<Provisional translation>
March 29, 2013
For Immediate Release
REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Yoshihiro Nakano
General Manager, Corporate Planning Dept.
Email: hankyureit-ir@hankyu-rt.jp

Notice Concerning Transfer of Domestic Real Estate Trust Beneficiary Interests
Hankyu REIT, Inc. (hereafter “Hankyu REIT”) announces that it today decided to make the following transferof assets.
Details1.

Overview of Transfer(1) HEP Five (partial transfer)(i)

Asset to be transferred:

31% interest in quasi co-ownership of real estate trust beneficiaryinterests (Note)(ii) Property name:

HEP Five(iii) Proposed transfer price:

16,523,000,000 yen(excluding transfer-related expenses, property tax, city planningtax and consumption tax, among others)(iv) Book value:

13,002,000,000 yen (projected value at the proposed transfer date,rounded down to the nearest million yen)(v) Difference between proposedtransfer price and book value: 3,521,000,000 yen (difference between (iii) above and (iv) above)(vi) Appraised value:

16,523,000,000 yen (Date of appraisal: February 28, 2013)(Appraisal organization: The Tanizawa Sogo Appraisal Co., Ltd.)(vii) Proposed transfer date:

April 9, 2013(viii) Transferee:

Hankyu Realty Co., Ltd.

Note: Hankyu REIT’s interest in quasi co-ownership changes from 45% to 14%.
(2) NU chayamachi(i)

Asset to be transferred:

Real estate trust beneficiary interests(ii) Property name:

NU chayamachi(iii) Proposed transfer price:

14,100,000,000 yen

1(excluding transfer-related expenses, property tax, city planningtax and consumption tax, among others)(iv) Book value:

17,543,000,000 yen (projected value at the proposed transfer date,rounded down to the nearest million yen)(v) Difference between proposedtransfer price and book value: −3,443,000,000 yen (difference between (iii) above and (iv) above)(vi) Appraised value:

14,100,000,000 yen (Date of appraisal: February 28, 2013)(Appraisal organization: The Tanizawa Sogo Appraisal Co., Ltd.)2.

(vii) Proposed transfer date:

April 16, 2013(viii) Transferee:

Hankyu Corporation

Reason for Transfer
Hankyu REIT decided that, along with transferring these two retail facilities in the Umeda area in light ofalso such factors as intensifying competition with surrounding facilities, it will acquire the two properties
announced in the “Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Interests”
dated today (the transfer and acquisition, hereafter the “Asset Replacement”). Hankyu REIT decided tocarry out the Asset Replacement in an aim to enhance the portfolio NOI yield, while maintaining portfolio
quality.

3.

Details of Assets to be Transferred(1) HEP Five (partial transfer)
Property nameSpecified asset type

HEP Five
31% interest in quasi co-ownership of real estate trust beneficiary interests(Hankyu REIT’s interest in quasi co-ownership changes from 45% to 14%.)

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Trust period

February 1, 2005 to January 31, 2025

Acquisition dateFebruary 1, 2005

Quasi co-owner

Hankyu Realty Co., Ltd.
(The company’s interest in quasi co-ownership changes from 55% to 86%.)

Location Address

5-15, Kakuda-cho, Kita-ku, Osaka-shi

Land

Building coverage

80%

Building Month/Year built

Floor area ratio

800%

Structure / Floors

November 1998
Steel-frame, reinforced
concrete structure with flat
roof / 3 underground levels,
10 floors

Zone use

Commercial district

Use

Store, amusement facility,
theater and parking garage
space

Lot area

5,596.11m

2

Total floor area

(Note 1) (Note 2)
Form of ownership

45,266.96m2(Note 1)

Right of ownership

Form of ownership

Total number of tenants

1 (129) (Note 3) (Note 4)

Principal tenants

SEGA Corporation and Point Inc.

2

Right of ownershipLeasable area

20,370.13m2 (9,510.90m2) (Note 4) (Note 5)

Leased area

20,370.13m2 (9,255.67m2) (Note 4) (Note 5)

Occupancy rate

100% (97.3%) (Note 4) (Note 6)

Note 1: The lot area and total floor area stated are the equivalent of 100%.
22Note 2: Of the lot area of 5,596.11m , 111.59m is road provided for public use.
Note 3: The total number of tenants is considered as 1 because the property is entirely leased to tenants under thepass-through master lease method.
Note 4: In parentheses are the figures as of today of the number of end tenants, leasable area to end tenants, leased
area to end tenants and occupancy rate based on end tenants.
Note 5: The leasable area and leased area stated are the equivalent of Hankyu REIT’s 45% interest in quasi
co-ownership (calculated based on the lease agreement with the master lessee).
Note 6: The ratio of leased area to leasable area.

(2) NU chayamachi
Property name

NU chayamachi

Specified asset type

Trust beneficiary interests

TrusteeMizuho Trust & Banking Co., Ltd.

