September 20, 2007
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.
Representative Executive Director Nobuyuki Nakai(Code number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Nobuyuki Nakai
Contact CFO and Director Morio Shibata(TEL 03-3246-3677)

Notification of Acquisition of Assets
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on theacquisition of assets, and has completed the acquisition today as shown below.
1. Overview of acquisitions
Name of Property Acquired

Type of Property
Acquired

Acquisition Price(Note 1) (yen)Park Axis Akihabara
Real Estate
1,200,000,000
Park Axis Toyocho
Real Estate
3,950,000,000
Park Axis Takinogawa
Real Estate
1,820,000,000
Park Axis Asakusabashi
Real Estate
2,717,200,000
Park Axis Marunouchi
Real Estate
1,920,000,000
Park Axis Ropponmatsu
Real Estate
1,515,000,000
Park Axis Hakataeki Minami
Real Estate
1,890,000,000
Total
15,012,200,000(Note 1) “Acquisition Price” refers to the sale price (exclusive of miscellaneous expenses for acquisition,
fixed property taxes, urban planning taxes, consumption taxes and local consumption taxes. Regarding
Property 4 above, this is the total of the sales price and price for transfer of purchase right, etc.) specified in
the real estate sales contract for the said property acquired. Regarding the transfer of purchase right etc.,
please refer to “5. Transactions with related parties, (1) Outline of transactions”, below.
Property 1
Property 2
Property 3
Property 4
Property 5
Property 6
Property 7(1) Date of conclusion of sales contract

September 14, 2007

(2) Date of handover

September 14, 2007

(3) Sellers
Properties 1,3,5,7 : Mitsui Fudosan Co., Ltd.
Property 2: Mitsui Fudosan Co., Ltd. and Kajima Corporation
Property 4: Mitsui Fudosan Residential Co., Ltd. and Yoei Co., Ltd.
(Seller of purchase right for Yoei Co., Ltd.: Mitsui Fudosan Co., Ltd.)
Property 6: Nippon Oil Real Estate Co., Ltd. and Mitsui Fudosan Co., Ltd.
(4) Acquisition fundOwn funds or loans(5) Method of payment Full payment at the time of delivery
2. Reason for Acquisition
Based on the provisions for investments and policies on asset management set forth in
the by-laws, the decision to acquire these properties was made to ensure the steady growthof the whole portfolio, and for the diversification and improvement of the investment portfolio

in Tokyo’s 23 wards and regional hub government-ordinance-designated cities.
3. Description of the properties acquired(1) Outline of the properties acquired
1) Property 1: Park Axis Akihabara
Name of property acquired
Park Axis AkihabaraType of property acquired
Real estate¥1.2 billion
Acquisition price (Note 1)
Appraising organization
Daiwa Real Estate Appraisal Corp.
Appraised value at the time of¥1.2 billion
acquisition (Note 2)
Date of value appraisal (Note 2)
August 31, 2007
Location
Residence
16-1, Kandasakuma-cho 3-chome, Chiyoda-ku, Tokyo (district
where parcel numbers and residence indications have not been
indication
implemented yet)Land
Building-to-land
80%
ratio
Floor-area ratio
500%
ZoningCommercial district
Site area (Note 3)
310.64m2
Ownership form
Proprietorship
Building
Completion date
September 27, 2006
(Note 4)Structure /Number of s tories
Flat-roofed reinforced concrete structure / 9 storeys(Note 5)Uses (Note 5)
Apartment building, storages
Gross floor area
1,683.94m2(Note 5)
Ownership form
Proprietorship
Rentable units
41
1,346.07m2
Rentable area
Existence of security interests
None
Special affairs (Note 6)
None
This property is in an excellent location in terms ofaccessibility to the closest station and public transportation. It is
4 minutes walk from Akihabara Station on the Tokyo Metro
Hibiya Line, about 5 minutes walk from Iwamoto Station on the
Toei Subway Shinjuku Line, 6 minutes walk from Akihabara
Station on the JR Yamanote Line, Sobu Line, Keihin Tohoku
Line, and Tsukuba Express, and 6 minutes walk fromSpecial features of the property
Asakusabashi Station on the JR Sobu Line.
This area is located in the city center, with good access tomajor business districts and commercial areas, and is adjacentto the Akihabara area, so demand can be expected to center on
single people who value transportation and living conveniences.
Furthermore, this property is certified as a Tokyo crime
prevention apartment building.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )141
39
1,346.07
1,266.91

2) Property 2: Park Axis Toyocho
Name of property acquired
Park Axis Toyocho
Type of property acquired
Real estate
Acquisition price (Note 1)¥3,950 million
Appraising organization
Daiwa Real Estate Appraisal Corp.
Appraised value at the time of¥3,950 million
acquisition (Note 2)
Date of value appraisal (Note 2)
July 31, 2007
Location
Residence
29-10 Shiohama 2-chome, Koto-ku, Tokyo
indication
Land
Building-to-land
60%
ratio
Floor-area ratio
300%
ZoningLight-industrial district
Site area (Note 3)
1,950.00m2
Ownership form
Proprietorship
Building
Completion date
March 22, 2007
(Note 4)Structure /Number of s tories
Flat-roofed reinforced concrete structure / 15 storeys(Note 5)Uses (Note 5)
Apartment building, parking lots for cars, storages
Gross floor area
6,909.69m2(Note 5)
Ownership form
Proprietorship
Rentable units
140
Rentable area
5,412.40m2
Existence of security interests
None
Special affairs (Note 6)
None
This property has good accessibility to the nearest station andconvenient transportation. It is located 8 minutes walk from the
Toyocho Station on the Tokyo Metro Tozai Line.
This is a good area from the aspect of transportation
Special features of the property
convenience, with good access to major business districts andcommercial areas. It has a good living environment, as its
location faces the Shiohama Canal, so rental demand can be
expected from families in addition to single people.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )

1
140
124
5,412.40
4,792.70

3) Property 3: Park Axis Takinogawa
Name of property acquired
Park Axis Takinogawa
Type of property acquired
Real estate
Acquisition price (Note 1)¥1,820 million
Appraising organization
Morii Appraisal & Investment Consulting, Inc.
Appraised value at the time of¥1,830 million
acquisition (Note 2)
Date of value appraisal (Note 2)
August 31, 2007
Location
Residence
48-11 Takinogawa 3-chome, Kita-ku, Tokyo
indication
Land
Building-to-land
60%
ratio
Floor-area ratio
200%
ZoningExclusively Residential Zone for Medium-and High-rise
Buildings (Class1)
Site area (Note 3)
1,528.25m2
Ownership form
Proprietorship
Building
Completion date
March 31, 2007
(Note 4)Structure /Number of s tories
Flat-roofed reinforced concrete structure / 7 storeys(Note 5)Uses (Note 5)
Apartment building, shop, storages
Gross floor area
3,034.20m2(Note 5)
Ownership form
Proprietorship
Rentable units
48 residentials, 1 retail
Rentable area
2,924.75m2
Existence of security interests
None
Special affairs (Note 6)
None
This property is in a good location in terms of accessibility tostations and transportation convenience. It is a 9 minutes walkfrom the Nishisugamo Station and Shin-Itabashi Station on the
Toei Subway Mita Line, and 12 minutes walk from Itabashi
Special features of the property
Station on the JR Saikyo Line.
While this property is located in a quiet residential area, it has
good access to major business districts and commercial areas,
so rental demand can be expected to center on families which
value transportation convenience and the living environment.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )1
48 residentials, 1 retail
47 residentials, 1 retail
2,924.75
2,840.22

4) Property 4: Park Axis Asakusabashi
Name of property acquired
Park Axis Asakusabashi
Type of property acquired
Real estate
Acquisition price (Note 1)¥2,717.2 million(of this, price of real estate: ¥2,638.2 million)(of this, price of purchase right, etc.: ¥79 million)
Appraising organization
Chuo Real Estate Appraisal Co., Ltd.
Appraised value at the time of¥2,720 million
acquisition (Note 2)
Date of value appraisal (Note 2)
July 31, 2007
Location
Residence
6-2 Yanagibashi 2-chome, Taito-ku, Tokyo
indication
Land
Building-to-land
80%
ratio
Floor-area ratio
700%
ZoningCommercial district
Site area (Note 3)
509.55m2
Ownership form
Proprietorship
Building
Completion dateJuly 10, 2007
(Note 4)Structure /Flat-roofed reinforced concrete structure / 14 storeys above
Number of s tories
ground and 1 underground storey(Note 5)Uses (Note 5)
Apartment building, shop, parking lots for cars, parking lots forbicycles, storages
Gross floor area
4,430.58m2(Note 5)
Ownership form
Proprietorship
Rentable units
78 residentials, 1 retail
Rentable area
3,400.78m2
Existence of security interests
None
Special affairs (Note 6)
This acquired asset was owned jointly by Mitsui Fudosan
Residential Co., Ltd. and Yoei Co., Ltd. Mitsui Fudosan Co., Ltd.
had concluded a sales contract with Yoei Co., Ltd. regarding its
joint ownership. NAF received transfer of the purchase right inthat sales contract from Mitsui Fudosan Co., Ltd., and acquired
the joint ownership share of Yoei Co., Ltd., along with acquiring
the joint ownership share from Mitsui Fudosan Residential Co.,
Ltd. NAF thereby acquired full ownership of the asset.
This property has excellent accessibility to the nearest station,with a 1 minute walk from Asakusabashi Station on the Toei
Subway Asakusa Line, and 2 minutes walk from Asakusabashi
Station on the JR Sobu Line.
This property’s surroundings are also very convenient in terms
Special features of the propertyof daily life, with many restaurants, retail stores, etc.
This area is located in the city center, with good access tomajor business districts and commercial areas, so steady rental
demand can be expected to center on single people and small
households, who value transportation convenience and theliving environment.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )1
78 residentials, 1 retail
78 residentials, 1 retail3,400.78
3,400.78

