[For Information Purpose Only]
June 23, 2014
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Akiko Watanabe, Manager(Tel. +81-3-5411-2731)

Notice concerning Acquisition of Assets and Entering into Leasing Contract
Invincible Investment Corporation (“INV”) announced today the decision made by Consonant Investment
Management Co., Ltd. (“CIM”), the asset manager of INV, regarding the acquisition of assets (eighteen hotels,or the “Eighteen Properties”). In connection with the acquisition of the Eighteen Properties, INV will enter into
a new leasing contract with respect to the Eighteen Properties.
1.

Overview of Acquisition

Use

Property
Number

D3

Hotel

D4

Property Name

Hotel MyStays
Kyoto-Shijo

Location

AnticipatedAcquisition Price(million yen)
(Note 1)

Kyoto-shi,
Kyoto

MyStays ShinUrayasu
ConferenceCenterUrayasu,
Chiba

Hotel MyStays
Maihama

Urayasu,
Chiba

6,024

Appraisal
Value(million
yen)

6,110

Seller(Note 2)

Shijodori Holding
Tokutei Mokuteki
KaishaCategoryofSpecified
Assets
Trust
Beneficial
Interest
Trust

4,930

4,980

Zephyrus Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D5

4,870

4,920

Zephyrus Tokutei
Mokuteki Kaisha

Beneficial
Interest

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1

Use

Property
Number

Property Name

Location

Hotel Vista
Premio Dojima

Osaka-shi,
Osaka

AnticipatedAcquisition Price(million yen)
(Note 1)

Appraisal
Value(millionyen)

Seller(Note 2)CategoryofSpecified
Assets
Trust

D6

3,845

3,900

Danube Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D7

Hotel MyStays
Nagoya-Sakae

Nayoga-shi,
Aichi

2,958

3,000

Zephyrus Tokutei
Mokuteki Kaisha

Beneficial
Interest

D8

D9

Hotel MyStays
Sakaisuji-Honmachi

Osaka-shi,
Osaka

Hotel MyStays
Yokohama

Yokohamashi,
Kanagawa

2,514

2,530

Nagahoribashi
Holding Tokutei
Mokuteki Kaisha

Trust
Beneficial
Interest
Trust

2,119

2,150

Zephyrus Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D10

Hotel MyStays
NipporiArakawa-ku,
Tokyo

1,898

1,910

Nishi Tokutei
Mokuteki Kaisha

Beneficial
Interest

D11

Hotel MyStays
Fukuoka-TenjinMinami

Fukuokashi,
Fukuoka

Flexstay Inn
Iidabashi

Shinjuku-ku,
Tokyo

1,570

1,580

Shijodori Holding
Tokutei Mokuteki
KaishaTrust
Beneficial
Interest
Trust

D12

1,381

1,390

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D13

Hotel MyStays
Ueno Inaricho

Taito-ku,
Tokyo

1,331

1,340

Nishi Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D14

Flexstay Inn
ShinagawaShinagawaku, Tokyo

1,242

1,250

Nishi Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D15

Flexstay Inn
Tokiwadai

Itabashi-ku,
Tokyo

1,242

1,250

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

2

Use

Property
Number

Property Name

Location

AnticipatedAcquisition Price(million yen)
(Note 1)

Appraisal
Value(millionyen)

Seller(Note 2)CategoryofSpecified
Assets
Trust

D16

Flexstay Inn
SugamoToshima-ku,
Tokyo

1,192

1,200

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D17

Hotel MyStays
OtemaeOsaka-shi,
Osaka

1,192

1,200

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest

D18

Trust

Flexstay Inn
Kiyosumi
Shirakawa

Koto-ku,Tokyo

Flexstay Inn
Nakanobu P1

Shinagawaku, Tokyo

749

754

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D19

589

593

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest
Trust

D20

Flexstay Inn
Nakanobu P2

Shinagawaku, Tokyo

283

285

Aki Tokutei
Mokuteki Kaisha

Beneficial
Interest

Total

39,93840,342・Purchase and sale agreement execution date

: June 23, 2014

・Anticipated acquisition date

: July 17, 2014 (Note 3): Funds raised through an issuance of new
investment units (those from public offering)(Note 4) and new loan (Note 5): Lump-sum payment at time of delivery

・Acquisition funds

・Settlement method(Note 1)

Anticipated acquisition prices do not include adjustments for property taxes or city planningtaxes, or national or local consumption taxes; hereinafter the same.

(Note 2)For an overview of the sellers, please refer to “4. Overview of Sellers” below.

(Note 3)

The anticipated acquisition date is July 17, 2014 at the earliest. However, if the payment date
for the offering of the new investment units (the “Offering”), as described in “Noticeconcerning Issuance of New Investment Units and Secondary Distribution of Investment
Units” dated today, is changed to a date after July 16, 2014, then the acquisition date is
expected to also be changed to a date immediately following such payment date, and in thelatest case would be July 22, 2014. Furthermore, based on the purchase and sale agreementwith the seller of the assets anticipated to be acquired, the acquisition date can be changed
to a date up to July 22, 2014 by providing a three business day prior notice.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3

(Note 4)

For details of the issuance of new investment units, please refer to the “Notice concerning
Issuance of New Investment Units and Secondary Distribution of Investment Units” dated asof today.

(Note 5)For details of the new loan, please refer to the “Notice concerning Debt Financing andPrepayment of Existing Borrowings” dated as of today.

(Note 6)2.

Amounts are rounded down to the nearest million yen; hereinafter the same.

Reasons for Acquisitions
As noted in “Notice concerning Partial Revision of Internal Rules (the Investment Guidelines) of theAsset Management Company” dated as of today, based on INV’s investment target and policies
stipulated in its articles of incorporation, INV has endeavored to construct a portfolio which places astrong emphasis on both improved stability and future growth through the addition of stable revenue andhigh growth potential of hotels, in addition to the high level of revenue stability provided up to now by the
portfolio focused on the greater Tokyo area and residential properties.
In connection with this, CIM has decided to acquire eighteen new hotels that provide both stability andpotential for further growth.

(1) Characteristics of limited service/extended stay hotels
A high profit ratio can be expected for limited service/extended stay hotels which are characterizedby limited offering of services and amenities. In addition, due to the unique characteristic of being
able to flexibly meet customer demand for daily, weekly or monthly stays, limited service/extended
stay hotels can expect to achieve a relatively stable and high occupancy level as compared tofull-service hotels with primarily daily users. Among the 20 properties (collectively, the “Hotels”)
consisting of 18 hotels which INV expects to acquire and the two hotels which INV has acquired on
May 23, 2014, all but three properties (i.e., Hotel MyStays Kyoto-Shijo, Hotel MyStays Maihama andHotel Vista Premio Dojima) (Note 1) are categorized as limited service/extended stay hotels andthus possess both characteristics mentioned above.

In addition, all 20 properties are limited

service hotels, and each of them, in addition to a minimum fixed rent, also has a variable rent
feature that is linked to the GOP of the respective hotels. A management service fee which is tied
to sales, GOP, etc. is paid for each property, and a variable rent is calculated by subtracting the sumof management service fee, various reimbursements and fixed rent from the aggregate sales
amount (for details, please see “3. Details of Assets to be Acquired” below). As such, since leaseagreements are structured to capture the upside from GOP growth, INV believes that improved
revenue can be expected based on high profit ratio.
As stated in “Notice concerning Partial Revision of Internal Rules (the Investment Guidelines) of theAsset Management Company” dated as of today, INV will position hotels as its core asset along withresidential properties and will pursue stability and portfolio revenue growth through an
implementation of its external growth strategy based on an active investment in such properties.
(Note 1)As these three properties do not offer an extended stay plan, they are not included in theThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

4extended stay category.
(Note 2)For status of income and expenses, etc. of the 18 hotel properties expected to be acquired,
see “[References] 1. Status of Income and Expenses and Summary of Real Estate Appraisalof the Eighteen Properties”.

(2) Growth potential of limited service/extended stay hotels market
We believe the market for the limited service/extended stay hotels in Japan has a high growthpotential for the following reasons.
● The market share of the limited service/extended stay hotels has been expanding and theiroccupancy level has maintained a high level for the last few years.
● Air traffic capacity at both Haneda Airport and Narita International Airport has expanded andinternational routes have also increased.
● Foreign and domestic tourists have been increasing due to the weakening of Japanese yen
following Japan’s government leadership change in December 2012.
● Japanese government initiatives to promote tourism.
● The number of hotel guests has been steadily increasing.
(3) Execution of Lease Contracts
INV, who will become the owner of the Eighteen Properties, expects to lease Hotel Vista Premio
Dojima to MGH Master Lease Co., Ltd. (“MGH”), Hotel MyStays Nagoya-Sakae to Yugen Kaisha
Nagoya Hotel Management (“Nagoya HM”) and the remaining 16 hotels to Flexstay HotelManagement Co., Ltd. (“FHM”) by entering into lease contracts with each of FHM, MGH andNagoya HM, each of which has a solid track record in hotel operations. Based on the lease
contract, INV will receive, in addition to fixed rent, a variable rent linked to the relevant hotel’s GOP.
In accordance with the lease contract, INV receives, through the tenant and then the trustee,revenues from the tenant’s hotel operation after deducting costs and a certain amount reserved by
the tenant. As mentioned above, as lease agreements are structured to capture the upside from
GOP growth, INV believes that improved revenue can be expected based on high profit ratio.
<Overview of Tenant and Operator>
An overview of the tenants and operators for the Eighteen Properties is as follows:
The tenant and operator of Hotel MyStays Kyoto-Shijo, MyStays Shin-Urayasu Conference Center,
Hotel MyStays Maihama, Hotel MyStays Sakaisuji-Honmachi, Hotel MyStays Yokohama, Hotel
MyStays Nippori, Hotel MyStays Fukuoka-Tenjin-Minami, Flexstay Inn Iidabashi, Hotel MyStays
Ueno Inaricho, Flexstay Inn Shinagawa, Flexstay Inn Tokiwadai, Flexstay Inn Sugamo, Hotel
MyStays Otemae, Flexstay Inn Kiyosumi Shirakawa, Flexstay Inn Nakanobu P1, and Flexstay Inn
Nakanobu P2, and the operator of Hotel MyStays Nagoya-Sakae.
(i)

Name

Flexstay Hotel Management Co., Ltd.

(ii)

Location

Leaf Square Hongo Building 5F, 1-24-1 Hongo, Bunkyo-ku, Tokyo, Japan

(iii)

Title

and

name

of

Atsuki Asano, President and CEO

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

5representative officer(iv)

Business

Hotel and Ryokan (Japanese inn) operation and management(v)

CapitalJPY 100 million(as of the date of thisnotice)(vi)

Date of establishment(vii)

Relationship between INV/Asset Manager and the Tenant/Operator
Capital relationships

July 8, 1999
While there are no capital relationships that should be noted between
INV/CIM and the tenant/operator, the parent company of the tenant isindirectly owned by funds managed by affiliates of Fortress Investment
Group LLC (“FIG”), which is an affiliate of Calliope Godo Kaisha(“Calliope”).

Calliope holds 609,942 units of INV’s outstanding

investment units (investment unit holding ratio: 38.77%) as of December
31, 2013. Further, as of the date of this notice, Calliope is the parent
company of CIM, holding 100% of its outstanding shares.
Personal relationships

As of the date of this notice, among the employees of CIM, one employee
is seconded from the tenant/operator.

Transactional

INV has entered into a lease contract with the tenant/operator withrelationships

respect to two hotel properties acquired on May 23, 2014.

Whether the Operator

The tenant/operator is not a related party of INV or CIM. Further, related

is a related party

persons and affiliates of the tenant are not related parties of INV or CIM.
Furthermore, the tenant is not an interested party, etc. of CIM as provided
in the Act on Investment Trusts and Investment Corporations(“Investment Trust Act”).

The tenant of Hotel Vista Premio Dojima
(i)

Name

MGH Master Lease Co., Ltd.

(ii)

Location

EP Consulting Services Corporation, 1-2-9, Nishi-shimbashi, Minato-ku,
Tokyo

(iii)

Title

and

name

of

Eiichoro Yokoyama, CEOrepresentative officer(iv)

Businessa. Leasing of properties
b. Management of properties
c. All other businesses ancillary to the preceding items.

(v)

Capital

JPY 900 million(as of the date of thisnotice)(vi)

Date of establishment

August 17, 2006

(vii)

Relationship between INV/Asset Manager and the Tenant

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

6Capital relationships

While there are no capital relationships that should be noted between
INV/CIM and the tenant, the parent company of the tenant is owned by aJapanese charitable trust (ippan shadan hojin) whose funds (kikin) areindirectly contributed by funds managed by affiliates of FIG, which is anaffiliate of Calliope. Calliope holds 609,942 units of INV’s outstanding
investment units (investment unit holding ratio: 38.77%) as of December
31, 2014. Further, as of the date of this notice, Calliope is the parent
company of CIM, holding 100% of its outstanding shares.

Personal relationships

There are no personal relationships that should be noted between
INV/CIM and the tenant.

Transactional

There are no transactional relationships that should be noted between

relationships

INV/CIM and the tenant.

Whether the Operator

The tenant is not a related party of INV or CIM. Further, related persons

is a related party

and affiliates of the tenant are not related parties of INV or CIM. The
tenant is not an interested party, etc. of CIM as provided in the Investment
Trust Act.

The operator of Hotel Vista Premio Dojima
(i)

Name

Vista Hotel Management Co., Ltd.

(ii)

Location

9-1 Kanda-Mitoshirocho, Chiyoda-ku, Tokyo, Japan

(iii)

Title

and

name

of

Katsurou Ouchi, CEOrepresentative officer(iv)

Businessa. Operation, administration, management, and consulting for hotels,
cafeterias, cafes, and amusement centers
b. Import and exports, domestic sales, and representative intermediaryservices for pharmaceutical products, textile products for clothing,leather products, art products, and daily commodities
c. Sale of tobacco, stamps and revenue stamps
d. Services for the solicitation of life insurance and representative service
of non-life insurancee. Financial services
f. Travel agent services and tourism businessg. Sale and purchase, leasing, intermediation and administration ofproperties
h. Administration

andconsultingformanagement,

finances,

administration and general affairs
i. All other businesses ancillary to the preceding items.
(v)

CapitalJPY 1 billion(as of the date of thisnotice)(vi)

Date of establishment

September 20, 2006

(vii)

Relationship between INV/Asset Manager and the Tenant

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

7Capitalrelationships,

As of the date of today, there are no capital relationships, personal

personal relationships,

relationships, or transactional relationships between INV/CIM and thetransactional

operator that should be noted. Furthermore, the operator is not a related

relationships

andparty of INV or CIM.

whether the Operator
is a related party
The tenant of Hotel MyStays Nagoya-Sakae
(i)

Name

Yugen Kaisha Nagoya Hotel Management(ii)

Location

EP Consulting Services Corporation, 1-2-9, Nishi-shimbashi, Minato-ku,
Tokyo

(iii)

Title

and

name

of

Kazumasa Takizawa, Director

representative officer(iv)

Businessa. Management of hotels, ryokan (Japanese inn) and restaurants,
b. Subcontracting operation of hotels, ryokan (Japanese inn) andrestaurants
c. Appliances and kitchen equipment services for hotels, ryokan(Japanese inn), restaurants, and rest homesd. Planning and subcontracting for events such as parties
e. Management of parking lots and amusement parks and amusement
centersf. Sales and wholesale of folk crafts and handicrafts and management ofsouvenir shops
g. Subcontracting of building maintenanceh. Representative service of non-life insurance and services for thesolicitation of life insurance
i. Leasing, intermediation, servicing and administration of properties
j. Advertising representation
k. All other businesses ancillary to the preceding items.

(v)

CapitalJPY 4.8 billion(as of the date of thisnotice)(vi)

Date of establishment(vii)

Relationship between INV/Asset Manager and the Tenant
Capital relationships

March 16, 2004
While there are no capital relationships that should be noted between
INV/CIM and the tenant, the parent company of the tenant is owned by aJapanese charitable trust (ippan shadan hojin) whose funds (kikin) areindirectly contributed by funds managed by affiliates of FIG, which is anaffiliate of Calliope. Calliope holds 609,942 units of INV’s outstanding
investment units (investment unit holding ratio: 38.77%) as of December
31, 2014. Further, as of the date of this notice, Calliope is the parent
company of CIM, holding 100% of its outstanding shares.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

8Personal relationships

There are no personal relationships that should be noted between
INV/CIM and the tenant.

Transactional

There are no transactional relationships that should be noted between

relationships

INV/CIM and the tenant.

Whether the Operator

The tenant is not a related party of INV or CIM. Further, related persons

is a related party

and affiliates of the tenant are not related parties of INV or CIM. The
tenant is not an interested party, etc. of CIM as provided in the Investment
Trust Act.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

9(4) Pre- and Post-Acquisition Investment Ratio by Property Type and Geography (based on (anticipated)acquisition price)<Investment Ratio by Geography>

3.

Details of Assets to be Acquired(1) Details of the Eighteen Properties
The details for each of the Eighteen Properties expected to be acquired are as follows:<Explanation relating to details of the Eighteen Properties>a.

“Type and Location of Specified Assets, etc.” column:

・ In “Date of (Planned) Acquisition,” the earliest date of planned acquisition is listed, but in theevent the payment date for the Offering is changed to a date after July 16, 2014, then theacquisition date is expected to also be changed to a date immediately following such payment
date, and in the latest case would be July 22, 2014. Furthermore, based on the purchase andsale agreement with the seller of the assets anticipated to be acquired, the acquisition date canbe changed to a date up to July 22, 2014 by providing a three business day prior notice.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

10・ In “(Planned) Purchase Price,” consumption tax is not included, and rounded down to thenearest million yen.
・ The details in “Location” (excluding address), “Lot Area,” “Structure/No. of Stories,” “Total Floor
Area,” “Purpose of Use,” and “Construction Date” are as shown in the property registry.

