Translation of Japanese Original

July 27, 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 Acquisition of Property (Shionogi Kobe 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 the Investment
Corporation, decided to acquire the following property (“the Acquisition”).
1. Outline of the Acquisition(1) Property Name
(2) Planned Acquisition Price (Note)(3) Seller(4) Brokerage(5) Contract Date
(6) Scheduled Acquisition Date
(7) Anticipated Acquisition Funds(8) Settlement Method: Shionogi Kobe Building (“the Property”): 3,450 million yen: Domestic general business corporation (non-related party): Applicable: July 27, 2022
: August 1, 2022
: Cash on hand
: Payment in full on settlement

Note: Acquisition costs, adjustment amount of property tax and city-planning tax, and consumption tax, etc. are excluded.
(Amounts are truncated to the nearest unit. The same applies below.)

2. Reason for the Acquisition
The decision on the Acquisition was made by comprehensively considering portfolio construction policy, real estatemarket trends, the characteristics of the Property and other factors to improve and expand the portfolio throughexpansion of portfolio size.
In the decision to acquire the Property, which is a mid-sized office building that the Investment Corporation has
focused on as main investment target, the following characteristics of the Property were evaluated.

1(1) Location
The Sannomiya Station-Front Area, where the Property is located, is the area with the highest concentration of
office buildings in Kobe City. It offers excellent commuting convenience because it is served by six lines in total,
including the JR Line, and is one station away from Shin-Kobe Station of the Sanyo Shinkansen Line, among
other factors. The area is expected to be further vitalized because efforts are being made mainly by the Kobe
municipal government and railway companies, among other parties, to redevelop and improve surrounding
areas.
Located around a 6-minute walk from Boeki Center Station on the Kobe New Transit Port Island Line, a7-minute walk from Sannomiya-Hanadokeimae Station on the Kobe Municipal Subway Kaigan Line and an
8-minute walk from Kobe-Sannomiya Station on the Hanshin Line, the Property features excellent commuting
convenience with access to multiple lines, and it is situated adjacent to commercial facilities expanding around
Sannomiya (Kobe-Sannomiya) Station and government offices, including the municipal office. In addition,
given its proximity to an interchange of the Hanshin Expressway, the Property is characterized by a locationpreferred by tenants engaging in businesses that require the comparatively frequent use of vehicles.
(2) Building
Equipped with solid-looking external view and entrance hall, the Property has a total floor area of 8,501.91 m2(about 2,572 tsubo) and a leasable floor area of 598 m2 (about 181 tsubo) on the standard floors, with a ceilingheight of 2.7 m. In terms of facilities, it features individual air-conditioning systems, office automation floors,
and three elevators. The building also has 80 parking spaces. Consequently, the number of tenants that use cars
for business is relatively high. With regularly shaped rental rooms divisible to a minimum of 19 tsubo, theProperty is an office building which can flexibly correspond diverse tenant needs including needs for seeking
small- and medium-sized lots, and expected to be operated stably into the future.
Through the Acquisition, the portfolio of the Investment Corporation will expand to 98 properties (total: 457.0
billion yen). The investment ratio of office buildings in the portfolio will be 99.4%, and the investment ratio of theTokyo Metropolitan Area (Note1) in the portfolio will be 79.8% (The figures are based on (planned) acquisition price.
(Note2)).
Note1: Tokyo Metropolitan Area means major cities in Tokyo Metropolitan, Kanagawa, Saitama, and Chiba Prefectures.
Note2: The investment proportions reflect the sale of Kiba Building scheduled to be sold for July 29, 2022, which has alreadybeen disclosed in “Notice Concerning Sale of Property (KDX Kiba Building)” dated May 31, 2022.

3. Details of the Property
Property Name

Shionogi Kobe Building

Type of Specified Asset

Real Estate

Location (Lot number)

4-1-6 Isogami-dori, Chuo-ku, Kobe, Hyogo

Usage

OfficeType of Structure

Flat-roofed, Steel-framed, Steel-framed reinforced concrete
structure; 10 above-ground floors with 1 underground floor

Site Area
Type ofOwnershipLand

1,290.18 m2

Building (Total Floor Area)

8,501.91 m2

Land

Proprietary ownership

Building

Proprietary ownership

Completion Date

May 13, 1992

Probable Maximum Loss

2.0 % (Sompo Risk Management Inc.)

Acquisition Price

3,450 million yen

Appraisal

3,610 million yen

Appraisal Value2

Base Date for Appraisal

July 1, 2022

Appraiser

Daiwa Real Estate Appraisal Co., Ltd.

Details

Please refer to “10. Summary of Appraisal Report” below.

Existence of Secured Interests after Acquisition

None

Master Lease Company after Acquisition

The Investment Corporation

Property Management Company after Acquisition

Kenedix Property Design, Inc.

Details of Tenant

As of June 30, 2022

Number of End Tenants

19

Total Leasable Area

5,674.72 m2

Total Leased Area

5,404.57 m2

Occupancy Rate

95.2%

Monthly Rent and Common Area Charge(Excluding Consumption Tax, etc.)

13 million yen (Note)

Security and Guarantee Deposit

118 million yen (Note)

Forecast Income and Expenditure(Annual Amount)
Forecast Net Operating Income

157 million yen

Forecast Net Operating Income after
121 million yen
Depreciation
Although a written statement proving that the boundary confirmation authority has
been entrusted by the owner of the adjacent land has not been confirmed in regard toSpecial Considerations
the boundary with the adjacent land (314) of the Property, a boundary confirmation
sealed by a director of an apartment management association exists. No disputes havearisen with the said adjacent land as of today.
Other

Note: Figures include the total amount of monthly rent, common area charge, and security andguarantee deposit for the end-tenants for which the lease period has started as of June 30,
2022.

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4. Seller’s Profile
Name and other information of the seller are not disclosed because the seller has not given consent. 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 seller. Furthermore, the seller is neither arelated party, etc. as defined in the Act on Investment Trusts and Investment Corporations (“the Investment TrustAct”) nor a related party as defined in the Office REIT Department Related-party Transaction Rules of the AssetManagement Company.
5. Acquirer’s (Previous Owners of Current Owner) Profile
It is omitted because the seller (the current owner) of the Property is not a special related party of the Investment
Corporation or the Asset Management Company.
6. Details of Brokerage
The brokerage firm of the Property is neither a related party, etc. as defined in the Investment Trust Act nor a
related party as defined in the Office REIT Department Related-party Transaction Rules of the Asset Management
Company.
7. Related Party Transaction
Concerning the following transactions with related parties in relation to the Acquisition, the Asset Management
Company fully complies with standards provided for in laws and regulations and other rules, based on the Office
REIT Department Related-party Transaction Rules. The Asset Management Company’s Office REIT Department
Asset Management Committee passed a resolution of deliberation and approval on the related-party transactions
upon deliberation and resolution at its Compliance Committee.
[Appointment of Property Management Company]
The Investment Corporation will, regarding the Property, enter into a property management agreement with
Kenedix Property Design, Inc. on the acquisition date.
The property management fee will be the same as those for other properties in the portfolio.
8. Scheduled Date of the Acquisition
Determination Date of the Acquisition
Contract Date
Scheduled Payment Date
Scheduled Delivery Date

July 27, 2022
August 1, 2022 (planned)

9. Outlook
The impact of the Acquisition on the financial results for the fiscal period ending October 31, 2022 (May 1, 2022 to
October 31, 2022) and the fiscal period ending April 30, 2023 (November 1, 2022 to April 30, 2023) is minimal.
Therefore, the forecast of financial results for the fiscal period remains unchanged.

410. Summary of Appraisal Report
Property Name

Shionogi Kobe Building

Appraisal Value
Appraiser
Appraisal Date

3,610,000,000 yen
Daiwa Real Estate Appraisal Co., Ltd.
July 1, 2022
Unit: Yen
Item

Content

Income Capitalization Approach Value

3,610,000,000

Value Calculated Using the
Direct Capitalization Method

3,750,000,000(1) Gross Operating Revenue

260,167,340

Shortfall Attributed to Vacancies

10,597,794

19,233,214

Utility Expenses

15,037,000

Repair Expenses

9,279,750

Property Management Fees

4,682,905

Tenant Recruit Expenses, etc.

