Translation of Japanese Original
June 12, 2019
To All Concerned Parties
REIT Issuer:
Kenedix Office Investment Corporation
Jiro Takeda, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Masahiko Tajima, President & CEO
Inquiries:
Hiroaki Momoi
Head of Planning Division
Office REIT Department
TEL: +81-3-5157-6010

Notice Concerning Debt Financing (Series 164) andthe Execution of Interest Rate Swap Agreements
Kenedix Office Investment Corporation (“the Investment Corporation”) has announced today, that the Investment
Corporation decided to undertake the debt financing (total of 3,000 million yen) and the execution of interest rate
swap agreements.
Please see below for the details.
1. Outline of Debt Financing
LenderAmountInterest Rate
(Note 1) (Note 2)

164-A

Sumitomo Mitsui
Trust Bank, Limited

500
millionyen

Base rate(JPY TIBOR
for 3 month)+0.27000%

June 30,
2023

164-B

Resona Bank, Limited

500
millionyen

Base rate(JPY TIBOR
for 3 month)+0.46000%

December 28,
2026

164-C

164-D

1,000
Sumitomo Life Insurance
millionCompanyyen

Sumitomo Mitsui
Banking Corporation

1,000million
yen

Contract
Date

June 12,2019

DrawdownDatePrincipal
Repayment
Date (Note 1)

SeriesJune 14,2019

0.60500%（Fixed interest rate）

April 30,
2027

Base rate(JPY TIBORfor 3 month)+0.59000%March 31,2029

Collateral ・Repayment
MethodUnsecured,
unguaranteed・
Repaymentof principal
in full on
maturity date

Note 1: The first interest payment for debt financing with floating interest rate in Series 164 is due at the end of June 2019, and on the last day of
every 3 months thereafter with the principal repayment day. The first interest payment of Series 164-C is due at the end of October 2019,and on the last day of every 6 months thereafter with the principal repayment day. If each interest payment day or the principal repayment
day is a non-business day, then the interest payment or the principal repayment will be due on the next business day and if that next
business day is in the next month, then previous business day will be applied.
Note 2: The base rate that is applied during interest period for the interest due on each interest payment date for debt financing with floatinginterest rate shall be calculated based on Japanese Yen TIBOR for 3 months, while Japanese Yen TIBOR for 1 months rate only for the
first interest payment, which the JBA TIBOR Administration (“the JBATA”) releases two business days before each interest payment date.
The Japanese Yen TIBOR of the JBATA is available on the JBATA website (http://www.jbatibor.or.jp/english/rate/).

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2. Purpose of Debt Financing
Series 164 is to apply the fund towards a part of acquisition funds and related costs for Chofu Center Building to beacquired on June 14, 2019. In addition, The Investment Corporation intends to newly undertake the debt financing
from Sumitomo Life Insurance Company as a new lender to diverse and expand its lenders.
Note: For details on the acquisition, please refer to the press release, “Notice Concerning Acquisition of Property (Chofu Center Building)” dated June
12, 2019.

3. Interest Rate Swap Agreement(1) Purpose
For a hedge against possible increases in future interest rate of Series 164.
(2) Details of the Interest Rate Swap Agreement
164-A

Series

164-B

Counterparty
Notional AmountInterestRate

164-D

Sumitomo Mitsui Trust Bank, Limited
Fixed Interest Ratefor Payment (Note)
Floating Interest
Rate for Receipt

500 million yen

500 million yen

1,000 million yen-0.02410%

0.05660%

0.13450%

Base rate (JPY TIBOR for 3 month,
JPY TIBOR for 1 months for the first payment)

Commencement Date
Termination Date

June 14, 2019
June 30, 2023

December 28, 2026

March 31, 2029

The first payment is due at the end of June 2019, and on the last day of every 3 months
thereafter with the termination date. (If each payment day is a non-business day, then thepayment will be due on the next business day and if that next business day is in the nextmonth, then previous business day will be applied.)

Payment DateNote: By entering into the interest rate swap agreements, the interest rates on Series 164-A, 164-B and 164-D are essentially fixed at0.24590%, 0.51660% and 0.72450%, respectively.

4. Status of Borrowings and Investment Corporation Bonds after the Debt Financing (as of June 14, 2019)(Millions of yen)

Short-Term Borrowings (Note 1)

Balance before
the Debt Financing
4,200

Balance after
the Debt Financing (Note 3)
4,200

Long-Term Borrowings (Note 2)

169,850

172,850+3,000174,050

177,050+3,000

8,000

8,000

0182,050

185,050+3,000ClassificationTotal Borrowings
Investment Corporation Bonds
Total Borrowings and Investment Corporation Bonds

Difference
0Note 1: Short-term borrowings refer to debt financing with a period less than or equal to one year from the drawdown date to the principal
repayment date. However, the borrowings for which the period until the principal repayment date has surpassed one year because theprincipal repayment date after one year from the drawdown date is not a business day, and for which the principal repayment date has
been moved to a different business day, are included in short-term borrowings.
Note 2: Long-term borrowings refer to debt financing with a period more than one year from the drawdown date to the principal repayment date.
Note 3: The repayment amount of long-term borrowings due by cash on hand is reflected.

5. OtherFor risks concerning the repayment, etc. of the aforementioned debt financing, there are no significant changes to the“Investment Risks” as described in the Securities Report (submitted on January 30, 2019).

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 June 12, 2019. However, noassurance or warranties are given for the completeness or accuracy of this English translation.

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