June 12, 2008
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Kazuhiko Arahata, CEO & President
Contact: Toru Kimura, General Manager, Planning Department
Phone: +81-3-3211-7921

Notice of Asset Acquisition(Land and a building located next to Ryoshin Ginza East Mirror Building)Announcement is hereby made that on June 12, 2008, Japan Real Estate Investment Corporation (the“Company”) decided to acquire the following asset and concluded an agreement for acquisition thereof:
The Company plans to demolish the existing building (“Maruden Bldg.”) forming a part of the assets tobe acquired and make an extension to Ryoshin Ginza East Mirror Building owned by the Company on theland on which Maruden Bldg. is located. Another announcement will be made when the details of theextension plan are decided.

1. Outline of the acquisition
1) Asset to be acquired:Real property
Land: ownership
Building: ownership
2) Name of asset:
Land and a building located next to Ryoshin Ginza East Mirror Building3) Acquisition price:¥1,800 million
4) Scheduled acquisition date: July 4, 2008
5) Seller:
CP Corporation KK
6) Method of settlement:
Lump sum payment at closing of acquisition
7) Acquisition funds:
Own funds (scheduled)

2. Reason for the acquisition
The Company will acquire the asset based on the basic policies and investment attitude for acquisition
under the Articles of Incorporation of the Company. In particular, the following points have beenhighly evaluated in the determination of the acquisition.
(1) Enhancement of the competitiveness of Ryoshin Ginza East Mirror Building• Upon closing of the acquisition, the Company plans to demolish Maruden Bldg. and make anextension to Ryoshin Ginza East Mirror Building, which is owned by the Company and locatednext to Maruden Bldg. After completion of the extension, Ryoshin Ginza East Mirror Building
will grow in size, increasing its standard floor area for rental floor space by approx. 198 m2,from 377 m2 to approx. 575 m2, and its total leasable space per building by approx. 1,386 m2,from 2,875 m2 to approx. 4,261 m2.

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Due to the increase in area and the utilization efficiency of Ryoshin Ginza East Mirror
Building as envisaged by the extension plan, the property is expected to enhance its
competitiveness in the rental office market by increasing its premium for size-based scarcity,
given that most of the available properties in the Ginza area are small in size, and by increasing
its attractiveness to potential tenants and its ability to address existing tenants’ needs for
additional office space, thus leading to increased profitability.
(2) Minimization of development risks• Although this case represents an unprecedented approach for the Company in that it is premisedon demolition and construction of a building, the approach employs a scheme to minimize thedevelopment risks involved therein, such as the risk of the said construction of the extension
failing to occur, which can be substantiated by the following facts: (i) presently, there are notenants occupying Maruden Bldg., which means there is no risk of any tenant failing to vacate
it; and (ii) extensive examination is underway concerning the plan by which an extension will
be made to Ryoshin Ginza East Mirror Building following the demolition of Maruden Bldg.