1,442,333

Taxes and Dues

20,896,500

Other Expenses(3) Net Operating Income(NOI= (1)-(2))(4) Gain on Guarantee Deposit
Investment

Assess an amount based on the fiscal 2022 tax statement, etc.
Assess an amount based on the building replacement cost
Assess other expenses such as consumables based on theactual amount in the past

1,030,000
177,279,844

Assess income from investments by using an investment
return of 1.0%
Record an annual average amount of renewal expenses inthe engineering report added by the amount equivalent to
CM fees after considering the actual amount of expenses atsimilar properties

1,545,050
17,675,743(6) Net Cash Flow
(NCF=(3)+(4)-(5))

161,149,151(7) Capitalization Rate

4.3%

Discount Rate

Record based on the scheduled contract after conducting
validations by checking the level of the maintenance andmanagement fees of similar properties
Assess an amount based on the actual utility expenses in thepast, and by verifying such amount by reference to the levelsof utility expenses at similar properties
Record annual average repair, maintenance andrenewal
expenses in the engineering report after considering theactual amount of expenses at similar properties
Assess a standardized PM fee ratio based on PM fee ratios atsimilar properties
Assess an amount in consideration of an estimated tenant
turnover and a vacancy rate, based on the levels of tenant
recruitment expenses, etc. at similar properties

688,000(5) Capital Expenditure

Value Calculated Using the
Discounted Cash Flow Method

Assess an amount based on the premise of a level of fair rent
that is believed to remain stable over the medium and longterm
Assess an amount based on the premise of an occupancy ratethat remains stable over the medium and long term

72,289,702

Maintenance Expenses

Damage Insurance Fees

Estimated an amount by verifying the value calculated using
the Direct Capitalization Method as well as handling thevalue calculated using the Discounted Cash Flow Method asa standard
Assess by using the cap rate based on medium to long-term
stable net cash flow

249,569,546

Maximum Gross Operating
Revenue(2) Operating Expenses

Basis

Assess an amount by comprehensively taking into accountcomparison with transaction cases, etc. at similar properties,
the property’s location, the characteristics of the building andother conditions

3,550,000,000
Assess an amount by comprehensively taking into accountthe property’s unique characteristics, etc. by reference totransaction yields at similar properties

4.0%

5

Terminal Capitalization Rate

Value Calculated Using the Cost Method
Land
Building

The Appraiser’s Points to Consider upon
Appraisal Other Than the Above

While referring to returns associated with transactions ofsimilar properties, assess by comprehensively taking into
account upcoming changes in investment returns, risks
associated with the property to be invested, generalprediction of economic growth rate, trends in real estate
prices and rent trends, and other factors

4.4%

3,010,000,000
72.1%
27.9%
Use the Income Capitalization Approach Value as the decision is made that the
Income Capitalization Approach Value is more persuasive because the pricedetermination process has been accurately reproduced from the aspect of income,while referring to the Value Calculated Using the Cost Method*Reference (Appraisal NOI Yield = Net Operating Income (NOI) in the aforementioned Value Calculated
Using the Direct Capitalization Method ÷ Anticipated Acquisition Price)
Appraisal NOI Yield(rounded to the first decimal place)

5.1%

Attached Materials
Reference Material 1
Reference Material 2

Property Photographs, Property Location
Property Portfolio after the Acquisition

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 July 27, 2022. However, noassurance or warranties are given for the completeness or accuracy of this English translation.

