February 10, 2011
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 of Domestic Real Estate Properties andDomestic Real Estate Trust Beneficiary Interest
Nippon Accommodations Fund Inc. (“NAF“) hereby provides notice of its decision regarding its acquisition ofreal estate properties as well as 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 properties 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, the Tokyo
metropolitan area, and regional core cities designated by government ordinance.
2. Overview of acquisitions
Name of property to be acquired
Property 1
Property 2
Property 3
Property 4
Property 5
Property 6
Property 7
Property 8
Property 9
Property 10
Property 11
Property 12
Property 13
Property 14
Property 15
Property 16
Property 17
Property 18
Property 19(Note 1)

Park Axis Shin Sapporo
Park Axis Yokohama Idogaya
Park Axis Chiba Shinmachi
Park Axis Kamata Ichibankan
Park Axis Chiba
Park Axis Taito Negishi
Park Axis Esaka HiroshibachoPark Axis Komagome
Park Axis Utsubo Koen
Park Axis Itabashi Honcho Nibankan
Dormy Ashiya
Kawaijuku Kyoto Gakushin Ryo
Sundai Horikawa Ryo
Dormitory Rakuhoku
Rikkyo University International
Dormitory (RUID) Shiki
Dormy Naka Itabashi
Philosophia Nishidai
Dormy Musashi Kosugi
Shibaura Island Air Tower
Total

Type of property
to be acquired

Real estate

Acquisition price(Note 1)(Thousands of yen)
827,000
1,419,000
1,679,000
1,069,000
970,000
672,000
2,369,000
1,389,000
2,399,000
1,859,000
928,000
991,000
916,000
374,000
1,478,000

Real estate trust

1,041,000
1,249,000
1,152,000
7,905,000
30,686,000

Classification ofproperty

Rental Apartments

Other
Accommodation
Assets (Note 2)

Rental Apartments“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 contract for the sale of realestate or sale of real estate trust beneficiary interest sales with condition precedent for the properties to be acquired.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

1

(Note 2)(1)(2)“Other Accommodation Assets” include dormitories, student apartments, serviced apartments, senior residences, andcorporate housing.

(4)

Date of conclusion of sales contract
Planned dates of handover
Property 1 to Property 18
Property 19
Sellers
Property 1 to Property 10
Property 11 to Property 18
Property 19
Acquisition funds(5)

Method of payment(3)

February 10, 2011
March 1, 2011 (Note)
April 1, 2011
Mitsui Fudosan Co., Ltd.
Kyoritsu Maintenance Co., Ltd.
Shibaura Island Apartments Inc.
Net proceeds from issuance of new investment units through the
public offering and third party allocation stated in “Notification
Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” released on February 10, 2011 andborrowings.
Full payment at the time of delivery(Note) Pursuant to the real estate sales contract with condition precedent, the planned date of handover may be changed to either
March 2, 3 or 4, 2011.

3. Investment in “Other Accommodation Assets”
The main part of the acquisition strategy of NAF continues to be stable acquisition of Rental Apartments.
However, it will start investing in “Other Accommodation Assets”, as the revenue basis of NAF has been stabilized
backed by growth in portfolio size, and the investment market in “Other Accommodation Assets” excluding Rental
Apartments shown below appears to have matured in some categories.
In acquiring “Other Accommodation Assets” including dormitories and corporate housing, a wide network
provided by Mitsui Fudosan Co., Ltd. will be utilized.
Categories of Other
Accommodation Assets
Dormitories and student
apartments

Serviced apartments

Senior residences

Corporate housing

Main features
Dormitories and student apartments are rental apartments mainly rented
by students. In principle, NAF plans to invest in such apartments thathave one room.
Serviced apartments refer to furnished rental housing that offers various
services such as providing bed linen, room cleaning, and service with areception desk. Such apartments are solely provided for short-termstays. As providing and managing these services may require anorganizational body, NAF considers outsourcing their management tospecialized operators in the case of acquisition of serviced apartments.
Senior residences are rental housing equipped with facilities for nursing
care. As is the case with the serviced apartments, they require a
specialized organizational body and expertise to provide nursing careservices. NAF therefore considers renting the whole property to a
specialized operator.
Corporate housing refers to rental housing whose tenant is a
corporation and the housing is sub-leased to employees of thecorporation. In principle, when acquiring such housing, NAF will rent thewhole unit to a corporation. NAF intends to invest in such properties
which have a structure, style and features that can be managed as
general rental housing and leased separately if the tenant leaves theproperty.

a. Portfolio share
In the management of its portfolio, NAF sets the upper limit of the share of “Other Accommodation Assets”
in the overall portfolio as 10% (on the basis of acquisition price) for the time being.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

2

b. Area strategy
NAF is to choose areas with a wide variety of demand that corresponds to the features of the properties.
NAF intends to invest in properties, including “Rental Apartments” and “Other Accommodation Assets”, inthe 23 wards of Tokyo to account for more than 80% of its portfolio (on the basis of acquisition price).
c. Operation Management Strategy
NAF has selected Mitsui Fudosan Housing Lease Co., Ltd. as its master property management company
in the “Rental Apartments” section, in order to maintain and improve the quality and efficiency of its
operation and management business from a medium- to long-term perspective. For the “Other
Accommodation Assets” section, NAF will select an appropriate management system or an operator
which suits the features of the property that it acquires.
With regard to the acquisition of “dormitories” and “corporate housing” from Kyoritsu Maintenance Co.,
Ltd., NAF has chosen to rent a whole property to an operator in consideration of the property’s
management style. NAF has entered into a fixed-term building lease agreement of twenty years for each
property (with fixed rent and no cancellation allowed for the first ten years) with Kyoritsu Maintenance Co.,Ltd.

