July 9, 2015
For Translation Purpose Only
MCUBS MidCity Investment Corporation
1-4-4 Dojimahama, Kita-ku, Osaka
Katsura Matsuo
Executive Director(Securities Code: 3227)
MCUBS MidCity Inc.
Katsura Matsuo
President & CEO & Representative Director
Naoki Suzuki
Deputy President & Representative Director
General Manager, Finance & Planning Division
TEL. +81-6-6456-0700
E-mail:midrm-info@mid.co.jp

Notice Concerning Acquisition of Trust Beneficiary Interest in Domestic Real Estate and Their
Lease, and Acquisition of Silent Partnership Interests (Five Office Buildings)
MCUBS MidCity Investment Corporation (hereafter “MCUBS MidCity”) announces that MCUBS MidCity Inc.,
its asset management company (hereafter the “Asset Management Company”), decided today to acquire andlease properties as detailed below.
Of these assets to be acquired, the sellers of the three properties (G-Square Shibuya Dogenzaka, Shibuya
Sakuragaoka Square (land with leasehold interest) and Yokohama Creation Square) fall under the category ofinterested parties, etc. under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951,as amended; hereafter the “Investment Trusts Act”). As such, pursuant to the Investment Trusts Act, the AssetManagement Company has obtained consent to their acquisition from MCUBS MidCity based on the approval
made at the latter’s board of directors meeting held today.
1. Overview of Assets to be Acquired
Property Name

Type of
Asset

Location

PlannedAcquisitionPrice(million yen)Appraisal
Value(millionyen)

SPC(GK Dogenzaka 211)

12,22013,300

3.5%

3.1%

SPC
(GK Sakuragaoka 31)

5,000

5,240

3.4%

3.4%

SPC
(GK TCTS06)

7,080

7,280

5.1%

4.1%

SPC
(YK Cube Kawasaki
Investment)

20,05020,400

4.2%

3.9%

August 7,
2015

44,35046,220

4.0%

3.7%

－

4,919

－

－

－

August 3,
2015

49,269－－－－Seller(Note 1)

G-Square Shibuya
Dogenzaka
Shibuya Sakuragaoka
Square (land withleasehold interest)
Yokohama Creation
SquareCube Kawasaki

Nagoya Lucent Tower(Note 5)

Trust
Shibuya-ku,
beneficiaryTokyo
interest
Trust
Shibuya-ku,
beneficiaryTokyo
interest
Trust
Kanagawa-ku,
beneficiary Yokohama-shi
interest
Trust
beneficiary Kawasaki-shi,
Kawasaki-ku
interest
Subtotal (4 properties)/ Average
SilentNishi-ku,
Partnership
Nagoya-shi
Interest

Hulic Co., Ltd.

Total (5 properties)

NOI
Yield

(Note 2)NOI Yield
Plannedafter
Acquisition
Depreciation
Date(Note 3)(Note 4)

August 3,
2015(Note 1) “Planned Acquisition Price” indicate the sale price (excluding acquisition expenses, property taxes, city planning taxes, consumption taxes, etc.) of
respective beneficiary interest or silent partnership interest stated in the trust beneficiary interest transfer agreement or silent partnership transfer
agreement, rounded down to the nearest million yen.
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

1

(Note 2) “NOI Yield” indicates the ratio of the appraisal NOI to the planned acquisition price of respective assets to be acquired (excluding silent
partnership interests to be acquired) and has been obtained by using the following formula
NOI Yield = NOI* ÷ planned acquisition price
Average NOI yield = Total NOI ÷ total (planned) acquisition price*Unless otherwise noted, NOI is calculated by using the net operating income (NOI) under the DCF method for the initial fiscal year (or thesecond year if there are special factors for the initial fiscal year) stated in the appraisal reports of respective assets to be newly acquired upon theiracquisition. The same shall apply hereinafter.
(Note 3) ‘NOI Yield after Depreciation” indicates the ratio of the NOI after depreciation to the planned acquisition price of respective assets to beacquired (excluding silent partnership interests to be acquired) and has been obtained by using the following formula. NOI yield after depreciation
is calculated by deducting depreciation and amortization costs from appraisal NOINOI Yield after depreciation = (NOI - depreciation*) ÷ planned acquisition price
Average NOI yield after deprecation = Total NOI after depreciation ÷ total planned acquisition price* Depreciation is calculated by using the depreciation rates in proportion to the useful life under the straight-line method, as is the case for otherassets owned by MCUBS MidCity.
(Note 4) “Planned Acquisition Date” may be subject to change in the future.
(Note 5) “Nagoya Lucent Tower” represents silent partnership interest with R40 GK as the operator (Silent Partnership Interest B in R40 GK; equity interest: 40%),
backed by the trust beneficiary interest for the 33.9% co-ownership interest (and 29.5% right of site) of the sectional ownership of Nagoya Lucent Tower(sections of the Nagoya Lucent Tower buildings excluding the special high voltage substation building and part of the extra high voltage substation building(hereafter the “Underlying Asset”) as the asset in trust.

2. Reason for Acquisition and Leasing
After changing its main sponsor to Mitsubishi Corp. - UBS Realty Inc. in April 2015, MCUBS MidCity
changed its portfolio building policy, at its General Meeting of Unitholders held on June 16, 2015, so that its
targeted investment region will be centered on the three major metropolitan areas (Tokyo metropolitan area
(Tokyo, Kanagawa, Chiba and Saitama Prefectures), Osaka metropolitan area (Osaka, Kyoto and Hyogo
Prefectures) and Nagoya metropolitan areas (Aichi Prefecture)). The change was aimed at reducing theearnings fluctuation risk by making further progress in area diversification and tenant diversification of theportfolio through expanding the asset size, and at improving the profitability of the portfolio by acceleratingexternal growth for the purpose of enhancing unitholder value.
Under the new portfolio building policy, MCUBS MidCity determined that acquiring and leasing the assets
to be acquired, which are located primarily in the Tokyo metropolitan area, will contribute to further
diversifying its portfolio and improving profitability as well as to enhancing unitholder value, which isrepresented by distribution per unit, over a medium to long term. As such, MCUBS MidCity has decided toacquire and lease the properties. In acquiring and leasing the assets to be acquired, MCUBS MidCity has
made its decision by taking into account the regional characteristics, property characteristics, profitability andother factors of the subject real estate. For details of the individual properties, please refer to 3. Details of
Assets to be Acquired below.
(Note) Explanations of the descriptions in each column for the overview of the respective assets to be acquired, described in 3. Details of Assets
to be Acquired below, are as follows.
“Location (Indicated for Residence)”shows the residence indication or, when residence indication is not implemented, what is stated in
the registry (one of the locations if multiple locations are indicated).
“Planned Acquisition Date” indicates the planned acquisition date of assets to be acquired.
Explanations on the “Land” columns
・“Site area” indicates what is stated in the registry, and may not match the present situation.
・“Zoning” indicates the type of zoning classification depicted in Article 8-1-1 of the City Planning Act (Act No. 100 of 1968; asamended).
・“Type of Ownership” indicates the type of rights that the real estate trustee holds or the parties planned to become the trustee plan tohold on the real estate in trust for each asset to be newly acquired.
・Floor-Area Ratio” represents the ratio of the total floor area to the site area of a building, as stipulated in Article 52 of the BuildingStandards Act as amended,, and indicates the figure specified in city planning in accordance with the zoning, etc.
・“Building-to-Land Ratio” represents the ratio of the building area to the site area of a building, as stipulated in Article 53 of the
Building Standards Act, and indicates the figure specified in city planning in accordance with the zoning, etc.
Explanations on the “Building” columns
・“Structure/Floors” is based on what is stated in the registry.
・“Total Floor Area” is based on what is stated in the registry. In the case where there is any annex building, its figure is indicatedseparately.
・“Type of Ownership” indicates the type of rights that the real estate trustee holds or the parties planned to become the trustee plan tohold on the real estate in trust for each asset to be newly acquired.
・“Use” indicates the primary type of use stated in the registry.
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

