January 17, 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 of Asset Acquisition
Announcement is hereby made that on January 17, 2008, Japan Real Estate Investment Corporation(the “Company”) decided to acquire the following asset:
1. Outline of the acquisition
1) Asset to be acquired2) Name of asset

Real property
Land: leasehold (quasi-co-ownership 20.144%)
Building: compartmentalized building units(ratio of share of ownership: 21.668%) (Note)
NHK Hiroshima Broadcasting Center Building3) Acquisition price¥ 1,450 million

4) Scheduled acquisition date

March 3, 2008

5) Seller

Mitsubishi Estate Co., Ltd.

6) Method of settlement

Lump sum payment at closing of acquisition

7) Acquisition funds

To be determined

Note: As of January 17, 2008, Mitsubishi Estate Co., Ltd. and the Company each own share in thisproperty (ratio of share of ownership in building: 27.085% each). After the above additional
acquisition of the share, with the Company acquiring 80% of the share owned by Mitsubishi
Estate, Co., Ltd., the respective ratios of share of ownership in the building will be 5.417%
for Mitsubishi Estate Co., Ltd. and 48.753% for the Company.
2. Reason for the acquisition
The Company will acquire the asset based on the basic policies and investment attitude foracquisition under the Articles of Incorporation of the Company. In particular, the following points
have been highly evaluated in the determination of the acquisition.
(1) Improvements in efficiency of property operation and management as well as asset value• With the ratio of share of ownership in the building increased to 48.753% from 27.085%,
improvements in efficiency of property operation and management as well as asset value canbe expected.
1(2) Highly competitive property• Located in the office agglomerate “Kamiya-cho & Otemachi” zone of central Hiroshima,facing the two main avenues of Rijo-dori and Heiwa-odori, which run north-to-south andeast-to-west, respectively, this property is highly visible and commands good access topublic transportation: 1-minute walk from Fukuro-machi Station of Hiroshima ElectricRailway.
• This building has a symbolic high status and landmark value due to its size and the artistic
exterior designing of the building. In addition, it offers high-graded specifications to meettenants’ needs such as office spaces with floor areas of approximately 330-tsubo per floor
with no pillars, office automation floor, individual air conditioning system, electric capacityof 50VA/m2 and an around-the-clock manned control system.
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 themain usages listed in the land registry.
(1) Details of the asset to be acquired
LocationLand
2-11-2, Otemachi, Naka-ku, Hiroshima
Address shownin land registry2-11-2, Otemachi, Naka-ku, Hiroshima
Building
Address
2-11-10, Otemachi, Naka-ku, Hiroshima
Office, shop
Usage
Area
Land
3,296.46 m2 (Total land area of the building site)
Building
35,217.28 m2 (Total floor space of the entire building)
Steel-framed, steel-framed reinforced concrete structure, flat roofStructure
Above ground: 23 floors Below ground: 2 floors
Completion dateAugust 1994
Architect
Yamashita Sekkei Inc.
Constructor
JV of Obayashi Corporation, Fujita Corporation, and Koujigumi Co., Ltd.
Building confirmation
Hiroshima Cityand inspection bodyType of ownership
Land
Leasehold (quasi-co-ownership of the total land area: 20.144%)
Co-ownership of compartmentalized building units (ratio of share of
Building
ownership: 21.668%)
Acquisition price¥ 1,450 million¥ 1,450 million
Appraisal value(Daiwa Real Estate Appraisal Co., Ltd.)(Appraisal institution)(Capitalization method: as of December 1, 2007)(Evaluation method)

PML value

1.55% (Based on the earthquake risk assessment report issued by Tokio
Marine & Nichido Risk Consulting Co., Ltd.)
NoneCollateral
Property management Mitsubishi Estate Co., Ltd. (Note 2)company (Note 1)
Note 1: The property management company to be entrusted after the acquisition shall be described.

