TRANSLATION
February 21, 2018
Real Estate Investment Trust Securities Issuer
Sekisui House Residential Investment Corporation
3-1-31 Minami-Aoyama, Minato-ku, Tokyo
Representative: Osamu Minami, Executive Director(Securities Code: 8973)
Asset Management Company
Sekisui House Asset Management, Ltd.
3-1-31 Minami-Aoyama, Minato-ku, Tokyo
Representative: Osamu Minami,
President & Representative Director
Inquiries:
Yoshiya Sasaki, General Manager
IR & Financial Affairs Department
TEL: +81-3-5770-8973 (main)

Notice Concerning Borrowing of Funds
Sekisui House Residential Investment Corporation (the “Investment Corporation”) hereby announces that it today
reached an agreement with lenders for the borrowing of funds (the “Borrowing”) as described below.
1. Borrowing of Funds(1) Reason for the Borrowing
The Investment Corporation shall use the borrowed funds as funds for redemption of the Investment Corporation Bond
totaling 4.0 billion yen due on February 28, 2018 (for details, please refer to the press release titled "Notice Concerning
Issuance of Investment Corporation Bonds" dated February 22, 2013. The same applies hereafter.) and repayment of theexisting loan totaling 2.1 billion yen due on February 28, 2018 (for details, please refer to the press release titled "NoticeConcerning Debt Financing" dated February 25, 2013. The same applies hereafter.).
(2) Description of the Borrowing<Individual loan contract (February 2018 / 1 year and 8 years) >-Tranche A (loan period: 1 year / Borrowing with floating rate)(i)Lenders:
Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank ofTokyo-Mitsubishi UFJ, Ltd.
(ii)
(iii)

Loan amount:
Interest rate, etc.:

4,000,000,000 yen
TBD (floating interest rate) (base rate + 0.180%)(Note) The interest rate will be announced when determined. The base rate applicable tothe interest rate calculation period for each interest payment date will be the1-month Japanese Yen TIBOR announced by JBA TIBOR Administration(JBATA) on the date two business days prior to the interest payment date
immediately before each interest payment date (or, prior to the drawdown datefor the first interest payment date). The relevant base rate will be available on
the website of JBATA (http://www.jbatibor.or.jp/english/). Moreover, thesubsequent floating interest rates on this borrowing will be disclosed on thewebsite of the Investment Corporation.

(iv)
(v)

Scheduled drawdown date:
Borrowing method:(vi)

Interest payment date:February 27, 2018
The Investment Corporation shall borrow funds based on the basic agreement
dated July 27, 2010 (as amended) entered into with the lenders stated in (i)above and other parties, and the individual loan contract (February 2018 / 1year and 8 years) dated February 21, 2018 entered into with the lenders statedin (i) above, assigning Mizuho Bank, Ltd. as an individual agent.
The first interest payment shall be due on March 30, 2018, and subsequentinterest payments shall be due on the last day of every month thereafter until
the final interest payment on February 28, 2019 (or the business day
immediately preceding the concerned date if any concerned date is not aThis translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation,
the Japanese version shall prevail.
1business day).
(vii)(viii)(ix)

Principal repayment method:
Principal repayment date:
Security:

Lump-sum repayment on principal repayment dateFebruary 28, 2019
Unsecured and unguaranteed-Tranche B (loan period: 8 years / Borrowing with fixed interest rate)(i)Lenders:

Mizuho Bank, Ltd., The 77 Bank, Ltd, The Hiroshima Bank Ltd., Mitsubishi
UFJ Trust and Banking Corporation

(ii)
(iii)

Loan amount:
Interest rate, etc.:

1,600,000,000 yen
TBD (fixed interest rate)(Note) The interest rate will be announced when determined.

