February 19, 2014
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
1-1, Nihonbashi-Muromachi 2-chome, Chuo-Ku,
Tokyo 103-0022
Nippon Accommodations Fund Inc.
Executive Director
Nobumi Tobari(Code Number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
President and CEO
Kosei Murakami
Contact CFO and Director
Satoshi Nohara(TEL. 03-3246-3677)

Notification Concerning Acquisition of Domestic Real Estate Property
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on the acquisition of a real estate
property in Japan as shown below.
1. Reason for Acquisition
Based on the provisions for investments and policies on asset management provided in the Articles ofIncorporation, the decision to acquire the following property was made to ensure the steady growth of assets
under management, and for the diversification and further enhancement of the investment portfolio.
2. Overview of Acquisition(1) Name of property to be acquired (Note 1)

Park Cube Atagoyama Tower(2) Type of property to be acquired

Real Estate(3) Acquisition price (Note 2)¥8,650,000 thousand(4) Appraised value (Note 3)¥8,690,000 thousand(5) Date of conclusion of sales contract

February 19, 2014(6) Planned date of handoverMarch 7, 2014(7) Seller

Not disclosed (Note 4)(8) Acquisition funds

Borrowings and own funds(9) Method of payment

Full payment at time of delivery(Note 1) Current name of the property to be acquired is “Atagoyama Tower.” NAF plans to rename the property as stated above
without delay after it has acquired the property.
(Note 2) “Acquisition price” denotes the trading value (exclusive of miscellaneous expenses for acquisition, fixed property taxes,
urban planning taxes, consumption taxes and local consumption taxes) specified in the real estate sales contract for theproperty to be acquired.
(Note 3) “Appraised value” is based on the amount mentioned in the real estate appraisal report (date of value appraisal on January
31, 2014) which Japan Real Estate Institute prepared for the property to be acquired.
(Note 4) Not disclosed by seller’s request.

1

3. Description of Property to be Acquired(1) Outline of the property to be acquired
Name of property to be acquired
Type of property to be acquired
Appraisal company
Appraised value (Note 1)
Date of value appraisal (Note 1)
Location Residence indication
Building-to-land ratio (Note 2)
Floor area ratio (Note 2)

Park Cube Atagoyama Tower
Real estate
Japan Real Estate Institute¥8,690,000 thousand
January 31, 2014
17-7, Nishi Shinbashi 3-chome, Minato-ku, Tokyo
80%
600%

Land

ZoningCommercial district

Site area (Note 3)
Ownership form
Completion date (Note 4)

1,062.18m2
Proprietorship
January 10, 2007

Structure / number of stories (Note 5)

Flat-roof reinforced concrete and steel structure / 31 stories
with 1 underground story

Ownership form
Rentable units
Rentable area
Existence of security interests

Apartment building
12,579.90m2
Proprietorship
165
8,389.91m2
None

Special affairs (Note 6)

None

Special features of the property

The property is approximately a 6-minute walk from
Onarimon Station on the Toei Subway Mita Line. Twostations and two lines, including Kamiyacho Station on theTokyo Metro Hibiya Line are available for use. It has very
good access to central Tokyo, as it is approximately a
6-minute ride to Otemachi Station from Onarimon Station.
Surrounding the property are facilities convenient for living
purposes, such as The Jikei University Hospitals andtenants can benefit from these advantages. Demand is
expected primarily from single or small sized households,
etc. who place importance on transportation convenienceto central Tokyo.

Building

Uses (Note 5)
Gross floor area (Note 5)

Details of tenants(Note 7)

Total number of tenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy Rate
Deposit /Security deposit
Total rental revenues(Note 1)
(Note 2)

(Note 3)(Note 4)

1
165
155
2
8,389.91m
7,824.77m2
93.3%¥51,527 thousand
Please refer to <Attached Document 1> Summary of theappraisal report on the amount of the property to beacquired.