2

Note 2: Outline of the property management company
Corporate name
Address of theregistered head office
Representative
Paid in capital
Major shareholders

Principal business
Relationship with theCompany or the asset
management company

Mitsubishi Estate Co., Ltd.
1-6-1, Otemachi, Chiyoda-ku, Tokyo
Keiji Kimura, President & CEO¥ 136,534 million (as of September 30, 2007)
The Master Trust Bank of Japan, Ltd. (trust account)
State Street Bank and Trust Company
Meiji Yasuda Life Insurance Company(as of September 30, 2007)
Real estate businessA principal shareholder (holding 36% of shares) of Japan Real Estate
Asset Management Co., Ltd. (the asset management company) inwhich the Company entrusts the management of its assets
Mitsubishi Estate Co., Ltd. falls within the related party of the asset
management company under the rules of the asset managementcompany.
As of September 30, 2007, Mitsubishi Estate Co., Ltd. holds 10,160
investment units of the Company (2.48% of total outstanding
investment units).

(2) Tenant details
Total number of tenants
Total leasable space
Total leased space

Trend in occupancy rates

124,382 m2
4,382 m2
September 30, 2005

98.6%

September 30, 2006

97.4%

September 30, 2007

92.2%

Scheduled acquisition date

100.0%NOI (Net Operating Income)¥ 99 million per year- The above figures (except NOI) are based on the shares held by the Company as of
September 30, 2007, and converted into the shares to be acquired this time.
- NOI is the estimated amount for the share to be acquired by the Company on thescheduled acquisition date, and under normal operation based on the terms and(Notes)
conditions of lease agreements as of the scheduled acquisition date, etc.
* Estimated occupancy rate: 92.0%- After this additional acquisition of shares, the Company plans to lease all space
owned by the Company to Mitsubishi Estate Co., Ltd., and Mitsubishi Estate will,in turn, sub-lease it to tenants together with their own space.
(3) Specifications for rental floor space
Ceiling heightStandard floor area
Office automation floor
Electric capacity
Air conditioning system
Floor load
Others2,600 mm
995 m2
100 mm50VA/m2
Individual air conditioning system
400 kg/m2
Around-the-clock entry and exit

3

(4) Outline of the engineering report
i. Outline of repair items
Date of report

March 1, 2007

Preparer of report
Repairing expenses/Capital expenditure
for the next 15 years(Annual average for the share to beacquired additionally by the Company)

Shimizu Corporation
Repairing expenses¥ 5 million

Capital expenditure¥ 17 million

Total¥ 23 million

ii. Description concerning utilization status of asbestos(Description on the possible use of asbestos)Sprayed materials with asbestos

None

4. Outline of seller
Same as the outline of the property management company described in (Note 2) of 3. (1).
5. Information on property owners, etc.
Name of Property(Address)
Previous property owner
Corporate name
Relationship with related parties
Reason for acquisition, etc.
Value of acquisition
Date of acquisition

NHK Hiroshima Broadcasting Center Building
2-11-10, Otemachi, Naka-ku, Hiroshima
Mitsubishi Estate Co., Ltd.
Principal shareholder of the asset management company
Newly built in August 1994––

6. Acquisition schedule
January 17, 2008
The acquisition of the asset was determined.
January 31, 2008
Execution of an agreement for the acquisition of the asset (scheduled)
March 3, 2008
Closing of acquisition (scheduled)
As the impact on the Company’s management performance for the fiscal period from October 1,
2007 to March 31, 2008 is minimal, no revision of the forecast performance will be made.

Reference materials (attachments)- Outline of appraisal report- Photo: Outside view of NHK Hiroshima Broadcasting Center Building- Information map- List of all the assets of the Company after the acquisition of this asset4

(Reference) Outline of appraisal report
Appraised value¥ 1,450,000 thousand

Appraisal institution

Daiwa Real Estate Appraisal Co., Ltd.

Date of appraisal

December 1, 2007
ItemValue/%

Profit price¥ 1,450,000 thousand

Value in direct capitalization method¥ 1,450,000 thousand

Net revenue¥ 85,362 thousand

Capitalization yield

5.9%

Value in DCF method¥ 1,450,000 thousand

Discount rate

5.7%

Final capitalization yield

6.1%

Integration value¥ 1,550,000 thousand

Percentage for land (leasehold)

33.5%

Percentage for building

66.5%*Values below a thousand yen are cut off.
This notice is the English translation of the announcement in Japanese dated January 17, 2008 on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of thisEnglish translation.

