[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
November 27, 2020
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, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Sale of Domestic Trust Beneficiary Interests
Invincible Investment Corporation (“INV”) is pleased to announce the decision to sell trust beneficiary interests(the “Sale”) in six domestic residential properties (individually the “Asset to be Sold,” or collectively the “Assets
to be Sold”) as decided today by Consonant Investment Management Co., Ltd. (“CIM”), the asset manager of
INV.
1.

Overview of Sale(in million yen)
Property
Number
A27
A53
A76
A100
A54
A71

Property Name
Nisshin Palacestage
Higashi-Nagasaki
Nishiwaseda Cresent
MansionBook
Value1

1,882
1,588

City Court Kitaichijo

1,690

Total

ExpectedGain onSale2,4

7,869

1,513

Transferee

AnticipatedSale Date

Undisclosed4

December 18, 2020

-

-

1,046

Neo Prominence

Lexington Square
Akebonobashi
Lexington Square
Daitabashi

Anticipated
Sale
Price2,3

1,287
3,270

1,095

11,139

2,608

820
8,315

(Note 1) As of June 30, 2020.
(Note 2) The Sale is a transaction under two purchase and sale agreements with different transferees, in which the six propertiesof the Assets to be Sold will be divided into groups of four properties (A27, A53, A76 and A100) and two properties (A54and A71). The anticipated sale price and expected gain on sale show the total amount of each of the abovementioned
four properties and two properties. The anticipated sale price of individual properties are not disclosed as theThis English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)2.

transferees’ consent has not been obtained for disclosure. Accordingly, the expected gain on sale of individual
properties are not disclosed, either.
Anticipated sale prices show the total sale prices set forth in the purchase and sale agreements for the trust beneficiaryinterests of each of the four properties and two properties, and do not include adjustments for property taxes or city
planning taxes, or national or local consumption taxes. The same shall apply hereinafter.
Expected gain on sale is calculated by deducting the estimated transfer related cost and is an estimate as of today foreach of the four properties and two properties, and is subject to change upon finalization of the financial results.
The names of the transferees are not disclosed, as the transferees’ consent has not been obtained for disclosure. For
an overview of the transferee, please refer to “4. Overview of Transferee” as described below.
The broker in connection with the Sale is not a related party of INV/CIM.
Of the Assets to be Sold, the trust beneficiary interest of Nisshin Palacestage Higashi-Nagasaki was integrated in asingle account with other trust accounts when INV procured funds through debt financing backed by trust assets in July
2011. Therefore, for the purpose of selling the trust beneficiary interests of the property by itself, INV has implemented
the procedures for the trust split effective on November 17, 2020 and recorded certain expenses. For details on thedebt financing backed by trust assets and the integration of trust accounts, please refer to the press release “Noticeconcerning Fund Procurement through Debt Financing Backed by Trust Assets and Repayment of Borrowings andChange in Trustee of Trust Assets” dated July 15, 2011.
Amounts are rounded down to the nearest million yen. The same shall apply hereinafter.

Reasons for Sale
The main reason for the Sale is for INV to maintain positive earnings for the fiscal period ending December
2020 (from July 1, 2020 to December 31, 2020) while at the same time maintaining good long-term
dividend prospects.

INV selected the Assets to be Sold by comprehensively considering portfolio strategy,

trends in the real estate market and characteristics of them.

The total anticipated sale price of the Assets

to be Sold exceeds the total book value (Note 1) by 33.9%, and INV will record a gain on sale of JPY 2.6
billion (Note 2) for the fiscal period ending December 2020.
yield (Note 3) of 4.9%.