2

・“Completion Date” indicates the date stated in the registry. In the case where there is any extension or renovation, the date is also
indicated additionally.
“Property Management Consignee” indicates the company with which property management agreement has been concluded or will beconcluded, effective as of the end of April 2015, for the real estate in trust for each asset to be newly acquired.
“Building Management Consignee” indicates the company with which building management agreement has been concluded or will beconcluded, effective as of the end of April 2015, for the real estate in trust for each asset to be newly acquired.
“Trustee” indicates the trustee as of the end of April 2015 for the real estate in trust for each asset to be newly acquired.
Explanations on the “Overview of Building Condition Evaluation” columns
・“Overview of Building Condition Evaluation” indicates the overview of reports on the evaluation results prepared by respective
evaluation companies, with Nikken Sekkei Construction Management, Inc., Tokio Marine & Nichido Risk Consulting Co., Ltd. andTokyo Bldg-Tech Center Co., Ltd. conducting building deterioration diagnosis surveys, preparation of short-term and long-term
repair plans, surveys on compliance with the Building Standards Act and other laws and regulations, building surveys on containmentof hazardous substances, etc. and with Engineering and Risk Services Corporation and OYO RMS Corporation evaluating
comprehensive earthquake risks including earthquake hazards and ground conditions by taking into account the specific vulnerability
to earthquakes of buildings based on the earthquake response analysis, as entrusted by MCUBS MidCity. The content of the reports
represents judgment and opinions of the above-mentioned evaluation companies at a certain date, and its appropriateness andaccuracy are not guaranteed.
・“Evaluation Date” indicates the date when the building condition evaluation report (surveyed and prepared by the evaluationcompanies) was prepared.
・“Short-term Repair Cost” indicates the most prioritized repair costs (costs for repairs projected to be needed within a year) based on
the building condition evaluation report by the evaluation companies as of the date when the report was prepared. “Long-term
Repair Cost” indicates expenses for repairs projected to be needed over coming 12 years (including the short-term repair cost) basedon the building condition evaluation report by the evaluation companies. The figures have been rounded down to the nearest
thousand yen.
・“PML” is translated as “Probable Maximum Loss” in the real estate/insurance industries and is used as a rating index for earthquake
risk in buildings. However, there is no unified definition to evaluate PML and the definitions vary depending on the purpose and use.
In this document, we define as follows; from the risk curve, which shows the relationship between loss and annual exceedance
probability as calculated by Engineering and Risk Services Corporation and OYO RMS Corporation, divide the “probable loss for abuilding with a recurrence interval of 475 years” by the “replacement cost” and calculate the percentage. In the analysis, we used
RiskLink®, a natural disaster risk analysis software owned by OYO RMS Corporation, conducted onsite inspections, evaluatedbuilding statuses, and checked conformity with the design documents, conducted exclusive structural considerations, reviewed thevulnerability in case of an earthquake, and assessed the vulnerability curve particular to individual buildings. Here, the probable loss
with a recurrence interval of 475 years represents “loss of 10% of exceedance probability over 50 years” (PML 3) based on the 2011
edition of the BELCA guidelines. However, the probable losses are related only to damage of buildings directly caused by seismic
motions (Structural Members, non-structural members and building equipment) and do not include damages of equipment, furnitureand fixtures, and secondary damages such as those caused by water disaster or fire disaster after the earthquake, compensation forvictims and operating losses.
Explanations on “Overview of Leasing” columns
・“Overview of Leasing” indicates the content of the lease agreement effective as of the end of April 2015 for the real estate in trust
for each asset to be newly acquired, etc., based on the figures and information provided by the sellers of each asset to be newly
acquired.
・“Rentable Area” indicates the rentable area of the building of the real estate in trust for each asset to be newly acquired (or the total
rentable area of respective buildings in the case where there are multiple buildings for each property; areas of warehouses, halls andparking lots, etc. are not included).
・“Rental Area” indicates the area presented in the lease agreements with end tenants effective as of the end of April 2015, etc. (limited
to the rental spaces, excluding the areas of warehouses, halls and parking lots, etc.). However, in the case where the property is leased
to a tenant in a fixed master lease format, the said tenant is deemed as the end tenant and the relevant figure is indicated.
・“Occupancy Rate” indicates the figure obtained by dividing the rental area by the rentable area and shows it in percentage, rounded to
the first decimal place.
・“Total Tenants” indicates the number of tenants for each property based on the lease agreements effective as of the end of April 2015,etc. (limited to the rental spaces and excluding the tenants that lease warehouses, halls and/or parking lots, etc. only). In the casewhere the same tenant leases multiple rental spaces within the same property and the rents for such rental spaces are claimed as awhole, the tenant is counted as one. In the case where the same tenant is housed in multiple properties, the tenant is counted for each
property and the sum total is indicated. Moreover, in the case where master lease agreement is concluded, it is assumed that consent
by all end tenants have been obtained that the lessee under the said master lease agreement serves as the lessor, and the number ofthe end tenants subleased by the lessee under the said master lease agreement is indicated. However, in the case where the entire
property is leased to a tenant in a fixed master lease format, etc., the said end tenant is deemed as the end tenant and is thus indicated.
・“Total Annual Rent” indicates the total amount of the monthly rent (or the rent based on the minimum guaranteed rent in the case ofpercentage-of-sales rent, excluding the percentage-of-sales portion), common area charge, parking lot fee, warehouse rent and facility
usage fee, etc. stated in the lease agreement effective as of end of April 2015, etc., multiplied by 12. The figure does not include
utilities revenue and other income. Amounts less than thousand yen have been rounded down.
・”Security Deposit/Guarantee, Etc.” indicates the balance of security deposits and guarantees (including those for the rental spaces, parking lots
and warehouses, etc.) based on the lease agreement effective as of the end of April 2015, etc. Amounts less than thousand yen have been rounded
down.
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

3

3. Details of Assets to be Acquired[G-Square Shibuya Dogenzaka](1) Overview of the Property to be Acquired
Type of Specified Asset

Trust beneficiary interest in real estate

Planned Acquisition Price¥12,220,000 thousand

Location (Indicated for
Residence)

2-11-1 Dogenzaka, Shibuya-ku, Tokyo

Planned Acquisition Date

August 3, 2015

Land

Site Area

918.49m2

Zoning(A) Commercial district(B) Commercial district

Type ofOwnership

Evaluation Date

Fee simple

Overview of
Building
Condition
Evaluation

Floor-Area Ratio /(A) 800%/80%
Building-to-Land(B) 600%/80%
Ratio

Building

Evaluation
Company

Tokio Marine &Nichido Risk
Consulting Co., Ltd.,Engineering and Risk
Services Corporation/
OYO RMS
Corporation

Short-term
Repair Cost

¥0
¥81,512 thousand/12 years

Structure/ Floors

S/SRC with flat roof, B2/9F

Long-term
Repair Cost

Total Floor Area

6,565.87m2

PML

Type ofOwnership

Fee simple

Rentable Area

5,013.55m2

Use

Office, retail, parking lot

Rental Area

3,517.72m2

Completion Date

October 8, 2009

Property Management
Consignee
Building Management
Consignee
TrusteeJune 2015

Sun Frontier Fudousan Co., Ltd.
Sun Frontier Fudousan Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited

Occupancy Rate
(Note)
Overview of Total TenantsLeasing(Note)
Total Annual
Rent
Security Deposit/ Guarantee,
Etc.

4.2%

70.2%
6
¥382,851 thousand¥270,434 thousand(Special Notations)
A sectional superficies has been established for part of the Property’s land with Keio Corporation as the superficies holder forthe purpose of maintaining the underground railway facilities.
(Note) On May 29, 2015, the seller received a notice of cancellation from a tenant (total rental area: 1,424.37m2; cancellation date: February 29, 2016).
The seller signed a lease agreement with another tenant on May 21, 2015 (rental area: 498.61m2; agreement period start date: June 1, 2015).

(2) Reason for Acquisition and Leasing
The following points were evaluated in particular in the decision to acquire the Asset.
(Regional Characteristics)
In close proximity to Shibuya Station, the Property is situated in a highly convenient location. Shibuya
Station, the nearest station, is one of the largest terminal stations in Tokyo, with 9 lines (JR Yamanote,
Saikyo and Shonan Shinjuku Lines, Tokyu Toyoko and Denen-Toshi Lines, Keio Inogashira Line andTokyo Metro Ginza, Hanzomon and Fukutoshin Lines) available, and is positioned as the center of an area
having concentration of IT companies with high growth potential. In addition, the Shibuya – Ebisu area is
one of the areas where the vacancy rate is lowest in Tokyo, with the figure standing at 2.5% as of the endof March 2015. Located in such an area, the Property is a three-minute walk from Shibuya Station on theTokyo Metro lines and a two-minute walk from Shibuya Mark City, a landmark facility in the Shibuya area,and features high visibility as it faces the Dogenzaka slope.
(Property Characteristics)
Completed in October 2009 (5 years since built), the Property is a relatively newly-built, high-grade office
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

4

building employing glass curtain walls for its appearance, and commands scarcity value in the Shibuya area.
It has a standard floor area of approximately 160 tsubos and secures a ceiling height of 2,700mm and floorload of 300kg/m2 (or 500kg/m2 in the heavy-duty zone). It is equipped with the air-conditioning systemthat can be separately controlled for up to 15 sections, and three elevators (up to 13 people in each unit) for
office use. In terms of the environmental performance, the Property has been granted rank A certificationin the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) system. As such,
the Property commands scarcity value in Shibuya Ward where new supply is scarce. After the acquisition of
the Property, the vacancy rate is expected to increase as a result of tenants moving out. However, since the
Shibuya area enjoys high tenant needs, MCUBS MidCity believes the occupancy rate of the Property is likely
to improve at an early stage.
(3) Overview of Appraisal Report
Appraiser

Japan Real Estate Institute

Final Appraisal Value¥13,300,000 thousand

Appraisal Date

June 1, 2015
Item

Details

Overview, etc.

