Building a richer future together[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.

May 2, 2016
REIT Issuer
Ichigo 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 Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: 03-3502-4891

Notice of New Loans and Interest Rate Swaps
Ichigo Office REIT decided today to borrow funds for the acquisition of five assets asannounced in the April 8, 2016 release “Acquisition of Five Office Assets” and is entering into
interest rate swap agreements to fix and lock-in the low interest rates on the loans.
1. Reason for New Loans
In the current Stage V Lay Foundation for Sustainable Dividend Growth (November 2015 –October 2016) of its multi-year growth strategy, Ichigo Office REIT is executing on its action
plan to “Increase portfolio size and scale and be smart in portfolio restructuring” to drive
earnings growth for the REIT’s shareholders.
Consistent with this growth strategy, Ichigo Office REIT is strategically restructuring its
portfolio by selling four assets and acquiring five assets with preferential negotiation rights asannounced in the April 8, 2016 release “Acquisition of Five Office Assets.” 1
Ichigo Office REIT is conducting an early repayment of relatively high-interest loans to reduceinterest expenses, as announced in the April 14, 2016 release “Notice of Partial Repayment ofExisting Loans” and the April 28, 2016 release “Notice of Partial Repayment of Existing Loans.”
Simultaneously, Ichigo Office REIT is taking out new loans at lower interest rates and fixing theinterest rates via swaps to lock-in the low rates.
The funds from today’s borrowings, together with cash-on-hand, will be used for the acquisitionof the five assets.
1For details, please refer to the January 28, 2016 release “Sale of Portfolio Asset (Akita Sanno
Building),” the March 4, 2016 release “Sale of Portfolio Assets (Ichigo Meieki Building,Ichigo Yokohama Nishiguchi Building),” and the March 16, 2016 release “Sale of Portfolio
Asset (Ichigo Saga Building).”12. Loan Details
Syndicate Loan V-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation; Mizuho
Bank, Ltd.; The Bank ofTokyo-Mitsubishi UFJ, Ltd.; Shinsei Bank,Limited
3,900 million yen
Asset acquisition and related costs
May 9, 2016May 31, 20221
1,950,000 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be July 31, 2016 and the last
payment date will be the same as the Principal
Repayment Date)
1M JPY TIBOR + 0.60 % (p.a.)2
Final business day of each month following theLoan Date (the first payment date will be May31, 2016 and the last payment date will be thesame as the Principal Repayment Date)
NoSyndicate Loan V-B
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date

Interest Rate
Interest Payment Date

Collateralized
1

Sumitomo Mitsui Banking Corporation; Mizuho
Bank, Ltd.; The Bank ofTokyo-Mitsubishi UFJ, Ltd.; Shinsei Bank,
Limited
3,900 million yen
Asset acquisition and related costs
May 9, 2016
November 30, 20221
1,950,000 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the PrincipalRepayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be July 31, 2016 and the lastpayment date will be the same as the PrincipalRepayment Date)
1M JPY TIBOR + 0.63 % (p.a.)2
Final business day of each month following theLoan Date (the first payment date will be May31, 2016 and the last payment date will be thesame as the Principal Repayment Date)
NoIn 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 the22

immediate previous business day.
From May 9, 2016 until May 30, 2016, the interest rate of Syndicate Loan V-A is 0.62773%
and that of Syndicate Loan V-B is 0.65773%. As described in Section 3 below, the effective
interest rate remains fixed as a result of the interest rate swaps.

3. Interest Rate Swap(a) Reason
To fix the interest payment amount of Syndicate Loan V-A and Syndicate Loan V-B andhedge against a rise in interest rates.
(b) Swap Details
Syndicate Loan V-ACounterparty
Notional Principal

Sumitomo Mitsui Banking Corporation
3,900 million yen (Amortized by 1,950,000 yen
on each Partial Principal Repayment Date)
Contract Date
May 2, 2016
Commencement Date
May 9, 2016
Termination Date
May 31, 20221
Interest Rate
Fixed Interest Rate: 0.80800%
Floating Interest Rate: 1M JPY TIBOR + 0.60%
Interest Payment Date
Final business day of each month following theLoan Date (the first payment date will be May
31, 2016 and the last payment date will be thesame as the Principal Repayment Date)(Note) The effect of the interest rate swap is to fix the interest rate of the above loan at0.80800%.
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 theimmediate previous business day.
Syndicate Loan V-BCounterparty
Notional Principal