The Assets to be Sold have an actual NOI

In addition, INV will use a large portion of the sale proceeds to pay down debt

and maintain an appropriate LTV ratio.
(Note 1) As of June 30, 2020.
(Note 2) The gain on sale is calculated by deducting the estimated transfer related cost and is an estimate as of today, and issubject to change upon finalization of the financial results.
(Note 3) “Average actual NOI yield” is calculated by the following formula;(the sum of actual NOI of the Assets to be Sold) ÷ (the sum of anticipated sale price for the Assets to be Sold)
The sum of actual NOI of the Assets to be Sold is the total amount of the actual NOI from July 1, 2019 to June 30,
2020.

3.

Details of the Assets to be Sold
Details of the Assets to be Sold and the appraisal reports are as follows.
Unless otherwise noted, information on the date is as of June 30, 2020 and total rental revenue indicatesthat for the fiscal period ended June 30, 2020.
[Details](1) A27: Nisshin Palacestage Higashi-Nagasaki
Type of Specified Assets

Trust Beneficiary Right

Property Right

Land: Ownership / Building: Ownership

Location

5-4-1 Nagasaki, Toshima-ku, Tokyo

Purpose of Use

Condominium, Shop, Parking lot

This English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

2

Appraisal Value
Valuation)

(Date

of

Appraisal Firm

JPY 1,360 million (as of November 1, 2020)
Assets Research and Development Inc.

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 47,466 thousand

Tenant Leasehold
and security deposit

JPY 9,526 thousand

Total Leasable area (m2)2

Total Leased area (m )Occupancy Trend

2,681.94
2,605.38
As of the end ofJun. 2018

As of the end of
Dec. 2018

As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

100.0％

100.0％

91.0％

96.6％

97.1％

(2) A53: Nishiwaseda Cresent Mansion
Type of Specified Assets

Trust Beneficiary Right

Property Right

Land: Ownership / Building: Ownership

Location

3-18-9 Nishi-Waseda, Shinjuku-ku, Tokyo

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 2,810 million (as of November 1, 2020)
JLL Morii Valuation & Advisory K.K.

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 75,734 thousand

Tenant Leasehold
and security deposit

JPY 11,481 thousand

Total Leasable area (m2)

4,310.77

Total Leased area (m2)

4,310.77
As of the end ofJun. 2018

As of the end of
Dec. 2018

As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

98.4％

98.4％

95.7％

100.0％

100.0％

Occupancy Trend(3) A76: Neo ProminenceType of Specified Assets

Trust Beneficiary Right

Property Right

Land: Ownership / Building: Ownership

Location

3-21-5 Shimo, Kita-ku, Tokyo

Purpose of Use
Appraisal Value
Valuation)

Condominium, Shop, Parking lot, Residence
(Date

of

Appraisal Firm

JPY 2,300 million (as of November 1, 2020)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 68,847 thousand

Tenant Leasehold
and security deposit

JPY 17,448 thousand

Total Leasable area (m2)

3,574.70

Total Leased area (m2)

3,394.58
As of the end ofJun. 2018

As of the end of
Dec. 2018

As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

98.3％

98.4％

100.0％

98.4％

95.0％

Occupancy Trend

This English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3(4) A100: City Court KitaichijoType of Specified Assets

Trust Beneficiary Right

Property Right

Land: Ownership / Building: Ownership

Location

1-6-3 Kita 1-jo Higashi, Chuo-ku Sapporo-shi, Hokkaido

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 2,160 million (as of November 1, 2020)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 66,469 thousand

Tenant Leasehold
and security deposit

JPY 10,912 thousand

Total Leasable area (m2)5,230.18

Total Leased area (m2)

4,858.40
As of the end ofJun. 2018

As of the end of
Dec. 2018

As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

98.4％

97.1％

94.9％

95.8％

92.9％

Occupancy Trend(5) A54: Lexington Square Akebonobashi
Type of Specified Assets

Trust Beneficiary Right

Property Right

Land: Ownership / Building: Ownership

Location

3-8 Yochomachi, Shinjuku-ku, Tokyo

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 1,990 million (as of November 1, 2020)
Tanizawa Sogo Appraisal Co., Ltd.

