Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

May 20, 2024
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
2-6-1 Marunouchi, Chiyoda-ku, Tokyo
Representative: Keisuke Chiba, Executive Director
www.ichigo-office.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Yuji Kamo, Head of Ichigo OfficeTel: +81-3-4485-5231

Acquisition of Six Office Assets
Ichigo Office decided today to acquire three office assets in central Tokyo and three incentral Fukuoka.
Because the seller of the Ichigo Hakata Gion Building, Ichigo Tenjin North Building,
Ichigo Gotanda West Building, and Ichigo Otemachi North Building is a related party as
defined in the Investment Trust and Investment Corporation Law (1951 Law No. 198 andincluding afterward revisions, “Investment Law”), Ichigo Office carefully reviewed andapproved these four asset acquisitions at today’s Board of Directors meeting.
1. Asset Acquisition Summary
Total appraisal value: JPY 16.18 billion, Total acquisition price: JPY 15.466 billion
Asset Number
Asset Name1

O-102
Ichigo Akihabara East
Building

Asset Type
Date Built

O-103
Ichigo Hakata Meiji Dori
Building
OfficeMarch 1988

October 2007

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Appraisal Value2,3

JPY 3,370 million

JPY 3,460 million

Acquisition Price4

JPY 3,240 million

JPY 3,080 million

SellerGK Kizuna1

BrokerNone

Contract Date

May 20, 2024

Closing Date

May 30, 2024 (expected)
New Share Issuance via Third-Party Allotment,
Loans, & Cash-on-handLump-sum payment

Financing Method
Settlement Method

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

1Asset Number
Asset Name1

O-104
Ichigo Hakata
Gion Building

O-105
Ichigo Tenjin
North Building

O-107
Ichigo Otemachi
North Building

OfficeAsset Type
Date Built

O-106
Ichigo Gotanda
West Building

February 2009

October 1985

March 1985

February 2008

Legal Form of Asset

Trust beneficiary interest in real estate (juekiken)

Appraisal Value2,3

JPY 1,710 million JPY 1,570 million JPY 4,010 million JPY 2,060 million

Acquisition Price4

JPY 1,700 million JPY 1,550 million JPY 3,950 million JPY 1,946 million

SellerIchigo Estate

BrokerNone

Contract Date

May 20, 2024

Closing Date

May 30, 2024 (expected)

Financing Method

New Share Issuance via Third-Party Allotment, Loans, & Cash-on-handSettlement Method

Lump-sum payment

1

Ichigo Office will change the building names from the Ogaku Building, FORECAST
Hakata Gion Building, Tenjin First Building, and COCORO Gotanda to the Ichigo
Akihabara East Building, Ichigo Hakata Gion Building, Ichigo Tenjin North Building,and Ichigo Gotanda West Building, respectively, after the acquisitions. For purposes ofthis release, the buildings are referred to as the Ichigo Akihabara East Building, Ichigo
Hakata Gion Building, Ichigo Tenjin North Building, and Ichigo Gotanda West
Building.
2
Appraisal Values for the Ichigo Akihabara East Building, Ichigo Hakata Meiji Dori
Building, Ichigo Tenjin North Building, Ichigo Gotanda West Building, and Ichigo
Otemachi North Building are calculated by Tanizawa Sogo Appraisal as of May 1,
2024, and are in compliance with the appraisal guidelines of Ichigo Investment
Advisors (“IIA”) as well as the rules of the Investment Trusts Association of Japan.
3
Appraisal Value for the Ichigo Hakata Gion Building is calculated by Daiwa Real
Estate Appraisal as of May 1, 2024, and is in compliance with the appraisal guidelinesof IIA as well as the rules of the Investment Trusts Association of Japan.
4
Acquisition Price excludes incidental expenses such as fees and property, city
planning, and consumption taxes.
5
Please refer to today’s release “Issuance of New Shares via Third-Party Allotment” fordetails.
6
Please refer to today’s release “New Loans for Acquisition of Office Assets” fordetails.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

22. Acquisition Rationale
Ichigo Office has a target of consistently generating total returns to shareholders ofgreater than 8% per annum, and believes that the acquisition of high-quality mid-size
office assets with earnings upside and increasing asset values via value-add capex isessential to achieve this target.
As announced on April 26, 2024, Ichigo Office sold the Ichigo Ofuna Building on April
26, 2024 and is selling the Ichigo Kudan 2 Chome Building on October 31, 2024, and isusing the proceeds from the sales to finance the acquisition of six office assets (three incentral Tokyo and three in central Fukuoka) with earnings upside.
As a result of the asset sales and acquisitions, Ichigo Office’s portfolio will consist of 89
office assets, comprising 97.8% of the portfolio. Post-acquisition, Ichigo Office willdraw upon its operational capabilities to carry out value-add activities at the newly
acquired office assets to drive higher NAV per share, tenant satisfaction, and earnings
growth.
Ichigo Office has developed value-add plans for the newly acquired office assets in linewith each asset’s location and characteristics, as detailed in today’s release “April 26th
Asset Sales & Today's Asset Acquisitions Supplementary Material.”
Ichigo Office’s sponsor Ichigo (2337) is strengthening its sponsor commitment to its
listed J-REITs and solar power producer to drive growth and shareholder value. Of theassets being acquired, Ichigo Office is acquiring the Ichigo Akihabara East Building and
Ichigo Hakata Meiji Dori Building by exercising the preferential negotiation right itreceived to acquire underlying assets of the bridge fund created with the support of
Ichigo and its subsidiary Ichigo Estate, and is acquiring the Ichigo Hakata Gion
Building, Ichigo Tenjin North Building, Ichigo Gotanda West Building, and Ichigo
Otemachi North Building from Ichigo Estate.
The existing tenants of the assets being acquired satisfy the tenant standard stated in the“Financial Report (Yuka Shoken Hokokusho)” (Japanese only) disclosed on January 29,2024.
Please refer to Section 3 “Acquisition Details” below for additional details on each
asset’s features and characteristics that underpinned the acquisition decision.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

3

3. Acquisition Details
Notes to Acquisition Details
・ The location and description of each office are based on information obtained by
IIA via real estate appraisal reports, building evaluation reports, market reports, andpublicly available information on the builders’ websites.
・ Legal Form of Asset is a type of specified real estate asset.
・ Trustee refers to the trustee as of today or the expected trustee.
・ Period of Trust Contract refers to the trust period specified under the trust contract
as of Ichigo Office’s acquisition date.
・ Location refers to the postal address (or the location in the real estate registry (ifmultiple locations are available, one of the multiple locations) if a postal address is
not available) of the office.
・ Land and Building Property Rights refer to the type of right to be acquired by
Ichigo Office or the trustee.
・ Land Area is the land area in the real estate registry.
・ Zoning is the type of zoning stipulated in the City Planning Act Article 8, Clause 1,
Item 1.
・ Coverage Ratio is the ratio of the building to the land stipulated in the BuildingStandards Act Article 53, Clause 1, and is determined for each zone for city
planning purposes. An asset may have more than one coverage ratio.
・ Floor Area Ratio is the ratio of the building area to the land area stipulated in the
Building Standards Act Article 52, and is determined for each zone for city
planning purposes. An asset may have more than one floor area ratio.
・ Building Use refers to the main use included in the real estate registry.
・ Building Structure refers to the structure mentioned in the real estate registry. The
following abbreviations are used with regards to structure: RC stands for reinforced
concrete; SRC for steel-reinforced concrete; F for number of floors; and B for basement.
・ Total Floor Area refers to the total floor area in the real estate registry, and includes
the area of attached buildings.
・ Date Built refers to the date built in the real estate registry.
・ Appraiser refers to the author of the real estate appraisal report・ Appraisal Value, Appraisal Date, and Value by Direct Capitalization Method are
based on the real estate appraisal report from the Appraiser.
・ Names of the architect, builder, structural designer, and inspection agency are those
as of when the building was built.
・ Collateral refers to whether there is collateral after Ichigo Office’s acquisition.
・ Lease Details refer to the tenant lease contracts for each office, excluding the
Number of Tenants.
・ Number of Tenants, Rental Income, Deposit, Leasable Area, and Leased Area are
based on the lease contract and any other relevant memoranda of understanding
effective as of each office’s acquisition date.
・ Property Management Company refers to the property management companies
appointed to provide property management services for each office as of each
office’s acquisition date.
・ Master Lease Company refers to the master lease companies appointed to provide
master lease services for each office as of each office’s acquisition date.
・ Master Lease Type refers to the main type of master lease contract. Pass-throughrefers to when the rent amount paid by the tenant to the master lease company isequal to the rent paid by the master lease company, and Rent Guarantee refers towhen the master lease company pays a guaranteed rent, both under a master lease
contract effective as of each office’s acquisition date.
・ Special Items include items that significantly impact real estate rights and use,value, earnings, and disposal as of May 13, 2024.
Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

