Ichigo Preserves and Improves Real Estate[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.

April 26, 2017
IssuerIchigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Business Administration
Tel: +81-3-3502-4891

Acquisition of Three Office Assets and Sale of Four Non-Office Assets
Ichigo Investment Advisors (“IIA”), the asset management company of Ichigo Office
REIT, decided today to acquire three office assets and sell four non-office assets for
Ichigo Office REIT.
1. Asset Acquisition Summary
Total appraisal value: JPY 7.38 billion Total acquisition price: JPY 7.08 billion
Asset Number
Asset Name
Asset Type
Date Built
Form of OwnershipAppraisal Value2
Acquisition Price3
SellerContract Date
Closing Date(expected)
Financing Method
Settlement Method

O-86
Win Gotanda
Building

O-87
Ichigo Hongo
Building1

O-88
Oimachi Center
Building

OfficeOfficeOfficeOctober 1989
April 1992
December 1987
Trust beneficiary interest in real estate (juekiken)
JPY 3.26 billion
JPY 2.37 billion
JPY 1.75 billion
JPY 3.10 billion
JPY 2.30 billion
JPY 1.68 billion
Shinagawa Holdings
Kichijoji Holdings
Kichijoji Holdings
GK
GKGK
April 26, 2017
May 10, 2017
Cash-on-hand and loans4
Lump-sum payment

1

The current building name “IKB Hongo Building” will be changed to “Ichigo Hongo
Building.”
2
Appraisal value is as of March 1, 2017.
3
Acquisition price excludes incidental expenses such as property, city planning, andconsumption taxes.
4
Financing details will be announced when determined.

12. Asset Sale Summary
Total appraisal value: JPY 4.46 billion
Asset Name
Asset Type/Asset Number
Date Built
Form of Ownership
Acquisition Date
Sale Price1 (A)BuyerBook Value2 (B)Difference (A) – (B)Appraisal Value3
Contract Date
Transaction Date
Closing Date
Transaction Method
Asset Name
Asset Type/Asset Number
Date Built
Form of Ownership
Acquisition Date
Sale Price1 (A)BuyerBook Value2 (B)Difference (A) – (B)Appraisal Value3
Contract Date
Transaction Date
Closing Date
Settlement Method

Total sale price: JPY 4.49 billion

Ichigo Serviced Apartments
B-SITE Hamamatsucho
Takanawadai
Residential/R-04
Residential/R-06
July 14, 2003
May 30, 2002
Trust beneficiary interest in
Trust beneficiary interest inreal estate (juekiken)
real estate (juekiken)
October 12, 2005
October 12, 2005
JPY 990 million
JPY 616 million
SA3 GKSA3 GKJPY 1,288 million
JPY 667 million-JPY 298 million-JPY 51 million
JPY 1,160 million
JPY 616 million
April 26, 2017
April 26, 2017
April 26, 2017
Sale of trust beneficiary interest in real estate
Ichigo Serviced Apartments
Ginza
Residential/R-09
July 2, 2002
Trust beneficiary interest inreal estate (juekiken)

Ichigo Pagoda Asakusa
Building
Retail/Z-04
May 25, 1993
Trust beneficiary interest inreal estate (juekiken)
November 1, 2011 (due toIchigo REIT merger)
October 12, 2005
[Original acquisition date:
March 17, 2006]
JPY 1,034 million
JPY 1,850 million
SA3 GK
Asakusa Estate GK
JPY 896 million
JPY 1,590 million
JPY 137 million
JPY 259 million
JPY 859 million
JPY 1,820 million
April 26, 2017
April 26, 2017
April 26, 2017
Transfer of trust beneficiary interest in real estate

1

Sale price excludes incidental expenses such as fees and property, city planning, andconsumption taxes.
2Book Value is an estimate based upon the most recent book value (October 2016 fiscal
period), adjusted for capital expenditures and depreciation through Settlement Date.
3
Appraisal Value was calculated by Daiwa Real Estate Appraisal and Tanizawa Sogo
Appraisal as of October 31, 2016, and is in compliance with the appraisal guidelines of
IIA as well as the rules of the Investment Trusts Association of Japan.

2

3. Transaction Rationale
Ichigo Office REIT continues to execute on its strategy to drive stable dividend growthfor Ichigo Office REIT shareholders (Stage VI, Growth Strategy Roadmap).
Consistent with this growth strategy, Ichigo Office REIT is carrying out a strategic
portfolio restructuring (“Strategic Restructuring”) to acquire three Tokyo office assets
and sell four Tokyo non-office assets (three serviced apartments and one retail asset).
Because the office assets have higher occupancy and a higher NOI yield than the
non-office assets being sold, the transaction will increase Ichigo Office REIT’s annual
NOI by JPY 129 million.1
The transaction will also support Ichigo Office REIT’s ongoing earnings stability: thethree serviced apartments have large seasonal variations in rental income, and the retailasset has been struggling to lease up a vacant floor. All four non-office assets are thus
expected to require significant expenditures to preserve their ongoing operations andcompetitiveness.
Having concluded that the four non-office assets should be targeted for sale, Ichigo
Office REIT searched for a counterparty that would be willing to do an asset trade inorder to offset the loss in rental income and consequent hit to Ichigo Office REIT’s
earnings and dividend from the asset sale. As Ichigo Office REIT’s sponsor, Ichigo was
willing to conduct such a transaction on the terms and conditions that Ichigo Office
REIT sought.
In carrying out the transaction, Ichigo Office REIT confirmed the appropriateness of theacquisition and sale prices. In particular, given that this is a related party transaction as
defined in the Act on Investment Trusts and Investment Corporations (the “Trusts Act”),
Ichigo Office REIT fully implemented its related party transaction procedures,
including getting third-party appraisals on all of the assets and cross-checking thesethird-party appraisals with additional third-party second opinion appraisals. The four
assets are being sold at a price above these appraisal values pursuant to IIA's internal
rules on related party transactions.
Proceeds from the asset sales will be used both to partially repay existing loans andfinance the asset acquisitions in tandem with cash-on-hand and new loans.2
Please refer to Section 4. Asset Details for a detailed assessment of the three officeassets being acquired.
1

NOI of assets being sold = actual annualized NOI (October 2016 fiscal period)
NOI of assets being acquired = IIA’s forecast annualized NOI (see Appendix A for
details)2
Details of the loan pre-payments will be announced as soon as decided.

