Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

February 17, 2022
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Norio Nagamine, Head of Ichigo OfficeTel: +81-3-3502-4891

Sale of Portfolio Asset (Ichigo Akasaka 5 Chome Building)
Ichigo Office today decided to sell one of its assets, the Ichigo Akasaka 5 ChomeBuilding.
1. Asset Sale Summary

1
2

Asset Number
Asset Name

O-08
Ichigo Akasaka 5 Chome Building

Asset Type

OfficeDate Built

May 17, 1988

Form of Ownership

Real Estate

Acquisition Date

November 1, 2011

Buyer1A Third-Party Japanese Company

Sale Price2 (A)JPY 1,720 million

Book Value3 (B)JPY 727 million

Sale Price vs.
Book Value(A) – (B)JPY 993 million

Appraisal Value4

JPY 878 million

Contract Date

February 17, 2022

Closing Date

February 18, 2022

Legal Form ofTransaction

Sale of Real Estate

The buyer did not provide consent to disclose its name.
Sale Price is the sale price of the asset excluding incidental expenses such as fees andproperty, city planning, and consumption taxes.
13Book Value is an estimate based upon the most recent book value (October 2021 fiscal
period-end), adjusted for expected capital expenditures and depreciation through theClosing Date. Sale Price vs. Book Value is the difference between the sale price andbook value of the asset (i.e., the Sale Price is higher than Book Value).

4Appraisal Value is calculated by the Japan Real Estate Institute as of October 31, 2021,
pursuant to both the appraisal guidelines of Ichigo Investment Advisors Co., Ltd.
(“IIA”) and the rules of the Investment Trusts Association of Japan.

2. Sales Rationale
Ichigo Office continues to work to improve the quality of its portfolio and drive
earnings by focusing its portfolio on high-quality, mid-size office assets that generate
stable cash flow.
After receiving an offer from the buyer for a price that is 2.3 times book value and 1.9
times recent appraisal value, Ichigo Office decided that the sale of this office building,located in Minato-ku, Tokyo, would be positive for its shareholders in light of an
anticipated increase in capital expenditures required for upgrades and the uncertain
outlook for rents from tenants in the area.
This asset sale is forecast to generate a gain on sale of JPY 938 million in the April 2022
fiscal period. Ichigo Office will distribute 100% of this as a dividend to its shareholders.
Ichigo Office will use the proceeds from this asset sale for strategic investments such as
asset acquisitions and value-add capex with the intent to offset any loss of rental income
from this asset sale and therefore maintain portfolio earnings and dividends.

2

3. Details of the Ichigo Akasaka 5 Chome Building
Asset Name
Form of Ownership
Location
Property RightAreaLandZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building Structure
Total Floor Area
Date Built
Number of Tenants
Monthly Rental IncomeTenant Security Deposits
Leasable Area2
Leased Area2
Occupancy
Acquisition PriceAppraiser
Appraisal
Appraisal Date
Value
Appraisal Value

Asset Overview
Ichigo Akasaka 5 Chome Building
Real Estate
5-4-9 Akasaka, Minato-ku, Tokyo
Freehold
119.16m2
Commercial
80%600%
Freehold
Office, Retail
Steel Reinforced Concrete, 8 floors & 1 basement floor
791.97m2
May 17, 1988
9 (as of January 31, 2022)
JPY 4.466 million (as of January 31, 2022)
JPY 49.578 million (as of January 31, 2022)
683.52m2 (as of January 31, 2022)
683.52m2 (as of January 31, 2022)
Apr 2020 Oct 2020 Apr 2021 Oct 2021
100%100%100%100%
JPY 735 million
Japan Real Estate Institute
October 31, 2021
JPY 878 million

3Jan 2022
100%

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM FeeLeasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investment ofDeposits Received
CapitalExpenditure
Net Profit

Ichigo Akasaka 5 Chome Building
JPY 878,000,000
Japan Real Estate Institute
October 31, 2021
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and878,000,000
verified using a direct capitalization
valuation
888,000,000
51,977,000
Based on expected long-term, stablerental income, common area service
54,341,000
income, parking lot income, and otherincome
Based on long-term, normalized
2,364,000
vacancy rates
15,920,000
Based on an analysis of expenses of
3,350,000 similar assets and historical actualamounts
Based on historical actual amounts and3,800,000
reference to similar assets
Based on engineering reports and1,501,000
reference to similar assets
Based on existing contractual fees and1,445,000
reference to similar assets
Based on expected turnover rate and345,000 historical actual amounts, andreference to similar assets
5,386,000 Based on FY2021 actual amounts
Based on historical actual amounts and93,000reference to similar assets–
36,057,000
422,000 Based on a 1.0% investment yield
3,610,000

Based on engineering reports andreference to similar assets

32,869,000Based on transactions of similar assets
while taking into account the asset’s
3.7% location and specific characteristics,
rights, and terms and conditions of thecontract

Cap Rate

4

Value via DCF Method

867,000,000
Based on yields of similar assets andfinancial assets, taking into
3.5%
consideration the asset’s location andspecific characteristics
3.9% Cap rate adjusted for uncertainties

Discount Rate
Terminal Cap Rate
Value via Cost Approach

804,000,000
Based upon the value recorded in thegovernment land assessment
89.9%(koujikakaku) and transactions ofsimilar assets
Based upon the replacement cost
10.1% specified in engineering reports anddepreciation
Notes

Ratio of Land

Ratio of Building

None
4. Buyer Profile
NameThe buyer, a third-party Japanese company, did notprovide consent to disclose its name.