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Reference Material 1
Property Photographs and Property Location【Property Photographs】

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【Property Location】

8

Reference Material 2
Property Portfolio after the Acquisition
As of August 1, 2022
Type of Use

Office Buildings(Mid-size)

Area

5 Central Wardsof Tokyo

Ratio(Note 1)

(Scheduled) Date of
Acquisition (Note 2)

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

KDX Hamamatsucho Place

Minato-ku, Tokyo

20,700

4.5%

July 2, 2018

KDX Shinbashi Ekimae Building

Minato-ku, Tokyo

16,300

3.6%

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

Edobashi Building

Chuo-ku, Tokyo

9,600

2.1%

June 30, 2022

KDX Nishi-Shinbashi Building

Minato-ku, Tokyo

8,400

1.8%

February 1, 2017

Hiei Kudan-Kita Building

Chiyoda-ku, Tokyo

7,600

1.7%

February 1, 2008

KDX Shinjuku Building

Shinjuku-ku, Tokyo

6,800

1.5%

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

1.0%

August 1, 2005

KDX Iidabashi Square

Shinjuku-ku, Tokyo

4,350

1.0%

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

0.9%

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

0.8%

March 13, 2015

KDX Shibuya Nanpeidai Building

Shibuya-ku, Tokyo

3,500

0.8%

August 10, 2017

KDX Hamamatsucho Building

Minato-ku, Tokyo

3,460

0.8%

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

0.6%

July 22, 2011

KDX Akihabara Building

Chiyoda-ku, Tokyo

2,600

0.6%

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

0.5%

August 19, 2013

Shin-toshin Maruzen Building

Shinjuku-ku, Tokyo

2,110

0.5%

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, 20079

Type of Use

Area

Tokyo
Metropolitan Area

(excluding 5 Central Wards)

Office Buildings(Mid-size)

Other
Regional Areas

Property Name

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

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

2.1%

January 31, 2018

KDX Yokohama Building

Yokohama, Kanagawa

7,210

1.6%

October 29, 2014

KDX Fuchu Building

Fuchu, Tokyo

6,120

1.3%

September 21, 2012

Toshin 24 Building

Yokohama, Kanagawa

5,300

1.2%

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

0.9%

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

0.7%

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

KDX Gotanda Building

Shinagawa-ku, Tokyo

2,620

0.6%

November 18, 2009

KDX Nakano-Sakaue Building

Nakano-ku, Tokyo

2,533

0.6%

August 1, 2005

KDX Shin-Yokohama Building

Yokohama, Kanagawa

2,520

0.6%

May 1, 2006

KDX Funabashi Building

Funabashi, Chiba

2,252

0.5%

March 1, 2006

BR Gotanda

Shinagawa-ku, Tokyo

2,200

0.5%

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 Monzen-Nakacho Building

Koto-ku, Tokyo

1,400

0.3%

January 19, 2007

KDX Tachikawa Ekimae Building

Tachikawa, Tokyo

1,267

0.3%

December 26, 2011
March 1, 2007

KDX Hachioji Building

Hachioji, Tokyo

1,155

0.3%

KDX Nagoya Sakae Building (Note 2)

Nagoya, Aichi

7,550

1.7%

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

1.2%

June 1, 2007

KDX Tosabori Building

Osaka, Osaka

5,000

1.1%

January 31, 2020

KDX Hakata-Minami Building

Fukuoka, Fukuoka

4,900

1.1%

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

0.8%

March 15, 2016

Shionogi Kobe Building

Kobe, Hyogo

3,450

0.8% August 1, 2022 (planned)

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

0.5%

February 1, 2008

KDX Minami-Honmachi Building

Osaka, Osaka

2,200

0.5%

December 2, 2014

KDX Sendai Building

Sendai, Miyagi

2,100

0.5%

June 1, 2007

KDX Sapporo Building

Sapporo, Hokkaido

2,005

0.4%

March 25, 2011

KDX Sapporo Kitaguchi Building

Sapporo, Hokkaido

1,800

0.4%

July 20, 2017

KDX Hiroshima Building

Hiroshima, Hiroshima

1,300

0.3%

September 1, 2014

386,22184.5%-

Total of 89 Office Buildings (Mid-size)

10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 97 Office Buildings

454,196

99.4%

Portfolio PML 3.1%

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 98 Properties

457,076

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.

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