(Unit: thousand yen)

Revenue price
Value Calculated Using Direct
Capitalization (DC) Method
Operating revenues
Potential gross revenue

13,300,000
13,400,000
613,943
643,944

Vacancy loss, etc.

30,001

Operating expenses
Maintenance expenses

120,503
18,080Utility expenses

43,000

Repair expenses

2,038

PM fees

5,101

Tenant solicitation
expenses, etc.
Real estate taxes
Insurance premiums

7,296
44,294694

Other expenses
Net operating income (NOI)
Gain on management ofincome from lump-sum
payment
Capital expenditures

0493,440
8,413

Net Cash Flows

496,973

4,880

―
―
―
Assessed based on the unit value level of rents, etc. thatcan be received stably over a medium to long term
Assessed on the assumption of the occupancy rate levelthat is stable over a medium to long term―
Accessed by taking into account individual factors of thesubject property, with reference to the actual results ofpast years, etc.
Assessed by taking into account the occupancy rate, etc.
of the rental spaces, based on the actual results of past
years
Assessed by taking into account the future management
and operation plans, level of expenditures of similar
properties, average annual amount of repair expenses inthe engineering report and other factors, with reference
to the actual amounts of past years
Assessed by taking into account the fee rates of similar
properties and individual factors of the subject property,
etc., with reference to the fee rates in the terms andconditions of the current agreements, etc.
Assessed the annual average amount based on theassumed turnover period of the lessees
Assessed based on the tax base for fiscal 2015
Assessed by taking into account the insurance premiumsof properties similar to the subject property, etc.
――
Assessed the management yield to be 2.0%, taking into
account the interest rates for both management andprocurement, etc.
Assessed by taking into account the capital expenditurelevels of similar properties, the building age and annual
average repair and replacement expenses stated in theengineering report, based on the assumption that thereserve is made averagely each period―

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

5

Overall Capitalization Rate

Value Calculated Using DiscountCash Flow (DCF) Method
Discount Rate

3.7%

13,200,000
3.3%

Terminal Capitalization Rate

Cost method value
Ratio of Land Price
Ratio of Building Price
Other items considered by real estateappraisal agent upon appraisal

3.7%

12,700,000
86.0%
14.0%

Assessed by taking into account future uncertainties andtransaction yields of similar properties, etc., while
adding/subtracting the spread attributable to the subject
property’s location conditions and building conditions,etc.
―
Accessed by comprehensively taking into accountindividual factors of the subject property, etc., withreference to investment yields of transactions of similar
properties
Assessed by comprehensively taking into account the
future trends of investment yield, risk of the subject
property as investment target, general prediction of
future economic growth rate, trends of property prices
and rents, etc., with reference to transaction yields ofsimilar properties, etc.
―――

Not applicable(4) Seller Overview(a) Name(b) Location(c) Name and Title ofRepresentative
(d)

(e)
(f)
(g)

GK Dogenzaka 211
1-7-20 Yaesu, Chuo-ku, Tokyo
Representative Partner: Diamond Industrial Investment InstituteExecuting person: Shuichi Sasaki
1. Acquisition, hold and disposition of real estate and securities
2. Leasing and management of real estate
3. Acquisition, hold and disposition of trust beneficiary interest in real estate
4. Invest to the company for the purpose of acquisition, hold and disposition of realBusiness
estate or trust beneficiary interest in real estate
5. Conclusion of silent partnership agreements as defined in Article 535 of theCommercial Code, acceptance of investment capital based on such agreements, andimplementation of silent partnership investments
6. Any other auxiliary and/or related businesses to the items described above
Capital¥300,000
Date of Establishment February 6, 2015
Relationship with MCUBS MidCity or the Asset Management Company
There are no capital ties to be stated between the seller and MCUBS MidCityor the Asset Management Company. The seller is a Tokubetsu Mokuteki
Kaisha (special purpose company) that falls under the category of a
subsidiary of Mitsubishi Corporation, which is the parent company(shareholding ratio: 51%) of the Asset Management Company’s parent
Capital Ties
company (Mitsubishi Corp. - UBS Realty Inc.; shareholding ratio: 65%).
Furthermore, there are no capital ties to be specified between the relatedparties/related companies of MCUBS MidCity or the Asset Management
Company and the related parties/related companies of the seller
There are no personnel ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no personnel ties to
Personnel Ties
be stated between the related parties/related companies of MCUBS MidCityor the Asset Management Company and the related parties/relatedcompanies of the seller.

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

6

Business Ties

Status of Classification
as Related Party

There are no business ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no business ties to bestated between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companiesof the seller.
The seller falls under the category of a related party of MCUBS MidCity or
Asset Management Company. The seller falls under the category of thesponsor related party under the Regulations on Transactions with Sponsor
Related Parties of the Asset Management Company. The relatedparties/related companies of the seller do not fall under the category of a
related party of MCUBS MidCity or Asset Management Company.

(5) Status of Property Buyers, Etc.
The seller of the Asset falls under the category of an interested party, etc., as defined in theInvestment Trusts Act, of MCUBS MidCity. Accordingly, the status of property buyers, etc. ispresented.
Land/Building
Status of Property
Previous Owner
Owner Before Previous Owner
Buyer
Other than a party having particular
Name
GK Dogenzaka 211
vested interest
Relationship with
Parties having Particular Please refer to (4) above.
―
Vested Interest
Acquisition background
For temporary holding―
and reason
Acquisition price(Including other¥12,040 million―
expenses)Acquisition period
February, 2015―(6) Overview of Brokerage
Not applicable[Shibuya Sakuragaoka Square (land with leasehold interest)](1) Overview of the Property to be Acquired
Type of Specified Asset
Location (Indicated for
Residence)Land

Building

Quasi co-ownership of trust beneficiaryinterest in real estate (Note 1)
109-7 Sakuragaokacho, Shibuya-ku,
Tokyo and other

Site Area (Note 2)

1,200.08m2

Zoning(A) Commercial District(B) Commercial District

Type ofFee simple
Ownership
Floor-Area Ratio /(A) 800%/80%
Building-to-Land(B) 500%/80%
Ratio

Planned Acquisition Price¥5,000,000 thousand

Planned Acquisition Date

August 3, 2015

Evaluation Date―

Evaluation
Company―

Overview of
Building
Condition
Short-term
Evaluation Repair Cost―

Structure/ Floors―

Long-term
Repair Cost―

Total Floor Area

―

PML

―

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

7

Type ofOwnership

―

Use

―

Completion Date―

Property Management
Consignee
Building Management
Consignee
Trustee

Rentable Area
(Note 2)
Rental Area
(Note 2)

Tokyu Community Corporation―
Mitsubishi UFJ Trust and Banking
Corporation

Occupancy Rate
Overview of Total TenantsLeasing(Note 3)
Total Annual
Rent (Note 2)
Security Deposit/ Guarantee,
Etc. (Note 2)

1,200.08m2
1,200.08m2
100.0%
1
453,167 thousand¥0(Special Notations )1.The quasi co-owners of the Property’s beneficiary interests in real estate have concluded an agreement that stipulates that, whentransferring whole or part of the quasi co-ownership owned by each of them, prior consent of the other quasi co-owners is
required (on the condition that, however, the other quasi co-owners cannot reserve or deny consent without rational reasons
unless the third-party transferees prove to be anti-social forces) and, when another quasi co-owner hopes to acquire it, the otherquasi co-owners shall negotiate with the said quasi co-owner preferentially to others. Moreover, decisions on important mattersrelated to management shall be made by unanimous consent of the quasi co-owners as a rule.
2. With regard to the purchase of the building on the land with leasehold interest by MCUBS MidCity, for which the AssetManagement Company conducts asset management, the Asset Management Company was granted rights as of July 9, 2015 by
the owners of the building on the land with leasehold interest, etc. to negotiate with them preferentially after a certain period oftime has passed and under certain conditions.
(Note 1) Quasi co-ownership interest: 40%(Note 2) The “Site Area,” “Rentable Area,” “Rental Area,” “Total Annual Rent” and “Security Deposit / Guarantee, Etc.” columns indicate figures for theentire land of the Property.
(Note 3) The “Total Tenants” column indicates the number of land lease agreements.

