Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

March 23, 2017
IssuerIchigo Hotel REIT Investment Corporation (3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4892

New Loan for Acquisition of Grandpark-Inn Yokohama
Ichigo Hotel REIT today agreed on the terms of a new loan to fund the acquisition ofGrandpark-Inn Yokohama.
1. Reason for New Loan
Ichigo Hotel REIT is acquiring Grandpark-Inn Yokohama on March 27, 2017 asannounced in the February 10, 2017 release “Acquisition of Grandpark-Inn Yokohama,”
and the new loan will be used to fund the acquisition and related expenses.
2. Loan Details
Term Loan VI
LenderLoan Amount
Loan Date
Use of Proceeds
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1Sumitomo Mitsui Banking Corporation
JPY 450 million
March 27, 2017
Asset acquisition and related expenses
February 28, 20201
Lump sum repayment on the Principal Repayment
Date
1M JPY TIBOR + 0.50% (p.a.)2
Final business day of each month following theLoan Date (the first payment date will be April 28,
2017 and the last payment date will be the same as
the Principal Repayment Date)
No

In the event the date is not a business day, repayment shall be made on the next businessday. If the next business day is the following month, then the repayment shall be madeon the previous business day.

1

2From March 27, 2017 until April 27, 2017, the interest rate of Term Loan VI is 0.53052%.
For current JPY TIBOR rates, please visit the Japanese Bankers Association’s website:www.jbatibor.or.jp/english/rate

3. Earnings Outlook
The effect of this new loan has already been included in Ichigo Hotel REIT’s earningsand dividend forecasts for the July 2017 and July 2018 fiscal periods, which therefore
remain unchanged from the March 15, 2017 announcement “Financial Report for theJanuary 2017 Fiscal Period.”
4. OtherRisks related to this loan have no material impact on the “Investment Risks” described inthe latest Financial Report submitted on October 27, 2016.

2

Reference: Ichigo Hotel REIT Loan Details
Outstanding Loan Balance(JPY million)
BeforeExecution

After
Execution

ChangeShort-term bank loans–––

Long-term bank loans(due within one year)–––

Long-term bank loans

19,50019,950+450

Total bank loans

19,50019,950+450–––

19,50019,950

+450

–

––

19,50019,950+450

Bond issuanceTotal bank loans and bondissuance
Other interest-bearing
liabilities
Total interest-bearing
liabilities

Lender Distribution (as of March 27, 2017)

Bank of Fukuoka
2.5%

Nishi-Nippon CityBank
2.5%

Resona Bank
10.3%

SMBC
40.6%

Shinsei Bank
11.9%

Mizuho Bank
32.2%

3

Loan Repayment Date Distribution
Before Execution (as of January 31, 2017)(JPY million)

10,000

Average Remaining Term 4.6 years

5,250

5,000

4,500

4,500

Jul
2023

Jan
2024

3,250
2,0000Jul
2017

Jan2018

Jul2018

Jan2019

Jul2019

Jan2020

Jul2020

Jan2021

Jul
2021

Jan2022

Jul2022

Jan2023

After Execution (expected as of March 27, 2017)(JPY million)

10,000

Average Remaining Term 4.4 years■ Existing Loan

■ New Loan

5,250

4,500 4,500

5,000
3,250
2,450
450

2,0000Jul
2017

Jan
2018

Jul
2018

Jan
2019

Jul
2019

Jan
2020

Jul
2020

Jan
2021

Jul
2021

Jan
2022

Jul
2022

Jan
2023

Jul
2023

Jan
2024

(Note) Average Remaining Term is the weighted average remaining term for Ichigo
Hotel REIT’s loans.

4