March 6, 2008
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 Nobuyuki Nakai(Code Number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Nobuyuki Nakai
Contact CFO and Director Morio Shibata(TEL. 03-3246-3677)

Notification Concerning Acquisition of Assets
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on theacquisition of an asset as shown below.
1. Overview of acquisition(a) Name of property(Tentative name) Park Cube Oimachi(b) Type of property

Real estate(c) Acquisition price (Note 1)¥1,440,000,000(d) Date of conclusion of sales contract February 21, 2008(e) Date of handoverMay 30, 2008 (planned)(f) Seller

SATOHIDE CORPORATION(g) Acquisition funds

Own funds or loans(h) Method of payment

Full payment at the time of delivery

Note 1: “Acquisition Price” denotes the sales price (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 the property to be acquired.

2. Reason for acquisition
Based on the provisions for investments and policies on asset management set forth in
the by-laws, the decision to acquire this property was made to ensure the steady growth of
the whole portfolio, and for the diversification and improvement of the investment portfolio inTokyo’s 23 wards.

3. Description of the property to be acquired(1) Outline of the property to be acquired
Name of property(tentative name) Park Cube Oimachi
Type of property
Real estate
Acquisition price (Note 1)¥1,440 million
Appraisal company
Daiwa Real Estate Appraisal Corporation
Appraised value (Note 2)¥1,440 million
Date of value appraisal (Note 2)
January 31, 2008
Location Residence Indication 26-2, 26-3, and 26-18, Oi 1-chome, Shinagawa-ku, Tokyo
Land
Building-to-land
80%
ratio
Floor-area ratio
500%
ZoningCommercial zone
Site area (Note 3)
400.52m2
Ownership form
Proprietorship
Buildings Planned completion
Last day of February, 2008
date (Note 4)
Structure / Number ofReinforced concrete structure / 14 stories
stories (Note 5)
Uses (Note 5)
Apartment building
Gross floor area
1,813.35m2(Note 5)
Ownership form
Proprietorship
Rentable units
65
Rentable area
1,511.12m2
Existence of security interests
None
Special affairs (Note 6)
None

Special features of the property

Details oftenants(Note 7)This property is in a very good location in terms ofaccessibility to the nearest station and transport
convenience. It is 5 minutes walk from Oimachi Station (JRKeihin Tohoku Line, Tokyu Oimachi Line, and the Tokyo
Waterfront Area Rapid Transit Rinkai Line).
There are also many large retail stores, restaurants etc. in
the property’s surroundings, especially near the train
station. This area is located in a central urban area, and has
good access to major business districts such as Shinagawa.
Therefore, we expect rental demand to center on single
people who emphasize convenience.

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )1
65–
1,511.12–(Note 1) “Acquisition price” denotes the sales price (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 the property to be acquired.
(Note 2) “Appraised value” and “Date of value appraisal” are stated based on the amount noted in the realestate appraisal reports, which Daiwa Real Estate Appraisal Corporation prepared for the property to
be acquired. “Real estate appraisal” differs from appraised value by price evaluation of real estate as
determined in the Law on Price Valuation for Real Estate, Article 2, Clause 1. The subject building is

incomplete, and it is difficult to confirm the subject real estate. Thus the real estate appraiser applied
appraisal evaluation techniques to obtain a price at the time which is the criteria for the appraisal,assuming that building planned for completion would be completed as planned.
(Note 3) “Site area” of the Land item denotes the land area as entered in the register.
(Note 4) “Planned completion date” of the Buildings item denotes the date that the seller plans to complete thebuilding.
(Note 5) “Structure / Number of stories”, “Uses,” and “Gross floor area” are stated based on information in theRegulatory Confirmation Certificate (H18 Construction Confirmation Shinagawa-ku No.000214, dated
December 4, 2006).
(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 theproperty to be 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 to be acquired,
NAF has concluded a master lease contract with Mitsui Fudosan Housing Lease Co., Ltd. as
the master lease company. The above “Total number of tenants” means the total number oftenants 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” and “Rented area” are not available because the property to beacquired is incomplete. But the plan is for leasing to be done by the seller for this property, during
the period after completion until acquisition by NAF. Through this leasing, while it is a newly built
property, a certain level of utilization conditions can be expected at time of acquisition, in an effort
to avoid reduced rental revenues due to underutilization.
(iv) “Rentable area” denotes the total rentable area of the building of the property to be acquired,based on the Regulatory Confirmation Application plans etc., because the building is incomplete
as of today.

(2) Outline of investigations into the state of the building
Investigation into state ofbuilding

Diagnosis of earthquake risks

Investigating company
Urgent repair cost
Short-term repair cost
Estimated repair and renewal
costs for the next 12 years
Replacement value
Date of report on Investigationof building conditions
PML (Note 1)

Sumitomo Mitsui Construction
Co., Ltd.
––¥13,002,000¥438,424,000
January 31, 2008
10.0%

(Note 1): The aforementioned 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 viewsof the commissioned investigation company and does not provide any guarantee for its contents. PML(Probable Maximum Loss) represents the rate of expected maximum loss to be caused by earthquakes. In thiscase, 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 estimated costof restoration from the damage to the replacement cost.

4. Outline of seller
Trade nameHead office address
Representative
CapitalMajor shareholders(as of January 31,
2008)
Description ofprincipal operations

Relationship with NAF
or investment trust
management company

SATOHIDE CORPORATION
6-11, Shinjuku 5-chome, Shinjuku-ku, Tokyo
Mikio Okada, President and Chief Executive Officer¥500,000,000
SUCCESS PRO(1) Design, construction, and contracting for civil engineering andconstruction projects(2) Real estate trading, rental, brokerage, and management(3) Lumber processing and sales(4) Operations incidental or relevant to each of the above items
None

5. Transactions with related parties and the like
For the property to be acquired, NAF's plan is to make Mitsui Fudosan Housing Lease Co., Ltd.
the master lease company and property management company. Mitsui Fudosan Housing Lease
Co., Ltd. corresponds to a related party (Note 1). Thus in accordance with NAF’s own rules on
asset management concerning transactions with related parties, the plan is to first have thismaster lease and property management contract pass through deliberation and approval by theCompliance Committee of the investment trust management company, and deliberation anddecision by the Investment Committee, before the property acquisition is completed, then toconclude the contract.
(Note 1) "Related parties and the like" means related parties and the like of an asset 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
For the property it plans to acquire, NAF received from the seller a report showing that thestructural plans for this building comply with the Building Standards Law, and legal and regulatory
aseismic capacity has been secured.
NAF commissioned Mitsui Fudosan Co., Ltd. and Sumitomo Mitsui Construction Co., Ltd. toinspect and verify the details of the buildings of the property to be acquired. These companies
were commissioned to closely inspect and verify the details of earthquake-resistant structures,
including structure calculation statements (specifically, to verify the structure calculations, load
calculations, stress calculations, computation on framework members, and the second-order
design, and then to validate the adequacy of the design). NAF thus confirmed that no falsifications
were found in the structural calculations nor in the structural drawings for the structure of thebuilding for the asset to be acquired, which secure aseismic capacity as determined by the
Building Standards Law. Based on this confirmation, the investment trust management company
has judged that the aseismic capacity required by the Building Standards Law has been secured.

The building owner, the main contractors, and the designers of the property to be acquired arenoted below. Of these parties, as of January 25, 2008, SATOHIDE CORPORATION (seller of theproperty to by acquired) has been publicly named by the Ministry of Land, Infrastructure andTransport as a party who took part in a property structure calculation statement falsification (ascontractor for the Zephyr Tsukijima, construction confirmation obtained 1997, located in Chuo-ku,
Tokyo).
However, in addition to verifications by the 2 companies noted above, the participation by thebusiness noted above in the publicly named property was only as a contractor, and consideringthat it did not participate in design (including structural design), the investment trust managementcompany judged that this shall not impact the decision on acquisition of the property to beacquired.
In addition, NAF always examines earthquake risks during the course of due diligence uponacquisition of properties, from perspectives that are different to building certification investigations
performed by an inspection and certification agency. NAF makes a decision on acquisition after
performing appropriate analysis of earthquake risks of the property to be acquired, independently
considering the structural earthquake-resistance of the building to be acquired, based on drawing
reviews using structure drawings, structural design outlines, etc.
Companies engaged in design of the property to be acquired
Building ownerContractor
Building design
Structure design
company
company
SATOHIDE
SATOHIDE
SATOHIDE
SebtechCORPORATION CORPORATION CORPORATION Construction
Research
Institute