5) Property 5: Park Axis Marunouchi
Name of property acquired
Park Axis Marunouchi
Type of property acquired
Real estate
Acquisition price (Note 1)¥1,920 million
Appraising organization
Daiwa Real Estate Appraisal Corp.
Appraised value at the time of¥1,930 million
acquisition (Note 2)
Date of value appraisal (Note 2)
August 31, 2007
Location
Residence
19-3 Marunouchi 2-chome, Naka-ku, Nagoya City,
indication
Aichi Prefecture
Land
Building-to-land
80%
ratio
Floor-area ratio
600% 800%
ZoningCommercial district
Site area (Note 3)
668.20m2
Ownership form
Proprietorship
Building
Completion dateNovember 1, 2006
(Note 4)Structure /Number of s tories
Flat-roofed reinforced concrete structure / 15 storeys(Note 5)Uses (Note 5)
Apartment building, shop, pump room, warehouse, storages,
parking lots for cars
Gross floor area
4,082.16m2(Note 5)
Ownership form
Proprietorship
Rentable units
98 residentials, 1 retail
Rentable area
3,821.75m2
Existence of security interests
None
Special affairs (Note 6)
None
This property has excellent accessibility to the nearest station,with a 1 minute walk from Marunouchi Station on the Nagoya
Municipal Subway Tsurumai Line.
This area is located in the center of Nagoya City, with goodSpecial features of the property
access to major business districts, the government district, andalso to commercial districts such as the Sakae Area, so rental
demand can be expected to center on single people who valuetransportation convenience and living convenience.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )1
98 residentials, 1 retail
96 residentials, 1 retail3,821.75
3,716.70

6) Property 6: Park Axis Ropponmatsu
Name of property acquired
Park Axis Ropponmatsu
Type of property acquired
Real estate
Acquisition price (Note 1)¥1,515 million yen
Appraising organization
Morii Appraisal & Investment Consulting, Inc.
Appraised value at the time of¥1,520 million yen
acquisition (Note 2)
Date of value appraisal (Note 2)
July 31, 2007
Location
Residence
13-2 Ropponmatsu 2-chome, Chuo-ku, Fukuoka City,
indication
Fukuoka Prefecture
Land
Building-to-land
80%
ratio
Floor-area ratio
400%
ZoningCommercial district
Site area (Note 3)
880.26m2
Ownership form
Proprietorship
Building
Completion date
March 22, 2007
(Note 4)Structure /Number of s tories
Flat-roofed reinforced concrete structure / 12 storeys(Note 5)Uses (Note 5)
Apartment building, shop
Gross floor area
3,639.23m2(Note 5)
Ownership form
Proprietorship
Rentable units
111 residentials, 1 retail
Rentable area
3,473.67m2
Existence of security interests
None
Special affairs (Note 6)
None
This property has excellent accessibility to the nearest station,with a 1 minute walk from Ropponmatsu Station on the Fukuoka
City Subway Nanakuma Line. It is also located at a 1 minute
walk from Ropponmatsu Station of Nishitetsu Bus, withexcellent access by bus to Tenjin and the Hakata Ekimae area.
Special features of the property
This property also located in a good environment, as it faces
the Kyushu University Ropponmatsu Campus, so there aremany restaurants and retail stores in the surroundings, and it isalso near Ohori Park, etc. Rental demand can be expected tocenter on single people who value transportation convenienceand living convenience.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )1
111 residentials, 1 retail
90 residentials, 1 retail3,473.67
2,964.42

7) Property 7: Park Axis Hakataeki Minami
Name of property acquired
Park Axis Hakataeki Minami
Type of property acquired
Real estate
Acquisition price (Note 1)¥1,890 million
Appraising organization
Morii Appraisal & Investment Consulting, Inc.
Appraised value at the time of¥1,910 million
acquisition (Note 2)
Date of value appraisal (Note 2)
July 31, 2007
Location
Residence
5-27 Hakataeki Minami 3-chome, Hakata-ku,
indication
Fukuoka Prefecture
Land
Building-to-land
80%
ratio
Floor-area ratio
400%
ZoningCommercial district
Site area (Note 3)
1,223.03m2
Ownership form
Proprietorship
Building
Completion date
March 23, 2007
(Note 4)Structure /Number of s tories
Flat-roofed reinforced concrete structure / 12 storeys(Note 5)Uses (Note 5)
Apartment building, shop
Gross floor area
4,874.57m2(Note 5)
Ownership form
Proprietorship
Rentable units
176 residentials, 1 retail
Rentable area
4,668.29m2
Existence of security interests
None
Special affairs (Note 6)
None
This property has good accessibility to the nearest stations andairport. It is 13 minutes walk from Hakata Station on the JR
Tokaido Line, Sanyo Shinkansen Line, and Kagoshima Main
Line, and 11 minutes from Higashihie Station on the Fukuoka
Special features of the property
City Subway Airport Line.
This area adjoins the Fukuoka City center, with good access tomajor business districts and commercial areas, so rental
demand can be expected to center on single people who valuetransportation and living convenience.

Details oftenants(Note 7)

Total number of tenants
Rentable units
Rented units
2
Rentable area (m )2Rented area (m )1
176 residentials, 1 retail
168 residentials, 1 retail
4,668.29
4,482.55(Note 1) “Acquisition Price” notes the sales price (exclusive of miscellaneous expenses for acquisition, fixed
property taxes, urban planning taxes, consumption taxes and local consumption taxes. Regarding
Property 4 above, this is the total of the sales price and price for transfer of purchase right, etc.)
specified in the real estate sales contract for the property acquired. Regarding the transfer of thepurchase right etc., please refer to “5. Transactions with related parties, (1) Outline of transactions”,
below.
(Note 2) “Appraised Value at the Time of Acquisition” and “Date of Value Appraisal” are stated based on
the amount noted in the real estate appraisal report which was prepared for the property
acquired. Appraisal reports were prepared by Daiwa Real Estate Appraisal Corp. for properties
1, 2, and 5, by Morii Appraisal & Investment Consulting, Inc. for properties 3, 6, and 7, and by
Chuo Real Estate Appraisal Co., Ltd. for property 4.

(Note 3) “Site Area” of the Land item notes the acreage as entered in the register.
(Note 4) “Completion Date” of the Building item notes the date as entered in the register.
(Note 5) “Structure / Number of Storeys”, “Uses” and “Gross Floor Area” are stated based on the entries in theregister.
(Note 6) “Special Affairs” n o t e s matters which NAF recognizes as important as of today, taking into
consideration their effects on title-related matters, use, appraised value, profitability, etc. of theproperty acquired.
(Note 7) Description of the “Details of Tenants” column:(i) “Total number of Tenants” is noted as “1” where a master lease contract (blanket lease
contract) has been concluded with a master lease company. As to the properties acquired,a master lease contract has been concluded with Mitsui Fudosan Housing Lease Co., Ltd. as
the master lease company, and the above Total Number of Tenants means the total number oftenants after conclusion of the said master lease contract.
(ii) “Rentable Units” notes the number of rentable units in the property acquired.
(iii) “Rented Units” and “Rented Area” refers to the situation as of August 31, 2007 based on thedata received from the seller.
(iv) “Rentable Area” notes the total rentable area of the building of the property acquired.

(2) Outline of investigations into the state of the building
1) Property 1: Park Axis Akihabara
Commissioned investigation company
Urgent repair cost
Short term repair cost
Investigations
Repair & renewal costs thought
into the state ofnecessary over the next 12 years
the building
Replacement value
Date of report on investigations into thestate of the building
Earthquake risk
PML (Note 2)
assessment

Shimizu Corporation¥50,000 (Note 1)―¥16,745,000¥362 million
December 28, 2006
7.4%

(Note 1) This urgent repair was performed by NAF before acquiring the property.

2) Property 2: Park Axis Toyocho
Commissioned investigation company
Urgent repair cost
Short term repair cost
Investigations
Repair & renewal costs thought
into the state ofnecessary over the next 12 years
the building
Replacement value
Date of report on investigations into thestate of the building
Earthquake risk
PML (Note 2)
assessment

Takenaka Corporation――¥104,520,000¥1,404,700,000
June 29, 2007
10.8%

3) Property 3: Park Axis Takinogawa
Commissioned investigation company
Investigations
into the state of
the building

Urgent repair cost
Short term repair cost
Repair & renewal costs thought
necessary over the next 12 years
Replacement value
Date of report on investigations into thestate of the building

Sumitomo Mitsui Construction
Co., Ltd.
――¥21,739,000¥648,033,000
July 31, 2007

Earthquake risk
assessment

PML (Note 2)

5.8%4) Property 4: Park Axis Asakusabashi
Commissioned investigation company
Investigations
into the state of
the building

Earthquake risk
assessment

Urgent repair cost
Short term repair cost
Repair & renewal costs thought
necessary over the next 12 years
Replacement value
Date of report on investigations into thestate of the building
PML (Note 2)

Sumitomo Mitsui Construction
Co., Ltd.
――¥30,384,000¥914,226,000
July 31, 2007
8.9%

5) Property 5: Park Axis Marunouchi
Commissioned investigation company
Investigations
into the state of
the building

Earthquake risk
assessment

Urgent repair cost
Short term repair cost
Repair & renewal costs thought
necessary over the next 12 years
Replacement value
Date of report on investigations into thestate of the building
PML (Note 2)

Sumitomo Mitsui Construction
Co., Ltd.
――¥42,825,000¥927,872,000
February 14, 2007
6.1%

6) Property 6: Park Axis Ropponmatsu
Commissioned investigation company
Investigations
into the state of
the building

Earthquake risk
assessment

Urgent repair cost
Short term repair cost
Repair & renewal costs thought
necessary over the next 12 years
Replacement value
Date of report on investigations into thestate of the building
PML (Note 2)

Sumitomo Mitsui Construction
Co., Ltd.
――¥27,472,000¥767,103,000
September 3, 2007
2.2%

7) Property 7: Park Axis Hakataeki Minami
Commissioned investigation company
Investigations
into the state of
the building

Earthquake risk
assessment

Urgent repair cost
Short term repair cost
Repair & renewal costs thought
necessary over the next 12 years
Replacement value
Date of report on investigations into thestate of the building
PML (Note 2)

Sumitomo Mitsui Construction
Co., Ltd.
――¥31,347,000¥926,111,000
September 3, 2007
3.1%

(Note 2) This PML is based on an earthquake risk assessment report of Sumitomo Mitsui Construction Co., Ltd.
However, this earthquake risk assessment report only states the views of the commissioned
investigation company, and does not provide any guarantee. PML (Probable Maximum Loss) indicatesthe rate of expected maximum loss to be caused by earthquakes. In this case, it means the extent ofdamage to be caused by the biggest earthquake anticipated to happen within the expected duration ofservice (the biggest earthquake which happens once every 475 years = 10% chance of the biggest
earthquake happening once every 50 years), represented by the estimated cost of restoration fromthe damage as a percentage of the replacement cost.

