<Provisional translation>
March 29, 2013
For Immediate Release
REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Yoshihiro Nakano
General Manager, Corporate Planning Dept.
Email: hankyureit-ir@hankyu-rt.jp

Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Interests
Hankyu REIT, Inc. (hereafter “Hankyu REIT”) announced that it today decided to make the following
acquisition of assets.
Details1.

Overview of Acquisition(1) HANKYU NISHINOMIYA GARDENS(i)

Asset to be acquired:Real estate trust beneficiary interests(Trustee: Mitsubishi UFJ Trust and Banking Corporation)(ii) Property name:

HANKYU NISHINOMIYA GARDENS(iii) Proposed acquisition price: 18,300,000,000 yen(excluding acquisition-related expenses, property tax, city planningtax and consumption tax, among others)(iv) Appraised value:

20,300,000,000 yen (Date of appraisal: March 21, 2013)(v) Proposed acquisition date:

April 16, 2013(vi) Seller:

Hankyu Corporation(vii) Acquisition funds:

Corporate funds (plan to use the funds from the partial transfer of
HEP Five and transfer of NU chayamachi)

Note: The acquisition of 28% quasi co-ownership of the real estate trust beneficiary interests of
the land and buildings of the property.
(2) Hankyu Corporation Head Office Building(i)

Asset to be acquired:Real estate trust beneficiary interests(Trustee: Sumitomo Mitsui Trust Bank, Limited)(ii) Property name:Hankyu Corporation Head Office Building(iii) Proposed acquisition price: 10,200,000,000 yen(excluding acquisition-related expenses, property tax, city planning1

tax and consumption tax, among others)(iv) Appraised value:

10,200,000,000 yen (Date of appraisal: February 28, 2013)(v) Proposed acquisition date:

April 10, 2013(vi) Seller:

Kairos Funding GK(vii) Acquisition funds:

Corporate funds (plan is to use the funds from the partial transfer of
HEP Five)

2.

Reason for Acquisition
Hankyu REIT decided that, along with transferring two retail facilities in the Umeda area held by Hankyu
REIT in light of such factors as intensifying competition with surrounding facilities as stated in the“Notice Concerning Transfer of Domestic Real Estate Trust Beneficiary Interests” dated today, it will
acquire these two properties (the transfer and acquisition, hereafter the “Asset Replacement”). Hankyu
REIT decided to carry out the Asset Replacement in an aim to enhance the portfolio NOI yield, while
maintaining portfolio quality.
(1) HANKYU NISHINOMIYA GARDENS
The property, which opened in 2008 as a redevelopment of the former site of Hankyu Nishinomiya
Stadium, is one of the largest shopping centers in western Japan.
22
The property has a size of approximately 70,000m in lot area, approximately 247,000m in total

floor area and approximately 107,000m2 in leased area, which is the area of the retail facility. The
parking garage space is divided into the three locations of South Parking, Central Parking and
Department Store Parking, boasting a capacity of 3,000 vehicles in total.
The anchor stores are Nishinomiya Hankyu (business category: department store), Izumiya
Nishinomiya Gardens Store (business category: GMS) and Toho Cinemas Nishinomiya OS (cinema
complex). The total number of stores is 268. In addition, there is a rooftop garden (Sky Garden).
The area where the property is located is midway between Osaka and Kobe. The area’s trade area
is favorable, even within the Kansai region, and has an abundant population volume, which bytrade area is 340,000 within 3km and 780,000 within 5km. In addition, the property has excellent
access as it is directly connected by a deck to Nishinomiya-kitaguchi Station on the Hankyu
Railway Kobe Line and Imazu Line, which is a major station that ranks third behind Umeda Stationand Sannomiya Station in the number of passengers out of all Hankyu Railway lines.
(2) Hankyu Corporation Head Office Building
The property is the core base of the Hankyu Hanshin Holdings Group. It is located in the Umeda
area, the largest retail business concentration in western Japan. Being within approximately 3
minutes walking distance from Hankyu Umeda Station and also within approximately 10 minutes
walking distance from Umeda Station on the Subway Midosuji Line and JR Osaka Station, it is in ahighly convenient location for transport.
The property is an office building constructed in 1992. It is large in size with 17 floors above groundand a total floor area of 8,279 tsubo. The air conditioning system comprises two systems located at
the north and south each combining a central unit and a perimeter induction unit. The standard floor
ceiling height is 2,600mm (excluding the 100mm access floor). The power outlet capacity is2

2

50VA/m . The floor load capacity is 300kg/m . These and other features make the property alarge-scale building with also a high standard of facility support. In addition, the pale and soft color
2

of the property’s exterior complements the shrubbery of the public spaces, producing a bright andopen space.
With the principal tenant being Hankyu Corporation and occupied by the Hankyu Corporation Head
Office, Hankyu Hanshin Holdings, Inc. and others, the property is a central property to the Hankyu
Hanshin Holdings Group.
3.

Details of Assets to be Acquired(1) HANKYU NISHINOMIYA GARDENS
Property name

HANKYU NISHINOMIYA GARDENS

Specified asset type

Trust beneficiary interests (quasi co-ownership: 28% interest)

Proposed acquisition price

18,300,000,000 yen

Appraised value

20,300,000,000 yen (Date of appraisal: March 21, 2013)(Appraisal organization: The Tanizawa Sogo Appraisal Co., Ltd.)

Location Address

14-2, Takamatsu-cho, Nishinomiya-shi, Hyogo

Land

Building Month/Year built

Building coverage

80% / 60%

Floor area ratio

300% / 200%

Structure / Floors

October 2008(i)

(Note 3)

Reinforced concrete
structure with flat roof /9 floors(ii) Steel-frame structurewith flat roof / 6 floors
Zone use

Neighboring

Use

(i)

Store, parking garage

commercial district

space and movie

Quasi-industrial

theater

district(ii) Parking garage space
Total floor area(i)

201,581.85m2(Note 1)

(Note 1)

(ii)

31,891.07m2

Right of ownership

Form of ownership

Right of ownership

Lot area

79,003.72m(Note 1) (Note 2)
Form of ownership2

Leased-land right
Design company

Takenaka Corporation

Construction company

Takenaka Corporation

Building recognition
organization

General Building Research Corporation of Japan(designated confirmation and inspection body)

Author of engineering report

Engineering & Risk Services Corporation (January 2013)

Property manager

Hankyu Hanshin Building Management Co., Ltd.

PML ofearthquake risk analysis

9.2% (Evaluators: Engineering & Risk Services Corporation and
OYO RMS Corporation)

Collateral

None

Note 1: The area of the property’s lot/buildings in total.
2
Note 2: The lot area includes a 6,255.29m area of leased land portion (that Hankyu Corporation leases from the landowner and then subleases out to the trustee).
Note 3: The matters specified in the registry. Based on the Building Standards Act: (i) 1 underground level, 7 floors
and 2 rooftop floors and (ii) 1 underground level, 6 floors and 1 rooftop floor.

3(2) Hankyu Corporation Head Office Building
Property nameHankyu Corporation Head Office Building

Specified asset type

Trust beneficiary interests

Proposed acquisition price

10,200 million yen

Appraised value

10,200 million yen (Date of appraisal: February 28, 2013)(Appraisal organization: Daiwa Real Estate Appraisal Co., Ltd.)

Location Address

1-16-1, Shibata, Kita-ku, Osaka-shi

Land

Building coverage

80%

Building Month/Year built

Floor area ratio

600% / 400%

Structure / Floors

September 1992
Steel-frame, steel-frame
reinforced concrete,
reinforced concrete
structure with flat roof /2 underground levels, 19
floors (Note)

Zone use

Commercial district
2

Use

OfficeLot area

3,396.82m

Total floor area

27,369.37m2

Form of ownership

Right of ownership

Form of ownership

Right of ownership

Design company

Takenaka Corporation

Construction company

Takenaka Corporation

Building recognition
organization

City of Osaka

Author of engineering report

Daiwa Real Estate Appraisal Co., Ltd. (January 2013)

Property manager

Hankyu Hanshin Building Management Co., Ltd.