4

(1) Ichigo Akihabara East Building
1. Location
The Ichigo Akihabara East Building is located near Akihabara Station on the JR
Yamanote, Sobu, and Keihin Tohoku Lines, the Tsukuba Express Line, and the Tokyo
Metro Hibiya Line, which offers convenient access to the Tokyo Metropolitan area andvarious places within Tokyo. The area around the station developed as an electric townwith stores selling home electronics and electronic devices, and more recently, has
become a leading Japanese sub-culture hub that attracts both domestic shoppers andtourists.
The Showa Dori area on the east side of Akihabara Station is an attractive Central
Business District (CBD) and home to many mid-size office and retail buildings.
2. Building Features
The Ichigo Akihabara East Building is a mid-size office building located within a threeminute walk from Akihabara Station on the JR Yamanote and other JR Lines and a oneminute walk from Akihabara Station on the Tokyo Metro Hibiya Line.
The standard floor plate is 90 tsubo (297m2), and the building has OA sub-floors,individual air conditioning units, and 24 parking spaces, therefore catering to the needsof the average tenant.
The building is currently occupied by an IT company, a temp agency, and a franchisecoffee shop.
3. Building Photos and Location Map

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

5Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building Structure
Total Floor Area
Date Built

Asset Overview
Ichigo Akihabara East Building
Trust beneficiary interest in real estate (juekiken)
Sumitomo Mitsui Trust Bank, Ltd.
February 28, 2005 – May 31, 2034 (expected)
2-19 Kandasakumacho, Chiyoda-ku, Tokyo
Freehold
421.21m2
Commercial
80%
800% (600% for part of the building)Freehold
Office, Parking lot
Steel Reinforced Concrete, B1F/8F
2,776.30m2
March 22, 1988
Tanizawa Sogo Appraisal Co., Ltd.
JPY 3,370 million
May 1, 2024

Appraiser
Appraisal Value
Appraisal Date
Value by Direct Capitalization
JPY 3,550 million
MethodNAOI Architecture & Design OfficeArchitect
Sampei Construction Co., Ltd.
Builder
Structural Designer
NAOI Architecture & Design OfficeInspection Agency
Chiyoda Ward
Seismic PML (Assessor)
6.9% (Sompo Risk Management Inc.)
None
Collateral
Lease Details (as of March 31, 2024)
Number of Tenants
4Monthly Rental Income
JPY 11.193 million
Tenant Security Deposits
JPY 103.076 million
Leasable Area
2,100.93m2
Leased Area
2,100.93m2
Apr 2022 Oct 2022 Apr 2023 Oct 2023
Occupancy
100%
100%
100%
100%
Property Management
Ken Corporation Co., Ltd.
Company
Ichigo Office
Master Lease Company
Pass-through
Master Lease TypeMar 2024100%

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

6

Special Items
The boundary line between the road and the south side of the building has yet to be determined.
The south-side boundary line is expected to be pushed back towards the building by 20~30cm
from the L-shaped gutter along the road and any future reconstruction must be planned within
the finalized boundary, which is estimated to have an area of 414.65m2.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

7

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses

Ichigo Akihabara East Building
JPY 3,370,000,000
Tanizawa Sogo Appraisal Co., Ltd.
May 1, 2024
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and
3,370,000,000
verified using a direct capitalization
valuation
3,550,000,000
167,248,132
Based on expected long-term, stablerental income, common area service
177,864,349
income, parking lot income, and otherincomeBased on long-term, normalized
10,616,217
vacancy rates
38,978,713
9,529,818 Based on historical actual amounts
10,134,886 Based on historical actual amounts

Repair Expenses

Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
3,430,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

PM Fee2,187,844 Based on existing contractual fees

Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investment of
Deposits Received
CapitalExpenditure

Based on assumption that 10% of
tenants will change annually
11,367,300 Based on FY2023 actual amounts
Based on quotes from insurance
324,310companies
836,241 Based on historical actual amounts
1,168,314

128,269,419
704,889 Based on a 1.0% investment yield
Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
8,330,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

8

Net Profit

120,644,308

Cap Rate

3.4%

Value via DCF Method

3,290,000,000
Base rate adjusted for individual risks
assuming a holding period of ten years
3.6% Cap rate adjusted for uncertainties

Discount Rate

3.5%

Terminal Cap Rate
Value via Cost Approach
Ratio of Land
Ratio of Building

Based on transactions of similar assets
located in nearby areas

3,900,000,000
Land value divided by total land andbuilding value
Building value divided by total land
6.7%
and building value
Notes
93.3%

None
Note: Appraisal NOI Yield: 4.0% (calculated by dividing NOI by Acquisition Price)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

9(2) Ichigo Hakata Meiji Dori Building
1. Location
The Ichigo Hakata Meiji Dori Building is located in the Gofukucho area adjacent toFukuoka’s prime CBDs, the Hakata Station area and the Tenjin area. The area offers
convenient access to public transportation, including multiple subway lines and bus
routes.
Along Taihaku Dori and Meiji Dori, both major thoroughfares in the Gofukucho area, is
a commercial district with many high-rise office buildings.
The Gofukucho area is expected to see continued growth as recent years has seen newbuildings built in the vicinity along with ongoing new building constructions andredevelopment projects.
2. Building Features
The Ichigo Hakata Meiji Dori Building is a mid-size office building located within aone-minute walk from Gofukucho Station on the Fukuoka City Subway Hakozaki Lineand a four-minute walk from Nakasu Kawabata Station on the Kuko Line.
The standard floor plate is 155 tsubo (512m2) with a ceiling height of 2.9 meters, andthe building has OA sub-floors, individual air conditioning units, and 30 parking spaces,
therefore catering to the needs of the average tenant.
The building is currently occupied by a lighting equipment manufacturer, a financial
services company, and a pharmaceutical company.
3. Building Photos and Location Map

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

10Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building Structure
Total Floor Area
Date Built

