[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
December 8, 2021
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 13 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

Property NameBook
Value1

AnticipatedSale Price2,

ExpectedGain onSale2,3

6,150

1,949

Transferee 4

A77

Invoice Shin-Kobe
Residence

A78

Cosmo Court Motomachi

840

A85

Vendir Hamaotsu Ekimae

484

A86

Salvo Sala

471

A89

Winntage Kobe Motomachi

438

Residence

A91

Corp Higashinotoin

393

TokuteiA95

HERMITAGE NANBA WEST

312

A79

Revest Honjin

575

A80

Revest Matsubara

565

A82

Alba Noritake Shinmachi

516

A83

Revest Meieki Minami

506

AnticipatedSale Date

1,106

Kansai

December 22, 2021

Mokuteki
Kaisha

4,450

1,437

January 12, 2022

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

1

A88

Luna Court Edobori

461

A98

Little River Honmachibashi

274

Total

6,946

10,600

3,386

-

-

(Note 1) As of June 30, 2021.
(Note 2) Anticipated sale prices show the sale prices set forth in the purchase and sale agreement for the trust beneficiaryinterests, and do not include adjustments for property taxes or city planning taxes, or national or local consumption taxes.
The anticipated sale price of individual properties are not disclosed as the transferee’s consent has not been obtainedfor disclosure. Accordingly, the expected gain on sale of individual properties is not disclosed either. The same shallapply hereinafter.
(Note 3) Expected gain on sale is calculated by deducting the estimated transfer related cost and is an estimate as of today andis subject to change upon finalization of the financial results. The same shall apply hereinafter.
(Note 4) For an overview of the transferee, please refer to “4. Overview of Transferee” as described below.
(Note 5) The broker in connection with the Sale is not a related party of INV/CIM.
(Note 6) Amounts are rounded down to the nearest million yen. The same shall apply hereinafter.

2.

Reasons for Sale
INV selected the Assets to be Sold by comprehensively considering portfolio strategy, trends in the realestate market, and characteristics of Assets to be Sold.

The total anticipated sale price of the Assets tobe Sold exceeds the total book value (Note 1) by 52.6%, and INV will record a gain on total sale (Note 2)of JPY 1,949 million for the fiscal period ending December 2021 (from July 1, 2021 to December 31, 2021)
and JPY 1,437 million for the fiscal period ending June 2022 (from January 1, 2022 to June 30, 2022).
The Assets to be Sold have an actual NOI yield (Note 3) of 4.9%.

The main reason for the Sale is for

INV to maintain positive earnings for the fiscal period ending December 2021 while at the same time
maintaining good long-term dividend prospects.

The sale proceeds will be reserved as cash on hand,and as described in “7. Use of Sale Proceeds” below, INV plans to repay a part of existing borrowings tomaintain an appropriate LTV ratio.

INV also plans to appropriate a portion of the proceeds as a sourceof cash distribution.
(Note 1) As of June 30, 2021.
(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, 2020 to June 30,
2021.

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, 2021 and total rental revenue indicatesthat for the fiscal period ended June 30, 2021.

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

2

[Details](1) A77: Invoice Shin-Kobe ResidenceType of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

3-3-8 Ikutacho, Chuo-ku, Kobe-shi, Hyogo

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 1,550 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 50,571 thousand

Tenant Leasehold
and security deposit

JPY 1,601 thousand

Total Leasable area (m2)

2,773.71

Total Leased area (m2)

2,695.77
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

97.7%

94.4%

96.3%

94.5%

97.2%

Occupancy Trend(2) A78: Cosmo Court Motomachi
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

3-12-20 Motomachidori, Chuo-ku, Kobe-shi, Hyogo

Purpose of Use

Condominium, Garage, Bicycle parking lot

Appraisal Value
Valuation)

(Date

of

Appraisal Firm

JPY 1,200 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 38,310 thousand

Tenant Leasehold
and security deposit

JPY 1,474 thousand

Total Leasable area (m2)

2,310.49

Total Leased area (m2)2,167.02
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

98.7%

98.9%

97.7%

98.8%

93.8%

Occupancy Trend(3) A85: Vendir Hamaotsu EkimaeType of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

