June 1, 2010
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.
Representative Executive Director Yuji Yokoyama(Code number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Kosei Murakami
Contact CFO and Director Morio Shibata(TEL 03-3246-3677)

Notification Concerning Acquisition of Domestic Real Estate Property
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on and completed the acquisitionof 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 Article of Incorporation,
the decision to acquire the following property was made to ensure the steady growth of the whole portfolio, andfor the diversification and further enhancement of the investment portfolio in Tokyo’s 23 wards.
2. Overview of acquisition(1)(2)

Name of property acquired (Note 1)
Type of property acquired

Park Cube Hatchobori
Real estate

(3)
(4)

Acquisition price (Note 2)
Date of conclusion of sales contract¥4,200,000 thousand
June 1, 2010

(5)
(6)

Date of handoverSellerJune 1, 2010
ORIX Real Estate Corporation

(7)
(8)

Acquisition funds
Method of payment

Own funds or borrowings
Full payment at the time of delivery(Note 1) The current name of the property acquired is “Belle Face Hatchobori.” 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 acquired.

3. Description of the property acquired(1) Outline of the property acquired
Name of property acquired

Park Cube Hatchobori

Type of property acquired

Real Estate

Acquisition price (Note 1)¥4,200,000 thousand

Appraisal company

Daiwa Real Estate Appraisal Corporation

Appraised value (Note 2)¥4,490,000 thousand

Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)
Ownership form

February 28, 2010
4-8-7, Hatchobori, Chuo-ku, Tokyo
80%
700%
Commercial zone
651.40 m²
Proprietorship

1Completion date (Note 4)
Structure / number ofstories (Note 5)
Uses (Note 5)
Building
Gross floor area (Note 5)
Ownership form
Rentable units
Rentable area
Existence of security interests
Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)

March 13, 2009
Flat-roofed reinforced concrete structure / 16 stories above ground and
2 underground stories
Apartment building / shops
6,944.52 m²
Proprietorship
118 residential, 2 retail
5,191.86 m²
None
For part of the land of the property, Tokyo Metro Co., Ltd. is set andregistered as superficiary owning the surface rights for the purpose of
construction of a subway line (Tokyo Metro Hibiya Line) and installationof railway facilities (station gateway etc.).
The property is 1 minute walk from Hatchobori Station of the Tokyo
Metro Hibiya Line and Hatchobori Station of the JR Keiyo Line. These
two lines provide excellent access to the central Tokyo business area as
they directly connect to various stations including Tokyo, Ginza, andKasumigaseki.
The property is located in the central urban area with many officebuildings with convenience stores and restaurants inside as tenants. It
has good accessibility to the office districts such as Otemachi and urban
shopping districts such as Ginza. Because of these attributes, steadyrental demand can be expected to center on DINKs and single people,
who value transport convenience and daily life convenience.

Total number of tenants
Rentable units
Rented units
Rentable area (m²)
Rented area (m²)
Occupancy rate (%)
Deposit (thousand yen)
Total rental revenues

1
118 residential, 2 retail114
5,191.86
4,936.52
95.1
60,397
Please refer to <Attached Document 1> Summary of theappraisal report on the amount of the property acquired.

(Note 1) “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 acquired.
(Note 2) “Appraised value” and “Date of value appraisal” are stated based on the amount mentioned in the real estate appraisal
report which Daiwa Real Estate Appraisal Corporation prepared for the property acquired.
(Note 3) “Site area” of the Land item denotes the land area as entered in the register.
(Note 4) “Completion date” of the Building item denotes the date as entered in the register.
(Note 5) “Structure / number of stories,” “Uses,” and “Gross floor area” are stated based on the entries in the register.
(Note 6) “Special affairs” denotes matters which NAF recognizes as important as of today, taking into consideration their effects on
title-related matters, use, appraised value, profitability, etc. of the property acquired.
(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 been concluded
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. as of today. 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
May 18, 2010.
(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(2) Outline of investigations into the state of the building, etc.