Asset Overview
Ichigo Hakata Meiji Dori Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
July 30, 2015 – May 31, 2034 (expected)
8-17 Tenyamachi, Hakata-ku, Fukuoka City
Freehold
744.42m2
Commercial
80%600%
Freehold
OfficeSteel, 7F
4,514.87m2
October 1, 2007
Tanizawa Sogo Appraisal Co., Ltd.
JPY 3,460 million
May 1, 2024

Appraiser
Appraisal Value
Appraisal Date
Value by Direct Capitalization
JPY 3,680 million
MethodKume Sekkei Co., Ltd.
Architect
Taisei Corporation
Builder
Structural Designer
Kume Sekkei Co., Ltd.
Inspection Agency
The Building Center of Japan
Seismic PML (Assessor)
0.2% (Sompo Risk Management Inc.)
None
Collateral
Lease Details (as of March 31, 2024)
Number of Tenants
11
Monthly Rental Income
JPY 9.855 million
Tenant Security Deposits
JPY 83.681 million
Leasable Area
3,374.97m2
Leased Area
2,584.48m2
Apr 2022 Oct 2022 Apr 2023 Oct 2023 Mar 2024
Occupancy
97.1%
100%
100%
84.7%
76.6%
Property Management
Fukuoka Jisho Co., Ltd.
Company
Ichigo Office
Master Lease Company
Pass-through
Master Lease TypeSpecial Items
A fire equipment inspection indicates that three emergency light batteries need to be charged,
which the seller has agreed to rectify at the seller’s expense.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

11

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses

Ichigo Hakata Meiji Dori Building
JPY 3,460,000,000
Tanizawa Sogo Appraisal Co., Ltd.
May 1, 2024
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and3,460,000,000
verified using a direct capitalization
valuation
3,680,000,000
211,151,272
Based on expected long-term, stablerental income, common area service
222,696,603
income, parking lot income, and otherincomeBased on long-term, normalized
11,545,331
vacancy rates
55,710,730
11,380,399 Based on historical actual amounts
17,171,847 Based on historical actual amounts

Repair Expenses

Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
2,310,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

PM Fee4,857,934 Based on existing contractual fees

Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investment of
Deposits Received
CapitalExpenditure

Based on assumption that 10% of
tenants will change annually
16,839,100 Based on FY2023 actual amounts
Based on quotes from insurance
496,980
companies
1,055,756 Based on historical actual amounts
1,598,714

155,440,542
1,473,934 Based on a 1.0% investment yield
Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
6,160,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

12

Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Ratio of Land
Ratio of Building

150,754,476
Based on transactions of assets insurrounding area while taking into
4.1% account the asset’s location andspecific characteristics, and therelationship to discount rates
3,360,000,000
Based on risk-adjusted base yields of
4.2%
offices
Based on current NOI adjusted for
4.3%
future earnings fluctuation and risk
3,640,000,000
Land value divided by total land and
79.0%
building value
Building value divided by total land
21.0%
and building value
Notes

None
Note: Appraisal NOI Yield: 5.0% (calculated by dividing NOI by Acquisition Price)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

13

(3) Ichigo Hakata Gion Building
1. Location
The Gion area is one of Fukuoka City’s prominent office areas centered around Hakata
Station on the various JR Lines and Fukuoka City Subway Kuko Line, which is
expected to see office demand from major companies and large regional companies.
Gion Station is a four-minute train ride from Tenjin Station and a one-minute train ridefrom Hakata Station on the Fukuoka City Subway Kuko Line. Due to the March 2023
extension of the Fukuoka City Subway Nanakuma Line between Tenjin Minami Stationand Hakata Station and the launch of Kushida Jinjamae Station, which is a four-minute
walk from the Ichigo Hakata Gion Building, the building enjoys convenienttransportation and easy access to Fukuoka City’s CBDs.
The Ichigo Hakata Gion Building is located along Kokutai Avenue in a business district
lined with retail stores, office buildings with retail stores on the lower floors, temples,and business hotels. Kokutai Avenue leads to the Tenjin area, one of Fukuoka City’s
CBDs, and conveniently connects to Taihaku Dori, a prefectural road leading to the
Hakata exit (West exit) of Hakata Station.
2. Building Features
The Ichigo Hakata Gion Building is a mid-size office building located within a twominute walk from Gion Station on the Fukuoka City Subway Kuko Line and a fourminute walk from Kushida Jinjamae Station on the Fukuoka City Subway Nanakuma
Line.
The standard floor plate has a leasable area of 60 tsubo (c. 199m2) with individual air
conditioning units, machine security systems, and 26 parking spaces with an automatedparking system, catering to the needs of tenants looking for office space in this area.
Current tenants include a pharmacy, a building material wholesaler, and an advertising
company.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

14

3. Building Photos and Location Map

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

15

Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building

Structure
Total Floor Area
Date Built

Asset Overview
Ichigo Hakata Gion Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
May 30, 2024 – May 31, 2034 (expected)
4-61 Gionmachi Hakata-ku, Fukuoka
Freehold
401.17m2
Commercial
80% / 80%
500% / 400%
Freehold(1) Office, Retail (2) Parking lot(1) Steel, 9F(2) Steel, 1F(1) 1,973.57m2 (2) 41.07m2
February 27, 2009
Daiwa Real Estate Appraisal Co., Ltd.
JPY 1,710 million
May 1, 2024

Appraiser
Appraisal Value
Appraisal Date
Value by Direct Capitalization
JPY 1,810 million
MethodOkano Sekkei Co., Ltd
Architect
Tobishima Corporation, Kyushu Branch
Builder
Structural Designer
Okano Sekkei Co., Ltd
Inspection Agency
JAPAN ERI CO., LTD.
Seismic PML (Assessor)
0.1% (Sompo Risk Management Inc.)
None
Collateral
Lease Details (as of March 31, 2024)
Number of Tenants
12
Monthly Rental Income
JPY 5.069 million
Tenant Security Deposits
JPY 35.936 million
Leasable Area
1,632.29m2
Leased Area
1,436.05 m2
Apr 2022 Oct 2022 Apr 2023 Oct 2023
Occupancy
100%
100%
93.2%
100%
Property Management
XYMAX KYUSHU Corporation
Company
Ichigo Office
Master Lease Company
Pass-through
Master Lease TypeMar 202488.0%

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

16

Special Items
1. The concrete foundation of the building and that of the southeast neighbor encroaches eachother’s boundary. There is a memorandum of understanding with the southeast neighbor to
rectify the situation when the on-land structure is rebuilt or a renovation of the encroaching
objects is conducted in the future.
2. Paving stones and concrete foundation of the building encroaches each other’s boundary of
the northeast neighbor. There is a memorandum of understanding with the northeast
neighbor to rectify the situation when the on-land structure is rebuilt or a renovation of theencroaching objects is conducted in the future.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

17

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses

Ichigo Hakata Gion Building
JPY 1,710,000,000
Daiwa Real Estate Appraisal Co., Ltd.
May 1, 2024
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and
1,710,000,000
verified using a direct capitalization
valuation
1,810,000,000
101,916,075
Based on expected long-term, stablerental income, common area service
108,509,816
income, utility income, parking lot
income, and other income
Based on vacancy rates and tenant
6,593,741
turnover forecast
27,053,495
5,952,000 Based on historical actual amounts
4,740,096 Based on historical actual amounts

Repair Expenses

2,270,667

PM Fee1,947,560

Leasing Brokerage Fees

1,081,884

Taxes

9,846,000

Insurance Premiums

254,520

Other Expenses
Net Operating Income(NOI)
Income on Investment of
Deposits Received

