April 7, 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 the acquisition of an asset, and hascompleted the acquisition as shown below.
1. Overview of acquisition(1) Park Axis Nihonbashi Hamacho(a) Name of property(b) Type of property(c) Acquisition price (Note 1)(d) Date of conclusion of sales contract(e) Date of handover(f) Seller(g) Acquisition funds(h) Method of payment

Park Axis Nihonbashi Hamacho
Real estate¥5,540,000,000
March 11, 2008
March 11, 2008
Mitsui Fudosan Co., Ltd.
Own funds or loans
Full payment at the time of delivery(2) Park Axis Nishi Funabashi(a) Name of property(b) Type of property(c) Acquisition price (Note 1)(d) Date of conclusion of sales contract(e) Date of handover(f) Seller(g) Acquisition funds(h) Method of payment

Park Axis Nishi Funabashi
Real estate¥1,020,000,000
March 11, 2008
March 11, 2008
Mitsui Fudosan Co., Ltd.
Own funds or loans
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 theproperty acquired.
2. Reason for acquisition
Based on the provisions for investments and policies on asset management set forth in the by-laws, the decision toacquire this property was made to ensure the steady growth of the whole portfolio, and for the diversification andimprovement of the investment portfolio in Tokyo’s 23 wards.

3. Description of the properties acquired(1) Outline of the properties acquired(a) Property 1: Park Axis Nihonbashi Hamacho
Name of property
Park Axis Nihonbashi Hamacho
Type of property
Real estate¥5,540 million
Acquisition price (Note 1)
Appraisal company
Morii Appraisal & Investment Consulting, Inc.
Appraised value (Note 2)¥5,550 million
Date of value appraisal (Note 2)
January 31, 2008
9-4, Nihonbashi Hamacho 1-chome, Chuo-ku, Tokyo
Location
Residence Indication
Land
Building-to-land
80%
ratio
500%
Floor-area ratio
Commercial District
Zoning1,241.55m2
Site area (Note 3)
Proprietorship
Ownership form

Buildings

Completion date
(Note 4)Structure / Number of stories(Note 5)Uses (Note 5)
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 oftenants(Note 7)

Flat-roofed reinforced concrete structure / 12 stories
Apartment building, parking lot, bicycle parking lot, garages, storage
9,235.80m2
Proprietorship
118
6,999.83m2
None
None
This property is in a very good location in terms of accessibility to thenearest station and transportation convenience. It is 3 minutes walk from
Hamacho Station (Toei Shinjuku Line), 5 minutes walk from Higashi
Nihonbashi Station (Toei Asakusa Line), and 8 minutes from Ningyocho
Station (Tokyo Metro Hibiya Line, and Toei Asakusa Line).
The property is located in a central urban area, with good access to several
major business districts and commercial areas, including Nihonbashi,
Marunouchi, Otemachi, and Ginza. We expect rental demand to center onfamilies and single renters who value transport convenience and lifestyle
convenience.
1
118
117
6,999.83
6,949.76

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )(b) Property 2: Park Axis Nishi Funabashi
Name of property
Type of property
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence Indication
Land
Building-to-landratio
Floor-area ratio
ZoningSite area (Note 3)
Ownership form
Buildings
Completion date
(Note 4)Structure / Number of stories(Note 5)Uses (Note 5)
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 oftenants(Note 7)

July 14, 2006

Total number of tenants
Rentable units
Rented units

Park Axis Nishi Funabashi
Real estate¥1,020 million
Daiwa Real Estate Appraisal Corporation¥1,030 million
January 31, 2008
4-6, Nishi Funabashi 3-chome, Funabashi-shi, Chiba-ken
60%
200%
Category 1 District Exclusively for Medium and High-rise Residential
Buildings, Category 1 Residential District
1,224.95m2
Proprietorship
September 21, 2007
Flat-roofed reinforced concrete structure / 5 stories
Apartment building, garbage storage area
2,377.18m2
Proprietorship
55
2,074.35m2
None
None
This property is in a good location in terms of accessibility to the nearest
station and transportation convenience. It is 2 minutes walk from Keisei
Nishifuna Station (Keisei Electric Railway Main Line), and 6 minutes walk from
Nishi Funabashi Station (Tokyo Metro Tozai Line, JR Sobu Line, JR
Musashino Line, and Toyo Rapid Railway).
This area has good transportation convenience, with access to major
business districts and commercial areas. It’s surroundings are also very
convenient, with many retail stores and restaurants are located around thestation. Thus we expect rental demand from both single renters and families
who value convenience.
1
55
43

