December 26, 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 Concerning Sale of Domestic Real Estate Trust Beneficiary Interest
This is a notification that Mitsui Fudosan Accommodations Fund Management Co., Ltd., an investment trust
management company, which has been commissioned by Nippon Accommodations Fund Inc. (“NAF”) to manage
its assets, decided on the sale of a real estate trust beneficiary interest in Japan and completed the sale as shown
below.
1. Reason for Sale
NAF has decided the sale of the property after comprehensively considering the composition of the portfolio andtrends in the real estate market, etc.
2. Overview of Sale
(1) Name of property soldPark Axis Shibuya(2) Type of property sold

Trust beneficiary interest(3) Sales price (Note 1)¥1,270,000 thousand(4) Book value¥1,213,822 thousand (as of August 31, 2016)(5) Differences between sale price and book value¥56,177 thousand(6) Appraised value (Note 2)¥1,150,000 thousand(7) Date of conclusion of sales contract

December 26, 2016(8) Date of handoverDecember 26, 2016(9) Buyer

Not disclosed (Note 3)(10) Settlement

Lump sum settlement at time of handover(Note 1) ”Sales price” denotes the trading value (exclusive of miscellaneous expenses, fixed property taxes, urban planning taxes,
consumption taxes, and local consumption taxes) specified in the trust beneficiary interest sales contract for the property
sold.
(Note 2) ”Appraised value” is based on the amount mentioned in the real estate appraisal report (price as of August 31, 2016) which
Morii Appraisal & Investment Consulting, Inc., prepared for the property sold.
(Note 3) Not disclosed as the consent from the buyer has not been obtained.

13. Outline of the property soldName of property soldType of property sold
Trustee
Trust period
Appraisal company
Appraised value (Note 1)
Date of value appraisal (Note 1)
Location
Residence indication
Building-to-land ratio (Note 2)
Floor-area ratio (Note 2)Land
ZoningSite area (Note 3)
Ownership form
Completion date (Note 4)

Building

Details oftenants(Note 6)Park Axis Shibuya
Trust beneficiary interest
Sumitomo Mitsui Trust Bank, Limited
From December 12, 2003 to December 31, 2023
Morii Appraisal & Investment Consulting, Inc.
¥1,150,000 thousand
August 31, 2016
4-7 Shibuya 1-chome, Shibuya-ku, Tokyo
80%
500%
Commercial district
340.85m2
Proprietorship
April 25, 2003

Structure / Number of stories(Note 5)Flat-roofed reinforced concrete structure / 10 stories

Uses (Note 5)
Gross floor area (Note 5)
Ownership form
Rentable units
Rentable area

Apartment building
2
1,194.78m
Proprietorship20
1,094.28m2

Total number of tenants
Total rental revenues
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit / Security deposit

1¥5,225 thousand
20
20
1,094.28m2
1,094.28m2
100.0%¥15,898 thousand(Note 1) “Appraised value” and “date of value appraisal” are based on the real estate appraisal report prepared by Morii Appraisal &Investment Consulting, Inc. for the property sold.
(Note 2) “Building-to-land ratio” is the ratio of the building’s construction area to the site area as stipulated in Article 53 of the BuildingStandards Act, and the figure stipulated by city planning in accordance with zoning, etc. is indicated. “Floor-area ratio” is theratio of the building’s gross floor area to the site area as stipulated in Article 52 of the Building Standards Act, and the figure
stipulated by city planning in accordance with zoning, etc. is indicated.
(Note 3) “Site area” denotes the land area included in the register.
(Note 4) “Completion date” of the building denotes the date included in the register.
(Note 5) “Structure / Number of stories”, “uses”, and “gross floor area” are based on the description in the register.
(Note 6) Explanation on “details of tenants”(i)“Total number of tenants” is denoted as 1 tenant because, as to the property sold, NAF has concluded a master lease
contract (blanket lease contract) with Mitsui Fudosan Residential Lease Co., Ltd as the master lease company.

