December 10, 2007
To whom it may concern:
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)
Contact: (Asset Management Company)
Japan Real Estate Asset Management Co., Ltd.
Kazuhiko Arahata, CEO & President
Haruhiko Araki, General Manager, Planning Department
Phone: +81-3-3211-7921

Notice of Asset Acquisition
Announcement is hereby made that on December 10, 2007, Japan Real Estate Investment Corporation(the “Company”) decided to acquire the following asset:
1. Outline of the acquisition
1) Asset to be acquired2) Name of asset

Real property (Ownership of land and building [share of co-ownership])(Ratio of share of ownership of building: 29.7389%) (Note)
Hachioji First Square

3) Acquisition price¥2,379,112,000

4) Scheduled acquisition date

March 19, 2008

5) Seller

Sohgo Housing Co., Ltd.

6) Acquisition funds

To be determined

Note: As of December 10, 2007, the Company holds a share of ownership of the Property (50.6611% of theshare of ownership of building). Following the above acquisition of an additional share, theCompany’s share of ownership of the building will be 80.4%.

2. Reasons for the acquisition
The Company will acquire the asset based on the basic policies and investment attitude for acquisition
under the Articles of Incorporation of the Company. In particular, the following points have beenhighly evaluated in the determination of the acquisition.
(1) Improving efficiencies in operation and management of the building
With this acquisition of an additional share, the asset value can be boosted and efficiencies inoperation and management of the building can be improved.
(2) Superior location
The property is located in Hachioji City, the largest city in the Tama district of the Tokyo
metropolitan area, a highly convenient transportation junction with both rail (Keio Line and JRLines [the Chuo Line, the Yokohama Line, and the Hachiko Line] and road (National Route 16, theChuo Expressway, and National Route 20 [Koshu Kaido]) access. Specifically, the property boasts
an excellent location, situated within a one-minute walk from Keio Hachioji Station on the KeioLine and a 4-minute walk from Hachioji Station on the JR Line.
(3) Superior specifications as a office building for rent
The leasable space of the 335-tsubo standard floor area can be divided into various sizes for1

leasing purposes. The property’s specifications, including a ceiling height of 2,600 mm, an electric
capacity of 40 VA/m², an around-the-clock entry and exit security system, and a large-size parking
lot capable of accommodating 126 vehicles are sufficient not only to serve as a business base but
also to meet the diverse needs of tenants.
3. Details of the asset to be acquired
The relevant information is as set out below; provided that the information on “area,” “structure” and“completion date” is derived from the land registry and “usage” described below is among the mainusages listed in the land registry.
(1) Details of the asset to be acquired
Location
Address shownin land registry
Address
UsageArea
Land
Building
StructureLand3-547-8 Myojin-cho, Hachioji City, Tokyo and 17 other lots
Building 3-547-8 Myojin-cho, Hachioji City, Tokyo and others
3-20-6 Myojin-cho, Hachioji City, Tokyo
Office, shop
2,989.33 m² (Total land area of the building site)
18,329.98 m² (Total floor space of the entire building)*Including parking lot (127.53 m²) in the ancillary building
Steel-framed reinforced concrete structure, flat roof
Above ground: 12 floors
Below ground: 1 floor
July 1996
Hazama Corporation
Hazama Corporation

Completion dateArchitect
Constructor
Building confirmation
Hachioji Cityand inspection bodyType of ownership
OwnershipLand

Building
Acquisition priceAppraisal value(Appraisal institution)(Evaluation method)

PML value
Collateral
Property managementcompany (Note 1)(share of co-ownership in 5 lots/965.99 m²: 96,748,968,592/337,741,000,000,
share of co-ownership in 3 lots/1,273.92 m²: 11,340,170,578,272/33,774,100,000,000,
share of co-ownership in 2 lots/233.50 m²: 148,788,772,313/337,741,000,000,
share of co-ownership in 2 lots/93.88 m²: 10,715,692,933,620/33,774,100,000,000,
share of co-ownership in 1 lot/153.75 m²: 11,288,130,774,551/33,774,100,000,000)