“Appraised value” and “Date of value appraisal” are based on the amount mentioned in the real estate appraisal reportwhich Japan Real Estate Institute prepared for the property to be acquired.
“Building-to-land ratio” is the ratio of the building’s construction area to the site area as stipulated in Article 53 of the
Building Standards Act. The figures are indicated as stipulated by city planning in accordance with zoning, etc. “Floor area
ratio” is the ratio of the building’s gross floor area to the site area as stipulated in Article 52 of the Building Standards Act.
The figures are indicated as stipulated by city planning in accordance with zoning, etc.
“Site area” of the “Land” item denotes the land area as entered in the register.
“Completion date” of the “Building” item denotes the date as entered in the register.

2

(Note 5) “Structure / number of stories,” “Uses,” and “Gross floor area” are stated based on the entries in the register.
(Note 6) “Special affairs” include issues considered to be important by NAF as of today, with consideration of influence on the rights,
uses, and appraisal values as well as profits of the property that NAF plans to acquire.
(Note 7) Description of the “Details of tenants” column:(i) “Total number of tenants” is denoted as “1” where a master lease contract (blanket lease contract) has beenconcluded with the master lease company. As to the property to be acquired, NAF plans to conclude a master lease
contract with the master lease company, which is Mitsui Fudosan Housing Lease Co., Ltd. The above “Total number oftenants” means the total number of tenants after conclusion of the said master lease contract.
(ii) “Rentable units” denotes the number of rentable units in the property to be acquired.
(iii) Figures for “Rented units,” “Rented area,” and “Deposit / Security deposit” are based on information provided by theseller, valid as of December 31, 2013.
(iv) “Rentable area” denotes the total rentable area of the building of the property to be acquired.
(v) “Occupancy rate” is the ratio of “Rented area” to “Rentable area” and is rounded to one decimal place.

(2) Outline of investigations into the state of the building, etc.
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Consigned investigating company

Investigations
into the state ofbuilding

Earthquake risk
diagnosis

Investigation report date
Urgent repair cost
Short-term repair cost

February 10, 2014－－

Repair and renewal costs expected
to be necessary within 12 years¥144,116 thousand

Replacement value¥2,449,700 thousand

Consigned investigating company

Sumitomo Mitsui Construction Co., Ltd.

Investigation report dateFebruary 10, 2014

PML value (Note)

3.7%(Note) The report on earthquake risk diagnosis only states the views of the consigned investigating company and does not provide
any guarantee for its contents. PML (Probable Maximum Loss) represents the rate of probable maximum loss to be caused
by earthquakes. In this case, it means the extent of damage to be caused by one of the biggest earthquakes anticipated tohappen within the expected duration of service (the biggest earthquake which happens once every 475 years = 10% chanceof a big earthquake happening once every 50 years) represented by the rate (%) of the estimated cost of restoration from thedamage to the replacement cost.

Profile of third party investigative body
Name
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Address
2-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Representative
Ken Kamikouchi, President and Chief Executive Officer
Description of principal
operations

Research, study, provision of information, assessment, consulting, holding of
seminars, publishing, provision of training, etc. on security, disaster prevention,
sanitation, environment, product safety and information management, etc.

CapitalRelationship with NAF
or investment trust
management company¥100 million

Name
Address
Representative

Sumitomo Mitsui Construction Co., Ltd.
1-6, Tsukuda 2-chome, Chuo-ku, Tokyo
Yoshiyuki Norihisa, President and Chief Executive Officer

Description of principal
operations

Design and construction of civil engineering, building, prestressed concrete workand related operations and others.

CapitalRelationship with NAF
or investment trust
management company¥12,003 million

None

None

3

4. Outline of Seller
Not disclosed by seller’s request. Furthermore, there are no capital, personal or business relationships toreport between the seller and NAF, the investment trust management company, or any related parties or
associated companies of NAF and the investment trust management company. Also, the seller and any relatedparties or associated companies of the seller do not fall under the category of related parties of NAF or theinvestment trust management company.
5. Transactions with Related Parties and the Like
The property to be acquired is not an acquisition from a party classified as having a relationship of special
interest with NAF or the investment trust management company. Since Mitsui Fudosan Housing Lease Co.,
Ltd., which will be the master lease company and the property management company of the said property falls
under “Related parties and the like” (Note), in accordance with NAF’s self-established rules on asset
management relevant to transactions with related parties and the like, the conclusion of a master lease contract
and a property management contract will be carried out through deliberation and approval by the compliancecommittee and deliberation and decision by the investment committee of the investment trust managementcompany before completion of the acquisition of the said property.
(Note) “Related parties and the like” means related parties and the like of an investment trust management company which has
concluded an asset management contract with NAF, as determined in the Order for Enforcement of the Act on Investment
Trust and Investment Corporation, Article 123.