Relationship withIchigo Office or IIA

The buyer does not have any material capital,personnel, or transactional relationships with Ichigo
Office or IIA. In addition, the buyer is not a related
party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law orthe internal rules of IIA.

5. Broker Profile
Name
Address
Representative
Principal Business
CapitalEstablishment Date

Nomura Securities Co., Ltd.
1-13-1 Nihonbashi, Chuo-ku, Tokyo
Kentaro Okuda, President & Representative Director
Securities business
JPY 10 billion (as of March 31, 2021)
May 7, 2001

Relationship withIchigo Office or IIA

The broker does not have any material capital,personnel, or transactional relationships with Ichigo
Office or IIA. In addition, the broker is not a related
party as defined in the Enforcement Ordinance of theInvestment Trust and Investment Corporation Law.

Brokerage Fee

The broker did not provide consent to disclose
the fee.

56. Settlement Method
Lump-sum payment
7. Use of Sale Proceeds
Ichigo Office will distribute the gain on sale as part of dividends to shareholders, and will
deploy the remainder of the sales proceeds towards strategic investments such as asset
acquisitions and value-add capex.
8. Earnings Impact
The impact of today’s asset sale on Ichigo Office’s April 2022 fiscal period earnings has
already been reflected in the forecast presented in today’s Ichigo Office release“Earnings Forecast Revision for the April 2022 Fiscal Period.”
Because the impact of the asset sale on Ichigo Office’s October 2022 fiscal period
earnings is minimal, there is no change to the October 2022 fiscal period earnings
forecast.

6Reference: Post-Asset-Sale Portfolio
Asset Name

1

AreaAcquisition
Price2(JPY million)% ofPortfolio3

O-02 Ichigo Nishisando Building

Central Tokyo

3,254

1.6

O-03 Ichigo Mita Building

Central Tokyo

2,740

1.3

O-04 Ichigo Nanpeidai Building

Central Tokyo

1,920

0.9

O-05 Ichigo Hanzomon Building

Central Tokyo

1,550

0.8

O-06 Ichigo Hijirizaka Building

Central Tokyo

1,2000.6

O-07 Ichigo Shibuya Kamiyamacho Building

Central Tokyo

1,5050.7

O-09 Ichigo Shibakoen Building

Central Tokyo

1,1000.5

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

1,917

0.9

O-11 Ichigo Ginza 612 Building

Central Tokyo

1,773

0.9

O-12 Ichigo Uchikanda Building

Central Tokyo

1,140

0.6

O-14 Ichigo Yotsuya 4 Chome Building

Central Tokyo

550

0.3

O-15 Ichigo Tameike Building

Central Tokyo

580

0.3

O-16 Ichigo Jimbocho Building

Central Tokyo

1,820

0.9

O-17 Ichigo Hakozaki Building

Central Tokyo

1,1500.6O-18 Ichigo Kudan 2 Chome Building

Central Tokyo

763

0.4

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

844

0.4

O-20 Ichigo Gotanda Building

Central Tokyo

5,060

2.5

O-21 Ichigo Shin Yokohama Building

Tokyo Metro Area

1,816

0.9

O-22 Ichigo Minami Ikebukuro Building

Tokyo Metro Area

1,460

0.7

O-23 Ichigo Nakano North Building

Tokyo Metro Area

764

0.4

O-24 Ichigo Eitai Building

Tokyo Metro Area

1,490

0.7

O-26 Ichigo Ikejiri Building

Tokyo Metro Area

2,030

1.0

O-27 Ichigo Nishi Ikebukuro Building

Tokyo Metro Area

639

O-28 Ichigo Nishi Gotanda Building

Central Tokyo

765

0.3
0.4

O-29 Ichigo Kichijoji Building

2,160

1.1

4,705

2.3

6,710

3.3

O-38 Ichigo Toyamaeki Nishi Building

Tokyo Metro Area
Four Major RegionalCities
Four Major RegionalCities
Other Regional Cities

1,645

0.8

O-39 Ichigo Mirai Shinkin Building

Other Regional Cities

1,158

0.6

O-42 Ichigo Takamatsu Building

Other Regional Cities

3,010

1.5

O-46 Ichigo Kanda Nishikicho Building

Central Tokyo

2,130

1.0

O-47 Ichigo Akihabara North Building

Central Tokyo
Four Major RegionalCities
Central Tokyo5,500

2.7

1,940

0.9

2,210

1.1

No.