The“Total Floor Area” is the gross floor area, and with respect to “Purpose of Use,” the primaryclass shown in the property registry is listed. Further, the “Construction Date” lists the time atwhich it was newly constructed, as shown in the property register.
・ In “Zoning,” the class of zoning under Article 8(1)(i) of the City Planning Act is listed.
・ In “Building Coverage Ratio,” the ratio of a building’s area with regard to the land area as set
forth under Article 53 of the Building Standards Act is listed.
・ In “Floor Area Ratio,” the ratio of a building’s floor area with regard to the land area as set forth
under Article 52 of the Building Standards Act is listed.
・ In “Trustee,” the planned trustee at the time INV is to acquire the assets is listed.
・ In “Trust Period,” the planned trust period at the time INV is to acquire the assets is listed.
b.

“Lease Overview” column:

・ The last day of April 2014 is used as the basis.
・ In “Number of Guest Rooms,” the number of guest rooms that can be sub-leased by tenants islisted.
・ In “Leasable Area,” which means the total leasable floor area for each building, those listed in
the lease contract and diagram for the property, not including the leasable area of the land
(level parking lot), is listed.
・ In “Lease Area,” which means the total leased floor area for each building out of the leasable
floor area which a leasing agreement has actually been entered into and has been leased to an
end-tenant, those listed in the lease contract, not including the leased area of the land, is listed.
・ In “Occupancy Rate,” the ratio of the leased area to the leasable area is shown, rounded to thefirst decimal place.
・ “GOP,” or the gross operating profit, is the amount remaining after deducting the personnel,material, water, electricity and heating and advertising expenses for the hotel operations fromthe hotel’s sales.
c.

“Overview of Lease Agreement” column:

・ Based on the lease contract entered into with the tenant.
・ In “Determination of rent of lease contract,” monthly rent amount is rounded down to nearest
ten thousand yen, and annual rent is rounded down to nearest one million yen.
・ The “management services fee” is a commission fee payable to the tenant in accordance withthe provisions of the leasing contract as a compensation for operational service provided by atenant under the agreement. The management services fee is not disclosed, as tenant’sconsent has not been obtained for disclosure.

However, for FHM, an amount of the

management services fee to be received is generally (i) an amount equal to 2% of monthly
sales, (ii) an amount equal to 6% of monthly sales from direct bookings made through the
FHM’s marketing department or website, and (iii) an amount equal to 4-6% of the monthly GOP
after deducting the amounts of (i) and (ii) above.
・ In “Security Deposit/Guarantee Money,” the amount of the security deposit/guarantee money
after amortization pursuant to the lease contract is listed.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

11

d.

“Overview of Building Conditions Survey Report” column:

・ For the planned acquisition assets, INV has received a report from Tokio Marine & Nichido Risk
Consulting Co., Ltd. on building conditions survey, building deterioration survey, short- andlong-term repair plan decision, a condition survey in compliance with the Building Standards
Act, a survey of dangerous substances contained in a building, and soil survey, amongst others,
and has provided an overview of the report in this column.
・ Further, an earthquake risk analysis has been conducted and reported to INV by Tokio Marine& Nichido Risk Consulting Co., Ltd., and an overview of the report is listed in this column.
・ “Probable Maximum Loss (PML)” means the probable maximum loss from an earthquake.
There is probable maximum loss (PML) for individual properties and for portfolios as a whole.
Though there is not a strict, uniform definition for probable maximum loss (PML), in this press
release, it means to what extent damages would be borne from the largest-scale anticipatedearthquake in the anticipated planned term of use (50 years) (a large earthquake that has areoccurrence period of 475 years = a large earthquake with a 10% chance of occurring in 50
years), as indicated by the percentage (%) of the replacement price for planned recovery costs
from damage.
・ “Replacement Price” means the total amount of the appropriate costs needed in the event thatthe appraised building was rebuilt at the time of the survey.
・ “Short-term Repair Costs” indicates the repair costs for items which, as at the time of thesurvey, is not maintaining its minimum requirements due to deterioration or items which are inviolation of law or regulations, etc. and which can be judged as best to be repaired or renewed
within one year.
・ “Long-term Repair Costs” consist of capital expenditures and repair costs.

Capitalexpenditures means, of the anticipated improvement costs necessary to maintain the building
at the set building functionality level, the costs to extend the use period of the building’s
equipment or to renew it entirely. Repair costs means, of the anticipated improvement costs
necessary to maintain the building at the set building functionality level, costs other than capital
expenditures.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on theirown investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

12

D3

: HotelMyStaysKyotoͲShijo

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY6,024million
JPY6,110million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

52,KasabokoͲcho,Higashiiru,Aburanokoji,ShijyoͲdori,Shimogyo,KyotoͲshi(and3lots)(Address)

52,KasabokoͲcho,Higashiiru,Aburanokoji,ShijyoͲdori,Shimogyo,KyotoͲshi

6minswalkfromKyotoMunicipalSubwayKarasumaLine,ShijoStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

1,021.7sqm
Ownership

TotalFloorArea

CommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/700%

PurposeofUse

Hotel7,241.51sqm ConstructionDate

Structure/No.ofStories

Steelstructurewithflatroof,14stories

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea

From:February14,2008Until:July16,2024

OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

ZoningJanuary2008

㼅㼑㼟
1 NumberofGuestRooms
7,241.51sqm LeaseArea
100.0% GOP(permonth)224rooms
7,241.51sqm
JPY44,145thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY190millionperannum(January–June:JPY14.89millionpermonth/July–December:JPY16.85per
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney

JPY1,100thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

13.0% ShortͲtermRepairCosts(within1year)
JPY1,689,200thousand LongͲtermRepairCosts(in12years)

April2014
JPY50thousand
JPY126,722thousand

Thispropertyisabusinesshotellocated6ͲminswalkfromKyotoMunicipalSubwayKarasumaLine,ShijoStation,6ͲminswalkfromHankyuKyotoLine,HankyuKarasuma
Station,7ͲminswalkfromKeifukuArashiyamaLine,ShijoOhmiyaStation.Easyaccesstootherareas:4ͲminutetrainridetoKyotoMunicipalSubwayKarasumaLine,KyotoStationbysubway,55ͲminutetoItamiAirportbyshuttlebusand75ͲminutetoKansaiInternationalAirportbyJRExpress“Haruka.”Thehotelisclosetopopulartourist
attractions:NijoCastle(NijoͲjo),KiyomizuderaTemple,Kinkakuji,etc.witheasyaccessto“ShijoKarasuma,”thebusinesscenterofthecityofKyoto,whichisinawalkingdistance.Thehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.ThehotelwasselectedasarecommendedhotelintheMichelinRestaurants&HotelsGuideforthreeconsecutiveyearssince2010.TheonlyhotellimitedserviceinKyoto.

SpecialInstructions
ThePropertyisalreadynotincompliancewithregardtothepointoftheheightofthebuildingasanapplicationforaconstructionpermitwasmadepriortothelimitbeingsetfortheheightzoningrestrictionsthereisnow.
TheProperty’slandincludesthepartofroadprovision(thepartconsideredaroadunderArticle42(1)(v)undertheBuildingStandardsAct)(approx.10.4sqm).

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

13

D4

: MyStaysShinͲUrayasuConferenceCenter

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY4,930million
JPY4,980million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

2Ͳ1Ͳ1,Akemi,UrayasuͲshi,Chiba(and1lot)(Address)2Ͳ1Ͳ4,Akemi,UrayasuͲshi,Chiba

15minswalkfromJRKeiyo/MusashinoLines,ShinͲUrayasuStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

3,281.5sqm
Ownership

TotalFloorArea

Category2ResidentialDistrict

BuildingCoverageRatio/FloorAreaRatio

60%/200%

PurposeofUse

Training

6,232.3sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,7stories

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea

From:September19,2012Until:July16,2024

OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

ZoningMarch2009㼅㼑㼟
1 NumberofGuestRooms
6,232.3sqm LeaseArea
100.0% GOP(permonth)175rooms
6,232.3sqm
JPY30,124thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY149millionperannum(January–June:JPY11.16millionpermonth/July–December:JPY13.78millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

8.4% ShortͲtermRepairCosts(within1year)
JPY1,557,800thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY196,608thousand

ThispropertyisabusinesshotellocatedintheShinmachiareaofUrayasu,Chiba,20minscarridefromJRTokyoStationand15ͲminswalkfromJRKeiyoLine,ShinͲUrayasu
Station,andisequippedwithmultiͲpurposesconferencerooms.WithitsurbanresortͲliketownscapeofhighͲriseresidencescoveredinwhite,designedinthree
dimensions,representedbythetreeͲlinedSymbolRoadandMeikaiUniversity’scampusandsuccorgroundarelocated,thesurroundingenvironmentisquietbutvibrantatthesametime,sothehotelissuitableforcompanies’overnighttrainingsforyoungeremployees,forwhichbothstrictdisciplineandvibrancyaredesired.TheareaisclosetoTokyoDisneyResort,themostfamousthemeparkinJapan,andwithitseasyaccesstoit,thehotelisexpectedtoaccommodatestabledemandthroughouttheyear
withthosevisitingTokyoDisneyReportasthemaintarget,inadditiontoinvitationtoovernighttrainings.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

14

D5

: HotelMyStaysMaihama

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY4,870million
JPY4,920million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

3Ͳ187,TekkoͲdori,UrayasuͲshi,Chiba(Address)3Ͳ5Ͳ1,TekkoͲdori,UrayasuͲshi,Chiba

12minswalkfromJRKeiyo/MusashinoLines,MaihamaStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

1,322.sqm
Ownership

TotalFloorArea

QuasiͲIndustrialDistrict

BuildingCoverageRatio/FloorAreaRatio

70%/200%

PurposeofUse

Hotel2,456.36sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,7stories

RenovationDate—

TrusteeMizuhoTrust&BankingCo.,Ltd.

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:July15,2005Until:July16,2024

June2005

㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning2,456.36sqm LeaseArea
100.0% GOP(permonth)90rooms
2,456.36sqm
JPY18,411thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY141millionperannum(January–June:JPY11.02millionpermonth/July–December:JPY12.56millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

9.4% ShortͲtermRepairCosts(within1year)
JPY687,500thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY139,247thousandAresorthotellocated12ͲminutewakingdistancefromJRKeiyoLine,MaihamaStation.Ata15minutewalkfrom“TokyoDisneyland”and6minutewalkfrom“Tokyo
DisneySea,”it’spositionedinavital[location].UsersofnearbyfacilitiessuchasUrayasuTekkoDanchi,UrayasuMarinaandUrayasufuneralhallaretargetsforoffͲseason.
ThehotelprovidescomplimentaryshuttlebusrunsconnectingthehotelandtheTokyoDisneyResort.Thehotelisexpectedtohavestabledemandthroughouttheyear
mainlyfromleisuretravelers.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

15

D6

: HotelVistaPremioDojima

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
TrustBeneficialInterest
Dateof(Planned)Acquisition
7/17/2014(Planned)PurchasePrice
JPY3,845million
AppraisalValue
JPY3,900million
AppraisalAgency
JapanRealEstateInstitute
LocationTransport
Land(LotNumber)2Ͳ7Ͳ1Sonezakishinchi,KitaͲku,Osaka(and1lot)(Address)2Ͳ4Ͳ1Sonezakishinchi,KitaͲku,Osaka

5minfromJRTozaiLine,KitashinchiStation
FormofPossession

SubͲleasehold/Ownership

LotAreaFormofPossession
Building

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract
Term
Determinationofrentoflease
contract
Managementservicesfee(Note2)
SecurityDeposit/GuaranteeMoney

1,767.16sqm
Ownership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/600%

PurposeofUse

Hotel9,445.32sqm ConstructionDate

August1990

Structure/No.ofStories

SteelͲframeandreinforcedconcretestructurewithflatroof,9storieswith2level
basement

RenovationDate—

MizuhoTrust&BankingCo.,Ltd.
From:November17,2006Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms
9,445.32sqm LeaseArea
100.0% GOP(permonth)141rooms
9,445.32sqm
JPY101,270thousand

MGHMasterLeaseCo.,Ltd.(Note1)
Fixedrent,variablerent,pluspassͲthroughrenttype
From:July17,2014Until:July16,2024
Fixedrent(JPY94millionperannum(January–December:JPY7.88millionpermonth))plusvariablerentbasedonGOPofhoteloperationbyVistaHotelManagementCo.,Ltd.andthepassͲthroughrentthetenantreceivesfromthesubͲtenant.
(Note3)Notdisclosed,asoperator'sconsenthasnotbeenobtainedfordisclosure.
JPY74,12ϯthousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

10.7% ShortͲtermRepairCosts(within1year)
JPY2,226,600thousand LongͲtermRepairCosts(in12years)

April2014
JPY100thousand
JPY495,224thousandAbusinesshotellocated5ͲminutewalkingdistancefromJRKitashinchiStation,10ͲminutewalkingdistancefromJROsakaStationandMidosujiLineUmedaSubwayStation,
and4ͲminutewalkingdistancefromYostubashiLineNishiͲUmedaSubwayStation,ithasconvenientaccesstocompaniesinthebusinessareaaswellasleisurefacilitiesinthe
northofOsaka.TherestaurantprovidesaJapaneseͲstylebreakfastusingcarefullyselectedingredients,anddiversifiedtenantssuchas24Hconveniencestores,abar,
restaurants,etc.locatedinthesamebuildingprovideconvenience,andontopoftravelersonbusinesstrips,thehotelisexpectedtoaccommodatestabledemand
throughouttheyearfromleisuretravelers.

SpecialInstructions
ThePropertyisasubͲleasedproperty,andthepermissionofthelandownerwillberequiredatthetimeofthetransferoftheleaseholdrightsofthebuildingaccompanyingthetransferofthebuilding.Further,thelandowner’spermissionwillfirstberequiredforfuturetransfersoftheleaseholdrights,evenforthetransferofatrustbeneficiaryinterest.
TheProperty’slandincludesapart(approx.185sqm)ontheeastͲfacingandsouthͲfacingroadͲsideapedestrianpath,etc.whichisprovidedforcommonuse.
(Note1)
MGHMasterLeaseCo.,Ltd.madealumpsumpaymenttoleasethepropertyfromthebuildingowner,MizuhoTrust&BankingCo.,Ltd.,andhasenteredintoamanagement
agreementwithVistaHotelManagementCo.,Ltd.forpartof3Fthrough9F,whilesublettingB2throughapartof3FtosubͲtenants.
(Note2)
ThemanagementservicesfeeisacommissionfeepayabletoVistaHotelManagementCo.,Ltd.inaccordancewiththeprovisionsofthemanagementagreementasa
compensationforhotelmanagementservicesprovidedbyVistaHotelManagementCo.,Ltd.undertheagreement.
(Note3)
VariablerentistheamountofVistaHotelManagementCo.,Ltd.’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroor
negative,variablerentiszero.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

16

D7

: HotelMyStaysNagoyaͲSakae

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
TrustBeneficialInterest
Dateof(Planned)Acquisition
7/17/2014(Planned)PurchasePrice
JPY2,958million
AppraisalValue
JPY3,000million
AppraisalAgency
JapanRealEstateInstitute
LocationTransport
Land(LotNumber)

2Ͳ2307Ͳ1,Higashisakura,NakaͲku,Nagoya,Aichi(and3lots)(Address)

2Ͳ23Ͳ22,Higashisakura,NakaͲku,Nagoya,Aichi

7minsfromwalkSubwayMeijou/HigashiyamaLines,SakaeStation
FormofPossession

Leasehold/Ownership

LotAreaFormofPossession
Building

1,142.41sqm
Ownership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/800%

PurposeofUse

Hotel/Shop

9,064.71sqm ConstructionDate

November1979

Structure/No.ofStories

SteelͲframeandreinforcedconcretestructurewithflatroof,16storieswithbasement

RenovationDate

AprilͲJune2013

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract
Term

SumitomoMitsuiTrustBank,Limited
From:June30,2005Until:July16,2024

YugenKaishaNagoya HotelManagement(Note1)
Fixedrentplusvariablerenttype
From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY133millionperannum(January–June:JPY10.95millionpermonth/July–December:JPY11.35millionper
month))plusvariablerentbasedonGOPofhoteloperationbyFlexstayHotelManagementCo.,Ltd.(Note3)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney

JPY10,59ϰthousand㼅㼑㼟
1 NumberofGuestRooms
9,064.71sqm LeaseArea
100.0% GOP(permonth)270rooms
9,064.71sqm
JPY20,930thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleasetermunlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

7.5% ShortͲtermRepairCosts(within1year)
JPY1,918,900thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY365,580thousandAbusinesshotellocated7ͲminutewalkingdistancefromMeijoLineandHigashiyamaLineSubwayStation.Further,SakaeisthelargestdowntownareasinNagoyacityandisa
greatlocationforbothbusinessandleisure,located6ͲminutesfromNagoyaStationandapproximately50ͲminutetrainridefromChubuCentrairInternationalAirport.Asfor
restaurants,thehotel’smorningbuffetserving40dishes(localfood,EasternandWestern)ofNagoya’slocalspecialtiesiswellreceived,andontopoftravelersonbusinesstrips,
thehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelers.

