November 7, 2012
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
Yuji Yokoyama(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 ofDomestic Real Estate Trust Beneficiary Interest
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on and completed the acquisitionof real estate trust beneficiary interest 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 the entire
portfolio, and for the diversification and further enhancement of the investment portfolio in Tokyo’s 23 wards.

2. Overview of Acquisition(1) Name of property acquired (Note 1)

Park Cube Heiwadai(2) Type of property acquired

Trust beneficiary interest(3) Acquisition price (Note 2)¥1,204,000 thousand(4) Appraised value (Note 3)¥1,220,000 thousand(5) Date of conclusion of sales contract

October 29, 2012

(6) Date of handover

October 29, 2012(7) Seller

GK Tokyo Gold

(8) Acquisition funds

Own funds(9) Method of payment

Full payment at time of delivery(Note 1) The current name of the property acquired is “Heiwadai Duplex R’s.” NAF plans to rename the property as statedabove 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 trust beneficiaryinterest sales contract for the property acquired.
(Note 3) “Appraised value” is based on the amount mentioned in the real estate appraisal report (date of value appraisal inAugust 31, 2012) which Daiwa Real Estate Appraisal Co., Ltd. prepared for the property acquired.

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

ZoningSite area (Note 2)
Ownership form
Completion date (Note 3)
Structure / number of stories (Note 4)

Building

Uses (Note4)
Gross floor area (Note 4)

Ownership form
Rentable units
Rentable area
Existence of security interests
Special affairs (Note 5)

Special features of the property

Details of tenants(Note 6)

Total number of tenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Total rental revenues

Park Cube Heiwadai
Trust beneficiary interest
Sumitomo Mitsui Trust Bank, Limited.
From September 26, 2007 to October 31, 2022
Daiwa Real Estate Appraisal Corporation¥1,220,000 thousand
August 31, 201223-24, Heiwadai 3-chome, Nerima-ku, Tokyo
60%
200%
Category 1 District Exclusively for Low Rise Residential
Buildings
1,550.39m2
Proprietorship
June 29, 2007
Flat-roofed reinforced concrete structure / 4 stories
Apartment building/ warehouse/ garbage depot
2,827.67m2
Proprietorship
34
22,656.00m
None
None
The property is approximately a nine-minute walk from
Heiwadai Station with access to the two train lines ofTokyo Metro Yurakucho Line and Fukutoshin Line. It hasvery good access to major city centers, as it is anapproximately 10-minute ride to Ikebukuro Station,
approximately 25-minute ride to Shibuya Station andapproximately 35-minute ride to Otemachi Station with a
train line transfer.
The property has good living convenience withconvenience stores and medical institutions in theneighborhood, in addition to a supermarket in front of thenearest station.
Demand is expected mainly from families who commute tocentral Tokyo.
1
34
34
2

2,656.00m
22,656.00m
100.0%¥16,569 thousand
Please refer to <Attached Document 1> Summary of theappraisal report on the amount of the property acquired.

(Note 1) “Appraised value” and “Date of value appraisal” are based on the amount mentioned in the real estate appraisal
report which Daiwa Real Estate Appraisal Corporation prepared for the property acquired.
(Note 2) “Site area” of the “Land” item denotes the land area as entered in the register.
(Note 3) “Completion date” of the “Building” item denotes the date as entered in the register.
(Note 4) “Structure / number of stories,” “Uses,” and “Gross floor area” are stated based on the entries in the register.

(Note 5) “Special affairs” denotes matters which NAF recognizes as important as of today, taking into consideration theireffects on title-related matters, use, appraised value, profitability, etc. of the property acquired.
(Note 6) 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 a master lease company. As to the property acquired, NAF has concluded a master lease
contract with the master lease company, that is, Mitsui Fudosan Housing Lease Co., Ltd. The above “Total
number of tenants” 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 acquired.
(iii) Figures for “Rented units,” “Rented area,” and “Deposit” are based on information provided by the seller, valid
as of September 30, 2012.
(iv) “Rentable area” denotes the total rentable area of the building of the property 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.

Investigations
into the state ofbuilding

Earthquake risk
diagnosis

Consigned investigating company

Sumitomo Mitsui Construction Co., Ltd.

Investigation date
Urgent repair cost
Short-term repair cost

October 9, 2012－
¥461 thousand

Repair and renewal costs expected
to be necessary within 12 years¥39,477 thousand

Replacement value¥723,406 thousand

PML value (Note)

6.5%(Note) The PML value is based on a report on earthquake risk diagnosis made by Sumitomo Mitsui Construction Co., Ltd.
However, the report on earthquake risk diagnosis only states the views of the consigned investigating company anddoes not provide any guarantee for its contents. PML (Probable Maximum Loss) represents the rate of probablemaximum loss to be caused by earthquakes. In this case, it means the extent of damage to be caused by one of thebiggest earthquakes anticipated to happen within the expected duration of service (the biggest earthquake whichhappens once every 475 years = 10% chance of a big earthquake happening once every 50 years) represented by
the rate (%) of the estimated cost of restoration from the damage to the replacement cost.