1-2-15 Hamaotsu, Otsu-shi, Shiga

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 841 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 35,075 thousand

Tenant Leasehold
and security deposit

JPY 5,455 thousand

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

3

Total Leasable area (m2)

2,670.66

Total Leased area (m2)2,528.41
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

98.8%

93.4%

95.3%

97.8%

94.7%

Occupancy Trend(4) A86: Salvo Sala
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

2-6-21 Shimanouchi, Chuo-ku, Osaka-shi, OsakaPurpose of Use

Condominium

Appraisal Value
Valuation)

(Date

of

Appraisal Firm

JPY 697 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 23,732 thousand

Tenant Leasehold
and security deposit

JPY 220 thousand

Total Leasable area (m2)

1,428.12

Total Leased area (m2)

1,267.02
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

93.7%

83.3%

92.0%

91.1%

88.7%

Occupancy Trend(5) A89: Winntage Kobe Motomachi
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

7-2-2 Motomachidori, Chuo-ku, Kobe-shi, Hyogo

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 666 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 22,778 thousand

Tenant Leasehold
and security deposit

JPY 1,093 thousand

Total Leasable area (m2)

1,433.35

Total Leased area (m2)

1,356.27
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

93.0%

96.7%

91.3%

90.8%

94.6%

Occupancy Trend(6) A91: Corp Higashinotoin
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

380-1 Kawaranomachi, Higashinotoindori Nijo Kudaru, Nakagyo-ku, Kyoto-shi, Kyoto

Purpose of Use
Appraisal Value
Valuation)
Appraisal Firm

Condominium
(Date

of

JPY 559 million (as of November 1, 2021)
Japan Real Estate InstituteThis English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

4Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 18,525 thousand

Tenant Leasehold
and security deposit

JPY 755 thousand
2

Total Leasable area (m )1,029.05

Total Leased area (m2)

982.56
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

97.6%

95.1%

93.3%

93.3%

95.5%

Occupancy Trend(7) A95: HERMITAGE NANBA WEST
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

4-10-3 Sakuragawa, Naniwa-ku, Osaka-shi, OsakaPurpose of Use
Appraisal Value
Valuation)

Condominium, Garage
(Date

of

Appraisal Firm

JPY 489 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 16,451 thousand

Tenant Leasehold
and security deposit

JPY 288 thousand

Total Leasable area (m2)

992.76

Total Leased area (m2)

992.76
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

100.0%

100.0%

88.0%

87.2%

100.0%

Occupancy Trend(8) A79: Revest Honjin
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

2-13 Toriidori, Nakamura-ku, Nagoya-shi, Aichi

Purpose of Use
Appraisal Value
Valuation)

Condominium
(Date

of

Appraisal Firm

JPY 875 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 31,746 thousand

Tenant Leasehold
and security deposit

JPY 3,581 thousand

Total Leasable area (m2)2

Total Leased area (m )Occupancy Trend

1,933.80
1,813.35
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

92.5%

91.3%

92.5%

96.2%

93.8%

(9) A80: Revest Matsubara
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: OwnershipThis English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

5Location

3-13-12 Matsubara, Naka-ku, Nagoya-shi, Aichi

Purpose of Use
Appraisal Value
Valuation)

Condominium, Bicycle parking lot
(Date

of

Appraisal Firm

JPY 867 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 24,719 thousand

Tenant Leasehold
and security deposit

JPY 2,273 thousand

Total Leasable area (m2)

1,955.40

Total Leased area (m2)

1,403.63
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

93.1%

82.4%

93.7%

80.6%

71.8%

Occupancy Trend(10) A82: Alba Noritake Shinmachi
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

3-6-8 Noritake Shinmachi, Nishi-ku, Nagoya-shi, Aichi

Purpose of Use

Condominium, Parking lot, Bicycle parking lot

Appraisal Value
Valuation)

(Date

of

Appraisal Firm

JPY 792 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 26,586 thousand

Tenant Leasehold
and security deposit

JPY 3,209 thousand

Total Leasable area (m2)

1,731.68

Total Leased area (m2)