SpecialInstructions
ThePropertyisaleasedproperty,andthepermissionofthelandownerwillberequiredatthetimeofthetransferoftheleaseholdrightsofthebuildingaccompanyingthetransferofthebuilding.Confirmationofboundarymarkersforapartoftheleastlandisunclear.
ThePropertyisalreadynotincompliancewiththedistancerestrictionsforthebuildingwalltotheroadandthelocationoftheparkinglotentranceandexit,etc.asitexistson
mainstreet/OtsuroadcitysceneformationzonesetforthintheNagoyacitysceneyplan.
(Note1)
YugenKaishaNagoyaHotelManagementmadealumpsumpaymenttoleasethepropertyfromthebuildingowner,MizuhoTrust&BankingCo.,Ltd.,andhasenteredintoa
servicesagreementwithFlexstayHotelManagementCo.,Ltd.andhassubcontractedtheoperations.
(Note2)
ThemanagementservicesfeeisacommissionfeepayabletoFlexstayHotelManagementCo.,Ltd.inaccordancewiththeprovisionsofthehotelmanagementservicesagreementasacompensationformanagementservicesprovidedbyFlexstayHotelManagementCo.,Ltd.undertheagreement.
(Note3)
VariablerentistheamountofFlexstayHotelManagementCo.,Ltd.’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroor
negative,variablerentiszero.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

17

D8

: HotelMyStaysSakaisujiͲHonmachi

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
TrustBeneficialInterest
Dateof(Planned)Acquisition
7/17/2014(Planned)PurchasePrice
JPY2,514million
AppraisalValue
JPY2,530million
AppraisalAgency
JapanRealEstateInstitute
LocationTransport
Land(LotNumber)

1Ͳ13Ͳ1,AwajiͲmachi,ChuoͲku,OsakaͲshi,Osaka(and1lot)(Address)1Ͳ4Ͳ8,AwajiͲmachi,ChuoͲku,OsakaͲshi,Osaka

7minswalkfromSubwaySakaisuji/ChuoLines,SakaisujiͲHonmachiStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

736.23sqm
Ownership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/600%

PurposeofUse

Hotel

4,188.83sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,11stories

RenovationDate—

July2008

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract
Term

SumitomoMitsuiTrustBank,Limited
From:September5,2008Until:July16,2024

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype
From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY88millionperannum(January–June:JPY7.34millionpermonth/July–December:JPY7.39millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney

JPY63ϱthousand㼅㼑㼟
1 NumberofGuestRooms
4,188.83sqm LeaseArea
100.0% GOP(permonth)190rooms
4,188.83sqm
JPY16,926thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

14.4% ShortͲtermRepairCosts(within1year)
JPY813,600thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY104,437thousand

Thispropertyisabusinesshotellocated7ͲminutewalkingdistancebetweenSakaisujiͲHonmachiSubwayStationandKitahamaSubwayStation,bothontheSakaisujiand
ChuoLines,12ͲminutewalkingdistancefromMidosujiLineHonmachiSubwayStationandYodoyabashiSubwayStation,and9ͲminutewalkingdistancefromKeihanMainLineKitahamaStation.Suitablelocationforbusinessandleisurewithgoodaccess:FromHonmachiStation,12minutetrainridetoShinͲOsakaStation,ashinkansenstop,andabout1hourtoKansaiInternationalAirportviaNankaiExpress.ItsneighborhoodentailsDoshuͲmachiwithpharmaceuticalcompaniesandthefinancialdistrict
Kitahama,andHonmachi,abusinessdistrictwithmanytradingcompanies.ThelocationisalsoclosetopopulartouristattractionssuchasOsakaCastlePark,Tsutenkaku,
Dotonbori,KaiyuukanAquariumandUniversalStudioJapan.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedto
accommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
TheProperty’slandincludesaroadregresspart(thepartconsideredaroadunderArticle42(1)(v)oftheBuildingStandardsAct)(approx.38sqm).

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)aggregate
grossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagementservice
providedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

18

D9

: HotelMyStaysYokohama

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
TrustBeneficialInterest
Dateof(Planned)Acquisition
7/17/2014(Planned)PurchasePrice
JPY2,119million
AppraisalValue
JPY2,150million
AppraisalAgency
JapanRealEstateInstitute
LocationTransport
Land(LotNumber)

4Ͳ79Ͳ1,SueyoshiͲcho,NakaͲku,YokohamaͲshi,Kanagawa(and3lots)(Address)

4Ͳ81,SueyoshiͲcho,NakaͲku,YokohamaͲshi,Kanagawa

1minwalkfromKeihinKyuko,KoganechoStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContractTerm

845.77sqm
Ownership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/400%

PurposeofUse

JapaneseInn

7,379.43sqm ConstructionDate

October1974

Structure/No.ofStories

SteelͲframeandreinforcedconcretestructurewithflatroof,12storieswith2level
basement

RenovationDate

JuneͲSeptember2006

MizuhoTrust&BankingCo.,Ltd.
From:August30,2013Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms
7,379.43sqm LeaseArea
100.0% GOP(permonth)190rooms
7,379.43sqm
JPY15,255thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype
From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY83millionperannum(January–June:JPY6.87millionpermonth/July–December:JPY6.99millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
None
OtherSpecialMatters
OverviewofBuildingConditionsSurveyReport

RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

12.3% ShortͲtermRepairCosts(within1year)
JPY1,612,600thousand LongͲtermRepairCosts(in12years)

April2014
͸JPY297,318thousand

Thispropertyisabusinesshotellocated1ͲminutewalkingdistancefromKeihinKyukoLineKoganechoStationand3ͲminutewalkingdistancefromtheBlueLine,Bandobashi
SubwayStation.Thelocationofferseasyaccesstovariouslocations:6ͲminutetoYokohamaStationviaKeihinKyuko,4ͲminutetoKannaiStationviaSubwayand20Ͳminute
toShinͲYokohamaStation,aShinkansenstop.RelativelyclosetotouristattractionssuchasYokohamaMinatoMirai21,YamashitaPark,YokohamaChinaTown,with
superiorconvenientaccessviapublictransportation.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromdomesticandinboundleisuretravelergroupsaswellastravelersonbusinesstripswithitsdiversifiedroomtypes.

SpecialInstructions
ThePropertyisalreadynotincompliancewithregardtothepointofthefloorspaceandparkinglotplacementobligationsasanapplicationforaconstructionpermitwas
madepriortothelimitbeingsetforthefloorspaceindexandparkinglotplacementobligationsthereisnow.

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)aggregate
grossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagementservice
providedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

19

D10

: HotelMyStaysNipporiTypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
TrustBeneficialInterest
Dateof(Planned)Acquisition
7/17/2014(Planned)PurchasePrice
JPY1,898million
AppraisalValue
JPY1,910million
AppraisalAgency
JapanRealEstateInstitute
LocationTransport
Land(LotNumber)

5Ͳ43Ͳ2,HigashiͲNippori,ArakawaͲku,Tokyo(and1lot)(Address)

5Ͳ43Ͳ7,HigashiͲNippori,ArakawaͲku,Tokyo

5minswalkfromJRYamanote/KeihinTohoku/Joban/KeiseiElectricRailwayLines,NipporiStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

254.09sqm
Ownership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/700%

PurposeofUse

Hotel

1,719.29sqm ConstructionDate

April1987

Structure/No.ofStories

SteelͲframeandreinforcedconcretestructurewithflatroof,10stories

RenovationDate

FebruaryͲMarch2011

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract
Term

SumitomoMitsuiTrustBank,Limited
From:December19,2002Until:July16,2024

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype
From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY60millionperannum(January–June:JPY5.05millionpermonth/July–December:JPY4.95millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—㼅㼑㼟
1 NumberofGuestRooms
1,719.29sqm LeaseArea
100.0% GOP(permonth)

93rooms
1,719.29sqm
JPY11,497thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
None
OtherSpecialMatters
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

7.2% ShortͲtermRepairCosts(within1year)
JPY443,800thousand LongͲtermRepairCosts(in12years)

April2014
͸JPY77,940thousand

Thispropertyisabusinesshotellocated5ͲminutewalkingdistancesfromJRLines,theKeiseiElectricRailwayLine,andNippori/ToneriLineratNipporiStation.WithJRUeno
Stationwithinwalkingdistance,thelocationofferseasyaccesstomajorplacesinTokyoissuitableforbothbusinessandleisure.Roomsareconfiguredtofulfilltheneedsof
shortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
ThePropertyisalreadynotincompliancewithregardtothepointofparkinglotplacementobligationsasitwasconstructedbeforetherevisionoftheTokyoParkingLot
Regulations.

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)aggregate
grossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagementservice
providedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

20

D11

: HotelMyStaysFukuokaͲTenjinͲMinami

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY1,570million
JPY1,580million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)3Ͳ9Ͳ25,Haruyoshi,ChuoͲku,FukuokaͲshi,Fukuoka(and6lots)(Address)

3Ͳ14Ͳ20,Haruyoshi,ChuoͲku,FukuokaͲshi,Fukuoka

5minswalkfromSubwayNanakumaLine,TenjinͲMinamiStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

899.15sqm
Ownership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/400%

PurposeofUse

Hotel3,412.71sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,8stories

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea

From:March19,2008Until:July16,2024

February2008

㼅㼑㼟
1 NumberofGuestRooms
3,412.71sqm LeaseArea
100.0% GOP(permonth)177rooms
3,412.71sqm

OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

JPY6,971thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY57millionperannum(January–June:JPY4.76millionpermonth/July–December:JPY4.81millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

6.6% ShortͲtermRepairCosts(within1year)
JPY748,300thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY113,794thousand

Thispropertyisabusinesshotellocated5ͲminutewalkingdistancefromSubwayNanakumaLineTenjinͲMinamiStation,7ͲminutewalkingdistancefromNishitetsuTenjin
OmutaLineNishitetsuFukuokaStation,and9ͲminutewalkingdistancefromSubwayKuukouLineNakasuͲKawabataandTenjinStations.Thelocationissuitableforboth
businessandleisurewith5ͲminuteaccesstoHakataStationbysubwayand9ͲminutewalkingdistancetoFukuokaAirport.Closetopopulartouristattractionssuchas
CanalCityHakata,Yafuoku!Dome,AcrosFukuoka,MarineMesseFukuoka,DazaifuTenmanguandtheFukuoka’sbusinesshub,Tenjiniswithinwalkingdistance.Rooms
areconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

21

D12

: FlexstayInnIidabashi

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY1,381million
JPY1,390million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

104Ͳ1,ShinͲOgawaͲcho,ShinjukuͲku,Tokyo(and5lots)(Address)

3Ͳ26,ShinͲOgawaͲcho,ShinjukuͲku,Tokyo

8minswalkfromJRChuoͲSobuLine,IidabashiStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

898.62sqm
Ownership

TotalFloorArea

QuasiͲIndustrialDistrict

BuildingCoverageRatio/FloorAreaRatio

60%/300%

PurposeofUse

Hotel,Shop

2,953.38sqm ConstructionDate

December1990

Structure/No.ofStories

Reinforcedconcretestructurewithslateroof,7storieswithbasement

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:November26,2003Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning2,953.38sqm LeaseArea
100.0% GOP(permonth)59rooms
2,953.38sqm
JPY8,603thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY53millionperannum(January–June:JPY4.45millionpermonth/July–December:JPY4.46millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney

JPY2,250thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

14.0% ShortͲtermRepairCosts(within1year)
JPY736,400thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY164,364thousand

Thispropertyisabusinesshotellocated8minutewalkingdistancefromJRLines,TokyoMetroYurakuchoLine,andToeiOedoLineIidabashiStation.Further,itoffers
convenientaccesstoShinjuku,KorakuenandTokyoDomeandisagoodlocationforallkindsofendssuchasbusiness,tourism,etc.andisalsosuitablefordiningand
shoppingwithpopulartouristsite,Kagurazaka,nearby.Thesurroundingneighborhoodisabusinesstown,andisabletoaddressthevariousneedsofguestsfromaoneͲ
nightstayoralongͲtermtripwithconveniencestoresandvariousshopsinwalkingdistance.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,
andthehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

22

D13

: HotelMyStaysUenoInarichoTypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY1,331million
JPY1,340million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

1Ͳ68Ͳ2,Matsugaya,TaitoͲku,Tokyo(Address)1Ͳ5Ͳ7,Matsugaya,TaitoͲku,Tokyo

4minswalkfromTokyoMetroGinzaLine,InarichoStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

294.35sqm
Ownership

TotalFloorArea

CommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/600%80%/500%

PurposeofUse

Hotel

1,150.76sqm ConstructionDate

December1986

Structure/No.ofStories

Steelreinforcedconcrete/Reinforcedconcretestructurewithflatroof,9storieswith
basement

RenovationDate

NovemberͲDecember2012

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:December19,2002Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning1,150.76sqm LeaseArea
100.0% GOP(permonth)72rooms
1,150.76sqm
JPY5,822thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY42millionperannum(January–June:JPY3.60millionpermonth/July–December:JPY3.52millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

7.4% ShortͲtermRepairCosts(within1year)
JPY334,700thousand LongͲtermRepairCosts(in12years)

April2014
͸JPY60,701thousand

Thispropertyisabusinesshotellocated4ͲminutewalkingdistancefromTokyoMetroGinzaLineInarichoStation.UenoStationiswithinwalkingdistanceandthelocation
suitableforbothbusinessandleisureneedswithgoodaccesstomajorplacesinTokyo.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,and
thehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
TheProperty’slandincludesaprivateroadpartandsetͲbackpart(thepartconsideredaroadunderArticle42(2)oftheBuildingStandardsAct)(approx.78sqm).

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

23

D14

: FlexstayInnShinagawa

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY1,242million
JPY1,250million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

1Ͳ16Ͳ15,Kitashinagawa,ShinagawaͲku,Tokyo(and1lot)(Address)

1Ͳ22Ͳ19,Kitashinagawa,ShinagawaͲku,Tokyo

1minwalkfromKeihinKyukoLine,KitashinagawaStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

441.71sqm
Ownership

TotalFloorArea

NeighborhoodCommercial
District,Category1Residential
District

BuildingCoverageRatio/FloorAreaRatio

80%/400%60%/300%

PurposeofUse

Hotel1,134.52sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithroofing,4stories

RenovationDate

NovemberͲDecember2011

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:December19,2002Until:July16,2024

October1986

㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning

1,134.52sqm LeaseArea
100.0% GOP(permonth)55rooms
1,134.52sqm
JPY7,756thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY39millionperannum(January–June:JPY3.31millionpermonth/July–December:JPY3.29millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

17.6% ShortͲtermRepairCosts(within1year)
JPY272,600thousand LongͲtermRepairCosts(in12years)

April2014
͸JPY50,523thousand

Thispropertyisabusinesshotellocated1ͲminutewalkingdistancefromKeihinKyukoLineKitashinagawaStationand10ͲminutewalkingdistancefromJRShinagawa
Station.ShinagawaStationoffersexcellentaccesstoplacesinTokyoasamajortransportationhubconnectingJRLinessuchasTokaidoLine,YamanoteLine,KeihinͲTohokuLineandYokosukaLineandKeihinKyukoLine.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

24

D15

: FlexstayInnTokiwadai

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
TrustBeneficialInterest
Dateof(Planned)Acquisition
7/17/2014(Planned)PurchasePrice
JPY1,242million
AppraisalValue
JPY1,250million
AppraisalAgency
JapanRealEstateInstitute
LocationTransport(LotNumber)

1Ͳ52Ͳ3,Tokiwadai,ItabashiͲku,Tokyo(and1lot)(Address)

1Ͳ52Ͳ5,Tokiwadai,ItabashiͲku,Tokyo

5minswalkfromTobuTojoLine,TokiwadaiStation

FormofPossession

Ownership

ZoningNeighborhoodCommercial
District,Category1MediumͲtoͲHighͲRiseExclusiveResidential
District

BuildingCoverageRatio/FloorAreaRatio

80%/300%60%/200%

PurposeofUse

Hotel

Land
LotAreaFormofPossession
Building

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContractTerm

1,200.61sqm
Ownership

TotalFloorArea

2,539.75sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,6stories

RenovationDate

March2013

December1989

SumitomoMitsuiTrustBank,Limited
From:November26,2003Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms
2,539.75sqm LeaseArea
100.0% GOP(permonth)129rooms
2,539.75sqm
JPY10,404thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype
From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY48millionperannum(January–June:JPY4.09millionpermonth/July–December:JPY㸲millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleasetermunless
RenewalUponExpirationanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
None
OtherSpecialMatters
OverviewofBuildingConditionsSurveyReportCompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

13.9% ShortͲtermRepairCosts(within1year)
JPY651,300thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY146,895thousand

Thispropertyisabusinesshotellocated5ͲminutewalkingdistancefromTobuTojoLineTokiwadaiStation.Accommodatesgoodaccesswith10ͲminutetrainridetoIkebukuro
Station,15minutestoShinjukuStationand25minutestoShibuyaStation.WithshoppingfacilitieslikeTokiwadaiGinza,TobuStoreandothersinthevicinityandpublic
facilities,medicalfacilities,andfinancialinstitutionswithinwalkingdistance,itprovidesapleasantenvironmentforcityliving,andtheresidentialtownisaquiettownwith
manytrees,modeledafterDenͲenͲchofu.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestable
demandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
ThePropertymayhavematterswhichdonotconformandarenotincompliancewiththe“ItabashiͲkuEnvironmentRoute7RoadsideZoningPlan”asworkwasstartedpriorto
thedecisiondate.
ThePropertyisalreadynotincompliancewithregardtothepointofparkinglotplacementobligationsasitwasconstructedbeforetherevisionoftheTokyoParkingLot
Regulations.
(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)aggregate
grossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,variablerentis
zero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagementservice
providedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

25

D16

: FlexstayInnSugamoTypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY1,192million
JPY1,200million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

3Ͳ1109Ͳ10,Sugamo,ToshimaͲku,Tokyo(and18lots)(Address)3Ͳ6Ͳ16,Sugamo,ToshimaͲku,TokyoϲminswalkfromJRYamanoteLine/ToeiMitaLine,SugamoStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

683.47sqm
Ownership

TotalFloorArea

NeighborhoodCommercial
District,Category1Residential
District

BuildingCoverageRatio/FloorAreaRatio

80%/400%
60%/400%

PurposeofUse

Hotel2,089.86sqm ConstructionDate

January1992

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,7storieswithbasement

RenovationDate

March2013

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:November26,2003Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning2,089.86sqm LeaseArea
100.0% GOP(permonth)104rooms
2,089.86sqm
JPY10,179thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY45millionperannum(January–June:JPY3.83millionpermonth/July–December:JPY3.67millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

9.3% ShortͲtermRepairCosts(within1year)
JPY532,200thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY133,197thousand

Thispropertyisabusinesshotellocated6ͲminutewalkingdistancefromJRYamanoteLine/ToeiMitaLineSugamoStation.Accommodatesgoodaccesswith5Ͳminute
trainridetoIkebukuroStationand12minutestoToeiMitaLineOtemachiStation.Locatedclosetoafamousshoppingstreetwithmorethan180shopsandKouganji,a
templefamousforTogenukior“thornremoval”JizoͲsonis3minutewalkawayandfromTogenukiJizoͲsonandSomeireiren,aparkfamouslyknownforcherryblossomis1
minutewalkfromtheJizoͲson.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestabledemand
throughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
TheProperty’slandincludesaprivateroadpartandsetͲbackpart(thepartconsideredaroadunderArticle42(2)oftheBuildingStandardsAct)(approx.65.69sqm).
ThePropertyisalreadynotincompliancewithregardtothepointofparkinglotplacementobligationsasitwasconstructedbeforetherevisionoftheTokyoParkingLot
Regulations.

