August 5, 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.
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 Morio Shibata(TEL. 03-3246-3677)

Notification Concerning Issue of Investment Corporation Bonds
Nippon Accommodations Fund (“NAF”) provided notice of its resolution to issue investment
corporation bonds on July 23,2010 as follows.

1. Summary of investment corporation bonds(1)Name of the investment corporation bonds Nippon Accommodations Fund 2nd
Unsecured Investment Corporation Bonds(with special pari passu conditions among
specified investment corporation bonds)(2)Total amount of the¥7 billion
investment corporation bonds to be Issued(3) Form of Certificates of investment corporation bonds to be Issued
The Law Concerning Book-Entry Transfer of Corporate Bonds applies to all of theseinvestment corporation bonds, so investment corporation bond certificates will not beissued.
(4) Payment amount¥100 per ¥100 par value of investment corporation
bonds(5) Redemption amount¥100 per ¥100 par value of investment corporation
bonds(6) Interest rate

1.2% per annum(7) Unit Price¥100 million(8) Method of Offering

Public offering(9) Subscription dateJuly 23, 2010(10) Payment dateJuly 30, 2010(11)Collateral

No secured mortgage or guarantee is applicableto, and no assets are specifically reserved ascollateral for, investment corporation bonds.

(12)Method and Date of Redemption

The entire amount of the investment corporation
bonds will be redeemed on July 29, 2016.
* The investment corporation bonds may be
repurchased and cancelled at any time after thedate of payment
unless specified to the contrary by the relevanttransfer agent.

(13) Interest Payment Dates

January 30 and July 30 each year(14) Financial covenant

Negative pledge applies(15) Ratings

A2 (Moody’s Investors Service, Inc.)
A+ (Standard & Poor’s Ratings Services)
AA－(Rating & Investment Information, Inc.)(16) Fiscal agent, issuing agent, and paying agent
Sumitomo Mitsui Banking Corporation(17) Underwriting Securities Companies
Nomura Securities Co., Ltd.
Merrill Lynch Japan Securities Co., Ltd.
(18) Use of funds

Repayment of loans

2. Reason for Issue

The investment corporation bonds are issued
with the intent of extending the term forinterest-bearing liabilities and improving thefixed interest rate.

3. Amount, Use and Expected Dates of Expenditure of Capital to be Procured(1) Amount of capital to be procured (estimated amount net of costs and expenses)¥6,960,000,000(2) Specific use and expected dates of expenditure of capital to be procured
Applicable to part of the repayments for short-term borrowings scheduled for July 30,2010.

4. Status of debts payable, etc. after issue of investment corporation bonds(Unit: billion yen)
Before this event

After this event

ChangeShort-term debt

30.5

23.5

▲7

Long-term debt
Investment
corporation bondsTotal
interest-bearing debt

65.5

65.5

－10.0

17.0

▲7

106.0

106.0

7

Interest-bearing debt
56.7%
56.7%
ratio
Long terminterest-bearing debt
71.2%
77.8%
ratio
(*1) The following formula was used to calculate the interest-bearing debt ratio.

－6.6(interest bearing debt ratio) = (interest bearing debt) ÷ (interest bearing debt + unitholder's capital) X 100
The unitholder's capital as of today (81,102,737 thousand yen) was used.

(*2) (long term interest bearing debt ratio) = (long term debt+investment corporation bonds) ÷ (interestbearing debt) X 100(*3) All calculations of ratios were rounded to one decimal place.

5. Others
Regarding the loan repayment risk, there is no important change to the “Investmentrisks”description in the latest securities report submitted on May 27, 2010.

*This English language notice is a translation of the Japanese language notice dated July 23,2010 and was prepared solely for the convenience of and reference by, overseas investors.
NAF makes no warranties as to its accuracy or completeness.