April 6, 2010
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-0022
Nippon Accommodations Fund Inc.
Representative Executive Director Yuji Yokoyama(Code number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Kosei Murakami
Contact CFO and Director Morio Shibata(TEL 03-3246-3677)

Notification Concerning Acquisition ofDomestic Real Estate Trust Beneficiary Interest
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on and completed the acquisitionof real estate trust beneficiary interest in Japan as shown below.
1. Reason for acquisition
Based on the provisions for investments and policies on asset management provided in Article of Incorporation,
the decision to acquire the following property was made to ensure the steady growth of the whole portfolio, andfor the diversification and further enhancement of the investment portfolio in Tokyo's 23 wards.
2. Overview of acquisition(1)(2)

Name of property acquired (Note 1)
Type of property acquired

Park Cube Yotsuya Sanchome
Trust beneficiary interest

(3)
(4)

Acquisition price (Note 2)
Date of conclusion of sales contract¥2,749,000 thousand
March 30, 2010

(5)
(6)
(7)
(8)

Date of handoverSellerAcquisition funds
Method of payment

March 30, 2010
Godo Kaisha TN Second
Own funds or borrowings
Full payment at the time of delivery(Note 1) The current name of the property acquired is “City Village Yotsuya Sanchōme I.” NAF plans to rename the property as
stated above without delay after it has acquired the property.
(Note 2) “Acquisition price” denotes the trading value (exclusive of miscellaneous expenses for acquisition, fixed property taxes,
urban planning taxes, consumption taxes, and local consumption taxes) specified in the trust beneficiary interest sales
contract for the property acquired.

3. Description of the property acquired(1) Outline of the property acquired
Name of property acquired

Park Cube Yotsuya Sanchome

Type of property acquired

Trust beneficiary interest

Trustee

The Sumitomo Trust and Banking Co., Ltd.

Trust period

From March 16, 2009 to March 18, 2019

Acquisition price (Note 1)¥2,749,000 thousand

Appraisal company

Daiwa Real Estate Appraisal Corporation

Appraised value (Note 2)¥2,970,000 thousand

Date of value appraisal (Note 2)

February 28, 20101

Location

Residence indication

Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)
Ownership form
Completion date (Note 4)
Structure / number ofstories (Note 5)
Uses (Note 5)
Building
Gross floor area (Note 5)
Ownership form
Rentable units
Rentable area
Existence of security interests
Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)22-2, Araki-cho, Shinjuku-ku, Tokyo and other (district where residence
indication has not been implemented yet)
80%, 60%
400%, 300%
Neighborhood commercial zone, Category 1 residential district
1,010.96m²
Trust beneficiary interest
February 26, 2009
Flat-roofed reinforced concrete structure / 10 stories above ground and
1 underground story
Apartment building / parking lot / bicycle parking lot
5,035.21m²
Trust beneficiary interest
130
3,599.82m²
None
None
The property is 6 minutes walk from Yotsuya-sanchome Station of theTokyo Metro Marunouchi Line and 3 minutes walk from Akebonobashi
Station of the Toei Shinjuku Line. These two lines provide excellent
access to the central Tokyo business area as they directly connect tovarious stations including Tokyo and Shinjuku.
While the area that this property is located in has a serene feel to it due
to its many historical buildings, such as temples, it is a central urban areathat offers superb daily life convenience with restaurant-filled shopping
streets and main-road convenience stores located close by. Because it
has both daily life and transport convenience, steady rental demand canbe expected to center on DINKs and single people, who value such
convenience.

Total number of tenants
Rentable units
Rented units
Rentable area (m²)
Rented area (m²)
Occupancy rate (%)
Deposit (thousand yen)
Total rental revenues

1
130
126
3,599.82
3,490.27
97.0
19,928
Please refer to <Attached Document 1> Summary of theappraisal report on the amount of the property acquired.