1,623.28
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

96.5%

91.6%

95.2%

90.3%

93.7%

Occupancy Trend(11) A83: Revest Meieki Minami
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

2-13-33 Meieki-Minami, Nakamura-ku, Nagoya-shi, Aichi

Purpose of Use
Appraisal Value
Valuation)

Condominium, Parking lot, Bicycle parking lot
(Date

of

Appraisal Firm

JPY 832 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 23,695 thousand

Tenant Leasehold
and security deposit

JPY 3,189 thousand

Total Leasable area (m2)

1,634.60

Total Leased area (m2)

1,369.89
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

88.4%

90.5%

90.5%

75.9%

83.8%

Occupancy Trend

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

6(12) A88: Luna Court Edobori
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Sectional ownership

Location

3-4-11 Edobori, Nishi-ku, Osaka-shi, OsakaPurpose of Use
Appraisal Value
Valuation)

Residence, Garage, Bicycle parking lot
(Date

of

Appraisal Firm

JPY 632 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 20,406 thousand

Tenant Leasehold
and security deposit

JPY 2,072 thousand

Total Leasable area (m2)

1,185.50

Total Leased area (m2)

1,138.36
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

100.0%

91.9%

96.0%

90.1%

96.0%

Occupancy Trend(13) A98: Little River Honmachibashi
Type of Specified Assets

Trust Beneficiary Interest

Property Right

Land: Ownership / Building: Ownership

Location

1-34 Honmachibashi, Chuo-ku, Osaka-shi, OsakaPurpose of Use
Appraisal Value
Valuation)

Condominium, Shop
(Date

of

Appraisal Firm

JPY 432 million (as of November 1, 2021)
Japan Real Estate Institute

Outline of a Lease Contract
Total number of tenants

1

Rental Revenue

JPY 13,118 thousand

Tenant Leasehold
and security deposit

JPY 672 thousand

Total Leasable area (m2)2

Total Leased area (m )Occupancy Trend

974.81974.81
As of the end ofJun. 2019

As of the end of
Dec. 2019

As of the end ofJun. 2020

As of the end of
Dec. 2020

As of the end ofJun. 2021

100.0%

100.0%

100.0%

84.6%

100.0%

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

7[Summary of Real Estate Appraisal Report](1)

A77: Invoice Shin-Kobe Residence

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 1,550 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

1,550,000
1,570,000(I) Operating Revenue [(a)-(b)]96,152(a) Total Potential Revenue

104,001(b) Vacant Room Losses, etc.

7,849(II) Operating Costs[(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

23,669Based on maintenance and management costs of historical data from(c) Maintenance and Management Costs

2,650(d) Utility Costs

1,000(e) Repair Costs

5,532(f) Property Management Fee

1,865(g) Tenant Solicitation Expenses

7,089(h) Taxes and Public Dues

5,393

Based on the documents relating to taxes and public dues

140

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)]the previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

072,483
7
5,078

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

67,412
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.3%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

1,520,000
4.1%

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

Final Capitalization Yield

4.5%

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. Estimated Price using Cost Method

1,150,000

Land Ratio

51.0%

Building Ratio

49.0%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

8

(2)

A78: Cosmo Court Motomachi

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 1,200 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

1,200,000
1,210,000(I) Operating Revenue [(a)-(b)]73,806(a) Total Potential Revenue

81,156(b) Vacant Room Losses, etc.

7,350(II) Operating Costs[(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

17,592
Based on maintenance and management costs of historical data from(c) Maintenance and Management Costs

2,536(d) Utility Costs

1,150(e) Repair Costs

3,485(f) Property Management Fee

1,461(g) Tenant Solicitation Expenses

4,128(h) Taxes and Public Dues

4,688

Based on the documents relating to taxes and public dues

144

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)]the previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

056,2140
5,393

Based on comparable assets and estimate in the engineering report

50,821
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.2%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

1,180,000
4.0%

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

Final Capitalization Yield

4.4%

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. Estimated Price using Cost Method

861,000

Land Ratio

36.7%

Building Ratio

63.3%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

9

(3)

A85: Vendir Hamaotsu Ekimae

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 841 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

841,000
848,000(I) Operating Revenue [(a)-(b)]65,400(a) Total Potential Revenue

68,808(b) Vacant Room Losses, etc.