3

4. Details of the Three Office Assets being Acquired
Ichigo Office REIT will leverage its capabilities in owning and operating mid-size
office buildings to increase the earnings and value of the acquired office assets.
a. Win Gotanda Building(1) Location
The Gotanda area of Tokyo continues to see strong demand from office tenants given its
proximity to the Shinagawa and Osaki business areas, its accessibility by three railway
lines, and an abundance of nearby restaurants and retail stores.
A growing number of IT venture companies have moved into the Gotanda area in recent
years because of relatively lower rents compared to the Shibuya and Ebisu areas, andthe availability of many office buildings in close proximity to the train station.
The Win Gotanda Building is expected to have strong demand from diverse tenants
including restaurants and shops given its convenient location alongside a major
thoroughfare, Sakurada Dori, its proximity to the station, and its high visibility.
(2) Features
A mid-size office building located within a 3-minute walk from Gotanda Station on the
JR Yamanote Line, the Toei Subway Asakusa Line, and the Tokyu Ikegami Line.
Each floor has a standard floor plate of 149 tsubo (492m2) and is equipped withindividual air conditioning systems and raised access floors, therefore catering to thedemands of diverse tenants.
The basement floor is occupied by a restaurant tenant and the upper floors are occupied
by office tenants, including telecommunications companies.
(3) Photos and Location Map

4

Asset Overview
Win Gotanda Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
February 28, 2003 – May 31, 2027 (expected)
1-30-2 Nishi Gotanda, Shinagawa-ku, Tokyo
Freehold (ownership ratio: 85.65%)
695.70m2
Commercial

Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area
Land
ZoningCoverage Ratio/
80%/800% & 80%/700%
Floor Area Ratio
Property Right
Freehold (ownership ratio: 85.65%)
Use
Office, retail, garage
Building Structure
SRC 9 Floors and 1 Basement Floor
Total Floor Area 5,370.27m2
Date Built
October 11, 1989
Appraiser
Tanizawa Sogo Appraisal
Appraisal Value
JPY 3.26 billion
Appraisal Date
March 1, 2017
Value by Direct
JPY 3.35 billion
Capitalization Method
Architect1
Zenitaka Corporation First-Class Registered Architects Office1
Builder
Zenitaka Corporation
Structural Engineer1
Zenitaka Corporation First-Class Registered Architects Office1
Inspection Agency
Shinagawa Ward
PML (Assessor)
6.53% (Sompo Risk Management & Health Care)
Collateral
None (expected)
Lease Overview (as of February 28, 2017)11
Number of Tenants
Monthly Rental Income
JPY 16.680 million
Deposits Received
JPY 151.945 million
Leasable Area
3,689.88m2
Leased Area
3,689.88m2
Apr 2015 Oct 2015 Apr 2016 Oct 2016 Feb 2017
Occupancy
100%
73.3%
86.6%
100%
100%
Property Management
Dai-Ichi Building (expected)
Company
Master Lease Company–
Master Lease Type–5

Special Items
1. Ichigo Office REIT owns 85.65% (3,701.66m2/4,321.86m2) of both the land and thebuilding, with the remainder owned by five other parties.
2. A routine inspection of the building indicated insufficient ventilation for a restaurant on thebasement floor, and the seller has agreed to rectify this at its own expense.
1

The names of the architect, builder, structural engineer, and inspection agency arethose of when the building was completed.

6

Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses

Appraisal Overview
Win Gotanda Building
JPY 3.26 billion
Tanizawa Sogo Appraisal
March 1, 2017
Amount (JPY)
Note
Valuation determined via both a direct
3,260,000,000 capitalization valuation and DCF
valuation
3,350,000,000
218,883,193
Based on rental income, common area
230,624,415 service income, parking lot income, andother income
Based on expected mid- to long-term
11,741,222
vacancy rate
61,359,881– Included in building management fees

Utility Expenses

13,106,454

Repair Expenses

7,920,000

PM Fees

2,880,626

Leasing Brokerage
Fees

1,668,751

Taxes
Insurance Premiums

17,929,500
235,930

Other Expenses

17,618,620

Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Land
Building

Based on similar assets and past actual
amounts
Based on engineering reports and similar
assetsBased on current rate and similar assets
Based on the expected turnover rate, pastactual amounts, and costs for similar
assetsBased on FY2016 actual amounts
Based on insurance estimates, etc.
Building management fees, consumable
goods, etc.

157,523,312
1,542,092 Based on 1.0% investment yield
18,480,000

Based on engineering reports and similar
assets140,585,404
Based on transactions of similar assets,taking into account the asset’s location,
4.2%
specific characteristics, property rights,
and contractual terms
3,220,000,000
Based on transactions of similar realestate assets and the yields of financial
4.3%
assets, taking into account the asset’s
specific characteristics
4.4% Based upon risk-adjusted NOI
3,210,000,000
88.2%
11.8%
7