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 51,742 thousand

Tenant Leasehold
and security deposit

JPY 6,163 thousand

Total Leasable area (m2)2

Total Leased area (m )Occupancy Trend

1,987.88
1,895.88
As of the end ofJun. 2018

As of the end of
Dec. 2018

As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

99.0％

95.4％

95.6％

96.6％

95.4％

(6) A71: Lexington Square Daitabashi
Type of Specified Assets

Trust Beneficiary Right

Property Right

Land: Ownership / Building: Ownership

Location

1-33-18 Izumi,Suginami-ku, Tokyo

Purpose of Use
Appraisal Value
Valuation)
Appraisal Firm

Condominium
(Date

of

JPY 1,260 million (as of November 1, 2020)
Tanizawa Sogo Appraisal Co., Ltd.

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue
Tenant Leasehold
and security deposit

JPY 34,137 thousand
JPY 4,006 thousand
2

Total Leasable area (m )1,430.64

Total Leased area (m2)

1,330.08

This English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

4Occupancy Trend

As of the end ofJun. 2018

As of the end of
Dec. 2018

As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

97.9％

92.2％

95.8％

86.6％

93.0％

[Summary of Real Estate Appraisal Report](1)

A27: Nisshin Palacestage Higashi-Nagasaki

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 1,360 million

Appraisal Firm

Assets Research and Development Inc.

Date of Valuation

November 1, 2020
Item

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

Contents

Overview(JPY thousand)
1,360,000
1,420,000(I) Operating Revenue [(a)-(b)]93,789(a) Total Potential Revenue

98,098

Based on medium- to long-term potential revenue of current leasing
conditions and market level(b) Vacant Room Losses, etc.

4,309

Based on occupancy rate and supply and demand trends of comparable
assets and historical data from previous years of subject real estate(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]20,538
Based on maintenance and management costs of historical data fromthe previous year and comparable assets(c) Maintenance and Management Costs

3,430(d) Utility Costs

4,117(e) Repair Costs

2,744(f) Property Management Fee

1,671

Based on historical data, contract and market(g) Tenant Solicitation Expenses

3,209

Based on historical data from previous years and terms of rental ofcomparable assets(h) Taxes and Public Dues

5,166

Based on the documents relating to taxes and public dues

197

Based on insurance premiums as well as comparable assets(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains(l) Capital Improvements and Expenses

073,25007,301(IV) Net Income[(III)+(k)-(l)-(m)]65,949

Capitalization Yield

4.65％(2) DCF Method

0.7% of replacement cost based on the engineering report

Based on local standard yield which is adjusted by adding andsubtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields

1,340,000

Discount Rate

4.45％

Final Capitalization Yield

4.95％

2. Estimated Price using Cost Method

Based on utility costs of historical data from the previous year andcomparable assets
Based on repair costs level of historical data and comparable assets andrepair costs etc. in the engineering report

Based on comparable assets’ investment yield with consideration of thecharacteristics of the property
Based on comparable assets’ transaction yield with consideration of
future trend in investment yield, risks as an investment target, general
forecasts of future economic growth rates, trends in real estate prices
and rents, etc.

982,000

Land Ratio

73.8％

Building Ratio

26.2％

This English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

5Other Points to be Noted for Appraisal by Appraisal Firm

(2)

Judged that income approach value truly replicates the price formation process from an
income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a reference

A53: Nishiwaseda Cresent Mansion

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 2,810 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.

Date of Valuation

November 1, 2020
Item

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

Contents

Overview(JPY thousand)
2,810,000
2,860,000(I) Operating Revenue [(a)-(b)]143,606(a) Total Potential Revenue

153,102

Based on medium- to long-term potential revenue of current leasing
conditions and market level(b) Vacant Room Losses, etc.