960,768

CapitalExpenditure
Net Profit
Cap Rate

Based on the average of the past 12
years of engineering reports
Based on current contractual
agreements in reference to a rate on
similar assets
Based on tenant acquisition costs at
similar assets
Based on FY2024 actual amounts
Based on quotes from insurancecompanies
Based on historical actual amounts

74,862,580
674,456 Based on a 1.0% investment yield
4,967,417

Based on the average of the past 12
years of engineering reports

70,569,619
Based on transaction yields of officesin the area and an assessment of the
3.9%
asset’s location, its specificcharacteristics, and discount rates

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

18

Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Ratio of Land
Ratio of Building

1,670,000,000
Based on transactions of similar assets
and the yields of financial assets
Based upon current NOI adjusted for
4.1% expected marketability at the end ofownership period.
1,860,000,000
Land value divided by total land and76.1%
building value
Building value divided by total land
23.9%
and building value
Notes
3.7%

None
Note: Appraisal NOI Yield: 4.4% (calculated by dividing NOI by Acquisition Price)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

19

(4) Ichigo Tenjin North Building
1. Location
The Tenjin area is one of Fukuoka City’s highly-developed CBDs along with the
Hakata Station area, and is an area with where many large commercial facilities, such as
department stores and apparel retail buildings, are located along Watanabe Dori, thecity’s major thoroughfare, comprising Kyushu’s largest shopping district.
Like the Hakata Station area, the Tenjin area is a business destination for the entire
Kyushu region, with an established transportation network consisting of the Fukuoka
City Subway Kuko Line and Nanakuma Line, and the Nishitetsu Tenjin Omuta Line, as
well as local and express bus routes. The area is designated as a National StrategicSpecial Zone for “Global Startups and Job Creation," which is a large urban
development project that is expected to update urban functions by relaxing the floorarea ratio (up to 1,400%). Currently, several rebuilding projects are underway.
Multiple office building development projects are underway as well in the Tenjin 4chome area where the Ichigo Tenjin North Building is located, and older buildings are
expected to be rebuilt in order of building age going forward. As one of the major CBDs
in Fukuoka City, the area is expected to further develop in the future.
2. Building Features
The Ichigo Tenjin North Building is a mid-size office building located within a sixminute walk from Tenjin Station on the Fukuoka City Subway Kuko Line.
The standard floor plate has a leasable area of 65 tsubo (c. 215m2) with a ceiling heightof 2.45 meters, office automation floors, individual air conditioning units, and 32 spaces
with an automated parking system, catering to the needs of standard tenants in this area.
Current tenants include a pharmacy, an advertising company, and a call center.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

20

3. Building Photos and Location Map

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

21

Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building

Structure
Total Floor Area
Date Built

Asset Overview
Ichigo Tenjin North Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
October 12, 2021 – May 31, 2034 (expected)
4-6-28 Tenjin Chuo-ku, Fukuoka
Freehold
397.86m2
Commercial
80%500%
Freehold(1) Office, Residence (2) Parking lot(1) Steel Reinforced Concrete, Reinforced Concrete, 8F(2) Steel, 1F(1) 1,839.02m2 (2) 44.34m2
October 31, 1985
Tanizawa Sogo Appraisal Co., Ltd.
JPY 1,580 million
May 1, 2024

Appraiser
Appraisal Value
Appraisal Date
Value by Direct Capitalization
JPY 1,680 million
MethodSougen Kenchiku Sekkei OfficeArchitect
Matsuo Construction Co., Ltd.
Builder
Structural Designer
Sougen Kenchiku Sekkei OfficeInspection Agency
JCIA
Seismic PML (Assessor)
0.7% (Sompo Risk Management Inc.)
None
Collateral
Lease Details (as of March 31, 2024)
Number of Tenants
16
Monthly Rental Income
JPY 5.417 million
Tenant Security Deposits
JPY 38.135 million
Leasable Area
1,475.75m2
Leased Area
1,475.75 m2
Apr 2022 Oct 2022 Apr 2023 Oct 2023
Occupancy
80.6%
90.2%
100%
100%
Property Management
OHI Co., Ltd.
Company
Ichigo Office
Master Lease Company
Pass-through
Master Lease TypeMar 2024100%

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

22

1.

2.

3.

4.

Special Items
The steel gate of the building and its frame and electric cables, and part of the building
equipment (outdoor air conditioning units, power distribution cables, oven covers) of thenorthwest neighbor’s property encroach each other’s boundary (including cross-boundary
in midair). There is a memorandum of understanding with the northwest neighbor to rectify
the situation when the buildings or building equipment are demolished or rebuilt in the
future.
The drainspout (pipe), steel gate, and its frame of this property, and part of the building
equipment (exhaust ducts, power distribution cables, range covers) of the east neighbor’s
property encroach each other’s boundary. There is a memorandum of understanding withthe east neighbor to rectify the situation when the building is demolished or rebuilt in the
future.
Although no inspection certificate was issued for the building when it was newly built, aninspection certificate was issued when the bicycle parking lot was expanded in December
2020. In addition, as a result of a conformity assessment survey regarding various
provisions of the Building Standard Law, a "Building Standard Law Conformity Status
Survey Report" was obtained from JCIA on September 4, 2020.
One tenant (leased area: 74.87m2) moved out on March 31, 2024. Another tenant (leased
area: 86.80m2) moved out on April 30, 2024, due to the termination of the fixed-term lease
contract. Occupancy decreased from 100% to 89.0% as a result.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

23

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses

Ichigo Tenjin North Building
JPY 1,570,000,000
Tanizawa Real Estate Appraisal Co., Ltd.
May 1, 2024
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and1,580,000,000
verified using a direct capitalization
valuation
1,670,000,000
96,716,234
Based on expected long-term, stablerental income, common area service
104,029,825
income, utility income, parking lot
income, and other income
Based on vacancy rates and tenant
7,313,591
turnover forecast
22,880,677
4,285,578 Based on historical actual amounts
6,428,367 Based on historical actual amounts

Repair Expenses

Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
3,280,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

PM Fee2,527,168

Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investment of
Deposits Received
CapitalExpenditure

Based on property management
proposal

Based on assumption that 10% of
tenants will change annually
5,118,600 Based on FY2023 actual amounts
Based on quotes from insurance
259,900
companies
193,432 Based on historical actual amounts
787,632

73,835,557
540,136 Based on a 1.0% investment yield
Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
7,380,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

24

Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Ratio of Land
Ratio of Building

66,995,693
Based on transaction yields of officesin the area and an assessment of the
4.0%
asset’s location, its specificcharacteristics, and discount rates
1,530,000,000
Based on risk-adjusted base yields
4.1%
of offices
Based upon current NOI adjusted for
4.2%
future earnings fluctuation and risk
1,530,000,000
Land value divided by total land and87.1%
building value
Building value divided by total land
12.9%
and building value
Notes

None
Note: Appraisal NOI Yield: 4.8% (calculated by dividing NOI by Acquisition Price)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