(iv)
(v)

Scheduled drawdown date:
Borrowing method:(vi)

Interest payment date:(vii)(viii)(ix)

Principal repayment method:
Principal repayment date:
Security:February 28, 2018
The Investment Corporation shall borrow funds based on the basic agreement
dated July 27, 2010 (as amended) entered into with the lenders stated in (i)above and other parties, and the individual loan contract (February 2018 / 1year and 8 years) dated February 21, 2018 entered into with the lenders statedin (i) above and other parties, assigning Mizuho Bank, Ltd. as an individualagent.
The first interest payment shall be due on May 31, 2018, and subsequentinterest payments shall be due on the last day of every February, May, August,and November of every year thereafter until the final interest payment on
February 27, 2026 (or the business day immediately preceding the concerned
date if any concerned date is not a business day).
Lump-sum repayment on principal repayment dateFebruary 27, 2026
Unsecured and unguaranteed-Tranche C (loan period: 8 years / Borrowing with fixed interest rate)(i)
(ii)
(iii)

Lender:Loan amount:
Interest rate, etc.:

(iv)
(v)

Scheduled drawdown date:
Borrowing method:(vi)

Interest payment date:(vii)(viii)(ix)

Principal repayment method:
Principal repayment date:
Security:

The Bank of Tokyo-Mitsubishi UFJ Ltd.
500,000,000 yen
TBD (fixed interest rate)(Note) The interest rate will be announced when determined.

February 28, 2018
The Investment Corporation shall borrow funds based on the basic agreement
dated July 27, 2010 (as amended) entered into with the lender stated in (i)above and other parties, and the individual loan contract (February 2018 / 1year and 8 years) dated February 21, 2018 entered into with the lender stated in(i) above and other parties, assigning Mizuho Bank, Ltd. as an individualagent.
The first interest payment shall be due on May 31, 2018, and subsequentinterest payments shall be due on the last day of every February, May, August,and November of every year thereafter until the final interest payment on
February 27, 2026 (or the business day immediately preceding the concerned
date if any concerned date is not a business day).
Lump-sum repayment on principal repayment dateFebruary 27, 2026
Unsecured and unguaranteed

This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation,the Japanese version shall prevail.
2(3) Amount to be Procured, Specific Use of Funds and Schedule of Expenditure
・Amount to be procured: 6.1 billion yen
・Specific use of funds: Funds for redemption of the investment corporation bond totaling 4.0 billion yen due onFebruary 28, 2018 as redemption date and repayment of the existing loan totaling 2.1 billion
yen due on February 28, 2018 as repayment date・Schedule of expenditure: February 28, 2018
2. Status of Interest-Bearing Debt Before and After the Borrowing
Before theBorrowing
Short-term loans(Unit: million yen)
Increase(Decrease)

After theBorrowing---

Current portion of long-term loans(to be repaid within one year or less)

12,982

10,882(2,100)

Long-term loans

78,05084,1506,100Investment corporation bonds

8,000

8,000

-

Current portion of Investment corporation bonds(to be redeemed within one year or less)

6,500

2,500

(4,000)Total interest-bearing debt

105,532

105,532-

Ratio of Interest-bearing debt to total assets(LTV) (estimate) (Note 2)

50.3%

50.3%

-(Note 1) Each of the amount and the percentage in the above are the estimated figure based on the assumption that the Investment Corporation
will obtain no new borrowings, etc. other than the Borrowing.
(Note 2) The LTV (estimate) is calculated by using the following formula, and is rounded to the nearest first decimal place.
LTV (estimate) (%) = (Total amount of interest-bearing debt / Total assets (estimate)) x 100(Note 3) Amounts are rounded down to the nearest specified unit.

3. Others
Concerning the risks associated with the Borrowing, etc., there is no change from the “Investment Risks” stated in thesemi-annual securities report (Japanese only) submitted on December 26, 2017 that would have a material adverse effecton the Investment Corporation.

*Sekisui House Residential Investment Corporation website: http://www.shi-reit.co.jp/eng/

This translation is for informational purpose only. If there is any discrepancy between the Japanese version and the English translation,
the Japanese version shall prevail.
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