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3. Details of the asset to be acquired
The relevant information is as set out below; provided that the information on “area,” “structure” and“completion date” is derived from the land registry and “usage” described below is among the main
usages listed in the land registry.
(1) Details of the asset to be acquired
Location
3-219-8 Ginza, Chuo-ku, Tokyo and three other lots
Address shown Landin land registry Building
3-219-8 Ginza, Chuo-ku, Tokyo and others
Address
3-15-15 and 3-15-9 Ginza, Chuo-ku, Tokyo
Usage
Office and Shop
AreaLand
249.66 m2
Building
1,739.05 m2
Steel-framed reinforced concrete structure, flat roofStructure
Above ground: 8 floors
Below ground: 1 floor
Completion dateJune 1973
Architect
Ono architectural design officeConstructor
SATOHIDE CORPORATION and Shiraishi Construction Corp.
Building confirmation
Chuo-ku
and inspection bodyType of ownership
Land
Ownership
Building
Ownership
Acquisition price¥1,800 million¥1,170 million(Daiwa Real Estate Appraisal Co., Ltd.)
Appraisal value(Capitalization method: as of June 1, 2008)(Appraisal institution)(Evaluation method)[Reference: Survey report issued by Daiwa Real Estate Appraisal Co., Ltd.]
Survey-based value: ¥1,890 million(Note 1)
(Capitalization method: as of July 1, 2008)
N/A: No earthquake risk assessment report has been obtained as the property
PML value
is to be acquired on the premise of demolition.
CollateralNone
Property management(Note 2)company
Although there is a likelihood of nonconformity with laws and regulations inwhich one of the stairs has been removed and the stairwell converted into anOthers
office as well as the conversion of a parking lot into an office, MarudenBldg. will be promptly dismantled according to the schedule stated under
section 4, “Outline of the extension plan,” following the acquisition.
(Note 1) “Appraisal value” represents a commercially viable value in the light of investment
calculated on the premise of redeveloping the land to be acquired independently, while“survey-based value” represents a commercially viable value in the light of investment
calculated on the premise of making an extension to Ryoshin Ginza East Mirror Building byapplying a similar technique to that used in appraisals.
(Note 2) Upon closing of the acquisition, the property to be acquired will be placed under thecustody of the scheduled architect and constructor as specified under Section 4, Item (3)below, and will be managed integrally with Ryoshin Ginza East Mirror Building following
completion of the extension.

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(2) Tenant details
Presently, there are no tenants occupying Maruden Bldg.
4. Outline of the extension plan
(1) Acquisition and extension schedule
June 12, 2008
The acquisition of the asset was determined and an agreement for
acquisition thereof was concluded.
July 4, 2008
Closing of acquisition (scheduled)
Middle of August 2008
Demolition of Maruden Bldg. will be started (scheduled).
Middle of March 2009
An extension contract will be concluded (scheduled).
Late in March 2009
Demolition will be completed (scheduled).
Early April 2009
Construction of extension will be started (scheduled).
Middle of February 2010
Completion of extension and closing of the extension contract(scheduled).
(2) Total project cost (estimated): ¥2,723 million (rough estimation)(The figure includes the acquisition cost of the land and building, the demolition cost of Maruden
Bldg., and the amount of extension building work costs, excluding overhead costs such as
brokerage commission, etc.)(3) Scheduled architect and constructor: SHIMIZU CORPORATION(4) Expected effects of extension
Before extension

After extension(including the existing portion)
864.91 m2
Approx. 5,910 m2 (Note 2)

Site area (Note 1)
615.25 m2
Floor area of building
4,104.71 m2 (Note 1)
Standard floor area
Approx. 575 m2 (Note 2)
377 m2(for rental floor space)
Leasable space
2,875 m2
Approx. 4,261 m2 (Note 2)
Acquisition price¥5,353,500 thousand¥8,076,500 thousand (Note 3)
NOI¥232 million¥350 million(estimated on an annual basis)(Note 1) The information on site area and floor area of building before extension is derived fromthe land registry.
(Note 2) The figures for floor area of building, standard floor area (for rental floor space) andleasable space as extended were calculated based on the relevant drawings andspecifications, and therefore may be subject to change.
(Note 3) The acquisition price of the building as extended was calculated by adding ¥2,723,000
thousand under “Section 4. Outline of the extension plan, Item (2) Total project cost(estimated)” to ¥5,353,500 thousand, the acquisition price of Ryoshin Ginza East Mirror
Building, owned by the Company as of June 12, 2008.

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5. Outline of the seller
Corporate name
Address of the registeredhead office
Representative
Paid in capital
Major shareholder
Principal business

CP Corporation KK
1-11-44 Akasaka, Minato-ku, Tokyo
Tsutomu Ikeda, Representative Director¥1 million (as of May 30, 2008)(Note)
Financial business, transaction in and holding, management, andleasing of real estate and intermediary service therein