4. Profiles of the sellers, etc.
(1) Property 1, Property 2 (Note 1), Property 3, Property 4 (Note 2), Property 5, Property 6(Note3), Property 7
Trade name
Address of Head Office
Representative
CapitalMajor Shareholders(as of March 31, 2007)

Description of
Principal Operations

Mitsui Fudosan Co., Ltd.
1-1, Nihonbashi Muromachi 2-chome, Chuo-ku, Tokyo
Hiromichi Iwasa, President and Representative Director¥174,296,119,000
The Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account)
State Street Bank and Trust Company
The Chuo Mitsui Trust and Banking Company, Ltd.
Sumitomo Mitsui Banking Corporation
State Street Bank and Trust Company 505103
Mitsui Life Insurance,Co.,Ltd.
Japan Trustee Services Bank, Ltd. (trust account no.4)
Kajima Corporation
Mitsui Sumitomo Insurance Co.,, Limited
1. Acquisition, ownership, disposition and lease of real estate.
2. Management and use of real estate.
3. Buying, selling, brokerage and appraisal of real estate.
4. Development, preparation and sales of sites for housing,industrial use, etc.
5. Construction and sale of housing.
6. Dredging and reclamation of harbors, rivers, etc.
7. Planning, execution, supervising and performing construction
contracts;
8. Ownership, leasing and management of hotels, restaurants,
leisure facilities, distribution centers, fee based nursing homes, etc.
9. Management of parking lots.
10. Management of overhead cableway operations.
11. Business based on the Real Estate Specified Joint EnterpriseLaw.
12. Operations concerning life insurance offering, and insurance
agency operations based on the Act on Non-life Insurance andAutomobile Liability Security Law.
13. Loans for real estate mortgages and other monetary loans.
14. Investment in specific purpose companies, special purpose
companies (companies as provided for in the Regulation for
Terminology, Forms and Preparation of Financial Statements) andreal-estate investment trusts, and buying and selling, brokerage andmanagement of interests in such investments.
15. Holding, buying and selling, brokerage and management of
securities and credit.
16. Investment consulting work for real estate, securities andRelationship with NAF
or investment trust
management company(2) Property 2 (Note 1)
Trade name
Address of Head Office
Representative
CapitalMajor Stockholders(as of March 31, 2007)

Description of
Principal Operations

other financial assets.
17. Cultivation, buying and selling, storing and management ofmarkets of flowers and ornamental plants, seeds and saplings,
vegetables, fruit, etc.
18. Raising milk cows and other livestock, and processing, storing,buying and selling of their products.
19. Selling of clothing, miscellaneous daily goods, cigarettes,
revenue stamps, postal stamps, food and drink.
20. Buying, selling, brokerage, import and export of civil engineeringand building materials and products related to each of the above
items.
21. Specified in-house nursing care support operations and thelending of welfare equipment in accordance with the
Nursing Care Insurance Law.
22. Sales of welfare equipment for in-house nursing care.
23. Business incidental or relevant to each of the above items.
Holds 100% of the outstanding shares of Mitsui Fudosan
Accommodations Fund Management Co., Ltd., an investmentt r u s t management company, (hereinafter referred to as the “AssetManagement Company”) and constitutes a related party(sponsoring party) as provided for in the Asset Management
Company’s internal rules.

Kajima Corporation
3-1, Motoakasaka 1-chome, Minato-ku, Tokyo
Mitsuyoshi Nakamura, President and Representative Director¥81,447,203,000
Japan Trustee Services Bank, Ltd. (trust account)
The Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account no.4)
Shoichi Kajima
Kajima Employees Shareholding Association
Sumitomo Mitsui Banking Corporation
Yoshiko Ishikawa
The Kajima Foundation
The Dai-ichi Mutual Life Insurance Company
Itsuko Atsumi
1. Contracting and consignment of civil engineering, equipment
installation, and other general construction work.
2. Investigation, research, evaluation, assessment, planning,surveying, design, supervision, purchasing, operations
management, technical guidance, and other comprehensive
engineering, management, and consulting related to construction
projects, regional development, urban development, ocean
development, space development, resource development,
environmental improvement, energy supply, etc.
3. Earth civil works, manufacturing of buildings such as homes,
buying, selling, leasing, brokerage, maintenance, management,
appraisal, evaluation and consulting for construction and realestate, along with forestation and landscaping operations.
4. Design, production, processing, sales, import, export, andleasing of construction and freight transport equipment andfacilities, various overhead cableways, cable car railways, pollution
prevention equipment and facilities, construction materials,
furniture, interior and exterior ornamental items, craftworks,
gardening products, etc.

5. Planning, development, acquisition, licensing, and sales ofindustrial property rights, copyrights, and various computer
software.
6. Business related to collection, processing, and provision ofvarious information, telecommunications business, andbroadcasting.
7. Raising of marine products, research and development on
cultivation of agricultural products, and sales of such products.
8. Maintenance, security, and janitorial work inside and outside ofbuildings.
9. Collection, transport, disposal, and recycling of general waste
and industrial waste, removal of environmental pollutants, related
consulting, and operations supplying electricity and heat.
10. Planning, construction, ownership, maintenance and operationof roads, railways, harbors, airports, rivers, water supply, sewage
systems, government office buildings, waste disposal facilities, andother public facilities and related facilities.
11. Ownership, management, and consulting for hotels and otheraccommodation facilities, sports facilities, health and medical carefacilities, rest homes and other welfare facilities, education andtraining facilities, amusement parks and other recreational facilities,
supermarkets and other commercial facilities, warehouses,
transportation centers, restaurants, etc.
12. Operations related to travel business, land, sea, and airtransport business, freight transport handling business, Non-life
insurance agency business, offering of life insurance, and labordispatch business.
13. Planning, production, and sales of various media such as
advertising, publishing, printing, images and sound, along withplanning, creating, operating, and consulting for various events
14. Retail business for food products, clothing, pharmaceuticals,
tobacco, liquor, postage stamps, books, stationary, daily sundries,
agency and sales of memberships including golf memberships,
accommodation vouchers and event vouchers, and mail orderbusiness.
15. Financial business such as loans of money and guarantee ofdebt, comprehensive lease business.
16. All business related or incidental to any of the above items.
Relationship with NAF
or investment trust
management company(3) Property 4 (Note 2)
Trade name
Address of Head Office
Representative
CapitalShareholder
Description of
Principal Operations

None

Mitsui Fudosan Residential Co., Ltd.
1-20, Muromachi 3-chome, Nihonbashi, Chuo-ku, Tokyo
Mitsuhiro Matsumoto, President and Representative Director¥40 billion
Mitsui Fudosan Co., Ltd.
1. Acquisition, ownership, disposition and lease of real estate.
2. Management and use of real estate.
3. Buying, selling and brokerage of real estate.
4. Development, preparation and sales of housing sites, etc.
5. Construction and sale of housing.
6. Design, execution, supervising and contracting for construction.
7. Business based on the Real Estate Specified Joint EnterpriseLaw.
8. Business related to offering of life insurance, Non-life insurance

agency business, and insurance agency business based on the
Automobile Liability Security Law.
9. Investment in specific purpose companies, special purpose
companies (companies as provided for in the Regulation for
Terminology, Forms and Preparation of Financial Statements) andreal-estate investment trusts, and buying, selling, brokerage andmanagement of interests in such investments.
10. Labor dispatch business.
11. Business incidental or relevant to each of the above items.
Subsidiary of Mitsui Fudosan Co., Ltd., which holds 100% of theoutstanding shares of Mitsui Fudosan Accommodations Fund
Relationship with NAF or
Management Co., Ltd., an investment trust management
investment trust
company, (hereinafter referred to as the “Asset Management
management company
Company”) and constitutes a related party (sponsoring party) as
provided for in the Asset Management Company’s internal rules.
Trade name
Address of Head Office
Representative
CapitalStockholders
Description of
Principal Operations

Relationship with NAF
or investment trust
management company(4) Property 6 (Note 3)
Trade name
Address of Head Office
Representative
CapitalStockholder
Description of
Principal Operations

Yoei Co., Ltd.
14-16, Ginza 7-Chome, Chuo-ku, Kyoto
Kakuei Miyagi, Representative Director¥300 million
Yoei Holding, Co., Ltd.
Yoko Building ME Co., Ltd.
1. Residential land development.
2. Construction and sale of homes and apartments.
3. Purchase, sales, and brokerage of land and buildings.
4. Building leasing and management.
5. Building leasing brokerage.
6. Comprehensive planning, design, and supervision for effective
real estate utilization.
7. Appraisal of real estate.
8. Sales of office products, office automation equipment, gift
products, etc.
9. Interior construction for buildings.
10. Purchase, sale and brokerage of golf memberships.
11. Parking lot management.
12. Trust beneficiary rights sales business.
13. Offering of credit cards.
None

Nippon Oil Realestate Co.,Ltd.
1-8, Sakuragicho 1-chome, Naka-ku, Yokohama,
Kanagawa Prefecture
Yoichiro Shiozawa, President and Representative Director¥500 million
Nippon Oil Corporation
1. Purchase, sales, lease, and appraisal of real estate.
2. Management of real estate.
3. Design, supervision, and contracting for general civil engineeringand construction.
4. Management of parking lots, repair and washing of vehicles.
5. Management of sports related facilities.
6. Management of vehicle training centers and education
institutions for vehicle skills.
7. Non-life insurance. Insurance agency business based on theAutomobile Liability Security Law
8. Sales of vehicle parts, various petroleum products, tobacco,stamps.
9. Toll collection and other operations on toll roads.
10. Business incidental or relevant to each of the above items.
Relationship with NAF
or investment trust
management company

None(Note 1) Property 2 is real estate that was jointly owned by the sellers: Mitsui Fudosan Co., Ltd. and Kajima
Corporation.
(Note 2) Property 4 is real estate that was jointly owned by the sellers Mitsui Fudosan Residential Co., Ltd. andYoei Co., Ltd. Mitsui Fudosan Co., Ltd. had concluded a contract for purchase of the joint ownershipshare of Yoei Co., Ltd., and NAF received transfer of the purchase right for this joint ownership sharefrom Mitsui Fudosan Co., Ltd.
(Note 3) Property 6 is real estate that was jointly owned by the sellers: Nippon Oil Real Estate Co.,Ltd.. and
Mitsui Fudosan Co., Ltd..