25

(5) Details of the Ichigo Gotanda West Building
1. Location
In the Gotanda area, an office and entertainment district expands from the east side ofGotanda Station where the JR Yamanote Line, Tokyu Ikegami Line, and Toei Subway
Asakusa Line comes in. The west side of Gotanda Station is a commercial district withhead offices of many major companies, branches of financial institutions, andrestaurants. The east side of the station is a high-end residential district where foreignembassies and consulates are located. In recent years, many new high-rise
condominiums and office buildings have been built in this area.
Due to its convenient access to the three lines mentioned above, attractive rents
compared to those in the Shinagawa and Osaki areas, and a variety of restaurants andretail stores, the area is expected to see continued office demand in the future. Sincemany buildings are located close to the train station compared to those in the Shibuya
and Ebisu areas, the Gotanda area has seen the establishment or relocation oftechnology start-ups in recent years.
In the vicinity of the Ichigo Gotanda West Building, office buildings are concentrated
along the north side of the municipal street, making this area particularly efficient forbusiness operations, and thus the area maintains stable office demand. Demand fromrestaurant operators and retailers can also be expected due to the area’s proximity toGotanda Station and the large population of workers.
2. Building Features
The Ichigo Gotanda North Building is a mid-size office building located within a 4minute walk from Gotanda Station on the JR Yamanote Line, Tokyu Ikegami Line, andToei Subway Asakusa Line.
The standard floor plate has a leasable area of 120 tsubo (c. 396m2) with a ceiling heightof 2.4 meters, individual air conditioning units, and automated office floors, catering to
the needs of standard tenants in this area.
The building houses a grocery store on the ground floor, and tenants on the upper floors
include a game app developer and a systems developer.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

26

3. Building Photos and Location Map

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

27

Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building Structure
Total Floor Area
Date Built

Asset Overview
Ichigo Gotanda West Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
May 30, 2024 – May 31, 2034 (expected)
2-18-3 Nishi Gotanda Shinagawa-ku, Tokyo
Freehold
516.45 m2
Commercial
80%700%
Freehold
Retail, Garage, Office
Steel Reinforced Concrete, B1/8F
3,463.56m2
March 23, 1985
Tanizawa Sogo Appraisal Co., Ltd.
JPY 4,010 million
May 1, 2024

Appraiser
Appraisal Value
Appraisal Date
Value by Direct Capitalization
JPY 4,130 million
MethodAoki Fumihiko Kenchiku Sekkei OfficeArchitect
Fujita Corporation
Builder
Structural Designer
Aoki Fumihiko Kenchiku Sekkei OfficeInspection Agency
Shinagawa Ward
Seismic PML (Assessor)
9.2% (Sompo Risk Management Inc.)
None
Collateral
Lease Details (as of March 31, 2024)
Number of Tenants
7
Monthly Rental Income
JPY 11.957 million
Tenant Security Deposits
JPY 72.878 million
Leasable Area
2,735.34m2
Leased Area
2,335.80m2
Apr 2022 Oct 2022 Apr 2023 Oct 2023 Mar 2024
Occupancy
75.9%
75.9%
75.9%
75.6%
85.4%
Property Management
The Dai-ichi Building Co., Ltd.
Company
Ichigo Office
Master Lease Company
Pass-through
Master Lease TypeSpecial Items
1. The structure and fence on the land encroach the boundary of the east neighbor of thebuilding. There is a memorandum of understanding with the east neighbor not to encroach
the boundary when the structure on the land is reconstructed in the future.
Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

28

2. The inspection of fire-fighting equipment indicated that the water call tank needs to be
replaced due to the corrosion of the water call tank in the indoor fire hydrant system. The
seller agreed to rectify the problem at its own responsibility within 4 months from theacquisition date.
3. UGS malfunctions were found in the electrical inspection. The seller has agreed to rectify
the malfunctions, at its own responsibility and expense, within 4 months of the acquisition
date.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

29

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses

Repair Expenses

PM FeeLeasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investment of
Deposits Received
CapitalExpenditure

Net Profit

Ichigo Gotanda West Building
JPY 4,010,000,000
Tanizawa Real Estate Appraisal Co., Ltd.
May 1, 2024
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and
4,010,000,000
verified using a direct capitalization
valuation
4,130,000,000
199,869,346
Based on expected long-term, stablerental income, common area service
209,969,743
income, parking lot income, and otherincomeBased on long-term, normalized
10,100,397
vacancy rates
47,763,454
Based on property management
8,107,548
proposal
16,379,216 Based on historical actual amounts
Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
3,510,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations
Based on property management
4,309,811
proposal
Based on assumption that 10% of
tenants will change annually
13,355,000 Based on FY2023 actual amounts
Based on quotes from insurance
383,960
companies
1,518,050

199,869 Based on historical actual amounts
152,105,892
1,292,805 Based on a 1.0% investment yield
Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
8,775,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations
144,623,697

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

30

Cap Rate
Value via DCF Method

3.5%

Based on transactions of similar assets
located in nearby areas

3,960,000,000
Base rate adjusted for individual risks
assuming a holding period of ten years

Discount Rate

3.6%

Terminal Cap Rate

3.7% Cap rate adjusted for uncertainties

Value via Cost Approach
Ratio of Land
Ratio of Building

3,820,000,000
Land value divided by total land andbuilding value
Building value divided by total land
9.6%
and building value
Notes
90.4%

None
Note: Appraisal NOI Yield: 3.9% (calculated by dividing NOI by Acquisition Price)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

31

(6) Details of the Ichigo Otemachi North Building
1. Location
The Uchikanda area is located north of the Otemachi area, a major office district incentral Tokyo. The area has easy access to various areas in Tokyo through the use of JR
and subway lines. On the back of attractive rents relative to other areas in the Chiyoda
ward, which is the center of Tokyo’s 23 wards, the Uchikanda area supplements
demand for high-end areas such as Marunouchi and Otemachi.
The neighborhood of the Ichigo Otemachi North Building is a commercial district
where high-rise office buildings, office buildings with retail stores on the lower floors,
and apartment buildings are located.
2. Building Features
The Ichigo Otemachi North Building is a mid-size office building located within a 6minute walk from Kanda Station on the JR Yamanote Line, and a 3-minute walk from
Awajicho Station on the Tokyo Metro Marunouchi Line and Ogawamachi Station on
the Toei Shinjuku Line.
The standard floor plate has a leasable area of 31 tsubo (c. 103m2) with a ceiling heightof 2.55meters, individual air conditioning units, and automated office floors, catering to
the needs of standard tenants in this area.
Current tenants include a publisher, a travel agent, and an electronic appliancemanufacturer.
3. Building Photos and Location Map

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

32

Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building Structure
Total Floor Area
Date Built

Asset Overview
Ichigo Otemachi North Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
July 30, 2015 – May 31, 2034 (expected)
1-15-7 Uchikanda Chiyoda-ku, Tokyo
Freehold
220.94m2
Commercial
80%600%
Freehold
Office, Retail
Steel, 12F
1,314.80m2
February 27, 2008
Tanizawa Sogo Appraisal Co., Ltd.
JPY 2,060 million
May 1, 2024

Appraiser
Appraisal Value
Appraisal Date
Value by Direct Capitalization
JPY 2,130 million
MethodFreecs Co., Ltd. First Class Architect OfficeArchitect
Mabuchi Construction Co., Ltd.
Builder
Structural Designer
Freecs Co., Ltd. First Class Architect OfficeInspection Agency
Good-eyes
Seismic PML (Assessor)
4.7% (Sompo Risk Management Inc.)
None
Collateral
Lease Details (as of March 31, 2024)
Number of Tenants
11
Monthly Rental Income
JPY 6.019 million
Tenant Security Deposits
JPY 49.413 million
Leasable Area
1,237.43m2
Leased Area
1,153.96m2
Apr 2022 Oct 2022 Apr 2023 Oct 2023 Mar 2024
Occupancy
–
91.5%
91.5%
91.5%
93.3%
Property Management
Sun Frontier Fudosan Co., Ltd.
Company
Ichigo Office
Master Lease Company
Pass-through
Master Lease TypeSpecial Items
1. In the soil survey (Phase 2) conducted in 2016 by Sompo Risk Management Inc., it was
confirmed that the soil content of lead, a Class II Specified Hazardous Substance (heavy
metal, etc.) as defined by the Soil Contamination Countermeasures Law, exceeded theDisclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