PML ofearthquake risk analysis

3.7% (Evaluators: Engineering & Risk Services Corporation and
OYO RMS Corporation)

Collateral

None

Note: Based on the Building Standards Act: 2 underground levels, 17 floors and 2 rooftop floors.

4.

Overview of Leasing(1) HANKYU NISHINOMIYA GARDENS
Total number of tenants

1 (Note 1)

Principal tenant

Hankyu Corporation

Annual rent (corresponding to 28% quasi co-ownership interest)

1,236 million yen (Note 2)

Leasable area (corresponding to 28% quasi co-ownership interest)

65,372.42m2 (Note 3)

Leased area (corresponding to 28% quasi co-ownership interest)

65,372.42m2 (Note 3)

Occupancy rate

100% (Note 4)

Security deposits

618 million yen (Note 5)

Note 1: The total number of tenants is considered as 1 because the property is entirely leased to tenants under the
master lease method.
Note 2: The monthly rent specified in the fixed-term building lease agreement concluded on March 26, 2013,
multiplied by 12 times, and then that multiplied by 28%. The amount is rounded to the nearest million yen.
Note 3: The contractual area specified in the fixed-term building lease agreement concluded on March 26, 2013,
multiplied by 28%. The area is rounded to two decimal places.
Note 4: The ratio of leased area to leasable area.
Note 5: The amount specified in the fixed-term building lease agreement concluded on March 26, 2013, multiplied by
28%. Rounded to the nearest million yen.

4(2) Hankyu Corporation Head Office Building
Total number of tenants

1 (Note 1)

Principal tenant

Hankyu Corporation

Annual rent

719 million yen (Note 2)

Leasable area

27,369.37 m2 (Note 3)

Leased area

27,369.37m2 (Note 3)

Occupancy rate

100% (Note 4)

Security deposits

180 million yen (Note 5)

Note 1: The total number of tenants is considered as 1 because the property is entirely leased to tenants under the
master lease method.
Note 2: The monthly rent specified in the fixed-term building lease agreement concluded on November 25, 2009,
multiplied by 12 times. The amount is rounded to the nearest million yen.
Note 3: The contractual area specified in the fixed-term building lease agreement concluded on November 25, 2009.
Note 4: The ratio of leased area to leasable area.
Note 5: The amount specified in the fixed-term building lease agreement concluded on November 25, 2009. Rounded
to the nearest million yen.

5.

Overview of Sellers(1) HANKYU NISHINOMIYA GARDENS
NameHankyu Corporation

Location

1-1, Sakae-machi, Ikeda-shi, Osaka

Title and name ofrepresentative
Main business activities

Kazuo Sumi, Representative Director
Urban transportation business; real estate-related business; entertainment &communications business; distribution business

Capital

100 million yen (Note 1)

Date of establishment

October 19, 1907

Net assets and total assets

Net assets:

in immediately preceding

Total assets: 1,028,237 million yen

fiscal year

(as of March 31, 2012)

Major shareholder andshareholding ratio

144,065 million yen

Hankyu Hanshin Holdings, Inc. 100%5Capital relationships:
A unitholder (4.1% unitholding) of Hankyu REIT.
A shareholder (100% shareholding) of the asset management company
Hankyu REIT Asset Management, Inc. and thus falls under the definitionof “interested party, etc.” in the Investment Trusts Act.
Personnel relationships:
12 directors/employees have been seconded to the asset managementcompany, of which the president & representative director of the asset
management company concurrently holds the position of executive
director of Hankyu REIT.
Relationship to Hankyu
REIT or asset managementcompany

3 directors/employees concurrently hold a position at the asset
management company.
(as of the end of the previous fiscal period (November 30, 2012))
Business relationships:
Business relationships with Hankyu REIT
Rent paid 1,229 thousand yen(previous period (June 1, 2012 to November 30, 2012))
Business relationships with asset management company
An information sharing-related agreement has been entered into withthe asset management company.
Applicability as related party:
A shareholder (100% shareholding) of the asset management company
Hankyu REIT Asset Management, Inc. and thus falls under the definitionof “related party.”

