March 27, 2007
To whom it may concern:
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)
Contact: (Asset Management Contractor)
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 March 27, 2007, Japan Real Estate Investment Corporation(the “Corporation”) decided to acquire the following asset:
1. Outline of the acquisition
1) Asset to be acquired:
2) Name of property:3) Acquisition price:

Real property
Land: Ownership, Building: Ownership (Note)
8･3 Square Kita Building (Note)

4) Scheduled acquisition date:

7,100 million yen<Payment schedule>Upon concluding the agreement
for the acquisition of the property: 500 million yen (Deposit)
On the scheduled acquisition date: 6,600 million yen(Balance due)June 1, 2007

5) Seller:

Taisei Corporation

6)Broker:

Mitsubishi Estate Co., Ltd.

7) Acquisition funds:

Deposit: Own funds
Balance due: To be determined(Note)

The asset to be acquired by the Corporation is land and a building of a complex, whichwere developed together with “8・3 Square D’ Grafort Sapporo Station Tower,” (residentialbuilding) under the “8・3 Square” re-development project. The Corporation will acquire theshare of co-ownership in land of 8･3 Square, the 8･3 Square Kita Building (officebuilding), and a multi-level parking structure. (Refer to the ownership diagram on page 9)
While the ownership type of the building to be acquired by the Corporation iscompartmentalized building units, the Corporation will acquire the whole of thecompartmentalized building units.

12. Reasons for the acquisition
The Corporation will acquire the property based on the basic policies and investment attitude foracquisition under the Articles of Incorporation of the Corporation. In particular, the following
points have been highly evaluated in the determination of the acquisition.
(1) Sapporo City as a central city
Sapporo City is the largest central city in Hokkaido. Since the Corporation did not have any
properties in Hokkaido, the acquisition of a competitive office building for lease in Sapporo
City is also beneficial in terms of regional diversity.
(2) Newly-built property adjacent to Sapporo Station
Completed in December 2006, the property is a new building within a project site that is
directly connected to JR Sapporo Station via an underground walkway. It is a rare property
with a competitive edge in terms of location and age in the Sapporo City office building
market.
(3) Large property with high specifications
The property is equipped with specifications that can satisfy a variety of facility needs fortenants as an office building for lease, including a lease space of over 370 tsubo for a standard
floor, individual air conditioning system by zone, ceiling height of 2.7 meters, 100mm accessfloor, and a security system based on non-contact IC cards.
3. Details of the property 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 themain usages listed in the land registry. (“Address”, “usage” and “structure” are for the officebuilding.)2(1) Details of the property to be acquired
Location
Address shown inland registry
Address
UsageAreaLand
Building
Structure
Completion dateArchitect
Constructor
Building permit agency
Type of ownership
Land
Building
Acquisition priceAppraisal value(Appraisal institution)(Evaluation method)

PML value
Mortgage
Property managementcompany (Note 1)

Land
Kita 8 Nishi 3 32, Kita-ku, Sapporo City, Hokkaido
Building Kita 8 Nishi 3 32, Kita-ku, Sapporo City, Hokkaido
Kita 8 Nishi 3 32, Kita-ku, Kita-ku, Sapporo City, Hokkaido
Office, shop
5,541.60 m2(Total land area for the 8･3 Square site)
16,048.59 m2 (Office building)
48.38 m2 (Multi-level parking structure )Steel-reinforced concrete structure, flat roof
Above ground: 11 floors Below ground: 1 floor
December 2006
Daiwa House Industry Co., Ltd.
Daiwa House Industry Co., Ltd.
Japan ERI Co., Ltd.
(For elevator machinery, Sapporo City issues an inspection certificate.)
Ownership (4,717,000/10,000,000 in the site rights)
Ownership (All the compartmentalized building units in the office building
and the multi-level parking structure, and the common area in the projectsite)
7, 100 million yen
7, 190 million yen(Daiwa Real Estate Appraisal Co., Ltd.)(Capitalization method: as of March 1, 2007)<Reference> Capitalization yield in direct capitalization method : 5.5％
Discount rate in DCF method : 5.4％
Final capitalization yield : 5.7％
3.58% (Based on an earthquake risk assessment report by Tokio
Marine & Nichido Risk Consulting Co., Ltd.)
None (There are mortgages on the interests of the compartmentalizedbuilding units owners of the residential building)
Mitsubishi Estate Co., Ltd. (Note 2)(Note 1) The property management company to be entrusted after the acquisition shall be described.