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

26

D17

: HotelMyStaysOtemaeTypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY1,192million
JPY1,200million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

1Ͳ21,TokuiͲcho,ChuoͲku,OsakaͲshi,Osaka(Address)1Ͳ3Ͳ2,TokuiͲcho,ChuoͲku,OsakaͲshi,Osaka

4minswalkfromOsakaMunicipalSubwayTanimachi/ChuoLines,Tanimachi4ͲchomeStation
FormofPossession

Ownership(RightofSite
Holdings,approx.96.70%)

LotAreaFormofPossession
Building

Trustee
TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)667.83sqm
UnitOwnership

TotalFloorArea

ZoningCommercialDistrict

BuildingCoverageRatio/FloorAreaRatio

80%/800%

PurposeofUse

ResidentialComplex/Shop/Parking,Residence

4,956.66sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,11stories

RenovationDate

December2012ͲJanuary2013

December1986

SumitomoMitsuiTrustBank,Limited
From:November26,2003Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms

FlexstayHotelManagementCo.,Ltd.

TypeofContract
Term

Fixedrentplusvariablerenttype
From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY48millionperannum(January–December:JPY3.31millionpermonth/July–December:JPY4.69millionpermonth))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney

JPY1,500thousand

RenewalUponExpiration
RentRevision

4,956.66sqm LeaseArea
100.0% GOP(permonth)110rooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
Tenant

4,956.66sqm
JPY9,890thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
Rentcannotberevisedduringtheleaseterm.

EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReportCompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

13.7% ShortͲtermRepairCosts(within1year)
JPY899,900thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY109,344thousand

Thispropertyisabusinesshotellocated4ͲminswalkfromOsakaMunicipalSubwayTanimachiLine/ChuoLine,Tanimachi4ͲchomeStation.Locatedabout7Ͳminutetrain
ridetoHigashiUmedaStation,about15ͲminutetrainridetoNambaStationandabout25ͲminutetrainridetoUniversalStudioandKaiyukanAquarium,thehotelis
suitablefordiversifiedendsentailingbusiness,shopping,leisure,etc.Thehotelisinaquietandgoodlivingenvironmentsurroundedbyofficebuildingsandrental
apartmentbuildings.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthehotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
ThePropertyisaunitownershipbuildingorlandofwhichtherearetwoexclusivepartsofonebuilding.

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

27

D18

: FlexstayInnKiyosumiShirakawa

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY749million
JPY754million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

1Ͳ12Ͳ4,Tokiwa,KotoͲku,Tokyo(and13lots)(Address)

1Ͳ12Ͳ16,Tokiwa,KotoͲku,Tokyo

5minswalkfromToeiOedoLine/TokyoMetroHanzomonLine,KiyosumiͲShirakawaStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

870.77sqm
Ownership

TotalFloorArea

QuasiͲIndustrialDistrict

BuildingCoverageRatio/FloorAreaRatio

60%/300%

PurposeofUse

Hotel,ParkingLot

2,673.64sqm ConstructionDate

May1992

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,6storieswithbasement

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:November26,2003Until:July16,2024㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning2,673.64sqm LeaseArea
100.0% GOP(permonth)55rooms
2,673.64sqm
JPY5,760thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY32millionperannum(January–June:JPY2.72millionpermonth/July–December:JPY2.71millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney

JPY1,890thousand

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

10.3% ShortͲtermRepairCosts(within1year)
JPY652,100thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY156,954thousand

Thispropertyisabusinesshotellocated5ͲminswalkfromToeiOedoLine/TokyoMetroHanzomonLine,KiyosumiͲShirakawaStation,6minsͲwalkfromToeiOedoLine/Toei
ShinjukuLine,MorishitaStation.Thelocationprovidesconvenientaccess:6ͲminuetrainridetoOtemachiStation,8ͲminutetrainridetoShiodomeStationand21Ͳminute
trainridetoShibuyaStation,andissuitablelocatedforleisurewithTokyoDisneylandbeing40Ͳminutedriveaway.Withshoppingstreetsandsupermarketsarewithinwalkingdistance,thelocationissuitableforlongstayguestsbuyingdailynecessities.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthe
hotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

28

D19

: FlexstayInnNakanobuP1

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY589million
JPY593million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

4Ͳ1422Ͳ5,Futaba,ShinagawaͲku,Tokyo(and1lot)(Address)

4Ͳ27Ͳ12,Futaba,ShinagawaͲku,Tokyo

5minswalkfromTokyuOimachiLine/ToeiAsakusaLine,NakanobuStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

395.33sqm
Ownership

TotalFloorArea

QuasiͲIndustrialDistrict

BuildingCoverageRatio/FloorAreaRatio

60%/200%

PurposeofUse

ResidentialComplex

770.56sqm ConstructionDate

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,5stories

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)From:November26,2003Until:July16,2024

September1986

㼅㼑㼟
1 NumberofGuestRooms

LeasableArea
OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning770.56sqm LeaseArea
100.0% GOP(permonth)

39rooms
770.56sqm
JPY3,809thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY17millionperannum(January–June:JPY1.47millionpermonth/July–December:JPY1.48millionper
month))plusvariablerentbasedonGOPofhoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

14.9% ShortͲtermRepairCosts(within1year)
JPY198,000thousand LongͲtermRepairCosts(in12years)

May2014
͸
JPY40,257thousand

Thispropertyisabusinesshotelconvenientlylocated5ͲminswalkfromTokyuOimachiLine/ToeiAsakusaLine,NakanobuStation;8ͲminswalkfromJRYokosukaLine,NishiͲ
OiStation.Easyaccessbackedby11ͲminutetrainridefromNakanobuStationtoJRShibuyaStationviaJRGotandaStation,13ͲminutetrainridefromJRNishiͲOiStationtoTokyoStationand16ͲminutetrainridefromJRNishiͲOiStationtoYokohamaStation.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthe
hotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
ThePropertyhasaroadbetweenitandtheadjacentlandontheeastsidewhichmaybeusedbythoseusingtheadjacentproperty.

(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

29

D20

: FlexstayInnNakanobuP2

TypeandLocationofSpecifiedAssets,etc.
TypeofSpecifiedAssets
Dateof(Planned)Acquisition

TrustBeneficialInterest
7/17/2014(Planned)PurchasePriceAppraisalValue

JPY283million
JPY285million

AppraisalAgency

JapanRealEstateInstitute

LocationTransport
Land(LotNumber)

4Ͳ1422Ͳ6,Futaba,ShinagawaͲku,Tokyo(and2lots)(Address)

4Ͳ27Ͳ8,Futaba,ShinagawaͲku,Tokyo

5minswalkfromTokyuOimachiLine/ToeiAsakusaLine,NakanobuStation
FormofPossession

Ownership

LotAreaFormofPossession
Building

213.sqm
Ownership

TotalFloorArea

QuasiͲIndustrialDistrict

BuildingCoverageRatio/FloorAreaRatio

60%/200%

PurposeofUse

Office391.49sqm ConstructionDate

March1989

Structure/No.ofStories

Reinforcedconcretestructurewithflatroof,3storieswithbasement

RenovationDate—

Trustee

SumitomoMitsuiTrustBank,Limited

TrustPeriod
CreationofSecurityInterest
LeaseOverview(April30,2014)
TotalNo.ofTenant(s)LeasableArea

From:November26,2003Until:July16,2024

OccupancyRate
OverviewofLeaseAgreement
TenantTypeofContract

Zoning㼅㼑㼟
1 NumberofGuestRooms
391.49sqm LeaseArea
100.0% GOP(permonth)

22rooms
391.49sqm
JPY2,014thousand

FlexstayHotelManagementCo.,Ltd.
Fixedrentplusvariablerenttype

Term

From:July17,2014Until:July16,2024

Determinationofrentoflease
contract

Fixedrent(JPY9millionperannum(January–December:JPY0.82millionpermonth))plusvariablerentbasedonGOPof
hoteloperationbytenant.(Note1)

Managementservicesfee(Note2)Notdisclosed,astenant'sconsenthasnotbeenobtainedfordisclosure.

SecurityDeposit/GuaranteeMoney—

ThecontractisaFixedTermBuildingLease,thereforethecontractwillterminateattheexpirationoftheleaseterm
unlessanewcontractisexecuted.
RentRevision
Rentcannotberevisedduringtheleaseterm.
EarlyTermination
Terminationpriortotheexpirationoftheleasetermisnotpermitted.
OtherSpecialMatters
None
OverviewofBuildingConditionsSurveyReport
RenewalUponExpiration

CompanyConductingSurvey
ProbableMaximumLoss(PML)
ReplacementPriceAreaCharacteristic

TokioMarine&NichidoRiskConsultingCo.,Ltd.

DateofReport

15.5% ShortͲtermRepairCosts(within1year)
JPY120,700thousand LongͲtermRepairCosts(in12years)

April2014
͸
JPY33,344thousand

Thispropertyisabusinesshotelconvenientlylocated5minswalkfromTokyuOimachiLine/ToeiAsakusaLine,NakanobuStation;8ͲminswalkfromJRYokosukaLine,NishiͲ
OiStation.Easyaccessbackedby11ͲminutetrainridefromNakanobuStationtoJRShibuyaStationviaJRGotandaStation,13ͲminutetrainridefromJRNishiͲOiStationtoTokyoStationand16ͲminutetrainridefromJRNishiͲOiStationtoYokohamaStation.Roomsareconfiguredtofulfilltheneedsofshortandmid/longͲstayguests,andthe
hotelisexpectedtoaccommodatestabledemandthroughouttheyearfromleisuretravelersaswellastravelersonbusinesstrips.

SpecialInstructions
None(Note1)
Variablerentistheamountofthetenant’saggregatemonthlygrossrevenueduringthethreeͲmonthvariablerentcalculationperiodafterdeductingthesumof(i)
aggregategrossreimbursements,(ii)managementservicesfeeand(iii)fixedrentduringthesameperiod.However,whenthebalanceafterdeductioniszeroornegative,
variablerentiszero.
(Note2)
Themanagementservicesfeeisacommissionfeepayabletothetenantinaccordancewiththeprovisionsoftheleasingcontractasacompensationformanagement
serviceprovidedbythetenantundertheagreement.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

30

(2)

Matters relating to Seismic Resistance etc. for the Eighteen Properties
INV has obtained an opinion from a third party expert, Tokio Marine & Nichido Risk Consulting Co., Ltd.,
indicating that, with respect to the buildings of the Eighteen Properties, there is no suspicion offalsification of structural calculation sheets through willful misconduct of the designers, and that thestructural design is judged to be in general conformance with provisions regarding seismic resistanceunder the Building Standards Act and its Enforcement Order. Further, as part of INV’s due diligence(Note) in acquiring the properties, INV has investigated seismic risk.
(Note) The due diligence conducted includes examination of appraisal values, building inspection,
seismic risk inspection and legal due diligence.

4.

Overview of Sellers
An overview of sellers for the Eighteen Properties are as follows.

“D3 Hotel MyStays Kyoto-Shijo”, “D11 Hotel MyStays Fukuoka-Tenjin-Minami”
(i)

Name

Shijodori Holding Tokutei Mokuteki Kaisha (“Shijodori TMK”)(ii)

Location

1-12-32, Akasaka, Minato-ku, Tokyo(iii)

Title and name ofrepresentative officer(iv)

Business

Yoshiaki Uno, Director
(a)

(b)
(v)

(vi)
(vii)

Capital(as of the date of thisnotice)Date of establishment

Operations relating to the assignment of specified assets Asset
Liquidation Plan under the Act on Securitization of Assets, andthe management and disposition thereof.
All other operations ancillary to the operations relating toliquidation of specified assets

Specified Capital: JPY 279 million
Preferred Capital: JPY 1,710 million
August 1, 2006

Relationship between INV/Asset Manager and the TMK
While there are no capital relationships that should be noted between
INV/CIM and the TMK, the TMK has received contributions throughfunds managed by affiliates of Fortress Investment Group LLC (“FIG”),
Capital relationships
an affiliate of Calliope Godo Kaisha (“Calliope”). As of the end of
December 2013, Calliope holds 609,942 investment units issued by
INV (38.77% stake). Further, as of the date of this notice, Calliope is theparent company of CIM, holding 100% of its outstanding shares.
While there are no capital relationships that should be noted between
INV/CIM and the TMK, as of the date of this notice, among the officers
and employees of CIM, representative director and president Naoki
Personal relationships
Fukuda is seconded from Calliope.
Further, part-time director
Christopher Reed was seconded from Fortress Real Estate Asia Godo
Kaisha, a subsidiary of FIG.
In the term ended December 2013, there was no transactional
relationships that should be noted between INV/CIM and the TMK.
Transactional
Further there are no transactional relationships that should be noted
relationships
between the related persons or affiliates of INV/CIM and the TMK or its
related persons or affiliates.
Whether the TMK is a
The TMK is not a related party of INV or CIM. Further, related persons

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

31related party

and affiliates of the TMK are not related parties of INV or CIM.
Furthermore, the TMK is not an interested party, etc. of CIM as provided
in the Investment Trust Act.

“D4 MyStays Shin-Urayasu Conference Center”, “D5 Hotel MyStays Maihama”, “D7 Hotel MyStays
Nagoya-Sakae,” “D9 Hotel MyStays Yokohama”
(i)
(ii)
(iii)

Name
Location
Title and name ofrepresentative officer

Zephyrus Tokutei Mokuteki Kaisha (“Zephyrus TMK”)
c/o EP Consulting Services Corporation, 1-2-9, Nishi-shimbashi,
Minato-ku, Tokyo
Hiroyasu Nakamura, Director(iv)

Business(a) Operations relating to liquidation of specified assets(b) All other operations ancillary to the operations relating to liquidationof specified assets(v)

Capital(as of the date of thisnotice)Date of establishment

Specified Capital: JPY100,000

(vi)
(vii)

Preferred Capital JPY3,884,290,000
March 1, 2011

Relationship between INV/Asset Manager and the TMK
While there are no capital relationships that should be noted between
INV/CIM and the TMK, the TMK has received contributions throughfunds managed by affiliates of Fortress Investment Group LLC (“FIG”),
Capital relationships
an affiliate of Calliope Godo Kaisha (“Calliope”). As of the end of
December 2013, Calliope holds 609,942 investment units issued by
INV (38.77% stake). Further, as of the date of this notice, Calliope is
the parent company of CIM, holding 100% of its outstanding shares.
While there are no capital relationships that should be noted between
INV/CIM and the TMK, as of the date of this notice, among the officers
and employees of CIM, representative director and president Naoki
Personal relationships
Fukuda is seconded from Calliope.
Further, part-time director
Christopher Reed was seconded from Fortress Real Estate Asia Godo
Kaisha, a subsidiary of FIG.
Transactional
INV acquired Hotel MyStays Kanda from the TMK as of May 23, 2014.
relationships
The TMK is not a related party of INV or CIM. Further, related persons
Whether the TMK is a
and affiliates of the TMK are not related parties of INV or CIM. The
TMK is not an interested party, etc. of CIM as provided in therelated party
Investment Trust Act.

“D6 Hotel Vista Premio Dojima”
(i)
(ii)
(iii)

Name
Location
Title and name ofrepresentative officer(iv)

Business

Danube Tokutei Mokuteki Kaisha (“Danube TMK”)
c/o EP Consulting Services Corporation, 1-2-9, Nishi-shimbashi,
Minato-ku, Tokyo
Masayuki Meguro, Director(a) Operations relating to liquidation of specified assets(b) All other operations ancillary to the operations relating to liquidationof specified assets

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

32

(v)

(vi)
(vii)

Capital(as of the date of thisnotice)Date of establishment

Specified Capital: JPY100,000
Preferred Capital JPY1,050 million
December 1, 2011

Relationship between INV/Asset Manager and the TMK
While there are no capital relationships that should be noted between
INV/CIM and the TMK, the TMK has received contributions throughfunds managed by affiliates of Fortress Investment Group LLC (“FIG”),
Capital relationships
an affiliate of Calliope Godo Kaisha (“Calliope”). As of the end of
December 2013, Calliope holds 609,942 investment units issued by
INV (38.77% stake). Further, as of the date of this notice, Calliope is
the parent company of CIM, holding 100% of its outstanding shares.
While there are no capital relationships that should be noted between
INV/CIM and the TMK, as of the date of this notice, among the officers
and employees of CIM, representative director and president Naoki
Personal relationships
Fukuda is seconded from Calliope.
Further, part-time director
Christopher Reed was seconded from Fortress Real Estate Asia Godo
Kaisha, a subsidiary of FIG.
In the term ended December 2013, there was no transactional
relationships that should be noted between INV/CIM and the TMK.
Transactional
Further there are no transactional relationships that should be noted
relationships
between the related persons or affiliates of INV/CIM and the TMK or its
related persons or affiliates.
The TMK is not a related party of INV or CIM. Further, related persons
Whether the TMK is a
and affiliates of the TMK are not related parties of INV or CIM. The
TMK is not an interested party, etc. of CIM as provided in therelated party
Investment Trust Act.