Investigations into
the state of thebuilding

Earthquake risk
diagnosis

Consigned investigatingcompany
Urgent repair cost
Short-term repair cost
Repair and renewal costs
expected to be necessary
within 12 years
Replacement value
Report date ofinvestigations into thestate of the building
PML value (Note 2)

Sumitomo Mitsui Construction Co., Ltd.
–¥43 thousand (Note 1)¥66,704 thousand¥1,653,857 thousand
March 15, 2010
8.2%

(Note 1) The short-term repairs have been carried out before NAF acquired the property.
(Note 2) 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 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 to happen within the expected duration of service (the biggest earthquake which happens once every 475
years = 10% chance of a big earthquake happening once every 50 years) represented by the rate (%) of the estimatedcost of restoration from the damage to the replacement cost.

Profiles of third party investigative body
Trade nameHead office address
Representative
CapitalDescription of principal operations
Relationship with NAF or investment
trust management company

Sumitomo Mitsui Construction Co., Ltd.
1-6, Tsukuda 2-chome, Chuo-ku, Tokyo
Yoshiyuki Norihisa, Representative Director and President¥12,003 million
Design and construction of civil engineering, building, prestressed
concrete work and related operations, and others
None3

4. Outline of seller
Trade name
ORIX Real Estate Corporation
Head office address
4-1 Hamamatsucho 2-chome, Minato-ku, Tokyo
Representative
Yoshiyuki Yamaya, President
Description of principal operations
Lease, sale, operation of real estate, and others
Capital¥200 million
Date of establishment
March 11, 1999
Net assets¥100,011 million (As of March 31, 2009)
Total assets¥950,406 million (As of March 31, 2009)
Major stockholders and
ORIX Corporation 100% (As of March 31, 2010)
shareholding ratio
Relationships between NAF or the investment trust management company, and the seller
There are no capital relationships to report between NAF or the investment
trust management company, and the seller. Also, there are no capital
Capital relationships
relationships to report between any related parties or associatedcompanies of NAF or the investment trust management company, and any
related parties or associated companies of the seller.
There are no personal relationships to report between NAF or theinvestment trust management company, and the seller. Also, there are no
Personal relationships
personal relationships to report between any related parties or associatedcompanies of NAF or the investment trust management company, and any
related parties or associated companies of the seller.
There are no business relationships to report between NAF or theinvestment trust management company, and the seller. Also, there are no
Business relationships
business relationships to report between any related parties or associatedcompanies of NAF or the investment trust management company, and any
related parties or associated companies of the seller.
The seller does not fall under the category of related parties of NAF or theinvestment trust management company. The related parties andApplicability to related parties
associated companies of the seller do not fall under the category of relatedparties of NAF or the investment trust 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. Please note that, since Mitsui Fudosan Housing
Lease Co., Ltd., which has become the master lease company and property management company for theproperty acquired as of today, constitute related parties and the like (Note 1), in accordance with 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 decision by thecompliance committee of the investment trust management company and the investment committee.
(Note 1) “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 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.

4

In addition, NAF always performs earthquake risk diagnosis based on drawing reviews using structuredrawings, structural design outlines, etc., as well as on on-site inspection and the like during the course of due
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

CBRE Japan K.K.
2-12 Hamamatsucho 2-chome, Minato-ku, Tokyo
Benjamin Mark Duncan, Representative Director
Building lots and buildings transactions; sales, lease and transfer
Description of principal operations
brokerage / representative; and other services
Capital¥67,500 thousand
Date of establishment
December 15, 2000
Relationships between NAF or the investment trust management company, and the broker
There are no capital relationships to report between NAF or the investment
trust management company and the broker. Also, there are no capital
Capital relationships
relationships to report between any related parties or associatedcompanies of 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 theinvestment trust management company and the broker. Also, there are no
Personal relationships
personal relationships to report between any related parties or associatedcompanies 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 theinvestment trust management company and the broker. Also, there are no
Business relationships
business relationships to report between any related parties or associatedcompanies 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 theinvestment trust management company. The related parties andApplicability to related parties
associated companies of the broker do not fall under the category of
related parties of NAF or the investment trust management company.