Note 1: The capital as of the date of this press release.

(2) Hankyu Corporation Head Office Building
Name

Kairos Funding GK

Location

Within Tokyo Kyodo Accounting Office, 3-1-1, Marunouchi, Chiyoda-ku, Tokyo

Title and name ofRepresentative partner: ZEKUTO Holdings GIA

representative

Executor of duties: Masato Kaida

Capital100,000 yen (Note 1)

Major shareholder andshareholding ratio

The company is a special purpose company in which ZEKUTO Holdings GIA has
made investment (100%) and Hankyu Corporation and others have madeinvestment in anonymous association.
1. Acquisition, ownership, disposal, lease and management of real estate

Main business activities

2. Acquisition, ownership and disposal of trust beneficiary interests of real estate
3. Operations related to, or of ancillary relationship to, the above operations

6

Hankyu Corporation, which is a shareholder (100% shareholding) of the asset
management company Hankyu REIT Asset Management, Inc. and thus falls under
the definition of “interested party, etc.” in the Investment Trusts Act, has madesome investment in anonymous association in the company, but the company does
not fall under the definition of “interested party, etc.” in the Investment Trusts Act. In
addition, because an investment of more than 50% has not been made, theRelationship to Hankyu
REIT or asset managementcompany

company also does not fall under the definition of “interested party, etc.” in theasset management company’s rules concerning transactions involving conflicts ofinterest.
However, in accordance with the asset management company’s compliancecommittee regulations, etc., the compliance committee, as advisory body,undertakes deliberations and reports all opinions, including minority opinions, tothe asset management company’s president & representative director and board of
directors.

Note 1: The capital as of the date of this press release.

6.

Status of Property Acquirers, etc.
(1) HANKYU NISHINOMIYA GARDENS
Previous
owner
Company name
Relationship to
special interested
parties

Hankyu Corporation
See “5. Overview of Sellers”
above

Acquisition
background, reasons,Purpose of development

etc.
Acquisition date

Built in October 2008

Acquisition price－(2) Hankyu Corporation Head Office Building
Previous owner
Company name

Second previous owner

Kairos Funding GK

Hankyu REIT, Inc.

Third previous owner
Umeda Property Two Co., Ltd.
Special purpose company in

Relationship to
special interested
partieswhich Hankyu Corporation
See “5. Overview of Sellers”

Hankyu REIT itself

above(parent company of asset
management company) has
made investment inanonymous association

Acquisition
background, reasons,etc.
Acquisition date
Acquisition pricePurpose of investment

Purpose of investment

Purpose of investment

management

management

management

November 25, 2009

May 16, 2008

March 20, 2003－－

Omitted because ownershipexceeds one year

7

Fourth previous owner

Fifth previous owner(i)Company nameHankyu Corporation

Hankyu Corporation(currently Hankyu(currently Hankyu Hanshin

Hanshin Holdings, Inc.)

Holdings, Inc.)

Sixth previous owner

Not applicable(ii) Hankyu Sigma
Corporation(i)Relationship to
special interested
parties

Parent company of asset
management company

Parent company of asset(ii) Consolidated subsidiarymanagement companyof asset management－company’s parent
company (liquidated)

Acquisition
background, reasons,(i)
Purpose of self use(ii) Purpose of investment

etc.

7.