Relationship with theCompany or the asset
Nonemanagement company(Note) The information on major shareholder is not disclosed because the permission of the seller
has not been obtained.
6. Outline of the brokerage(1) Broker:
Mitsubishi UFJ Trust and Banking Corporation and Ohkuraya Fudosan Co., Ltd.
(2) Relationship with the Company or the asset management company:
None(3) Commission: The information on brokerage commission is not disclosed because the permissionof the brokers has not been obtained.
As the impact on the Company’s management performance for the fiscal period from April 1, 2008 toSeptember 30, 2008 is minimal, no revision of the forecast performance will be made.
This notice is the English translation of the announcement in Japanese dated June 12, 2008 on our website.
However, no assurance or warranties are given for the completeness or accuracy of this English
translation.
Reference materials (attachments)• Outline of appraisal report• Artist’s illustration of outside view of Ryoshin Ginza East Mirror Building and extension as completed• Information map• Floor plan
• List of all the assets of the Company after the acquisition of this asset

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(Reference) Outline of appraisal report
The appraisal value shown herein was determined, based on the conclusion that the most efficient use canbe made of the property if the vacant land resulting from demolition of Maruden Bldg. is used as a officebuilding site, by assessing the vacant land price of the subject land in the capitalization method and by
deducting therefrom the demolition cost of Maruden Bldg.
On the other hand, the survey-based value represents a commercially viable value in the light ofinvestment assessed on the premise of making an extension to Ryoshin Ginza East Mirror Building after
demolition of Maruden Bldg. (Given that the existing building and the forthcoming extension will
constitute an integral building, the profit price of the existing building was first deducted from the profit
price of the integral building, and then the profit price of the extension was calculated. From the profit
price of the extension thus obtained, the extension construction cost was deducted to obtain the profit
price of the property under the subject acquisition.)<Appraisal value and survey-based value>
Appraisal value¥1,170,000,000(Date of appraisal) June 1, 2008
Survey-based value¥1,890,000,000 See (i) and (ii) below.
(Date of appraisal) July 1, 2008
Appraisal institution
Daiwa Real Estate Appraisal Co., Ltd.

(i) Survey-based value of the property under the subject acquisition
Capitalized value¥1,890,000,000(ii) Survey-based value of the integral building on the premise of extension
ItemValue/%
Capitalized value¥8,170,000 thousand
Value in direct capitalization method¥8,440,000 thousand
Net cash flow

¥371,375 thousand

Cap rate

4.4%

Value in DCF method¥8,050,000 thousand

Discount rate

4.1%

Terminal cap rate

4.6%

* Values below one thousand yen are truncated.

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(Reference) Artist’s illustration of outside view of Ryoshin Ginza East Mirror Building and extension ascompleted

Existing portion
Forthcoming extension

This illustration was drawn based on the relevant drawings and the specifications and may differ from theactuality.

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(Reference) Information map

8

(Reference) Floor plan
<Before extension>Standard floor area
for rental floor space
377m2 (114 tsubo)<After extension>Standard floor area for rental floor space

Approx. 575m2(approx. 174 tsubo)

377m2(114 tsubo)

Approx. 198m2(approx. 60 tsubo)

The floor plan as extended was drawn based on the current drawings and specifications and may differ
from the actuality.

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List of all the assets of the Company after the acquisition of this asset
Area

Name
Genki Medical Plaza
Kitanomaru Square
MD Kanda Building
Kandabashi Park Building
Nibancho Garden
Mitsubishi UFJ Trust and BankingBuilding
Burex Kojimachi Building
Sanno Grand Building

Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo
Chiyoda-ku,
TokyoType of asset

Acquisition date orscheduled acquisition
dateAcquisition
price(thousand yen)

Percentage
of portfolio

Real property

October 31, 2002

5,000,000

1.0%Real property

February 24, 2006

81,555,500

15.7%Real property

May 31, 2002

9,520,000

1.8%Real property

August 15, 2002

4,810,000

0.9%Real property

April 1, 2005

14,700,000

2.8%Real property

March 28, 2007

44,700,000

8.6%
1.3%

Real property

July 29, 2005

7,000,000
10,200,000

Real property

January 31, 2005
April 3, 2006
Total

10,700,000

4.0%Real property

August 1, 2003

7,200,000

1.4%

Kodenmacho Shin-Nihonbashi
Building

Chuo-ku, Tokyo

Trust beneficiaryright in trust ofreal estate

September 25, 2001

3,173,000

0.6%

Burex Kyobashi Building

Chuo-ku, Tokyo

Real property

July 22, 2002

5,250,000

1.0%

Ginza Sanwa Building

Chuo-ku, Tokyo

Real property

March 10, 2005

16,830,000

3.2%

Ryoshin Ginza East Mirror Building(Note 1)