2

Rentable area (m )2Rented area (m )Note 1:

Note 2:

Note 3:Note 4:Note 5:Note 6:Note 7:2,074.35
1,719.10“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 realestate sales contract for the property acquired.
“Appraised value” and “Date of value appraisal” are stated based on the amount noted in the real estateappraisal reports on the acquired properties, which Morii Appraisal & Investment Consulting, Inc. prepared for
Property 1, and Daiwa Real Estate Appraisal Corporation prepared for the Property 2.
“Site area” of the Land item denotes the land area as entered in the register.
“Completion date” of the Buildings item denotes the date as entered in the register.
“Structure / Number of stories”, “Uses,” and “Gross floor area” are stated based on information in the register.
“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 acquired properties.
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 acquired properties, NAF has concluded amaster lease contract with Mitsui Fudosan Housing Lease Co., Ltd. as the master lease company. The
above “Total number of tenants” denotes the total number of tenants after conclusion of the said master
lease contract.
(ii) “Rentable units” denotes the number of rentable units in the acquired properties.
(iii) Figures for “Rented units” and “Rented area” are based on information provided by the seller, valid as ofFebruary 26, 2008.
(iv) “Rentable area” shows the total rentable area of the buildings of the acquired properties.

(2) Outline of investigations into the state of the building(a) Property 1: Park Axis Nihonbashi Hamacho
Investigating company
Investigation into state of building
Urgent repair cost
Short-term repair cost
Estimated repair and renewal costs forthe next 12 years
Replacement value
Date of report on Investigation ofbuilding conditions
Diagnosis of earthquake risks
PML (Note 2)

Sumitomo Mitsui Construction Co., Ltd.
——¥56,255,000¥1,836,665,000
December 28, 2006
8.1%(b) Property 2: Park Axis Nishi Funabashi
Investigation into state of building

Investigating company
Sumitomo Mitsui Construction Co., Ltd.
Urgent repair cost—
Short-term repair cost—
Estimated repair and renewal costs for¥16,381,000
the next 12 years
Replacement value¥526,516,000
Date of report on Investigation of
December 21, 2007
building conditions
Diagnosis of earthquake risks
PML (Note 2)
7.9%
Note 2: 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 views of the commissioned
investigation company and does not provide any guarantee for its contents. PML (Probable Maximum Loss) represents therate of expected 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 whichhappens once every 475 years = 10% chance of a big earthquake happening once every 50 years) represented by the ratio(%) of the estimated cost of restoration from the damage, relative to the replacement cost.

4. Outline of seller
Trade nameHead Office address
Representative
CapitalMitsui Fudosan Co., Ltd.
1-1, Nihonbashi Muromachi 2-chome, Chuo-ku, Tokyo
Hiromichi Iwasa, President and Representative Director¥174,296,119,000

Major Stockholders(as of September 30, 2007)