33

standard level on part of the land. However, as a result of due diligence by Ichigo Office on
the soil survey, the engineering report confirms that the groundwater of the land is not usedas drinking water and the area where people enter and exit the property is paved withconcrete, so the risk of health hazard is considered low. In preparation for future soil
contamination remediation costs, Ichigo Office plans to record an asset removal obligation(JPY 7 million) in the October 2024 fiscal period. The expected soil contamination
remediation cost was deducted from the initially offered price.
2. A lease termination notification was received from one of the tenants (leased area:
105.45m2 ) on April 24, 2024 for an effective termination date of October 31, 2024, andanother lease termination notification was received on April 4, 2024 for an effective
termination date of December 31, 2024, after which occupancy is expected to be 76.2%.
Note: Since the owner of the building as of April 2022 is a third party with no special
relationship to Ichigo Office or IIA, occupancy is not disclosed.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

34

Appraisal Details
Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct Capitalization
MethodIncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses

Repair Expenses

Ichigo Otemachi North Building
JPY 2,060,000,000
Tanizawa Real Estate Appraisal Co., Ltd.
May 1, 2024
Amount (JPY)Note
Calculated using an income approach,with a DCF valuation as a basis and2,060,000,000
verified using a direct capitalization
valuation
2,130,000,000
91,092,685
Based on expected long-term, stablerental income, common area service
95,881,772
income, parking lot income, and otherincomeBased on long-term, normalized
4,789,087
vacancy rates
19,558,521
Based on property management
4,172,614
proposal and MR
5,390,245 Based on historical actual amounts
Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
720,000
Expenditure) allocation based on the
Corporate Tax Law Basic Interpretive
Regulations

PM Fee1,719,439

Leasing Brokerage Fees

1,482,758

Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investment of
Deposits Received

Based on property management
proposal

Based on assumption that 10% of
tenants will change annually
5,738,000 Based on FY2023 actual amounts
Based on quotes from insurance
153,280
companies
Based on actual amounts and
182,185transactions in similar assets
71,534,164
664,443 Based on a 1.0% investment yield

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

35

Capital
Expenditure

Based on engineering reports,
reference to similar assets, and a 3:7(Repair Expenses: Capital
Expenditure) allocation based on the4,128,980
Corporate Tax Law Basic Interpretive
Regulations (including pre-setup
interior construction and furniture
costs of JPY 2,448,980)

Net Profit

68,069,627

Cap Rate

3.2%

Value via DCF Method

Based on transactions of similar assets
located in nearby areas

2,030,000,000
Base rate adjusted for individual risks
assuming a holding period of ten years

Discount Rate

3.3%

Terminal Cap Rate

3.4% Cap rate adjusted for uncertainties

Value via Cost Approach
Ratio of Land
Ratio of Building

1,850,000,000
Land value divided by total land andbuilding value
Building value divided by total land
17.3%
and building value
Notes
82.7%

None
Note: Appraisal NOI Yield: 3.7% (calculated by dividing NOI by Acquisition Price)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

36

4. Seller Profile(1) Ichigo Akihabara East Building, Ichigo Hakata Meiji Dori Building
Name
Address

GK Kizuna1

Representative

Managing Member: Ippan Shadan Hojin IES2Manager: Kenta Itoi

Business

1. Investment in trust beneficiary interests in real estate(juekiken)
2. Acquisition, development, holding, management, and sale ofreal estate
3. Other businesses relating to the aforementioned businesses

Paid-In Capital

JPY 100,000

Establishment Date

January 4, 2022

Total Assets

JPY 6,640 million (As of December 31, 2023)

Net Assets

JPY 3,043 million (As of December 31, 2023)

Relationship to
Ichigo Office or
Ichigo Investment
Advisors (IIA)

Although the seller is not a related party as defined in the Act on
Investment Trusts and Investment Corporations, it is a related
party as defined in the internal rules of IIA, because it receives
asset management services from Ichigo Estate, which is a related
party as defined in the Act on Investment Trusts and Investment
Corporations.

2-6-1 Marunouchi, Chiyoda-ku, Tokyo

Note: Because GK Kizuna1 is a related party as specified in IIA’s internal rules, Ichigo
Office fully implemented its related party transaction procedures and received approval
from its Board of Directors. Ichigo Office has obtained third-party appraisals on theacquired assets and has cross-checked the third-party appraisals with additional thirdparty second opinion appraisals.
(2) Ichigo Hakata Gion Building, Ichigo Tenjin North Building, Ichigo Gotanda West
Building, Ichigo Otemachi North Building
Name
Address

Ichigo Estate

Representative

Representative Director & President Yasuhide Hosono

CapitalJPY 500 million

Establishment Date

November 10, 2005

Business

Sustainable real estate, preserving and improving existing realestateNet Assets

JPY 23,876 million (As of February 28, 2023)

Total Assets
Major Shareholder
and Shareholding
Ratio

JPY 110,605 million (As of February 28, 2023)

2-6-1 Marunouchi, Chiyoda-ku, Tokyo

Ichigo 100% (as of February 28, 2024)

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

37

Relationship to
Ichigo Estate is a related party as defined in the Enforcement
Ichigo Office orOrdinance of the Investment Trust and Investment Corporation
Ichigo Investment
Law and the internal rules of IIA.
Advisors (IIA)
Note: Because Ichigo Estate is a related party as defined in the Enforcement Ordinanceof the Investment Trust and Investment Corporation Law, Ichigo Office fully
implemented its related party transaction procedures and received approval from its
Board of Directors. Ichigo Office has obtained third-party appraisals on the acquired
assets and has cross-checked the third-party appraisals with additional third-party
second opinion appraisals.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

38

5. Ownership History
Asset Name

Ichigo Akihabara East Building
Current Owner

Name

GK Kizuna1

Please see “Seller
Relationship with
Profile” in Section 4
Ichigo Office(1).

Acquisition
Rationale
Acquisition Price
Acquisition Date

Investment

Previous Owner
GK Cosmos
Although the previous owner is
not a related party as defined in
the Act on Investment Trusts
and Investment Corporations, it
is a related party as defined in
IIA’s internal rules given that
Ichigo, IIA’s 100% shareholder,is the previous owner’s soleinvestor and the previous ownerreceives asset management
advice from Ichigo Estate,
which is a related party as
defined in the Act on Investment
Trusts and Investment
Corporations.
GK Cosmos has already been
dissolved and the liquidation
proceedings have been
completed.
Investment

Omitted as ownership Omitted as ownership exceeds
exceeds one year
one year
January 31, 2022
February 28, 2018

Asset Name

–

–
–
–

Ichigo Hakata Meiji Dori Building
Current Owner

Name

Owner Before
Previous Owner
Unrelated Party

GK Kizuna1

Please see “Seller
Relationship with
Profile” in Section 4
Ichigo Office(1).