3,408(II) Operating Costs[(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

16,413
Based on maintenance and management costs of historical data from(c) Maintenance and Management Costs

2,503(d) Utility Costs

2,200(e) Repair Costs

3,075(f) Property Management Fee

1,271(g) Tenant Solicitation Expenses

2,949(h) Taxes and Public Dues

3,957

Based on the documents relating to taxes and public dues

136

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)]the previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

322
48,98748
4,914

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

44,121
Based on local standard yield which is adjusted by adding andCapitalization Yield

5.2%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

834,000
5.0%

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

Final Capitalization Yield

5.4%

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. Estimated Price using Cost Method

526,000

Land Ratio

22.8%

Building Ratio

77.2%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

10

(4)

A86: Salvo Sala

Summary of Real Estate Appraisal Report
Appraisal ValueJPY 697 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

697,000
706,000(I) Operating Revenue [(a)-(b)]46,966(a) Total Potential Revenue

50,760(b) Vacant Room Losses, etc.

3,794(II) Operating Costs[(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

12,184(c) Maintenance and Management Costs

1,672(d) Utility Costs

1,850(e) Repair Costs

2,322

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

910(g) Tenant Solicitation Expenses

2,100(h) Taxes and Public Dues

3,128

Based on the documents relating to taxes and public dues

82

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)]Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

120
34,782
3
2,999

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

31,786
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.5%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

688,000
4.3%

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

Final Capitalization Yield

4.7%

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. Estimated Price using Cost Method

490,000

Land Ratio

34.6%

Building Ratio

65.4%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

11

(5)

A89: Winntage Kobe Motomachi

Summary of Real Estate Appraisal Report
Appraisal ValueJPY 666 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

666,000
675,000(I) Operating Revenue [(a)-(b)]43,794(a) Total Potential Revenue

48,740(b) Vacant Room Losses, etc.

4,946(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

11,5691,804(d) Utility Costs

880(e) Repair Costs

2,146

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

861(g) Tenant Solicitation Expenses

2,372(h) Taxes and Public Dues

3,216

Based on the documents relating to taxes and public dues

86

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)]Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

204
32,2250
3,188

Based on comparable assets and estimate in the engineering report

29,037
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.3%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

656,000
4.1%

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

Final Capitalization Yield

4.5%

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. Estimated Price using Cost Method

457,000

Land Ratio

33.6%

Building Ratio

66.4%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

12

(6)

A91: Corp Higashinotoin

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 559 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

559,000
572,000(I) Operating Revenue [(a)-(b)]36,392(a) Total Potential Revenue

38,253(b) Vacant Room Losses, etc.

1,861(II) Operating Costs[(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

9,259(c) Maintenance and Management Costs

1,738(d) Utility Costs

1,200(e) Repair Costs

2,086

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

694(g) Tenant Solicitation Expenses

1,528(h) Taxes and Public Dues

1,950

Based on the documents relating to taxes and public dues

63

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)]Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

027,1330
3,130

Based on comparable assets and estimate in the engineering report

24,003
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.2%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

546,000
4.0%

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

Final Capitalization Yield

4.5%

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. Estimated Price using Cost Method

516,000

Land Ratio

62.8%

Building Ratio

37.2%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

13

(7)

A95: HERMITAGE NANBA WEST

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 489 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

489,000
495,000(I) Operating Revenue [(a)-(b)]29,900(a) Total Potential Revenue

31,786(b) Vacant Room Losses, etc.

1,886(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

6,983
1,572

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years and(d) Utility Costs

520(e) Repair Costs

869(f) Property Management Fee

596(g) Tenant Solicitation Expenses

1,341(h) Taxes and Public Dues

2,031

Based on the documents relating to taxes and public dues

54

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)]comparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

0
22,9170
1,151

Based on comparable assets and estimate in the engineering report

21,766
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.4%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

482,000
4.2%

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

Final Capitalization Yield

4.6%

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. Estimated Price using Cost Method

304,000

Land Ratio

39.9%

Building Ratio

60.1%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

14

(8)

A79: Revest Honjin

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 875 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

875,000
886,000(I) Operating Revenue [(a)-(b)]60,245(a) Total Potential Revenue

64,314(b) Vacant Room Losses, etc.