Description of
Principal Operations

Relationship with NAF or
investment trust managementcompany

The Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account)
State Street Bank and Trust Company
The Chuo Mitsui Trust and Banking Company, Ltd.
Sumitomo Mitsui Banking Corporation
Mitsui Life Insurance Company Limited
State Street Bank and Trust Company 505103
Kajima Corporation
The Bank of New York Treaty JASDEC Account
Mitsui Sumitomo Insurance Company, Limited
1. Acquisition, ownership, disposition and lease of real estate.
2. Management and use of real estate.
3. Buying, selling, brokerage and appraisal of real estate.
4. Development, preparation and sales of sites for housing, industrial use, etc.
5. Construction and sale of housing.
6. Dredging and reclamation of harbors, rivers, etc.
7. Planning, execution, supervising and performing construction contracts;
8. Ownership, leasing and management of hotels, restaurants, leisure facilities,
distribution centers, fee based nursing homes, etc.
9. Management of parking lots.
10. Management of overhead cableway operations.
11. Business based on the Real Estate Specified Joint Enterprise Law.
12. Operations concerning life insurance offering, and insurance agency operations basedon the Act on Non-life Insurance and Automobile Liability Security.
13. Loans for real estate mortgages and other monetary loans.
14. Investment in specific purpose companies, special purpose companies (companies asprovided for in the Regulation for Terminology, Forms and Preparation of Financial
Statements) and real-estate investment trusts, and buying and selling, brokerage andmanagement of interests in such investments.
15. Holding, buying and selling, brokerage and management of securities and credit.
16. Investment consulting work for real estate, securities and other financial assets.
17. Cultivation, buying and selling, storing and management of markets of flowers andornamental plants, seeds and saplings, vegetables, fruit, etc.
18. Raising milk cows and other livestock, and processing, storing, buying and selling of
their products.
19. Sales of clothing, miscellaneous daily goods, cigarettes,
revenue stamps, postal stamps, food and drink.
20. Buying, selling, brokerage, import and export of civil engineering and building materials
and products related to each of the above items.
21. Specified in-house nursing care support operations and the lending of welfare
equipment in accordance with the
Nursing Care Insurance Law.
22. Sales of welfare equipment for in-house nursing care.
23. Business incidental or relevant to each of the above items.
Holds 100% of the outstanding stock of Mitsui Fudosan Accommodations FundManagement Co., Ltd., an investment t r u s t management company, (hereinafterreferred to as the “Asset Management Company”) and constitutes a related party(sponsoring party) as provided for in the Asset Management Company’s internal rules.

5. Transactions with related parties and the like
The properties were acquired from Mitsui Fudosan Co., Ltd. Mitsui Fudosan Housing Lease Co., Ltd. shall be the master lease
company and property management company. Mitsui Fudosan Co., Ltd. and Mitsui Fudosan Housing Lease Co., Ltd.
correspond to related parties and the like (Note 1). Thus in accordance with NAF’s own rules for asset management concerningtransactions with related parties and the like, the master lease and property management contracts passed through deliberation
and approval by the Compliance Committee of the investment management company, and deliberation and resolution by theInvestment Committee.
Note 1: "Related parties and the like" means related parties and the like of an investment trust management company
who have concluded an asset management contract with NAF as provided for in the Investment Trust andInvestment Corporation Act, Enforcement Order, Article 123.
6. Situation of the acquirer of the property

Situation of the property
owner

Property 1: Park Axis Nihonbashi Hamacho(9-4, Nihonbashi Hamacho 1-chome, Chuo-ku,
Tokyo)
Property 2: Park Axis Nishi Funabashi(4-6, Nishi Funabashi 3-chome, Funabashi-shi,
Chiba-ken)Company name,person’s name
Relationship with a
special related party
Acquisition history,reason, etc.
Acquisition price(including other costs)

Former owner

Owner
before theformerowner

Mitsui Fudosan Co., Ltd.

None

Parent company ofinvestment trust
management company
Development with goal ofsale―

Acquisition time―

7. Earthquake resistance matters
NAF commissioned Mitsui Fudosan Co., Ltd., an expert on building structure calculations, to closely inspect and verify thedetails 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 thento validate the adequacy of the design). As a result, it has been confirmed by the above expert Mitsui Fudosan that there are no
suspicions concerning the falsification of structure calculations and construction drawings by which aseismic capacity required inaccordance with the Building Standards Act is ensured for the buildings of the acquired properties. Based on the said
confirmation, the investment trust management company has judged that the aseismic capacity required by the BuildingStandard Law has been ensured, and thus plans to accept handover of the property.
Furthermore, NAF requested the third party investigative body described below (Sumitomo Mitsui Construction Co., Ltd.) toinspect and verify the buildings of the acquired properties. NAF thus confirmed that no illegal manipulation, such as intentional
falsification, was found in the structure calculation statements, and that the structure calculations were appropriately carried out
in compliance with the relevant laws.
As of January 1, 2008, the building owners, the main contractors, and the designers of the property to be acquired were as
follows. None of these parties has been publicly named by the Ministry of Land, Infrastructure and Transport as a party who took
part in any property structure calculation statement falsifications.
In addition, NAF always examines earthquake risks during the course of due diligence upon acquisition of properties, fromperspectives 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 properties acquired
Property
number
Property 1

Property 2

Property nameContractor

Park Axis
Nihonbashi
Hamacho

Building
owner
Mitsui
FudosanCo., Ltd.