6. Situation of the Acquirer of the Property
The property to be acquired is not an acquisition from a party classified as having a relationship of special
interest with NAF or the investment trust management company, therefore the situation of the acquirer is notstated.
7. Earthquake Resistance Matters
The property to be acquired has been approved by the Minister of Land, Infrastructure, Transport and Tourism
under Article 68-26, paragraph 1 of the Building Standards Act.
In addition NAF always performs earthquake risk diagnosis by reviewing drawings using structural design
drawings, structural calculation sheets, etc., as well as on on-site inspections and the like during the course ofdue diligence upon acquisition of properties, from perspectives that are different to building certification
investigations performed by an inspection and certification agency.
8. Outline of Brokerage
Not applicable.
9. Outlook for Management after Acquisition of the Property
There will be no impact on the financial results for the period ending February 28, 2014 (16th period:
September 1, 2013 to February 28, 2014) since acquisition of the property is planned for March 7, 2014.
The outlook on NAF’s financial results for the period ending August 31, 2014 (17th period: March 1, 2014 toAugust 31, 2014) will be disclosed when financial results for the period ending February 28, 2014 areannounced (the announcement is scheduled for mid-April, 2014) with due consideration on the status ofoperations on overall portfolio.
Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (KabutoClub) and the press club of the Ministry of Land, Infrastructure, Transport and Tourism, and to the pressclub for construction publications of the Ministry of Land, Infrastructure, Transport and Tourism.
NAF website: http://www.naf-r.jp/english/index.html

Please note that this English translation of the Japanese original document is provided solely for information
purposes. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail.
<Attached Documents>
1. Summary of the appraisal report on the amount of the property to be acquired
2. Portfolio list after the acquisition of the property is completed (on an acquisition price basis)
3. Photos of exterior and entrance, and map of the property to be acquired4

<Attached Document 1> Summary of the appraisal report on the amount of property to be acquired(unit: Thousands of yen)Appraised value (specified value)
Assessment item(a) Unit rental revenues, including common area fees(b) Utilities revenues

Details
496,6910(c) Parking lot revenues(d) Other revenues
Operatingrevenues

8,690,000

25,272
20,885

Revenues from key money, etc.

4,464

Revenues from renewal fees
Other revenues

16,231190(1): (a)+(b)+(c)+(d)542,848(e) Total loss from vacancies, etc.
(f) Loss on bad debts

25,711
0(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

517,137
26,208(h) Utilities expense

7,000(i) Repair expense

5,392(j) Property management fees

Operatingexpenses (k) Tenant soliciting fee, etc.
(l) Taxes and public dues

12,427(m) Property insurance fee

413(n) Other expenses

650

24,93525,817(3) Operating expenses [(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2)-(3)](o) Earnings from temporary deposit

102,842414,295
1,121(p) Capital expenditures

8,880(5) Net income [(4)+(o)-(p)]406,536(6) Cap Rate
Value of earnings calculated by the direct capitalization method [(5)÷(6)]8,840,000

Value calculated by discounted cash flow method

8,540,000

4.6%

Discount rate

4.4%

Terminal cap rate

4.8%

Cost method value
Total value of land and building

5,610,000
5,610,000

Land value

3,930,000

Building value

1,680,000
0Adjustment

NAF requested a real estate appraisal by Japan Real Estate Institute for the property to be acquired, based on the Act on Real Estate Appraisal(1963 Act No. 152, including later amendments) and real estate appraisal standards. The above figures are a summary of the prepared realestate appraisal report. The appraisal valuation is the judgment and opinion of the appraiser at a fixed point in time, with no guarantees as to thevalidity or accuracy of the report, nor the possibility of transactions at the appraised value.

