Translation of Japanese Original

May 31, 2022

To All Concerned Parties

REIT Issuer:
Kenedix Office Investment Corporation
Hikaru Teramoto, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Masahiko Tajima, President & CEO
Inquiries:
Hiroaki Momoi
Head of Strategic Planning
Office REIT Department
TEL: +81-3-5157-6010

Notice Concerning Sale of Property (KDX Kiba Building)Kenedix Office Investment Corporation (“the Investment Corporation”) announced today, that Kenedix Real
Estate Fund Management, Inc. (“the Asset Management Company”), the asset management company for theInvestment Corporation, decided to sell the following property (“the Sale”).
1. Outline of the Sale
(1)
(2)
(3)
(4)
(5)

Property Name
: KDX Kiba Building (“the Property”)
Type of Property to be Sold
: Trust beneficiary interest in real estate
Anticipated Sale Price (Note 1) : 1,650 million yen
Assumed Book Value (Note 2) : 1,350 million yen
Difference between AnticipatedSale Price and Assumed Book : 299 million yen
Value: (3)-(4) (Note 3)(6) Buyer: Not disclosed (non-related party)(7) Date of Contract: May 31, 2022
(8) Scheduled Date of Sale
: July 29, 2022
(9) Use of Proceeds: Cash on hand(10) Settlement Method: Payment in full on settlement
Note 1: Transfer costs, adjustment of property tax and city-planning tax, consumption tax, etc. are excluded. (Amounts aretruncated to the nearest unit. The same applies below.)
Note 2: Assumed book value is as of scheduled date of sale.
Note 3: Figures are referential amount, calculated as a difference between anticipated sale price and assumed book value, anddifferent from gain or loss on sale.

12. Reason for the Sale
The Investment Corporation seeks to enhance the quality of the portfolio by arranging reshuffles and sales ofproperties before potential deterioration in asset profitability. Moreover, a comprehensive consideration of thepresent and future portfolio structural objectives, the real estate market trends, and the characteristic assessment ofproperties within the portfolio are conducted, while engaging in acquisitions of properties according to management
strategies.
The Property is an office building which is approximately 29 years in age and is relatively small in comparison toother portfolio properties.
It is located one street in from Eitai Dori and approximately 2 minutes on foot from Kiba Station on the Tokyo
Metro Tozai Line, offering convenient access to Otemachi, Nihonbashi and other areas in Central Tokyo. The
Investment Corporation acquired the Property based on the assessment that stable office building demand could be
expected given favorable rental rates in comparison with the central business districts. However, partly because theaverage rental rate of the Property tends to fall in recent years, the Property is considered to have a low cap rate incomparison to other portfolio properties and to be an asset with an unrealized loss. The Investment Corporation
decided on the Sale because the anticipated sale price agreed with the buyer is far higher than the appraisal value,
the unrealized loss will be eliminated, and a gain on sale of real estate is expected to be secured and after
comprehensive consideration of various other factors such as deterioration in cash flow as a result of futurevacancies, and the risk of further decline in profitability due to an increase in repair expenses.
Through the Sale, the portfolio of the Investment Corporation will stand at 97 properties (total: 453.6 billion yen).
The investment proportions of office buildings in the portfolio will be 99.3%, and the investment proportions of theTokyo Metropolitan Area (Note 1) in the portfolio will be 80.4% (As of July 29, 2022. Based on (anticipated)acquisition price (Note 2)).
Note1: Tokyo Metropolitan Area refers to major cities in Tokyo Metropolitan, Kanagawa, Saitama, and Chiba Prefectures.
Note2: The investment proportions reflect the acquisition of Edobashi Building scheduled for June 30, 2022, which has
already been disclosed in “Notice Concerning Acquisition of Properties (Edobashi Building・Sendai Honcho
Building)” dated April 26, 2022.