(ii)“Total rental revenues” denotes the monthly rent under the lease contract (total of housing rent and common service fees,(iii)“Rentable units” denotes the number of units that can be rented within the property sold.

excluding parking fees) concluded as of November 30, 2016.
(iv)

Figures for “Rented units” and “Rented area” and “Deposit / Security deposit” are based on information valid as ofNovember 30, 2016.

(v)“Rentable area” denotes the total area of the building that can be rented within the property sold.

(vi)“Occupancy rate” denotes the ratio of the “rented area” against the “rentable area” and the figures are rounded to one
decimal place.

24. Outline of Buyer
The buyer is a domestic general business corporation, but information is not disclosed as the consent from thebuyer has not been obtained. There are no capital, personal or business relationships to report between the buyer
and NAF, the investment trust management company, or any related parties or associated companies of NAF or
the investment trust management company. Also, the buyer and any related parties or associated companies ofthe buyer do not fall under the category of related parties of NAF or the investment trust management company.
5. Outline of brokerage
Not applicable.
6. Outlook for management after sale of the property
The impact of the sale of the property on NAF’s financial results for the period ending February 28, 2017 (22ndPeriod: September 1, 2016 to February 28, 2017) is minimal, and there is no change to the financial results
forecast for the period.
Part of the capital gains resulting from the sale of the property is planned to be internally reserved as a reserve.
The funds gained from the sale of the property is planned to be allocated to future acquisitions of properties,
repayment of borrowings, payment for repairs and maintenance, working funds, etc.

7. Summary of appraisal report
Appraised value
Appraisal company
Date of value appraisal
Item
Value of earnings
Value calculated by the direct capitalization
method [(4)÷(5)](1) Operating revenues [(a)−(b)]¥1,150,000 thousand
Morii Appraisal & Investment Consulting, Inc.
August 31, 2016
(Unit: Thousands of yen)
Details
Summary, etc.
Calculated making correlation to the value of earnings
1,150,000 found by the DCF method and the value of earnings
found by the direct capitalization method.
1,170,000
63,106(a) Potential gross revenue

66,282(b) Vacancy loss, etc.

3,176(2) Operating expenses[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)](c) Maintenance expenses(d) Utilities expenses

Appraised based on medium- and long-term stablerental income, etc. based on current condition, etc.
Appraised based on standard vacancy rates giving
consideration to individual characteristics of the subject
real estate.

13,5062,796715(e) Repair expenses

1,652(f) Property management fees

2,494(g) Tenant soliciting fees, etc.

2,647(h) Taxes and public dues

2,700(i) Property insurance fees(j) Other expenses

60
442

3

Appraised based on actual records making reference tolevels at similar real estate.
The cost of restoration to original condition is appraised
giving consideration to actual records and theevacuation rate, making reference to levels at similar
real estate. Repair expenses are posted based on thestandardized amount of the estimate in the engineering
report.
Appraised making reference to levels at similar realestate.
Appraised taking into account local practice and theevacuation rate of the subject real estate.
For the land, appraised based on actual amountconsidering the fluctuation rate. For the building,appraised by considering annual depreciation. For
depreciable assets, appraised based on actual
amounts considering the annual depreciation, etc.
Internet usage fees and CATV.

(3) Net operating income [(1)−(2)](k) Earnings from temporary
deposits

49,600302(l) Capital expenditures

2,039(4) Net income [(3)+(k)−(l)]47,863(5) Cap rate
Value calculated by discounted cash flow
method4.1%

3.9%

Terminal cap rate

4.3%

*

Appraised comprehensively taking into account market
trends, etc. after considering risk factors oflocation/individual characteristics of the subject realestate as well as standard cap rate of real estate
standing in an area judged to have the lowest risk.
Appraised by considering uncertainty of fluctuation
projections for future net income, future deterioration of
the building, and risk of sale, in addition to capitalization
rate.

893,000
87.5%
12.5%

Other items considered by the appraisal
company in making the appraisal*

Appraised by considering the income and capitalfluctuation risk in addition to the discount rate.

1,120,000

Discount rate

Cost method value
Land ratio
Building ratio

Appraised by multiplying the amount obtained bysubtracting the amount equivalent to security deposits
of vacancies from the amount of security deposits, etc.
at full occupancy, by yield of 2.0%.
Posted based on the standardized amount of theestimate in the engineering report.