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(Note 2) Outline of the property management company

Corporate name
Address of the registeredhead officeRepresentative
Paid in capital
Major shareholders

Principal business
Relationship with theCorporation or the asset
management company

Mitsubishi Estate Co., Ltd.
1-6-1 Ohtemachi, Chiyoda-Ku Tokyo
Keiji Kimura, President and CEO
136,534 million yen (As of September 30, 2006)
The Master Trust Bank of Japan, Ltd. (Trust account)
Meiji Yasuda Life Insurance Company
State Street Bank and Trust Company(As of September 30, 2006)
Real estate businessA principal shareholder (holding 36% of shares) of Japan Real Estate
Asset Management Co. Ltd. (the asset management company) in which
the Corporation entrusts the management of its assets
Mitsubishi Estate Co., Ltd. falls within the related party of the asset
management company under the Cabinet Order of the Enforcement ofLaw Concerning Investment Trusts and Investment Corporations ofJapan.
As of March 27, 2007, Mitsubishi Estate, Co., Ltd. holds 10,160
investment units of the Corporation (2.48% of total outstanding
investment units).

(2) Tenant details
Total number of tenants
7
Total leasable space
12,266m2
Total lease space
12,078m2
Occupancy rate on the scheduled
98.5% (Projection)acquisition date
370 million yen per yearNOI（Net Operating Income）- Total number of tenants, total leasable space, total lease space and occupancy
rate on the scheduled acquisition date are projections for the office building asof the scheduled acquisition date.
(Note)- NOI is the estimate under the normal operation based on the terms andconditions of lease agreements as of the scheduled acquisition date, etc.
* Estimated occupancy rate: 95.0%- The above figures (except NOI) are based on the data provided by the seller.
(3) Specifications for rental floor space
Ceiling heightStandard floor area
Access floorElectric capacity
Air conditioning system
Floor load
Others2,700mm
1,234m2
100mm
50VA/m2
Individual air conditioning system (Maximum of 5 zones per floor)
500kg/m2
Around-the-clock entry and exit

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

Emergency repair items
Short-term repair items(within 1 year)

March 1,2007
Shimizu Corporation
None
None

Repair cost / Capital expenditure
for the next 15 years

Repair cost

6 million yen(Annual average for the share to beacquired by the Corporation)

Capital expenditure0 million yen

Total

7 million yen

ii. Description concerning utilization status of asbestos(Description on the possible use of asbestos)Sprayed materials with asbestos or not
Materials with asbestos or not other than the above

None
None

4. Outline of the seller
Corporate name
Address of the registeredhead office
Representative
Paid in capital
Major shareholders

Principal business
Relationship with theCorporation or the asset
management company

Taisei Corporation
1-25-1 Nishi-shinjuku, Shinjuku-ku, TokyoKanji Hayama, President & Representative Director
112,448 million yen (As of September 30, 2006)
Japan Trustee Services Bank, Ltd. (Trust account)
State Street Bank and Trust Company
The Master Trust Bank of Japan, Ltd. (Trust account)(As of September 30, 2006)
Construction businessNone

5. Outline of brokerage(1) Broker:

Mitsubishi Estate Co., Ltd. (Refer to 3. (1) (Note 2))(2) Commission:

213 million yen (3% of the acquisition price)

6. Acquisition schedule
March 27, 2007

The acquisition of the property was determined.

March 30, 2007

Execution of an agreement for the acquisition of the property,
deposit payment (Scheduled)
Property handover, balance payment (Scheduled)

June 1, 2007

As the scheduled acquisition date of this property is June 1, 2007, there is no impact on theCorporation’s management performance for the fiscal period from October 1, 2006 to March 31,2007.

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This notice is the English translation of the March 27, 2007, announcement in Japanese on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of thisEnglish translation.
Reference materials (Attachments)- Photo: Outside view of 8･3 Square Kita Building- Information Map- Ownership diagram- List of all the assets of the Corporation after the acquisition of this property

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(Reference) Photo: Outside view of 8･3 Square Kita Building7

(Reference) Information map

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(Reference) Ownership diagram

8･3 Square D’ Grafort
Sapporo Station Tower

8・3 Square Kita Building(Residential building,common area)(Residentialbuilding)Multi-level parking structure(Residential building, common area)

Multi-level parking structure(Office building)Multi-level parking structure(Office building annex)

Bicycleparking
space

Land (Co-ownership for residential and office buildings)*Ownership share for the office building: 4,717,000/10,000,0009List of all the assets of the Corporation after the acquisition of this property
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)
Aoyama Crystal Building(Minato-ku, Tokyo)
Shiba 2Chome Daimon Building(Minato-ku, Tokyo)