NotesNone
Reference:
Appraisal NOI yield: 5.1% (calculated by dividing NOI by Acquisition Price)8

b. Ichigo Hongo Building(1) Location
The building is located in the Kasuga/Hongo/Koishikawa area of Tokyo, with four
railway lines offering convenient central Tokyo access.
With smooth access into the Marunouchi, Otemachi, and greater Chiyoda business areas
via the subway line, the building continues to see strong demand from local companies
as well as venture businesses and education-related companies that benefit from theproximity to the University of Tokyo.
A multi-purpose office, retail, and residential building is currently being constructed in
front of Kasuga Station on the Toei Mita Line, scheduled for completion in November
2021, and is expected to contribute to further growth in users and visitors of the area.
(2) Features
A mid-size office building located within a 3-minute walk from Kasuga Station on the
Toei Mita and Oedo Lines, and a 6-minute walk from Korakuen Station on the
Marunouchi and Namboku Lines.
Each floor has a standard floor plate of 160 tsubo (528m2) and is equipped withindividual air conditioning systems and raised access floors, therefore catering to thedemands of diverse tenants.
A small supermarket occupies the first floor and the upper floors are occupied by officetenants such as a construction material manufacturer, a construction company, a plate
manufacturer, and a publisher.
(3) Photos and Location Map

9Asset Overview
Ichigo Hongo Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
July 30, 2015 – May 31, 2027 (expected)
5-33-10 Hongo, Bunkyo-ku, Tokyo
Freehold902.89m2
Neighborhood Commercial
80%400%Freehold (ownership ratio: 100%)
Office, warehouse, parking
SRC & RC 6 Floors and 1 Basement Floor
3,932.85m2
April 15, 1992
Tanizawa Sogo Appraisal
JPY 2.37 billion
March 1, 2017

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
Appraiser
Appraisal Value
Appraisal Date
Value by Direct
JPY 2.45 billion
Capitalization Method
Architect1
Shimizu Corporation First-Class Registered Architects Office1
Builder
Shimizu Corporation
Structural Engineer1
Shimizu Corporation First-Class Registered Architects Office1
Inspection Agency
Bunkyo Ward
PML (Assessor)
5.77% (Sompo Risk Management & Health Care)
Collateral
None (expected)
Lease Overview (as of February 28, 2017)
7
Number of Tenants
Monthly Rental Income
JPY 11.558 million
Deposits Received
JPY 84.937 million
Leasable Area
2,722.58m2
Leased Area
2,722.58m2
Apr 2015 Oct 2015 Apr 2016 Oct 2016 Feb 2017
Occupancy
41.4%
41.5%
80.0%
100%
100%
Property Management
Japan Property Solutions (expected)
Company
Master Lease Company
Ichigo Office REIT Investment Corporation (expected)
Master Lease Type
Pass-through (expected)

10Special Items
1. According to Article 42 Item 2 of the Building Standards Law, 23.21m2 of land on the northeastern side and 11.30m2 on the west side of the land are deemed to be roads.
2. Tokyo Metro Co., Ltd. has partial rights to 223.32m2 of the land for the purpose of
establishing sub terrain subway structures.
3. An agreement exists with Tokyo Metro Co., Ltd. with respect to a neighboring plot of landon the south side of the building and the partially-owned section of land mentioned abovethat allows free use of the these lands by both parties. The agreement also stipulates thatnegotiation is required if either party plans to re-build, alter, or re-model buildings,
ventilation rooms, and/or ventilation towers on these lands.
4. An agreement exists with the south-west neighbor (street address 337-1) with respect to partof the retaining wall and the masonry below it protruding into the neighbor's land, anddenotes how to handle any future need of rectifying such protrusion.
5. An agreement exists with the south-west neighbor (street address 337-2) with respect to partof the retaining wall and the masonry below it protruding into the neighbor's land, andspecifies that such protrusion should be rectified at a time when the retaining wall is rebuilt
or dismantled.
6. The building’s engineering report indicates that an opening in the door to a storage facilityon the basement floor results in insufficient fire-retarding division of the interior evacuation
staircase, and the seller has agreed to rectify this at its own expense.
1

The names of the architect, builder, structural engineer, and inspection agency arethose of when the building was completed.

11

Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM Fees
Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate

Appraisal Overview
Ichigo Hongo Building
JPY 2.37 billion
Tanizawa Sogo Appraisal
March 1, 2017
Amount (JPY)
Note
Valuation determined via both a direct
2,370,000,000 capitalization valuation and DCF
valuation
2,450,000,000
161,672,019
Based on rental income, common area
170,717,915 service income, parking lot income, andother income
Based on expected mid- to long-term
9,045,896
vacancy rate
42,694,282
Based on similar assets and past actual
8,396,437
amounts
Based on similar assets and past actual
12,349,623
amounts
Based on engineering reports and similar
5,175,000
assetsBased on current contract and similar
2,679,998
assetsBased on expected turnover rate, past
1,169,798 actual amounts, and costs for similar
assetsBased on FY2016 actual amounts and12,238,800
current replacement cost
199,610 Based on similar assets
485,016 Consumable goods, etc.
118,977,737
1,012,252 Based on 1.0% investment yield
12,075,000

Based on engineering reports and similar
assets107,914,989
Based on transactions of similar assets
with the asset’s location, its individual
4.4%
characteristics, property right, andcontractual rate taken into account
2,340,000,000
Based on transactions of similar realestate assets and the yields of financial
4.5%
assets, taking into account the asset’s
specific characteristics
4.6% Based upon risk-adjusted NOI

12

Value via Cost Approach
Land
Building

2,110,000,000
84.2%
15.8%
Notes

None
Reference:
Appraisal NOI yield: 5.2% (calculated by dividing NOI by Acquisition Price)13

c. Oimachi Center Building(1) Location
The building is located in the highly convenient Oimachi area of Tokyo, offering directaccess to popular train stations such as Shinagawa, Tokyo, Osaki, Shibuya, andShinjuku via three railway lines as well as easy access to airports and Shinkansen
terminals.
The building continues to see strong tenant demand from businesses dealing with the
Shinagawa Ward Office as well as group companies and clients of several major
construction companies and manufacturers based in the area.
A multi-purpose retail and residential building is currently being constructed to the westof the building, scheduled for completion in August 2019, and is expected to contributeto further growth in users and visitors of the area.
(2) Features
A mid-size office building located within a 3-minute walk from Oimachi Station on the
JR Keihin Tohoku Line and a 4-minute walk from Oimachi Station on the Tokyu
Oimachi Line and Rinkai Line.
Each floor has a standard floor plate of 180 tsubo (594m2) and is equipped withindividual air conditioning systems and raised access floors, therefore catering to thedemands of diverse tenants.
The upper office floors are occupied by tenants such as a facilities construction
company, a real estate management company, and a stationary manufacturer.
(3) Photos and Location Map