3. Details of the Property to be Sold
Property NameKDX Kiba Building

Type of Specified Asset

Trust beneficiary interest in real estate

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Location (Address)

5-12-8 Kiba, Koto-ku, Tokyo

Usage

Office and Parking

Type of Structure

Flat-roofed, Steel-framed reinforced concrete structure;
5 aboveground floors

Site Area
Type ofOwnershipLand

922.77 ㎡

Building (Total Floor Area)

2,820.64 ㎡

LandProprietary ownership

Building

Proprietary ownership

Completion Date

October 27, 1992

Acquisition Date

June 20, 2006

Acquisition Price

1,580 million yen

Appraisal

Appraisal Value

1,150 million yen

Base Date for Appraisal

April 30, 2022

Appraiser

Japan Real Estate Institute2

Details
Details of Tenant

Please refer to “9. Summary of Appraisal Report” below.
As of May 31, 2022

Security and Guarantee Deposit

63 million yen

Number of End Tenants

5

Total Leasable Area

2,455.49 ㎡

Total Leased Area

2,455.49 ㎡

Occupancy Rate

100.0％

Operating Results
Rent Revenue
Net Operating Income
Rental Operating Income (Net Operating
Income after Depreciation)

The total of the actual amounts for fiscal periods ended April 30,
2021 and October 31, 2021
90 million yen
57 million yen
32 million yen

4. Buyer’s Profile
The buyer is not disclosed because the consent of the buyer has not been obtained regarding the company name andother information. In addition, there is no special capital relationship, no special personnel relationship or no special
business relationship between the Investment Corporation or the Asset Management Company and the buyer.
Furthermore, the buyer is neither a related party, etc. as defined in the Investment Trusts and Investment
Corporations Law (“the Investment Trust Law”) nor a related party as defined in the Office REIT Department
Related-party Transaction Rules of the Asset Management Company.
5. Details of Brokerage
The brokerage firm for the Property is not a related party, etc. as defined in the Investment Trust Law and not a
related party as defined in the Office REIT Department Related-party Transaction Rules of the Asset Management
Company.
6. Related-party Transaction
The sale of the Property does not constitute the related-party transaction.
7. Date of the Sale
Determination Date of the Sale
Transaction Agreement Execution Date

May 31, 2022

Settlement and Sale Date

July 29, 2022 (Scheduled)

Note: The trust beneficiary interest transaction agreement concluded with the buyer of the Property (“the Transaction
Agreement”) falls under the category of forward commitment, etc. by an investment corporation, as stipulated in theComprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. provided by Financial
Services Agency. If the Investment Corporation violates any of the provisions of the Transaction Agreement and thenthe Transaction Agreement is cancelled for the reason that purposes of the Transaction Agreement cannot be fulfilled
due to such violation, the Investment Corporation shall pay a certain ratio of the transaction price from which
consumption taxes, etc. are excluded as a penalty fee. Such penalty fee is set at 10% of the anticipated sale price.

8. Outlook
The difference between the anticipated sale price in the Sale and the assumed book value is 299 million yen, and eventaking other expenses related to the Sale into consideration, a gain on the sale of real estate is expected to occur.
However, the Investment Corporation plans to announce details of the impact on distributions and internal reserves, etc.
from the fiscal period ending October 31, 2022 (from May 1, 2022 to October 31, 2022) in “Financial Report for The
Fiscal Period Ended April 30, 2022 (REIT)” dated June 14, 2022.
3

9. Summary of Appraisal Report
Property NameKDX Kiba Building

Appraisal Value
Appraiser
Appraisal Date

1,150,000,000 yen

Japan Real Estate Institute
April 30, 2022

Unit: Yen
Item

Content

Basis

Income Capitalization Approach Value

1,150,000,000

Estimate an amount by treating equally the Value Calculated
Using the Direct Capitalization Method and the Value
Calculated Using the Discounted Cash Flow Method

Value Calculated Using the
Direct Capitalization Method(1) Gross Operating Revenue

1,150,000,000

Assess an amount by using the cap rate based on medium tolong-term stable net cash flow