－

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.
＜Attached Document＞
Portfolio list after the sale of the property is completed (on an acquisition price basis)4

<Attached Document> Portfolio list after the sale of the property is completed (on an acquisition price basis)
1. Rental Apartments
Name

Location

Acquisition
price(millions of yen)
(Note 1)

Portfolio share(%)(Note 2)

Okawabata Apartment
Communities
Park Axis Gakugei Daigaku

Chuo-ku, Tokyo

30,816

10.4

Setagaya-ku, Tokyo

1,760

0.6

Park Axis Shibuya Jinnan

Shibuya-ku, Tokyo

3,230

1.1

Park Axis Aoyama Kotto DoriMinato-ku, Tokyo

1,730

0.6

Park Axis Kagurazaka Stage

Shinjuku-ku, Tokyo

1,400

0.5

Park Axis Shirokanedai

Minato-ku, Tokyo

5,140

1.7

Park Axis Bunkyo Stage

Bunkyo-ku, Tokyo

4,440

1.5

Park Axis Tsukishima

Chuo-ku, Tokyo

930

0.3

Park Axis Otsuka

Toshima-ku, Tokyo

1,655

0.6

Park Axis Minami Azabu

Minato-ku, Tokyo

3,939

1.3

Park Axis Nihonbashi Stage

Chuo-ku, Tokyo

7,557

2.5

Park Axis Hamamatsucho

Minato-ku, Tokyo

2,025

0.7

Park Axis Hongo no Mori

Bunkyo-ku, Tokyo

2,910

1.0

Park Axis Tameike Sanno

Minato-ku, Tokyo

2,860

1.0

Park Axis Roppongi Hinokicho
Koen

Minato-ku, Tokyo

2,170

0.7

Park Axis Ochanomizu Stage

Bunkyo-ku, Tokyo

9,710

3.3

Park Axis Okachimachi

Taito-ku, Tokyo

1,070

0.4

Park Cube Hongo

Bunkyo-ku, Tokyo

1,760

0.6

Park Cube Kanda

Chiyoda-ku, Tokyo

2,454

0.8

Park Cube Ichigaya

Shinjuku-ku, Tokyo

1,949

0.7

Park Cube Asakusa Tawaramachi

Taito-ku, Tokyo

2,508

0.8

Park Cube Ueno

Taito-ku, Tokyo

2,233

0.8

Park Cube Ikebukuro Kanamecho

Toshima-ku, Tokyo

1,608

0.5

Park Axis Meguro Honcho

Meguro-ku, Tokyo

1,810

0.6

Park Axis Shin Itabashi

Itabashi-ku, Tokyo

3,430

1.2

Park Axis Akihabara

Chiyoda-ku, Tokyo

1,200

0.4

Park Axis Toyocho

Koto-ku, Tokyo

3,950

1.3

Park Axis Takinogawa

Kita-ku, Tokyo

1,820

0.6

Park Axis Asakusabashi

Taito-ku, Tokyo

2,717

0.9

Park Axis Nihonbashi Hamacho

Chuo-ku, Tokyo

5,540

1.9

Park Cube Yoyogi Tomigaya

Shibuya-ku, Tokyo

1,975

0.7

Park Axis Monzen Nakacho

Koto-ku, Tokyo

1,700

0.6

Park Cube Itabashi Honcho

Itabashi-ku, Tokyo

4,170

1.4

Park Cube Gakugei Daigaku

Meguro-ku, Tokyo

Park Cube Oimachi

Shinagawa-ku, Tokyo

Park Axis Nishigahara

Kita-ku, Tokyo

Park Axis Kinshicho

Sumida-ku, Tokyo

1,448

0.5

Park Axis Tatsumi Stage

Koto-ku, Tokyo

7,464

2.5

Park Axis Kameido

Koto-ku, Tokyo

2,359

0.8

Park Axis Honancho

Nakano-ku, Tokyo

745

0.3

5

910

0.3

1,440

0.5

840

0.3

Name

Location

Acquisition
price(millions of yen)
(Note 1)