(2) Reason for Acquisition and Leasing
The following points were evaluated in particular in the decision to acquire the Asset.
(Regional Characteristics)
Shibuya Station, the nearest station to the Property, is one of the largest terminal stations in Tokyo, with 9lines (JR Yamanote, Saikyo and Shonan Shinjuku Lines, Tokyu Toyoko and Denen-Toshi Lines, Keio
Inogashira Line and Tokyo Metro Ginza, Hanzomon and Fukutoshin Lines) available, and is positioned as
the center of an area having concentration of IT companies with high growth potential. In addition, theShibuya – Ebisu area is one of the areas where the vacancy rate is lowest in Tokyo, with the figure standingat 2.5% as of the end of March 2015. In the Shibuya area that generally has a mix of stores and offices, theProperty is located in an area generating a stronger atmosphere of business district with lots of officebuildings. It is four-minute walk from Shibuya Station on the JR lines and within a walking distance fromother railway lines. As such, the Property enjoys high convenience in a favorable environment that is more
appropriate for offices in Shibuya.
(Property Characteristics)
The Property is a land with leasehold interest of over 350 tsubos (the area of the Property’s entire land),facing the national highway Route 246. With a fixed-term lease agreement for business purposes (contract
period of 50 years with fixed rents) concluded with the leaseholder for the land, on which a relatively newly
built, high-grade building stands, the Property allows expectations for stable revenues over a long term.
Moreover, the quasi co-owners of the land with leasehold interest mutually have preferential negotiationrights with one another for the interests of other quasi co-owners.
(3) Overview of Appraisal Report
Appraiser

Japan Real Estate Institute

Final Appraisal Value¥5,240,000 thousand

Appraisal Date

June 1, 2015

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

8

Item

Details(Unit: thousand yen)
5,240,000
Direct5,280,000

Revenue price
Value Calculated Using
Capitalization (DC) Method
Operating revenues
Potential gross revenue

181,266
181,266

Vacancy loss, etc.
Operating expenses
Maintenance expenses
PM fees

0
12,7690
240

Real estate taxes
Insurance premiums
Other expenses
Net operating income (NOI)
Gain on management ofincome from lump-sum
payment
Capital expenditures
Net Cash Flows

12,5290
168,4970Overall Capitalization Rate

3.2%

Value Calculated Using DiscountCash Flow (DCF) Method
Discount Rate

168,497

5,160,000
3.2%

Terminal Capitalization Rate

Value Calculated Using Proportion Method
Ratio of land with leasehold interest
Other items considered by real estateappraisal agent upon appraisal

3.2%

4,200,000
80.0%

Overview, etc.
―――
Assessed based on the current fixed-term leaseagreement for business purposes―――
Assessed by taking into account the fee rates of similar
properties, with reference to the fee amounts, etc. basedon the terms and conditions of the current agreements
Assessed based on the tax base for fiscal 2015
―
―
―
―
―
Assessed by taking into account the characteristics of thelocal real estate market, terms and conditions of thelease agreements for the subject property and otherfactors, and assuming the land rent revenue based on thecurrent agreement
Assessed by taking into account the form and terms andconditions of the agreement as well as the various
characteristics of the subject real estate that were taken
into account in accessing the discount rate and theterminal capitalization rate under the DCF method, withreference to the transaction yield levels ofinvestment-grade lands with fixed-term leasehold forbusiness purposes, collected from wide areas, and otherfactors―
Assessed by comprehensively taking into account the risk
and future trends of the subject property as investment
target, future trends of property prices and rents, etc.,with reference to transaction yields of similar properties,
etc.
Assessed by comprehensively taking into account the
future trends of investment yield, risk of the subject
property as investment target, general prediction of
future economic growth rate, trends of property prices
and rents, etc., with reference to transaction yields ofsimilar properties, etc.
――

Not applicable.

(Note) The indicated figures correspond to the percentage of quasi co-ownership interest to be acquired by MCUBS MidCity.

(4) Seller Overview(a) Name(b) Location
Name and Title of(c)
Representative

GK Sakuragaoka 31
1-7-20 Yaesu, Chuo-ku, Tokyo
Representative Partner: Diamond Industrial Investment General Incorporated
Association

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

9

(d)

(e)
(f)
(g)

Executing person: Shuichi Sasaki
1. Acquisition, hold and disposition of real estate and securities
2. Leasing and management of real estate
3. Acquisition, hold and disposition of trust beneficiary interest in real estate
4. Invest to the company for the purpose of acquisition, hold and disposition of realestate or trust beneficiary interest in real estateBusiness
5．Conclusion of silent partnership agreements as defined in Article 535 of theCommercial Code, acceptance of investment capital based on such agreements, andimplementation of silent partnership investments
6．Any other auxiliary and/or related businesses to the items described above
Capital¥300,000
Date of Establishment February 6, 2015
Relationship with MCUBS MidCity or the Asset Management Company
There are no capital ties to be stated between the seller and MCUBS MidCityor the Asset Management Company. The seller is a Tokubetsu Mokuteki
Kaisha (special purpose company) that falls under the category of a
subsidiary of Mitsubishi Corporation, which is the parent company(shareholding ratio: 51%) of the Asset Management Company’s parent
Capital Ties
company (Mitsubishi Corp. - UBS Realty Inc.; shareholding ratio: 65%).
There are no capital ties to be specified between the related parties/relatedcompanies of MCUBS MidCity or the Asset Management Company and therelated parties/related companies of the seller.
There are no personnel ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no personnel ties to
Personnel Ties
be specified between the related parties/related companies of MCUBSMidCity or the Asset Management Company and the related parties/relatedcompanies of the seller.
There are no business ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no business ties to be
Business Ties
stated between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companiesof the seller.
The seller falls under the category of a related party of MCUBS MidCity or
Asset Management Company. The seller falls under the category of the
Status of Classification sponsor related party under the Regulations on Transactions with Sponsor
as Related Party
Related Parties of the Asset Management Company. The relatedparties/related companies of the seller do not fall under the category of a
related party of MCUBS MidCity or Asset Management Company.

(5) Status of Property Buyers, Etc.
The seller of the Asset falls under the category of an interested party, etc., as defined in theInvestment Trusts Act, of MCUBS MidCity. Accordingly, the status of property buyers, etc. ispresented.
Land
Status of Property Buyers
Previous Owner
Owner Before Previous Owner
Other than a party having particular
Name
GK Sakuragaoka 31
vested interest
Relationship with Parties
having Particular Vested Please refer to (4) above.
―
Interest
Acquisition background
For temporary holding―
and reason
Acquisition price¥4,833 million―
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

10

(Including otherexpenses)Acquisition period

March 2015―(6) Overview of Brokerage
Not applicable[Yokohama Creation Square](1) Overview of the Property to be Acquired
Type of Specified Asset

Trust beneficiary interest in real estate

Planned Acquisition Price

7,080,000 thousand

Location (Indicated for
Residence)

5-1 Sakae-cho, Kanagawa-ku,
Yokohama-shi, Kanagawa

Planned Acquisition Date

August 3, 2015

Land

Site Area (Note 1)

5,244.81m2 (Note 1)

ZoningCommercial district

Type ofOwnership(Note 1)

Fee simple

Evaluation Date

Evaluation
Company
Overview of
Building
Condition
Short-term
Evaluation
Repair Cost

Floor-Area Ratio /Building-to-Land 500%/80%
Ratio (Note 2)

June 2015
Tokyo Bldg-TechCenter Co., Ltd.,Engineering and Risk
Services Corporation/
OYO RMS
Corporation¥0

Structure

SRC/S with aluminum slate flat roof,
B1/20F

Long-term
Repair Cost
(Note 4)

Total Floor Area

21,054.60m2

PML

Sectional ownership

Rentable Area

12,797.73m2

Use

Office, retail

Rental Area

11,674.99m2

Completion Date

March 25, 1994

Building Type ofOwnership(Note 3)

Property Management
Consignee
Building Management
Consignee
TrusteeOccupancy Rate
Overview ofLeasing
Total Tenants

Toden Real Estate Co., Inc.
Toden Real Estate Co., Inc.
Sumitomo Mitsui Trust Bank, Limited

Total Annual
Rent
Security Deposit/ Guarantee,
Etc.

¥491,167 thousand/12 years
4.5%

91.2%
38
544,630 thousand
446,365 thousand(Special Notations )Not applicable(Note 1) Ratio of right of site: 75.39917959%. The land of the Property is common to the land of Yokohama Portside Reina, an adjacent building withsectional ownership, and ownership with right of site has been registered for the building of the Property and Yokohama Portside Reina as asingle unit. Furthermore, the indicated site area includes the area of the land for Yokohama Portside Reina.
(Note 2) The floor-area ratio of the Property’s land is essentially 500%, but has been granted expansion to 530.97%.
(Note 3) Ratio of exclusive area: 96.47%(Note 4) The figure has been obtained by multiplying the figure calculated for the entire building by the ratio of the exclusive area (96.47%).