93,879,000

Maximum Gross Operating
Revenue

97,942,000

Shortfall Attributed to Vacancies

4,063,000(2) Operating Expenses

31,987,000

Maintenance Expenses

6,900,000

Utility Expenses

8,100,000

Repair Expenses

4,442,000

Property Management Fee

1,711,000

Tenant Recruitment Expenses, etc.
Taxes and Dues

704,000
9,921,000

Damage Insurance Fee

129,000

Other Expenses

80,000(3) Net Operating Income(NOI= (1)-(2))(4) Gain on Guarantee Deposit
Investment

61,892,000(5) Capital Expenditure

10,600,000(6) Net Cash Flow
(NCF=(3)+(4)-(5))

51,905,000(7) Capitalization Rate

4.5%

Value Calculated Using the
Discounted Cash Flow Method

613,000

Assess an amount based on the rent revenue, common area
charge revenue, parking revenue and other revenue, etc. thatare believed to remain stable over the medium and long term
Assess an amount based on the premise of an occupancy ratiothat remains stable over the medium and long term
Assess an amount in consideration of the actual amounts inthe prior years, maintenance expenses of similar properties andunique characteristics of the property
Assess an amount in consideration of the actual amounts in theprior years, utility expenses of similar properties, occupancy
rate of leased area, etc.
Assess an amount in consideration of the actual amounts in theprior years, future administrative operation plan, expenses atsimilar properties, annual average repair, maintenance andrenewal expenses, etc. in the engineering report
Assess an amount by considering compensation rates, etc.
based on terms of contract and at similar properties
Recognize an annual average amount assessed based on theestimated tenant turnover period
Recognize an amount based on the fiscal 2021 tax statement,
etc., taking into account the contents of burden adjustment
measures, etc.
Assess an amount in consideration of the estimated insurance
premium rate and insurance premiums at similar properties,
etc.
Communication equipment charges to be recognized as otherexpenses
Assess income from investments by using an investment returnof 1.0%Assess an amount by taking into account the level of capital
expenditures at similar properties, the age of the property, andthe average annual repair, maintenance and renewal expenses
in the engineering report, etc, assuming that an equal amount is
added to a reserve in each fiscal period
Assess an amount by comprehensively taking into accountcomparison with transaction cases, etc. at similar properties,
the property’s location, the characteristics of the building, therights, the terms of contract, etc.

1,140,000,000

Discount Rate

4.2%

Assess an amount by comprehensively taking into account theproperty’s unique characteristics, by reference to investment
yields, etc. of similar properties

Terminal Capitalization Rate

4.5%

Assess an amount by taking into account future uncertainty,
liquidity, etc. based on capitalization rate

Value Calculated Using the Cost Method
Land
Building
The Appraiser’s Points to Consider upon
Appraisal Other Than the Above

1,150,000,000
81.9%
18.1%
As indicated above, the Appraiser determined the appraisal value whose expectedvalue calculated using the cost method and income capitalization approach value
matched.

4

Attached Material
Reference Material：Property Portfolio after the Sale

The Investment Corporation’s website: https://www.kdo-reit.com/en/
This notice is the English translation of the Japanese announcement on our website released on May 31, 2022.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

5

Reference Material
Property Portfolio after the Sale
As of July 29, 2022
Type of Use

Area

Office Buildings(Mid-size)(Scheduled) Date of
Acquisition (Note 2)

Location

KDX Hamamatsucho Place

Minato-ku, Tokyo

20,700

4.5%

July 2, 2018

KDX Shinbashi Ekimae Building

Minato-ku, Tokyo

16,3003.5%

June 30, 2020

Property NameKDX Toranomon 1chome Building

Minato-ku, Tokyo

14,616

3.2%

March 30, 2016

KDX Harumi Building

Chuo-ku, Tokyo

10,2502.2%

June 30, 2008

9,600

June 30, 2022 or date not
2.1% later than June 30, 2022
to be agreed separately

Edobashi Building

5 Central Wardsof Tokyo

Ratio(Note 1)

(Anticipated) Acquisition Price(million yen) (Note 1)