14

Asset Overview
Oimachi Center Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
April 27, 2004 – May 31, 2027 (expected)
1-24-5 Oi, Shinagawa-ku, Tokyo
Freehold
886.37m2
Commercial
80%500%
Freehold (ownership ratio: 74.247%)
Office, retail, parking, warehouse
SRC 7 Floors and 1 Basement Floor
4,468.31m2
December 7, 1987
Tanizawa Sogo Appraisal
JPY 1.75 billion
March 1, 2017

Asset Name
Form of Ownership
Trustee
Period of Trust Contract
Location
Property Right
Area1
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building Structure
Total Floor Area
Date Built
Appraiser
Appraisal Value
Appraisal Date
Value by Direct
JPY 1.82 billion
Capitalization Method
Architect2
Matsumoto Kosei Architectural Design Office2
Builder
Fujita Corporation
Structural Engineer2
Matsumoto Kosei Architectural Design Office2
Inspection Agency
Shinagawa Ward
PML (Assessor)
7.52% (Sompo Risk Management & Health Care)
Collateral
None (expected)
Lease Overview (as of February 28, 2017)
7
Number of Tenants
Monthly Rental Income
JPY 8.268 million
Deposits Received
JPY 80.326 million
Leasable Area
2,748.73m2
Leased Area
2,138.43m2
Apr 2015 Oct 2015 Apr 2016 Oct 2016 Feb 2017
Occupancy
64.3%
64.3%
77.8%
77.8%
77.8%
Property Management
Japan Property Solutions (expected)
Company
Master Lease Company
Ichigo Office REIT Investment Corporation (expected)
Master Lease Type
Pass-through (expected)

15

Special Items
1. Ichigo Office REIT owns 74.247% (3,077.972m2/4,145.595m2) of the building, with theremainder owned by 11 other parties. While part of the land is also owned by the otherowners, an agreement exists with respect to use of a building constructed on this land andstipulates that no charge shall be assessed for such use. Borders between partially-owned
sections of the land are undefined.
2. If a partial owner of the building wishes to sell her/his holding, management rules of thebuilding prescribe that preferential notice must first be served to other partial owners.
1
2

Area includes land of the acquired asset as well as land of other partial owners.
The names of the architect, builder, Structural engineer, and inspection agency arethose of when the building was built.

16

Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM Fees
Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate

Appraisal Overview
Oimachi Center Building
JPY 1.75 billion
Tanizawa Sogo Appraisal
March 1, 2017
Amount (JPY)
Note
Valuation determined via both a direct
1,750,000,000 capitalization valuation and DCF
valuation
1,820,000,000
143,507,472
Based on rental income, common area
151,292,919 service income, parking lot income, andother income
Based on expected mid- to long-term
7,785,447
vacancy rate
50,302,694
Based on similar assets and past actual
1,840,012
amounts
Based on similar assets and past actual
9,139,730
amounts
Based on engineering reports and similar
6,120,000
assetsBased on current contract and similar
2,696,495
assetsBased on the expected turnover rate, past
1,023,529 actual amounts, and costs for similar
assetsBased on FY2016 actual amounts and
9,512,000
current replacement cost
176,690 Based on similar assets
Building management fees, consumable
19,794,238
goods, etc.
93,204,778
1,129,199 Based on 1.0% investment yield
14,280,000

Based on engineering reports and similar
assets80,053,977
Based on transactions of similar assets
with the asset’s location, its individual
4.4%
characteristics, property right, andcontractual rate taken into account
1,720,000,000
Based on transactions of similar realestate assets and the yields of financial
4.5%
assets, taking into account the asset’s
specific characteristics
4.6% Based upon risk-adjusted NOI
17

Value via Cost Approach
Land
Building

1,690,000,000
91.0%
9.0%
Notes

None
Reference:
Appraisal NOI yield: 5.5% (calculated by dividing NOI by Acquisition Price)18

5. Seller Profiles
Name
Address
Representative

Principal Businesses
CapitalEstablishment Date
Equity Holder

Relationship with Ichigo
Office REIT or IIA1

Name
Address
Representative
Principal Businesses
CapitalEstablishment Date
Equity Holder

Relationship with Ichigo
Office REIT or IIA1

1

Shinagawa Holdings GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Mariko Hirano
1. Investment in trust beneficiary interests (juekiken)
2. Investment in and management of real estate
3. Other businesses relating to the aforementioned
businesses
JPY 100,000
March 4, 2014
Ippan Shadan Hojin Star Holding
While the Seller is not a related party as defined in the Trusts
Act, the acquisition was subject to IIA's internal rules on
related party transactions because (1) Ichigo, the 100% ownerof IIA, is a related party according to the Trusts Act and Ichigo
owns more than half of the equity of Shinagawa Holdings GK,
and (2) Ichigo Estate, a related party as defined in the Act, hasprovided asset management advisory services to IIA.
Kichijoji Holdings GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin Star Holding
Manager: Takafumi Inaba
1. Investment in trust beneficiary interests (juekiken)
2. Investment in and management of real estate
3. Other businesses relating to the aforementioned
businesses
JPY 100,000
April 30, 2013
Ippan Shadan Hojin Star Holding
While the Seller is not a related party as defined in the Trusts
Act, the acquisition was subject to IIA's internal rules on
related party transactions because (1) Ichigo, the 100% ownerof IIA, is a related party according to the Trusts Act and Ichigo
owns more than half of the equity of Kichijoji Holdings GK,
and (2) Ichigo Estate, a related party as defined in the Act, hasprovided asset management advisory services to IIA.