5. Transactions with related parties(1) Outline of transactions
1) Of the properties acquired, properties 1, 3, 5, and 7 were properties acquired from Mitsui
Fudosan Co., Ltd.
2) Of the properties acquired, regarding property 2, this was real estate jointly owned by Mitsui
Fudosan Co., Ltd. (60% of joint ownership) and Kajima Corporation (40%). NAF acquired
all ownership from both companies. The acquisition price breakdown is 2,370 million yen
for the joint ownership share of Mitsui Fudosan Co., Ltd., and 1,580 million yen for Kajima
Corporation.
3) Of the properties acquired, regarding property 4, this was real estate jointly owned by Mitsui
Fudosan Residential Co., Ltd. (60% of joint ownership) and Yoei Co., Ltd. (40%). NAF
acquired all ownership from both companies. The acquisition price breakdown is 1,608
million yen for the joint ownership share of Mitsui Fudosan Residential Co., Ltd., and
1,030.2 million yen for Yoei Co., Ltd.
Furthermore, regarding the joint ownership share of Yoei Co., Ltd., Mitsui Fudosan Co.,
Ltd. concluded a land and building sales contract with Yoei Co., Ltd. on September 29,
2006. NAF received transfer of purchase rights in that sales contract (including laterchanges), through a contract on transfer of purchase rights etc. for the sales contract(concluded on September 14, 2007 between the three parties: NAF, Mitsui Fudosan Co.,
Ltd., and Yoei Co., Ltd.). The price for purchase rights transfer, etc. in this contract was 79
million yen for Mitsui Fudosan Co. Ltd.
4) Of the properties acquired, regarding property 6, this was real estate jointly owned by Mitsui
FudosanCo., Ltd. (half of joint ownership) and Nippon Oil Real Estate Co.,Ltd. (also half).

NAF acquired all ownership from both companies. The acquisition price breakdown is 757.5

million yen for the joint ownership share of Mitsui Fudosan Co., Ltd., and 757.5 million yen
for Nippon Oil Real Estate Co.,Ltd.
5) Also, NAF is making Mitsui Fudosan Housing Lease Co., Ltd. the master lease company
and property management company for all the acquired properties.
(Note) The acquisition prices and price of transfer of purchase rights etc. noted above in “(1) Outline oftransactions” do not include miscellaneous expenses for acquisition, fixed property taxes, urban
planning taxes, consumption taxes, nor local consumption taxes.

(2) Self-established rules on transactions with related parties, etc.
Mitsui Fudosan Co., Ltd., Mitsui Fudosan Residential Co., Ltd., and Mitsui Fudosan Housing
Lease Co., Ltd. correspond to related parties etc. (Note). Therefore, in accordance with NAF’s
self-established rules on asset management concerning transactions with related parties etc.,conclusion of the agreements noted in (1) above (real estate sales contract with Mitsui FudosanCo., Ltd., contract on transfer of purchase rights etc. for the land and building sales contract andthe related memo, real estate sales contract with Mitsui Fudosan Residential Co., Ltd., and themaster lease and property management contracts with Mitsui Fudosan Housing Lease Co.,
Ltd.) have passed through deliberation and approval by the Compliance Committee of the AssetManagement Company, and deliberation and decision by the Investment Committee.
Note: Related parties etc. means related parties etc. of an investment trust outsourcing company which
has concluded an asset management trust contract with NAF, as provided for in Article 20 of
Implementation Order of the Act on Investment Trusts and Investment Corporations.

6. Status of the acquirer of the properties(1) Properties 1, 2, 3, 5, 6, and 7
Property 1: Park Axis Akihabara(16-1, Kandasakuma-cho 3-chome,
Chiyoda-ku, Tokyo)
Property 2: Park Axis Toyocho(29-10 Shiohama 2-chome, Koto-ku, Tokyo)(60% of joint ownership)
Property 3: Park Axis Takinogawa(48-11 Takinogawa 3-chome, Kita-ku, Tokyo)
Property 5: Park Axis Marunouchi(19-3 Marunouchi 2-chome, Naka-ku,
Nagoya City, Aichi Prefecture)
Property 6: Park Axis Ropponmatsu(13-2 Ropponmatsu 2-chome, Chuo-ku,
Fukuoka City, Fukuoka Prefecture)(Half of joint ownership)
Property 7: Park Axis Hakataeki Minami(5-27 Hakataeki Minami 3-chome,
Hakata-ku, Fukuoka Prefecture)(2) Property 4

Status of the owner ofthe properties

Former owner

Company Name /Name

Mitsui FudosanCo., Ltd.
Parent companyof the asset
management
corporation
Developed forthe purpose ofsale

Relationship with aparty which has a
special relationship
Background to andreasons foracquisition
Acquisition price(inclusive of
miscellaneous
expenses)Acquisition period

—
—

Owner
before theformerowner
None

Status of the ownerof the property

Company Name /NamePark Axis Asakusabashi(2-6 Yanagibashi 2-chome, Taito-ku,
Tokyo)(60% of joint ownership)

Relationship with aparty which has a
specialrelationship
Background to andreasons foracquisition
Acquisition price(inclusive of
miscellaneous
expenses)Acquisition period

Former owner
Mitsui Fudosan
Residential Co., Ltd.
100% subsidiary of
Mitsui Fudosan Co.,
Ltd., which is theparent company of
the asset
managementcompany

Owner
before theformerowner
None

Developed for the
purpose of sale――

7. Earthquake resistance matters
NAF commissioned Mitsui Fudosan Co., Ltd., an expert on building structure calculations, toclosely inspect and verify the details of earthquake-resistant structures including structure
calculation statements (specifically, to verify the structure calculations, load calculations, stresscalculations, computation on framework members and the second-order design, and then tovalidate the adequacy of the design). As a result, it has been confirmed by the above
mentioned expert Mitsui Fudosan Co., Ltd. that there are no suspicions concerning thefalsification of structure calculation and construction drawings by which aseismic capacity
required in accordance the Building Standards Act is ensured for the buildings of the properties
acquired. Based on the said confirmation, NAF has judged that the aseismic capacity requiredby the Building Standard Law has been ensured.
Furthermore, in addition to close inspections and verifications of the buildings of theproperty acquired by Mitsui Fudosan Co., Ltd., NAF requested third party investigative bodies
to re-inspect the properties (Meiho Facility Works Ltd. for properties 1 and 2, and Sumitomo
Mitsui Construction Co., Ltd. for properties 3, 4, 5, 6, and 7). No illegal manipulation such as
intentional falsification or falsification was found in the structure calculation statements, and it
has been confirmed that the structure calculations were appropriately carried out in compliancewith the relevant laws.
As of September 3, 2007, the building owners, the main contractors, and the designers of
the properties acquired are as follows. None of these parties has been publicly named by the
Ministry of Land, Infrastructure and Transport as a party who took part in any property structure
calculation statement falsifications.
In addition, NAF always examines earthquake risks during the course of due diligence uponacquisition of the property, from different perspectives to investigations for building certification
performed by an inspection and certification agency. NAF makes a decision on acquisition after
performing appropriate analysis of earthquake risks of the property to be acquired, consideringthemselves the structural earthquake-resistance of the building to be acquired, based on
drawing reviews using structure drawings, structural design outlines, etc.
Companies engaged in design of the properties acquired
Property
number

Property
name

Building ownerContractor

Property 1

Park Axis
Akihabara

Mitsui FudosanCo., Ltd.

Property 2

Park Axis
Toyocho

Mitsui FudosanCo., Ltd.

Sumitomo
MitsuiConstruction
Co., Ltd.
KajimaCorporation

Building
designcompany
Sumitomo
MitsuiConstruction
Co., Ltd.
KajimaCorporation

KajimaCorporation

Structure design
company

Building
certifier

Sumitomo
MitsuiConstruction
Co., Ltd.
KajimaCorporation(Kajima Corp.
contracted partof the design
work to Artes
Corporation)
Shinnihon
Corporation

Houseplus
Corporation,
Inc.
Houseplus
Corporation,
Inc.

Property 3

Park Axis
Takinogawa

Mitsui FudosanCo., Ltd.

Shinnihon
Corporation

Shinnihon
Corporation

Housing
Finance
Association
Japan ERI
Co., Ltd.

Property 4

Park Axis
Asakusabashi

Shinnihon
Corporation

Shinnihon
Corporation

SebtechConstruction
Research

Property 5

Park Axis
Marunouchi

Mitsui Fudosan
Residential Co.,Ltd.
Yoei Co., Ltd.
Mitsui FudosanCo., Ltd.

Park Axis
Ropponmatsu

Nippon Oil Real
Estate Co.,Ltd
Mitsui FudosanCo., Ltd.

YahagiConstruction
Co.,Ltd
Sanim
Architecture
OfficeYahagiConstruction
Co.,Ltd
Nippo
Corporation

Japan ERI
Co., Ltd.