Chuo-ku, TokyoKDX Nishi-Shinbashi Building

Minato-ku, Tokyo

8,400

1.8%

February 1, 2017

Hiei Kudan-Kita Building

Chiyoda-ku, Tokyo

7,600

1.6%

February 1, 2008

KDX Shinjuku Building

Shinjuku-ku, Tokyo

6,800

1.4%

February 18, 2010

KDX Ochanomizu Building

Chiyoda-ku, Tokyo

6,400

1.4%

April 2, 2007

KDX Shiba-Daimon Building

Minato-ku, Tokyo

6,090

1.3%

March 1, 2007

KDX Kojimachi Building

Chiyoda-ku, Tokyo

5,950

1.3%

November 1, 2005

KDX Nihonbashi 313 Building

Chuo-ku, Tokyo

5,940

1.3%

August 1, 2005

KDX Takanawadai Building

Minato-ku, Tokyo

5,250

1.1%

November 19, 2013

KDX Iidabashi Building

Shinjuku-ku, Tokyo

4,670

1.0%

July 22, 2011

KDX Ebisu Building

Shibuya-ku, Tokyo

4,640

1.0%

May 1, 2006

Higashi-Kayabacho Yuraku Building

Chuo-ku, Tokyo

4,450

0.9%

August 1, 2005

KDX Iidabashi Square

Shinjuku-ku, Tokyo

4,350

0.9%

January 10, 2014

KDX Ginza 1chome Building

Chuo-ku, Tokyo

4,300

0.9%

November 12, 2010

KDX Hamamatsucho Center Building

Minato-ku, Tokyo

3,950

0.8%

September 1, 2015

KDX Shin-Nihonbashi Ekimae Building

Chuo-ku, Tokyo

3,829

0.8%

August 2, 2016

KDX Shinbashi Building (Note 2)