Trust period

March 15, 2007 to March 31, 2017

Acquisition date

March 15, 2007

Location Address

10-12, Chaya-machi, Kita-ku, Osaka-shi

Land

Building Month/Year built

Building coverage

50%

Floor area ratio

700% / 550%

Structure / Floors

October 2005
steel-frame, steel-frame
reinforced concrete
structure, reinforced
concrete structure with flat
roof / 2 underground levels,
9 floors

Zone use

Commercial district

Use

Store and parking garage
space2Lot area

4,109.74m (Note 1)

Total floor area

25,194.25m2 (Note 1)

Form of ownership

Right of ownershipForm of ownership

Sectional ownership(co-ownership(floor area of exclusive-use

interest:

portion: 15,546.75m2

987,861/1,000,000)(Note 2)

Total number of tenants

1 (66) (Note 3) (Note 4)

Principal tenants

Tower Records Japan Inc. and Ishibashi Music Corporation

Leasable area

15,546.75m2 (11,447.64m2) (Note 4)

Leased area

15,546.75m2 (9,892.15m2) (Note 4)

Occupancy rate

100% (86.4%) (Note 4) (Note 5)

Note 1: The lot area and total floor area stated are the area of the property’s land and building as a whole (block ofbuildings and its lot specified in the registry).
Note 2: The floor area of the exclusive-use portion is the area of the portion owned by Hankyu REIT, and does notinclude the area of the portion owned by other sectional owners and common-use portion.
Note 3: The total number of tenants is considered as 1 because the property is entirely leased to tenants under thepass-through master lease method.
Note 4: In parentheses are the figures as of today of the number of end tenants, leasable area to end tenants, leased
area to end tenants and occupancy rate based on end tenants.

3Note 5: The ratio of leased area to leasable area.

4.

Overview of Transferees(1) HEP Five (partial transfer)
Name

Hankyu Realty Co., Ltd.

Location

Within Higashi-Hankyu Building, 1-1, Kakuda-cho, Kita-ku, Osaka-shi, Osaka

Title and name ofrepresentative

Takashi Shimada, Representative Director
Land, housing and condominium selling; land utilization and real estate brokerage

Main business activities

and mediation; expansion, remodeling and renovation; land and building leasemanagementCapital12,426 million yen (Note 1)

Date of establishment

February 17, 1947

Net assets and total assets

Net assets:

in immediately preceding

Total assets: 241,280 million yen

fiscal year

(as of March 31, 2012)

Major shareholder andshareholding ratio

71,399 million yen

Hankyu Corporation

100%

Capital relationships:
Hankyu Corporation, which is a shareholder (100% shareholding) of theasset management company Hankyu REIT Asset Management, Inc. andthus falls under the definition of “interested party, etc.” in the Act on
Investment Trusts and Investment Corporations (hereafter “InvestmentTrusts Act”), is a shareholder (100% shareholding) of the company andthe company thus falls under the definition of “interested party, etc.” inthe Investment Trusts Act.
Personnel relationships:
2 directors/employees have been seconded to the asset managementcompany.
(as of the end of the previous fiscal period (November 30, 2012))
Relationship to Hankyu

Business relationships:

REIT or asset management

Business relationships with Hankyu REIT

company

Property/Facility management fees 3,303 thousand yen
Rent paid

960 thousand yen(previous period (June 1, 2012 to November 30, 2012))
Business relationships with asset management company
Rent paid

36,609 thousand yen(previous fiscal year (April 1, 2011 to March 31, 2012))
In addition to the above, an information sharing-related agreement has
been entered into with the asset management company.
Applicability as related party:
Hankyu Corporation, which is a shareholder (100% shareholding) of theasset management company Hankyu REIT Asset Management, Inc., isa shareholder (100% shareholding) of the company and the company
thus falls under the definition of “related party.”
Note 1: The capital as of the date of this press release.

4(2) NU chayamachi
NameHankyu CorporationLocation

1-1, Sakae-machi, Ikeda-shi, Osaka

Title and name ofrepresentative
Main business activities

Kazuo Sumi, Representative Director
Urban transportation business; real estate-related business; entertainment &communications business; distribution business

Capital

100 million yen (Note 1)

Date of establishment

October 19, 1907

Net assets and total assets

Net assets:

in immediately preceding

Total assets: 1,028,237 million yen

fiscal year

(as of March 31, 2012)

Major shareholder andshareholding ratio144,065 million yen

Hankyu Hanshin Holdings, Inc. 100%
Capital relationships:
A unitholder (4.1% unitholding) of Hankyu REIT.
A shareholder (100% shareholding) of the asset management company
Hankyu REIT Asset Management, Inc. and thus falls under the definitionof “interested party, etc.” in the Investment Trusts Act.
Personnel relationships:
12 directors/employees have been seconded to the asset managementcompany, of which the president & representative director of the asset
management company concurrently holds the position of executive
director of Hankyu REIT.

Relationship to Hankyu
REIT or asset managementcompany

3 directors/employees concurrently hold a position at the assetmanagement company.
(as of the end of the previous fiscal period (November 30, 2012))
Business relationships:
Business relationships with Hankyu REIT
Rent paid 1,229 thousand yen(previous period (June 1, 2012 to November 30, 2012))
Business relationships with asset management company
An information sharing-related agreement has been entered into withthe asset management company.
Applicability as related party:
A shareholder (100% shareholding) of the asset management company
Hankyu REIT Asset Management, Inc. and thus falls under the definitionof “related party.”