4,069(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

13,9392,894

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years and(d) Utility Costs

730(e) Repair Costs

2,742(f) Property Management Fee

1,176(g) Tenant Solicitation Expenses

2,109(h) Taxes and Public Dues

3,704

Based on the documents relating to taxes and public dues

104

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)]comparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

480
46,30645
2,960

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

43,391
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.9%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

863,000
4.3%

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

Final Capitalization Yield

5.4%

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. Estimated Price using Cost Method

666,000

Land Ratio

40.0%

Building Ratio

60.0%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

15

(9)

A80: Revest Matsubara

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 867 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

867,000
876,000(I) Operating Revenue [(a)-(b)]56,746(a) Total Potential Revenue

61,193(b) Vacant Room Losses, etc.

4,447(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

13,761
2,866

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years and(d) Utility Costs

650(e) Repair Costs

2,329(f) Property Management Fee

1,089(g) Tenant Solicitation Expenses

2,433(h) Taxes and Public Dues

3,878

Based on the documents relating to taxes and public dues

96

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)]comparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

420
42,98541
2,729

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

40,297
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.6%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

858,000
4.3%

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

Final Capitalization Yield

4.8%

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. Estimated Price using Cost Method

757,000

Land Ratio

51.0%

Building Ratio

49.0%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

16(10) A82: Alba Noritake Shinmachi
Summary of Real Estate Appraisal Report
Appraisal ValueJPY 792 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

792,000
800,000(I) Operating Revenue [(a)-(b)]50,470(a) Total Potential Revenue

54,284(b) Vacant Room Losses, etc.

3,814(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

12,795
2,206

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years and(d) Utility Costs

750(e) Repair Costs

2,486(f) Property Management Fee

1,000(g) Tenant Solicitation Expenses

1,819(h) Taxes and Public Dues

3,535

Based on the documents relating to taxes and public dues

99

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)]comparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

900
37,67537
2,509

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

35,203
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.4%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

783,000
4.2%

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

Final Capitalization Yield

4.6%

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. Estimated Price using Cost Method

582,000

Land Ratio

32.2%

Building Ratio

67.8%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

17

(11)

A83: Revest Meieki Minami

Summary of Real Estate Appraisal Report
Appraisal Value

JPY 832 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

832,000
844,000(I) Operating Revenue [(a)-(b)]51,370(a) Total Potential Revenue

56,035(b) Vacant Room Losses, etc.

4,665(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

12,3482,293

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years and(d) Utility Costs

950(e) Repair Costs

2,434(f) Property Management Fee

1,001(g) Tenant Solicitation Expenses

1,805(h) Taxes and Public Dues

3,401

Based on the documents relating to taxes and public dues

98

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)]comparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report
Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

366
39,02239
3,604

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

35,457
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.2%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

820,000
4.0%

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

Final Capitalization Yield

4.4%

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. Estimated Price using Cost Method

759,000

Land Ratio

40.1%

Building Ratio

59.9%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

18

(12)

A88: Luna Court Edobori

Summary of Real Estate Appraisal Report
Appraisal ValueJPY 632 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

632,000
640,000(I) Operating Revenue [(a)-(b)]41,358(a) Total Potential Revenue

44,274(b) Vacant Room Losses, etc.

2,916(II) Operating Costs[(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

11,572(c) Maintenance and Management Costs

1,890(d) Utility Costs

1,550(e) Repair Costs

1,804

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

804(g) Tenant Solicitation Expenses

2,658(h) Taxes and Public Dues

2,496

Based on the documents relating to taxes and public dues

70

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)]Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

300
29,78615
1,654

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

28,147
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.4%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

623,000
4.2%

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

Final Capitalization Yield

4.6%

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. Estimated Price using Cost Method

576,000

Land Ratio

61.0%

Building Ratio

39.0%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

19(13) A98: Little River Honmachibashi
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 432 million

Appraisal Firm

Japan Real Estate Institute

Date of Valuation

November 1, 2021
Item

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

Contents

432,000
438,000(I) Operating Revenue [(a)-(b)]27,746(a) Total Potential Revenue

29,015(b) Vacant Room Losses, etc.