Minato-ku, Tokyo

3,728

0.8%

May 1, 2006

KDX Hatchobori Building

Chuo-ku, Tokyo

3,680

0.8%

August 1, 2005

KDX Ginza East Building

Chuo-ku, Tokyo

3,600

0.7%

March 13, 2015

KDX Shibuya Nanpeidai Building

Shibuya-ku, Tokyo

3,500

0.7%

August 10, 2017

KDX Hamamatsucho Building

Minato-ku, Tokyo

3,460

0.7%

May 1, 2006

KDX Kanda Ekimae Building

Chiyoda-ku, Tokyo

3,300

0.7%

February 7, 2020

KDX Mita Building

Minato-ku, Tokyo

3,180

0.7%

November 18, 2013

KDX Higashi-Shinjuku Building

Shinjuku-ku, Tokyo

2,950

0.6%

September 1, 2006

KDX Kayabacho Building

Chuo-ku, Tokyo

2,780

0.6%

May 1, 2006

KDX Jimbocho Building

Chiyoda-ku, Tokyo

2,760

0.6%

March 31, 2008

KDX Hakozaki Building

Chuo-ku, Tokyo

2,710

0.5%

July 22, 2011

KDX Akihabara Building

Chiyoda-ku, Tokyo

2,600

0.5%

November 19, 2013

KDX Yoyogi Building

Shibuya-ku, Tokyo

2,479

0.5%

September 30, 2005

Harajuku F.F. Building

Shibuya-ku, Tokyo

2,450

0.5%

August 1, 2005

KDX Kajicho Building

Chiyoda-ku, Tokyo

2,350

0.5%

July 3, 2006

KDX Hamacho Nakanohashi Building

Chuo-ku, Tokyo

2,310

0.5%

February 1, 2008

KDX Shinjuku 286 Building

Shinjuku-ku, Tokyo

2,300

0.5%

June 1, 2007

KDX Minami Aoyama Building

Minato-ku, Tokyo

2,270

0.5%

August 1, 2005

Nihonbashi Horidomecho First

Chuo-ku, Tokyo

2,200

0.4%

August 19, 2013

Shin-toshin Maruzen Building

Shinjuku-ku, Tokyo

2,110

0.4%

February 29, 2008

KDX Nihonbashi 216 Building

Chuo-ku, Tokyo

2,010

0.4%

December 1, 2009

KDX Kanda Kitaguchi Building

Chiyoda-ku, Tokyo

1,950

0.4%

August 1, 2005

KDX Shinjuku 6-chome Building

Shinjuku-ku, Tokyo

1,900

0.4%

September 13, 2013

KDX Iwamoto-cho Building

Chiyoda-ku, Tokyo

1,864

0.4%

May 1, 2008

KDX Nishi-Shinjuku Building

Shinjuku-ku, Tokyo

1,500

0.3%

April 2, 2007

6

Type of Use

Area

Tokyo
Metropolitan Area

Property Name

Location

Other
Regional Areas

Ratio(Note 1)

(Scheduled) Date of
Acquisition (Note 2)

KDX Musashi-Kosugi Building

Kawasaki, Kanagawa

12,0002.6%

March 20, 2014

KDX Yokohama Kannai Building

Yokohama, Kanagawa

9,500

2.0%

January 31, 2018

KDX Yokohama Building

Yokohama, Kanagawa

7,210

1.5%

October 29, 2014

KDX Fuchu Building

Fuchu, Tokyo

6,120

1.3%

September 21, 2012

Toshin 24 Building

Yokohama, Kanagawa

5,300

1.1%

May 1, 2006

KDX Higashi-Shinagawa Building

Shinagawa-ku, Tokyo

4,590

1.0%

July 22, 2011

KDX Nishi-Gotanda Building

Shinagawa-ku, Tokyo

4,200

0.9%

December 1, 2006

KDX Ikebukuro Building

Toshima-ku, Tokyo

3,900

0.8%

November 18, 2013

KDX Kawasaki-Ekimae Hon-cho Building

Kawasaki, Kanagawa

3,760

0.8%

February 1, 2008

KDX Takadanobaba Building

Toshima-ku, Tokyo

3,650

0.8%

May 30, 2014

Koishikawa TG Building

Bunkyo-ku, Tokyo

3,080

0.6%

November 18, 2009

KDX Kasuga Building

Bunkyo-ku, Tokyo

2,800

0.6%

September 21, 2012

KDX Yokohama Nishiguchi Building

Yokohama, Kanagawa

2,750

0.6%

December 2, 2014

(excluding 5 Central Wards) KDX Gotanda Building

Office Buildings(Mid-size)(Anticipated) Acquisition Price(million yen) (Note 1)

Shinagawa-ku, Tokyo

2,620

0.5%

November 18, 2009

KDX Nakano-Sakaue Building

Nakano-ku, Tokyo

2,533

0.5%

August 1, 2005

KDX Shin-Yokohama Building

Yokohama, Kanagawa

2,520

0.5%

May 1, 2006

KDX Funabashi Building

Funabashi, Chiba

2,252

0.4%

March 1, 2006

BR Gotanda

Shinagawa-ku, Tokyo

2,200

0.4%

April 5, 2017

KDX Omiya Building

Saitama, Saitama

2,020

0.4%

March 26, 2013

KDX Okachimachi Building

Taito-ku, Tokyo

2,000

0.4%

March 1, 2007

KDX Ikebukuro West Building

Toshima-ku, Tokyo

1,934

0.4%

September 3, 2014

KDX Nakameguro Building

Meguro-ku, Tokyo

1,880

0.4%

September 21, 2012

KDX Kiba Building

Koto-ku, Tokyo--

June 20, 2006

KDX Monzen-Nakacho Building

Koto-ku, Tokyo

1,400

0.3%

January 19, 2007

KDX Tachikawa Ekimae Building

Tachikawa, Tokyo

1,267

0.2%

December 26, 2011

KDX Hachioji Building

Hachioji, Tokyo

1,155

0.2%

March 1, 2007

KDX Nagoya Sakae Building (Note 2)