Tokyo
Metropolitan
Area(23 wards)

Cosmo Kanasugibashi Building(Minato-ku, Tokyo)
Shinwa Building(Shinjuku-ku, Tokyo)
Tokyo Opera City Building(Shinjuku-ku, Tokyo)

Acquisition
price(thousand yen)

Percentage of
portfolio

October 31, 2002

5,000,000

1.1%Real property

February 24, 2006

81,555,500

18.2%

Real property

May 31, 2002

9,520,000

2.1%

Real property

August 15, 2002

4,810,000

1.1%Real property

April 1, 2005

14,700,000

3.3%Real property

March 28, 2007

44,700,000

10.0%
1.6%

Type of asset

Acquisition date orscheduled acquisition date

Real property

Real property

July 29, 2005

7,000,000
10,200,000

Real property

January 31, 2005
April 3, 2006
Total

10,700,000

4.7%

20,900,000

Real property

August 1, 2003

7,200,000

1.6%

Trust beneficiaryright in trust ofreal estate

September 25, 2001

3,173,000

0.7%Real property

July 22, 2002

5,250,000

1.2%Real property

March 10, 2005

16,830,000

3.8%Real property

March 15, 2005

5,353,500

1.2%Real property

March 14, 2003

7,680,000

1.7%

September 10, 2001

4,859,000

1.1%

September 25, 2001

2,808,000

0.6%Real property

September 1, 2004

7,830,000

1.7%

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

Real property

September 13, 2005

9,350,000

2.1%

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

1.5%Real property

April 1, 2004

8,700,000

1.9%Real property

November 22, 2002

4,885,000

1.1%Real property

October 9, 2003

12,200,000

2.7%Real property

November 30, 2001

34,600,000

7.7%

3,740,000

Real property

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

8,500,000

1.9%

September 25, 2001

3,541,000

0.8%

September 25, 2001

1,728,000

0.4%

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)

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

10Percentage
by area

360,000

0.9%

4,100,000

80.6%

TokyoMetropolitan
Area(excluding 23wards)

Ikebukuro YS Building(Toshima-ku, Tokyo)

Real property

August 2, 2004

4,500,000

1.0%

Hachioji First Square(Hachioji City, Tokyo)

Real property

March 31, 2005

3,300,000

0.7%

Saitama Urawa Building(Saitama City, Saitama Prefecture)

September 25, 2001
October 11, 2001
Total

1,232,000

Real property

September 25, 2001

3,375,000

0.8%

370,553,000

82.6%

82.6%

June 1, 2007

7,100,000

1.6%

1.6%

Real property

January 31, 20051,000,000

0.2%

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

September 22, 2006

1,680,000

0.4%Real property

September 10, 2001

14, 533,000

3.2%Real property

August 8, 2003

1,865,000

0.4%Real property

December 20, 2001

2,650,000

0.6%

September 25, 2001
December 26, 2003
Total

2,264,000

Real Property

September 25, 2001

6,934,000

February 28, 2002
Total

7,380,000
14,314,000

Kawasaki Isago Building(Kawasaki City, Kanagawa Prefecture)

Trust beneficiaryright in trust ofreal estate

Total: Tokyo Metropolitan Area
Hokkaido

TohokuRegionHokuriku
RegionChubu Region

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

Real property

Kanazawa Park Building(Kanazawa City, Ishikawa Prefecture)

Real property

Nishiki Park Building(Nagoya City, Aichi Prefecture)

Real property

Hirokoji Tokio Marine Nichido
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)

1,342,000

0.6%

2.1%

2,574,000

250,000

0.9%
0.7%

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

1.0%

1.0%

3,850,000
1,300,000

1.1%

5,150,000

1,900,000

5.2%

0.9%

4,164,000

Midosuji Daiwa Building(Osaka City, Osaka Prefecture)

Trust beneficiaryright in trust ofreal estate

Kobe Itomachi Building(Kobe City, Hyogo Prefecture)

Trust beneficiaryright in trust ofreal estate

September 25, 2001

1,436,000

0.3%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

77,823,000

17.4%

17.4%

Total: Portfolio

448,376,000

100.0%

100.0%

Kinki Region

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)

5.0%
3.2%

1.3%

2.3%(Note) In addition to the assets outlined in the above list, the Corporation acquired the preferred capital contribution certificates issued byHarumi Front Special Purpose Company on March 29, 2005, November 24, 2005, and November 24, 2006 for a total acquisition price of1,270 million yen, and acquired a preferential right to purchase assets such as real property etc. related to “Harumi Center Building” after
the completion of the building.

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