Ichigo Office REIT followed strict related-party procedures to safeguard against
conflicts of interest, and also obtained second opinions to verify the appropriateness oftransaction prices.

196. Ownership History of Acquired Assets
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT

Win Gotanda Building
Current Owner
Shinagawa Holdings GK
Related Party as defined in
the internal rules of IIA.
Please see “Seller Profiles”
in Section 5.

Acquisition Rationale Investment
Acquisition Price
Acquisition Date
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT

Acquisition Date
Asset Name
Overview
Name
Relationship to
Ichigo Office REIT

Not disclosed because
holding period exceeds one
year
May 15, 2014
Ichigo Hongo Building
Current Owner
Kichijoji Holdings GK
Related Party as defined in
the internal rules of IIA.
Please see “Seller Profiles”
in Section 5.

Acquisition Date
7.

––

Previous Owner
Unrelated Party––

Not disclosed because
holding period exceeds one
year
July 30, 2015
Oimachi Center Building
Current Owner
Kichijoji Holdings GK
Related Party as defined in
the internal rules of IIA.
Please see “Seller Profiles”
in Section 5.

Acquisition Rationale Investment
Acquisition Price––

Acquisition Rationale Investment
Acquisition PricePrevious Owner
Unrelated Party––

Previous Owner
Unrelated Party––

Not disclosed because
holding period exceeds one
year
July 30, 2015

Broker for Asset Acquisition

None

20

–
–

8. Details of the Four Assets being Solda. Ichigo Serviced Apartments Takanawadai
Asset Name
Form of Ownership
Address
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building
Structure
Total Floor Area
Date Build
Number of Tenants
Monthly Rental Income1
Tenant Security Deposits1
Leasable Area
Leased Area
Occupancy
Acquisition PriceAppraiser
Appraisal Date
Value
1

Asset Overview
Ichigo Serviced Apartments Takanawadai
Trust beneficiary interest in real estate (juekiken)
2-26-9 Shirokanedai, Minato-ku, Tokyo
Freehold
273.91m2
Commercial
80%500%
Freehold (ownership ratio: 100.0%)
Apartment, parking
SRC 12 Floors
1,677.88m2
July 14, 2003
1 (as of March 31, 2017)
JPY 8.537 million (as of March 31, 2017)
JPY 4.796 million (as of March 31, 2017)
1,248.50m2 (as of March 31, 2017)
1,201.50m2 (as of March 31, 2017)
Apr 2015 Oct 2015 Apr 2016 Oct 2016 Mar 2017
100%
100%
67.0%
56.1%
96.2%
JPY 1.36 billion
Daiwa Real Estate Appraisal
October 31, 2016
JPY 1.16 billion

Monthly Rental Income (including cost of utilities) and Tenant Security Deposits referto those stated in the lease agreement.

21

Asset Name
Appraisal Value
Appraiser
Appraisal Date
Appraisal Value
Value by Direct
Capitalization Method
IncomeAppraisal Overview
Ichigo Serviced Apartments Takanawadai
JPY 1.16 billion
Daiwa Real Estate Appraisal
October 31, 2016
Amount (JPY)
Notes
on a DCF valuation, and verified
1,160,000,000 Basedusing a direct capitalization valuation

Maximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM Fees
Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditures
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Land
Building

1,200,000,000
67,383,750
Based on rental income, common area
71,166,780 service income, parking lot income, andother income
on expected mid- to long-term
3,783,030 Basedvacancy rate
13,248,329
on similar assets and past actual
2,169,600 Basedamounts
on similar assets and past actual
1,133,010 Basedamounts
on engineering reports and similar
1,407,816 Basedassetson similar assets and past actual
2,005,367 Basedamounts
Based on the expected turnover rate, past
2,443,409 actual amounts, and costs for similar
assetson FY2016 actual amounts and3,826,100 Basedcurrent replacement cost
81,745 Based on similar assets
181,282 Consumable goods, etc.
54,135,421
107,636 Based on a 1.0% investment yieldon engineering reports and similar
2,797,000 Basedassets51,446,057
Based on transactions of similar assets,
into account the asset’s location,
4.3% taking
specific characteristics, property rights,
and contractual terms
1,140,000,000
Based on transactions of similar real
assets and the yields of financial
4.2% estate
assets, taking into account the asset’s
specific characteristics
4.5% Based upon risk-adjusted NOI
887,000,000
70.5 %
29.5 %
Notes

None
22

b. B-SITE Hamamatsucho
Asset Name
Form of Ownership
Address
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building
Structure
Total Floor Area
Date Built
Number of Tenants
Monthly Rental Income1
Tenant Security Deposits1
Leasable Area
Leased Area
Occupancy
Acquisition PriceAppraiser
Appraisal Date
Value
1

Asset Overview
B-SITE Hamamatsucho
Trust beneficiary interest in real estate (juekiken)
1-16-11 Hamamatsucho, Minato-ku, Tokyo
Freehold (ownership ratio: 100.00%)
171.38m2
Commercial
80%600%
Freehold (ownership ratio: 100.00%)
Apartment
RC 9 Floors
821.84m2
May 30, 2002
1 (as of March 31, 2017)
JPY 2.960 million (as of March 31, 2017)
JPY 10.440 million (as of March 31, 2017)821.84m2 (as of March 31, 2017)821.84m2 (as of March 31, 2017)
Apr 2015 Oct 2015 Apr 2016 Oct 2016
100%
100%
100%
100%
JPY 701 million
Daiwa Real Estate Appraisal
October 31, 2016
JPY 616 million

Mar 2017
100%

Monthly Rental Income (including cost of utilities) and Tenant Security Deposits referto those stated in the lease agreement.

