April 5, 2016
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
4-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-0027
Nippon Accommodations Fund Inc.
Executive Director
Nobumi Tobari(Code Number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
President and CEO
Tateyuki Ikura
Contact CFO and Director
Satoshi Nohara(TEL. 03-3246-3677)

Notification of Borrowing Funds
This is a notification that Nippon Accommodations Fund Inc. (“NAF“) decided to borrow funds as shown below.

1. Details of Loans
LenderLoan AmountInterest Rate

Shinsei Bank, Limited

3.5 billion yen

0.09803%

Loan Type&Repayment Method
Unsecured &unguaranteed,
Bullet repayment

Date of Loan

Date of Maturity

April 7, 2016

April 28, 2016

2. Use of Funds
To apply the funds toward the purchase and related incidental expenses of “Dormy Nishi Ogikubo,” which wasacquired on March 30, 2016 as announced in the “Notification Concerning Acquisition of Domestic Real Estate
Property” dated March 30, 2016 (*1), and the purchase and related incidental expenses of “Park Axis MagomeResidence” and “Park Axis Higashi Ueno,” for which the planned date of handover is April 7, 2016 as announced in
the “Notification Concerning Acquisition of Domestic Real Estate Properties” dated March 23, 2016.
(*1) As NAF acquired “Dormy Nishi Ogikubo” by using its own funds on March 30, 2016, the abovementioned loan will be executed inorder to cover the decreased amount in own funds due to the concerned utilization on April 7, 2016. The abovementioned loan is, ineffect, to be applied toward the purchase and related incidental expenses of real estate.

3. Status of Interest-bearing Debt After this Event(Unit: billion yen)

Before this Event

After this Event

ChangeShort-term debt

5.0

8.5

3.5

Long-term debt

135.5

135.5

－

Investment corporation bonds

7.0

7.0

－

Total interest-bearing debt

147.5

151.0

3.5

Interest-bearing debt ratio

52.1%

52.7%

0.6

Long-term interest-bearing debt ratio

96.6%

94.4%

(2.2)

(*1) The following formula was used to calculate the interest-bearing debt ratio.
(interest bearing debt ratio) = (interest bearing debt) ÷ (interest bearing debt + unitholders’ capital) X 100
The unitholders’ capital as of today (135,603,623 thousand yen) was used.
(*2) (long term interest bearing debt ratio) = (long term debt + investment corporation bonds) ÷ (interest bearing debt) X 100(*3) All calculations of ratios were rounded to one decimal place.

4. Others
Regarding the loan repayment risk, there is no important change to the “Investment risks” description in thelatest securities report submitted on November 27, 2015.

**Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (KabutoClub) and the press club of the Ministry of Land, Infrastructure, Transport and Tourism and to the pressclub for construction publications of the Ministry of Land, Infrastructure, Transport and Tourism.
NAF’s website: http://www.naf-r.jp/english/

Please note that this English translation of the Japanese original document is provided solely for information
purposes. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail.