[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
August 26, 2019
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities code:8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Debt Financing (Refinance) and
Execution of Interest Rate Swap Agreement

Invincible Investment Corporation (“INV”) has determined today to obtain new debt financing torefinance existing debt and has executed an interest rate swap agreement (the “Interest Rate SwapAgreement”) today with regards to the new borrowing. INV will further strengthen its lenderformation by introducing a new bank, The Daisan Bank, Ltd through the new borrowing. Details
are as follows.
1. Reason for Borrowing
INV has decided to execute a new loan agreement (the "New Borrowing") today in order to repay
Term Loan (A) (Note) due on August 28, 2019.
(Note)For details of the Term Loan (A), please refer to “4. Details of Loan to be Repaid” below and the press
releases entitled “Notice concerning Debt Financing” dated August 21, 2015 and “Notice Concerning
Implementation of Debt Financing” dated August 28, 2015.

2. Details of the New Borrowing (anticipated)< New Syndicate Loan (N) >4.4-Year Loan
(1) Lender:

Mizuho Bank, Ltd.
The Daisan Bank, Ltd.

(2) Borrowing amount(3) Interest rate, etc.

::

JPY 3,682 million
1-month JPY TIBOR (Base Rate) + spread (0.45000%)
Variable interest rate (Note)

This English language notice is a translation of the Japanese-language notice released on August 26, 2019 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 basedon their own 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(4) Borrowing method:

Borrowing based on separate term loan agreement dated
August 26, 2019
Unsecured / with no guarantee(5) Agreement date:August 26, 2019(6) Anticipated borrowing date:August 28, 2019(7) Interest payment date:(1) The last Japanese business day of each month before theprincipal maturity date, beginning with August 30, 2019, and(2) the principal maturity date

(8) Principal repayment method:

Lump-sum repayment on the principal maturity date

(9) Principal maturity date:January 16, 2024

(Note)

・Base rate applicable to each interest calculation period for the interests to be paid on the relevantinterest payment date shall be the 1-month JPY TIBOR announced by Japanese Bankers
Association two Japanese business days prior to the immediately preceding interest payment
date (in case of the initial interest calculation period, two Japanese business days prior to theborrowing date).
・JPY TIBOR announced by the Japanese Bankers Association is available at its website(http://www.jbatibor.or.jp/english/).
・Details of our debt financing is available at the “Borrowings & Investment Corporation Bonds” pageof INV’s website (http://www.invincible-inv.co.jp/eng/cms/loan.html).

3. Loan proceeds, use of proceeds and scheduled timing of disbursement(1) Loan proceeds
JPY 3,682 million(2) Use of proceeds
To be appropriated for the repayment of Term Loan (A)(3) Scheduled timing of disbursement
August 28, 2019
4. Details of Loan to be Repaid
Term Loan (A)Borrowing
LenderDate

Mizuho Bank, Ltd.

August 28,
2015

BalancebeforeRepayment(JPY million)

Repayment
Amount(JPYmillion)

Balance after
Repayment(JPY million)

InterestRate(annual)

3,682

3,682－0.48000%(Note)

Maturity

Borrowing

Date

MethodAugust28,2019Unsecured/non-guaranteed(Note) This is a borrowing with floating interest rate, but the interest rate is fixed through interest rate swap agreement. Theinterest rate is fixed rate after swap.

This English language notice is a translation of the Japanese-language notice released on August 26, 2019 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 basedon their own 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.

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5. Details of the Interest Rate Swap Agreement(1) Reason for Executing the Interest Rate Swap Agreement
In order to hedge the risk of interest rate fluctuations(2) Details of the Interest Rate Swap Agreement
Notional

Interest Rate

Principal(upper：fixed rate payable)

Agreement

Counterparty(JPY(lower: floating ratemillion)

receivable)

Date

0.46219%
Nomura Securities
Co., Ltd.