23

Asset Name
Appraisal Value
Appraiser
Appraisal Date
Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum Obtainable
Rental Income

Appraisal Overview
B-SITE Hamamatsucho
JPY 616 million
Daiwa Real Estate Appraisal
October 31, 2016
Amount (JPY)
Notes
Based
on
a
DCF
valuation,verified
616,000,000 using a direct capitalizationand
valuation

Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM Fees
Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditures
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Land
Building

601,000,000
35,998,432
on rental income, common area
37,877,428 Basedservice income, and other income
on expected mid- to long-term
1,878,996 Basedvacancy rate
6,976,405
on similar assets and past actual
1,342,140 Basedamounts
on similar assets and past actual
402,642 Basedamounts
on engineering reports and similar
1,092,510 Basedassetson similar assets and past actual
1,071,028 Basedamounts
Based on the expected turnover rate, past
1,338,785 actual amounts, and costs for similar
assetson FY2016 actual amounts and1,685,900 Basedcurrent replacement cost
43,400 Based on similar assets– Consumable goods, etc.
29,022,027
59,502 Based on a 1.0% investment yieldon engineering reports and similar
2,622,000 Basedassets26,459,529
Based on transactions of similar assets,
into account the asset’s location,
4.4 % taking
specific characteristics, property rights,
and contractual terms
623,000,000
Based on transactions of similar real
assets and the yields of financial
4.2 % estate
assets, taking into account the asset’s
specific characteristics
4.6 % Based on risk-adjusted NOI
497,000,000
73.5 %
26.5 %
Notes

None
24

c. Ichigo Serviced Apartments Ginza
Asset Name
Form of Ownership
Address
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building
Structure
Total Floor Area
Date Built
Number of Tenants
Monthly Rental Income1
Tenant Security Deposits1
Leasable Area
Leased Area
Occupancy
Acquisition PriceAppraiser
Appraisal Date
Value
1

Asset Overview
Ichigo Serviced Apartments Ginza
Trust beneficiary interest in real estate (juekiken)
2-7-3 Shintomi, Chuo-ku, Tokyo
Freehold
191.28m2
Commercial
80%600%
Freehold (ownership ratio: 100.00%)
Apartment
SRC 10 Floors and 1 Basement Floor
1,332.87m2
July 2, 2002
1 (as of March 31, 2017)
JPY 7.381 million (as of March 31, 2017)
JPY 8.133 million (as of March 31, 2017)
1,020.14m2 (as of March 31, 2017)916.07m2 (as of March 31, 2017)
Apr 2015 Oct 2015 Apr 2016 Oct 2016
81.1%
69.2%
68.1%
94.1%
JPY 946 million
Daiwa Real Estate Appraisal
October 31, 2016
JPY 859 million

Mar 2017
89.8%

Monthly Rental Income (including cost of utilities) and Tenant Security Deposits referto those stated in the lease agreement.

25

Asset Name
Appraisal Value
Appraiser
Appraisal Date
Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM Fees
Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditures
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Land
Building

Appraisal Overview
Ichigo Serviced Apartments Ginza
JPY 859 million
Daiwa Real Estate Appraisal
October 31, 2016
Amount (JPY)
Notes
Based
on
a
DCF
valuation,verified
859,000,000 using a direct capitalizationand
valuation
811,000,000
50,141,389
on rental income, common area
52,733,545 Basedservice income, and other income
on expected mid- to long-term
2,592,156 Basedvacancy rate
11,475,510
on similar assets and past actual
2,520,000 Basedamounts
on similar assets and past actual
1,296,078 Basedamounts
on engineering reports and similar
1,515,689 Basedassetson similar assets and past actual
1,491,929 Basedamounts
Based on the expected turnover rate,
1,846,911 past actual amounts, and costs for
similar assets
on FY2016 actual amounts and2,598,100 Basedcurrent replacement cost
58,680 Based on similar assets
148,123 Consumable goods, etc.
38,665,879
82,085 Based on a 1.0% investment yieldon engineering reports and similar
3,878,000 Basedassets34,869,964
Based on transactions of similar assets,
into account the asset’s location,
4.3% taking
specific characteristics, property rights,
and contractual terms
879,000,000
Based on transactions of similar real
assets and the yields of financial
4.3 % estate
assets, taking into account the asset’s
specific characteristics
4.5 % Based on risk-adjusted NOI
545,000,000
67.1 %
32.9 %
Notes

None

26

d. Ichigo Pagoda Asakusa Building
Asset Name
Form of Ownership
Address
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building

Structure2

Total Floor Area
Date Built
Number of Tenants
Monthly Rental Income1
Tenant Security Deposits1
Leasable Area
Leased Area
Occupancy
Acquisition PriceAppraiser
Appraisal Date
Value
1

Asset Overview
Ichigo Pagoda Asakusa Building
Trust beneficiary interest in real estate (juekiken)
2-16-9 Kaminarimon, Taito-ku, Tokyo
Freehold
461.68m2
Commercial
80%700%
Freehold(1) Retail (2) Waste facility(1) SRC 9 Floors and 1 Basement Floor(2) Steel 1 Floor(1) 2,785.59m2(2) 13.37m2(1) May 25, 1993 (2) September 12, 1996
6 (as of March 31, 2017)
JPY 8.300 million (as of March 31, 2017)
JPY 73.121 million (as of March 31, 2017)
2,091.26m2 (as of March 31, 2017)
1,847.71m2 (as of March 31, 2017)
Apr 2015 Oct 2015 Apr 2016 Oct 2016 Mar 2017
100%
100%
100%
88.4%
88.4%
JPY 1.64 billion
Tanizawa Sogo Appraisal
October 31, 2016
JPY 1.82 billion

Monthly Rental Income (including cost of utilities) and Tenant Security Deposits referto those stated in the lease agreement.

