NEWS RELEASE

Japan Real Estate Investment Corporation

March 7, 2008
To whom it may concern:
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)
Contact: (Asset Management Company)
Japan Real Estate Asset Management Co., Ltd.
Kazuhiko Arahata, CEO & President
Haruhiko Araki, General Manager, Planning Department
Phone: +81-3-3211-7921

Notice concerning Pre-payment of Loan
Announcement is hereby made that on March 7, 2008, Japan Real Estate Investment
Corporation decided to make the pre-payment of the following existing loans prior to theprincipal repayment date:1.
2.

March 13, 2008
Pre-payment date
Details of loan to be pre-paid before the due date(1) Start of the loan period:
December 17, 2007
(2) Total amount of loan:¥25,000 million(3) Lender, amount of loan and principal repayment date:Amount ofPrincipal repayment dateLenderloan(pre-payment possible)
Mizuho Corporate Bank, Ltd.
¥5,000 million
June 17, 2008
Mitsubishi UFJ Trust and Banking Corporation ¥5,000 million
September 17, 2008
September 17, 2008
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
¥5,000 million
September 17, 2008
The Sumitomo Trust & Banking Co., Ltd.
¥5,000 million
Shinsei Bank, Limited¥3,000 million
December 17, 2008
The Bank of Fukuoka, Ltd.
¥1,000 million
December 17, 2008
The Chugoku Bank, Ltd.
¥1,000 million
December 17, 2008
(4) Interest rate:
0.7741％ (from February 18, 2008 to March 16, 2008)(5) Borrowing method:
Loan based on overdraft agreements concluded separately withrespective lenders
Unsecured/non-guaranteed loan(6) Interest payment date:
17th of every month until the principal repayment date(7) Repayment of principal:
Payment in full on the principal repayment date3.

Funds for pre-payment

Proceeds from public offerings of new units

*There will be a break-funding cost upon pre-payment. The break-funding cost amount (amountbelow the minimum unit is disregarded) is calculated by multiplying each principal amount by adifference between 0.6241% (one-month Japanese Yen TIBOR announced by Japanese Bankers
Association (JBA) on February 14, 2008, percentage after the fourth decimal point is truncated)
and the one-week Japanese Yen TIBOR to be announced by JBA on March 11, 2008
(percentage after the fourth decimal point will be truncated), for the four days from March 13,
2008 (pre-payment date) to March 16, 2008 (a day prior to the next interest payment date)inclusive, calculated on a per-diem basis, assuming that there are 365 days per year. The
break-funding cost amount will be confirmed on March 11, 2008.
The estimated total break-funding cost is ¥109, 584 for the total principal repayment of ¥25billion, as calculated based on the one-week Japanese Yen TIBOR announced by JBA as ofMarch 7, 2008.

This notice is the English translation of the announcement in Japanese dated March 7, 2008 on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of thisEnglish translation.

[Reference]
Balance of interest-bearing debt after the pre-payment of the loan (as of March 13, 2008)(Units: millions of yen)
BeforeAfter
Increase/Decreasepre-payment
pre-payment
25,000－-25,000－－±0Long-term loans

89,50089,500±0Total loans

114,500

89,500-25,000

10,00010,000±045,00045,000±0Total investment
corporation bonds

55,00055,000±0Total interest-bearing debt

169,500

144,500-25,000

Short-term loans
Current portion of long-term loans

Current portion of investment
corporation bonds
Investment corporation bonds(except for current portion)