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.

October 31, 2016
IssuerIchigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Business Administration
Tel: +81-3-3502-4891

New Loans and Interest Rate Swap
Ichigo Office REIT decided today to borrow funds via new loans and is entering into aninterest rate swap agreement to fix and lock-in the low interest rate on one of the loans.
1. Reason for New Loans
Ichigo Office REIT is using funds from today’s borrowings to acquire Ichigo Shibuya
Udagawacho Building on November 2, 2016, as announced in the October 14, 2016
release “Office Asset Acquisition (Ichigo Shibuya Udagawacho Building)”.
2. Loan Details
Term Loan VII-ALender
Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC
JPY 1,000 million
Asset acquisition and related costs
November 2, 2016
April 30, 20191
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.39% (p.a.)2
Final business day of each month following the Loan
Date (the first payment date will be November 30,
2016 and the last payment date will be the same as
the Principal Repayment Date)
No1

Term Loan VII-B
LenderLoan AmountUse of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC
JPY 1,000 million
Asset acquisition and related costs
November 2, 2016
October 31, 20231
Repayment will be made in full on the Principal
Repayment Date.
1M JPY TIBOR + 0.66% (p.a.)3
Final business day of each month following the Loan
Date (the first payment date will be November 30,
2016 and the last payment date will be the same as
the Principal Repayment Date)1No

Term Loan VII-C
LenderLoan Amount
Use of ProceedsLoan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Development Bank of Japan4
JPY 500 million
Asset acquisition and related costs
November 2, 2016
September 30, 20211
Repayment will be made in full on the Principal
Repayment Date.
0.67503% (fixed rate)
Final business day of January, April, July, andOctober following the Loan Date (the first payment
date will be January 31, 2017 and the last payment
date will be the same as the Principal RepaymentDate)
NoTerm Loan VII-DLender
Loan Amount
Use of ProceedsLoan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Development Bank of Japan4
JPY 500 million
Asset acquisition and related costs
November 2, 2016
January 31, 20221
Repayment will be made in full on the Principal
Repayment Date.
0.70801% (fixed rate)
Final business day of January, April, July, andOctober following the Loan Date (the first payment
date will be January 31, 2017 and the last payment
date will be the same as the Principal Repayment
Date)
No1

In the event the date is not a business day, repayment shall be made on the next
business day. If the next business day is the following month, then the repayment
shall be made on the previous business day.
2
From November 2, 2016 until November 29, 2016, the interest rate of Term Loan
2

VII-A is 0.41819%. The interest rate following that period will be announced assoon as it has been decided.
3
From November 2, 2016 until November 29, 2016, the interest rate of Term VII-B is0.68819%. As described in Section 3 below, the interest rate is fixed as a result ofthe interest rate swap.
4This is the first time that Ichigo Office REIT has borrowed funds from the Development
Bank of Japan.
3. Interest Rate Swap(a) Reason
To fix the interest payment amount of Term Loan VII-B and hedge against a risein interest rates.
(b) Swap Details
Term Loan VII-B
Counterparty
Notional Principal
Contract Date
Commencement Date
Termination Date
Interest Rate
Interest Payment Date

SMBC
JPY 1,000 million
October 31, 2016
November 2, 2016
October 31, 20231
Fixed Interest Rate to be Paid: 0.845%2
Floating Interest Rate to be Received:
1M JPY TIBOR + 0.66% (p.a.)
Final business day of each month following the LoanDate (the first payment date will be November 30,
2016 and the last payment date will be the same as
the Principal Repayment Date)1

1

In the event the date is not a business day, repayment shall be made on the next
business day. If the next business day is the following month, then the repayment
shall be made on the previous business day.
2
As a result of the interest rate swap, the interest rate for Term Loan VII-B is fixed at
0.845%.
4. Earnings Outlook
The impact of the new loans on Ichigo Office REIT’s April 2017 and October 2017
period earnings is minimal. Therefore, there is no revision to Ichigo Office REIT’s
earnings and dividend forecast announced in the October 28, 2016 release “Earningsand Dividend Forecast Revision for the April 2017 Fiscal Period and Forecast for theOctober 2017 Fiscal Period.”
5. OtherRisks related to this loan have no material impact on the “Investment Risks”
described in the latest Securities Report submitted July 25, 2016.

3

Reference: Ichigo Office REIT Loan Details
Outstanding Loan Balance (as of November 2, 2016)(million yen)
Before Today’sTransactions(A)After Today’s
Transactions(B)

Short-term borrowings

000

Long-term borrowings(due within one year)1294

980+686

Long-term borrowings

96,84099,080+2,240Total borrowings

97,135100,061+2,926000

Total borrowings andinvestment corporation bonds

97,135100,061+2,926

Other interest-bearing liabilities

000

Total interest-bearing liabilities

97,135100,061+2,926

Investment corporation bonds

1

Change(B) - (A)Includes partial repayments of existing loans

Lender Distribution (as of November 2, 2016)
Kagawa Bank
1%
ORIX Bank2%Nishi-Nippon City Bank
1%

Development Bankof Japan1 1%

Bank of Fukuoka
3%
Resona Bank
9%

SMBC
27%

Aozora Bank
10%

Mizuho Bank
16%

Shinsei Bank
13%
BTMU
11%

Mizuho Trust
1%1This is the first time that Ichigo Office REIT has borrowed funds from theDevelopment Bank of Japan.

4Loan Repayment Date Distribution (as of November 2, 2016)(million yen)
20,000Existing Borrowings

New Borrowings

15,000

9,563

10,0009,574

10,233

8,938
6,527

6,867

9,639

9,629

500

500

9,139

9,129

9,633

9,623

7,263

1,000

5,000

5,867
1,000

700

1,0000
Apr 2017

Oct 2017

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Apr 2020

5Oct 2020

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023

Oct 2023