Structure design
company
Go Structures
Co., Ltd.

Building certifier

Maeda
Corporation

Building design
company
Maeda
Corporation

Park Axis
Nishi
Funabashi

Mitsui
FudosanCo., Ltd.

Shinnihon
Corporation

Shinnihon
Corporation

Espace Archtect
Office Co., Ltd.

Houseplus
Corporation,
Inc.

Profile of third party investigative body (investigations of the states 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

Chuo
Ward ,Tokyo

Description ofprincipal operations(1) Contracting and design supervision for civil works, construction, prestressed concrete,electrical and piping work, and other construction(2) Design supervision for ocean development, regional development, urban development,
resource development, and environmental improvement(3) For each of the above items, contracting to perform engineering and 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 and construction materials,
prestressed concrete products, seismic isolation equipment, seismic control equipment,machinery, equipment, etc.
(7) Maintenance, repair, and security for civil works and buildings(8) Operations concerning landscaping and gardening(9) Development, acquisition, license, and sales of industrial property rights, copyrights,
and computer software(10) Information processing services business and information 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, leisure facilities 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, andsupervision for its rehabilitation and purification(20) Operations incidental or relevant to each of the above items

Relationship with NAF or
investment trust managementcompanyNone

8. Outline of brokerage
There was no brokerage for transactions concerning acquisition of these properties.
9. Outlook for management of the properties after acquisition
NAF plans to separately announce the results forecasts after acquisitions of the properties when it announces its results forthe period ending February 2008 (planned in April 2008), also considering the operating situation of the entire portfolio.
* This English language notice is a translation of the Japanese language notice dated March 11, 2008 and was preparedsolely for the convenience of, and reference by, overseas investors. NAF makes no warranties as to its accuracy orcompleteness.

[Attached documents]
1. Summaries of the appraisal reports on the prices of the acquired properties
2. Portfolio list after acquisition of the properties (on a (planned) acquisition price basis)
3. Photographs of exteriors and entrances of the acquired properties
4. Maps to locate the acquired properties

<Attached Document 1>
Summaries of the appraisal reports on the prices of the acquired properties(1) Park Axis Nihonbashi Hamacho(unit: Thousands of yen)Appraised value (specified value)

Operatingrevenues

Assessment item(a) Unit rental revenues,
including commons area fees

Details
303,905(b) Utilities revenues(c) Parking lot revenues

014,803(d) Other revenues
Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies etc.

17,8579,689(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

Operatingexpenses

5,550,000

7,209
959
336,565
17,5700318,995
10,054(h) Utilities expense

2,921(i) Repair expense

1,406(j) Property management fees

9,067(k) Tenant soliciting fee, etc.

13,123(l) Taxes and public dues

13,125(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)]

664
1,061
51,421
267,574
1,050

3,282

265,342

Basis for assessment
Assessed stable rents etc. which can be received overthe mid and long term, based on the appraised real estateand on the standard levels of rents and commons area
fees when assuming they are newly rented.
There are no utilities charges collected from renters.
Assessed stable usage fees which can be received overthe mid and long term, based on levels of usage 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 the estimated number ofmonths of key money and average annual average tenant
turnover ratio and vacancy rate.
Assessed at mid and long term operating levels,
considering characteristics of the appraised property andvacancies of comparable real estate nearby, etc.
Not totaled, due to consideration of collateral such as
security deposits.
Assessed by referring to the current contract price, andconsideringbuilding
management
expensesofcomparable rental apartments, characteristics of the realestate subject to evaluation, etc.
Assessed by referring to current expenses, andconsidering utilities expenses of comparable rental
apartments, characteristics of the real estate subject toevaluation, etc.
Assessed by considering expenses to restore units totheir original condition accompanying tenant turnover,
repair expenses in the engineering report, etc.
Assessed by considering property management fees ofcomparable buildings.
Assessed at 2.0 months of the unit rental revenue as
fees, considering annual average tenant turnover ratio,
operating rate, current contract terms, lease terms ofcomparable real estate nearby, etc. The administrative
costs for recruiting new tenants, and signing and renewalof contracts are also taken into account.
Assessed based on the 2007 business year tax register.
For the building, based on the same documents, theestimated tax amount 11 years after construction was
adopted, for a medium and long term perspective
considering adjustments for the passage of time, etc.
Recorded based on contract amount presented.
Recorded based on contract amount presented.