Previous Owner
GK Kichijoji Holdings
Although the previous owner is
not a related party as defined in
the Act on Investment Trusts
and Investment Corporations, it
is a related party as defined in
IIA’s internal rules given that
Ichigo, IIA’s 100% shareholder,is the previous owner’s soleinvestor and the previous ownerreceives asset management
advice from Ichigo Estate,
which is a related party as
defined in the Act on Investment
Trusts and Investment
Corporations.

Owner Before
Previous Owner
Unrelated Party–

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

39

Acquisition
Rationale
Acquisition Price
Acquisition Date

Investment

Investment–

Omitted as ownership Omitted as ownership exceeds
exceeds one year
one year
January 31, 2022
July 30, 2015––

Asset Name

Ichigo Hakata Gion Building
Current Owner
Previous Owner
Name
Ichigo Estate
Unrelated Party
Relationship with Please see “Seller Profile” in Section 4–
Ichigo Office(2).
Acquisition
Investment–
Rationale
Acquisition Price

Omitted as ownership exceeds one year–

Acquisition Date

November 10, 2021–

Asset Name

Ichigo Tenjin North Building
Current Owner
Previous Owner
Name
Ichigo Estate–
Relationship with Please see “Seller Profile” in Section 4–
Ichigo Office(2).
Acquisition
Investment–
Rationale
Acquisition Price

Omitted as ownership exceeds one year–

Acquisition Date

October 12, 2021–

Asset Name

Ichigo Gotanda West Building
Current Owner
Previous Owner
Name
Ichigo Estate–
Relationship with Please see “Seller Profile” in Section 4–
Ichigo Office(2).
Acquisition
Investment–
Rationale
Acquisition Price

Omitted as ownership exceeds one year–

Acquisition Date

March 29, 2019–

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

40

Asset Name

Ichigo Otemachi North Building
Current Owner
Previous Owner
Name
Ichigo Estate–
Relationship with Please see “Seller Profile” in Section 4–
Ichigo Office(2).
Acquisition
Investment–
Rationale
Acquisition Price

Omitted as ownership exceeds one year–

Acquisition Date

May 11, 2022–

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

41

6. Broker Profile
N/A
7. Acquisition ScheduleMay 20, 2024

Acquisition Decision Date
Contract Date
Closing Date

May 20, 2024
May 30, 2024 (expected)

8. Earnings Impact
The impact of the acquisition on Ichigo Office’s October 2024 fiscal period earnings isannounced in today’s release, “Upward Earnings Forecast Revision for the October
2024 Fiscal Period.”
Ichigo Office will announce the April 2025 fiscal period earnings forecast together with
the April 2024 fiscal period earnings results scheduled in mid-June.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

42

Reference
1. Earnings Profile of Asset Being Acquired(1) Ichigo Akihabara East Building(JPY million)
Forecast1

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

At Acquisition2
169

152

36

37

132

114

D. NOI Yield4

4.1%

3.5%

E. Depreciation530

13

F. Post-depreciation NOI (C-E)

102

100

G. Post-depreciation NOI Yield4

3.2%

3.1%

H. Occupancy6

97.0%

100%

(2) Ichigo Hakata Meiji Dori Building(JPY million)
Forecast1

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

At Acquisition2
222

140

57

52

164

88

D. NOI Yield4

5.4%

2.9%

E. Depreciation5

59

32

105

55

G. Post-depreciation NOI Yield

3.4%

1.8%

H. Occupancy6

96.0%

76.6%

F. Post-depreciation NOI (C-E)
4Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

43

(3) Ichigo Hakata Gion Building(JPY million)
Forecast1

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

At Acquisition2
96

79

20

23

76

55

D. NOI Yield4

4.5%

3.3%

E. Depreciation5

19

15

F. Post-depreciation NOI (C-E)

57

40

G. Post-depreciation NOI Yield4

3.4%

2.4%

H. Occupancy6

96.0%

88.0%

(4) Ichigo Tenjin North Building(JPY million)
Forecast1

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

At Acquisition2
92

75

19

21

72

53

D. NOI Yield4

4.7%

3.5%

E. Depreciation5

22

10

F. Post-depreciation NOI (C-E)

50

43

G. Post-depreciation NOI Yield4

3.3%

2.8%

H. Occupancy6

96.0%

100%

(5) Ichigo Gotanda West Building(JPY million)
Forecast1

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

At Acquisition2
224

169

43

45

180

123

D. NOI Yield4

4.6%

3.1%

E. Depreciation5

22

17

F. Post-depreciation NOI (C-E)

157

106

G. Post-depreciation NOI Yield4

4.0%

2.7%

H. Occupancy6

97.0%

85.4%

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

44

(6) Ichigo Otemachi North Building(JPY million)
Forecast1

At Acquisition2

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

102

81

18

19

83

62

D. NOI Yield4

4.3%

3.2%

E. Depreciation5

16

10

F. Post-depreciation NOI (C-E)

66

51

G. Post-depreciation NOI Yield4

3.4%

2.6%

H. Occupancy6

97.0%

93.3%

1

Amounts exclude one-off factors in the year of acquisition and are calculated based on
current and future anticipated fluctuations in occupancy. Earnings shown above are notbased on assumptions provided in today’s release “Upward Earnings Forecast Revision
for the October 2024 Fiscal Period,” and annual earnings estimates above may deviate
from actual results.
2
Shows first-year amounts used to calculate the DCF-based valuation, excluding one-off
factors in the year of acquisition.
3
Rental Expenses include incidental expenses such as service provider fees, taxes,
maintenance and repair fees, insurance premiums, and other fees.
4
Calculated based on Acquisition Price.
5
Depreciation is as estimated by Ichigo Office using the straight-line method.
6
Occupancy at acquisition is as of March 31, 2024.
2. Engineering Report Summary
Asset Name

IchigoIchigo Hakata Ichigo Hakata Ichigo Tenjin
IchigoAkihabara
Meiji Dori
Gion
North
Gotanda West
East Building
Building
Building
Building
Building

Inspector
Name

Tokio Marine dR Co., Ltd

Inspection
March 2024
Date
Short-Term
Repair
–1
ExpensesLong-Term
JPY 129.258
Repairmillion2
Expenses
Current
JPY 979
Replacement
millionCost
1

IchigoOtemachiNorth
Building

March 2024

March 2024

March 2024

March 2024

March 2024

–

–

–

–

–

JPY 86.674
millionJPY 86.857
millionJPY 132.612
millionJPY 139.190
millionJPY 26.768
millionJPY 1,541
millionJPY 792
millionJPY 818
millionJPY 1,169
millionJPY 453
million

Short-Term Repair Expenses are defined as repair expenses beyond the scope ofordinary maintenance within a year from the time of inspection.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

45

2Long-Term Repair Expenses are defined as cumulative repair expenses considerednecessary for the maintenance of the asset within 12 years from the time ofinspection.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

46

3. Post-Acquisition Portfolio1
No.
O-02
O-03
O-04
O-05
O-06
O-07
O-09
O-10
O-11
O-12
O-14
O-15
O-16
O-17
O-19
O-20
O-21
O-22
O-23
O-24
O-26

Area2

Asset Name

O-27
O-28
O-29

Ichigo Nishisando Building
Ichigo Mita Building
Ichigo Nanpeidai Building
Ichigo Hanzomon Building
Ichigo Hijirizaka Building
Ichigo Shibuya Kamiyamacho Building
Ichigo Shibakoen Building
Ichigo Ebisu Nishi Building
Ichigo Ginza 612 Building
Ichigo Uchikanda Building
Ichigo Yotsuya 4 Chome Building
Ichigo Tameike Building
Ichigo Jimbocho Building
Ichigo Hakozaki Building
Ichigo Kudan 3 Chome Building
Ichigo Gotanda Building
Ichigo Shin Yokohama Building
Ichigo Minami Ikebukuro Building
Ichigo Nakano North Building
Ichigo Eitai Building
Ichigo Ikejiri Building
Ichigo Nishi Ikebukuro Building
Ichigo Nishi Gotanda Building
Ichigo Kichijoji Building