9,496

Based on occupancy rate and supply and demand trends of comparable
assets and historical data from previous years of subject real estate(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]27,210
Based on maintenance and management costs of historical data fromthe previous year and comparable assets
Based on utility costs of historical data from the previous year andcomparable assets
Based on repair costs level of historical data and comparable assets andrepair costs etc. in the engineering report(c) Maintenance and Management Costs

5,046(d) Utility Costs

1,565(e) Repair Costs

2,104(f) Property Management Fee

2,779

Based on historical data, contract and market(g) Tenant Solicitation Expenses

4,579

Based on historical data from previous years and terms of rental ofcomparable assets(h) Taxes and Public Dues

6,362

Based on the documents relating to taxes and public dues

235

Based on insurance premiums as well as comparable assets(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains(l) Capital Improvements and Expenses(IV) Net Income[(III)+(k)-(l)-(m)]Capitalization Yield(2) DCF Method

4,540
116,396
109
4,910

3.9％

Based on local standard yield which is adjusted by adding andsubtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields

2,760,000
3.7％

Final Capitalization Yield

4.1％

Based on comparable assets’ investment yield with consideration of thecharacteristics of the property
Based on comparable assets’ transaction yield with consideration of
future trend in investment yield, risks as an investment target, general
forecasts of future economic growth rates, trends in real estate prices
and rents, etc.

2,210,000

Land Ratio

89.7％

Building Ratio

10.3％

Other Points to be Noted for Appraisal by Appraisal Firm

70% of estimate in the engineering report

111,595

Discount Rate

2. Estimated Price using Cost Method

Assume investment return as 1.0%

Judged that income approach value truly replicates the price formation process from an
income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a referenceThis English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

6

(3)

A76: Neo Prominence

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 2,270 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2020
Item

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

Contents

2,270,000
2,300,000(I) Operating Revenue [(a)-(b)]134,294(a) Total Potential Revenue

142,364(b) Vacant Room Losses, etc.

8,070(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Overview(JPY thousand)Based on medium- to long-term potential revenue of current leasing
conditions and market level
Based on occupancy rate and supply and demand trends of comparable
assets and historical data from previous years of subject real estate

31,136
Based on maintenance and management costs of historical data fromthe previous year and comparable assets
Based on utility costs of historical data from the previous year andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(c) Maintenance and Management Costs

4,000(d) Utility Costs

9,300(e) Repair Costs

2,998(f) Property Management Fee

2,386

Based on historical data, contract and market(g) Tenant Solicitation Expenses

4,755

Based on historical data from previous years and terms of rental ofcomparable assets(h) Taxes and Public Dues

7,231

Based on the documents relating to taxes and public dues

236

Based on insurance premiums as well as comparable assets(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains(l) Capital Improvements and Expenses(IV) Net Income[(III)+(k)-(l)-(m)]Capitalization Yield(2) DCF Method
Discount Rate

Final Capitalization Yield

2. Estimated Price using Cost Method

230
103,158137
4,410

Based on comparable assets and estimate in the engineering report

98,885

4.3％

Based on local standard yield which is adjusted by adding andsubtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields

2,230,000
4.1％

Based on comparable assets’ investment yield with consideration of thecharacteristics of the property

4.5％

Based on comparable assets’ transaction yield with consideration of
future trend in investment yield, risks as an investment target, general
forecasts of future economic growth rates, trends in real estate prices
and rents, etc.

1,850,000

Land Ratio

80.4％

Building Ratio

19.6％

Other Points to be Noted for Appraisal by Appraisal Firm

Assume investment return as 1.0%

Judged that income approach value truly replicates the price formation process from an
income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a referenceThis English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

7

(4)

A100: City Court Kitaichijo

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 2,160 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2020
Item

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

Contents

Overview(JPY thousand)
2,160,000
2,180,000(I) Operating Revenue [(a)-(b)]134,137(a) Total Potential Revenue

139,704

Based on medium- to long-term potential revenue of current leasing
conditions and market level(b) Vacant Room Losses, etc.