(2) Amount of brokerage fee
Not disclosed by request of the broker.
9. Outlook for management of the properties after acquisition
As stated in “Notification Concerning Revision to Financial Results Forecast for the Period Ending August 31,
2010 (9th Period)” released today.
••

The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange(Kabuto Club) and the Ministry of Land, Infrastructure and Transport, and to the press club of theconstruction trade newspaper of the Ministry of Land, Infrastructure and Transport.
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 acquired
2. Portfolio list after the purchase of the property acquired is completed (on an acquisition price basis)
3. Photographs of exterior and entrance of the property acquired5<Attached Document 1> Summary of the appraisal report on the amount of the property acquired(unit: Thousands of yen)Appraised value (specified value)
Assessment item(a) Unit rental revenues, including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Operating
Revenues from key money, etc.
revenues
Renewal fees
Other revenues(1) (a) + (b) + (c) + (d)(e) Total loss from vacancies etc.
(f) Loss on bad debts(2) Operating revenues [(1) - (e) - (f)](g) Maintenance expense(h) Utilities expense(i) Repair expense(j) Property management fees
Operating (k) Tenant soliciting fee, etc.
expenses (l) Taxes and public dues(m) Property insurance fee(n) Other expenses(3) Operating expenses[(g) + (h) + (i) + (j) + (k) + (l) + (m) + (n)](4) Net operating income [(2) - (3)](o) Earnings from temporary deposits(p) Capital expenditures(5) Net income [(4) + (o) - (p)](6) Cap rate
Value of earnings calculated by the direct capitalization method[(5) ÷ (6)]Value calculated by discounted cash flow method
Discount rate
Terminal cap rate
Cost method value
Total value of land and building
Land value
Building value
Adjustment

4,490,000
Details
291,967
3,392
8,640
7,713
5,670
1,922
120
311,713
11,2870300,425
7,539
4,146
4,260
10,1308,075
14,677535
1,415
50,780249,645
1,550
4,769
246,4265.4％
4,560,000
4,460,000
5.2％
5.6％
3,360,000
3,362,844
1,713,314
1,649,530
0

NAF requested real estate appraisal by Daiwa Real Estate Appraisal Corporation for the property acquired, based on points to notewhen appraising real estate from the Act on Securities Investment Trust and Securities Investment Corporations, and based on the Act
on Real Estate Appraisal (1963 Act No. 152, including later amendments) and on real estate appraisal standards. The above figures
record a summary of the real estate appraisal report prepared. The appraisal valuation is the judgment and opinion of the appraiser at a
fixed point in time, with no guarantees as to the validity or accuracy of the report, nor the possibility of transactions at the appraisedvalue.
Yen amounts are rounded down to the nearest thousand yen.

6

<Attached Document 2> Portfolio list after the purchase of the property acquired is completed (on an acquisition
price basis)

Name

Location

Okawabata Apartment Communities
Park Axis Gakugei Daigaku
Park Axis Shibuya Jinnan
Park Axis Aoyama Kottodori
Park Axis Kagurazaka Stage
Park Axis Shirokanedai
Park Axis Bunkyo Stage
Park Axis Tsukishima
Park Axis Otsuka
Park Axis Minami Azabu
Park Axis Shibuya
Park Axis Nihonbashi Stage
Park Axis Hamamatsucho
Park Axis Hongo No Mori
Park Axis Tameike Sanno
Park Axis Roppongi Hinokicho Koen
Park Axis Ochanomizu Stage
Park Axis Okachimachi
Park Cube Hongo
Park Cube Kanda
Park Cube Ichigaya
Park Cube Asakusa Tawaramachi
Park Cube Ueno
Park Cube Ikebukuro Kanamecho
Park Axis Meguro Honcho
Park Axis Shin Itabashi
Park Axis Akihabara
Park Axis Toyocho
Park Axis Takinogawa
Park Axis Asakusabashi
Park Axis Nihonbashihamacho
Park Cube Yoyogi Tomigaya
Park Axis Monzen Nakacho
Park Cube Itabashi Honcho
Park Cube Gakugei Daigaku
Park Cube Oimachi
Park Axis Nishigahara
Park Axis Kinshicho
Park Axis Tatsumi Stage
Park Axis Kameido
Park Axis Honancho
Park Axis Itabashi
Park Axis Oshiage