5

<Attached Document 2>
Portfolio list after the purchase of the property is completed (on an acquisition price basis)
1. Rental Apartments
Name

Location

Acquisition
Portfolio Share
price
(%)
(millions of yen)
(Note 2)
(Note 1)

Okawabata Apartment Communities

Chuo-ku, Tokyo

29,696

10.4

Park Axis Gakugei Daigaku

Setagaya-ku, Tokyo

1,760

0.6

Park Axis Shibuya Jinnan

Shibuya-ku, Tokyo

3,230

1.1

Park Axis Aoyama Kotto DoriMinato-ku, Tokyo

1,730

0.6

Park Axis Kagurazaka Stage

Shinjuku-ku, Tokyo

1,400

0.5

Park Axis Shirokanedai

Minato-ku, Tokyo

5,140

1.8

Park Axis Bunkyo Stage

Bunkyo-ku, Tokyo

4,440

1.6

Park Axis Tsukishima

Chuo-ku, Tokyo

930

0.3

Park Axis Otsuka

Toshima-ku, Tokyo

1,655

0.6

Park Axis Minami Azabu

Minato-ku, Tokyo

3,939

1.4

Park Axis Shibuya

Shibuya-ku, Tokyo

1,282

0.5

Park Axis Nihonbashi Stage

Chuo-ku, Tokyo

7,557

2.7

Park Axis Hamamatsucho

Minato-ku, Tokyo

2,025

0.7

Park Axis Hongo No Mori

Bunkyo-ku, Tokyo

2,910

1.0

Park Axis Tameike Sanno

Minato-ku, Tokyo

2,860

1.0

Park Axis Roppongi Hinokicho Koen

Minato-ku, Tokyo

2,170

0.8

Park Axis Ochanomizu Stage

Bunkyo-ku, Tokyo

9,710

3.4

Park Axis Okachimachi

Taito-ku, Tokyo

1,070

0.4

Park Cube Hongo

Bunkyo-ku, Tokyo

1,760

0.6

Park Cube Kanda

Chiyoda-ku, Tokyo

2,454

0.9

Park Cube Ichigaya

Shinjuku-ku, Tokyo

1,949

0.7

Park Cube Asakusa Tawaramachi

Taito-ku, Tokyo

2,508

0.9

Park Cube Ueno

Taito-ku, Tokyo

2,233

0.8

Park Cube Ikebukuro Kanamecho

Toshima-ku, Tokyo

1,608

0.6

Park Axis Meguro Honcho

Meguro-ku, Tokyo

1,810

0.6

Park Axis Shin Itabashi

Itabashi-ku, Tokyo

3,430

1.2

Park Axis Akihabara

Chiyoda-ku, Tokyo

1,200

0.4

Park Axis Toyocho

Koto-ku, Tokyo

3,950

1.4

Park Axis Takinogawa

Kita-ku, Tokyo

1,820

0.6

Park Axis Asakusabashi

Taito-ku, Tokyo

2,717

1.0

Park Axis Nihonbashi Hamacho

Chuo-ku, Tokyo

5,540

1.9

Park Cube Yoyogi Tomigaya

Shibuya-ku, Tokyo

1,975

0.7

Park Axis Monzen Nakacho

Koto-ku, Tokyo

1,700

0.6

Park Cube Itabashi Honcho

Itabashi-ku, Tokyo

4,170

1.5

Park Cube Gakugei Daigaku

Meguro-ku, Tokyo

910

0.3

Park Cube Oimachi

Shinagawa-ku, Tokyo

1,440

0.5

Park Axis Nishigahara

Kita-ku, Tokyo

840

0.3

Park Axis Kinshicho

Sumida-ku, Tokyo

1,448

0.5

Park Axis Tatsumi Stage

Koto-ku, Tokyo

7,464

2.6

Park Axis Kameido

Koto-ku, Tokyo

2,359

0.8

Park Axis Honancho

Nakano-ku, Tokyo

745

0.3

6

Name

Location

Acquisition
Portfolio Share
price
(%)
(millions of yen)
(Note 2)
(Note 1)