5,567

Based on occupancy rate and supply and demand trends of comparable
assets and historical data from previous years of subject real estate(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]28,574(c) Maintenance and Management Costs

5,740

Based on maintenance and management costs of historical data fromthe previous year and comparable assets(d) Utility Costs

3,600

Based on utility costs of historical data from the previous year andcomparable assets(e) Repair Costs

3,319

Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

1,980

Based on historical data, contract and market(g) Tenant Solicitation Expenses

3,309

Based on historical data from previous years and terms of rental ofcomparable assets(h) Taxes and Public Dues

10,347

Based on the documents relating to taxes and public dues

279

Based on insurance premiums as well as comparable assets(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains(l) Capital Improvements and Expenses(IV) Net Income[(III)+(k)-(l)-(m)]Capitalization Yield(2) DCF Method
Discount Rate

Final Capitalization Yield

2. Estimated Price using Cost Method

0105,563110
3,082

Based on comparable assets and estimate in the engineering report

102,591

4.7％

Based on local standard yield which is adjusted by adding andsubtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields

2,130,000
4.5％

4.9％

Based on comparable assets’ investment yield with consideration of thecharacteristics of the property
Based on comparable assets’ transaction yield with consideration of
future trend in investment yield, risks as an investment target, general
forecasts of future economic growth rates, trends in real estate prices
and rents, etc.

2,000,000

Land Ratio

40.5％

Building Ratio

59.5％

Other Points to be Noted for Appraisal by Appraisal Firm

Assume investment return as 1.0%

Judged that income approach value truly replicates the price formation process from an
income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a referenceThis English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

8

(5)

A54: Lexington Square Akebonobashi

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 1,990 million

Appraisal Firm

Tanizawa Sogo Appraisal Co., Ltd.

Date of Valuation

November 1, 2020
Item

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

Contents

Overview(JPY thousand)
1,990,000
2,020,000(I) Operating Revenue [(a)-(b)]100,448(a) Total Potential Revenue

105,535

Based on medium- to long-term potential revenue of current leasing
conditions and market level(b) Vacant Room Losses, etc.

5,087

Based on occupancy rate and supply and demand trends of comparable
assets and historical data from previous years of subject real estate(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

18,272
2,313

Based on maintenance and management costs of historical data fromthe previous year and comparable assets(d) Utility Costs

930

Based on utility costs of historical data from the previous year andcomparable assets(e) Repair Costs

3,053

Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

1,925

Based on historical data, contract and market(g) Tenant Solicitation Expenses

2,889

Based on historical data from previous years and terms of rental ofcomparable assets(h) Taxes and Public Dues

4,556

Based on the documents relating to taxes and public dues

92

Based on insurance premiums as well as comparable assets(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains(l) Capital Improvements and Expenses(IV) Net Income[(III)+(k)-(l)-(m)]Capitalization Yield(2) DCF Method

2,511
82,175
73
3,410

3.9％

Based on local standard yield which is adjusted by adding andsubtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields

1,970,000
4.0％

Final Capitalization Yield

4.1％

Based on comparable assets’ investment yield with consideration of thecharacteristics of the property
Based on comparable assets’ transaction yield with consideration of
future trend in investment yield, risks as an investment target, general
forecasts of future economic growth rates, trends in real estate prices
and rents, etc.

2,000,000

Land Ratio

72.7％

Building Ratio

27.3％

Other Points to be Noted for Appraisal by Appraisal Firm

Based on comparable assets and estimate in the engineering report

78,838Discount Rate

2. Estimated Price using Cost Method

Assume investment return as 1.0%

Judged that income approach value truly replicates the price formation process from an
income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a referenceThis English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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(6)

A71: Lexington Square Daitabashi

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 1,260 million

Appraisal Firm

Tanizawa Sogo Appraisal Co., Ltd.

Date of Valuation

November 1, 2020
Item

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

Contents

Overview(JPY thousand)
1,260,000
1,290,000(I) Operating Revenue [(a)-(b)]64,983(a) Total Potential Revenue

68,500

Based on medium- to long-term potential revenue of current leasing
conditions and market level(b) Vacant Room Losses, etc.