(2) Reason for Acquisition and Leasing
The following points were evaluated in particular in the decision to acquire the Asset.
(Regional Characteristics)
In the area around Yokohama Station where the Property is located, the vacancy rate stood at 5.1% as ofthe end of March 2015, remaining at a level lower than the vacancy rate of entire Yokohama (6.4%). In
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

11

such an area, the Property is seven-minute walk from Yokohama Station on the JR lines, located in thePortside district in front of the east exit of the station where there is a concentration of large officebuildings and that is accessible from the station through the sky deck (Bay Quarter Walk).
(Property Characteristics)
The Property is a large office building with a standard floor area of approximately 230 tsubos, allowing avariety of floor layouts in which a single floor can be divided into 8 sections (ranging from approx. 20
tsubos to approx. 230 tsubos each). It is highly recognized for the flexibility and use efficiency of its
column-free spaces. Another characteristic of the Property is its view overlooking the sea. As for theappearance, it features a stylish, glass-covered façade. A cafeteria is set up in the atrium of its well-lit
entrance hall.
(3) Overview of Appraisal Report
Appraiser

The Tanizawa Sogo Appraisal Co., Ltd.

Final Appraisal Value¥7,280,000 thousand

Appraisal Date

June 1, 2015
Item

Details(Unit: thousand yen)
7,280,000
Direct7,510,000

Revenue price
Value Calculated Using
Capitalization (DC) Method
Operating revenues
Potential gross revenue
Vacancy loss, etc.
Operating expenses
Maintenance expenses

649,021683,180
34,159268,335
0

Utility expenses

69,256

Repair expenses

8,595

PM fees

5,971

Tenant solicitation
expenses, etc.
Real estate taxes

3,121
52,833

Insurance premiums
Other expenses

1,719
126,838

Net operating income (NOI)
Gain on management ofincome from lump-sum
payment
Capital expenditures

380,686
7,117

Net Cash Flows
Overall Capitalization Rate

367,748
4.9%

20,055

Overview, etc.
―
―
―
―
―
―
Assessed based on actual results of revenue andexpenditure, etc.
Assessed by taking into account the actual results ofrevenue and expenditure, etc.
Assessed by allocating the figure based on theengineering report and similar cases to repair expenses(30%) and capital expenditures (70%)
Based on the master lease and property managementagreements
Assuming annual 10% tenant replacement
Based on the certificate of registered items in the 2015
property tax ledger and the payment notification of 2014
property tax
Based on the standard rate
Assessed by taking into account the management
regulations, accounting reports and actual results ofrevenue and expenditure, etc.
――
Assessed by allocating the figure based on theengineering report and similar cases to repair expenses(30%) and capital expenditures (70%)―
Assessed by comparing and investigating multiple
transaction yields in neighboring areas or similar areas
within the same supply and demand zone, etc. and by
taking into account the forecast of future fluctuations in
net operating income, while giving considerations to how
the discount rate is assessed.

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

12

Value Calculated Using DiscountCash Flow (DCF) Method
Discount Rate

5.0%

Terminal Capitalization Rate

5.1%

Cost method value
Ratio of Land Price
Ratio of Building Price

7,250,000
76.6%
23.4%

Other items considered by real estateappraisal agent upon appraisal(4) Seller Overview(a) Name(b) Location
Name and Title of(c)
Representative(d)Business
(e)
(f)
(g)

7,180,000

Assessed by totaling the value of net operating income
during the ownership period and the present value of thereservation value
Assessed by setting a base yield of office buildings using
accumulation method, etc. based on yields of financial
instruments and taking into account the individual risksof the subject property
Assessed based on the capitalization rate and adding theuncertainty of the future forecasts―――

Not applicable

GK TCTS06
c/o Tokyo Kyodo Accounting Office, 3-1-1 Marunouchi, Chiyoda-ku, Tokyo
Representative Partner: General Incorporated Association YCS
Executing person: Masakazu Hoingo
1. Acquisition, holding, disposition, leasing and management of real estate
2. Acquisition, holding and disposition of trust beneficiary interests in realestate3. Any other auxiliary and/or related businesses to the items described above¥2,000CapitalDate of
March 31, 2014
Establishment
Relationship with MCUBS MidCity or the Asset Management Company
There are no capital ties to be stated between the seller and MCUBS MidCity or
the Asset Management Company. The seller is a Tokubetsu Mokuteki Kaisha(special purpose company) that falls under the category of a subsidiary of
Mitsubishi Corporation, which is the parent company (shareholding ratio: 51%)
Capital Tiesof the Asset Management Company’s parent company (Mitsubishi Corp. - UBS
Realty Inc.; shareholding ratio: 65%). There are no capital ties to be specified
between the related parties/related companies of MCUBS MidCity or the AssetManagement Company and the related parties/related companies of the seller.
There are no personnel ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no personnel ties to be
Personnel Ties
specified between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companies ofthe seller.
There are no business ties to be stated between the seller and MCUBS MidCityor the Asset Management Company. There are no business ties to be stated
Business Ties
between the related parties/related companies of MCUBS MidCity or the AssetManagement Company and the related parties/related companies of the seller.
The seller falls under the category of a related party of MCUBS MidCity or
Asset Management Company. The seller falls under the category of the
Status ofsponsor related party under the Regulations on Transactions with Sponsor
Classification as
Related Parties of the Asset Management Company. The related parties/related
Related Party
companies of the seller do not fall under the category of a related party of
MCUBS MidCity or Asset Management Company.

(5) Status of Property Buyers, Etc.
The seller of the Asset falls under the category of an interested party, etc., as defined in the
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

13

Investment Trusts Act, of MCUBS MidCity. Accordingly, the status of property buyers, etc. ispresented.
Land/Building
Status of Property Buyers
NamePrevious Owner

Owner Before Previous Owner
Other than a party having particularvested interest

GK TCTS06

Relationship with Parties
having Particular Vested Please refer to (4) above.
Interest
Acquisition background
For temporary holding
and reason
Not disclosed as consent toAcquisition pricedisclosure of such information has(Including othernot been obtained from the ownerexpenses)
before previous owner
Acquisition period
May 2015――――(6) Overview of Brokerage
Not applicable[Cube Kawasaki](1) Overview of the Property to be Acquired
Type of Specified Asset

Trust beneficiary interest in real estate

Planned Acquisition Price¥20,050,000 thousand

Location (Indicated for
Residence)

1-14 Nisshin-cho, Kawasaki-ku,
Kawasaki-shi, Kanagawa

Planned Acquisition Date

August 7, 2015

Site AreaLand

6,247.94m2

ZoningCommercial district

Type ofOwnership

Fee simple

Evaluation Date

Overview of
Building
Condition
Evaluation

Floor-Area Ratio /Building-to-Land 673%/80%
Ratio (Note)

Evaluation
Company

Short-term
Repair Cost

¥0
¥1,306,350 thousand/12 years

Structure/ Floors

SRC with flat roof, B2/10F

Long-term
Repair Cost

Total Floor Area

41,290,91m2

PML

Fee simple

Rentable Area

24,462.29m2

Use

OfficeRental Area

24,462.29m2

Completion Date

May 17, 1982

Building Type ofOwnership

Property Management
Consignee
Building Management
Consignee
TrusteeJune 2015
Tokio Marine &Nichido Risk
Consulting Co., Ltd.、Engineering and Risk
Services Corporation/
OYO RMS
Corporation

The Dai-Ichi Building, Co., Ltd.
Nomura Real Estate Partners, Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited

Occupancy Rate
Overview ofTotal TenantsLeasing
Total Annual
Rent
Security Deposit/ Guarantee,
Etc.

7.0%

100.0%
8¥1,195,629 thousand¥706,054 thousand

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

14

(Special Notations )Inspections of fire-fighting equipment have pointed out malfunction, etc. of the smoke outlet controllers on the 7th floor.
However, it has been agreed with the seller that the seller will repair them, at its own responsibility and burden of expenses, by thetime the Property is acquired by MCUBS MidCity.
(Note) The Property is a real property located in the district that has been recognized as collective housing facilities under the Building Standards Act. As
such, the floor-area ratio indicates the figure designated in the Architecture (Modification) Agreement for Nisshincho District in Front of Kawasaki
Station.