(Note 1) “Acquisition price” denotes the trading value (exclusive of miscellaneous expenses for acquisition, fixed property taxes,
urban planning taxes, consumption taxes, and local consumption taxes) specified in the trust beneficiary interest sales
contract for the property acquired.
(Note 2) “Appraised value” and “Date of value appraisal” are stated based on the amount mentioned in the real estate appraisal
report which Daiwa Real Estate Appraisal Corporation prepared for the property acquired.
(Note 3) “Site area” of the Land item denotes the land area as entered in the register.
(Note 4) “Completion date” of the Building item denotes the date as entered in the register.
(Note 5) “Structure / number of stories,” “Uses,” and “Gross floor area” are stated based on the entries in the register.
(Note 6) “Special affairs” denotes matters which NAF recognizes as important as of today, taking into consideration their effects on
title-related matters, use, appraised value, profitability, etc. of the property acquired.
(Note 7) Description of the “Details of tenants” column:(i) “Total number of tenants” is denoted as “1” where a master lease contract (blanket lease contract) has been concluded
with a master lease company. As to the property acquired, NAF has concluded a master lease contract with master
lease company, that is, ITOCHU URBAN COMMUNITY LTD. The above “Total number of tenants” means the total
number of tenants after conclusion of the said master lease contract. Also, NAF plans to change the property
management company and master lease company to Mitsui Fudosan Housing Lease Co., Ltd. as of today.
(ii) “Rentable units” denotes the number of rentable units in the property acquired.
(iii) Figures for “Rented units,” “Rented area,” and “Deposit” are based on information provided by the seller, valid as ofMarch 15, 2010.
(iv) “Rentable area” denotes the total rentable area of the building of the property acquired.
(v) “Occupancy rate” is the ratio of “Rented area” to “Rentable area” and is rounded to one decimal place.

2(2) Outline of investigations into the state of the building, etc.

Investigations into
the state of thebuilding

Earthquake risk
diagnosis

Consigned investigatingcompany
Urgent repair cost
Short-term repair cost
Repair and renewal costs
expected to be necessary
within 12 years
Replacement value
Report date ofinvestigations into thestate of the building
PML value (Note 2)

Sumitomo Mitsui Construction Co., Ltd.
–
¥100 thousand (Note 1)¥42,693 thousand¥1,202,557 thousand
March 15, 2010
8.7%

(Note 1) The short-term repairs have been carried out before NAF acquired the property.
(Note 2) The PML value is based on a report on earthquake risk diagnosis made by Sumitomo Mitsui Construction Co., Ltd.
However, the report on earthquake risk diagnosis only states the views of the consigned investigating company and does
not provide any guarantee for its contents. PML (Probable Maximum Loss) represents the rate of probable maximum loss
to be caused by earthquakes. In this case, it means the extent of damage to be caused by one of the biggest earthquakes
anticipated to happen within the expected duration of service (the biggest earthquake which happens once every 475
years = 10% chance of a big earthquake happening once every 50 years) represented by the rate (%) of the estimatedcost of restoration from the damage to the replacement cost.

Profiles of third party investigative body
Trade nameHead office address
Representative
CapitalDescription of principal operations
Relationship with NAF or investment
trust management company

Sumitomo Mitsui Construction Co., Ltd.
1-6, Tsukuda 2-chome, Chuo-ku, Tokyo
Hisaya Igarashi, President and Chief Executive Officer¥12,003 million
Design and construction of civil engineering, building, prestressed
concrete work and related operations, and othersNone

4. Outline of seller
Trade name
Address

PurposeDate of establishment
CapitalOutline of managing partner

Godo Kaisha TN Second
c/o Tokyo Kyodo Accounting Office
1-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
1. Acquisition, ownership, disposition, lease and management of realestate2. Acquisition, ownership and disposition of real estate trust beneficiaryinterests
3. Other businesses related to or peripheral to those listed in 1. and 2.
above
August 6, 2007
¥1,000Trade name
IA Residential Holdings Ippan Shadan Hojin
Address
2-3, Marunouchi 3-chome, Chiyoda-ku, Tokyo
Representative Shinji Arakawa, Representative Director
1. Acquisition, ownership and disposition of real estate
2. Lease and management of real estate
3. Acquisition, ownership and disposition of real estate
trust beneficiary interests
4. Acquisition, ownership and disposition of shares,
Description ofoperations
investment interest, or special interest etc. ofcompany conducting businesses listed in 1. – 3.
above
5. Other businesses related to or peripheral to thoselisted in 1. – 4. above

3

Relationships between NAF or the investment trust management company, and the seller
Neither NAF or the investment trust management company, nor any
related parties or associated companies of NAF or the investment trust
management company has direct or indirect investment in the seller. Also,
Relationships between NAF or thethere are no capital relationships, personal relationships or business
investment trust management
relationships to report between the seller’s investors (including originalcompany, and the seller
investors) and NAF, or the investment trust management company, or any
related parties or associated companies of NAF or the investment trust
management company.
There are no capital relationships, personal relationships or business
relationships to report between NAF or the investment trust management
Relationships between NAF or thecompany, and the seller’s managing partner. Also, there are no capital
investment trust management
relationships, personal relationships or business relationships to reportcompany, and the managing
between any related parties or associated companies of NAF or thepartner
investment trust management company, and any related parties or
associated companies of the seller’s management company.