Ownership (share of co-ownership: 2,973,890/10,000,000）¥2,379.112 million¥2,310 million(Daiwa Real Estate Appraisal Co., Ltd.)(Capitalization method: as of December 1, 2007)<Reference> Capitalization yield in direct capitalization method : 5.2%
Discount rate in DCF method : 4.9%
Final capitalization yield : 5.4%8.00% (Based on the earthquake risk assessment report that the Company
obtained in March 2005 from Tokio Marine & Nichido Risk Consulting Co.,Ltd.)
None
Sohgo Housing Co., Ltd. (Note 2)2

(Note 1) The property management company to be entrusted after the acquisition shall be described.
(Note 2) Outline of the property management company
Corporate nameSohgo Housing Co., Ltd.
Address of the registered head 2-8-1 Nishi-Gotanda, Shinagawa-ku, Tokyo
officeRepresentative
Tetsujiro Hayashi, President and Representative Director
Paid in capital¥100 million (as of November 30, 2007)
Major shareholders
Tokyu Land Corporation
The Dai-ichi Building Co., Ltd.
Takenaka Corporation
J and S Insurance Service Co., Ltd.
(as of November 30, 2007)
Principal business
Real estate business
Relationship with the Company
The Dai-ichi Mutual Life Insurance Company (Dai-ichi Mutualor the asset management
Life), a shareholder of Japan Real Estate Asset Management Co.,
companyLtd. (the asset management company), to which the Company
entrusts the management of its assets, and its closely related parties
hold a 19.5% stake (of which, 5% is directly held by Dai-ichi
Mutual Life) in Sohgo Housing Co., Ltd. Also, Dai-ichi Mutual Lifeholds a 27% stake in Japan Real Estate Asset Management Co., Ltd.
(2) Tenant details
Total number of tenants
Total leasable space
Total leased space
Trend in occupancy rates

42
3,724 m²
3,703 m²
September 30, 2005
95.3%
September 30, 2006
98.7%
September 30, 2007
99.4%
Scheduled acquisition date
To be determined
NOI (Net Operating Income)¥127 million per year
- The above figures (except NOI) are based on the shares held by the Company as of
September 30, 2007, and converted into the shares to be acquired this time.
- NOI is the estimated amount for the share to be acquired by the Company on the scheduled(Note)acquisition date, and under normal operation based on the terms and conditions of leaseagreements as of the scheduled acquisition date, etc.
* Estimated occupancy rate: 95.1%(3) Specifications for rental floor space
Ceiling heightStandard floor area
Office automation floor
Electric capacity
Air conditioning system
Floor loadOthers

2,600 mm (2,525mm for office automation floor space)
1,107 m²
Partially equipped (75mm）
40 VA/m²
Central air conditioning system
500 kg/m²
Around-the-clock entry and exit

3(4) Outline of the engineering report
i. Outline of repair items
Date of report
Preparer of report
Early repair items

Repairing expenses/Capital expenditure forthe next 15 years(Annual average for the share to beacquired by the Company)

Emergency repair items
Short-term repair items(within 1 year)
Repairing expenses
Capital expenditure
Total

ii. Description concerning utilization status of asbestos(Description on the possible use of asbestos)Sprayed materials with asbestos

December 24, 2004
Shimizu CorporationNoneNone¥5 million¥8 million¥14 million

None

4. Outline of seller
Same as the outline of the property management company described in (Note 2) of 3. (1).
5. Acquisition schedule
December 10, 2007
December 18, 2007
March 19, 2008

The acquisition of the asset was determined.
Execution of an agreement for the acquisition of the asset (scheduled)
Closing of acquisition (scheduled)

As the impact on the Company’s management performance for the fiscal period from October 1, 2007 toMarch 31, 2008 is minimal, no revision of the forecast performance will be made.
This notice is the English translation of the announcement in Japanese dated December 10, 2007 on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of this Englishtranslation.