O-34 Ichigo Sakae Building
O-37 Ichigo Marunouchi Building

O-48 Ichigo Sakaisuji Honmachi Building
O-49 Ichigo Kanda Ogawamachi Building
7Asset Name

Area1Acquisition
Price2(JPY million)% ofPortfolio3

O-50 Ichigo Hatchobori Building

Central Tokyo

1,905

0.9

O-51 Ebisu Green GlassCentral Tokyo

5,900

2.9

O-52 Ichigo Omori Building

Central Tokyo

3,850

1.9

O-53 Ichigo Takadanobaba Building

Central Tokyo

1,580

0.8

O-54 Ichigo Omiya Building

Tokyo Metro Area

3,430

1.7

O-55 Ichigo Sagamihara Building

Tokyo Metro Area

1,174

0.6

O-56 Ichigo Ofuna Building

Tokyo Metro Area

2,000

1.0

O-57 Ichigo Sendai East Building

Other Regional Cities

1,840

0.9

O-58 Ichigo Kumamoto Building

Other Regional Cities

1,450

0.7

O-59 Ichigo Jingumae Building

Central Tokyo

7,200

3.5

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

3,650

1.8

O-61 Ichigo Hiroo Building

Central Tokyo

3,960

1.9

O-62 Ichigo Sasazuka Building

Central Tokyo

4,780

2.3

O-63 Ichigo Nihonbashi East Building

Central Tokyo

4,700

2.3

O-64 Ichigo Sakurabashi Building

Central Tokyo

2,500

1.2

O-65 Ichigo Shinkawa Building

Central Tokyo

2,360

1.1

O-66 Ichigo Kudan Building

Central Tokyo

3,190

1.6

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

3,660

1.8

O-68 Axior Mita

Central Tokyo

1,800

0.9

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metro Area

4,570

2.2

O-70 Koriyama Big-i (Office Section)

Other Regional Cities

1,660

0.8

O-71 Ichigo Kawasaki Building

Tokyo Metro Area

1,750

0.9

O-72 Ichigo Shibuya East Building

Central Tokyo

1,350

0.7

O-73 Ichigo Ningyocho Building

1,450

0.7

2,1901.1

1,380

0.7

2,000

1.0

O-77 Ichigo Ikenohata Building

Central Tokyo
Four Major Regional
CitiesFour Major RegionalCities
Four Major RegionalCities
Tokyo Metro Area

5,130

2.5

O-78 Ichigo Ikebukuro East Building

Tokyo Metro Area

3,010

1.5

O-79 Ichigo Motoazabu Building

Central Tokyo

1,890

0.9

O-80 Ichigo Otsuka Building

Tokyo Metro Area
Four Major Regional
CitiesFour Major Regional
Cities

2,740

1.3

3,420

1.7

2,340

1.1

No.

O-74 Ichigo Nishi Honmachi Building
O-75 Ichigo Hakata Building
O-76 Ichigo Nishiki First Building

O-81 Ichigo Nagoya Building
O-82 Ichigo Fushimi Building

8No.

Area1Asset Name

Acquisition
Price2(JPY million)% ofPortfolio3

1,330

0.6

1,040

0.5

3,500

1.7

O-85 Ichigo Shibuya Udagawacho Building

Four Major Regional
CitiesFour Major Regional
CitiesCentral Tokyo

O-86 Win Gotanda Building

Central Tokyo

3,100

1.5

O-87 Ichigo Hongo Building

Tokyo Metro Area

2,300

1.1

O-88 Oimachi Center Building

Central Tokyo

1,680

0.8

O-89 Win Gotanda Building 2

Central Tokyo

3,300

1.6

O-90 MIF Building

Central Tokyo
Four Major Regional
CitiesTokyo Metro Area2,200

1.1

1,900

0.9

2,780

1.4

3,315

1.6

2,250

1.1

O-95 Ichigo Nakameguro Building

Central Tokyo
Four Major RegionalCities
Tokyo Metro Area

1,495

0.7

O-96 Ichigo Tachikawa Building

Tokyo Metro Area

3,830

1.9

Subtotal - Office (81 Assets)

198,827

96.8

O-83 Ichigo Nishiki Building
O-84 Ichigo Minami Morimachi Building

O-91 Ichigo Uchi Honmachi Building
O-92 Ichigo Minami Otsuka Building
O-93 Ichigo Nogizaka Building
O-94 Ichigo Hakata East Building

Z-09

Konami Sports Club Izumi Fuchu

Other Regional Cities

1,210

0.6Z-10

Ichigo Shibuya Bunkamura Dori Building

Central Tokyo

2,400

1.2

Z-11

Twicere Yokohama Isogo (Retail Section)

Tokyo Metro Area

1,6200.8

Z-14

Ichigo Kamata Building

Tokyo Metro Area

1,4000.7

Subtotal - Other (4 Assets)

6,630

3.2

Total (86 Assets)

205,457

100.0

50

–

TK Equity Investment GK Kizuna1 TK Equity Interest
1

Central Tokyo refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards. Tokyo Metro
Area refers to Tokyo (excluding the six wards above), Kanagawa, Chiba, and Saitama Prefectures. Four
Major Regional Cities refers to Osaka, Nagoya, Fukuoka, and Sapporo.
2% of Portfolio is based upon acquisition price.

9