Profile of third party investigative body
Name
Address
Representative
Description of principal
operations

Sumitomo Mitsui Construction Co., Ltd.
1-6, Tsukuda 2-chome, Chuo-ku, Tokyo
Yoshiyuki Norihisa, President and Chief Executive Officer
Design and construction of civil engineering, building, prestressed concrete workand related operations, and others

CapitalRelationship with NAF
and Investment TrustManagement Company¥12,003 million
None

4. Outline of Seller
Name
Address

Outline of managing
partner

GK Tokyo Goldc/o Tokyo Kyodo Accounting Office
1-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
Name
Mexico City Goldc/o Tokyo Kyodo Accounting Office
Address
1-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
Representative

Operational executor: Masato KaidaDescription of principal
operations

1. Acquisition, ownership, disposition, lease and management of real estate
2. Acquisition, ownership and disposition of trust beneficiary interest in real estate
3. All business incidental to the above

Date of establishment

July 6, 2012
Capital¥1,300 thousand
Relationships between NAF or Investment Trust Management Company and the fund or the managing partner
There are no direct or indirect investments in the seller either from NAF, theInvestment Trust Management Company, nor any related parties or associatedRelationship with NAF
companies of NAF and the Investment Trust Management Company. Also, there
and Investment Trust
are no capital, personal or business relationships to report between the seller’sManagement
investors (including original investors) and NAF, the Investment Trust Management
Company
Company, and any related parties or associated companies of NAF and theInvestment Trust Management Company.
There are no capital, personal or business relationships to report between the
Relationship between
fund’s managing partner and NAF nor the Investment Trust Management
NAF or theCompany. Furthermore, there are no capital, personal or business relationships toInvestment
report between any related parties or associated companies of the fund’s
Management
managing partner and NAF, the Investment Trust Management Company, and any
Company and therelated parties or associated companies of NAF and the Investment Trust
managing partner
Management Company.
5. Transactions with Related Parties and the Like
The property acquired has not been acquired 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 became the master lease company and property management company of the acquired property
as of today, falls under “Related parties and the like” (Note) according to NAF’s self-established rules on asset
management relevant to transactions with related parties and the like, the master lease contract and property
management contract have been carried out through deliberation and approval by the compliance committeeof the Investment Trust Management Company and the investment committee.

(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
Not applicable.
7. Earthquake Resistance Matters
NAF outsourced the inspection and verification of the details of earthquake-resistant structures including
structural calculation sheets and, for the corresponding building, obtained confirmation that, no falsification issuspected in the structural calculation and structural drawings with respect to their structure, which ensures
earthquake resistance as per the Building Standards Act.
In addition NAF always performs earthquake risk diagnosis based on drawing reviews using structural design
drawings, structural calculation sheets, etc., as well as on on-site inspection 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(1) Outline of broker
Trade nameHead office address
Representative

Nomura Real Estate Urban Net Co., Ltd.
26-2, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo
Nagoyoshi Kanehata, President

Housing transaction business, commercial real estate transaction business,
newly built properties consignment sales business, condominium renovation
business, insurance agency business and real estate information website
operation business
Capital¥1,000 million
Date of establishment
November 6, 2000
Relationship with NAF or Investment Trust Management Company
There are no capital relationships to report between NAF or the Investment
Trust Management Company, and the broker. Also, there are no capital
relationships to report between any related parties or associated companies ofCapital relationships
NAF or the Investment Trust Management Company, and any related parties or
associated companies of the broker.
There are no personal relationships to report between NAF or the Investment
Trust Management Company, and the broker. Also, there are no personal
Personal relationships relationships to report between any related parties or associated companies of
NAF or the Investment Trust Management Company, and any related parties or
associated companies of the broker.
There are no business relationships to report between NAF or the Investment
Trust Management Company, and the broker. Also, there are no businessBusiness relationships relationships to report between any related parties or associated companies of
NAF or the Investment Trust Management Company, and any related parties or
associated companies of the broker.
The broker does not fall under the category of related parties of NAF or the
Applicability to related Investment Trust Management Company. Also, the related parties andparties
associated companies of the broker do not fall under the category of relatedparties of NAF or the Investment Trust Management Company.
Description of principle
operations(2) Amount of brokerage fee
Not disclosed by request of the broker.
9. Outlook for Management of the Properties after Acquisition
The impact of the acquisition on NAF’s results for the period ending February 2013 (September 1, 2012 toFebruary 28, 2013) will be minor, and there will be no change to the financial results forecast of the period.