(2) Reason for Acquisition and Leasing
The following points were evaluated in particular in the decision to acquire the Asset.
(Regional Characteristics)
The Kawasaki area has a history in which it played a role of driving Japan’s economic growth as a core areaof the Keihin industrial zone. Reflecting the history, the area is characterized by the concentration ofhigh-tech companies and research institutions even now. In more recent years, major corporate groups
relocated their offices to this area, generating demand for office spaces. The demand has also spread toexisting buildings to increasingly fill the vacancy. Accordingly, the vacancy rate in the Kawasaki area as ofthe end of March 2015 remained lower than the figure in the 23 wards of Tokyo. In such an area, theProperty is in close proximity (a three-minute walk) to Kawasaki Station where three JR lines are available
and, even when it rains, is accessible through the underground shopping area without getting wet with rain.
As such, the Property is located closely to Kawasaki Station that offers high traffic convenience as itneighbors Tokyo and Yokohama.
(Property Characteristics)
In the Kawasaki area where there are many medium-sized and small buildings, the Property has appeals interms of size that command scarcity value and can differentiate it from others, as it boasts a total floor areaof approximately 12,500 tsubos and a standard floor area of approximately 780 tsubos that allow it toaddress demand for large office spaces. Its rental space is quadrate that is highly versatile. Although it was
built about 33 years ago, it has been well maintained and managed as well as undergone renovation of its
common areas. In terms of facilities, the Property keeps a certain level of competitiveness, such as floorload of 500kg/m2 and electric capacitance of 60VA/m2. By appearance, it features a grid-pattern façadewith Squares as the underlying tone. The entrance hall has a wide space (ceiling height of 7m) that provides
texture and is highly lit. As such, the Property is recognized for its feel of grade.
(3) Overview of Appraisal Report
Appraiser

Daiwa Real Estate Appraisal Corporation

Final Appraisal Value¥20,400,000 thousand

Appraisal Date

June 1, 2015
Item

Revenue price
Value Calculated Using Direct
Capitalization (DC) Method
Operating revenues
Potential gross revenue

Details(Unit: thousand yen)
20,400,000 ―
20,800,000 ―
1,459,284
1,519,984

Vacancy loss, etc.
Operating expenses
Maintenance expenses

60,699456,978
106,103

Utility expenses

184,527

Repair expenses

16,636

Overview, etc.

―
Assessed with reference to the actual amounts of past
years
―
―
Assessed based on the actual value of past years and on
the current building management agreement
Assessed with reference to the actual results of past
years
Assessed based on the average annual repair expenses
described in the engineering report

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

15

PM fees
Tenant solicitation
expenses, etc.
Real estate taxes
Insurance premiums

124,568
4,542

Other expenses
Net operating income (NOI)
Gain on management ofincome from lump-sum
payment

2,767
1,002,305
12,732

Capital expenditures

97,669Net Cash Flows
Overall Capitalization Rate
Value Calculated Using DiscountCash Flow (DCF) Method
Discount Rate

917,368
4.4%
20,200,000

Terminal Capitalization Rate

4.5%

Cost method value
Ratio of Land Price
Ratio of Building Price
Other items considered by real estateappraisal agent upon appraisal(4) Seller Overview(a) Name(b) Location(c) Name and Title ofRepresentative(d)Business
(e)
(f)
(g)

9,802
8,030

4.1%

20,100,000
91.0%
9.0%

Assessed based on the current agreements
Assessed with reference to the tenant solicitation
expenses, etc. of similar properties
Assessed with reference to the actual amounts
Assessed with reference to the insurance premiums ofsimilar properties――
Assessed by comprehensively taking into account theactual management status of income from lump-sum
payment, etc. from the perspective of both management
and procurement aspects
Assessed based on the average annual amount of thereplacement costs described in the engineering report,
and by taking into account the construction management
fees
―
―
―
Assessed based on the comparison with the discountrates of transactions of similar properties and with theyields of other financial instruments, etc.
Assessed by taking into account such factors as themarketability of the subject property at the end of
period in which the capitalization rate is analyzed―――

Not applicable

YK Cube Kawasaki Investment
8-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo
Shinji Nakazawa, Director

1. Acquisition, holding and sell of trust beneficiary interest in real estate
2. Trading, leasing and management of real estate
3. Any other auxiliary businesses to the items described above
Capital¥3 million
Date of Establishment March 1, 2006
Relationship with MCUBS MidCity or the Asset Management Company
There are no capital ties to be stated between the seller and MCUBS MidCityor the Asset Management Company. There are no capital ties to be specified
Capital Ties
between the related parties/related companies of MCUBS MidCity or the
Asset Management Company and the related parties/related companies ofthe seller.
There are no personnel ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no personnel ties to
Personnel Ties
be specified between the related parties/related companies of MCUBSMidCity or the Asset Management Company and the related parties/relatedcompanies of the seller.

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

16

Business Ties

Status of Classification
as Related Party

There are no business ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no business ties to bestated between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companiesof the seller.
The seller does not fall under the category of a related party of MCUBSMidCity or Asset Management Company. The related parties/relatedcompanies of the seller do not fall under the category of a related party of
MCUBS MidCity or Asset Management Company.

(5) Status of Property Buyers, Etc.
The acquisition of the Asset is not from a party having particular vested interest with MCUBSMidCity or the Asset Management Company.
(6) Overview of Brokerage
Not applicable[Nagoya Lucent Tower](1) Overview of Silent Partnership Interest
Asset to be acquired:
Silent partnership interest backed by trust beneficiary interests in domestic real estate as entrusted
property (Note 1)
Name:
Silent Partnership Interest B in R40 GK (hereafter the “Silent Partnership Interest”) (Note 1)
Operator:
R40 GK (occasionally referred to as the “Operator”)
Valid period of the silent partnership agreement:
End of December 2017; however, the period is automatically extended for a year repeatedly until the
Operator fully repays the obligations it bears to the creditors (hereafter, the “Lenders”) of the loan
agreement dated October 18, 2012 concluded between the Operator and lending financial institutions(as amended; hereafter the “Loan Agreement”), based on the Loan Agreement.
Investment amount:¥3.7 billion
Planned acquisition date:August 3, 2015
Overview:

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

17

The overview of the silent partnership in which MCUBS MidCity invests is as follows.
(as of March 31, 2015)
R40 GK
Fixed assets (trust beneficiary interests inreal estate, etc.) (Note 1)¥29.7 billion
Other¥1.7 billion(Total assets: ¥31.4 billion)

Long-term borrowings¥19.6 billion
Net assets (silent partnership interests, etc.)(Note 2)
¥11.5 billion
Other ¥0.3 billion(Total liabilities and equity: ¥31.4 billion)(Note 1) Real estate in trust (Nagoya Lucent Tower (real estate in trust) for the trust beneficiary interests with 33.9% (and 29.5%
right of site) of the sectional ownership of Nagoya Lucent Tower (sections of the Nagoya Lucent Tower buildings
excluding the special high voltage substation building and part of the extra high voltage substation building) as assets intrust(Note 2) MCUBS MidCity plans to acquire 40% (Silent Partnership Interest B: ¥3.7 billion) of the silent partnership interestsin the Operator by ¥4,919 million..

(1) The Operator distributes monies, which correspond to the amount obtained by multiplying the
distributable cash that it receives from the trustee of the beneficiary interests in real estate, etc.
(hereafter the “Trustee”) in the month following the final day of the calculation period (meaning thetwo periods annually from the first day of April and October each year to the end of theimmediately following September and March) by the investment ratios of the silent partnership
members, to the silent partnership members as dividends for the calculation period within threemonths from the end of each calculation period. However, the Operator may reserve distributionof whole or part of the distributable cash at its discretion, within the scope not contravening theLoan Agreement, in order to pay business expenses, losses and withdrawal taxes, etc. Furthermore,pursuant to the provisions of the Loan Agreement, distribution of profits to the silent partnership
members is restricted until the obligations borne to the Lenders are fully repaid, unless priorconsent by the Lenders is obtained.
(2) The silent partnership members shall not transfer the silent partnership interests to third parties orprovide them as security for third parties unless prior written consent is obtained from theOperator, the Lenders and other silent partnership members.
(3) With regard to the real estate in trust of Nagoya Lucent Tower (real estate in trust) (hereafter the“Underlying Asset”), the Operator has concluded management bylaws (as amended; hereafter the“Management Bylaws”) with the co-owners of the sectional ownership and the owners of thespecial high voltage substation building. The bylaws require the Operator, when it transfers or put
into security the co-ownership interest of the sectional ownership of the Underlying Asset, toobtain prior written consent from the other co-owners and the owners of the extra high voltage
substation building. Moreover, the Operator and the Trustee agreed to each provision of theManagement Bylaws by submitting letters of consent as of December 21, 2007. They also agreed
that, with regard to changes in the investors and their investment ratios (including silent partnershipinvestors) of the Operator (the Trustee) who are also co-owners of the sectional ownership of theUnderlying Asset, prior written consent by other co-owners is required. Accordingly, whentransferring the silent partnership interest to third parties, written consent by the co-owners of thesectional ownership of the Underlying Asset and the owners of the special high voltage substationbuilding, as well as prior written consent of the Operator of the silent partnership, the Lenders andother silent partnership members.
(2) Overview of the Underlying Asset (Real Estate in Trust)
Property name

