NEWS RELEASE

Japan Real Estate Investment Corporation

June 9, 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
Toru Kimura, General Manager, Planning Department
Phone: +81-3-3211-7921

Notice concerning Pre-payment of Loan and New Loan
Announcement is hereby made that on June 9, 2008, Japan Real Estate Investment Corporation
decided to procure funds through the following loan and make the pre-payment of the following
existing loan prior to the principal repayment date.
1. Pre-payment of loan
(1) Pre-payment dateJune 13, 2008
(2) Details of loan to be pre-paid before the due date1) Total amount of loan:¥3,000 million
2)

Lender:Shinsei Bank, Limited

3)

Interest rate:

0.8116% (from May 26, 2008 to June 23, 2008)

4)
5)

Start of the loan period:
Borrowing method:

6)

Interest payment date:

March 24, 2008
Loan based on overdraft agreement
Unsecured/non-guaranteed loan
24th of every month until the principal repayment date

7)

Repayment of principal:

Payment in full on the principal repayment date8)

Principal repayment date (scheduled):March 24, 2009

*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 the principal amount by adifference between 0.6616% (one-month Japanese Yen TIBOR announced by Japanese Bankers
Association (JBA) on May 22, 2008, percentage after the fourth decimal point is truncated) andthe one-week Japanese Yen TIBOR to be announced by JBA on June 11, 2008 (percentage afterthe fourth decimal point will be truncated), for the 11 days from June 13, 2008 (pre-paymentdate) to June 23, 2008 (a day prior to the next interest payment date) inclusive, calculated on aper-diem basis, assuming that there are 365 days per year. The break-funding cost amount will
be confirmed on June 11, 2008.
The estimated total break-funding cost is ¥54,246 for the total principal repayment of ¥3 billion,
as calculated based on the one-week Japanese Yen TIBOR announced by JBA as of June 9,2008.

2. New loan
(1) Reason for drawing down of the loan
To apply the funds toward pre-payment of the above-mentioned short-term loan
(2) Details of loan
1) Total amount of loan:¥3,000 million

2)

Lender:

The Hiroshima Bank, Ltd.

3)Interest rate:

To be determined (fixed)

4)

Start of the loan period:

June 13, 2008

5)

Borrowing method:

6)
7)
8)

Loan Agreement concluded on June 9, 2008
Unsecured/non-guaranteed loan
Interest payment date:
13th of June and December of every year
until the principal repayment date
Repayment of principal:
Payment in full on the principal
repayment datePrincipal repayment date (scheduled): June 14, 2010

3. Balance of interest-bearing debts after the pre-payment of the loan and the new loan (as ofJune 13, 2008)(Units: millions of yen)
Before new loan/After new
Increase/Decreasepre-payment
loan/pre-payment
Short-term loans
Current portion of long-termloans
Long-term loans
Total loans
Current portion of investment
corporation bonds
Investment corporation bonds(except for current portion)
Total investment corporation
bonds
Total interest-bearing debts

19,00016,000-3,000

7,000

7,000

±0

106,500

109,500+3,000132,500

132,500±000±045,000

45,000±045,000

45,000±0177,500

177,500±0

We will inform you of the interest rate once it has been determined.

This notice is the English translation of the announcement in Japanese dated June 9, 2008 on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of thisEnglish translation.