3,516

Based on occupancy rate and supply and demand trends of comparable
assets and historical data from previous years of subject real estate(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

12,772
1,768

Based on maintenance and management costs of historical data fromthe previous year and comparable assets(d) Utility Costs

978

Based on utility costs of historical data from the previous year andcomparable assets(e) Repair Costs

2,106

Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

1,265

Based on historical data, contract and market(g) Tenant Solicitation Expenses

1,932

Based on historical data from previous years and terms of rental ofcomparable assets(h) Taxes and Public Dues

3,142

Based on the documents relating to taxes and public dues

84

Based on insurance premiums as well as comparable assets(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains(l) Capital Improvements and Expenses(IV) Net Income[(III)+(k)-(l)-(m)]Capitalization Yield(2) DCF Method

1,494
52,211
48
2,050

3.9％

Based on local standard yield which is adjusted by adding andsubtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields

1,250,000
4.0％

Final Capitalization Yield

4.1％

Based on comparable assets’ investment yield with consideration of thecharacteristics of the property
Based on comparable assets’ transaction yield with consideration of
future trend in investment yield, risks as an investment target, general
forecasts of future economic growth rates, trends in real estate prices
and rents, etc.

1,220,000

Land Ratio

64.8％

Building Ratio

35.2％

Other Points to be Noted for Appraisal by Appraisal Firm

Based on comparable assets and estimate in the engineering report

50,210Discount Rate

2. Estimated Price using Cost Method

Assume investment return as 1.0%

Judged that income approach value truly replicates the price formation process from an
income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a referenceThis English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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4.

Overview of Transferee
Because consent for disclosure has not been obtained from the transferees of the Assets to be Sold, thenames of the transferees are not disclosed.
Kaisha)The transferees are two Japanese TMK (Tokutei Mokuteki(“TMKs”) which entered into purchase and sale agreements with INV, and managed by the sameasset management company.

Moreover, the buyer's status may be transferred to one of the TMKs oranother TMK managed by the same asset management company by the anticipated sale date, dependingon the intention of the transferees.
As of today, there are no capital, personnel, or transactional relationships that should be noted between
INV/CIM and the transferees.

Further, the transferees are not related parties of INV or CIM, and as oftoday, the transferees are not interested persons, etc. as provided in the Investment Trust Act or sponsorrelated persons under the voluntary rules specified by CIM as countermeasures against conflicts ofinterests in the management of INV’s investments.
5.

Transactions with Interested Persons etc.
Not applicable.

6.

Schedules
Sale decision date:
Agreement execution date:
Anticipated sales date:
Anticipated sale proceeds payment method:

7.

November 27, 2020
December 18, 2020
Lump-sum payment on settlement

Use of Sale Proceeds
The majority of the proceeds of the Sale will be appropriated for the repayment of existing borrowings.

8.

Future Outlook
By reporting a gain on sale of JPY 2.6 billion from the Sale, INV is expected to secure a positive net income
for the fiscal period ending December 2020 as of today.
INV’s forecasts for financial results and distribution for the fiscal period ending December 2020 (from July
1, 2020 to December 31, 2020) still remain as to be announced since it remains difficult to predict the
future spread of COVID-19 and its impact on hotel industry and operators.

As of today, INV is havingtalks with its main tenant, MyStays Hotel Management Co., Ltd. and its affiliates, pertaining to the rent
conditions for the period from October 1, 2020 to December 31, 2020 for domestic hotels operated by thetenants.

Therefore, the forecast of financial results for the fiscal period ending December 2020 (from July

1, 2020 to December 31, 2020) will be announced in the middle of December 2020 once it is finalized.

Website of INV: https://www.invincible-inv.co.jp/en/
This English language notice is a translation of the Japanese-language notice released on November 27, 2020 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

11