Sumitomo Mitsui Banking Corporation
3,900 million yen (Amortized by 1,950,000 yen
on each Partial Principal Repayment Date)
Contract Date
May 2, 2016
Commencement Date
May 9, 2016
Termination Date
November 30, 20222
Interest Rate
Fixed Interest Rate: 0.85800%
Floating Interest Rate: 1M JPY TIBOR + 0.63%
Interest Payment Date
Final business day of each month following theLoan Date (the first payment date will be May
31, 2016 and the last payment date will be thesame as the Principal Repayment Date)(Note) The effect of the interest rate swap is to fix the interest rate of the above loan at
0.85800%.
2

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 theimmediate previous business day.

34. Earnings Outlook
The impact of the new loans on Ichigo Office REIT’s earnings and dividend forecasts for theOctober 2016 and April 2017 fiscal periods is minimal. Therefore, there is no revision to Ichigo
Office REIT’s earnings and dividend forecast as announced on April 8, 2016.
5. OtherRisks related to this loan have no material impact on the “Investment Risks” described in thelatest Securities Report submitted January 27, 2016.

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Reference: Loan Composition after Partial Repayment
Outstanding Loan Balance (as of May 9, 2016)(million yen)
Beforeexecution(as of April 28,2016)

After execution

Short-term borrowings

000

Long-term borrowings(due within one year)2255

271

15

Long-term borrowings

78,30386,087

7,784

Total borrowings

78,55886,3587,800

000

78,55886,358

7,800

0

00

78,55886,3587,800

Investment corporation bonds
Total borrowings and investment
corporation bonds
Other interest-bearing
liabilities
Total interest-bearing
liabilities

Lender Distribution (as of May 9, 2016)
Bank of Fukuoka
2%

ORIX Bank
3%
Kagawa Bank
2%

Resona Bank
10%

SMBC
27%

Aozora Bank
11%

Mizuho Bank
17%Shinsei Bank
14%
BTMU
12%

Mizuho Trust
2%

5

ChangeLoan Repayment Date Distribution (as of May 9, 2016)
Before Today’s Transactions(million yen)
20,00015,00010,000

8,938

9,563

9,574

Apr 2020

Oct 2020

9,563

9,574

10,233
9,139

9,129

Oct 2021

Apr 2022

9,139

9,129

7,263

6,527
5,867
5,000

1,550
0
Apr 2016

Oct 2016

Apr 2017

Oct 2017

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Apr 2021

Oct 2022

Apr 2023

3,853

3,849

Oct 2022

Apr 2023

After Today’s Transactions(million yen)
20,00015,00010,000

8,938

10,233

7,2636,527
5,867
5,000

1,550
0
Apr 2016

Oct 2016

Apr 2017

Oct 2017

Apr 2018

Oct 2018

Apr 2019

6Oct 2019

Apr 2020

Oct 2020

Apr 2021

Oct 2021

Apr 2022

Decrease in Interest Rates via Today’s Transactions
Interest Rate (%)

2.00
Partial Repayment
SMBC Syndicate Loan I (Term Loan 2)
Loan Term: 5 years
Interest rate: 1.91%

1.50
Early Repayment
SMBC Syndicate Loan I (Term Loan 4)
Loan Term: 4 years 9 months
Interest rate: 1.64%

1.00

Loweredinterest rates

New Loans
Syndicate Loan V-B
Loan Term: 6 years 6 months
Interest rate: 0.85%

0.500New Loans
Syndicate Loan V-A
Loan Term: 6 years
Interest rate: 0.80%1234567

Loan Term (y ears)(Note 1) Interest rates of new loans are the fixed rates from the interest rate swaps.
(Note 2) For details of the interest rates after partial repayment and early repayment, please refer tothe April 14, 2016 release “Notice of Partial Repayment of Existing Loans” and the April28, 2016 release “Notice of Partial Repayment of Existing Loans.”

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