“D8 Hotel MyStays Sakaisuji-Honmachi”
(i)

Name

Nagahoribashi Holding Tokutei Mokuteki Kaisha (“Nagahoribashi TMK”)(ii)

Location

1-12-32, Akasaka, Minato-ku, Tokyo"(iii)

Title and name ofrepresentative officer

Yoshiaki Uno, Director(iv)

Business(a) Operations relating to the assignment of specified assets Asset
Liquidation Plan under the Act on Securitization of Assets, and the
management and disposition thereof.
(b) All other operations ancillary to the operations relating to liquidationof specified assets.

(v)

Capital(as of the date of thisnotice)Date of establishment

Specified Capital: JPY82 million

(vi)
(vii)

Preferred Capital: JPY738 million
October 17, 2006

Relationship between INV/Asset Manager and the TMK
While there are no capital relationships that should be noted between
INV/CIM and the TMK, the TMK has received contributions throughfunds managed by affiliates of Fortress Investment Group LLC (“FIG”),
Capital relationships
an affiliate of Calliope Godo Kaisha (“Calliope”). As of the end of
December 2013, Calliope holds 609,942 investment units issued by
INV (38.77% stake). Further, as of the date of this notice, Calliope is
the parent company of CIM, holding 100% of its outstanding shares.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

33Personal relationships

Transactional
relationships

Whether the TMK is arelated party

While there are no capital relationships that should be noted between
INV/CIM and the TMK, as of the date of this notice, among the officers
and employees of CIM, representative director and president Naoki
Fukuda is seconded from Calliope.
Further, part-time director
Christopher Reed was seconded from Fortress Real Estate Asia Godo
Kaisha, a subsidiary of FIG.
In the term ended December 2013, there was no transactional
relationships that should be noted between INV/CIM and the TMK.
Further there are no transactional relationships that should be noted
between the related persons or affiliates of INV/CIM and the TMK or its
related persons or affiliates.
The TMK is not a related party of INV or CIM. Further, related persons
and affiliates of the TMK are not related parties of INV or CIM. The
TMK is not an interested party, etc. of CIM as provided in theInvestment Trust Act.

"D10 Hotel MyStays Nippori”, “D13 Hotel MyStays Ueno Inaricho”, “D14 Flexstay Inn Shinagawa”
(i)
(ii)
(iii)

Name
Location
Title and name ofrepresentative officer(iv)

Business

Nishi Tokutei Mokuteki Kaisha (“Nishi TMK”)
c/o EP Consulting Services Corporation, 1-2-9, Nishi-shimbashi,
Minato-ku, Tokyo
Hideaki Otani, Director
(a)

(b)
(v)

(vi)
(vii)

Capital(as of the date of thisnotice)Date of establishment

Operations relating to the assignment of specified assets Asset
Liquidation Plan under the Act on Securitization of Assets, and the
management and disposition thereof.
All other operations ancillary to the operations relating toliquidation of specified assets

Specified Capital: JPY100,000
Preferred Capital JPY2,965 million
June 3, 2010

Relationship between INV/Asset Manager and the TMK
While there are no capital relationships that should be noted between
INV/CIM and the TMK, the TMK has received contributions throughfunds managed by affiliates of Fortress Investment Group LLC (“FIG”),
Capital relationships
an affiliate of Calliope Godo Kaisha (“Calliope”). As of the end of
December 2013, Calliope holds 609,942 investment units issued by
INV (38.77% stake). Further, as of the date of this notice, Calliope is
the parent company of CIM, holding 100% of its outstanding shares.
While there are no capital relationships that should be noted between
INV/CIM and the TMK, as of the date of this notice, among the officers
and employees of CIM, representative director and president Naoki
Personal relationships
Fukuda is seconded from Calliope.
Further, part-time director
Christopher Reed was seconded from Fortress Real Estate Asia Godo
Kaisha, a subsidiary of FIG.
Transactional
relationships

INV acquired Hotel MyStays Asakusa from the TMK as of May 23,
2014.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

34

Whether the TMK is arelated party

The TMK is not a related party of INV or CIM. Further, related persons
and affiliates of the TMK are not related parties of INV or CIM. The
TMK is not an interested party, etc. of CIM as provided in theInvestment Trust Act.

“D12 Flexstay Inn Iidabashi”, “D15 Flexstay Inn Tokiwadai”, “D16 Flexstay Inn Sugamo”, “D17 Hotel
MyStays Otemae”, “D18Flexstay Inn Kiyosumi Shirakawa”, “D19Flexstay Inn Nakanobu P1”, “D20Flexstay Inn Nakanobu P2”
(i)

Name

(ii)
(iii)

Location
Title and name ofrepresentative officer

c/o EP Consulting Services Corporation, 1-2-9, Nishi-shimbashi,
Minato-ku, Tokyo
Shigeru Nakamura, Director(iv)

Business(a) Operations relating to liquidation of specified assets(b) All other operations ancillary to the operations relating to liquidationof specified assets(v)

Capital(as of the date of thisnotice)Date of establishment

Specified Capital: JPY100,000

(vi)
(vii)

5.

Aki Tokutei Mokuteki Kaisha (“Aki TMK”)

Preferred Capital JPY2,900 million
January 17, 2011

Relationship between INV/Asset Manager and the TMK
While there are no capital relationships that should be noted between
INV/CIM and the TMK, the TMK has received contributions throughfunds managed by affiliates of Fortress Investment Group LLC (“FIG”),
Capital relationships
an affiliate of Calliope Godo Kaisha (“Calliope”). As of the end of
December 2013, Calliope holds 609,942 investment units issued by
INV (38.77% stake). Further, as of the date of this notice, Calliope is
the parent company of CIM, holding 100% of its outstanding shares.
While there are no capital relationships that should be noted between
INV/CIM and the TMK, as of the date of this notice, among the officers
and employees of CIM, representative director and president Naoki
Personal relationships
Fukuda is seconded from Calliope.
Further, part-time director
Christopher Reed was seconded from Fortress Real Estate Asia Godo
Kaisha, a subsidiary of FIG.
In the term ended December 2013, there was no transactional
relationships that should be noted between INV/CIM and theTransactional
TMK.Further there are no transactional relationships that should be
relationships
noted between the related persons or affiliates of INV/CIM and the TMKor its related persons or affiliates.
The TMK is not a related party of INV or CIM. Further, related persons
Whether the TMK is a
and affiliates of the TMK are not related parties of INV or CIM. The
TMK is not an interested party, etc. of CIM as provided in therelated party
Investment Trust Act.

Transactions with Interested Persons etc.
The sellers of the Eighteen Properties, namely Shijodori TMK, Zephyrus TMK, Danube TMK,
Nagahoribashi TMK, Nishi TMK and Aki TMK, are not sponsor-related persons under the voluntary rules
specified by CIM as countermeasures against conflicts of interests in the management of INV’s

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

35

investments.

However, such sellers have received contributions through funds etc. managed byaffiliates of FIG, an affiliate of Calliope (please note that Calliope is CIM’s parent company, and thus asponsor-related person).

Therefore, CIM treats Shijodori TMK, Zephyrus TMK, Danube TMK,

Nagahoribashi TMK, Nishi TMK and Aki TMK as persons equivalent to sponsor-related persons.
The Eighteen Properties are to be acquired at prices not exceeding their appraisal value in accordancewith Sponsor-Related Person Transaction Rules and Sponsor-Related Person Transaction Management
Manual, which are internal rules of CIM, and after deliberation and resolution of the compliancecommittee meeting held on June 23, 2014 and the investment committee meeting held on the same day,the board of directors of CIM approved the acquisitions at the meeting held on June 23, 2014, and theboard of directors of INV approved the acquisitions at the meeting held on June 23, 2014.
In addition, each of FHM, the tenant/operator of 16 properties (i.e., all properties except Hotel Vista
Premio Dojima and Hotel MyStays Nagoya-Sakae) and the operator of Hotel MyStays Nagoya-Sakae,
MGH, the tenant of Hotel Vista Premio Dojima, and Nagoya HM, the tenant of Hotel MyStays
Nagoya-Sakae, is not a sponsor-related person (Note) under the voluntary rules specified by CIM as
countermeasures against conflicts of interests in the management of INV’s investments. However, eachtenant receives indirect contributions from funds managed by affiliates of FIG, an affiliate of Calliope(Calliope is CIM’s parent company, and thus a sponsor-related person). Therefore, CIM treats each of
FHM, MGH and Nagoya HM as a person equivalent to a sponsor-related person.
With respect to the lease agreement expected to be entered into with FHM, in accordance withSponsor-Related Person Transaction Rules and Sponsor-Related Person Transaction Management
Manual, which are internal rules of CIM, subject to FHM’s hotel operating capability being confirmed as
sufficient through a third party report and other relevant information, the rent level of each of the Eighteen
Properties being reasonable considering the market level, and management services fee amount andstructure being fair compared with similar properties, following deliberation and resolution of thecompliance committee meeting held on June 23, 2014 and the investment committee meeting held on
the same day, the board of directors of CIM approved the agreement at a meeting held on June 23, 2014,
and the board of directors of INV approved the agreement at the meeting held on June 23, 2014.
With respect to the lease agreement expected to be entered into with MGH and Nagoya HM, inaccordance with Sponsor-Related Person Transaction Rules and Sponsor-Related Person Transaction
Management Manual, which are internal rules of CIM, subject to (i) sponsor-related persons not being
given priority over non sponsor-related persons unless there is a justifiable reason and (ii) the rent levelof each of the applicable properties being reasonable considering the market level, following deliberation
and resolution of the compliance committee meeting held on June 23, 2014 and the investmentcommittee meeting held on the same day, the board of directors of CIM approved the agreement at a
meeting held on June 23, 2014, and the board of directors of INV approved the agreement at the meeting
held on June 23, 2014.
Hence, INV considers FHM, MGH and Nagoya HM, respectively, to meet its standard for selection oftenants.
(Note) A sponsor-related Person is (i) any person who falls under the “Interested Persons, etc.” set forth in the Investment Trust Act
and the Enforcement Order of the Investment Trust Act, (ii) all shareholders of CIM and (iii) special purpose companies(tokubetsu mokuteki kaisha) (a) which delegate their management to persons who fall under (ii) above, or (b) which areThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

36invested by or invested in anonymous partnership (tokumei kumiai) by persons who fall under (ii) above.

6. Summary of Current and Previous Owners.
1. Name; 2. Relationship with persons having special conflict of interests relationships; 3. Detail/reason
for acquisition; 4. Acquisition price, and 5. Acquisition timing
Property Name

Current owner/trust

Preceding owner/trust

Owners/trust

beneficiary

beneficiary

beneficiaries
preceding those to
the left

D3
Hotel MyStays
Kyoto-Shijo

D4
MyStays Shin Urayasu
Conference Center

D5
Hotel MyStays
Maihama

Persons having no
1. Shijodori TMK
special conflict of
2. The TMK has received
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. August 2008
Persons having no
1. Zephyrus TMK
special conflict of
2. The TMK has received
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. September 2011
1. Arno GK
1. Zephyrus TMK
2. The GK has
2. The TMK has received
received
contributions throughcontributions
funds, etc. managed bythrough funds, etc.
affiliates of FIG, an affiliate
managed byof Calliope.
affiliates of FIG, an
3. Acquisition for investment
affiliate of Calliope.
purposes
4. Omitted because held for3. Acquisition for
longer than one year
investment
5. May 2012
purposes
4. Omitted because
held for longer than
one year
5. February 2012－－

Persons having no
special conflict ofinterests relationshipThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

37

Property Name

Current owner/trust

Preceding owner/trust

Owners/trust

beneficiary

beneficiary

beneficiaries
preceding those to
the left

D6
Hotel Vista Premio
DojimaD7
Hotel MyStays
Nagoya-Sakae

D8
Hotel MyStays
Sakaisuji-Honmachi

D9
Hotel MyStays
Yokohama

Persons having no
1. Danube TMK
special conflict of
2. The TMK has received
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. February 2012
Persons having no
1. Zephyrus TMK
special conflict of
2. The TMK has received
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. February 2013
Persons having no
1. Nagahoribashi TMK
special conflict of
2. The TMK has received
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. June 2010
1. Bandobashi TMK
1. Zephyrus TMK
2. The TMK has
2. The TMK has received
received
contributions throughcontributions
funds, etc. managed bythrough funds, etc.
affiliates of FIG, an affiliate
managed byof Calliope.
affiliates of FIG, an
3. Acquisition for investment
affiliate of Calliope.
purposes
4. Omitted because held for3. Acquisition for
longer than one year (Noteinvestment1)
purposes
5. August 2013
4. Omitted because
held for longer than
one year
5. February 2006
(Note 2)－－－

Persons having no
special conflict ofinterests relationshipThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

38

Property Name

Current owner/trust

Preceding owner/trust

Owners/trust

beneficiary

beneficiary

beneficiaries
preceding those to
the left

D10
Hotel MyStays Nippori

1. Nishi TMK
2. The TMK has received
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. December 2010D11
1. Shijodori TMK
Hotel MyStays
2. The TMK has received
Fukuoka-Tenjin-Minami
contributions throughfunds, etc. managed byaffiliates of FIG, anaffiliate of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. August 2008
D12
1. Aki TMK
Flexstay Inn Iidabashi 2. The TMK has received
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011
D13
1. Nishi TMK
Hotel MyStays Ueno
2. The TMK has received
Inaricho
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. December 2010

Persons having no
special conflict ofinterests relationship－

Persons having no
special conflict ofinterests relationship－

Persons having no
special conflict ofinterests relationship－

Persons having no
special conflict ofinterests relationship－This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

39

Property Name

Current owner/trust

Preceding owner/trust

Owners/trust

beneficiary

beneficiary

beneficiaries
preceding those to
the left

D14
1. Nishi TMK
Flexstay Inn Shinagawa 2. The TMK has received
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. December 2010
D15
1. Aki TMK
Flexstay Inn Tokiwadai 2. The TMK has received
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011
D16
1. Aki TMK
Flexstay Inn Sugamo
2. The TMK has received
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011
D17
1. Aki TMK
Hotel MyStays Otemae 2. The TMK has received
contributions throughfunds, etc. managed byaffiliates of FIG, an affiliate
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011

Persons having no
special conflict ofinterests relationship－

Persons having no
special conflict ofinterests relationship－

Persons having no
special conflict ofinterests relationship－

Persons having no
special conflict ofinterests relationship－This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

40

Property Name

Current owner/trust

Preceding owner/trust

Owners/trust

beneficiary

beneficiary

beneficiaries
preceding those to

the left
Persons having no
1. Aki TMK
special conflict of
2. The TMK has received
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate－
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011
D19
Persons having no
1. Aki TMK
Flexstay Inn Nakanobu 2. The TMK has received
special conflict of
P1
interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate－
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011
D20
Persons having no
1. Aki TMK
Flexstay Inn Nakanobu 2. The TMK has received
special conflict of
P2interests relationshipcontributions throughfunds, etc. managed byaffiliates of FIG, an affiliate－
of Calliope.
3. Acquisition for investment
purposes
4. Omitted because held for
longer than one year
5. July 2011
(Note 1) The previous owner, Bandobashi TMK, as well as the current owner, Zephyrus TMK has received
D18
Flexstay Inn Kiyosumi
Shirakawa

contributions through funds managed by affiliates of FIG, an affiliate of Calliope Godo Kaisha.
This property was transferred from Bandobashi TMK to Zephyrus TMK for refinancing purposes,
but has been continuously owned by FIG through funds it manages and therefore the period ofownership by the previous owner is included.
(Note 2) FIG, through funds managed by its affiliates, made contributions to Bandobashi TMK, theprevious owner, in June 2012. Accordingly, during the period from February 2006 to June 2012
(prior to the contributions), Bandobashi TMK had no special conflict of interests relationship.
7.

Overview of Brokerage
Not applicable.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

41

8. Schedules
Acquisition decision date:June 23, 2014

Agreement execution date:
Anticipated acquisition proceeds payment date
Anticipated acquisition date
(Note)

July 17, 2014
(Note)

The anticipated acquisition date is July 17, 2014 at the earliest. However, if the payment date for
the Offering is changed to a date after July 16, 2014, then the acquisition date is expected to also
be changed to a date immediately following such payment date, and in the latest case would be
July 22, 2014. Furthermore, based on the purchase and sale agreement with the seller of theassets anticipated to be acquired, the acquisition date can be changed to a date up to July 22,2014 by providing a three business day prior notice.

9. Future Outlook
For information on INV’s forecasts for financial results and distribution for the fiscal period ending June2014 (January 1, 2014 to June 30, 2014) and for the fiscal period ending December 2014 (July 1, 2014 toDecember 31, 2014) in connection with the above, please refer to “Notice concerning Revision of
Forecast of Financial Results and Distribution for the 22nd Fiscal Period Ending June 2014 andconcerning Forecast of Financial Results and Distribution for the 23rd Fiscal Period Ending December
2014” dated as of today.

10. Other Matters that are Necessary for Investors to Properly Understand and Make Judgment on Relevant
Information
For risks relating to investments in hotel properties, please refer to the “Investment Risks” (toshi risuku) inthe semi-annual securities report (yuka shoken hokokusho) of INV for the fiscal period ended December
2013 (July 1, 2013 – December 31, 2013) (available in Japanese only), filed on March 26, 2014, as wellas “Section Two: Supplemental Information, 8. Investment Risks” in the securities registration statement(yuka shoken todokedesho) of INV filed today (available in Japanese only).

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

42[References]1.

Status of Income and Expenses and Summary of Real Estate Appraisal of the Eighteen Properties<Explanation relating to details of the status of income and expenses andreal estate appraisal of the Eighteen Properties>a.