Chuo-ku, Tokyo
Setagaya-ku, Tokyo
Shibuya-ku, Tokyo
Minato-ku, Tokyo
Shinjuku-ku, Tokyo
Minato-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Toshima-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Minato-ku, Tokyo
Bunkyo-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Bunkyo-ku, Tokyo
Taito-ku, Tokyo
Bunkyo-ku, Tokyo
Chiyoda-ku, Tokyo
Shinjuku-ku, Tokyo
Taito-ku, Tokyo
Taito-ku, Tokyo
Toshima-ku, Tokyo
Meguro-ku, Tokyo
Itabashi-ku, Tokyo
Chiyoda-ku, Tokyo
Koto-ku, Tokyo
Kita-ku, Tokyo
Taito-ku, Tokyo
Chuo-ku, Tokyo
Shibuya-ku, Tokyo
Koto-ku, Tokyo
Itabashi-ku, Tokyo
Meguro-ku, Tokyo
Shinagawa-ku, Tokyo
Kita-ku, Tokyo
Sumida-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Nakano-ku, Tokyo
Kita-ku, Tokyo
Sumida-ku, Tokyo

7

Acquisition price(millions of yen)
(Note 1)
29,696
1,760
3,230
1,730
1,400
5,140
4,440
930
1,655
3,939
1,282
7,557
2,025
2,910
2,860
2,170
9,710
1,070
1,760
2,454
1,794
2,508
2,233
1,608
1,810
3,430
1,200
3,950
1,820
2,717
5,540
1,975
1,700
4,170
910
1,440
840
1,448
7,464
2,359
745
1,448
1,193

Portfolio
share(%)(Note 2)
15.9
0.9
1.7
0.9
0.7
2.7
2.4
0.5
0.9
2.1
0.7
4.0
1.1
1.6
1.5
1.2
5.2
0.6
0.9
1.3
1.0
1.3
1.2
0.9
1.0
1.8
0.6
2.1
1.0
1.5
3.0
1.1
0.9
2.2
0.5
0.8
0.4
0.8
4.0
1.3
0.4
0.8
0.6

Name
Park Axis Takadanobaba
Park Axis Toyosu
Park Axis Hatchobori
Park Axis Itabashi Honcho
Park Axis Sumiyoshi
Park Cube Yotsuya Sanchome
Park Cube Hatchobori
Tokyo 23 wards total
Park Cube Keio Hachioji
Park Cube Keio Hachioji II
Park Axis Nishifunabashi
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
Mae
Other major cities total (Note 4)
Total

Location
Toshima-ku, Tokyo
Koto-ku, Tokyo
Chuo-ku, Tokyo
Itabashi-ku, Tokyo
Sumida-ku, Tokyo
Shinjuku-ku, Tokyo
Chuo-ku, Tokyo
Hachioji-shi, Tokyo
Hachioji-shi, Tokyo
Funabashi-shi, Chiba
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, Fukuoka
Minami-ku,
Fukuoka-shi, Fukuoka
Chuo-ku, Sapporo-shi,
Hokkaido

Acquisition price(millions of yen)
(Note 1)

Portfolio
share(%)(Note 2)

1,222
14,300
1,760
987
1,006
2,749
4,200
168,245
991
1,130
1,020
3,141

0.7
7.6
0.9
0.5
0.5
1.5
2.2
90.0
0.5
0.6
0.5
1.7

2,440

1.3

1,920

1.0

1,515

0.8

1,890

1.0

742

0.4

1,547

0.8

2,320

1.2

960

0.5

605

0.3

1,650

0.9

15,589186,9758.3
100.0(Note 1) “Acquisition price” is exclusive of miscellaneous expenses for acquisition, fixed property taxes, urban planning taxes,
consumption taxes, and local consumption taxes.
(Note 2) “Portfolio share” means the share that each property’s acquisition price represents of the total acquisition price, rounded to
the nearest one decimal place.
(Note 3) “Greater Tokyo” indicates Tokyo metropolis (excluding Tokyo’s 23 wards), and the 3 prefectures of Kanagawa, Saitama
and Chiba.
(Note 4) “Other major cities” indicates the regional core cities designated by government ordinance.

8

<Attached Document 3> Photographs of exterior and entrance of the property acquired

9