27

Asset Name
Appraisal Value
Appraiser
Appraisal Date
Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum Obtainable
Rental Income
Vacancy Loss
Expenses
Administrative andMaintenance Expenses
Utility Expenses
Repair Expenses
PM Fees
Leasing Brokerage Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits Received
Capital Expenditure
Net Profit
Cap Rate
Value via DCF Method
Discount Rate
Terminal Cap Rate
Value via Cost Approach
Land
Building

Appraisal Overview
Ichigo Pagoda Asakusa Building
JPY 1.82 billion
Tanizawa Sogo Appraisal
October 31, 2016
Amount (JPY)
Notes
on a DCF valuation, and verified
1,820,000,000 Basedusing a direct capitalization valuation
1,830,000,000
151,605,015
Based on rental income, common area
161,497,279 service income, parking lot income, andother income
on expected mid- to long-term
9,892,264 Basedvacancy rate
65,618,687
on similar assets and past actual
10,715,616 Basedamounts
on similar assets and past actual
40,227,477 Basedamounts
on engineering reports and similar
1,170,000 Basedassetson similar assets and past actual
2,440,534 Basedamounts
Based on the expected turnover rate,
954,660 past actual amounts, and costs for
similar assets
on FY2016 actual amounts and9,663,000 Basedcurrent replacement cost
144,190 Based on similar assets
303,210 Consumable goods, etc.
85,986,328
872,045 Based on a 1.0% investment yieldon engineering reports and similar
2,808,000 Basedassets84,050,373
Based on transactions of similar assets,
into account the asset’s location,
4.6 % taking
specific characteristics, property rights,
and contractual terms
1,810,000,000
Based on transactions of similar real
assets and the yields of financial
4.7 % estate
assets, taking into account the asset’s
specific characteristics
4.8 % Based on risk-adjusted NOI
1,820,000,000
78.5 %
21.5 %
Notes

None
28

9. Buyer Profiles
Name
Address
Representative

SA3 GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin IES2Manager: Yuki Yamamoto

Principal Businesses

1. Investment in trust beneficiary interests (juekiken)
2. Investment in and management of real estate
3. Other businesses relating to the aforementioned
businesses

CapitalEstablishment Date
Major Shareholder

JPY 100,000
April 7, 2017
Ippan Shadan Hojin IES2

Relationship with Ichigo
Office REIT or IIA1While the Seller is not a related party as defined in the Trusts
Act, the acquisition was subject to IIA's internal rules on
related party transactions because (1) Ichigo, the 100% ownerof IIA, is a related party according to the Trusts Act and Ichigo
owns more than half of the equity of SA3 GK, and (2) Ichigo
Estate, a related party as defined in the Act, has provided asset
management advisory services to IIA.

Name
Address
Representative

Principal Businesses
CapitalEstablishment Date
Major Shareholder

Relationship with Ichigo
Office REIT or IIA1

1

Asakusa Estate GK
1-1-1 Uchisaiwaicho, Chiyoda-ku, TokyoManaging Member: Ippan Shadan Hojin IES2Manager: Yuki Yamamoto
1. Investment in trust beneficiary interests (juekiken)
2. Investment in and management of real estate
3. Other businesses relating to the aforementioned
businesses
JPY 100,000
April 7, 2017
Ippan Shadan Hojin IES2
While the Seller is not a related party as defined in the Trusts
Act, the acquisition was subject to IIA's internal rules on
related party transactions because (1) Ichigo, the 100% ownerof IIA, is a related party according to the Trusts Act and Ichigo
owns more than half of the equity of Asakusa Estate GK, and(2) Ichigo Estate, a related party as defined in the Act, hasprovided asset management advisory services to IIA.

Ichigo Office REIT followed strict related-party procedures to safeguard against conflictsof interest, and also obtained second opinions to verify the appropriateness of transaction
prices.

10. Broker for Asset Sale
None

29

11. Use of Sale Proceeds
Proceeds from these asset sales will be used to partially repay existing loans as well as
finance the asset acquisitions in tandem with cash-on-hand and new loans. Details of
the loan pre-payments will be announced as soon as decided.
12. Transaction Schedule
Contract Date
Closing Date for Asset Sales
Closing Date for Asset Acquisitions

April 26, 2017
April 26, 2017
May 10, 2017 (expected)

13. Earnings Outlook
The impact of this Strategic Restructuring on Ichigo Office REIT’s earnings anddividend forecasts for the April 2017 and October 2017 periods is as separately
provided in today’s announcement “Earnings and Dividend Forecast Revisions for the
October 2017 Fiscal Period and Forecast for the April 2018 Fiscal Period.”30

Appendix A: Real Estate Income Details of Assets being Acquireda. Win Gotanda Building

A.
B.
C.
D.
E.
F.
G.
H.

(JPY million)

Rental Income
Rental Expenses (excluding Depreciation)3
NOI (A ) – (B)NOI Yield4
Depreciation5
Post-Depreciation NOI (C) – (E)Post-Depreciation NOI Yield4
Occupancy6

Projected1
210
54
156
5.0%
16
140
4.5%
97.0%

b. Ichigo Hongo Building

A.
B.
C.
D.
E.
F.
G.
H.

(JPY million)

Rental Income
Rental Expenses (excluding Depreciation)3
NOI (A) – (B)NOI Yield4
Depreciation5
Post-Depreciation NOI (C) – (E)Post-Depreciation NOI Yield4
Occupancy6

Projected1
150
38
112
4.9%
14
97
4.2%
96.0%

c. Oimachi Center Building

A.
B.
C.
D.
E.
F.
G.
H.

At Acquisition2
217
59
158
5.1%
16
142
4.6%
100.0%At Acquisition2
159
41
118
5.1%
14
103
4.5%
100.0%(JPY million)

Rental Income
Rental Expenses (excluding Depreciation)3
NOI (A) – (B)NOI Yield4
Depreciation5
Post-Depreciation NOI (C) – (E)Post-Depreciation NOI Yield4
Occupancy6