Building certifier
Shinagawa City

Profiles of third party investigative body (investigations of the state of the buildings,
reinvestigation of earthquake risk assessments and structure calculation statements)
Trade name
Sumitomo Mitsui Construction Co., Ltd.
Head office address
5-25, Nishi-Shinjuku 7-chome, Shinjuku-ku, Tokyo
Representative
Hisaya Igarashi, Representative Director and President
Capital¥16,859,138,000(1) Contracting and design supervision for civil works, construction,
prestressed concrete, electrical and piping work, and otherconstruction(2) Design supervision for ocean development, regional
development, urban development, resource development, andenvironmental improvement(3) For each of the above items, contracting to perform engineeringand consulting work such as surveys, planning, and proposals(4) Real estate acquisition, management, use, disposal, and leasing(5) Real estate sales, brokerage, and appraisal(6) Manufacturing, supply, sales, and rental of civil works andconstruction materials, prestressed concrete products, seismic
isolation equipment, seismic control equipment, machinery,equipment, etc.
(7) Maintenance, repair, and security for civil works and buildings(8) Business concerning landscaping and gardening(9) Development, acquisition, license, and sales of industrial property
rights, copyrights, and computer software
Description of(10) Information processing services business and information
principal operations
provision business(11) Development, sales, leasing, and maintenance of electronic
office equipment such as computers(12) General leasing business(13) Administration, management, operation, and leasing of elderly
residential facilities, training, medical care, sports facilities, leisurefacilities such as ski resorts and amusement parks, lodging facilities,
and restaurants(14) Worker dispatch operations(15) Non-life insurance agency business(16) Money lending and other financial business(17) Operations concerning pollution prevention(18) Collection, transport, processing, and recycling of industrial
waste(19) Surveys and evaluation of soil and groundwater pollution.
Design, construction, and supervision for its rehabilitation andpurification(20) Operations incidental or relevant to each of the above items
Relationship with NAF
None
or investment trust
management company
8. Outline of brokerage
There was no brokerage for the transaction concerning acquisition of the property.

9. Risks concerning building handover, and methods of avoiding such risksThis property is in the process of being developed, with planned completion of the building in
February 2008. Thus until the building is completed, there are inherent risks concerning
construction completion and building handover, etc. But NAF is working to avoid construction
completion and building handover risks, mainly by establishing the following points as conditions
for payment of the purchase price.
• Based on the design plans specified in the sales contract, the building was constructed,
Inspection Completion Certificate was obtained, and all required legal and regulatory
permits and approvals were obtained.
• It was confirmed that the building complies with all construction related laws such as the
Building Standards Law, and confirmed that there are no particular problems with resultsof the prescribed due diligence.
10. Outlook for management of property after acquisition
The acquisition of this property will not affect the operational situation of NAF in the fiscal year
ending February 2008.

* This English language notice is a translation of the Japanese language notice dated
February 21, 2008 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 price of the property to be acquired
2. Portfolio list after acquisition of the property is completed (on a (planned) acquisition price basis)
3. Photographs of exterior of the property to be acquired
4. Map to locate the property to be acquired<Attached Document 1> Summary of the appraisal report on the price of the property to beacquired(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
Operatingrevenues

Revenues from key
money, etc.
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
Operatingexpenses

1,440,000
Details
82,274

0
720

4,679
3,908
651
120
87,6744,474

083,2002,194(h) Utilities expense

823(i) Repair expense

1,390(j) Property management fees

2,752(k) Tenant soliciting fee, etc.

2,552(l) Taxes and public dues

3,357(m) Property insurance fee(n) Other expenses

181
0Basis for assessment
Assessed stable rents etc. which can be received
over the mid and long term, based on the appraisedreal estate and on levels of rents and commonsarea fees when assuming they are newly rented.
There are no utilities charges collected from
renters.
Assessed stable usage fees which can be received
over the mid and long term, based on levels ofusage fees etc. when assuming that they are newly
rented.
Assessed based on mid and long term stable rent
revenues which can be received from each tenant
when new contracts are signed, and considering
the estimated number of months of key money andannual tenant turnover ratio and vacancy rate.

Assessed mid and long term operating levels,
considering characteristics of the appraised
property and vacancies of comparable real estate
nearby, etc.
Not totaled, due to consideration of collateral suchas security deposits.
Assessed by referring to the current contract, andconsidering building management expenses ofcomparable rental apartments, characteristics ofthe real estate subject to evaluation, etc.
Assessed by referring to the current contract, andconsidering utilities expenses of comparable rental
apartments, characteristics of the real estate
subject to evaluation, etc.
Assessed considering expenses to return units tooriginal condition accompanying tenant turnover,
repair expenses in the engineering report, etc.
Assessed by considering property management
fees of comparable buildings.
Assessed at 1.3 months of the unit rental revenue
from above as fees, considering annual tenant
turnover ratio, operating rate, current contract terms
and lease terms of comparable real estate nearby,
etc. The fees include fees to find and contract withnew tenants and administrative fees for renewals oftenants.
Assessed based on the 2007 business year tax
register. For the building, based on the same
documents, the estimated tax amount 11 years after
construction was adopted, for a medium and longterm perspective considering adjustments for thepassage of time, etc.
Recorded based on contract amount presented.