Park Axis Itabashi

Kita-ku, Tokyo

1,448

0.5

Park Axis Oshiage

Sumida-ku, Tokyo

1,193

0.4

Park Axis Takadanobaba

Toshima-ku, Tokyo

1,222

0.4

Park Axis Toyosu

Koto-ku, Tokyo

14,3005.0Park Axis Hatchobori

Chuo-ku, Tokyo

1,760

0.6

Park Axis Itabashi Honcho

Itabashi-ku, Tokyo

987

0.3

Park Axis Sumiyoshi

Sumida-ku, Tokyo

1,006

0.4

Park Cube Yotsuya Sanchome

Shinjuku-ku, Tokyo

2,749

1.0

Park Cube Hatchobori

Chuo-ku, Tokyo

4,200

1.5

Park Axis Kamata Ichibankan

Ota-ku, Tokyo

1,069

0.4

Park Axis Taito Negishi

Taito-ku, Tokyo

672

0.2

Park Axis Komagome

Toshima-ku, Tokyo

1,389

0.5

Park Axis Itabashi Honcho
Nibankan

Itabashi-ku, Tokyo

1,859

0.7

Shibaura Island Air Tower

Minato-ku, Tokyo

7,905

2.8

Park Cube Higashi Shinagawa

Shinagawa-ku, Tokyo

6,060

2.1

Park Cube Sasazuka

Shibuya-ku, Tokyo

2,200

0.8

Park Axis Higashi Jujo

Kita-ku, Tokyo

1,700

0.6

Park Cube Heiwadai

Nerima-ku, Tokyo

1,204

0.4

Park Cube Meguro Tower

Meguro-ku, Tokyo

9,000

3.2

Park Cube Nihonbashi Suitengu

Chuo-ku, Tokyo

2,711

1.0

Park Cube Ginza East

Chuo-ku, Tokyo

2,269

0.8

Park Cube KayabachoChuo-ku, Tokyo

1,105

0.4

Park Cube Honjo Azumabashi

Sumida-ku, Tokyo

1,252

0.4

Park Axis Kiyosumi Shirakawa

Koto-ku, Tokyo

696

0.2

Park Axis Asakusabashi Nichome

Taito-ku, Tokyo

1,079

0.4

Park Axis Nishi Sugamo

Kita-ku, Tokyo

1,439

0.5

Park Axis Ueno

Taito-ku, Tokyo

1,389

0.5

Park Axis Akihabara East

Taito-ku, Tokyo

1,369

0.5

Park Axis KayabachoChuo-ku, Tokyo

1,809

0.6

Park Axis Kinshicho Shinsui Koen

Sumida-ku, Tokyo

1,369

0.5

Park Cube Kasuga Andozaka

Bunkyo-ku, Tokyo

2,670

0.9

Park Cube Kameido

Koto-ku, Tokyo

3,020

1.1

Park Axis Shin Okachimachi East

Taito-ku, Tokyo

1,299

0.5

Park Axis Nihonbashi Honcho

Chuo-ku, Tokyo

1,469

0.5

Park Cube Nishigahara Stage

Kita-ku, Tokyo

4,110

1.4

Park Cube Atagoyama Tower

Minato-ku, Tokyo

8,650

3.0

239,164

84.1

Hachioji-shi, Tokyo

1,130

0.4

Park Axis Nishi Funabashi

Funabashi-shi, Chiba

1,020

0.4

Park Axis Yokohama Idogaya

Minami-ku, Yokohama-shi,
Kanagawa

1,419

0.5

Park Axis Chiba Shinmachi

Chuo-ku, Chiba-shi, Chiba

1,679

0.6

Park Axis Chiba

Chuo-ku, Chiba-shi, Chiba

970

0.3

Park Cube Kita Matsudo

Matsudo-shi, Chiba

1,200

0.4

Park Cube Musashi Kosugi

Nakahara-ku,
Kawasaki-shi, Kanagawa

2,250

0.8

Park Axis Yokohama Tanmachi
Koen

Kanagawa-ku,
Yokohama-shi, Kanagawa

1,119

0.4

Tokyo 23 wards total
Park Cube Keio Hachioji II

7

Name

Park Axis Yokohama Yamashitacho

Acquisition
Portfolio Share
price
(%)
(millions of yen)
(Note 2)
(Note 1)