* The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (KabutoClub) and the Ministry of Land, Infrastructure, Transport, and Tourism and to the press club of theconstruction trade newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.
* NAF website: http://www.naf-r.jp/english/index.html

Please note that this English language notice is a translation of the Japanese language notice dated October
29, 2012 and was prepared solely for the convenience of, and reference by, overseas investors. NAF makes
no warranties as to its accuracy or completeness.

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

1,220,000
Details(b) Utilities revenues

0(c) Parking lot revenues

3,492(d) Other revenues

3,213

Operatingrevenues

Operatingexpenses

85,672

Revenues from key money, etc.

1,356

Revenues from renewal fees

1,017

Other revenues

840(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies, etc.

92,378(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)]087,576(g) Maintenance expense

3,181(h) Utilities expense

1,349(i) Repair expense

2,606(j) Property management fees

2,982(k) Tenant soliciting fee, etc.

2,108(l) Taxes and public dues

5,366(m) Property insurance fee

4,802

298

(n) Other expenses

1,253(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2)-(3)](o) Earnings from temporary deposit(p) Capital expenditures

19,14668,4292762,086(5) Net income [(4)+(o)-(p)]66,619(6) Cap rate

5.4%

Value of earnings calculated by the direct capitalization method [(5)+(6)]1,230,000

Value calculated by discounted cash flow method

1,220,000

Discount rate

5.2%

Terminal cap rate

5.6%

Cost method value

1,240,000

Total value of land and building
Land value
Building value
Adjustment

1,244,051
616,918
627,133
0

NAF requested a real estate appraisal by Daiwa Real Estate Appraisal Co., Ltd., for the property acquired, based on the Act on Real EstateAppraisal (1963 Act No. 152, including later amendments) and real estate appraisal standards. The above figures are a summary of the
prepared real estate appraisal report. The appraisal valuation is the judgment and opinion of the appraiser at a fixed point in time, with noguarantees as to the validity or accuracy of the report, nor the possibility of transactions at the appraised value.
Yen amounts are rounded down to the nearest thousand yen.

<Attached Document 2> Portfolio list after the acquisition 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