1,269(II) Operating Costs[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance and Management Costs

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

7,531
1,550

(d) Utility Costs

600(e) Repair Costs

1,347

Based on maintenance and management costs of historical data fromthe previous years and comparable assets
Based on utility costs of historical data from the previous years andcomparable assets
Based on repair costs level of historical data and comparable assets
and repair costs etc. in the engineering report(f) Property Management Fee

548(g) Tenant Solicitation Expenses

1,476(h) Taxes and Public Dues

1,959

Based on the documents relating to taxes and public dues

51

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)]Based on historical data, contract and market
Based on historical data from previous years and terms of rental ofcomparable assets

020,2155
1,840

Assume investment return as 1.0%
Based on comparable assets and estimate in the engineering report

18,380
Based on local standard yield which is adjusted by adding andCapitalization Yield

4.2%

subtracting spreads with consideration of the property’s individuality,
building and other conditions, future uncertainty and comparable assets’transaction yields(2) DCF Method
Discount Rate

425,000
4.0%

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

Final Capitalization Yield

4.4%

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. Estimated Price using Cost Method

339,000

Land Ratio

49.7%

Building Ratio

50.3%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

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 December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

20

4.

Overview of TransfereeKansai Residence Tokutei Mokuteki Kaisha (“Kansai Residence
TMK”)
C/O Akasaka International Accounting Co., Ltd. 1-1-8,
Motoakasaka Minato-ku, Tokyo

(i)

Name

(ii)

Location

(iii)
(iv)

Title and name ofrepresentative officer
Business(v)

Capital1. Business related to the transfer of specified capital and its
management and disposal in accordance with the asset
liquidation plan based on the Act on Asset Liquidation
2. Other business incidental to the business related to theliquidation of the above specified assets
JPY100 thousand (as of November 30, 2021)(vi)

Date of establishment

November, 2021

(vii)

Net Assets

Not disclosed (Note)(viii)

Not disclosed (Note)
Total Assets
Major
shareholders
andNot disclosed (Note)shareholding ratio
Relationship between INV/Asset Manager and the Company
The company does not have any capital relationship of note with
Capital relationships
INV or CIM.
The company does not have any personnel relationship of note with
Personnel relationships
INV or CIM.

(ix)
(x)

Transactional relationships
Whether the Tenant/Operator
is a related party

Norifumi Hayashi, Director

The company does not have any transactional relationship of notewith INV or CIM.
The company is not a related party of INV/CIM. Further, related
persons and affiliates of the company are not related parties of
INV/CIM. Furthermore, the company is not an interested party, etc.
of CIM as provided in Investment Trust Act.

(Note) Not disclosed because consent from the transferee has not been obtained.

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.

December 8, 2021
December 22, 2021 (seven properties)
January 12, 2022 (six properties)
Lump-sum payment on settlement

Use of Sale Proceeds
The sale proceeds will be reserved as cash on hand and will be mainly appropriated for the repayment ofexisting borrowings, and will also be used as a source of cash distribution.

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

21

8.

Future Outlook
INV will report a gain on sale of JPY 1,949 million for the fiscal period ending December 2021, and JPY
1,437 million for the fiscal period ending June 2022 in connection with the Sale.
Please refer to “Notice concerning Revision of Forecast of Financial Results for the 37th Fiscal PeriodEnding December 2021” dated December 8, 2021, for information on the revision of forecasts of financial
results for the fiscal period ending December 2021 in connection with the Sale and other factors.
The forecast of the financial forecasts for the fiscal period ending June 2022 will be announced at a later
date, once the outlook is established, considering that it is necessary to carefully assess the impact of
COVID-19.

Website of INV: https://www.invincible-inv.co.jp/en/

This English language notice is a translation of the Japanese-language notice released on December 8, 2021 and was prepared solely for the convenience of, and referenceby, 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 or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

22