Portfolio share(%)(Note 2)

Park Axis Itabashi

Kita-ku, Tokyo

1,448

0.5

Park Axis Oshiage

Sumida-ku, Tokyo

1,193

0.4

Park Axis Takadanobaba

Toshima-ku, Tokyo

1,222

0.4

Park Axis Toyosu

Koto-ku, Tokyo

14,300

4.8

Park Axis Hatchobori

Chuo-ku, Tokyo

1,760

0.6

Park Axis Itabashi Honcho

Itabashi-ku, Tokyo

987

0.3

Park Axis Sumiyoshi

Sumida-ku, Tokyo

1,006

0.3

Park Cube Yotsuya Sanchome

Shinjuku-ku, Tokyo

2,749

0.9

Park Cube Hatchobori

Chuo-ku, Tokyo

4,200

1.4

Park Axis Kamata Ichibankan

Ota-ku, Tokyo

1,069

0.4

Park Axis Taito Negishi

Taito-ku, Tokyo

672

0.2

Park Axis Komagome

Toshima-ku, Tokyo

1,389

0.5

Park Axis Itabashi Honcho
Nibankan

Itabashi-ku, Tokyo

1,859

0.6

Shibaura Island Air Tower

Minato-ku, Tokyo

7,905

2.7

Park Cube Higashi Shinagawa

Shinagawa-ku, Tokyo

6,060

2.0

Park Cube Sasazuka

Shibuya-ku, Tokyo

2,200

0.7

Park Axis Higashi Jujo

Kita-ku, Tokyo

1,700

0.6

Park Cube Heiwadai

Nerima-ku, Tokyo

1,204

0.4

Park Cube Meguro Tower

Meguro-ku, Tokyo

9,000

3.0

Park Cube Nihonbashi Suitengu

Chuo-ku, Tokyo

2,711

0.9

Park Cube Ginza East

Chuo-ku, Tokyo

2,269

0.8

Park Cube KayabachoChuo-ku, Tokyo

1,105

0.4

Park Cube Honjo Azumabashi

Sumida-ku, Tokyo

1,252

0.4

Park Axis Kiyosumi Shirakawa

Koto-ku, Tokyo

696

0.2

Park Axis Asakusabashi Nichome

Taito-ku, Tokyo

1,079

0.4

Park Axis Nishi Sugamo

Kita-ku, Tokyo

1,439

0.5

Park Axis Ueno

Taito-ku, Tokyo

1,389

0.5

Park Axis Akihabara East

Taito-ku, Tokyo

1,369

0.5

Park Axis KayabachoChuo-ku, Tokyo

1,809

0.6

Park Axis Kinshicho Shinsui Koen

Sumida-ku, Tokyo

1,369

0.5

Park Cube Kasuga Andozaka

Bunkyo-ku, Tokyo

2,670

0.9

Park Cube Kameido

Koto-ku, Tokyo

3,020

1.0

Park Axis Shin Okachimachi East

Taito-ku, Tokyo

1,299

0.4

Park Axis Nihonbashi Honcho

Chuo-ku, Tokyo

1,469

0.5

Park Cube Nishigahara Stage

Kita-ku, Tokyo

4,110

1.4

Park Cube Atagoyama Tower

Minato-ku, Tokyo

8,650

2.9

Park Axis Shibaura

Minato-ku, Tokyo

1,045

0.4

Park Axis Asakusa Kuramae

Taito-ku, Tokyo

1,095

0.4

Park Axis Kamata Station Gate

Ota-ku, Tokyo

4,144

1.4

Park Axis Kinshicho Residence

Sumida-ku, Tokyo

1,251

0.4

Park Axis Oshiage Sumida Koen

Sumida-ku, Tokyo

1,055

0.4

Park Axis Magome Residence

Ota-ku, Tokyo

1,450

0.5

Park Axis Higashi Ueno

Taito-ku, Tokyo

1,250

0.4

250,291

84.1

Tokyo 23 wards total

6

Name

Location

Acquisition
price(millions of yen)
(Note 1)