Assumed security deposits held multiplied by an assumed
2.0% investment yield. This yield is from a medium tolong term perspective, based on data independently
obtained by the real estate appraiser.
Assessed by considering the building age, annual
average amount of renewal expenses in the engineering
report, etc.

(6) Cap rate

4.7%

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

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, results of a real estate
investor survey, etc. Then assessed a yield difference incomparison with districts which meet the above criteria,
based on cap rates for the appraisal values of theassessed real estate and for comparable real estate,considering rental supply and demand trends andproperty sales trends in these districts, etc.

5,650,000

5,450,000
4.4%

5.0%

3,480,000
3,480,000
1,710,000
1,770,000
0Assessed by a method comparing with sample
transactions in comparable real estate, together with amethod which considers the specific characteristics ofreal estate to adjust yields of financial assets, and also
considering interviews with investors, etc.
Adjusts the cap rate assessed above by comprehensively
considering the characteristics of the net income adopted,
future uncertainties, liquidity, market characteristics, etc.

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

(2) Park Axis Nishi Funabashi(unit: Thousands of yen)Appraised value (specified value)
1,030,000
Assessment item(a) Unit rental revenues,
including commons area fees
Operatingrevenues

Details
70,085(b) Utilities revenues(c) Parking lot revenues

0864(d) Other revenues
Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies etc.

3,312
2,646

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense
Operatingexpenses

666
074,2613,540

070,721
3,683(h) Utilities expense

1,506(i) Repair expense

1,083(j) Property management fees

2,359

Basis for assessment
Assessed stable rents etc. which can be received overthe mid and long term, based on the appraised real estateand on levels of rents and commons area fees whenassuming they are newly rented.
There are no utilities charges collected from renters.
Assessed stable usage fees which can be received overthe mid and long term, based on levels of usage 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 the estimated number ofmonths of key money and average annual average tenant
turnover ratio and vacancy rate.
Assessed at mid and long term operating levels,
considering characteristics of the appraised property andvacancies of comparable real estate nearby, etc.
Not totaled, due to consideration of collateral such as
security deposits.
Assessed by referring to current expenses, andconsideringbuilding
management
expensesofcomparable rental apartments, characteristics of the realestate subject to evaluation, etc.
Assessed by referring to current expenses, andconsidering utilities expenses of comparable rental
apartments, characteristics of the real estate subject toevaluation, etc.
Assessed considering expenses to return units to original
condition accompanying tenant turnover, repair expenses
in the engineering report, etc.
Assessed by considering property management fees ofcomparable buildings.

(k) Tenant soliciting fee, etc.

1,742(l) Taxes and public dues

4,346(m) Property insurance fee

234(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

132
15,08655,635212

1,518

54,3295.2%

Assessed at 1.3 months of the unit rental revenue as
fees, considering annual average tenant turnover ratio,
operating rate, current contract terms, lease terms ofcomparable real estate nearby, etc. The administrative
costs for recruiting new tenants, and signing and renewalof contracts are also taken into account.
For the land, these were assessed based on the 2007
business year tax register, considering special measures
for small scale residential land. For the building, they
were assessed based on rebuilding cost, considering
adjustments for passage of time, etc.
Assessed by considering insurance rates of comparable
buildings, etc.
Recorded based on contract amounts presented.

Assumed security deposits held multiplied by an assumed
2.0% investment yield. This yield is from a medium tolong term perspective, based on data independently
obtained by the real estate appraiser.
Assessed by considering the building age, averageannual average 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, results of a real estate
investor survey, etc. Then assessed a yield difference incomparison with districts which meet the above criteria,
based on cap rates for the appraisal values of theassessed real estate and for comparable real estate,considering rental supply and demand trends andproperty sales trends in these districts, etc.