Property 6

YahagiConstruction
Co.,Ltd
Nippo
Corporation

Property 7

Park Axis
Hakataeki
Minami

Mitsui FudosanCo., Ltd.

KyushuConstruction
Co., Ltd.

Sanim
Architecture
OfficeEspaceArchitecture
OfficeUrban
Housing
Evaluation
CenterUrban
Housing
Evaluation
CenterProfiles of third party investigative bodies (investigations of the state of the buildings,
reinvestigation of earthquake risk assessments and structure calculation statements)
Company name
Sumitomo Mitsui Construction Co., Ltd.
Address of Head
5-25, Nishi Shinjuku 7-chome, Shinjuku-ku, Tokyo
OfficeRepresentative
Hisaya Igarashi, President and Representative Director
Capital¥16,859,138,000
Description of
1. Performing on contracts, design and supervision of civilengineering, building, prestressed concrete, electrical and piping
Principal Operations
works and other construction work.
2. Design and supervision of ocean developments, regional
developments, urban developments, natural resource
developments and environmental improvements.
3. Being entrusted with engineering and consulting services such as
investigation, planning and drawing up plans pertaining to each of
the above items.
4. Acquisition, management, use, disposition and lease of realestate.
5. Buying and selling, brokerage and appraisal of real estate.
6. Manufacturing, supply, sales and lease of civil engineering andbuilding materials, prestressed concrete products, seismic isolators,
vibration controlling devices, machinery and equipment.

7. Maintenance, repair, safety and security of civil engineering
structures and buildings.
8. Business related to landscaping and gardening.
9. Development, acquisition, licensing and sales of industrial
property rights, copyrights, and software.
10. Information processing services and information provision
services.
11. Development, sales, lease, maintenance and management ofelectronic office equipment such as computers.
12. Comprehensive leasing operations.
13. Management, administration, operation and lease of nursing
homes, training, medical and sports facilities, leisure facilities suchas ski areas and amusement parks, accommodation facilities, andrestaurants.
14. Labor dispatch operations.
15. Non-life insurance agency operations.
16. Loan of money and other financial business.
17. Business related to pollution prevention.
18. Collection, transport, disposition and recycling of industrial
waste.
19. Investigation and assessment of soil and groundwatercontamination, and design, implementation and supervision ofrestoration and purification.
20. Operations incidental or relevant to each of the above items.
Relationship with NAF
or investment trust
management company

Company name
Address of Head
OfficeRepresentative
CapitalDescription of
Principal Operations

None

Shimizu Corporation
2-3, Shibaura 1-chome, Minato-ku, Tokyo
Tetsuya Nomura, President and Representative Director¥74,365,317,000
1. Executing construction work such as building, civil engineering
works and equipment installation on contract.
2. Investigation, planning, research, appraisal, assessment,
geological surveys, surveying, design, supervision, management
and consulting work related to construction work.
3. Investigation, planning, design, supervision, management andconsulting business related to regional development, urban
development, ocean development, space development, natural
resource and energy development and environmental improvement.
4. Buying and selling, lease, brokerage, management and appraisalof real estate, and related consulting work.
5. Construction, sales, lease and management of buildings such as
housing, and preparation and sale of land.
6. Beneficiary right selling operations pursuant to the TrustBusiness Law, and business pursuant to the Real Estate Specified
Joint Enterprise Law.
7. Planning, construction, ownership, maintenance, management
and operation of government office buildings, educational andcultural facilities, medical care and social welfare facilities, roads,
harbors, airports, parks, water supply and sewerage systems, otherpublic facilities, and related facilities.
8. Power generation and supply of energy such as electricity andheat, greenhouse gas emissions trading and consulting work

relevant to the such operations.
9. Soil survey and purification work on contract, waste collection,
treatment, disposal and reuse operations and consulting work
related to the such operations.
10. Design, construction, sales, lease and management of
information and communications systems and building management
systems, and related consulting work.
11. Maintenance, security and cleaning of buildings, facilities andequipment.
12. Design, manufacturing, sales, lease and brokerage of machineryand equipment, concrete products for construction, woodconstruction products, furniture and interior decorations, and sales,
lease and brokerage of construction materials.
13. Acquisition, licensing and sale of industrial property rights,
copyrights, know-how, and computer software.
14. Management of sports facilities, hotels, restaurants, rest homes,
etc. and related consulting business.
15. Sale of pharmaceuticals, medical care materials and medical
equipment and instruments, management and consulting work forsenior care homes, and home nursing care service business.
16. Planning, production and sale of information media such as
advertisements, publishing, printing and images, and planning,
management, operation and consulting work of events.
17. Land transportation operations, and management of warehouses
and delivery centers.
18. Non-life insurance agency operations, life insurance offering
operations, tourism operations and labor dispatch services.
19. Financial operations such as loaning money, offering guaranteeof debt, and purchase of claims.
20. Operations outside Japan related to each of the above items.
21. All operations incidental and related to each of the above items.
Relationship with NAF
or investment trust
management company
Company name
Address of Head
OfficeRepresentative
CapitalDescription of
Principal Operations

None

Takenaka Corporation
1-13, Honmachi 4-chome, Chuo-ku, Osaka
Toichi Takenaka, President and Representative Director¥50 billion
1. Contracting, design, and supervision for construction and civilengineering works.
2. Engineering and management, such as investigation, research,
surveying, planning, valuation, assessment, etc. for construction
works, regional development, urban development, ocean
development, space development, energy supply, environmental
improvement, etc.
3. Land civil works and construction of homes.
4. Sale, lease, brokerage, maintenance, management and appraisalof real estate, along with management of real estate investments
5. Horticulture business such as landscaping, gardening, andforestation, and related maintenance and management.
6. Manufacturing of construction machinery and tools, steel
construction materials, concrete construction products, building air
conditioning equipment, wood construction products and furniture.
Import, export, sale, lease, repair, maintenance and management ofconstruction machinery and tools, construction materials, coolingequipment for building air conditioning and furniture. Relatedresearch and development, and inspection contracting.
7. Security and janitorial services.
8. Collection, transport, disposal, and recycling of waste,environmental pollution surveys, removal of environmental pollutant
matter, supply and sale of energy such as electricity and heat.
9. Planning, construction, maintenance, and operation of public
facilities such as government office buildings, education facilities,
medical care and welfare facilities, waste disposal facilities, roads,
railways, harbors, airports, parks, water supply and sewage systems,
and related facilities.
10. Management of accommodation facilities, rest homes, sports
facilities, leisure facilities, cultural facilities, rental meeting halls,
restaurants and parking lots.
11. Acquisition, development, licensing, and sales of industrial
property rights, copyrights, know-how, computer software, etc.
12. Planning, production and sale of advertisements, publishing,printing and images, and information media related to advertising,publicity, and communications, and collection, processing andprovision of a variety of information.
13. Telecommunications and broadcasting business based on the
Telecommunications Business Law.
14. Sale, lease, maintenance and management of computers,
communications equipment, office equipment, and peripheral
equipment.
15. Sales, mail order, and brokerage of vehicles, artwork, photo
equipment, and daily sundries.
16. Non-life insurance agency business, insurance agency businessbased on the Automobile Liability Security Law, operations related tooffering of life insurance, travel business and travel agency businessbased on the Travel Agency Law, and manpower dispatchingbusiness based on the Manpower Dispatching Business Law.
17. Comprehensive leasing business18. Sale of medical care equipment and tools.
19. Consulting work related to each of the above items.
20. Work incidental to each of the above items.
Relationship with NAF
or investment trust
management company
Company name
Address of Head
OfficeRepresentative
CapitalDescription of
Principal Operations

None

Meiho Facility Works Ltd.
4, Kojimachi 5-chome, Chiyoda-ku, Tokyo
Kazutoshi Omi, President and Representative Director¥531,510,000
1. Project management (making proposals for a master plan for
construction projects, and providing comprehensive management
services as the agent of the ordering party from the design phase toconstruction completion).
2. Construction management (providing support for contractor
selection and management of the state of execution of theconstruction works, as the agent of the ordering party inconstruction projects).
3. Facility management (examination of, analysis of and making
proposals for a facility master plan according to the ordering party’s
business challenges and demands), and consulting work related tosuch facility management.
4. Complete set of building works, electrical works, piping, interior
finishing work, and construction of fire fighting facilities.

5. Design work relevant to the construction project (such asarchitectural design, electrical system design, machinery andequipment design, information equipment design, laying out of
offices, etc.).
6. Consulting operations related to design projects.
7. Sales and lease of office equipment, information andtelecommunication equipment, furniture and fixtures and interior
decorations.
8. Development, sales, lease and rental of computer hardware andsoftware.
9. Manufacturing, sales, import, export and installation of
telecommunication equipment.
10. Specified labor dispatch operations.
11. All operations incidental and related to each of the above items.
Relationship with NAF
or investment trust
management company

None

8. Outlines of brokerage
There were no brokers in transactions for the acquisition of these properties.

9. Outlook for the state of asset management after acquisition of these properties
An earnings forecast after acquisition of these properties will be included in the earnings
forecast for the period ending February 2008, which will be released at the time of theannouncement (scheduled for October 15, 2007) of the account settlement for the period ending
August 2007.
This English language notice is a translation of the Japanese language notice dated
September 14, 2007 and was prepared solely for the convenience of, and reference by,overseas investors. NAF makes no warranties as to its accuracy or completeness.

[Attached documents]
・ Portfolio after acquisition of the properties acquired (on an acquisition price basis)
・ Summary of the appraisal reports on the prices of the properties acquired
・ The external appearance and photographs of entrances to the properties acquired
・ Maps to locate the properties acquired

Portfolio after acquisition of the properties acquired (on an acquisition price basis)
Name

No.