Reference materials (attachments)- Photo: Outside view of Hachioji First Square- Information map- List of all the assets of the Company after the acquisition of this asset

4

(Reference) Photo: Outside view of Hachioji First Square

5

(Reference) Information map

6

List of all the assets of the Company after the acquisition of this asset
AreaName (Location)
Genki Medical Plaza(Chiyoda-ku, Tokyo)
Kitanomaru Square(Chiyoda-ku, Tokyo)
MD Kanda Building(Chiyoda-ku, Tokyo)
Kandabashi Park Building(Chiyoda-ku, Tokyo)
Nibancho Garden(Chiyoda-ku, Tokyo)
Mitsubishi UFJ Trust and Banking
Building (Chiyoda-ku, Tokyo)
Burex Kojimachi Building(Chiyoda-ku, Tokyo)
Sanno Grand Building(Chiyoda-ku, Tokyo)
Yurakucho Denki Building(Chiyoda-ku, Tokyo)
Kodenmacho Shin-Nihonbashi
Building(Chuo-ku, Tokyo)
Burex Kyobashi Building(Chuo-ku, Tokyo)
Ginza Sanwa Building(Chuo-ku, Tokyo)
Ryoshin Ginza East Mirror Building(Chuo-ku, Tokyo)
Harumi Center Building(Chuo-ku, Tokyo)
Aoyama Crystal Building(Minato-ku, Tokyo)

Tokyo
Metropolitan
Area(23 wards)

Acquisition
price(thousand yen)

Percentage ofportfolio

October 31, 2002

5,000,000

1.1%Real property

February 24, 2006

81,555,500

17.1%

Real property

May 31, 2002

9,520,000

2.0%Real property

August 15, 2002

4,810,000

1.0%Real property

April 1, 2005

14,700,000

3.1%Real property

March 28, 2007

44,700,000

9.4%Real property

July 29, 2005

7,000,000

1.5%January 31, 2005
April 3, 2006
Total

10,200,000

Real property

Type of asset

Acquisition date orscheduled acquisition date

Real property

10,700,000

4.4%

20,900,000

Real property

August 1, 2003

7,200,000

1.5%

Trust beneficiaryright in trust ofreal estate

September 25, 2001

3,173,000

0.7%Real property

July 22, 2002

5,250,000

1.1%Real property

March 10, 2005

16,830,000

3.5%Real property

March 15, 2005

5,353,500

1.1%Real property

December 18, 2007

26,800,000

5.6%Real property

March 14, 2003

7,680,000

1.6%

September 10, 2001

4,859,000

1.0%

September 25, 2001

2,808,000

0.6%Real property

September 1, 2004

7,830,000

1.6%Real property

September 13, 2005

9,350,000

2.0%

Trust beneficiaryright in trust ofreal estate

September 25, 2001

2,738,000

0.6%

Higashi-Gotanda 1Chome Building(Shinagawa-ku, Tokyo)

Real property

November 1, 2004

5,500,000

1.2%

Omori-Eki Higashiguchi Building(Ota-ku, Tokyo)

Trust beneficiaryright in trust ofreal estate

September 10, 2001

5,123,000

1.1%Real property

March 24, 2004

6,670,000

1.4%Real property

April 1, 2004

8,700,000

1.8%Real property

November 22, 2002

4,885,000

1.0%Real property

October 9, 2003

12,200,000

2.6%Real property

November 30, 2001

34,600,000

7.3%

3,740,000

Real property

November 14, 2003
April 1, 2004
TotalFebruary 28, 2005

8,500,000

1.8%

September 25, 2001

3,541,000

0.7%

September 25, 2001

1,728,000

0.4%

August 2, 2004

4,500,000

0.9%Shiba 2Chome Daimon Building(Minato-ku, Tokyo)
Cosmo Kanasugibashi Building(Minato-ku, Tokyo)
Shinwa Building(Shinjuku-ku, Tokyo)
Tokyo Opera City Building(Shinjuku-ku, Tokyo)
Takanawadai Building(Shinagawa-ku, Tokyo)

Nippon Brunswick Building(Shibuya-ku, Tokyo)
Yoyogi 1Chome Building(Shibuya-ku, Tokyo)
da Vinci Harajuku(Shibuya-ku, Tokyo)
Jingumae Media Square Building(Shibuya-ku, Tokyo)
Shibuya Cross Tower(Shibuya-ku, Tokyo)
Ebisu Neonato(Shibuya-ku, Tokyo)
Harmony Tower(Nakano-ku, Tokyo)
Otsuka Higashi-Ikebukuro Building(Toshima-ku, Tokyo)
Ikebukuro 2Chome Building(Toshima-ku, Tokyo)
Ikebukuro YS Building(Toshima-ku, Tokyo)

Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate

Real property
Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate
Real property

7Percentage
by area

360,000

0.9%

4,100,000

81.5%

Hachioji First Square(Hachioji City, Tokyo)
Tokyo
Metropolitan
Area(excluding 23wards)

Saitama Urawa Building(Saitama City, Saitama Prefecture)
Kawasaki Isago Building(Kawasaki City, Kanagawa Prefecture)

Real property

Real property
Trust beneficiaryright in trust ofreal estate

March 31, 2005
March 19, 2008
Total
September 25, 2001
October 11, 2001
Total

3,300,000

September 25, 2001

3,375,000

0.7%

399,732,112

84.0%

84.0%
1.5%

Total: Tokyo Metropolitan AreaHokkaido

TohokuRegion8･3 Square Kita Building(Sapporo City, Hokkaido)
Jozenji Park Building(Sendai City, Miyagi Prefecture)
Sendai Honcho Honma
Building(Sendai City, Miyagi Prefecture)

2,379,112

1.2%

5,679,112
1,232,000
1,342,000

0.5%

2.4%

2,574,000

Real property

June 1, 2007

7,100,0001.5%

Real property

January 31, 2005

1,000,0000.2%

Trust beneficiaryright in trust ofreal estate

September 25, 2001
June 28, 2006
Total
February 28, 2002
March 3, 2003
Total
October 2, 2006
November 1, 2006
Total

2,924,000

Real property

250,000

0.9%
0.7%

3,174,000
2,880,000
1,700,000
4,580,000

1.0%

3,850,000
1,300,000
5,150,000

1.1%

September 22, 2006

1,680,000

0.4%Real property

September 10, 2001

14, 533,000

3.1%Real property

August 8, 2003

1,865,000

0.4%Real property

December 20, 2001

2,650,000

0.6%

2,264,000

Real property

September 25, 2001
December 26, 2003
Total

Trust beneficiaryright in trust ofreal estate

September 25, 2001

6,934,000

February 28, 2002
Total

14,314,000

Real property

February 1, 2006

4,650,000

1.0%Real property

March 25, 2004

1,320,000

0.3%Real property

September 25, 2001

1,550,000

0.3%Real property

June 1, 2005

5,000,000

1.1%

Trust beneficiaryright in trust ofreal estate

September 10, 2001

3,657,000

0.8%

Total: Other major cities

76,387,000

16.0%

16.0%

Total: Portfolio

476,119,112

100.0%

100.0%

Hokuriku
RegionChubu Region

Kinki Region

Kanazawa Park Building(Kanazawa City, Ishikawa Prefecture)

Real property

Nishiki Park Building(Nagoya City, Aichi Prefecture)

Real property

Hirokoji Sakae Building(Nagoya City, Aichi Prefecture)
Nagoya Hirokoji Building(Nagoya City, Aichi Prefecture)
Nagoya Misono Building(Nagoya City, Aichi Prefecture)
Kyoto Shijo Kawaramachi Building(Kyoto City, Kyoto Prefecture)
Sakaisujihonmachi Building(Osaka City, Osaka Prefecture)
Midosuji Daiwa Building(Osaka City, Osaka Prefecture)

Chugoku
RegionKyushuRegion

Lit City Building(Okayama City, Okayama Prefecture)
NHK Hiroshima Broadcasting Center
Building(Hiroshima City, HiroshimaPrefecture)
Tosei Tenjin Building(Fukuoka City, Fukuoka Prefecture)
Tenjin Crystal Building(Fukuoka City, Fukuoka Prefecture)
Hinode Tenjin Building(Fukuoka City, Fukuoka Prefecture)

1,900,000

4.9%

0.9%
4.4%

4,164,000

7,380,000

1.0%

3.0%

1.3%

2.1%

(Note) In addition to the assets outlined in the above list, the Company acquired the preferred capital contribution certificates issued by Harumi
Front Special Purpose Company on March 29, 2005, November 24, 2005, and November 24, 2006 for a total acquisition price of 1,270
million yen.

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