12.7

Park Axis Gakugei Daigaku

Setagaya-ku, Tokyo

1,760

0.8

Park Axis Shibuya Jinnan

Shibuya-ku, Tokyo

3,230

1.4

Park Axis Aoyama Kotto-dori

Minato-ku, Tokyo

1,730

0.7

Park Axis Kagurazaka Stage

Shinjuku-ku, Tokyo

1,400

0.6

Park Axis Shirokanedai

Minato-ku, Tokyo

5,140

2.2

Park Axis Bunkyo Stage

Bukyo-ku, Tokyo

4,440

1.9

Park Axis Tsukishima

Chuo-ku, Tokyo

930

0.4

Park Axis Otsuka

Toshima-ku, Tokyo

1,655

0.7

Park Axis Minami Azabu

Minato-ku, Tokyo

3,939

1.7

Park Axis Shibuya

Shibuya-ku, Tokyo

1,282

0.6

Park Axis Nihonbashi Stage

Chuo-ku, Tokyo

7,557

3.2

Park Axis Hamamatsucho

Minato-ku, Tokyo

2,025

0.9

Park Axis Hongo No Mori

Bukyo-ku, Tokyo

2,910

1.2

Park Axis Tameike Sanno

Minato-ku, Tokyo

2,860

1.2

Park Axis Roppongi Hinokicho Park

Minato-ku, Tokyo

2,170

0.9

Park Axis Ochanomizu Stage

Bukyo-ku, Tokyo

9,710

4.2

Park Axis Okachimachi

Taito-ku, Tokyo

1,070

0.5

Park Cube Hongo

Bukyo-ku, Tokyo

1,760

0.8

Park Cube Kanda

Chiyoda-ku, Tokyo

2,454

1.1

Park Cube Ichigaya

Shinjuku-ku, Tokyo

1,949

0.8

Park Cube Asakusa Tawaramachi

Taito-ku, Tokyo

2,508

1.1

Park Cube Ueno

Taito-ku, Tokyo

2,233

1.0

Park Cube Ikebukuro Kanamecho

Toshima-ku, Tokyo

1,608

0.7

Park Axis Meguro Honcho

Meguro-ku, Tokyo

1,810

0.8

Park Axis Shin Itabashi

Itabashi-ku, Tokyo

3,430

1.5

Park Axis Akihabara

Chiyoda-ku, Tokyo

1,200

0.5

Park Axis Toyocho

Koto-ku, Tokyo

3,950

1.7

Park Axis Takinogawa

Kita-ku, Tokyo

1,820

0.8

Park Axis Asakusabashi

Taito-ku, Tokyo

2,717

1.2

Park Axis Nihonbashi Hamacho

Chuo-ku, Tokyo

5,540

2.4

Park Cube Yoyogi Tomigaya

Shibuya-ku, Tokyo

1,975

0.8

Park Axis Monzen Nakacho

Koto-ku, Tokyo

1,700

0.7

Park Cube Itabashi Honcho

Itabashi-ku, Tokyo

4,170

1.8

Park Cube Gakugei Daigaku

Meguro-ku, Tokyo

Park Cube Oimachi

Shinagawa-ku, Tokyo

Park Axis Nishigahara

Kita-ku, Tokyo

Park Axis Kinshicho

Sumida-ku, Tokyo

910

0.4

1,440

0.6

840

0.4

1,448

0.6

Park Axis Tatsumi Stage

Koto-ku, Tokyo

7,464

3.2

Park Axis Kameido

Koto-ku, Tokyo

2,359

1.0

Park Axis Honancho

Nakano-ku, Tokyo

745

0.3

Park Axis Itabashi

Kita-ku, Tokyo

1,448

0.6

Name

Location

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

Park Axis Oshiage

Sumida-ku, Tokyo

1,193

0.5

Park Axis Takadanobaba

Toshima-ku, Tokyo

1,222

0.5

Park Axis Toyosu

Koto-ku, Tokyo

14,300

6.1

Park Axis Hatchobori

Chuo-ku, Tokyo

1,760

0.8

Park Axis Itabashi Honcho

Itabashi-ku, Tokyo

987

0.4

Park Axis Sumiyoshi

Sumida-ku, Tokyo

1,006

0.4

Park Cube Yotsuya Sanchome

Shinjuku-ku, Tokyo

2,749

1.2

Park Cube Hatchobori

Chuo-ku, Tokyo

4,200

1.8

Park Axis Kamata Ichibankan

Ota-ku, Tokyo

1,069

0.5

Park Axis Taito Negishi

Taito-ku, Tokyo

672

0.3

Park Axis Komagome

Toshima-ku, Tokyo

1,389

0.6

Park Axis Itabashi Honcho
Nibankan

Itabashi-ku, Tokyo

1,859

0.8

Shibaura Island Air Tower

Minato-ku, Tokyo

7,905

3.4

Park Cube Higashi Shinagawa

Shinagawa-ku, Tokyo

6,060

2.6

Park Cube Sasazuka

Shibuya-ku, Tokyo

2,200

0.9

Park Axis Higashi Jujo

Kita-ku, Tokyo

1,700

0.7

Park Cube Heiwadai

Nerima-ku, Tokyo

1,204

0.5

Tokyo 23 wards total

192,459

82.6

Park Cube Keio Hachioji II

Hachioji-shi, Tokyo

1,130

0.5

Park Axis Nishi Funabashi

Funabashi-shi, Chiba

1,020

0.4

Park Axis Yokohama Idogaya

Minami-ku, Yokohama-shi,
Kanagawa

1,419

0.6

Park Axis Chiba Shinmachi

Chuo-ku, Chiba-shi, Chiba

1,679

0.7

Park Axis Chiba

Chuo-ku, Chiba-shi, Chiba

970

0.4

Park Cube Kita Matsudo

Matsudo-shi, Chiba

1,200

0.5

Park Cube Musashi Kosugi

Nakahara-ku,
Kawasaki-shi, Kanagawa

2,250

1.0

9,668

4.1

2,440

1.0

1,920

0.8

1,515

0.6

1,890

0.8

742

0.3

1,547

0.7

2,320

1.0

960

0.4

605

0.3

1,650

0.7

827

0.4

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

Nakamura-ku, Nagoya-shi,
Aichi
Naka-ku, Nagoya-shi,
Aichi
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

1.0

Park Axis Utsubo Koen

Nishi-ku, Osaka-shi,
Osaka

2,399

1.0

Other Major Cities Total (Note 4)

21,184

9.1

Total

223,31195.8

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

Location

Acquisition price(millions of yen)
(Note 1)

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

928

0.4

991

0.4

916

0.4

374

0.2

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

0.6

Dormy Naka Itabashi

Itabashi-ku, Tokyo

1,041

0.4

Phirosophia Nishidai

Itabashi-ku, Tokyo

1,249

0.5

1,152

0.5

540

0.2

1,160

0.5

9,829

4.2

233,140

100.0

Dormy Musashi Kosugi
Artis Sendai Kakyoin
Artis Sendai Kimachi-doriNakahara-ku,
Kawasaki-shi,
Kanagawa
Aoba-ku, Sendai-shi,
MiyagiAoba-ku, Sendai-shi,
Miyagi

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. Amounts less than one
million yen have been rounded off.
(Note 2) “Portfolio Share” means the percentage of the acquisition price of the 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’s 23 wards), Kanagawa, Saitama, and Chiba.
(Note 4) “Other Major Cities” refers to cities designated as regional government ordinance.

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