Chuo-ku, Tokyo

Real property

March 15, 2005

5,353,500

1.0%

Harumi Center Building

Chuo-ku, Tokyo

Real property

December 18, 2007

26,800,000

5.2%

Aoyama Crystal Building

Minato-ku,
TokyoReal property

March 14, 2003

7,680,000

1.5%

September 10, 2001

4,859,000

0.9%

September 25, 2001

2,808,000

0.5%Real property

September 1, 2004

7,830,000

1.5%

Shiba 2Chome Daimon Building

Minato-ku,TokyoCosmo Kanasugibashi Building

Minato-ku,
TokyoShinwa Building
Tokyo Opera City Building

Shinjuku-ku,
TokyoShinjuku-ku,
Tokyo

Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate

Real property

September 13, 2005

9,350,000

1.8%

September 25, 2001

2,738,000

0.5%

Takanawadai Building

Shinagawa-ku,Tokyo

Trust beneficiaryright in trust ofreal estate

Higashi-Gotanda 1Chome Building

Shinagawa-ku,Tokyo

Real property

November 1, 2004

5,500,000

1.1%

Omori-Eki Higashiguchi Building

Ota-ku, Tokyo

Trust beneficiaryright in trust ofreal estate

September 10, 2001

5,123,000

1.0%Real property

March 24, 2004

6,670,000

1.3%Real property

April 1, 2004

8,700,000

1.7%Real property

November 22, 2002

4,885,000

0.9%Real property

October 9, 2003

12,200,000

2.4%Real property

November 30, 2001

34,600,000

6.7%

3,740,000

Real property

November 14, 2003
April 1, 2004
Total
February 28, 2005

8,500,000

1.6%

September 25, 2001

3,541,000

0.7%

September 25, 2001

1,728,000

0.3%

August 2, 2004

4,500,000

0.9%

Nippon Brunswick Building
Yoyogi 1Chome Buildingda Vinci Harajuku
Jingumae Media Square Building
Shibuya Cross Tower
Ebisu Neonato

Harmony Tower

Shibuya-ku,Tokyo
Shibuya-ku,Tokyo
Shibuya-ku,
TokyoShibuya-ku,
TokyoShibuya-ku,
TokyoShibuya-ku
TokyoNakano-ku
TokyoOtsuka Higashi-Ikebukuro Building

Toshima-ku,
Tokyo

Ikebukuro 2Chome Building

Toshima-ku,
Tokyo

Ikebukuro YS Building

Toshima-ku,
TokyoReal property
Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate
Real property

10

Percentage
by area

20,900,000

Chiyoda-ku,
Tokyo

Yurakucho Denki BuildingTokyo
metropolitan
area(23 wards)

Location

360,000

0.8%

4,100,000

74.8%

Hachioji First Square

Saitama Urawa Building
Tokyometropolitanarea(excluding23 wards)

MM Park Building

Kawasaki Isago Building

Musahi Kosugi STM Building

Hachioji City,Tokyo
Saitama City,
SaitamaPrefecture
Yokohama City,
Kanagawa
Prefecture
Kawasaki City,
Kanagawa
Prefecture
Kawasaki City,
Kanagawa
Prefecture