Portfolio share(%)(Note 2)

Park Cube Keio Hachioji II

Hachioji-shi, Tokyo

1,130

0.4

Park Axis Nishi Funabashi

Funabashi-shi, Chiba

1,020

0.3

1,419

0.5

1,679

0.6

970

0.3

1,200

0.4

2,250

0.8

1,119

0.4

1,539

0.5

12,326

4.1

2,440

0.8

1,920

0.6

1,515

0.5

1,890

0.6

742

0.2

1,547

0.5

2,320

0.8

960

0.3

605

0.2

1,650

0.6

Park Axis Yokohama Idogaya
Park Axis Chiba Shinmachi
Park Axis Chiba
Park Cube Kita Matsudo
Park Cube Musashi Kosugi
Park Axis Yokohama Tanmachi
Koen
Park Axis Yokohama Yamashitacho

Minami-ku,
Yokohama-shi,
Kanagawa
Chuo-ku, Chiba-shi,
Chiba
Chuo-ku, Chiba-shi,
Chiba
Matsudo-shi, Chiba
Nakahara-ku,
Kawasaki-shi,
Kanagawa
Kanagawa-ku,
Yokohama-shi,
Kanagawa
Naka-ku, Yokohama-shi,
Kanagawa

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
MaePark Axis Shin Sapporo
Park Axis Esaka HiroshibachoPark Axis Utsubo Koen
Park Cube Kitahama

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,
FukuokaMinami-ku, Fukuoka-shi,
Fukuoka
Chuo-ku, Sapporo-shi,
Hokkaido
Atsubetsu-ku,
Sapporo-shi, Hokkaido
Suita-shi, Osaka
Nishi-ku, Osaka-shi,Osaka
Chuo-ku, Osaka-shi,
Osaka

827

0.3

2,369

0.8

2,399

0.8

1,970

0.7

Other major cities total (Note 4)

23,154

7.8

Rental Apartments Total

285,77196.1

7

2. Other Accommodation Assets
Location

Acquisition
price(millions of yen)
(Note 1)

Portfolio share(%)(Note 2)Ashiya-shi, Hyogo

928

0.3

991

0.3

916

0.3

374

0.1

Name
Dormy Ashiya
Kawaijuku Kyoto Gakushin Ryo
Sundai Horikawa Ryo

Nakagyo-ku, Kyoto-shi,
Kyoto
Kamigyo-ku, Kyoto-shi,
Kyoto

Dormy Rakuhoku

Kita-ku, Kyoto-shi, Kyoto

Rikkyo University International
Dormitory (RUID) Shiki

Shiki-shi, Saitama

1,478

0.5

Dormy Naka Itabashi

Itabashi-ku, Tokyo

1,041

0.3

Philosophia Nishidai

Itabashi-ku, Tokyo

1,249

0.4

1,152

0.4

540

0.2

1,160

0.4

Dormy Musashi Kosugi
Artis Sendai Kakyoin
Artis Sendai Kimachi DoriNakahara-ku,
Kawasaki-shi,
Kanagawa
Aoba-ku, Sendai-shi,
MiyagiAoba-ku, Sendai-shi,
Miyagi

Medical Home Granda Sangen
Jaya (Land with leasehold interest)

Setagaya-ku, Tokyo

735

0.2

Dormy Nishi Ogikubo

Suginami-ku, Tokyo

1,100

0.4

Other Accommodation Assets Total

11,664

3.9Grand total

297,435100.0(Note 1) The “Acquisition price” item does not include anticipated acquisition expenses, fixed property taxes, urban planning taxes,
consumption taxes or local consumption taxes.
(Note 2) The “Portfolio share” item indicates the percentage contribution of each property holding to the “Acquisition price” item.
The percentage figure is rounded to one decimal place.
(Note 3) “Greater Tokyo” indicates Tokyo metropolis (excluding Tokyo 23 wards), and the 3 prefectures of Kanagawa, Saitama andChiba.
(Note 4) “Other major cities” indicates major cities across Japan and their surrounding areas, excluding the Tokyo area.

8