Nagoya Lucent Tower

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

18

Location (Indicated for
Residence)
Site AreaLand

6-1 Ushijima-cho, Nishi-ku, Nagoya-shi,
Aichi
14,100.54m2

ZoningCommercial district

Type ofOwnership

Fee simple (co-ownership)

Evaluation Date

Evaluation
Company
Overview of
Building
Condition
Evaluation Short-term
Repair Cost

Floor-Area Ratio /Building-to-Land 931.57%/80%
Ratio (Note 2)¥0

S/SRC with flat roof, B3/42F

Long-term
Repair Cost
(Note 5)

137,115.68m2

PML

Sectional ownership (co-ownership)

Rentable Area

77,087.92 m2

Use

Retail, office, parking lot, bicycle
parking lot

Rental Area

74,999.58 m2

Completion Date

November 29, 2006

Structure/ Floors(Note 3)
Total Floor Area
(Note 4)
Building Type ofOwnership

Property Management
Consignee (Note 6)
Building Management
Consignee (Note 6)
TrusteeJune 2015
Tokio Marine &Nichido Risk
Consulting Co., Ltd.,Engineering and Risk
Services Corporation/
OYO RMS
Corporation

Not disclosed
Not disclosed
Sumitomo Mitsui Trust Bank, Limited

Occupancy
Rate(Note 6)
Overview ofTotal TenantsLeasing(Note 6)
Total Annual
Rent (Note 6)
Security Deposit/ Guarantee,
Etc. (Note 7)¥539,304 thousand/12 years―%

Not disclosed
Not disclosed
Not disclosed
Not disclosed(Special Notations )1. The Underlying Asset plans to set part of its site as vacant space open to the public, and is thus allowed to have a relaxed
floor-area ratio, as described in (Note 2) below. The vacant space open to the public must be provided to the general public forpassage, as well as must be maintained and managed.
2. Management bylaws have been concluded among the co-owners of the sectional ownership of the Underlying Asset. The bylaws
stipulate that, when transferring or putting into security the owned co-ownership interest of the sectional ownership of theUnderlying Asset, prior written consent of other co-owners is required and that, when transferring whole or part of the owned
co-ownership interest of the sectional ownership of the Underlying Asset, an offer of transfer shall be made preferentially to theother co-owners and, when no agreement is reached, a transfer to third parties may be made under the same content andconditions provided to the other co-owners.
(Note 1) The Underlying Asset represents the 33.9% co-ownership interest (and 29.5% right of site) of the sectional ownership of Nagoya Lucent Tower(sections of the Nagoya Lucent Tower buildings excluding the special high voltage substation building and part of the extra high voltage substationbuilding). The site area includes the site for the special high voltage substation building.
(Note 2) The floor-area ratio of the land of the Underlying Asset is essentially 500% but, due to application of the total design system, is set at 931.57%
after being expanded.
(Note 3) Of the buildings of the Underlying Asset, the structure and floors of the office building are indicated.
(Note 4) The buildings of the Underlying Asset are buildings with sectional ownership, and the trustee owns co-ownership interests of the said buildings
with sectional ownership. However, the total floor area indicates the figure that is the sum total of the three buildings with sectional ownershipexcluding the special high voltage substation building.
(Note 5) The figure is ¥182,827 thousand /12 years when calculated at the equity interest owned by the trustee.
(Note 6) The figure is not disclosed as consent to disclose such information has not been obtained from other co-owners of the buildings with sectional
ownership.
(Note 7) The Operator has given the leasing authority of its co-ownership interest of the buildings with sectional ownership to Taisei Corporation and, as
its consideration, receives payment of tenant rents in proportion to the co-ownership interest owned by the trustee. The Total Annual Rent andSecurity Deposit / Guarantee, Etc. are not disclosed as no consent to disclose such information has been obtained from other co-owners of thebuildings with sectional ownership.

(3) Reason for Acquisition and Leasing
The following points were evaluated in particular in the decision to acquire the Asset.
(Regional Characteristics)
The Meieki area where the Underlying Asset is located is in close proximity to Nagoya Station, which is thelargest terminal station in the Chubu area and provides services of JR, Meitetsu, Kintetsu and city subway
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

19

lines. It is a favorable location where the largest tenant demand in Nagoya City is expected. The vacancy
rate of the area was 2.2% as of the end of March 2015, the lowest in the city. With multiple large-scale
redevelopment projects under way in the area, a further concentration of large-scale companies isanticipated. The property is a five-minute walk from Nagoya Station on the JR lines, which offers hightraffic convenience, and is accessible without getting wet with rain through an underground passage(Lucent Avenue) directly connecting to Nagoya Station.
(Property Characteristics)
With a total floor area of over 40,000 tsubos and a standard floor area of over 600 tsubos, the Underlying
Asset has a size that is among the highest in the areas within Nagoya City. It provides good visibility with
its height (42 floors) and the arch-shaped, characteristic appearance. Moreover, it is a relatively newly built
building completed in November 2006, and features such specifications as individually-controlled
air-conditioning system (up to 6 sections per floor), floor load of 500kg/m2, ceiling height of 2,750mm
and OA-compatible floor of 100mm. Accordingly, the Underlying Asset is highly recognized for its market
competitiveness as a relatively newly built, high-grade large building that commands scarcity value in the
Nagoya area.
(4) Operator Overview
(a)
Name
(b)
Location of
Headquarter(c)Name and Title ofRepresentative
(d)
(e)

(f)

(g)

CapitalDate of
Establishment

R40 GK
Nihonbashi 1-chome Building, 1-4-1 Nihonbashi, Chuo-ku, Tokyo
Representative Partner: Urban Redevelopment holdings General Incorporated
Association
Executing person: Akira Sugai¥100,000
November 21, 2007

(1) Acquisition, holding and disposition of trust beneficiary interest in realestate targeted to Nagoya Lucent Tower(2) Acquisition, development, holding, disposition, leasing and management ofreal estate targeted to Nagoya Lucent Tower
Business(3) Acquisition, holding and disposition of shares, equity interests, specified
interests, etc. of companies that aim to conduct businesses in each of theabove items
Anyother auxiliary businesses to the items described above(4)
Relationship with MCUBS MidCity or the Asset Management Company
There are no capital ties to be stated between the Operator and MCUBSMidCity or the Asset Management Company. There are no capital ties to be
Capital Ties
specified between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companies of
the Operator.
There are no personnel ties to be stated between the Operator and MCUBSMidCity or the Asset Management Company. There are no personnel ties to be
Personnel Ties
specified between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companies of
the Operator.
There are no business ties to be stated between the Operator and MCUBSMidCity or the Asset Management Company. There are no business ties to bestated between the related parties/related companies of MCUBS MidCity or
Business Ties
the Asset Management Company and the related parties/related companies of
the Operator.

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

20

Status ofClassification as
Related Party

The Operator does not fall under the category of a related party of MCUBSMidCity or Asset Management Company. The related parties/relatedcompanies of the Operator do not fall under the category of a related party of
MCUBS MidCity or Asset Management Company.