(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(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
methodDiscount rate

Terminal cap rate

Cost method value
Total value of land and building
Land value
Building value
Adjustment

13,24869,952261

1,264

68,948
4.7%

Assumed security deposits held multiplied by anassumed 2.0% investment yield. This yield is from a
medium to long term perspective, based on data
independently obtained by the real estate appraiser.
Assessed by considering the building age, averageannual amount of renewal expenses in theengineering report, etc.
Decided on a cap rate for apartment buildings
located in the lowest risk districts, after
comprehensively considering yields of transactions
in comparable apartment buildings in the market,
resulted in a real estate investor survey, etc., thenassessed a yield difference in comparison with
districts which meet the above criteria, based on
cap rates for the appraisal values of the assessed
real estate and for comparable real estate,considering rental supply and demand trends andproperty sales trends in these districts, etc.

1,470,000

1,420,000
4.5%

4.9%

1.030,000
1,032,302
580,725
451,5770Assessed by a method comparing with sample
transactions in comparable real estate, together
with a method which considers the specificcharacteristics of real estate to adjust yields offinancial assets, and also considering interviews
with investors, etc.
Adjusts the cap rate assessed above bycomprehensively considering the characteristics ofthe net income adopted, future uncertainties,
liquidity, market characteristics, etc.

The combined value of the land and building is
judged to be unchanged.

For the above appraisal reports, appraised buildings are not yet complete making it difficult toconfirm the appraised real estate, so at the date assumed for the appraisal, it is assumed that theappraised buildings will be completed according to their design plans, thus the appraisals do not
go beyond assessments of prices which indicate investment profitability value in order to show toinvestors. Each corresponding 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 these reports, or the
possibility of transactions at the appraised values.
Yen amounts are rounded off to the nearest thousand yen.

<Attached Document 2> Portfolio list after the acquisition of the property is completed (on a(planned) acquisition price basis)
Name

No.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
28
29
30
31
32
33
34
38
39
40
41

River Point Tower
Park Side Wings
Pier West House
Park Axis Gakugei Daigaku
Park Axis Ichigaya
Park Axis Shibuya Jinnan
Park Axis Aoyama Kotto-doriPark Axis Kagurazaka Stage
Park Axis Shiroganedai
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 Park
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 Cube Gakugei Daigaku(tentative name)Park Cube Itabashi Honcho(tentative name)Park Cube Yoyogi Tomigaya
Park Cube Oimachi (tentative name)Tokyo 23 wards Total
Okawabata
Apartment
Communities

AcquisitionPrice(000,000)(Note 1)

Portfolio
Share(%)(Note 2)Chuo-ku, Tokyo

29,69622.5

Setagaya-ku, Tokyo
Shinjuku-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
Meguro-ku, Tokyo
Itabashi-ku, Tokyo
Shibuya-ku, Tokyo
Shinagawa-ku, Tokyo

1,760
2,570
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
910
4,170
1,975
1,440
121,854

1.3
2.0
2.5
1.3
1.1
3.9
3.4
0.7
1.3
3.0
1.0
5.7
1.5
2.2
2.2
1.6
7.4
0.8
1.3
1.9
1.4
1.9
1.7
1.2
1.4
2.6
0.9
3.0
1.4
2.1
0.7
3.2
1.5
1.1
92.5

Location

25
26Park Cube Keio Hachioji
Park Cube Keio Hachioji 2Greater Tokyo Total (Note 3)

Hachioji-shi, Tokyo
Hachioji-shi, Tokyo

991
1,130
2,121

0.8
0.9
1.6

27
35
36
37

Park Axis Meieki Minami
Park Axis Marunouchi
Park Axis Ropponmatsu
Park Axis Hakataeki Minami
Other Major Cities Total (Note 4)

Nakamura-ku, Nagoya-shi, Aichi

2,440
1,920
1,515
1,890
7,765

1.9
1.5
1.1
1.4
5.9

131,740

100.0

Total

Naka-ku, Nagoya-shi, Aichi
Chuo-ku,Fukuoka-shi,Fukuoka
Hakata-ku,Fukuoka-shi,Fukuoka

(Note 1) “Acquisition Price” refers to the sale price (exclusive of miscellaneous expenses for acquisition, fixed property taxes,
urban planning taxes, consumption taxes, and local consumption taxes) of the property acquired or the property to beacquired. 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 or the property to be acquiredcompared 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> Photograph of exterior of the property to be acquired

This computer graphics image was created based on drawings, and may differ from the actual property.

<Attached Document 4> Map to locate the property to be acquired

Oimachi Station

Z07BB 第 152 号