Nagoya, Aichi

7,550

1.6%

April 25, 2008

KDX Nagoya Ekimae Building

Nagoya, Aichi

7,327

1.6%

December 26, 2011

Sendai Honcho Building

Sendai, Miyagi

6,360

1.4%

April 28, 2022

KDX Sakura-dori Building

Nagoya, Aichi

5,900

1.3%

January 9, 2015

KDX Karasuma Building

Kyoto, Kyoto

5,400

1.1%

June 1, 2007

KDX Tosabori Building

Osaka, Osaka

5,000

1.1%

January 31, 2020

KDX Hakata-Minami Building

Fukuoka, Fukuoka

4,900

1.0%

February 1, 2008

KDX Shin-Osaka Building

Osaka, Osaka

4,550

1.0%

September 1, 2015

KDX Nagoya Nichigin-mae Building

Nagoya, Aichi

3,500

0.7%

March 15, 2016

KDX Kobayashi-Doshomachi Building

Osaka, Osaka

2,870

0.6%

December 1, 2010

KDX Higashi Umeda Building

Osaka, Osaka

2,770

0.6%

March 28, 2012

KDX Utsunomiya Building

Utsunomiya, Tochigi

2,350

0.5%

May 30, 2014

KDX Kitahama Building

Osaka, Osaka

2,220

0.4%

February 1, 2008

KDX Minami-Honmachi Building

Osaka, Osaka

2,200

0.4%

December 2, 2014

KDX Sendai Building

Sendai, Miyagi

2,100

0.4%

June 1, 2007

KDX Sapporo Building

Sapporo, Hokkaido

2,005

0.4%

March 25, 2011

KDX Sapporo Kitaguchi Building

Sapporo, Hokkaido

1,800

0.3%

July 20, 2017

KDX Hiroshima Building

Hiroshima, Hiroshima

1,300

0.2%

September 1, 2014

382,771

84.3%-

Total of 88 Office Buildings (Mid-size)

7

Type of Use

Area
5 Central Wardsof Tokyo

Office Buildings(Other)Tokyo Metropolitan Area
(excluding 5 Central Wards)

Other
Regional Areas

OthersInvestment Security

5 Central Wardsof Tokyo

5 Central Wardsof Tokyo

Property Name

Location(Anticipated) Acquisition Price(million yen) (Note 1)

Ratio(Note 1)

(Scheduled) Date of
Acquisition (Note 2)

Ginza 4chome Tower

Chuo-ku, Tokyo

9,800

2.1%

August 19, 2013

ARK Mori Building

Minato-ku, Tokyo

4,169

0.9%

December 1, 2016

Pentel Building (Note 3)

Chuo-ku, Tokyo

3,350

0.7%

March 26, 2015

Mitsubishijuko Yokohama Building

Yokohama, Kanagawa

14,7203.2%

December 7, 2017

KDX Chofu Building

Chofu, Tokyo

8,700

1.9%

Jule 14, 2019

KDX Toyosu Grand Square

Koto-ku, Tokyo

8,666

1.9%

May 30, 2014

Senri Life Science Center Building

Toyonaka, Osaka

13,0002.8%

October 15, 2014

Portus Center Building

Sakai, Osaka

September 21, 2005

5,570

1.2%

Total of 8 Office Buildings (Other)

67,975

14.9%-

Total of 96 Office Buildings

450,746

99.3%

Portfolio PML 3.2%

Shinjuku 6chome Building (Land)

2,880

0.6%

April 18, 2014

Total of 1 Others Property

Shinjuku-ku, Tokyo

2,880

0.6%

-

Total of 97 Properties

453,626

100.0%

-

1,107

-

March 28, 2014

1,107

-

-

G. K. KRF43 Silent Partnership Equity Interest

Shinjuku-ku, Tokyo

Total of 1 Investment Security
Note 1: The (anticipated) acquisition prices and ratios are rounded down to the nearest million and first decimal place respectively.
Note 2: For the property with multiple acquisition dates due to additional acquisition, etc., the first acquisition date is shown.
Note 3: Building, site and the land for Pental Building are counted as one property.

8