“Income and Expenditures, Etc.” column:

・ Based on the information provided from the sellers for each operating period from January 1,
2012 to December 31, 2013. This is not a guarantee of future income and expenditures.
・ Amounts are rounded down to the nearest 1,000 yen.

Therefore, the figures may notnecessarily match the total value when added together. Unless otherwise specifically noted,
the amounts do not include consumption tax, etc.
・ “Taxes and Public Dues,” which include property tax and city planning tax, are generally
imposed on the owner as of January 1 of each year. For property tax and city planning tax
that were borne by the current owner or previous owner at the time of INV’s acquisition of theassets, the estimated amount is included in the acquisition price, and is therefore not included
in “Taxes and Public Dues.”
・ “Non-life Insurance Premiums” is the total amount of paid insurance premiums distributed
proportionally over the relevant period.
・ “NOI” (Net Operating Income) lists the actual figures as provided by the seller (following theadjustments for the trust fees, administration fees and insurance premiums when held by INV).
・ “Room Income” includes room use fees and lease fees.
・ “Other Income” includes items such as parking lot use fees, laundry fees, vending machinetransaction fees, etc. which does not fall under “Room Income”.
・ “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period(excluding service fees) divided by the total number of sold rooms for the same period.
・ “RevPar”, or Revenues Per Available Room, is calculated by dividing the total sales for acertain period by the aggregate number of rooms for the same period (rooms x number ofdays), and is the same figure as that of a product of room occupancy rate and ADR.
・ “Room Occupancy Rate” is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate
number of rooms during the relevant period x number of business days during target period)・ “GOP Ratio” is calculated using the following formula:
GOP ratio = GOP ÷ sales figure
・ “Daily / Weekly / Monthly” is the ratio for each classification of length of stay (i.e.,
daily/weekly/monthly), and is calculated by dividing total room sales for the relevant
classification during each operational period by the aggregate room sales for the same
operational period and then multiplying the figure by 100. Daily, weekly and monthly areclassified by the number of days of stays, with daily being 1-6 nights, weekly being 7-29 nights,
and monthly being 30 or more nights.
b.

“Summary of Real Estate Appraisal Report” column:
INV has requested real estate appraisal from Japan Real Estate Institute for the plannedThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

43acquisition assets based on the matters for consideration in a real estate appraisal under theInvestment Trust Act, the Act on Real Estate Appraisal (Act No. 152 of 1963, as amended; the“Act on Real Estate Appraisal”) and the real estate appraisal standards.
An appraisal value of a property is merely an opinion of the real estate appraiser regarding thevalue of the appraised property at the time the appraisal was conducted in accordance with the
Act on Real Estate Appraisal and real estate appraisal standards.
A real estate appraisal is neither a guarantee nor a promise that an asset can be sold orpurchased at such appraisal value either now or in the future.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, andno warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original
Japanese-language notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

44

D3

:

HotelMyStaysKyotoͲShijo

1/1/2012–12/31/2012
JPY352,405thousand

1/1/2013–12/31/2013
JPY352,417thousand—
JPY22,729thousand
JPY460thousand
JPY1,000thousand
JPY328,215thousand
JPY635,191thousand
JPY599,210thousand
JPY35,980thousand
JPY282,785thousand—
JPY21,967thousand
JPY460thousand
JPY1,000thousand
JPY328,988thousand
JPY658,387thousand
JPY632,714thousand
JPY25,672thousand
JPY305,969thousand

JPY9,283
JPY7,309
78.7%
55.5%

JPY9,040
JPY7,739
85.6%
53.5%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

98.3%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

1.5%/

0.2%

98.0%/1.7%/

JapanRealEstateInstituteJPY6,110million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY406,368thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY406,368thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY406,368thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY3,168thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY22,271thousand(n)NonͲlifeInsurancePremiums

JPY1,773thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY27,212thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY379,156thousand(p)OneͲTimeInvestmentGains(6.7%)—(q)CapitalImprovementsandExpenses

JPY7,392thousand
JPY14thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY357,045thousand(VI)CapitalizationYield

5.8%
JPY6,160,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.2%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY2,604,417thousand(a)SalePrice(43.0%)

JPY6,080,797thousand(b)SaleCosts

JPY182,424thousand
JPY5,898,373thousand(c)ReturningPrice[(a)Ͳ(b)]JPY3,452,908thousand(II)ReturningPrice,CurrentValue(57.0%)

5.5%(III)DiscountRate(IV)FinalCapitalizationYield

5.9%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY6,060,000thousand
JPY6,110,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY1,120,000thousand(47.6%)(ii)BuildingPrice

JPY1,220,000thousand(51.8%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY15,100thousand(0.6%)

JPY2,355,100thousand(100.0%)170%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY4,000,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

45

0.4%

D4

:

MyStaysShinͲUrayasuConferenceCenter

1/1/2012–12/31/2012
JPY253,874thousand

1/1/2013–12/31/2013
JPY322,874thousand—
JPY16,549thousand
JPY414thousand
JPY1,000thousand
JPY235,911thousand
JPY502,568thousand
JPY405,844thousand
JPY96,724thousand
JPY248,693thousand—
JPY16,829thousand
JPY414thousand
JPY1,000thousand
JPY304,630thousand
JPY599,172thousand
JPY510,565thousand
JPY88,606thousand
JPY276,297thousand

JPY8,870
JPY6,336
71.4%
50.5%

JPY9,663
JPY7,993
82.7%
53.9%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

95.4%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

4.6%/—%

97.4%/2.6%/

JapanRealEstateInstituteJPY4,980million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY346,201thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY346,201thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY346,201thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY4,915thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY16,576thousand(n)NonͲlifeInsurancePremiums

JPY601thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY22,092thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY324,109thousand(p)OneͲTimeInvestmentGains(6.4%)—(q)CapitalImprovementsandExpenses

JPY11,469thousand
JPY15,822thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY296,818thousand(VI)CapitalizationYield

5.9%
JPY5,030,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.4%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY2,199,337thousand(a)SalePrice(44.7%)

JPY4,888,279thousand(b)SaleCosts

JPY146,648thousand
JPY4,741,631thousand(c)ReturningPrice[(a)Ͳ(b)]JPY2,723,593thousand(II)ReturningPrice,CurrentValue(55.3%)

5.7%(III)DiscountRate(IV)FinalCapitalizationYield

6.1%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY4,920,000thousand
JPY4,980,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice(ii)BuildingPrice(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY676,000thousand(36.8%)

JPY1,120,000thousand(61.1%)

JPY38,500thousand(2.1%)

JPY1,834,500thousand(100.0%)150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY2,750,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

46

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D5

:

HotelMyStaysMaihama

1/1/2012–12/31/2012
JPY216,976thousand

1/1/2013–12/31/2013
JPY285,553thousand—
JPY6,967thousand
JPY203thousand
JPY1,000thousand
JPY208,806thousand
JPY398,310thousand
JPY378,459thousand
JPY19,850thousand
JPY181,333thousand—
JPY6,477thousand
JPY203thousand
JPY1,000thousand
JPY277,873thousand
JPY485,805thousand
JPY467,186thousand
JPY18,619thousand
JPY200,251thousand

JPY13,481
JPY11,489
85.2%
54.5%

JPY15,634
JPY14,222
91.0%
58.8%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

99.9%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

0.1%/—%

99.9%/0.1%/

JapanRealEstateInstituteJPY4,920million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY310,415thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY310,415thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY310,415thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY3,166thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY6,030thousand(n)NonͲlifeInsurancePremiums

JPY205thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY9,401thousand(IV)NetOperatingIncome=[(II)Ͳ(III)](3.0%)

JPY301,014thousand(p)OneͲTimeInvestmentGains—(q)CapitalImprovementsandExpenses

JPY7,388thousand
JPY9,300thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY284,326thousand(VI)CapitalizationYield

5.7%
JPY4,990,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.0%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY2,104,432thousand(a)SalePrice(43.4%)

JPY4,824,881thousand(b)SaleCosts

JPY144,746thousand
JPY4,680,135thousand(c)ReturningPrice[(a)Ͳ(b)]JPY2,739,751thousand(II)ReturningPrice,CurrentValue(56.6%)

5.5%(III)DiscountRate(IV)FinalCapitalizationYield

5.9%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY4,840,000thousand
JPY4,920,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY661,000thousand(54.2%)(ii)BuildingPrice

JPY553,000thousand(45.4%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY4,700thousand(0.4%)

JPY1,218,700thousand(100.0%)150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY1,830,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

47

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D6

:

HotelVistaPremioDojima

1/1/2012–12/31/2012
JPY229,442thousand:Wzϭϲ͕ϰϭϲƚŚŽƵƐĂŶĚ

1/1/2013–12/31/2013
JPY286,298thousand
JPY16,ϰϭϲƚŚŽƵƐĂŶĚ

JPY24,530thousand
JPY571thousand
JPY1,000thousand
JPY186,9Ϯ4thousand
JPY482,811thousand
JPY377,825thousand
JPY104,985thousand
JPY253,368thousand

JPY26,423thousand
JPY571thousand
JPY1,000thousand
JPY241,887thousand
JPY553,785thousand
JPY411,046thousand
JPY142,738thousand
JPY267,487thousand

JPY8,588
JPY7,321
85.2%
47.5%

JPY9,120
JPY7,987
87.6%
51.7%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a. LandLeaseFees
b. TaxesandPublicDuesc. NonͲlifeInsurancePremiumsd. TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly
)

—%/

—%/

—%

—%/

—%/

(Note)Asseparatedatafornightsstayeddoesnotexist,Daily,Weekly,andMonthlyarenotlisted.

SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

JapanRealEstateInstituteJPY3,900million
AsofApril30,2014

1. ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY320,991thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome

JPY1,948thousand(c)UtilityIncomeJPY23,600thousand(d)ParkingLotIncome

JPY7,560thousand
JPY3,000thousand(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY357,099thousand
JPY8,526thousand(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY348,573thousand(h)MaintenanceandManagementCosts

JPY2,200thousand(i)UtilityCosts

JPY23,800thousand(j)RepairCosts

JPY9,964thousand(k)PropertyManagementFee

JPY2,791thousand(l)TenantSolicitationExpenses

JPY1,172thousand(m)TaxesandPublicDues

JPY26,424thousand
JPY785thousand(n)NonͲlifeInsurancePremiums(o)OtherCosts

JPY16,416thousand(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY83,552thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY265,021thousand(p)OneͲTimeInvestmentGains

JPY1,537thousand(q)CapitalImprovementsandExpenses

JPY23,947thousand(24.0%)

JPY6,371thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY236,240thousand
6.0%(VI)CapitalizationYield

JPY3,940,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.7%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY1,737,094thousand(a)SalePrice(45.0%)

JPY3,844,194thousand(b)SaleCosts

JPY153,768thousand
JPY3,690,426thousand(c)ReturningPrice[(a)Ͳ(b)](II)ReturningPrice,CurrentValue

JPY2,119,781thousand(III)DiscountRate(55.0%)

5.7%(IV)FinalCapitalizationYield

6.2%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY3,860,000thousand
JPY3,900,000thousand

2. EstimatedPriceusingCostMethod
Value(i)LandPrice(ii)BuildingPrice(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)](v)MaketabilityCorrectionRatioforLandandBuildingasaWhole

JPY1,430,000thousand(64.1%)

JPY795,000thousand(35.6%)

JPY6,400thousand(0.3%)

JPY2,231,400thousand(100.0%)150%(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]JPY3,350,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

48

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D7

:

HotelMyStaysNagoyaͲSakae

1/1/2012–12/31/2012
JPY236,005thousand
JPY34,ϯϮϲƚŚŽƵƐĂŶĚ

1/1/2013–12/31/2013
JPY210,555thousand
JPY34,ϯϮϲƚŚŽƵƐĂŶĚ

JPY11,182thousand
JPY493thousand
JPY1,000thousand
JPY189,003thousand
JPY601,944thousand
JPY496,754thousand
JPY105,190thousand
JPY365,938thousand

JPY11,121thousand
JPY493thousand
JPY1,000thousand
JPY163,614thousand
JPY498,168thousand
JPY437,236thousand
JPY60,932thousand
JPY287,613thousand

JPY5,508
JPY5,027
91.3%
39.2%

JPY5,553
JPY4,437
79.9%
42.3%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a. LandLeaseFees
b. TaxesandPublicDuesc. NonͲlifeInsurancePremiumsd. TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly
)

—%/

—%/

—%

96.1%/3.2%/(Note)Asseparatedatafornightsstayeddoesnotexistfor2012,Daily,Weekly,andMonthlyarenotlisted.

SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

JapanRealEstateInstituteJPY3,000million
AsofApril30,2014

1. ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY290,220thousand(a)RoomRentalIncome—(b)CommonAreaMaintenanceFeeIncome(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY290,220thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY290,220thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY7,847thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY11,121thousand
JPY866thousand(n)NonͲlifeInsurancePremiums(o)OtherCosts

JPY34,326thousand(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY54,160thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY236,060thousand(18.7%)—(p)OneͲTimeInvestmentGains

JPY18,310thousand(q)CapitalImprovementsandExpenses

JPY16,065thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY201,685thousand
6.6%(VI)CapitalizationYield

JPY3,060,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](7.7%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY1,409,160thousand(a)SalePrice(48.0%)

JPY2,982,529thousand(b)SaleCosts

JPY149,126thousand
JPY2,833,403thousand(c)ReturningPrice[(a)Ͳ(b)](II)ReturningPrice,CurrentValue

JPY1,523,804thousand(III)DiscountRate(52.0%)

6.4%(IV)FinalCapitalizationYield

6.8%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY2,930,000thousand
JPY3,000,000thousand

2. EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY648,000thousand(57.8%)(ii)BuildingPrice

JPY398,000thousand(35.5%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY75,000thousand(6.7%)

JPY1,121,000thousand(100.0%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)](v)MaketabilityCorrectionRatioforLandandBuildingasaWhole

150%(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY1,680,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

49

0.7%

D8

:

HotelMyStaysSakaisujiͲHonmachi

1/1/2012–12/31/2012
JPY156,874thousand

1/1/2013–12/31/2013
JPY170,508thousand—
JPY14,079thousand
JPY221thousand
JPY1,000thousand
JPY141,572thousand
JPY315,087thousand
JPY301,863thousand
JPY13,224thousand
JPY158,213thousand—
JPY13,128thousand
JPY221thousand
JPY1,000thousand
JPY156,157thousand
JPY337,806thousand
JPY326,927thousand
JPY10,879thousand
JPY167,298thousand

JPY5,513
JPY4,341
78.7%
49.8%

JPY5,848
JPY4,714
80.6%
50.5%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

80.4%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

12.3%/7.3%

83.8%/11.0%/JapanRealEstateInstituteJPY2,530million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY178,368thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY178,368thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY178,368thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY2,611thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY12,800thousand(n)NonͲlifeInsurancePremiums

JPY1,175thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY16,586thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY161,782thousand(p)OneͲTimeInvestmentGains(9.3%)—(q)CapitalImprovementsandExpenses

JPY6,092thousand
JPY10,409thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY145,281thousand(VI)CapitalizationYield

5.7%
JPY2,550,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.3%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY1,092,122thousand(a)SalePrice(43.7%)

JPY2,481,136thousand(b)SaleCosts

JPY74,434thousand
JPY2,406,702thousand(c)ReturningPrice[(a)Ͳ(b)]JPY1,408,883thousand(II)ReturningPrice,CurrentValue(56.3%)

5.5%(III)DiscountRate(IV)FinalCapitalizationYield

5.9%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY2,500,000thousand
JPY2,530,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY560,000thousand(48.2%)(ii)BuildingPrice

JPY587,000thousand(50.5%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY15,300thousand(1.3%)

JPY1,162,300thousand(100.0%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY1,740,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

50

5.2%

D9

:

HotelMyStaysYokohama

1/1/2012–12/31/2012
JPY140,373thousand

1/1/2013–12/31/2013
JPY164,609thousand—
JPY14,096thousand
JPY404thousand
JPY1,000thousand
JPY124,872thousand
JPY341,302thousand
JPY319,655thousand
JPY21,646thousand
JPY200,929thousand—
JPY12,208thousand
JPY404thousand
JPY1,000thousand
JPY150,996thousand
JPY377,741thousand
JPY352,094thousand
JPY25,646thousand
JPY213,132thousand

JPY5,653
JPY4,597
81.3%
41.1%

JPY5,956
JPY5,077
85.2%
43.6%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

80.8%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

13.1%/6.1%

84.4%/10.2%/JapanRealEstateInstituteJPY2,150million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY187,514thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY187,514thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY187,514thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY7,433thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY12,336thousand(n)NonͲlifeInsurancePremiums

JPY3,187thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY22,956thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY164,558thousand(p)OneͲTimeInvestmentGains(12.2%)—(q)CapitalImprovementsandExpenses

JPY17,344thousand
JPY10,200thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY137,014thousand(VI)CapitalizationYield

6.3%
JPY2,170,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](7.6%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY990,501thousand(a)SalePrice(46.5%)

JPY2,125,308thousand(b)SaleCosts

JPY63,759thousand
JPY2,061,549thousand(c)ReturningPrice[(a)Ͳ(b)]JPY1,140,449thousand(II)ReturningPrice,CurrentValue(53.5%)

6.1%(III)DiscountRate(IV)FinalCapitalizationYield

6.5%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY2,130,000thousand
JPY2,150,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY489,000thousand(58.5%)(ii)BuildingPrice

JPY340,000thousand(40.6%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY7,420thousand(0.9%)

JPY836,420thousand(100.0%)150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY1,250,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

51

5.4%

D10

:

HotelMyStaysNippori

1/1/2012–12/31/2012
JPY87,206thousand

1/1/2013–12/31/2013
JPY103,593thousand—
JPY4,032thousand
JPY123thousand
JPY1,000thousand
JPY82,050thousand
JPY168,567thousand
JPY162,514thousand
JPY6,052thousand
JPY81,360thousand—
JPY3,736thousand
JPY123thousand
JPY1,000thousand
JPY98,733thousand
JPY188,195thousand
JPY182,063thousand
JPY6,132thousand
JPY84,602thousand

JPY5,438
JPY4,774
87.8%
51.7%

JPY5,912
JPY5,363
90.7%
55.0%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

66.0%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

17.3%/16.7%

67.5%/15.4%/JapanRealEstateInstituteJPY1,910million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY124,639thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY124,639thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY124,639thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY1,882thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY3,737thousand(n)NonͲlifeInsurancePremiums

JPY115thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY5,734thousand(IV)NetOperatingIncome=[(II)Ͳ(III)](4.6%)

JPY118,905thousand(p)OneͲTimeInvestmentGains—(q)CapitalImprovementsandExpenses

JPY4,530thousand
JPY4,403thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY109,972thousand(VI)CapitalizationYield

5.7%
JPY1,930,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.2%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY793,838thousand(a)SalePrice(42.2%)

JPY1,900,345thousand(b)SaleCosts

JPY57,010thousand
JPY1,843,335thousand(c)ReturningPrice[(a)Ͳ(b)]JPY1,089,411thousand(II)ReturningPrice,CurrentValue(57.8%)

5.4%(III)DiscountRate(IV)FinalCapitalizationYield

5.8%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,880,000thousand
JPY1,910,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY287,000thousand(71.3%)(ii)BuildingPrice

JPY112,000thousand(27.8%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY3,290thousand(0.8%)

JPY402,290thousand(100.0%)150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY603,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

52

17.0%

D11

:

HotelMyStaysFukuokaͲTenjinͲMinami

1/1/2012–12/31/2012
JPY115,616thousand

1/1/2013–12/31/2013
JPY119,868thousand—
JPY11,313thousand
JPY197thousand
JPY1,000thousand
JPY103,106thousand
JPY258,665thousand
JPY252,354thousand
JPY6,311thousand
JPY143,049thousand—
JPY10,359thousand
JPY197thousand
JPY1,000thousand
JPY108,311thousand
JPY264,195thousand
JPY258,709thousand
JPY5,486thousand
JPY144,326thousand

JPY4,845
JPY3,895
80.4%
44.7%

JPY5,065
JPY4,004
79.1%
45.4%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

78.4%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

12.9%/8.7%

77.9%/15.4%/JapanRealEstateInstituteJPY1,580million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY137,020thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY137,020thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY137,020thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY2,444thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY10,410thousand(n)NonͲlifeInsurancePremiums

JPY362thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY13,216thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY123,804thousand(p)OneͲTimeInvestmentGains(9.6%)—(q)CapitalImprovementsandExpenses

JPY7,039thousand
JPY12,039thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY104,726thousand(VI)CapitalizationYield

6.5%
JPY1,610,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](7.7%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY711,589thousand(a)SalePrice(46.2%)

JPY1,576,716thousand(b)SaleCosts

JPY47,301thousand
JPY1,529,415thousand(c)ReturningPrice[(a)Ͳ(b)]JPY830,166thousand(II)ReturningPrice,CurrentValue(53.8%)

6.3%(III)DiscountRate(IV)FinalCapitalizationYield

6.7%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,540,000thousand
JPY1,580,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY397,000thousand(41.7%)(ii)BuildingPrice

JPY538,000thousand(56.5%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY16,500thousand(1.7%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY951,500thousand(100.0%)130%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY1,240,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

53

6.7%

D12

:

FlexstayInnIidabashi

1/1/2012–12/31/2012
JPY81,525thousand

1/1/2013–12/31/2013
JPY85,945thousand—
JPY9,792thousand
JPY187thousand
JPY1,000thousand
JPY70,544thousand
JPY147,626thousand
JPY128,728thousand
JPY18,897thousand
JPY66,101thousand—
JPY9,141thousand
JPY187thousand
JPY1,000thousand
JPY75,615thousand
JPY155,406thousand
JPY137,584thousand
JPY17,821thousand
JPY69,461thousand

JPY7,027
JPY6,057
86.2%
55.2%

JPY7,280
JPY6,389
87.8%
55.3%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

54.7%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

22.5%/22.8%

66.9%/16.0%/JapanRealEstateInstituteJPY1,390million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY105,567thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY105,567thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY105,567thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY3,521thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY9,141thousand(n)NonͲlifeInsurancePremiums

JPY384thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY13,046thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY92,521thousand(p)OneͲTimeInvestmentGains(12.4%)—(q)CapitalImprovementsandExpenses

JPY8,216thousand
JPY2,741thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY81,564thousand(VI)CapitalizationYield

5.8%
JPY1,410,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.6%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY582,576thousand(a)SalePrice(42.4%)

JPY1,392,508thousand(b)SaleCosts

JPY41,775thousand
JPY1,350,733thousand(c)ReturningPrice[(a)Ͳ(b)]JPY790,719thousand(II)ReturningPrice,CurrentValue(57.6%)

5.5%(III)DiscountRate(IV)FinalCapitalizationYield

5.9%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,370,000thousand
JPY1,390,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY705,000thousand(72.2%)(ii)BuildingPrice

JPY269,000thousand(27.6%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY2,040thousand(0.2%)

JPY976,040thousand(100.0%)120%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY1,170,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

54

17.1%

D13

:

HotelMyStaysUenoInaricho

1/1/2012–12/31/2012
JPY51,671thousand

1/1/2013–12/31/2013
JPY69,782thousand—
JPY4,761thousand
JPY90thousand
JPY1,000thousand
JPY45,819thousand
JPY109,790thousand
JPY103,297thousand
JPY6,492thousand
JPY58,118thousand—
JPY3,151thousand
JPY90thousand
JPY1,000thousand
JPY65,539thousand
JPY141,335thousand
JPY137,370thousand
JPY3,965thousand
JPY71,553thousand

JPY4,676
JPY3,920
83.8%
47.1%

JPY5,797
JPY5,227
90.2%
49.4%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

61.9%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

15.6%/22.5%

74.8%/12.1%/JapanRealEstateInstituteJPY1,340million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY88,470thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY88,470thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY88,470thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY1,517thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY3,152thousand(n)NonͲlifeInsurancePremiums

JPY75thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY4,744thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY83,726thousand(p)OneͲTimeInvestmentGains(5.4%)—(q)CapitalImprovementsandExpenses

JPY3,541thousand
JPY4,230thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY75,955thousand(VI)CapitalizationYield

5.6%
JPY1,360,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.2%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY541,103thousand(a)SalePrice(41.2%)

JPY1,336,368thousand(b)SaleCosts

JPY40,091thousand
JPY1,296,277thousand(c)ReturningPrice[(a)Ͳ(b)]JPY773,359thousand(II)ReturningPrice,CurrentValue(58.8%)

5.3%(III)DiscountRate(IV)FinalCapitalizationYield

5.7%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,310,000thousand
JPY1,340,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY185,000thousand(63.6%)(ii)BuildingPrice

JPY104,000thousand(35.7%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY1,950thousand(0.7%)

JPY290,950thousand(100.0%)150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY436,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

55

13.1%

D14

:

FlexstayInnShinagawa

1/1/2012–12/31/2012
JPY49,970thousand

1/1/2013–12/31/2013
JPY70,408thousand—
JPY3,586thousand
JPY74thousand
JPY1,000thousand
JPY45,309thousand
JPY102,175thousand
JPY98,730thousand
JPY3,444thousand
JPY52,205thousand—
JPY3,350thousand
JPY74thousand
JPY1,000thousand
JPY65,983thousand
JPY127,246thousand
JPY124,295thousand
JPY2,950thousand
JPY56,837thousand

JPY5,708
JPY4,905
85.9%
48.9%

JPY6,648
JPY6,192
93.1%
55.3%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)e
ADRr
RevPARe
RoomOccupancyRatesnc
GOPRatioeDaily/Weekly/Monthly)

62.8%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

11.9%/25.3%

64.7%/9.3%/

JapanRealEstateInstituteJPY1,250million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY83,651thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY83,651thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY83,651thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY1,263thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY3,350thousand(n)NonͲlifeInsurancePremiums

JPY70thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY4,683thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY78,968thousand(p)OneͲTimeInvestmentGains(5.6%)—(q)CapitalImprovementsandExpenses

JPY2,947thousand
JPY2,674thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY73,347thousand(VI)CapitalizationYield

5.8%
JPY1,260,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.3%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY524,235thousand(a)SalePrice(42.6%)

JPY1,245,610thousand(b)SaleCosts

JPY37,368thousand
JPY1,208,242thousand(c)ReturningPrice[(a)Ͳ(b)]JPY707,305thousand(II)ReturningPrice,CurrentValue(57.4%)

5.5%(III)DiscountRate(IV)FinalCapitalizationYield

5.9%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,230,000thousand
JPY1,250,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY342,000thousand(80.1%)(ii)BuildingPrice

JPY83,400thousand(19.5%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY1,300thousand(0.3%)

JPY426,700thousand(100.0%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

130%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]JPY555,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

56

26.0%

D15

:

FlexstayInnTokiwadai

1/1/2012–12/31/2012
JPY84,636thousand

1/1/2013–12/31/2013
JPY83,690thousand—
JPY7,594thousand
JPY168thousand
JPY1,000thousand
JPY75,872thousand
JPY162,026thousand
JPY146,640thousand
JPY15,386thousand
JPY77,390thousand—
JPY7,022thousand
JPY168thousand
JPY1,000thousand
JPY75,499thousand
JPY167,938thousand
JPY153,922thousand
JPY14,016thousand
JPY84,248thousand

JPY3,651
JPY3,082
84.4%
52.2%
35.8%

JPY3,890
JPY3,269
84.0%
49.8%
31.8%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)
e
r
ADR
e
RevPARn
RoomOccupancyRatesc
GOPRatioeDaily/Weekly/Monthly)

27.6%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

36.6%/32.5%/35.7%/JapanRealEstateInstituteJPY1,250million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY104,904thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY104,904thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY104,904thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY3,151thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY7,022thousand(n)NonͲlifeInsurancePremiums

JPY2,167thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY12,340thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY92,564thousand(p)OneͲTimeInvestmentGains(11.8%)—(q)CapitalImprovementsandExpenses

JPY7,352thousand
JPY6,890thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY78,322thousand(VI)CapitalizationYield

6.2%
JPY1,260,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](7.3%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY545,474thousand(a)SalePrice(44.4%)

JPY1,249,063thousand(b)SaleCosts

JPY37,472thousand
JPY1,211,591thousand(c)ReturningPrice[(a)Ͳ(b)]JPY682,974thousand(II)ReturningPrice,CurrentValue(55.6%)

5.9%(III)DiscountRate(IV)FinalCapitalizationYield

6.3%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,230,000thousand
JPY1,250,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY480,000thousand(77.7%)(ii)BuildingPrice

JPY134,000thousand(21.7%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY3,650thousand(0.6%)

JPY617,650thousand(100.0%)130%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY803,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

57

D16

:

FlexstayInnSugamo

1/1/2012–12/31/2012
JPY74,404thousand

1/1/2013–12/31/2013
JPY74,911thousand—
JPY6,384thousand
JPY137thousand
JPY1,000thousand
JPY66,882thousand
JPY140,927thousand
JPY127,169thousand
JPY13,758thousand
JPY66,523thousand—
JPY5,901thousand
JPY137thousand
JPY1,000thousand
JPY67,872thousand
JPY145,066thousand
JPY132,475thousand
JPY12,591thousand
JPY70,155thousand

JPY3,668
JPY3,309
90.2%
52.8%
36.8%

JPY3,950
JPY3,490
88.3%
51.6%
39.9%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)
e
r
ADR
e
RevPARn
RoomOccupancyRatesc
GOPRatioeDaily/Weekly/Monthly)

35.1%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

28.1%/37.8%/22.3%/JapanRealEstateInstituteJPY1,200million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY92,622thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY92,622thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY92,622thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY2,687thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY5,902thousand(n)NonͲlifeInsurancePremiums

JPY1,787thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY10,376thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY82,246thousand(p)OneͲTimeInvestmentGains(11.2%)—(q)CapitalImprovementsandExpenses

JPY6,269thousand
JPY4,249thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY71,728thousand(VI)CapitalizationYield

5.9%
JPY1,220,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.7%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY506,302thousand(a)SalePrice(42.8%)

JPY1,202,233thousand(b)SaleCosts

JPY36,067thousand
JPY1,166,166thousand(c)ReturningPrice[(a)Ͳ(b)]JPY676,260thousand(II)ReturningPrice,CurrentValue(57.2%)

5.6%(III)DiscountRate(IV)FinalCapitalizationYield

6.0%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,180,000thousand
JPY1,200,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY338,000thousand(63.6%)(ii)BuildingPrice

JPY163,000thousand(30.7%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY30,600thousand(5.8%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY531,600thousand(100.0%)150%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY797,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

58

D17

: HotelMyStaysOtemae

1/1/2012–12/31/2012
JPY85,242thousand

1/1/2013–12/31/2013
JPY84,104thousand—
JPY8,524thousand
JPY229thousand
JPY1,000thousand
JPY75,488thousand
JPY186,604thousand
JPY164,764thousand
JPY21,840thousand
JPY101,362thousand
JPY5,390
JPY4,056—
JPY7,857thousand
JPY229thousand
JPY1,000thousand
JPY75,017thousand
JPY188,146thousand
JPY175,210thousand
JPY12,936thousand
JPY104,042thousand
JPY5,401
JPY4,364

75.2%
45.7%

80.8%
44.7%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)
e
r
ADR
e
RevPARn
RoomOccupancyRatesc
GOPRatioeDaily/Weekly/Monthly)

62.9%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

18.4%/18.7%

60.9%/16.1%/23.0%

JapanRealEstateInstituteJPY1,200million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod
Value(1)DirectCapitalizationMethod

JPY105,227thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome—(e)OtherIncome—(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY105,227thousand(f)VacantRoomLosses—(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY105,227thousand(h)MaintenanceandManagementCosts—(i)UtilityCosts—(j)RepairCosts

JPY2,613thousand(k)PropertyManagementFee—(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY7,857thousand(n)NonͲlifeInsurancePremiums

JPY2,029thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY12,499thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY92,728thousand(p)OneͲTimeInvestmentGains(11.9%)—
JPY6,097thousand(q)CapitalImprovementsandExpenses(r)FF&EReserve

JPY6,659thousand(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY79,972thousand
6.6%(VI)CapitalizationYield

JPY1,210,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(7.7%)(2)DCFMethod

Value
JPY563,733thousand(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod(a)SalePrice(47.7%)

JPY1,184,926thousand(b)SaleCosts

JPY35,548thousand(c)ReturningPrice[(a)Ͳ(b)]JPY1,149,378thousand(II)ReturningPrice,CurrentValue

JPY618,135thousand(III)DiscountRate(52.3%)

6.4%(IV)FinalCapitalizationYield

6.8%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY1,180,000thousand
JPY1,200,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY666,000thousand(68.7%)(ii)BuildingPrice

JPY283,000thousand(29.2%)(iii)TotalPriceofLandandBuilding[(i)+(ii)]

JPY949,000thousand(iv)MaketabilityCorrectionRatio

110%(v)EstimatedPrice(EstimatedPriceof1BuildingandLand,excl.Furnishings/Appliances/

JPY1,040,000thousand(vi)DistributionRatiobasedonRelativeUtilitybyFloor

0.9671(vii)RevisionRatio

98%(viii)EstimatedPrice(EstimatedPriceofTargetProperty,excl.Furnishings/Appliances/Eq

JPY986,000thousand(ix)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY20,800thousand(x)MaketabilityCorrectionRatio(2.1%)

110%(xi)EstimatedPrice(EstimatedPriceofFurnishings/Appliances/Equipment/Upholstery)[JPY22,900thousand(xii)EstimatedPriceusingCostMethod=[(viii)×(xi)]JPY1,010,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

59

D18

:

FlexstayInnKiyosumiShirakawa

1/1/2012–12/31/2012
JPY54,773thousand

1/1/2013–12/31/2013
JPY56,314thousand—
JPY8,026thousand
JPY163thousand
JPY1,000thousand
JPY45,583thousand
JPY105,573thousand
JPY87,973thousand
JPY17,600thousand
JPY50,800thousand—
JPY7,425thousand
JPY163thousand
JPY1,000thousand
JPY47,725thousand
JPY108,998thousand
JPY92,461thousand
JPY16,536thousand
JPY52,683thousand

JPY4,884
JPY4,370
89.5%
51.9%
47.6%

JPY5,253
JPY4,606
87.7%
51.7%
41.8%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)
e
r
ADR
e
RevPARn
RoomOccupancyRatesc
GOPRatioeDaily/Weekly/Monthly)

36.5%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

15.9%/44.2%/14.0%/JapanRealEstateInstituteJPY754million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY70,422thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY70,422thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY70,422thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY3,541thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY7,425thousand(n)NonͲlifeInsurancePremiums

JPY2,185thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY13,151thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY57,271thousand(p)OneͲTimeInvestmentGains(18.7%)—(q)CapitalImprovementsandExpenses

JPY8,263thousand
JPY3,225thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY45,783thousand(VI)CapitalizationYield

6.0%
JPY763,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](7.5%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY321,260thousand(a)SalePrice(43.2%)

JPY759,328thousand(b)SaleCosts

JPY22,780thousand(c)ReturningPrice[(a)Ͳ(b)]JPY736,548thousand
JPY423,073thousand(II)ReturningPrice,CurrentValue(56.8%)