Acquisition
Price(Note 1)

Portfolio
Share(Note 2)Chuo-ku, Tokyo

29,69624.1

Setagaya-ku, Tokyo

1,760

1.4

Location

2

Okawabata
River Point Tower
Apartment
Park Side Wings
Communities
Pier West House
Park Axis Gakugei Daigaku

3Park Axis Ichigaya

Shinjuku-ku, Tokyo

2,570

2.1

4

Park Axis Shibuya Jinnan

Shibuya-ku, Tokyo

3,230

2.6

5

Park Axis Aoyama Kotto-dori

Minato-ku, Tokyo

1,730

1.4

6

Park Axis Kagurazaka Stage

Shinjuku-ku, Tokyo

1,400

1.1

7

Park Axis Shiroganedai

Minato-ku, Tokyo

5,140

4.2

8

Park Axis Bunkyo Stage

Bunkyo-ku, Tokyo

4,440

3.6

9

Park Axis Tsukishima

Chuo-ku, Tokyo

930

0.8

10

Park Axis Otsuka

Toshima-ku, Tokyo

1,655

1.3

11

Park Axis Minami Azabu

Minato-ku, Tokyo

3,939

3.2

12

Park Axis Shibuya

Shibuya-ku, Tokyo

1,282

1.0

13

Park Axis Nihonbashi Stage

Chuo-ku, Tokyo

7,557

6.1

14

Park Axis Hamamatsucho

Minato-ku, Tokyo

2,025

1.6

15

Park Axis Hongo No Mori

Bunkyo-ku, Tokyo

2,910

2.4

16

Park Axis Tameike Sanno

Minato-ku, Tokyo

2,860

2.3

17

Park Axis Roppongi Hinokicho Park

Minato-ku, Tokyo

2,170

1.8

18

Park Axis Ochanomizu Stage

Bunkyo-ku, Tokyo

9,710

7.9

19

Park Axis Okachimachi

Taito-ku, Tokyo

1,070

0.9

20

Park Cube Hongo

Bunkyo-ku, Tokyo

1,760

1.4

21

Park Cube Kanda

Chiyoda-ku, Tokyo

2,454

2.0

22

Park Cube Ichigaya

Shinjuku-ku, Tokyo

1,794

1.5

23

Park Cube Asakusa Tawaramachi

Taito-ku, Tokyo

2,508

2.0

24

Park Cube Ueno

Taito-ku, Tokyo

2,233

1.8

28

Park Cube Ikebukuro Kanamecho

Toshima-ku, Tokyo

1,608

1.3

29

Park Axis Meguro Honcho

Meguro-ku, Tokyo

1,810

1.5

30

Park Axis Shin Itabashi

Itabashi-ku, Tokyo

3,430

2.8

31

Park Axis Akihabara

Chiyoda-ku, Tokyo

1,200

1.0

32

Park Axis Toyocho

Koto-ku, Tokyo

3,950

3.2

33

Park Axis Takinogawa

Kita-ku, Tokyo

1,820

1.5

34

Park Axis Asakusabashi

Taito-ku, Tokyo

2,717

2.2

113,359

92.0

1Tokyo 23 wards Total
25

Park Cube Keio Hachioji

Hachioji-shi, Tokyo

991

0.8

26

Park Cube Keio Hachioji 2

Hachioji-shi, Tokyo

1,130

0.9

2,121

1.7

Greater Tokyo Total (Note 3)
27

Park Axis Meieki Minami

Nakamura-ku, Nagoya-shi, Aichi

2,440

2.0

35

Park Axis Marunouchi

Naka-ku, Nagoya-shi, Aichi

1,920

1.6

36

Park Axis Ropponmatsu

Chuo-ku,Fukuoka-shi,Fukuoka

1,515

1.2

37

Park Axis Hakataeki Minami

Hakata-ku,Fukuoka-shi,Fukuoka

1,890

1.5

7,765

6.3

123,245

100.0

Other Major Cities Total (Note 4)
Total

(Note 1) “Acquisition Price” refers to the sale price (exclusive of miscellaneous expenses for acquisition, fixed property taxes,
urban planning taxes, consumption taxes and local consumption taxes) of the property acquired or the property to beacquired. Amounts less than one million yen have been rounded off.

(Note 2) “Portforio Shere” means the percentage of the acquisition price for the property acquired or the property to be acquiredcompared to the total amount, rounded to the nearest one decimal place.

(Note 3) “Greater(Note 4) “OtherTokyo ” refers to four prefectures, Tokyo (excluding Tokyo’s 23 wards), Kanagawa, Saitama and Chiba.

Major Cities” refers to the regional hub government-ordinance-designated cities.

Summary of the appraisal reports on the prices of the properties acquired(1) Park Axis Akihabara
Appraised value (specified value)
Assessment item(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Operatingrevenues

Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies etc.

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense(Thousands of yen)
1,200,000
Details
68,482

0
108

3,366
2,794
572
0
71,9563,424

068,532
2,112

Operatingexpenses(h) Utilities expense

880(i) Repair expense

1,180(j) Property management fees

2,281

Basis for assessment
Assessed stable rents etc. which can bereceived over the mid and long term,
based on levels of rents and commonsarea fees of the assessed real estate, andwhen assuming they are newly rented.
There are no utilities charges collectedfrom renters.
Assessed stable usage fees which can bereceived over the mid and long term,
based on levels of usage fees etc. whenassuming that they are newly rented.
Assessed other revenues, based on mid
and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio
and vacancy rate.
Assessed mid and long term operatinglevels, considering characteristics of theassessed property and vacancies ofcomparable real estate nearby.
Not totaled, due to consideration ofcollateral such as security deposits.
Assessed by referring to the current
contract value, considering comparable
rental apartment building maintenanceexpenses, particular characteristics of theassessed real estate, etc.
Assessed by referring to current
expenses, considering comparable rental
apartment building utilities expenses,
particular characteristics of the assessed
real estate, etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, repair expenses noted in
the engineering report, etc.
Assessed considering property
management fees of comparable
buildings.

(k) Tenant soliciting fee, etc.

1,816(l) Taxes and public dues

2,638(m) Property insurance fee

152(n) Other expenses

144(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)](o) Earnings from temporary
deposit

11,202(p) Capital expenditures(5) Net income [(4)+(o)-(p)](6) Cap rate

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
method57,330203

1,044

56,4894.6%

1,230,000

1,190,000

Assessed at 1.3 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating
rate, current contract terms and leaseterms of comparable real estate nearby,
etc. The fees include fees to find andcontract with new tenants andadministrative fees for renewals oftenants.
Assessed based on the 2007 businessyear tax register. For a mid to long term
perspective, adopts the estimated tax
amount of 11th year after construction of
the building, considering adjustments overfuture years based on this tax register
data.
Totaled based on the values shown incontracts.
Totaled based on the values shown incontracts.

Assumed security deposits held multipliedby an assumed 2.0% investment yield.
This yield is from a mid to long term
perspective, based on data independently
obtained by the real estate appraiser.
Assessed considering the number ofyears since construction, average annual
renewal costs in the engineering report,
etc.
Decided on a cap rate for apartmentbuildings located in the lowest risk
districts, after comprehensively
considering yields of transactions incomparable apartment buildings in themarket, results of a real estate investor
survey, etc. Then assessed a yield
difference in comparison with districts
which meet the above criteria, based on
cap rates for the appraisal values of theassessed real estate and for comparable
real estate, considering rental supply anddemand trends and property sales trends
in these districts, etc.

Discount rate

4.4%

Terminal cap rate

4.8%

Cost method value
Total value of land and building
Land value
Building value
Adjustment(2) Park Axis Toyocho
Appraised value (specified value)
Assessment item(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues

Operatingrevenues(Thousands of yen)

Details
228,875

015,163(d) Other revenues

11,976
10,265

Revenues from key
money, etc.
Renewal fees
Other revenues(e) Total loss from vacancies
etc.

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

The total value of the land and building is
judged to be unchanged.

3,950,000(c) Parking lot revenues(1): (a)+(b)+(c)+(d)Operatingexpenses

706,000
706,108
345,055
361,053
0Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics ofreal estate to adjust yields of financial
assets, and also considering interviews
with investors, etc.
Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
future uncertainties, liquidity, market
characteristics, etc.

1,711
0
256,014
12,6530243,360
7,858

Basis for assessment
Assessed stable rents etc. which can bereceived over the mid and long term, basedon levels of rents and commons area feesof the assessed real estate, and whenassuming they are newly rented.
There are no utilities charges collected from
renters.
Assessed stable usage fees which can bereceived over the mid and long term, basedon levels of usage fees etc. when assumingthat they are newly rented.
Assessed other revenues based on mid
and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio
and vacancy rate.
Assessed mid and long term operatinglevels, considering characteristics of theassessed property and vacancies ofcomparable real estate nearby.
Not totaled, due to consideration ofcollateral such as security deposits.
Assessed by referring to the current
contract value, considering comparable
rental apartment building maintenanceexpenses, particular characteristics of theassessed real estate, etc.

(h) Utilities expense

2,800(i) Repair expense

3,603(j) Property management fees

6,942(k) Tenant soliciting fee, etc.

7,124(l) Taxes and public dues

11,554(m) Property insurance fee

619(n) Other expenses

504(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)](o) Earnings from temporary
deposit

41,003(p) Capital expenditures(5) Net income [(4)+(o)-(p)]202,358
684

7,483

195,559

Assessed by referring to current expenses,
considering comparable rental apartmentbuilding utilities expenses, particularcharacteristics of the assessed real estate,
etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, repair expenses noted in
the engineering report, etc.
Assessed considering property
management fees of comparable buildings.
Assessed at 1.3 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating rate,current contract terms and lease terms ofcomparable real estate nearby, etc. The
fees include fees to find and contract withnew tenants and administrative fees forrenewals of tenants.
Assessed based on the 2007 business year
tax register. For a mid to long term
perspective, adopts the estimated tax
amount of 11th year after construction of
the building, considering adjustments overfuture years based on this tax register data.
Totaled based on the values shown incontracts.
Totaled based on the values shown incontracts.

Assumed security deposits held multipliedby an assumed 2.0% investment yield. This
yield is from a mid to long term perspective,
based on data independently obtained by
the real estate appraiser.
Assessed considering the number of years
since construction, average annual renewal
costs in the engineering report, etc.