Note 1: The capital as of the date of this press release.

5.

Transactions with Interested Parties, etc.
Because Hankyu Realty Co., Ltd., which is the transferee of HEP Five (partial transfer), and Hankyu
Corporation, which is the transferee of NU chayamachi, fall under the definition of “interested party, etc.”
in the Investment Trusts Act, the transfer of these assets have been deliberated and approved by theinvestment management committee, the compliance committee and the board of directors of the asset
management company in accordance with the asset management company’s rules concerningtransactions involving conflicts of interest set forth in the management guidelines, investment
management committee regulations, compliance committee regulations, etc.

56.

Overview of Intermediaries
Not applicable.

7.

Transfer Process
March 29, 2013

Resolution of transfer of two properties at the asset management company’s boardof directors’ meeting

April 9, 2013

Proposed conclusion of agreement to transfer real estate trust beneficiary interestsand proposed transfer of HEP Five (partial transfer)

April 16, 2013

Proposed conclusion of agreement to transfer real estate trust beneficiary interestsand proposed transfer of NU chayamachi

8.

Future Outlook
The net gain or loss on transfer, resulting from the gain on transfer of HEP Five (partial transfer)and the loss on transfer of NU chayamachi, and the transfer of these two properties will haveminimal influence on the conditions surrounding the management of Hankyu REIT’s assets andthere is thus no revision to the forecasts for such for the fiscal period ending May 2013 (December1, 2012 to May 31, 2013) from those announced on January 22, 2013.

••The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka
Securities Exchange and Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction
trade newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.
Hankyu REIT website: http://www.hankyu-reit.jp/eng<Attached Materials>
・Reference Material Table of Real Estate Portfolio After the Asset Replacement

6Reference Material<Table of Real Estate Portfolio After the Asset Replacement>
After the Asset Replacement (as of March 29, 2013)
Property
Code

Property Name(Note 1)

Facility(Type of Use)

RegionAcquisition Date(Actual/Proposed)

AcquisitionPrice(Actual/Proposed)(million yen)

Investment
Ratio

R1 (K)HEP Five (Note 2)

RetailKansai

February 1, 2005

6,468

5.6%

R2 (K)

Kitano Hankyu Building

RetailKansai

February 1, 2005

7,740

6.7%

R3 (K)Dew Hankyu Yamada

RetailKansai

February 1, 2005

6,930

6.0%

R4 (K)

Takatsuki-Josai Shopping Center

RetailKansai

November 15, 2005

8,600

7.4%

R5 (K)

Nitori Ibaraki-Kita Store (site)

RetailKansai

March 29, 2006

1,3181.1%

RetailOther

October 2, 2006

2,170

April 9, 2007

5NU chayamachi

RetailKansai

Transfer

R8

Hotel Gracery Tamachi

RetailOtherR9 (K)LaLaport KOSHIEN (site)

Retail

R10Richmond Hotel Hamamatsu

R6R7 (K)R11 (K)

Kohnan Hiroshima
Nakano-Higashi Store (site)

HANKYU NISHINOMIYAGARDENS (Note 3)――

December 25, 2008

4,160

3.6%

KansaiJanuary 22, 2009

7,350

6.3%

RetailOther

January 22, 2009

2,100

1.8%

RetailKansai

April 16, 2013

18,30015.8%

65,141

56.1%

Subtotal
O1O2 (K)

Shiodome East Side BuildingHankyu Corporation
Head Office Building (Note 3)

OfficeOtherFebruary 29, 2008

19,025

16.4%

OfficeKansai

April 10, 2013

10,2008.8%

29,22525.2%

Subtotal
M1 (K)

1.9%

Ueroku F Building

ComplexKansaiNovember 1, 2005

2,980

2.6%

Sphere Tower Tennoz

Complex

OtherOctober 2, 2007

9,405

8.1%

M3 (K)LAXA Osaka

ComplexKansaiJanuary 22, 2009

5,122

4.4%

M4 (K)

Namba-Hanshin Building

ComplexKansaiJanuary 22, 2009

4,310

3.7%

Subtotal

21,817

18.8%

Total

116,184

100.0%

M2

Note 1: The properties owned by Hankyu REIT are assigned codes classified by facility (type of use) and region.
The letters on the left represent the facility (type of use): “R” is for retail-use facility, “O” is for office-use facilityand “M” is for mixed-use (complex) facility. The numerals are the numbers assigned to each facility in thechronological order of the acquisition. Also, the letter “K” in parentheses to the right of the numerals indicatesthat the property is located in the Kansai region.
Note 2: HEP Five’s acquisition price and investment ratio are the figures after partial transfer.
Note 3: For the acquisition of HANKYU NISHINOMIYA GARDENS and Hankyu Corporation Head Office Building,please refer to the “Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Interests” dated
today.

7