5

(Reference) Photo: Outside view of NHK Hiroshima Broadcasting Center Building

6

(Reference) Information map7

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

Name (Location)
Genki Medical Plaza(Chiyoda-ku, Tokyo)
Kitanomaru Square(Chiyoda-ku, Tokyo)
MD Kanda Building(Chiyoda-ku, Tokyo)
Kandabashi Park Building(Chiyoda-ku, Tokyo)
Nibancho Garden(Chiyoda-ku, Tokyo)
Mitsubishi UFJ Trust and Banking
Building (Chiyoda-ku, Tokyo)
Burex Kojimachi Building(Chiyoda-ku, Tokyo)
Sanno Grand Building(Chiyoda-ku, Tokyo)
Yurakucho Denki Building(Chiyoda-ku, Tokyo)
Kodenmacho Shin-Nihonbashi
Building(Chuo-ku, Tokyo)
Burex Kyobashi Building(Chuo-ku, Tokyo)
Ginza Sanwa Building(Chuo-ku, Tokyo)
Ryoshin Ginza East Mirror Building(Chuo-ku, Tokyo)
Harumi Center Building(Chuo-ku, Tokyo)
Aoyama Crystal Building(Minato-ku, Tokyo)

Tokyometropolitanarea(23 wards)

Shiba 2Chome Daimon Building(Minato-ku, Tokyo)
Cosmo Kanasugibashi Building(Minato-ku, Tokyo)
Shinwa Building(Shinjuku-ku, Tokyo)
Tokyo Opera City Building(Shinjuku-ku, Tokyo)

Acquisition
price(thousand yen)

Percentage ofportfolio

October 31, 2002

5,000,000

1.0%Real property

February 24, 2006

81,555,500

17.1%

Real property

May 31, 2002

9,520,000

2.0%Real property

August 15, 2002

4,810,000

1.0%Real property

April 1, 2005

14,700,000

3.1%Real property

March 28, 2007

44,700,000

9.4%
1.5%

Type of asset

Acquisition date orscheduled acquisition date

Real property

Real property

July 29, 2005

7,000,000
10,200,000

Real property

January 31, 2005
April 3, 2006
Total

Real property

August 1, 2003

7,200,000

1.5%

Trust beneficiaryright in trust ofreal estate

September 25, 2001

3,173,000

0.7%Real property

July 22, 2002

5,250,000

1.1%Real property

March 10, 2005

16,830,000

3.5%Real property

March 15, 20055,353,500

1.1%Real property

December 18, 2007

26,800,000

5.6%Real property

March 14, 2003

7,680,000

1.6%

September 10, 2001

4,859,000

1.0%

September 25, 2001

2,808,000

0.6%Real property

September 1, 2004

7,830,000

1.6%

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

10,700,000

4.4%

20,900,000

Real property

September 13, 2005

9,350,000

2.0%

Takanawadai Building(Shinagawa-ku, Tokyo)

Trust beneficiaryright in trust ofreal estate

September 25, 2001

2,738,000

0.6%

Higashi-Gotanda 1Chome Building(Shinagawa-ku, Tokyo)

Real property

November 1, 2004

5,500,000

1.2%

Omori-Eki Higashiguchi Building(Ota-ku, Tokyo)

Trust beneficiaryright in trust ofreal estate

September 10, 2001

5,123,000

1.1%Real property

March 24, 2004

6,670,000

1.4%Real property

April 1, 2004

8,700,000

1.8%Real property

November 22, 2002

4,885,000

1.0%Real property

October 9, 2003

12,200,000

2.6%Real property

November 30, 2001

34,600,000

7.2%

November 14, 2003
April 1, 2004
Total

3,740,000

Real property

February 28, 20058,500,000

1.8%

September 25, 2001

3,541,000

0.7%

September 25, 2001

1,728,000

0.4%

August 2, 2004

4,500,000

0.9%

Nippon Brunswick Building(Shibuya-ku, Tokyo)
Yoyogi 1Chome Building(Shibuya-ku, Tokyo)
da Vinci Harajuku(Shibuya-ku, Tokyo)
Jingumae Media Square Building(Shibuya-ku, Tokyo)
Shibuya Cross Tower(Shibuya-ku, Tokyo)
Ebisu Neonato(Shibuya-ku Tokyo)
Harmony Tower(Nakano-ku Tokyo)
Otsuka Higashi-Ikebukuro Building(Toshima-ku, Tokyo)
Ikebukuro 2Chome Building(Toshima-ku, Tokyo)
Ikebukuro YS Building(Toshima-ku, Tokyo)