LocationNaka-ku, Yokohama-shi,
Kanagawa

Greater Tokyo Total (Note 3)
Park Axis Meieki Minami
Park Axis Marunouchi
Park Axis Ropponmatsu
Park Axis Hakataeki Minami
Park Axis Naka Gofukumachi
Park Axis Shirakabe
Park Axis Sendai
Park Axis Hakata Minoshima
Park Axis Takamiya Higashi
Park Axis Sapporo Shokubutsuen
MaePark Axis Shin Sapporo

1,539

0.5

12,326

4.3

Nakamura-ku, Nagoya-shi,
Aichi

2,440

0.9

Naka-ku, Nagoya-shi, Aichi

1,920

0.7

1,515

0.5

1,890

0.7

742

0.3

1,547

0.5

2,320

0.8

960

0.3

605

0.2

1,650

0.6

827

0.3

Chuo-ku, Fukuoka-shi,
Fukuoka
Hakata-ku, Fukuoka-shi,
Fukuoka
Hakata-ku, Fukuoka-shi,
Fukuoka
Higashi-ku, Nagoya-shi,
Aichi
Wakabayashi-ku,
Sendai-shi, Miyagi
Hakata-ku, Fukuoka-shi,
FukuokaMinami-ku, Fukuoka-shi,
Fukuoka
Chuo-ku, Sapporo-shi,
Hokkaido
Atsubetsu-ku, Sapporo-shi,
Hokkaido

Park Axis Esaka Hiroshibacho

Suita-shi, Osaka

2,369

0.8

Park Axis Utsubo Koen

Nishi-ku, Osaka-shi, Osaka

2,399

0.8

Park Cube Kitahama

Chuo-ku, Osaka-shi,
Osaka

1,970

0.7

Other Major Cities Total (Note 4)

23,154

8.1

Rental Apartments Total

274,644

96.5

Location

Acquisition price(millions of yen)
(Note 1)

Portfolio Share(%)(Note 2)Ashiya-shi, Hyogo

928

0.3

991

0.3

916

0.3

374

0.1

2. Other Accommodation Assets
Name
Dormy Ashiya
Kawaijuku Kyoto Gakushin Ryo
Sundai Horikawa Ryo

Nakagyo-ku, Kyoto-shi,
Kyoto
Kamigyo-ku, Kyoto-shi,
Kyoto

Dormitory Rakuhoku

Kita-ku, Kyoto-shi, Kyoto

Rikkyo University International
Dormitory (RUID) Shiki

Shiki-shi, Saitama

1,478

0.5

Dormy Naka Itabashi

Itabashi-ku, Tokyo

1,041

0.4

Itabashi-ku, Tokyo

1,249

0.4

1,152

0.4

540

0.2

1,160

0.4

9,829

3.5

284,473

100.0

Philosophia Nishidai
Dormy Musashi Kosugi
Artis Sendai Kakyoin
Artis Sendai Kimachi DoriNakahara-ku,
Kawasaki-shi,
Kanagawa
Aoba-ku, Sendai-shi,
MiyagiAoba-ku, Sendai-shi,
MiyagiOther Accommodation Assets Total

Grand Total(Note 1)“Acquisition Price” refers to the sale price (exclusive of miscellaneous expenses for acquisition, fixed property tax, urban
planning tax, consumption tax and local consumption tax) of the property acquired.
(Note 2) “Portfolio Share” means the percentage of the acquisition price of the respective property acquired compared with the total
amount, rounded to the nearest one decimal place.
(Note 3) “Greater Tokyo” refers to four prefectures, Tokyo (excluding Tokyo 23 wards), Kanagawa, Saitama, and Chiba.
(Note 4) “Other Major Cities” indicates major cities across Japan and their surrounding areas, excluding the Tokyo area.

8

<Attached Document 3> Photos of exterior and entrance, and map of the property to be acquired.

9

The Jikei University
Hospitals
Kamiyacho
StationThe Jikei
University

Onarimon JuniorHigh School
Onarimon
Elementary
SchoolAtago Police Station

Onarimon Station

Shiba Park10