5. Transactions with related parties and the like
The property acquired has not been acquired from a party classified as having a relationship of special
interest with NAF or the investment trust management company. In addition, since Mitsui Fudosan Housing Lease
Co., Ltd., which is to be the master lease company and property management company as of today, constituterelated parties and the like (Note 1), in accordance with NAF’s self-established rules on asset management
relevant to transactions with related parties and the like, the master lease contract and property management
contract have been carried out through deliberation and decision by the compliance committee of the investment
trust management company and the investment committee.
(Note 1) “Related parties and the like” means related parties and the like of an investment trust management company which has
concluded an asset management contract with NAF, as determined in the Order for Enforcement of the Act on Investment
Trust and Investment Corporation, Article 123.

6. Situation of the acquirer of the property
Not applicable.
7. Earthquake resistance matters
The property received a structural calculation conformity judgment pursuant to the Building Standards Act asrevised by Act No. 92 of 2006.
In addition, NAF always examines earthquake risks during the course of due diligence upon acquisition ofproperties, from perspectives that are different to building certification investigations performed by an inspection
and certification agency. NAF makes a decision on acquisition after performing appropriate analysis of earthquake
risks of the property to be acquired, independently considering the structural earthquake-resistance of the building
to be acquired, based on drawing reviews using structure drawings, structural design outlines, etc.

4

8. Outline of brokerage(1) Outline of broker
Trade nameHead office address
Representative

ITOCHU Corporation
1-3, Kyutaromachi 4-chome, Chuo-ku, Osaka-shi, Osaka
Eizo Kobayashi, President and Chief Executive Officer
Trading operations, dealing operations, brokerage operations, agency
Description of operations
operations, along with manufacturing operations and processing
operations, and other
Capital¥202,241 million
Date of establishment
December 1, 1949
Relationships between NAF or the investment trust management company, and the broker
There are no capital relationships to report between NAF or the investment
trust management company, and the broker. Also, there are no capital
Capital relationships
relationships to report between any related parties or associatedcompanies of NAF or the investment trust management company, and any
related parties or associated companies of the broker.
There are no personal relationships to report between NAF or theinvestment trust management company, and the broker. Also, there are no
Personal relationships
personal relationships to report between any related parties or associatedcompanies of NAF or the investment trust management company, and any
related parties or associated companies of the broker.
There are no business relationships to report between NAF or theinvestment trust management company, and the broker. Also, there are no
Business relationships
business relationships to report between any related parties or associatedcompanies of NAF or the investment trust management company, and any
related parties or associated companies of the broker.
The broker does not fall under the category of related parties of NAF or the
Applicability to related parties
investment trust management company.

(2) Amount of brokerage fee¥82,530 thousand (exclusive of consumption taxes and local consumption taxes)
9. Outlook for management of the properties after acquisition
NAF shall separately disclose the outlook for results of operations subsequent to acquisition of this property
after it has considered the financial results of the other properties in the portfolio. NAF plans to make thisdisclosure when the financial results for the fiscal period from September 1, 2009 to February 28, 2010 isannounced (scheduled for April 16, 2010).

