ichigo Sakaisuji Honmachi Building
O-49 Ichigo Kanda Ogawamachi Building

Central Tokyo
Four Major Regional Cities
Central Tokyo

5,500
1,940
2,210

3.4%
1.2%
1.3%

O-50 Ichigo Hatchobori Building

Central Tokyo

1,905

1.2%

O-51 Ebisu Green GlassCentral Tokyo

5,900

3.6%

O-52 Ichigo Omori Building

Central Tokyo

3,850

2.3%

O-53 Ichigo Takadanobaba Building

Central Tokyo

1,580

1.0%

O-54 Ichigo Omiya Building

Tokyo Metropolitan Area

3,430

2.1%

O-55 Ichigo Sagamihara Building

Tokyo Metropolitan Area

1,174

0.7%

O-56 Ichigo Ofuna Building

Tokyo Metropolitan Area

2,000

1.2%

O-57 Ichigo Sendai East Building

Other Regional Cities

1,840

1.1%

O-58 Ichigo Kumamoto Building

Other Regional Cities

1,450

0.9%

O-59 Ichigo Jingumae Building

Central Tokyo

7,200

4.4%

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

3,650

2.2%

O-61 Ichigo Hiroo Building

Central Tokyo

3,960

2.4%

O-62 Ichigo Sasazuka Building

Central Tokyo

4,780

2.9%

O-63 Ichigo Higashi Nihonbashi Building

Central Tokyo

4,700

2.9%

O-64 Shuwa Dai 2 Building

Central Tokyo

2,500

1.5%

O-65 Ichigo Shinkawa Building

Central Tokyo

2,360

1.4%

O-66 Ichigo Kudan Building

Central Tokyo

3,190

1.9%

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

3,660

2.2%

O-68 Axior Mita

Central Tokyo

1,800

1.1%

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metropolitan Area

4,570

2.8%

O-70 Koriyama Big-i (Office Section)

Other Regional Cities

1,660

1.0%

Subtotal - Office (60 Properties)
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo

139,924
1,360
701
946
1,970

85.4%
0.8%
0.4%
0.6%
1.2%

Z-03 Burg Omori

Tokyo Metropolitan Area

3,218

2.0%

Z-04 Pagoda Asakusa

Tokyo Metropolitan Area

1,640

1.0%

Z-05 Regalo Building

Tokyo Metropolitan Area

1,310

0.8%

Z-06 Ichigo Yokohama Nishiguchi Building

Tokyo Metropolitan Area

903

0.6%

Z-07 El Centro Sapporo

Four Major Regional Cities

558

0.3%

R-04
R-06
R-09
Z-02

Bureau Takanawadai
B-SITE Hamamatsucho
Ichigo Serviced Apartments Ginza
Fiesta Shibuya

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

57

No.

Area1

Property

Z-08 Daimyo Balcony

Four Major Regional Cities

Z-09 Konami Sports Club Izumi Fuchu
Ichigo Shibuya Bunkamura-Dori
Z-10
Building
Twicere Yokohama Isogo (Retail
Z-11
Section)Z-12 Lions Square Kawaguchi
Ichigo Shin Yokohama Arena Dori
Z-13
Building
Z-14 Ichigo Kamata Building

Acquisition
Price2% of(mm yen) Portfolio3
638

0.4%

Other Regional Cities

1,210

0.7%

Central Tokyo

2,400

1.5%

Tokyo Metropolitan Area

1,620

1.0%

Tokyo Metropolitan Area

2,430

1.5%

Tokyo Metropolitan Area

1,700

1.0%

Tokyo Metropolitan Area

1,400

0.9%

Subtotal - Others (16 Properties)
Total (76 Properties)

24,004
163,92814.6%
100.0%

Motoazabu Holdings GK TK Equity Interest
Investments
Ikenohata Holdings GK TK Equity Interestin Securities
Total Investments in Securities (2 investments)

1,000

－

1,000

－

2,000

－

1

“Central Tokyo” refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards.
“Tokyo Metropolitan Area” refers to Tokyo (excluding the six wards above), Kanagawa, Chiba,
and Saitama Prefectures. “Four Major Regional Cities” refers to Osaka, Nagoya, Fukuoka, andSapporo.

2

Acquisition Price is either the actual acquisition price (excluding consumption tax) or theacquisition price (excluding consumption tax) as described in the sales and purchase agreementof the trust beneficiary interest, with the exception of 42 assets (O-02 to O-44 and Z-02 toZ-08) which are listed with their appraised value as of October 31, 2011 reflecting acquisition
via the REIT merger.

3% of Portfolio is the Acquisition Price as a percentage of the Total Acquisition Price androunded to the nearest second decimal place.

Disclaimer: This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding the acquisitions of TK equity interests in trust beneficiaryinterest in real estate by Ichigo REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo REIT’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

58