O-34

Ichigo Sakae Building

O-37

Ichigo Marunouchi Building

O-38
O-39
O-42
O-46
O-47

Ichigo Toyamaeki Nishi Building
Ichigo Mirai Shinkin Building
Ichigo Takamatsu Building
Ichigo Kanda Nishikicho Building
Ichigo Akihabara North Building

O-48

Ichigo Sakaisuji Honmachi Building

O-49
O-50

Ichigo Kanda Ogawamachi Building
Ichigo Hatchobori Building

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major Regional
CitiesFour Major Regional
CitiesOther Regional Cities
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Four Major Regional
CitiesCentral Tokyo
Central Tokyo

Acquisition
Price(JPY million)% ofPortfolio3

3,254
2,740
1,920
1,550
1,200
1,505
1,100
1,917
1,773
1,140
550
580
1,820
1,150
844
5,060
1,816
1,460
764
1,490
2,030
639
765
2,160

1.4
1.2
0.9
0.7
0.5
0.7
0.5
0.9
0.8
0.5
0.2
0.3
0.8
0.5
0.4
2.2
0.8
0.6
0.3
0.7
0.9
0.3
0.3
1.0

4,705

2.1

6,710

3.0

1,645
1,158
3,010
2,130
5,500

0.7
0.5
1.3
0.9
2.4

1,940

0.9

2,210
1,905

1.0

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

47

0.8

No.

Area2

Asset Name

O-51
O-52
O-53
O-54
O-55
O-57
O-58
O-59
O-60
O-61
O-62
O-63
O-64
O-65
O-66
O-67
O-68
O-69
O-70
O-71
O-72
O-73

Ichigo Ebisu Green Glass
Ichigo Omori Building
Ichigo Takadanobaba Building
Ichigo Omiya Building
Ichigo Sagamihara Building
Ichigo Sendai East Building
Ichigo Kumamoto Building
Ichigo Jingumae Building
Ichigo Shibuya Dogenzaka Building
Ichigo Hiroo Building
Ichigo Sasazuka Building
Ichigo Nihonbashi East Building
Ichigo Sakurabashi Building
Ichigo Shinkawa Building
Ichigo Kudan Building
Ichigo Higashi Gotanda Building
Axior Mita
Ichigo Higashi Ikebukuro Building
Koriyama Big-i (Office Section)
Ichigo Kawasaki Building
Ichigo Shibuya East Building
Ichigo Ningyocho Building

O-74

Ichigo Nishi Honmachi Building

O-75

Ichigo Hakata Building

O-76

Ichigo Nishiki First Building

O-78
O-79
O-80

Ichigo Ikebukuro East Building
Ichigo Motoazabu Building
Ichigo Otsuka Building

O-81

Ichigo Nagoya Building

O-82

Ichigo Fushimi Building

O-83

Ichigo Nishiki Building

O-84

Ichigo Minami Morimachi Building

O-85
O-86

Ichigo Shibuya Udagawacho Building
Win Gotanda Building

Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Tokyo Metro Area
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Other Regional Cities
Tokyo Metro Area
Central Tokyo
Central Tokyo
Four Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesTokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesCentral Tokyo
Central Tokyo

Acquisition
Price(JPY million)% ofPortfolio3

5,900
3,850
1,580
3,430
1,174
1,840
1,450
7,200
3,650
3,960
4,780
4,700
2,500
2,360
3,190
3,660
1,800
4,570
1,660
1,750
1,350
1,450

2.6
1.7
0.7
1.5
0.5
0.8
0.6
3.2
1.6
1.8
2.1
2.1
1.1
1.0
1.4
1.6
0.8
2.0
0.7
0.8
0.6
0.6

2,190

1.0

1,380

0.6

2,000

0.9

3,010
1,890
2,740

1.3
0.8
1.2

3,420

1.5

2,340

1.0

1,330

0.6

1,040

0.5

3,500
3,100

1.6
1.4

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

48

No.
O-87
O-88
O-89
O-90

Ichigo Hongo Building
Oimachi Center Building
Win Gotanda Building 2
MIF Building

O-91

Ichigo Uchi Honmachi Building

O-92
O-93

Ichigo Minami Otsuka Building
Ichigo Nogizaka Building

O-94

Ichigo Hakata East Building

O-95
O-96

Ichigo Nakameguro Building
Ichigo Tachikawa Building
Ichigo Higashi Ikebukuro 3 Chome
Building

O-97
O-98
O-99
O-100
O-101
O-102
O-103
O-104
O-105
O-106
O-107
Z-09
Z-10
Z-14

Acquisition
Price(JPY million)% ofPortfolio3

Tokyo Metro Area
Central Tokyo
Central Tokyo
Central Tokyo
Four Major Regional
CitiesTokyo Metro Area
Central Tokyo
Four Major Regional
CitiesTokyo Metro Area
Tokyo Metro Area

2,300
1,680
3,300
2,200

1.0
0.7
1.5
1.0

1,900

0.8

2,780
3,315

1.2
1.5

2,250

1.0

1,495
3,830

0.7
1.7

Tokyo Metro Area

3,840

1.7

1,750

0.8

3,500

1.6

2,750

1.2

1,875
3,240

0.8
1.4

3,080

1.4

1,700

0.8

1,550

0.7

3,950
1,946
220,115
1,210
2,400

1.8
0.9
97.8
0.5
1.1
0.6
2.2
100

Area2

Asset Name

Four Major Regional
CitiesFour Major Regional
Ichigo Hakataeki Higashi Building
CitiesFour Major Regional
Fukuoka Kensetsu Kaikan
CitiesIchigo Kinshicho South Building
Tokyo Metro Area
Ichigo Akihabara East Building
Central Tokyo
Four Major
Ichigo Hakata Meiji Dori Building
Regional Cities
Four Major
Ichigo Hakata Gion Building
Regional Cities
Four Major
Ichigo Tenjin North Building
Regional Cities
Ichigo Gotanda West Building
Central Tokyo
Ichigo Otemachi North Building
Central Tokyo
Subtotal - Office (89 Assets)
Future IZUMIOther Regional Cities
Ichigo Shibuya Bunkamura Dori Building Central Tokyo
Ichigo Kamata Building
Tokyo Metro Area
Subtotal - Other (3 Assets)
Total (92 Assets)
Ichigo Marunouchi South Building

1,400
5,010
225,125

1

Excludes the Ichigo Kudan 2-chome Building (O-18) scheduled to be sold on October 31, 2024. For
details of the asset sale, please refer to the April 24, 2024 release “Sale of Two Portfolio Assets (Ichigo
Ofuna Building, Ichigo Kudan 2 Chome Building).”
2
Central Tokyo refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards. Tokyo Metro
Area refers to Tokyo (excluding the six wards above), Kanagawa, Chiba, and Saitama Prefectures. Four
Major Regional Cities refers to Osaka, Nagoya, Fukuoka, and Sapporo.
3% of Portfolio is based upon acquisition price.
Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to asset acquisitions, and has not been prepared forthe purpose of solicitation of investment.

49