••

The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange(Kabuto Club) and the Ministry of Land, Infrastructure and Transport, and to the press club of theconstruction trade newspaper of the Ministry of Land, Infrastructure and Transport.
NAF website: http://www.naf-r.jp

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.
<Attached Documents>
1. Summary of the appraisal report on the amount of the property acquired
2. Portfolio list after the purchase of the property acquired is completed (on an acquisition price basis)
3. Photographs of exterior and entrance of the property acquired5<Attached Document 1> Summary of the appraisal report on the amount of the property acquired(unit: Thousands of yen)Appraised value (specified value)
Assessment item(a) Unit rental revenues, including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Operating
Revenues from key money, etc.
revenues
Renewal fees
Other revenues(1) (a) + (b) + (c) + (d)(e) Total loss from vacancies etc.
(f) Loss on bad debts(2) Operating revenues [(1) - (e) - (f)](g) Maintenance expense(h) Utilities expense(i) Repair expense(j) Property management fees
Operating (k) Tenant soliciting fee, etc.
expenses (l) Taxes and public dues(m) Property insurance fee(n) Other expenses(3) Operating expenses[(g) + (h) + (i) + (j) + (k) + (l) + (m) + (n)](4) Net operating income [(2) - (3)](o) Earnings from temporary deposits(p) Capital expenditures(5) Net income [(4) + (o) - (p)](6) Cap rate
Value of earnings calculated by the direct capitalization method[(5) ÷ (6)]Value calculated by discounted cash flow method
Discount rate
Terminal cap rate
Cost method value
Total value of land and building
Land value
Building value
Adjustment

2,970,000
Details
199,374
0
8,400
8,098
6,626
1,472
0
215,872
12,4880203,384
9,146
2,351
2,947
6,834
5,933
13,285391
547
41,439161,945598
3,468
159,075
5.3%
3,000,000
2,950,000
5.1%
5.5%
2,730,000
2,725,960
1,526,550
1,199,410
0

NAF requested real estate appraisal by Daiwa Real Estate Appraisal Corporation for the property acquired, based on points to notewhen appraising real estate from the Act on Securities Investment Trust and Securities Investment Corporations, and based on the Act
on Real Estate Appraisal (1963 Act No. 152, including later amendments) and on real estate appraisal standards. The above figures
record a summary of the real estate appraisal report prepared. The appraisal valuation is the judgment and opinion of the appraiser at a
fixed point in time, with no guarantees as to the validity or accuracy of the report, nor the possibility of transactions at the appraisedvalue.
Yen amounts are rounded down to the nearest thousand yen.

6

<Attached Document 2> Portfolio list after the purchase of the property acquired is completed (on an acquisition
price basis)

Name

Location

Okawabata Apartment Communities
Park Axis Gakugei Daigaku
Park Axis Shibuya Jinnan
Park Axis Aoyama Kotto-doriPark Axis Kagurazaka Stage
Park Axis Shirokanedai
Park Axis Bunkyo Stage
Park Axis Tsukishima
Park Axis Otsuka
Park Axis Minami Azabu
Park Axis Shibuya
Park Axis Nihonbashi Stage
Park Axis Hamamatsucho
Park Axis Hongo No Mori
Park Axis Tameike Sanno
Park Axis Roppongi Hinokicho Park
Park Axis Ochanomizu Stage
Park Axis Okachimachi
Park Cube Hongo
Park Cube Kanda
Park Cube Ichigaya
Park Cube Asakusa Tawaramachi
Park Cube Ueno
Park Cube Ikebukuro Kanamecho
Park Axis Meguro Honcho
Park Axis Shin Itabashi
Park Axis Akihabara
Park Axis Toyocho
Park Axis Takinogawa
Park Axis Asakusabashi
Park Axis Nihonbashihamacho
Park Cube Yoyogi Tomigaya
Park Axis Monzen Nakacho
Park Cube Itabashi Honcho
Park Cube Gakugei Daigaku
Park Cube Oimachi
Park Axis Nishigahara
Park Axis Kinshicho
Park Axis Tatsumi Stage
Park Axis Kameido
Park Axis Honancho
Park Axis Itabashi
Park Axis Oshiage

Chuo-ku, Tokyo
Setagaya-ku, Tokyo
Shibuya-ku, Tokyo
Minato-ku, Tokyo
Shinjuku-ku, Tokyo
Minato-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Toshima-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Minato-ku, Tokyo
Bunkyo-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Bunkyo-ku, Tokyo
Taito-ku, Tokyo
Bunkyo-ku, Tokyo
Chiyoda-ku, Tokyo
Shinjuku-ku, Tokyo
Taito-ku, Tokyo
Taito-ku, Tokyo
Toshima-ku, Tokyo
Meguro-ku, Tokyo
Itabashi-ku, Tokyo
Chiyoda-ku, Tokyo
Koto-ku, Tokyo
Kita-ku, Tokyo
Taito-ku, Tokyo
Chuo-ku, Tokyo
Shibuya-ku, Tokyo
Koto-ku, Tokyo
Itabashi-ku, Tokyo
Meguro-ku, Tokyo
Shinagawa-ku, Tokyo
Kita-ku, Tokyo
Sumida-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Nakano-ku, Tokyo
Kita-ku, Tokyo
Sumida-ku, Tokyo