March 31, 2005
March 19, 2008
Total
September 25, 2001
October 11, 2001
Total

3,300,000

Real property

March 24, 2008

37,400,000

7.2%

Trust beneficiaryright in trust ofreal estate

September 25, 2001

3,375,000

0.7%Real property

March 25, 2008

4,000,000

0.8%

441,132,112

85.0%

85.0%
1.4%

Real property

Real property

Total: Tokyo metropolitan area
Hokkaido

8 • 3 Square Kita Building
Jozenji Park Building

TohokuregionSendai Honcho HonmaBuilding

Hokuriku
regionKanazawa Park Building

Nishiki Park Building
Chubu
regionHirokoji Sakae Building
Nagoya Hirokoji Building
Nagoya Misono Building
Kyoto Shijo Kawaramachi Building

Sapporo City,
Hokkaido
Sendai City,
MiyagiPrefecture

2,379,112

1.1%

5,679,112
1,232,000
1,342,000

0.5%

2,574,000

Real property

June 1, 2007

7,100,000

1.4%Real property

January 31, 2005

1,000,000

0.2%

Sendai City,
MiyagiPrefecture

Trust beneficiaryright in trust ofreal estate

2,924,000

Kanazawa City,
Ishikawa
Prefecture

Real property

Nagoya City,
Aichi Prefecture

Real property

September 25, 2001
June 28, 2006
Total
February 28, 2002
March 3, 2003
Total
October 2, 2006
November 1, 2006
Total

Real property

September 22, 2006

1,680,000

0.3%Real property

September 10, 2001

14, 533,000

2.8%Real property

August 8, 2003

1,865,000

0.4%Real property

December 20, 2001

2,650,000

0.5%

2,264,000

14,314,000

Nagoya City,
Aichi Prefecture
Nagoya City,
Aichi PrefectureNagoya City,
Aichi Prefecture
Kyoto City,
Kyoto
Prefecture

250,000

10.2%

0.8%
0.6%

3,174,000
2,880,000
1,700,000

0.9%

0.9%

4,580,000
3,850,000
1,300,000

1.0%

5,150,000
4.5%

Osaka City,
Osaka
Prefecture

Real property

Osaka City,
Osaka
Prefecture

Trust beneficiaryright in trust ofreal estate

September 25, 2001
December 26, 2003
Total
September 25, 2001
February 28, 2002
Total

Real property

February 1, 2006

4,650,000

March 25, 2004
March 3, 2008
Total

1,320,000

Real property

Real property

September 25, 2001

1,550,000

0.3%Real property

June 1, 20055,000,000

1.0%

Trust beneficiaryright in trust ofreal estate

September 10, 2001

3,657,000

0.7%

Total: Other major cities

77,837,000

15.0%

15.0%

Total: Portfolio

518,969,112

100.0%

100.0%

Sakaisujihonmachi Building

Kinki region

Midosuji Daiwa Building

Lit City Building
ChugokuregionNHK Hiroshima Broadcasting
Center Building
Tosei Tenjin Building

KyushuregionTenjin Crystal Building

Hinode Tenjin Building(Note 1)

(Note 2)

Okayama City,
OkayamaPrefecture
Hiroshima City,
Hiroshima
Prefecture
Fukuoka City,
Fukuoka
Prefecture
Fukuoka City,Fukuoka
Prefecture
Fukuoka City,
Fukuoka
Prefecture

1,900,000

0.8%

6,934,000
7,380,000

1,450,000

2.8%

0.9%
1.4%
0.5%

2,770,000

In addition to the investment assets outlined in the above list, the Company plans to acquire land and a building adjacent
to Ryoshin Ginza East Mirror Building at the price of ¥1,800 million as of July 4, 2008. Concurrently, the Company alsoplans to dismantle the existing building after acquisition of the land and building, and then construct extension toRyoshin Ginza East Mirror Building.
The Company acquired the preferred capital contribution certificates issued by Harumi Front Special Purpose Company
on March 29, 2005, November 24, 2005 and November 24, 2006, for a total acquisition price of ¥1,270 million.
However, the total price of ¥1,268,050 thousand for the preferred capital contribution certificates was reimbursed on
May 8, 2008 as determined by a resolution of paid retirement made by the general meeting of members of SPC held on
March 31, 2008.

114.1%

4,164,000

2.0%