(6) Cap rate

4.9%

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
methodDiscount rate

Terminal cap rate

3,990,000

3,930,000
4.7%

5.1%

Cost method value
Total value of land and building
Land value
Building value
Adjustment

2,830,000
2,827,441
1,380,600
1,446,841
0(3) Park Axis Takinogawa
Appraised value (specified value)

1,830,000

Operatingrevenues

Assessment item(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues

Decided on a cap rate for apartmentbuildings located in the lowest risk districts,
after comprehensively considering yields oftransactions in comparable apartmentbuildings in the market, results of a realestate investor survey, etc. Then assesseda yield difference in comparison with
districts which meet the above criteria,
based on cap rates for the appraisal valuesof the assessed real estate and forcomparable real estate, considering rental
supply and demand trends and property
sales trends in these districts, etc.

Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics of realestate to adjust yields of financial assets,
and also considering interviews withinvestors, etc.
Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
future uncertainties, liquidity, market
characteristics, etc.

The total value of the land and building is
judged to be unchanged.
(Thousands of yen)

Details
109,3280(c) Parking lot revenues

4,068(d) Other revenues

6,228

Basis for assessment
Assessed stable rents etc. which can bereceived over the mid and long term, basedon levels of rents and commons area feesof the assessed real estate, and whenassuming they are newly rented.
There are no utilities charges collected from
renters.
Assessed stable usage fees which can bereceived over the mid and long term, basedon levels of usage fees etc. when assumingthat they are newly rented.
Assessed other revenues, based on mid

Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies
etc.

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

3,124
2,208
896
119,6246,950

0112,6742,883(h) Utilities expense

1,200(i) Repair expense

1,664(j) Property management fees

4,813(k) Tenant soliciting fee, etc.

2,665(l) Taxes and public dues

5,760(m) Property insurance fee

293(n) Other expenses

122(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)]19,400Operatingexpenses

93,274and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio .
Assessed mid and long term operatinglevels, considering characteristics of theassessed property and vacancies ofcomparable real estate nearby.
Not totaled, due to consideration ofcollateral such as security deposits.
Assessed by referring to the current
expenses, considering comparable rental
apartment building maintenance expenses,
particular characteristics of the assessed
real estate, etc.
Assessed by referring to current expenses,
considering comparable rental apartmentbuilding utilities expenses, particularcharacteristics of the assessed real estate,
etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, and mid and long term
repair and renewal expenses noted in theengineering report.
Assessed considering property
management fees of comparable buildings.
Assessed at 1.8 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating rate,current contract terms and lease terms ofcomparable real estate nearby, etc. The
fees include fees to find and contract withnew tenants and administrative fees forrenewals of tenants.
For the land, this was assessed based on
the 2007 business year tax register,
considering the special measures for small
residential lots. For the building, this wasassessed based on replacement cost,considering adjustments for the passage oftime, etc.
Assessed by considering insurance rates
for comparable buildings, etc.
Totaled based on the values shown incontracts.

(o) Earnings from temporary
deposit(p) Capital expenditures(5) Net income [(4)+(o)-(p)](6) Cap rate

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
methodDiscount rate

Terminal cap rate

365

1,268

92,371
5.0%

Decided on a cap rate for apartmentbuildings located in the lowest risk districts,
after comprehensively considering yields oftransactions in comparable apartmentbuildings in the market, results of a realestate investor survey, etc. Then assesseda yield difference in comparison with
districts which meet the above criteria,
based on cap rates for the appraisal valuesof the assessed real estate and forcomparable real estate, considering rental
supply and demand trends and property
sales trends in these districts, etc.

1,850,000

1,810,000
4.7%

5.3%

Cost method value
Total value of land and building
Land value
Building value
Adjustment

1,410,000
1,410,000
741,000
668,000
0(4) Park Axis Asakusabashi
Appraised value (specified value)

2,720,000

Assessment item

Assumed security deposits held multipliedby an assumed 2.0% investment yield. This
yield is from a mid to long term perspective,
based on data independently obtained by
the real estate appraiser.
Assessed considering the number of years
since construction, mid and long term repair
and renewal costs in the engineering
report, etc.

Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics of realestate to adjust yields of financial assets,
and also considering interviews withinvestors, etc.
Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
future uncertainties, liquidity, market
characteristics, etc.

The total value of the land and building is
judged to be unchanged.
(Thousands of yen)

Details

Basis for assessment

(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues

Operatingrevenues

173,0640(c) Parking lot revenues

5,040(d) Other revenues

6,065
3,592

Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies
etc.

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

2,437
36

184,1696,937

0
177,232
7,347

Operatingexpenses(h) Utilities expense

1,967(i) Repair expense

3,725(j) Property management fees

6,069

Assessed stable rents etc. which can bereceived over the mid and long term, basedon the levels of rents and commons area
fees when one assumes average rents(based on tenant acquisition conditions)and when one assumes that the appraisedreal estate is newly rented.
There are no utilities charges collected fromsub-lessees.
Assessed stable rents etc. which can bereceived over the mid and long term, basedon the level of usage fees when one
assumes average rents (based on tenantacquisition conditions) and when one
assumes that the appraised real estate is
newly rented.
Assessed other revenues, based on mid
and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio.
Motorcycle parking place usage fees arerecorded as other revenues.
Assessed mid and long term operatinglevels, considering characteristics of theassessed property, and vacancies ofcomparable real estate which is in a
relationship such as substitution or acompetitive relationship in a similar districtof the same supply/demand zone.
Not totaled, due to consideration ofcollateral such as security deposits.
Assessed by referring to the current
expenses, considering comparable rental
apartment building maintenance expenses,
particular characteristics of the assessed
real estate, etc.
Assessed by considering comparable rental
apartment building utilities expenses,
particular characteristics of the assessed
real estate, etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, repair expenses noted in
the engineering report, etc.
Assessed considering property
management fees of comparable buildings.

(k) Tenant soliciting fee, etc.

1,912(l) Taxes and public dues

10,870(m) Property insurance fee

548(n) Other expenses(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)](o) Earnings from temporary
deposit(p) Capital expenditures(5) Net income [(4)+(o)-(p)](6) Cap rate

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
method0Assessed at 1.5 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating rate,current contract terms and lease terms ofcomparable real estate nearby, etc. The
fees include fees to find and contract withnew tenants and administrative fees forrenewals of tenants.
For the land, the assessed value wascalculated considering the special
measures. For the building, this wasassessed based on replacement cost of thebuilding.
Assessed by considering insurance fees
based on actual amounts, insurance rates
for comparable buildings, etc.
Totaled based on the values shown incontracts.

32,438144,794
708

2,403

143,100
5.0%

2,860,000

2,720,000

Assumed security deposits held multipliedby an assumed 2.0% investment yield. This
yield is from a mid to long term perspective,
based on data independently obtained by
the real estate appraiser.
Assessed considering the number of years
since construction, average annual renewal
costs in the engineering report, etc.
Decided on a cap rate for apartmentbuildings located in the lowest risk districts,
after comprehensively considering yields oftransactions in comparable apartmentbuildings in the market, results of a realestate investor survey, etc. Then assessedusing this cap rate as a standard, andincreasing and decreasing the yield spreadbased on location conditions, number ofyears since construction, size, level offacilities, etc., along with considering future
uncertainties, etc.

Discount rate

4.7%

Terminal cap rate

5.5%

Cost method value
Total value of land and building
Land value
Building value
Adjustment

2,070,000
2,070,000
1,111,000
961,000
0(5) Park Axis Marunouchi
Appraised value (specified value)

1,930,000

Assessment item(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues

Operatingrevenues

Details
122,74809,771(d) Other revenues

2,180
2,177

(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies
etc.

The total value of the land and building is
judged to be unchanged.
(Thousands of yen)(c) Parking lot revenues

Revenues from key
money, etc.
Renewal fees
Other revenues

Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics of realestate to adjust yields of financial assets,
and also considering interviews withinvestors, etc.
Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
risk as an investment object, future
uncertainties, liquidity, market
characteristics, etc.

04134,700
6,993(f) Loss on bad debts

0(2) Operating revenues [(1)-(e)-(f)]127,707

Basis for assessment
Assessed stable rents etc. which can bereceived over the mid and long term, basedon levels of rents and commons area feesof the assessed real estate, and whenassuming they are newly rented.
There are no utilities charges collected from
renters.
Assessed stable usage fees which can bereceived over the mid and long term, basedon levels of usage fees etc. when assumingthat they are newly rented.
Assessed other revenues, based on mid
and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio
and vacancy rate.
Assessed mid and long term operatinglevels, considering characteristics of theassessed property and vacancies ofcomparable real estate nearby.
Not totaled, due to consideration ofcollateral such as security deposits.

(g) Maintenance expense

5,029(h) Utilities expense

1,977(i) Repair expense

3,433(j) Property management fees

4,394(k) Tenant soliciting fee, etc.

2,971(l) Taxes and public dues

6,857(m) Property insurance fee

382(n) Other expenses

642(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)](o) Earnings from temporary
deposit

25,685

Operatingexpenses(p) Capital expenditures(5) Net income [(4)+(o)-(p)]102,021405

2,676

99,750Assessed by referring to the current
contract value, considering comparable
rental apartment building maintenanceexpenses, particular characteristics of theassessed real estate, etc.
Assessed by referring to recent actual
amounts, considering comparable rental
apartment building utilities expenses,
particular characteristics of the assessed
real estate, etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, repair expenses noted in
the engineering report, etc.
Assessed considering property
management fees of comparable buildings.
Assessed at 1.2 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating rate,current contract terms and lease terms ofcomparable real estate nearby, etc. The
fees include fees to find and contract withnew tenants and administrative fees forrenewals of tenants.
Assessed based on the 2007 business year
tax statements. For a mid to long term
perspective, adopts the estimated tax
amount of 11th year after construction of
the building, considering adjustments overfuture years based on this tax statements
data.
Assessed by considering insurance rates
for comparable buildings, etc.
Totaled based on the values shown incontracts.