(5) Seller Overview(a) Name
Hulic Co., Ltd.
(b) Location
7-3 Nihonbashi Odenmacho, Chuo-ku, Tokyo(c) Name and Title of
Saburo Nishiura, President, Representative Director and Chief Executive
Representative
Officer(d) Business
Owning, lease, sale and brokerage of real estate(e) Capital¥62.628 billion (as of May 31, 2015)(f) Date of Establishment March 1957(g) Net Assets¥212,697million (as of March 31, 2015)(a) Total Assets¥857,888million (as of March 31, 2015)(b) Relationship with MCUBS MidCity or the Asset Management Company
There are no capital ties to be stated between the seller and MCUBS MidCityor the Asset Management Company. There are no capital ties to be specified
Capital Ties
between the related parties/related companies of MCUBS MidCity or the
Asset Management Company and the related parties/related companies ofthe seller.
There are no personnel ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no personnel ties to
Personnel Ties
be specified between the related parties/related companies of MCUBSMidCity or the Asset Management Company and the related parties/relatedcompanies of the seller.
There are no business ties to be stated between the seller and MCUBSMidCity or the Asset Management Company. There are no business ties to be
Business Ties
stated between the related parties/related companies of MCUBS MidCity or
the Asset Management Company and the related parties/related companiesof the seller.
The seller does not fall under the category of a related party of MCUBS
Status of Classification MidCity or the Asset Management Company. The related parties/related
as Related Party
companies of the seller do not fall under the category of a related party of
MCUBS MidCity or the Asset Management Company.
(6) Status of Property Buyers, Etc.
The acquisition of the Asset is not from a party having particular vested interest with MCUBS Mid Cityor the Asset Management Company.
(7) Overview of BrokerageNot disclosed as permission to disclose such information has not been obtained from the broker
4. Transactions with Interested Persons, Etc.
Of the assets described above, the sellers of the three properties (G-Square Shibuya Dogenzaka, Shibuya
Sakuragaoka Square (land with leasehold interest) and Yokohama Creation Square) fall under the category ofinterested parties, etc. under the Investment Trusts Act. As such, pursuant to the Investment Trusts Act, theAsset Management Company has obtained consent to their acquisition from MCUBS MidCity based on theapproval made at the latter’s board of directors meeting held today.
Moreover, these sellers fall under the category of the sponsor related party under the Regulations on
Transactions with Sponsor Related Parties, the Asset Management Company’s internal regulations which has
been formulated with the purpose of preventing transactions and such that could undermine interest of
MCUBS MidCity to benefit the Asset Management Company or interested parties, etc., and of protecting
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

21

interest of MCUBS MidCity.
Upon concluding agreements with these sellers, the Asset Management Company followed the proceduresof deliberation and approval by its Compliance Committee, deliberation and decision by its Investment
Committee and resolution by its Board of Directors, based on the Regulations on Transactions withSponsor Related Parties. Members of the Compliance Committee and the Investment Committee include
outside experts, respectively.
Furthermore, as described in the overview of respective properties, MCUBS MidCity will consign
property management and building management operations of the Assets to respective consignees.
Such consignees do not fall under the category of the sponsor related party under the Regulations on
Transactions with Sponsor Related Parties.
5. Fund for Acquisition and Settlement Method
MCUBS MidCity will acquire the Assets to be Acquired by using proceeds from issuing new investment
units and borrowing funds, as well as using cash on hand. As for the issuance of new investment units andborrowing of funds, please refer to “Notice Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” and “Notice Concerning Debt Financing,” respectively, both separately
announced today. With regard to the settlement method, MCUBS MidCity plans to settle the acquisition bymaking a single payment of the entire amount of the acquisition price upon delivery for each property.
6. Schedule for Acquisition
Property Name
G-Square Shibuya
Dogenzaka
Shibuya Sakuragaoka
Square(land with leaseholdinterest)(40% quasi co-ownership)
Yokohama Creation Square
Cube Kawasaki
Nagoya Lucent Tower(Silent partnership interest)

Date of Concluding Trust
Beneficiary Interest Transfer
Agreement or Silent Partnership
Interest Transfer Agreement

Acquisition Date

Payment Date

July 9, 2015

August 3, 2015

August 3, 2015

July 9, 2015

August 3, 2015

August 3, 2015

July 9, 2015
July 9, 2015

August 3, 2015
August 7, 2015

August 3, 2015
August 7, 2015

July 9, 2015

August 3, 2015

August 3, 2015

7. Matters Concerning Forward Commitment, Etc.
Not applicable.
8. Outlook
As for the outlook of the business results for the fiscal period ending Decmber 31, 2015 (19th fiscal period:
July 1, 2015 to December 31, 2015) and the fiscal period ending June 30, 2016 (20th fiscal period: January 1,
2016 to June 30, 2016) as a result of acquiring the Assets to be Acquired, please refer to “Notice Regarding
Revision of Business Results and Distributions Forecast for the 19th Period Ending December 31, 2015 andNotice Regarding Business Results and Distributions Forecast for the 20th Period Ending June 30, 2016”separately announced today.
[Attachments]
Attachment 1: Assumed NOI and Depreciation of the Assets to be Acquired
Attachment 2: Property Portfolio after Acquisition of the Assets to be Acquired
Attachment 3: Photograph and Map of Asset to be Acquired
Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

22

Attachment 1
Assumed NOI and Depreciation of the Assets to be Acquired
Assumed NOI (Note 1)
Depreciation (Note 2)
G-Square Shibuya Dogenzaka¥440 million a year
¥43 million a year
Shibuya Sakuragaoka Square (land¥168 million a yearwith leasehold interest)
Yokohama Creation Square¥359 million a year
¥66 million a year
Cube Kawasaki¥921 million a year
¥61 million a year
Subtotal¥1,889 million a year
¥172 million a year
(Note 1)

(Note 2)

Assumed NOI (Net Operating Income) is the estimated amount of property leasing revenue, less property leasing expenses, assuming the burden of property
taxes and city planning taxes for the full year based on the lease agreement terms and conditions, etc. on the planned acquisition date. The figures are
estimates by MCUBS MidCity at time of steady stable occupancy, assuming the occupancy rate to be 97.5% for G-Square Shibuya Dogenzaka, 95.0% for
Yokohama Creation Square and 97.0% for Cube Kawasaki.
The figures are estimates by MCUBS MidCity at time of steady stable occupancy.

The figures above are not the forecast figures for the current period or subsequent periods.

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

23

Attachment 2
Property Portfolio after Acquisition of the Assets to be Acquired
Acquisition Price
Investment(planned)
Ratio (%)
Property Name
(Note 1)
(Note 2)
(Millions of Yen)

RegionAcquisition Date(planned)

Office Building

Tokyo
Metropolitan
Area

Osaka
Metropolitan
Area

Sumitomo Fudosan Ueno Bldg.
No. 6
G-Square Shibuya Dogenzaka
Shibuya Sakuragaoka Square (landwith leasehold interest)
Yokohama Creation Square

7,460

3.5

May 1, 2015

12,2205.7

August 3, 2015

5,000

2.3

August 3, 2015

7,080

3.3

August 3, 2015

Cube Kawasaki

20,0509.4

August 7, 2015

Twin 21 (Note 3)

68,70032.0

August 31, 2006

Matsushita IMP Bldg.

24,600

11.5

Midosuji MID Bldg.

8,290

3.9

MID REIT Kyobashi Bldg.

2,300

1.1

August 31, 2006
August 31, 2006
October 31, 2007
August 31, 2006

MID Imabashi Bldg.

3,270

1.5

April 3, 2007

MID Midosujikawaramachi Bldg.

2,000

0.9

May 16, 2007

Kitahama MID Bldg.

10,800

5.0

April 24, 2008

MID Nishimotomahi Bldg.

3,550

1.7

October 30, 2008

Higobashi MID Bldg.

3,000

1.4

June 21, 2013

Subtotal (14 properties)

178,320

83.2

26,10012.2

August 31, 2006

2,780

1.3

August 31, 2006

2,280

1.1

September 30, 2013

31,160

14.5

4,919

2.3

214,399

100.0

Other than office building
Tokyo
Metropolitan AEON MALL Tsudanuma
Area
Osaka
Metropolitan Konami Sports Club Kyobashi
Area
Other
Dormy Inn Hakata Gion
Subtotal (3 properties)
Silent Partnership Interest for Office Building
Nagoya Lucent Tower
Nagoya Area
(Silent partnership interest)
Total (18 properties)

August 3, 2015

(Note 1) Acquisition price (planned) has been rounded down to the nearest million yen.
(Note 2) Investment ratios presented in the table above have been rounded to the nearest first decimal place. Accordingly, the sum of theinvestment ratio figures may not add up to 100.0%.
(Note 3) Data for Twin 21 includes the trust beneficiary interest of Twin 21 (partial ownership of land with leasehold interest).

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

24

Attachment 3

Photograph and Map of Asset to be Acquired [G-Square Shibuya Dogenzaka]

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

25

Photograph and Map of Asset to be Acquired [Shibuya Sakuragaoka Square (land with leasehold interest)]

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

26

Photograph and Map of Asset to be Acquired [Yokohama Creation Square]

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

27

Photograph and Map of Asset to be Acquired [Cube Kawasaki]

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

28

Photograph and Map of Asset to be Acquired[Underlying Real Estate of Nagoya Lucent Tower (Silent Partnership Interest)]

Note: This press release provides information regarding MCUBS MidCity’s acquisition and lease of trust beneficiary interest in domestic real estate and acquisition ofsilent partnership interests, and is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before
investing in MCUBS MidCity. Investors are advised to read Prospectus Concerning the Issue and Sale of New Investment Units and its corrections (if prepared) before
making investment decisions, which are investors’ sole discretion and responsibility and are made at their own risk. MCUBS MidCity and its affiliates disclaim any
responsibility or liability for the consequence of investment in MCUBS MidCity.

29