Real property
Trust beneficiaryright in trust ofreal estate
Trust beneficiaryright in trust ofreal estate
Real property

8

Percentage
by area

360,000

0.9%

4,100,000

81.3%

Hachioji First Square(Hachioji City, Tokyo)
Tokyometropolitan
area(excluding 23wards)

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

3,300,000

September 25, 2001

3,375,000

0.7%

399,732,112

83.7%

83.7%

June 1, 2007

7,100,000

1.5%

1.5%

Real property

January 31, 2005

1,000,000

0.2%

Trust beneficiaryright in trust ofreal estate

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

2,924,000

Real property

Real property

Saitama Urawa Building(Saitama City, Saitama Prefecture)

Real property

Kawasaki Isago Building(Kawasaki City, Kanagawa Prefecture)

Trust beneficiaryright in trust ofreal estate

Total: Tokyo metropolitan area
Hokkaido

Tohoku region

8･3 Square Kita Building(Sapporo City, Hokkaido)
Jozenji Park Building(Sendai City, Miyagi Prefecture)
Sendai Honcho Honma
Building(Sendai City, Miyagi Prefecture)

Real property

2,379,112

1.2%

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

0.5%

2.4%

2,574,000

250,000

0.9%
0.7%

3,174,000
2,880,000
1,700,000
4,580,000

1.0%

3,850,000
1,300,000
5,150,000

1.1%

September 22, 2006

1,680,000

0.4%Real property

September 10, 2001

14, 533,000

3.0%Real property

August 8, 2003

1,865,000

0.4%Real property

December 20, 2001

2,650,000

0.6%

September 25, 2001
December 26, 2003
Total

2,264,000

Real Property
Trust beneficiaryright in trust ofreal estate

September 25, 2001

6,934,000

February 28, 2002
Total

14,314,000

Real property

February 1, 2006

4,650,000

March 25, 2004

1,320,000

March 3, 2008

1,450,000

Total

2,770,000

Real property

September 25, 2001

1,550,000

0.3%Real property

June 1, 2005

5,000,000

1.0%

Trust beneficiaryright in trust ofreal estate

September 10, 2001

3,657,000

0.8%

Total: Other major cities

77,837,000

16.3%

16.3%

Total: Portfolio

477,569,112

100.0%

100.0%

Hokuriku
regionChubu region

Kinki region

Kanazawa Park Building(Kanazawa City, Ishikawa Prefecture)

Real property

Nishiki Park Building(Nagoya City, Aichi Prefecture)

Real property

Hirokoji Sakae Building(Nagoya City, Aichi Prefecture)
Nagoya Hirokoji Building(Nagoya City, Aichi Prefecture)
Nagoya Misono Building(Nagoya City, Aichi Prefecture)
Kyoto Shijo Kawaramachi Building(Kyoto City, Kyoto Prefecture)
Sakaisujihonmachi Building(Osaka City, Osaka Prefecture)
Midosuji Daiwa Building(Osaka City, Osaka Prefecture)

Chugokuregion

Kyushu region

Lit City Building(Okayama City, Okayama Prefecture)
NHK Hiroshima Broadcasting CenterBuilding(Hiroshima City, HiroshimaPrefecture)
Tosei Tenjin Building(Fukuoka City, Fukuoka Prefecture)
Tenjin Crystal Building(Fukuoka City, Fukuoka Prefecture)
Hinode Tenjin Building(Fukuoka City, Fukuoka Prefecture)

Real property

1,900,000

4.9%

0.9%
4.4%

4,164,000

7,380,000

1.0%

3.0%

1.0%
1.6%
0.6%

2.1%

(Note) In addition to the assets outlined in the above list, 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 yen.

9