Interest
Applicable Period

3,682(Note 1)

One-month JPY TIBOR +0.45000%

August 26,
2019

Payment Date

From
August 28, 2019
toJanuary 16, 2024

The last Japanesebusiness day of eachmonth and the last dayof the applicable period(Note 1) Equivalent to the principal amount of borrowing by the New Syndicate Loan (N) to be implemented on August 28, 2019.
By this Interest Rate Swap Agreement, the interest rate of this loan will be fixed, in effect, at 0.46219%.
(Note 2) The initial interest calculation period is from August 28, 2019 (inclusive of the date) to August 30, 2019 (exclusive ofthe date and up to one day prior), and the interest calculation period thereafter will be from the immediately preceding
interest payment date (inclusive of the date) to the relevant interest payment date (exclusive of the date and up to oneday prior).

6. Future outlook
The impact of the New Borrowing and the Interest Rate Swap Agreement on financial results isminimal and therefore no changes are required for the forecasts of financial results for the fiscal
period ending December 2019 (from July 1, 2019 to December 31, 2019).
7. Other matters necessary for investors’ appropriate understanding/judgment of the concerned
information
With respect to the risks associated with the New Borrowing and the Interest Rate Swap
Agreement, please refer to the content of “Investment Risks” stated in the securities report for
the fiscal period ended December 2018 (from July 1, 2018 to December 31, 2018) (available inJapanese only) filed on March 26, 2019 and “Part II Reference Information II Supplemental
Information to the Reference Documents 5. Investment Risks” of the securities registration
statement (available in Japanese only) filed on July 1, 2019.

Website of INV: http://www.invincible-inv.co.jp/eng/

This English language notice is a translation of the Japanese-language notice released on August 26, 2019 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 basedon their own 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[For reference only]■Change in balance of interest-bearing liabilities (anticipated)(Unit：JPY million)
Before the New Borrowing

After the New Borrowing

Increase(As of August 26, 2019)(As of August 28, 2019)(Decrease)

Total loans
Total investment
corporation bonds
Total interest-bearing liabilities
Total appraisal value of assets
owned by INV (Note 1)
LTV (based on appraisal value)(Note 2) (%)

252,174

252,174－4,000

4,000－

256,174

256,174－

574,500

574,500

－

44.1

44.1－

(Note 1) As to “Total appraisal value of assets owned by INV”, among the 148 properties owned by INV as of today (including
preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel), the appraisal value for the 129
properties held as of June 30, 2019 is based on the appraisal value stated in the appraisal reports on the valuation date ofJune 30, 2019 and the 18 properties acquired in July 19, 2019 is based on the appraisal value stated in the appraisal reportson the valuation date of April 1, 2019. For the preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay
Hotel as an underlying asset, the acquisition price (INV’s investment amount) of such preferred equity interest, JPY 17,845
million, is deemed as the appraisal value and included. The appraisal value of overseas real estate assets (which are “TheWestin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort”) is translated into JPY based on theexchange rate of 1 USD=110.45 JPY which is the foreign exchange forward rate under the foreign exchange forward
agreement which we entered into on July 26, 2018 and became effective as of September 26, 2018.
(Note 2) “LTV (based on appraisal value)” in the above table is calculated according to the following formula:
LTV (based on appraisal value) ＝ Total interest-bearing liabilities (excluding short-term consumption tax loan) ÷ Total
appraisal value of assets owned by INV × 100“Total interest-bearing liabilities” does not include the interest-bearing liabilities of the TMK which holds Sheraton GrandeTokyo Bay Hotel as an underlying asset.
(Note 3) The amounts are rounded down to the nearest million yen. The percentages are rounded to the nearest one decimal place.

This English language notice is a translation of the Japanese-language notice released on August 26, 2019 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 basedon their own 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.

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■Lender formation after the New Borrowing (anticipated)

This English language notice is a translation of the Japanese-language notice released on August 26, 2019 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 basedon their own 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.

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