Purpose of self use－

management

Acquisition dateFebruary 28, 2003

September 28, 1992－

Acquisition price

－

－

－

Transactions with Interested Parties, etc.
Because Hankyu Corporation, which is the seller of HANKYU NISHINOMIYA GARDENS and the master
lessee of these two properties, falls under the definition of “interested party, etc.” in the Investment
Trusts Act, the agreement to transfer real estate trust beneficiary interests and the master leaseagreement have been deliberated and approved by the investment management committee, thecompliance committee and the board of directors of the asset management company in accordance withthe asset management company’s rules concerning transactions involving conflicts of interest set forthin the management guidelines, investment management committee regulations, compliance committee
regulations, etc.
Because Hankyu Hanshin Building Management Co., Ltd., to which the property management
operations for these two properties have been consigned, falls under the definition of “interested party,etc.” in the Investment Trusts Act, the property management agreement has been deliberated andapproved by the investment management committee, the compliance committee and the board of
directors of the asset management company in accordance with the asset management company’s
rules concerning transactions involving conflicts of interest set forth in the management guidelines,
investment management committee regulations, compliance committee regulations, etc.

8.

Overview of Intermediaries
Not applicable.

9.

Acquisition Process
March 29, 2013

Resolution of acquisition of two properties at the asset management company’sboard of directors’ meeting

April 10, 2013

Proposed conclusion of agreement to transfer real estate trust beneficiary interestsand proposed acquisition of Hankyu Corporation Head Office Building

8

April 16, 2013

Proposed conclusion of agreement to transfer real estate trust beneficiary interestsand proposed acquisition of HANKYU NISHINOMIYA GARDENS

10. Future Outlook
The acquisition of these properties will have minimal influence on the conditions surrounding themanagement of Hankyu REIT’s assets for the fiscal period ending May 2013 (December 1, 2012 to
May 31, 2013) and there is thus no revision to the forecasts for such.

••

The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka
Securities Exchange and Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction
trade newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.
Hankyu REIT website: http://www.hankyu-reit.jp/eng/<Attached Materials>
・Reference Material 1 Overview of Appraisal Report
・Reference Material 2 Table of Real Estate Portfolio After the Asset Replacement
・Reference Material 3 Property Photograph, and Map of Location and Surrounding Area

9

Reference Material 1<Overview of Appraisal Report>
PROPERTY NAME
Appraised value
Appraisal organization
Date of appraisal

HANKYU NISHINOMIYA GARDENS
20,300,000,000 yen
The Tanizawa Sogo Appraisal Co., Ltd.
March 21, 2013
Item

Value indicated by the income approach*

Value using the direct capitalization method(1) Operating revenues (a + b − c)a Income from rental fees, etc.

Value

Basis for Valuation

72,500,000,000 yen

Provisional calculation with weight on the DCF
method and verified from the direct capitalization
method73,800,000,000 yen－

4,413,600,000 yen－

4,413,600,000 yen

Assessment of market rent with existing master
lease
rent
by
verification
basedonmarket-rent-based
subleasing
business
revenues/expensesb Other income

0 yen

－

c Loss from non-occupancy, etc.

0 yen

Not recorded, taking into consideration the leaseformat (vacancy risks taken into account incapitalization rate assessment, etc.)(2) Operating costs (a + b + c + d + e + f + g)

534,266,818 yen

a Maintenance/Administrative fees, etc.

0 yen

Not recorded, taking into consideration the leaseformatb Utilities

0 yen

Not recorded, taking into consideration the leaseformatc Repairs

37,431,000 yen

Assessment based on engineering report, similarcases, etc.

d Property management fees

3,600,000 yen

e Public charges and taxes

426,450,050 yen－

Based on projected amount
Assessment based on materials on fiscal 2012 tax
amountf Casualty insurance premiums

17,726,000 yen

Based on projected amountg Other expenses

49,059,768 yen

Recorded payable ground rent, road occupancy fees,etc.

(3) Net operating income (NOI = (1) − (2))

3,879,333,182 yen(4) Operating profit on lump-sum payments

44,136,000 yen

Assessment based on existing lease agreement
content, surrounding market trends, etc.

(5) Capital expenditures

87,339,000 yen

Assessment based on engineering report, similarcases, etc.

(6) Net cash flow (NCF = (3) + (4) − (5))

3,836,130,182 yen(7) Capitalization rate
Value using the discounted cash flow (DCF) method

5.2%
71,900,000,000 yen－－
Assessment taking as reference the market-derived
capitalization rate, etc. of similar real estate－

Discount rate per period

5.3%

Assessment taking into account the appraised realestate’s regional characteristics, property-specificrisks, etc.