1,040,000

1,020,000
5.0%

5.4%

885,000
885,297
342,986
542,3110

Assessed by a method comparing with sample
transactions in comparable real estate, together with amethod which considers the specific characteristics ofreal estate to adjust yields of financial assets, and also
considering interviews with investors, etc.
Adjusts the cap rate assessed above by comprehensively
considering the characteristics of the net income adopted,
future uncertainties, liquidity, market characteristics, etc.

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

NAF requested real estate appraisals for the properties acquired, by Morii Appraisal & Investment Consulting, Inc., andDaiwa Real Estate Appraisal Corp., based on points to note when appraising real estate from the Act on Securities Investment
Trust and Securities Investment Corporations, and based on the Act on Real Estate Appraisal (1963 Law No. 152, including later
amendments) and on real estate appraisal standards. The above figures record a summary of the real estate appraisal reports
prepared. Each corresponding 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 these reports, nor the possibility of transactions at the appraised values.
Yen amounts are rounded off to the nearest thousand yen.

< Attached document 2>
Portfolio list after acquisition of the properties (on a (planned) acquisition price basis)
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
41
42
43

Name

Ohkawabata
River Point Tower
Apartment
Park Side Wings
Communities
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 Ohtsuka
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 Axis Nihonbashi Hamacho
Park Axis Yoyogi Tomigaya(Tentative name) Park Cube Itabashi
Honcho (Acquisition planned)(Tentative name) Park Cube Gakugei
Daigaku (Acquisition planned)(Tentative name) Park Cube Oimachi(Acquisition planned)
Tokyo 23 wards Total

Location

Chuo-ku, Tokyo

Price of(Planned)
Acquisition(Note 1)

Portfolio
Share(Note 2)

29,696

21.5

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

Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
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
5,540
1,975
4,170

1.3
1.9
2.3
1.3
1.0
3.7
3.2
0.7
1.2
2.8
0.9
5.5
1.5
2.1
2.1
1.6
7.0
0.8
1.3
1.8
1.3
1.8
1.6
1.2
1.3
2.5
0.9
2.9
1.3
2.0
4.0
1.4
3.0

Meguro-ku,

Tokyo

910

0.7

Shinagawa-ku,

Tokyo

1,440

1.0

127,394

92.1

991
1,130
1,020
3,141

0.7
0.8
0.7
2.3

25
26
40

Park Cube Keiko Hachioji
Park Cube Keio Hachioji 2Park Axis Nishi Funabashi
Greater Tokyo Subtotal (Note 3)

Hachioji-shi,
Hachioji-shi,
Funabashi-shi,

Tokyo
Tokyo
Chiba

27

Park Axis Meieki Minami

Nakamura-ku, Nagoya-shi, Aichi

2,440

1.8

35

Park Axis Marunouchi

Naka-ku, Nagoya-shi, Aichi

1,920

1.4

36

Park Axis Ropponmatsu

Chuo-ku, Fukuoka-shi, Fukuoka

1,515

1.1

37

Park Axis Hakataeki Minami

Hakata-ku, Fukuoka-shi, Fukuoka

1,890

1.4

Other Major Cities Subtotal (Note 4)

7,765

5.6

Total

138,300

100.0

(Note 1) “Price of (Planned) Acquisition” denotes the sale price (exclusive of miscellaneous expenses for acquisition, fixed
property taxes, urban planning taxes, consumption taxes and local consumption taxes) of the property which NAF acquired or
the property to be acquired. Amounts less than one million yen have been rounded off.
(Note 2) “Portfolio Share” means the percentage resulting from the acquisition price of the property acquired or the property to
be acquired compared with the total amount, 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.

<Attached Document 3> Photographs of exteriors and entrances of the acquired properties(1) Park Axis Nihonbashi Hamacho

(2) Park Axis Nishi Funabashi

<Attached Document 4> Maps to locate the acquired properties(1) Park Axis Nihonbashi Hamacho

Bakurocho
stationBakuro Yokoyama station

HigashiNihonbashi
stationPark Axis Nihonbashi Hamacho

Hamachostation

Z07BB, No. 152

(2) Park Axis Nishi Funabashi

Park Axis Nishi Funabashi

Z07BB, No. 152