1

Projected1
128
42
86
5.2%
8
78
4.7%
96.0%

At Acquisition2
111
48
62
3.7%
8
54
3.3%
77.8%

Amounts exclude special factors in the year of acquisition, and are calculated based on
current and future anticipated fluctuations in occupancy.
2
Shows first-year amounts used to calculate the DCF-based valuation, excluding
special factors in the year of acquisition.
3
Rental Expenses includes incidental expenses such as service provider fees, property,
city planning, and consumption taxes, and other fees.
31

4

NOI Yield and Post-Depreciation NOI Yield are calculated by dividing the NOI and
Post-Depreciation NOI by the Acquisition Price, respectively.
5
Depreciation amount is as estimated by Ichigo Office REIT.
6
Occupancy at acquisition is as of February 28, 2017.
Appendix B: Engineering Report Summary
Win Gotanda
Building
Inspector Name

Shimizu
Corporation

Inspection Date

March 2017

Short-Term
Repair Expense1
Long-Term
Repair Expense2
Current
Replacement Cost

(JPY million)
Ichigo Hongo
Building
Tokio Marine &Nichido Risk
Consulting

Oimachi Center
Building
Tokio Marine &Nichido Risk
Consulting

March 2017

March 2017

0.410

–

–

283.5483

191.864213.6094

1,325.0003

1,144.000

1,014.6594

1

Short-Term Repair Expense is defined as repair expenses considered necessary beyond
the scope of ordinary maintenance within a year from the time of inspection.
2
Long-Term Repair Expense is defined as cumulative repair expenses considerednecessary for the maintenance of the hotel within twelve years from the time ofinspection.
3
Ownership ratio of 0.8565 is multiplied to the total expense and current price of thebuilding.
4 Ownership ratio of 0.74247 is multiplied to the total expense and current price of thebuilding.

32

Appendix C: Post-Transaction Portfolio
No.

Asset Name

O-02
O-03
O-04
O-05
O-06

O-08
O-09
O-10
O-11
O-12
O-14
O-15
O-16
O-17
O-18
O-19
O-20
O-21
O-22
O-23
O-24
O-26
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 Akasaka 5 Chome 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 2 Chome 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

Ichigo Kanda Ogawamachi Building

O-07

Area1

Acquisition
Price2(JPY million)% ofPortfolio3

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo

3,254
2,740
1,920
1,550
1,200

1.7
1.4
1.0
0.8
0.6

Central Tokyo

1,505

0.8

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

735
1,100
1,917
1,773
1,140
550
580
1,820
1,150
763
844
5,060
1,816
1,460
764
1,490
2,030
639
765
2,160

0.4
0.6
1.0
0.9
0.6
0.3
0.3
0.9
0.6
0.4
0.4
2.6
0.9
0.7
0.4
0.8
1.0
0.3
0.4
1.1

4,705

2.4

6,710

3.4

1,650
1,158
3,010
2,130
5,500

0.8
0.6
1.5
1.1
2.8

1,940

1.0

2,210

1.1

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
33

No.

Asset Name

Area1

O-50
O-51
O-52
O-53
O-54
O-55
O-56
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 Hatchobori Building
Ebisu Green Glass
Ichigo Omori Building
Ichigo Takadanobaba Building
Ichigo Omiya Building
Ichigo Sagamihara Building
Ichigo Ofuna 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

Nishiki First Building

O-77
O-78
O-79
O-80

Ichigo Ikenohata Building
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

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
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
Tokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
Cities34

Acquisition
Price2(JPY million)
1,905
5,900
3,850

% of
Portfolio3

1,580
3,430
1,174
2,000
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

1.0
3.0
2.0
0.8
1.7
0.6
1.0
0.9
0.7
3.7
1.9
2.0
2.4
2.4
1.3
1.2
1.6
1.9
0.9
2.3
0.8
0.9
0.7
0.7

2,190

1.1

1,380

0.7

2,000

1.0

5,130
3,010
1,890
2,740

2.6
1.5
1.0
1.4

3,420

1.7

2,340

1.2

1,330

0.7

1,040

0.5

No.
O-85
O-86
O-87
O-88
Z-02
Z-03
Z-05
Z-07
Z-08
Z-09
Z-10
Z-11
Z-12
Z-13
Z-14

Area1

Acquisition
Price2(JPY million)% ofPortfolio3

Central Tokyo

3,500

1.8

3,100
2,300
1,680
178,497
1,970
3,218
1,310

1.6
1.2
0.9
90.6
1.0

558

0.3

638

0.3

1,210

0.6

2,400

1.2

1,620

0.8

2,430

1.2

1,700

0.9

1,400
18,454
196,951

0.7
9.4
100.0

Asset Name
Ichigo Shibuya Udagawacho
Building
Win Gotanda Building
Ichigo Hongo Building
Oimachi Center Building

Central Tokyo
Tokyo Metro Area
Central Tokyo
Subtotal - Office (74 Assets)
Ichigo Fiesta Shibuya Building
Central Tokyo
Tokyo Metro Area
Ichigo Burg Omori Building
Tokyo Metro Area
Ichigo Machida East Building
Ichigo Sapporo Minami 2 Nishi 3
Four Major Regional
Building
CitiesFour Major Regional
Ichigo Daimyo Balcony
Cities
Konami Sports Club Izumi Fuchu
Other Regional Cities
Ichigo Shibuya Bunkamura DoriCentral Tokyo
Building
Twicere Yokohama Isogo
Tokyo Metro Area
(Retail Section)
Lions Square Kawaguchi
Tokyo Metro Area
Ichigo Shin Yokohama Arena DoriTokyo Metro Area
Building
Ichigo Kamata Building
Tokyo Metro Area
Subtotal - Others (11 Assets)
Total (85 Assets)
1

1.6
0.7

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.
2
Acquisition Price excludes incidental expenses such as property, city planning, andconsumption taxes, and other fees. Assets O-02 through O-42 (31 assets) and assets Z-02
through Z-08 (5 assets) show the appraisal value as of October 31, 2011.
3% of Portfolio is based upon acquisition price.

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