Terminal capitalization rate

5.5%

Assessment factoring in future uncertainties, etc. into
the capitalization rate

Value indicated by the cost approach*

69,000,000,000 yen－

Land ratio

69.8%

－

Building ratio

30.2%

－

10

Special items toconsider at thetime of making
adjustments toprovisional
calculations anddeciding theappraised value

The appraised real estate is a large retail facility that opened in the fall of 2008 as a result of redevelopment of theformer site of Hankyu Nishinomiya Stadium (formerly Hankyu Nishinomiya Kyujo) located in a commercial district along
the Yamate-kansen Street in an approximately 250m vicinity to the southeast of Hankyu Railway Nishinomiya-kitaguchi
Station. In addition to the location conditions, building grade, etc., the trade area population and customers’ purchasing
power, etc. are excellent and the ability to attract customers, centering on the cities between Osaka and Kobe, is high.
The appraisal decision was based on the “rental building and its lot (partial leased-land right)” category, setting thevalue indicated by the income approach assessed using both the direct capitalization method and DCF method as thestandard and verified from the value indicated by the cost approach to derive the value of the block of buildings and its
lot, and then that value multiplied by the ownership interest for which the appraisal is being conducted (28%). As aresult, the appraised value (market value based on special consideration) was decided at 20,300,000,000 yen.
* The value indicated by the income approach and the value indicated by the cost approach above is the value
corresponding to the block of buildings and its lot.

The appraised value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different appraised value, depending on the realestate appraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither aguarantee nor an obligation, now or into the future, of a sale or purchase at that appraised value.

11

<Overview of Appraisal Report>
PROPERTY NAME
Appraised value
Appraisal organization
Date of appraisal

Hankyu Corporation Head Office Building
10,200,000,000 yen
Daiwa Real Estate Appraisal Co., Ltd.
February 28, 2013
Item

Value indicated by the income approach*
Value using the direct capitalization method(1) Operating revenues (a + b − c)a Income from rental fees, etc.

Value

Basis for Valuation

10,200,000,000 yen
10,300,000,000 yen
719,424,000 yen
719,424,000 yen

Assessment taking into consideration the contracted
rent levels and market rent levels

b Other income

0 yen

Assessment based on actual amountc Loss from non-occupancy, etc.

0 yen

Assessment based on actual amount(2) Operating costs (a + b + c + d + e + f)a Maintenance/Administrative fees, etc.

133,467,753 yen
3,600,000 yen

b Utilities

0 yen

Assessment based on existing agreement content
Assessment based on actual amountc Repairs

24,185,083 yen

Assessment based on engineering reportd Public charges and taxes

97,415,600 yen

Assessment based on actual amounte Casualty insurance premiums

4,669,950 yen

Assessment based on quoted amountf Other expenses

3,597,120 yen

Assessment based on existing agreement content(3) Net operating income (NOI = (1) − (2))

585,956,247 yen(4) Operating profit on lump-sum payments

3,597,120 yen

Assessment taking into consideration the investment
management yield from the perspective of both theinvestment management aspect and procurement
aspect(5) Capital expenditures

83,737,500 yen

Assessment based on engineering report(6) Net cash flow (NCF = (3) + (4) − (5))

505,815,867 yen(7) Capitalization rate

Value using the discounted cash flow (DCF) method

4.9%

Assessment taking into consideration the appraisedreal estate’s location conditions, building conditions,agreement conditions, etc. in a comprehensive
manner10,200,000,000 yen

Discount rate per period

4.7%

Assessment taking into consideration the long-term
financial instruments investment yield, borrowing
rates, risks as an investment target, etc.