5.7%(III)DiscountRate(IV)FinalCapitalizationYield

6.1%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY744,000thousand
JPY754,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY361,000thousand(60.4%)(ii)BuildingPrice

JPY234,000thousand(39.1%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)]

JPY3,000thousand(0.5%)

JPY598,000thousand(100.0%)120%(v)MaketabilityCorrectionRatioforLandandBuildingasaWhole(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]

JPY718,000thousand

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

60

D19

:

FlexstayInnNakanobuP1

1/1/2012–12/31/2012
JPY31,402thousand

1/1/2013–12/31/2013
JPY37,207thousand—
JPY1,957thousand
JPY51thousand
JPY1,000thousand
JPY28,393thousand
JPY55,489thousand
JPY51,245thousand
JPY4,243thousand
JPY24,087thousand—
JPY1,879thousand
JPY51thousand
JPY1,000thousand
JPY34,276thousand
JPY64,428thousand
JPY60,509thousand
JPY3,918thousand
JPY27,220thousand

JPY4,399
JPY3,500
79.6%
56.6%
64.0%

JPY4,695
JPY4,251
90.5%
57.8%
66.6%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)
e
r
ADR
e
RevPARn
RoomOccupancyRatesc
GOPRatioeDaily/Weekly/Monthly)

16.8%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

19.2%/19.1%/14.2%/JapanRealEstateInstituteJPY593million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY65,166thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY65,166thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY65,166thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY1,840thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY2,926thousand(n)NonͲlifeInsurancePremiums

JPY958thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY5,724thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY59,442thousand(p)OneͲTimeInvestmentGains(8.8%)—(q)CapitalImprovementsandExpenses

JPY4,293thousand
JPY2,815thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY52,334thousand(VI)CapitalizationYield

5.9%
JPY887,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.7%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY376,730thousand(a)SalePrice(43.4%)

JPY874,000thousand(b)SaleCosts

JPY26,220thousand(c)ReturningPrice[(a)Ͳ(b)]JPY847,780thousand(II)ReturningPrice,CurrentValue

JPY491,628thousand(III)DiscountRate(56.6%)

5.6%(IV)FinalCapitalizationYield

6.0%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY868,000thousand
JPY878,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY295,000thousand(74.4%)(ii)BuildingPrice

JPY98,100thousand(24.8%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY3,200thousand(0.8%)

JPY396,300thousand(100.0%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)](v)MaketabilityCorrectionRatioforLandandBuildingasaWhole

150%(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]JPY594,000thousand(Note)TheaboveSummaryofRealEstateAppraisalReportissharedwith"D20–FlexstayInnNakanobuP2."
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

61

D20

:

FlexstayInnNakanobuP2

1/1/2012–12/31/2012
JPY18,244thousand

1/1/2013–12/31/2013
JPY18,610thousand—
JPY1,098thousand
JPY30thousand
JPY1,000thousand
JPY16,115thousand
JPY32,189thousand
JPY28,676thousand
JPY3,512thousand
JPY13,944thousand—
JPY1,046thousand
JPY30thousand
JPY1,000thousand
JPY16,533thousand
JPY34,308thousand
JPY31,320thousand
JPY2,988thousand
JPY15,698thousand

JPY3,877
JPY3,561
91.9%
56.7%
53.6%

JPY4,114
JPY3,900
94.8%
54.2%
44.2%

(

IncomeandExpenditures,Etc.
OperatingPeriod
GOP(=(1)Ͳ(2))
a.LandLeaseFeesb.TaxesandPublicDuesc.NonͲlifeInsurancePremiumsd.TrustFees
NOI(=GOPͲ[a.+b.+c.+d.])(1)SalesR
RoomIncomeeOtherIncomef(2)OperatingCosts(notincludinga.throughd.above)
e
r
ADR
e
RevPARn
RoomOccupancyRatesc
GOPRatioeDaily/Weekly/Monthly)

20.8%/SummaryofRealEstateAppraisalReport
AppraisingOrganization
AppraisalValue(SpecifiedValue)TimeofValuation

25.6%/30.5%/25.2%/JapanRealEstateInstituteJPY285million
AsofApril30,2014

1.ValueofProfitsusingtheProfitCapitalizationMethod(1)DirectCapitalizationMethod

Value
JPY65,166thousand(a)RoomRentalIncome(b)CommonAreaMaintenanceFeeIncome—(c)UtilityIncome—(d)ParkingLotIncome——(e)OtherIncome(I)TotalPotentialRevenue=[(a)+(b)+(c)+(d)+(e)]JPY65,166thousand—(f)VacantRoomLosses(g)IrrecoverableDebtLosses—(II)OperatingRevenue=[(I)Ͳ(f)Ͳ(g)]JPY65,166thousand—(h)MaintenanceandManagementCosts(i)UtilityCosts—(j)RepairCosts

JPY1,840thousand—(k)PropertyManagementFee(l)TenantSolicitationExpenses—(m)TaxesandPublicDues

JPY2,926thousand(n)NonͲlifeInsurancePremiums

JPY958thousand(o)OtherCosts—(III)OperatingCosts(ExpenseRate)=[(h)+(i)+(j)+(k)+(l)+(m)+(n)+(o)]JPY5,724thousand(IV)NetOperatingIncome=[(II)Ͳ(III)]

JPY59,442thousand(p)OneͲTimeInvestmentGains(8.8%)—(q)CapitalImprovementsandExpenses

JPY4,293thousand
JPY2,815thousand(r)FF&EReserve(V)NetIncome=[(IV)+(p)Ͳ(q)Ͳ(r)]JPY52,334thousand(VI)CapitalizationYield

5.9%
JPY887,000thousand(VII)IncomePriceusingDirectCapitalizationMethod=[(V)÷(VI)](6.7%)(Reference)BaseYieldofNetOperatingIncome(NOI)((IV)NOI÷(VII)IncomePrice)(2)DCFMethod

Value(I)TotalofCurrentValueofNetIncomeduringAnalysisPeriod

JPY376,730thousand(a)SalePrice(43.4%)

JPY874,000thousand(b)SaleCosts

JPY26,220thousand(c)ReturningPrice[(a)Ͳ(b)]JPY847,780thousand(II)ReturningPrice,CurrentValue

JPY491,628thousand(III)DiscountRate(56.6%)

5.6%(IV)FinalCapitalizationYield

6.0%(V)IncomePriceusingDCFMethod=[(I)+(2)](3)IncomePriceusingIncomeCapitalization
MethodJPY868,000thousand
JPY878,000thousand

2.EstimatedPriceusingCostMethod
Value(i)LandPrice

JPY295,000thousand(74.4%)(ii)BuildingPrice

JPY98,100thousand(24.8%)(iii)Furnishings/Appliances/Equipment/UpholsteryPrice

JPY3,200thousand(0.8%)

JPY396,300thousand(100.0%)(iv)TotalPriceofLand,Building,andFurnishings/Appliances/Equipment/Upholstery=[(i)+(ii)+(iii)](v)MaketabilityCorrectionRatioforLandandBuildingasaWhole

150%(vi)EstimatedPriceusingCostMethod=[(iv)×(v)]JPY594,000thousand(Note)TheaboveSummaryofRealEstateAppraisalReportissharedwith"D19–FlexstayInnNakanobuP1."
This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions
based on their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no
warranties or assurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japaneselanguage notice. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

62

2. Portfolio List after the Acquisition
Property
NumberAcquisition Price orProperty Name

Type

Area

AnticipatedAcquisition Price(mn JPY) (Note 1)

Investment
Ratio (%)
(Note 2)

A26

Nisshin Palacestage
Daitabashi

Residential

Greater Tokyo Area

1,251

1.1

A27

Nisshin Palacestage
Higashi-Nagasaki

Residential

Greater Tokyo Area

1,229

1.0

A28

Growth Maison Gotanda

Residential

Greater Tokyo Area

888

0.8

A29

Growth Maison Kameido

Residential

Greater Tokyo Area

1,070

0.9

A30

Emerald House

Residential

Greater Tokyo Area

1,505

1.3

A31

Harmonie Ochanomizu

Residential

Greater Tokyo Area

1,428

1.2

A32

Suncrest Shakujii Koen

Residential

Greater Tokyo Area

1,088

0.9

A33

Growth Maison ShinYokohama

Residential

Greater Tokyo Area

1,059

0.9

A34

Belle Face Ueno
Okachimachi

Residential

Greater Tokyo Area

1,023

0.9

A35

Grand Rire Kameido

Residential

Greater Tokyo Area

906

0.8

A36

Growth Maison
Ikebukuro

Residential

Greater Tokyo Area

825

0.7

A37

Growth Maison Yoga

Residential

Greater Tokyo Area

795

0.7

A38

Route Tachikawa

Residential

Greater Tokyo Area

676

0.6

A39

Shibuya Honmachi
MansionResidential

Greater Tokyo Area

651

0.6

A40

City Heights Kinuta

Residential

Greater Tokyo Area

646

0.5

A41

Acseeds Tower
Kawaguchi Namiki

Residential

Greater Tokyo Area

620

0.5

A42

Capital Heights
Kagurazaka

Residential

Greater Tokyo Area

604

0.5

A43

College Square Machida

Residential

Greater Tokyo Area

589

0.5

A44

Belair Meguro

Residential

Greater Tokyo Area

589

0.5

A45

Wacore Tsunashima I

Residential

Greater Tokyo Area

572

0.5

A46

Foros Nakamurabashi

Residential

Greater Tokyo Area

566

0.5

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

63Property
NumberAcquisition Price orProperty Name

Type

Area

AnticipatedAcquisition Price(mn JPY) (Note 1)

Investment
Ratio (%)
(Note 2)A47

Growth Maison Kaijin

Residential

Greater Tokyo Area

557

0.5

A48

College Square Machiya

Residential

Greater Tokyo Area

510

0.4

A51

City House Tokyo
Shinbashi

Residential

Greater Tokyo Area

2,520

2.1

A52

Winbell Kagurazaka

Residential

Greater Tokyo Area

3,260

2.8

A53

Nishiwaseda Cresent
MansionResidential

Greater Tokyo Area

1,880

1.6

A54

Lexington Square
Akebonobashi

Residential

Greater Tokyo Area

1,450

1.2

A56

Casa Eremitaggio

Residential

Greater Tokyo Area

1,070

0.9

A59

Towa City Coop Shinotsuka II

Residential

Greater Tokyo Area

866

0.7

A61

Bichsel Musashiseki

Residential

Greater Tokyo Area

577

0.5

A62

Lexel Mansion Ueno
Matsugaya

Residential

Greater Tokyo Area

970

0.8

A63

Towa City Coop
Sengencho

Residential

Greater Tokyo Area

1,110

0.9

A64

Royal Park Omachi

Residential

Other

415

0.4

A65

Lexington Square
Haginomachi

Residential

Other

330

0.3

A66

Visconti Kakuozan

Residential

Other

255

0.2

A71

Lexington Square
Daitabashi

Residential

Greater Tokyo Area

977

0.8

A72

Lexington Square HonjoAzumabashi

Residential

Greater Tokyo Area

511

0.4

A73

AMS TOWER Minami 6Jo

Residential

Other

1,180

1.0

A75

Spacia Ebisu

Residential

Greater Tokyo Area

7,010

5.9

A76

Neo Prominence

Residential

Greater Tokyo Area

1,660

1.4

A77

Invoice Shin-Kobe
Residential

Residential

Other

1,260

1.1

A78

Cosmo Court Motomachi

Residential

Other

973

0.8

A79

Revest Honjin

Residential

Other

674

0.6

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

64Property
NumberAcquisition Price orProperty Name

Type

Area

AnticipatedAcquisition Price(mn JPY) (Note 1)

Investment
Ratio (%)
(Note 2)

A80

Revest Matsubara

Residential

Other

657

0.6

A81

Sun Terrace Minami
Ikebukuro

Residential

Greater Tokyo Area

625

0.5

A82

Alba Noritake Shinmachi

Residential

Other

608

0.5

A83

Revest Meieki Minami

Residential

Other

597

0.5

A84

Revest HeianResidential

Other

595

0.5

A85

Vendir Hamaotsu Ekimae

Residential

Other

581

0.5

A86

Salvo Sala

Residential

Other

544

0.5

A87

Excellente Kagurazaka

Residential

Greater Tokyo Area

543

0.5

A88

Luna Court Edobori

Residential

Other

525

0.4

A89

Winntage Kobe
Motomachi

Residential

Other

512

0.4

A90

Queen’s Court Fukuzumi

Residential

Greater Tokyo Area

456

0.4

A91

Corp Higashinotoin

Residential

Other

446

0.4

A92

Belair Oimachi

Residential

Greater Tokyo Area

412

0.3

A93

Siete Minami-Tsukaguchi

Residential

Other

374

0.3

A94

Prime Life Sannomiya
Isogami Koen

Residential

Other

373

0.3

A95

HERMITAGE NANBA
WEST

Residential

Other

355

0.3

A96

Century Park Shinkawa
1-bankan

Residential

Other

335

0.3

A97

West Avenue

Residential

Greater Tokyo Area

331

0.3

A98

Little River
Honmachibashi

Residential

Other

310

0.3

A99

Prime Life Mikage

Residential

Other

297

0.3

58,083

49.3

1,301

1.1

Subtotal of Residential Properties (63 properties)
B8

Kindai Kagaku Sha
Building

OfficeGreater Tokyo Area

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

65

Property
NumberAcquisition Price orProperty Name

Type

Area

AnticipatedAcquisition Price(mn JPY) (Note 1)

Investment
Ratio (%)
(Note 2)

B9

Shinjuku Island

OfficeGreater Tokyo Area

715

0.6

B14

Lexington Plaza
Nishigotanda

OfficeGreater Tokyo Area

4,880

4.1

B15

Cross Square NAKANO

OfficeGreater Tokyo Area

1,060

0.9

B16

Ohki Aoba Building

Office

Other

816

0.7

B17

Lexington Plaza
Hachiman

Retail

Other

3,280

2.8

B18

AEON TOWN Sukagawa

Retail

Other

2,320

2.0

Subtotal of Office Buildings and Retail Properties (7 properties)

14,372

12.2

97

0.1

97

0.1

C1

Stop Parking KandaSudacho

Parking

Greater Tokyo Area

Subtotal of Parking Facility (1 property)
D1

Hotel MyStays Kanda

Hotel

Greater Tokyo Area

2,851

2.4

D2

Hotel MyStays Asakusa

HotelGreater Tokyo Area

2,584

2.2

D3

Hotel MyStays KyotoShijo

Hotel

Other

6,024

5.1

D4

MyStays Shin-Urayasu
Conference Center

HotelGreater Tokyo Area

4,930

4.2

Hotel

Greater Tokyo Area

4,870

4.1

D5

Hotel MyStays Maihama

D6

Hotel Vista Premio
Dojima

Hotel

Other

3,845

3.3

D7

Hotel MyStays NagoyaSakae

Hotel

Other

2,958

2.5

D8

Hotel MyStays SakaisujiHonmachi

Hotel

Other

2,514

2.1

D9

Hotel MyStays
Yokohama

HotelGreater Tokyo Area

2,119

1.8

Hotel

Greater Tokyo Area

1,898

1.6

Hotel

Other

1,570

1.3

Hotel

Greater Tokyo Area

1,381

1.2

Hotel

Greater Tokyo Area

1,331

1.1

D10
D11
D12
D13

Hotel MyStays Nippori
Hotel MyStays FukuokaTenjin-Minami
Flexstay Inn Iidabashi
Hotel MyStays Ueno
InarichoThis English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

66

Property
NumberAcquisition Price orProperty Name

Type

Area

AnticipatedAcquisition Price(mn JPY) (Note 1)

D14
D15
D16
D17

Flexstay Inn Shinagawa
Flexstay Inn Tokiwadai
Flexstay Inn Sugamo
Hotel MyStays Otemae

Investment
Ratio (%)
(Note 2)

Hotel

Greater Tokyo Area

1,242

1.1

Hotel

Greater Tokyo Area

1,242

1.1

Hotel

Greater Tokyo Area

1,192

1.0

Hotel

Other

1,192

1.0

D18

Flexstay Inn Kiyosumi
Shirakawa

HotelGreater Tokyo Area

749

0.6

D19

Flexstay Inn Nakanobu
P1

Hotel

Greater Tokyo Area

589

0.5

D20

Flexstay Inn Nakanobu
P2

Hotel

Greater Tokyo Area

283

0.2

Subtotal of Hotels (20 properties)

45,373

38.5

Total Portfolio (91 properties)

117,927100.0(Note 1)

Acquisition price or anticipated acquisition price is as set forth in the relevant purchaseagreement or trust beneficiary interest transfer agreement, does not include expenses such as
consumption taxes, and is rounded down to the nearest million yen.

(Note 2)

Investment ratio is calculated as a percentage of the aggregate total acquisition price of our
anticipated portfolio after giving effect to our anticipated acquisitions, and rounded to one
decimal place.

This English language notice is a translation of the Japanese-language notice released on June 23, 2014 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

67

３． Picture and Map of the Eighteen Properties
D3
Hotel MyStays Kyoto-Shijo

D4

MyStays Shin-Urayasu Conference Center

D5

Hotel MyStays Maihama

68

D6

Hotel Vista Premio Dojima

D7

Hotel MyStays Nagoya-Sakae

D8

Hotel MyStays Sakaisuji-Honmachi

69

D9

Hotel MyStays Yokohama

D10

Hotel MyStays Nippori

D11

Hotel MyStays Fukuoka-Tenjin-Minami

70

D12

Flexstay Inn Iidabashi

D13

Hotel MyStays Ueno Inaricho

D14

Flexstay Inn Shinagawa

71

D15

Flexstay Inn Tokiwadai

D16

Flexstay Inn Sugamo

D17

Hotel MyStays Otemae

72

D18

Flexstay Inn Kiyosumi Shirakawa

D19

Flexstay Inn Nakanobu P1

D20

Flexstay Inn Nakanobu P273