Assumed security deposits held multipliedby an assumed 2.0% investment yield. This
yield is from a mid to long term perspective,
based on data independently obtained by
the real estate appraiser.
Assessed considering the number of years
since construction, average annual renewal
costs in the engineering report, etc.

(6) Cap rate

5.1%

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
methodDiscount rate

Terminal cap rate

1,960,000

1,920,000
4.9%

5.3%

Cost method value
Total value of land and building
Land value
Building value
Adjustment

1,450,000
1,450,938
527,724
923,2140(6) Park Axis Ropponmatsu
Appraised value (specified value)

1,520,000

Operatingrevenues

Assessment item(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues

Decided on a cap rate for apartmentbuildings located in the lowest risk districts,
after comprehensively considering yields oftransactions in comparable apartmentbuildings in the market, results of a realestate investor survey, etc. Then assesseda yield difference in comparison with
districts which meet the above criteria,
based on cap rates for the appraisal valuesof the assessed real estate and forcomparable real estate, considering rental
supply and demand trends and property
sales trends in these districts, etc.

Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics of realestate to adjust yields of financial assets,
and also considering interviews withinvestors, etc.
Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
future uncertainties, liquidity, market
characteristics, etc.

The total value of the land and building is
judged to be unchanged.
(Thousands of yen)

Details
101,9720(c) Parking lot revenues

7,104(d) Other revenues

4,300

Basis for assessment
Assessed stable rents etc. which can bereceived over the mid and long term, basedon levels of rents and commons area feesof the assessed real estate, and whenassuming they are newly rented.
There are no utilities charges collected from
renters.
Assessed stable usage fees which can bereceived over the mid and long term, basedon levels of usage fees etc. when assumingthat they are newly rented.
Assessed other revenues, based on mid

Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies
etc.

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

3,949
123
228
113,376
6,973

0
106,403
4,094(h) Utilities expense

1,512(i) Repair expense

2,372(j) Property management fees

3,676(k) Tenant soliciting fee, etc.

2,905(l) Taxes and public dues

6,312(m) Property insurance fee

409

Operatingexpenses(n) Other expenses

2,051(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)]23,331
83,072and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio .
Assessed mid and long term operatinglevels, considering characteristics of theassessed property and vacancies ofcomparable real estate nearby.
Not totaled, due to consideration ofcollateral such as security deposits.
Assessed by referring to the current
expenses, considering comparable rental
apartment building maintenance expenses,
particular characteristics of the assessed
real estate, etc.
Assessed by referring to current expenses,
considering comparable rental apartmentbuilding utilities expenses, particularcharacteristics of the assessed real estate,
etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, and mid and long term
repair and renewal expenses noted in theengineering report.
Assessed considering property
management fees of comparable buildings.
Assessed at 1.5 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating rate,current contract terms and lease terms ofcomparable real estate nearby, etc. The
fees include fees to find and contract withnew tenants and administrative fees forrenewals of tenants.
For the land, this was assessed based on
the 2007 business year tax register,
considering the special measures for small
residential lots. For the building, this wasassessed based on replacement cost,considering adjustments for the passage oftime, etc.
Assessed by considering insurance rates
for comparable buildings, etc.
Totaled based on the values shown inestimation.

(o) Earnings from temporary
deposit(p) Capital expenditures(5) Net income [(4)+(o)-(p)](6) Cap rate

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
methodDiscount rate

Terminal cap rate

427

1,603

81,896
5.3%

Decided on a cap rate for apartmentbuildings located in the lowest risk districts,
after comprehensively considering yields oftransactions in comparable apartmentbuildings in the market, results of a realestate investor survey, etc. Then assesseda yield difference in comparison with
districts which meet the above criteria,
based on cap rates for the appraisal valuesof the assessed real estate and forcomparable real estate, considering rental
supply and demand trends and property
sales trends in these districts, etc.

1,550,000

1,490,000
5.0%

5.6%

Cost method value
Total value of land and building
Land value
Building value
Adjustment

1,282,000
1,282,000
492,000
790,000
0(7) Park Axis Hakata Eki Minami
Appraised value (specified value)

1,910,000

Assessment item

Assumed security deposits held multipliedby an assumed 2.0% investment yield. This
yield is from a mid to long term perspective,
based on data independently obtained by
the real estate appraiser.
Assessed considering the number of years
since construction, mid and long term repair
and renewal costs in the engineering
report, etc.

Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics of realestate to adjust yields of financial assets,
and also considering interviews withinvestors, etc.
Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
future uncertainties, liquidity, market
characteristics, etc.

The total value of the land and building is
judged to be unchanged.
(Thousands of yen)

Details

Basis for assessment

(a) Unit rental revenues,
including commons area
fees(b) Utilities revenues

Operatingrevenues

133,7020(c) Parking lot revenues

6,996(d) Other revenues

5,503
5,060

Revenues from key
money, etc.
Renewal fees
Other revenues(1): (a)+(b)+(c)+(d)(e) Total loss from vacancies
etc.

(f) Loss on bad debts(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense

121322
146,2018,402

0137,799
6,177

Operatingexpenses(h) Utilities expense

2,032(i) Repair expense

3,041(j) Property management fees

4,586(k) Tenant soliciting fee, etc.

3,757

Assessed stable rents etc. which can bereceived over the mid and long term, basedon levels of rents and commons area feesof the assessed real estate, and whenassuming they are newly rented.
There are no utilities charges collected from
renters.
Assessed stable usage fees which can bereceived over the mid and long term, basedon levels of usage fees etc. when assumingthat they are newly rented.
Assessed other revenues, based on mid
and long term stable rent revenues which
can be received from each tenant when
new contracts are signed, and considering
the estimated number of months of key
money and annual tenant turnover ratio .
Assessed mid and long term operatinglevels, considering characteristics of theassessed property and vacancies ofcomparable real estate nearby.
Not totaled, due to consideration ofcollateral such as security deposits.
Assessed by referring to the current
expenses, considering comparable rental
apartment building maintenance expenses,
particular characteristics of the assessed
real estate, etc.
Assessed by referring to current expenses,
considering comparable rental apartmentbuilding utilities expenses, particularcharacteristics of the assessed real estate,
etc.
Assessed considering expenses to return
units to original condition accompanying
tenant turnover, and mid and long term
repair and renewal expenses noted in theengineering report.
Assessed considering property
management fees of comparable buildings.
Assessed at 1.5 months of the unit rental
revenue from above as fees, considering
annual tenant turnover ratio, operating rate,current contract terms and lease terms ofcomparable real estate nearby, etc. The
fees include fees to find and contract withnew tenants and administrative fees forrenewals of tenants.

(l) Taxes and public dues

8,504(m) Property insurance fee

510(n) Other expenses

3,084(3) Operating expenses[(g)+(h)+(i)+(j)+(k)+(l)+(m)+(n)](4) Net operating income [(2) – (3)](o) Earnings from temporary
deposit

31,691(p) Capital expenditures(5) Net income [(4)+(o)-(p)](6) Cap rate

Value of earnings calculated by the direct
capitalization method[(5)÷(6)]Value calculated by discounted cash flow
methodDiscount rate

106,108
582

1,829

104,861
5.4%

For the land, this was assessed based on
the 2007 business year tax register,
considering the special measures for small
residential lots. For the building, this wasassessed based on replacement cost,considering adjustments for the passage oftime, etc.
Assessed by considering insurance rates
for comparable buildings, etc.
Totaled based on the values shown inestimation.

Assumed security deposits held multipliedby an assumed 2.0% investment yield. This
yield is from a mid to long term perspective,
based on data independently obtained by
the real estate appraiser.
Assessed considering the number of years
since construction, mid and long term repair
and renewal costs in the engineering
report, etc.
Decided on a cap rate for apartmentbuildings located in the lowest risk districts,
after comprehensively considering yields oftransactions in comparable apartmentbuildings in the market, results of a realestate investor survey, etc. Then assesseda yield difference in comparison with
districts which meet the above criteria,
based on cap rates for the appraisal valuesof the assessed real estate and forcomparable real estate, considering rental
supply and demand trends and property
sales trends in these districts, etc.

1,940,000

1,870,000
5.1%

Assessed by a method comparing withsample transactions in comparable realestate, together with a method which
considers the specific characteristics of realestate to adjust yields of financial assets,
and also considering interviews withinvestors, etc.

Terminal cap rate

Cost method value
Total value of land and building
Land value
Building value
Adjustment

5.7%

1,525,000
1,525,000
570,000
955,000
0

Adjusts the cap rate assessed above bycomprehensively considering thecharacteristics of the net income adopted,
future uncertainties, liquidity, market
characteristics, etc.

The total value of the land and building is
judged to be unchanged.

NAF requested real estate appraisals for the properties acquired Daiwa Real EstateAppraisal Corp., Morii Appraisal & Investment Consulting, Inc., and Chuo Real EstateAppraisal Co., Ltd., based on points to note when appraising real estate from the Investment
Trust and Investment Corporation Act of Japan and based on the Act on Real EstateAppraisal (1963 Law No. 152, including later amendments) and on real estate appraisal
standards. The above figures record a summary of the real estate appraisal reports prepared.
Each corresponding appraisal valuation is the judgment and opinion of the appraiser at a
fixed point in time, with no guarantees as to the validity or accuracy of these reports, or the
possibility of transactions at the appraised values.
Yen amounts are rounded off to the nearest thousand yen.

The external appearance and photographs of entrances to the properties acquired
Park Axis Akihabara

Park Axis Toyocho

Park Axis Takinogawa

Park Axis Asakusabashi

Park Axis Marunouchi

Park Axis Ropponmatsu

Park Axis Hakataeki Minami

Maps to locate the properties acquired
Park Axis Akihabara

Park Axis Akihabara

Park Axis Toyocho

Park Axis Toyocho

Park Axis Takinogawa

Park Axis Takinogawa

Park Axis Asakusabashi

Park Axis Asakusabashi

Park Axis Marunouchi

Park Axis Marunouchi

Park Axis Ropponmatsu

Park Axis Ropponmatsu

Park Axis Hakataeki Minami

Park Axis Hakataeki Minami