Terminal capitalization rate

5.1%

Assessment taking into consideration the appraisedreal estate’s location conditions, building conditions,agreement conditions, etc. in a comprehensive
mannerValue indicated by the cost approach*

8,740,000,000 yen

Land ratio

59.9%

Building ratio

40.1%

Special items toconsider at thetime of making
adjustments toprovisional
calculations anddeciding theappraised value

The appraisal decision was based on an assessment of the value indicated by the income approach using both thedirect capitalization method and DCF method at 10,200,000,000 yen and taking as reference the value indicated by thecost approach. As a result, the appraised value was decided at 10,200,000,000 yen.

The appraised value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different appraised value, depending on the realestate appraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither aguarantee nor an obligation, now or into the future, of a sale or purchase at that appraised value.

12Reference Material 2<Table of Real Estate Portfolio After the Asset Replacement>
After the Asset Replacement (as of March 29, 2013)
Property
Code

Property Name

(Note 1)

Facility(Type of Use)

RegionAcquisition Date
(Actual/Proposed)

Acquisition
Price(Actual/Proposed)(million yen)

Investment
Ratio

R1 (K)HEP Five (Note 2) (Note 3)

RetailKansaiFebruary 1, 2005

6,468

5.6%

R2 (K)

Kitano Hankyu Building

RetailKansaiFebruary 1, 2005

7,740

6.7%

R3 (K)Dew Hankyu Yamada

RetailKansaiFebruary 1, 2005

6,930

6.0%

R4 (K)

Takatsuki-Josai Shopping Center

RetailKansaiNovember 15, 2005

8,600

7.4%

R5 (K)

Nitori Ibaraki-Kita Store (site)

RetailKansaiMarch 29, 2006

1,318

1.1%

RetailOther

October 2, 2006

2,170

April 9, 2007

5

R6

Kohnan Hiroshima
Nakano-Higashi Store (site)

R7 (K)NU chayamachi (Note 3)

RetailKansaiTransfer

R8

Hotel Gracery Tamachi

RetailOther

R9 (K)

LaLaport KOSHIEN (site)

RetailR10

Richmond Hotel Hamamatsu

R11 (K)

HANKYU NISHINOMIYAGARDENS――

December 25, 2008

4,160

3.6%

KansaiJanuary 22, 2009

7,350

6.3%

RetailOther

January 22, 2009

2,100

1.8%

RetailKansai

April 16, 2013

18,30015.8%

65,141

56.1%

Subtotal
O1
O2 (K)

Shiodome East Side Building
Hankyu Corporation
Head Office Building

OfficeOther

February 29, 2008

19,025

16.4%

OfficeKansai

April 10, 2013

10,2008.8%

29,22525.2%

Subtotal
M1 (K)

1.9%

Ueroku F Building

ComplexKansaiNovember 1, 2005

2,980

2.6%

Sphere Tower Tennoz

Complex

Other

October 2, 2007

9,405

8.1%

M3 (K)LAXA Osaka

ComplexKansaiJanuary 22, 2009

5,122

4.4%

M4 (K)

Namba-Hanshin Building

ComplexKansaiJanuary 22, 2009

4,310

3.7%

Subtotal

21,817

18.8%

Total

116,184

100.0%

M2

Note 1: The properties owned by Hankyu REIT are assigned codes classified by facility (type of use) and region.
The letters on the left represent the facility (type of use): “R” is for retail-use facility, “O” is for office-use facilityand “M” is for mixed-use (complex) facility. The numerals are the numbers assigned to each facility in thechronological order of the acquisition. Also, the letter “K” in parentheses to the right of the numerals indicatesthat the property is located in the Kansai region.
Note 2: HEP Five’s acquisition price and investment ratio are the figures after partial transfer.
Note 3: For the partial transfer of HEP Five and transfer of NU chayamachi, please refer to the “Notice Concerning
Transfer of Domestic Real Estate Trust Beneficiary Interests” dated today.

13

Reference Material 3<HANKYU NISHINOMIYA GARDENS: Property Photograph><HANKYU NISHINOMIYA GARDENS:
Map of Location and Surrounding Area>

14

<Hankyu Corporation Head Office Building: Property Photo><Hankyu Corporation Head Office Building: Map of Location and Surrounding Area>

15