7

Acquisition price(millions of yen)
(Note 1)
29,696
1,760
3,230
1,730
1,400
5,140
4,440
930
1,655
3,939
1,282
7,557
2,025
2,910
2,860
2,170
9,710
1,070
1,760
2,454
1,794
2,508
2,233
1,608
1,810
3,430
1,200
3,950
1,820
2,717
5,540
1,975
1,700
4,170
910
1,440
840
1,448
7,464
2,359
745
1,448
1,193

Portfolio
share(%)(Note 2)
16.2
1.0
1.8
0.9
0.8
2.8
2.4
0.5
0.9
2.2
0.7
4.1
1.1
1.6
1.6
1.2
5.3
0.6
1.0
1.3
1.0
1.4
1.2
0.9
1.0
1.9
0.7
2.2
1.0
1.5
3.0
1.1
0.9
2.3
0.5
0.8
0.5
0.8
4.1
1.3
0.4
0.8
0.7

Name
Park Axis Takadanobaba
Park Axis Toyosu
Park Axis Hatchobori
Park Axis Itabashi Honcho
Park Axis Sumiyoshi
Park Cube Yotsuya Sanchome
Tokyo 23 wards total
Park Cube Keio Hachioji
Park Cube Keio Hachioji II
Park Axis Nishifunabashi
Greater Tokyo total (Note 3)
Park Axis Meieki Minami
Park Axis Marunouchi
Park Axis Ropponmatsu
Park Axis Hakataeki Minami
Park Axis Naka Gofukumachi
Park Axis Shirakabe
Park Axis Sendai
Park Axis Hakata Minoshima
Park Axis Takamiya Higashi
Park Axis Sapporo Shokubutsuen
Mae
Other major cities total (Note 4)
Total

Location
Toshima-ku, Tokyo
Koto-ku, Tokyo
Chuo-ku, Tokyo
Itabashi-ku, Tokyo
Sumida-ku, Tokyo
Shinjuku-ku, Tokyo
Hachioji-shi, Tokyo
Hachioji-shi, Tokyo
Funabashi-shi, Chiba
Nakamura-ku,
Nagoya-shi, Aichi
Naka-ku, Nagoya-shi,
Aichi
Chuo-ku, Fukuoka-shi,
Fukuoka
Hakata-ku,
Fukuoka-shi, Fukuoka
Hakata-ku,
Fukuoka-shi, Fukuoka
Higashi-ku,
Nagoya-shi, Aichi
Wakabayashi-ku,
Sendai-shi, Miyagi
Hakata-ku,
Fukuoka-shi, Fukuoka
Minami-ku,
Fukuoka-shi, Fukuoka
Chuo-ku, Sapporo-shi,
Hokkaido

Acquisition price(millions of yen)
(Note 1)

Portfolio
share(%)(Note 2)

1,222
14,300
1,760
987
1,006
2,749
164,045
991
1,130
1,020
3,141

0.7
7.8
1.0
0.5
0.6
1.5
89.8
0.5
0.6
0.6
1.7

2,440

1.3

1,920

1.1

1,515

0.8

1,890

1.0

742

0.4

1,547

0.8

2,320

1.3

960

0.5

605

0.3

1,650

0.9

15,589182,7758.5
100.0(Note 1) “Acquisition price” is exclusive of miscellaneous expenses for acquisition, fixed property taxes, urban planning taxes,
consumption taxes, and local consumption taxes.
(Note 2) “Portfolio share” means the share that each property’s acquisition price represents of the total acquisition price, rounded to
the nearest one decimal place.
(Note 3) “Greater Tokyo” indicates Tokyo metropolis (excluding Tokyo’s 23 wards), and the 3 prefectures of Kanagawa, Saitama
and Chiba.
(Note 4) “Other major cities” indicates the regional core cities designated by government ordinance.

8

<Attached Document 3> Photographs of exterior and entrance of the property acquired

9