4. Description of the properties to be acquired(1) Outline of the properties to be acquired(i) Property 1: Park Axis Shin Sapporo
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)

Buildings

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
Gross floor area
(Note 5)
Ownership form
Rentable units
Rentable area

Existence of security interests
Special affairs (Note 6)

Park Axis Shin Sapporo
Real estate¥827,000 thousand
Daiwa Real Estate Appraisal Corporation¥828,000 thousand
January 31, 2011
3–5, Atsubetsu Chuo Nijo 5-chome, Atsubetsu-ku, Sapporo-shi, Hokkaido
80%
400%
Commercial zone
991.04 m2
Proprietorship
March 5, 2008
Flat-roofed reinforced concrete structure/13 stories
Apartment building, shop, garages, storeroom
24,769.99 m

Proprietorship
84 residential
3,729.05 m2

1 retail etc.

None
None

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

3

Special features of the property

Details of tenants(Note 7)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

Atsubetsu-ku, where this property is located, is in the east of Sapporo Cityand various recreational facilities are being developed in the area, such as
shopping centers, hotels, aquariums and science museums. This is taking
place based on the “Atsubetsu sub-center development basic plan” which
was formulated in 1972. In addition, the property has a rich naturalenvironment, as is represented by Nopporo Forest Park, to make it arelaxing residential area. Atsubetsu-ku has now become part of thecommuter belt for Sapporo City.
This property has convenient access to public transport, located afour-minute walk from the JR Line’s Shin Sapporo Station and afive-minute walk from Shin Sapporo Station on the subway line. The
property also has good access to the city center, as it takes only eightminutes (by special express or rapid train) from the JR Line’s Shin Sapporo
Station to Sapporo Station.
The area surrounding this property has a number of stores andrestaurants, so it is expected to attract single workers or DINKS
households who commute to the city looking for a place to live aconvenient city life with good access to the city center.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, thereasons for acquisition are the unique aspects of this property, and it isjudged that this will contribute to further enhance the entire NAF’s portfolio.
1
84 residential
1 retail etc.
803,729.05 m2
3,512.87 m2
94.2%¥10,243 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(ii) Property 2: Park Axis Yokohama Idogaya
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
LocationLand

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

Park Axis Yokohama Idogaya
Real estate¥1,419,000 thousand
Daiwa Real Estate Appraisal Corporation¥1,420,000 thousand
January 31, 2011129-5, Idogaya Nakamachi, Minami-ku, Yokohama-shi, Kanagawa (address
written in the old addressing system with land given a registration number)
60%, 80%
200%, 400%
Light-industrial district, Commercial zone
965.05 m2

Ownership form

Proprietorship

Residence indication<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

4

Buildings

Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

March 31, 2008
Flat-roofed reinforced concrete structure/10 stories
Apartment building, driving school, parking lot, garbage depot
23,653.00 m

Proprietorship
99 residential
2,706.59 m2

1 retail etc.

None
None
This property has good access to public transport, located a three-minute
walk from the Keihin Kyuko Line’s Idogaya Station. It takes about sevenminutes from this station to the JR Line’s Yokohama Station, and about
thirty-three minutes to the JR Line’s Tokyo Station (by changing to the JR
Tokaido Line at Yokohama Station). This means the property has goodaccess to both the prefecture’s center and Tokyo city center. As it is also a
twelve-minute walk from the property to the Yokohama Municipal Subway’s
Maita Station, there are stations for two different lines within walking
distance. There are commercial facilities such as Maruetsu near the stationand the property is expected to attract single workers who work in theprefecture looking for a convenient area, as well as those who commute toTokyo.
1
99 residential
1 retail etc.
1002,706.59 m2
2,706.59 m2
100.0%¥21,437 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(iii) Property 3: Park Axis Chiba Shinmachi
Name of property to be acquired
Type of property to be acquired

Park Axis Chiba Shinmachi
Real estate

Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)¥1,679,000 thousand
Daiwa Real Estate Appraisal Corporation¥1,680,000 thousand
January 31, 2011
1-14, Shinmachi, Chuo-ku, Chiba-shi, Chiba(address written in the old addressing system with land given a registration
number)80%
600%
Commercial zone
648.15 m2

Ownership form

Proprietorship

Location

Land

Residence indication<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

5

Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
Buildings

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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

May 30, 2008
Flat-roofed reinforced concrete structure/13 stories
Apartment building, shop, office, community life support facility, garbage
depot, parking lot
2

3,930.12 m

Proprietorship
77 residential
3,318.15 m2

7 retail etc.

None
None
This property has good access to public transport, being a five-minute walkfrom the JR Line’s Chiba Station. It takes about forty-five minutes from thisstation to the JR Line’s Tokyo Station (by rapid train), and the area has
good access to various cities in Chiba Prefecture, not only with the JR
Lines, but also with the Keisei Dentetsu Chiba Line, and Chiba Urban
Monorail.
The area surrounding the JR Line’s Chiba Station is a central area of theadministration and economy of the prefecture and has a concentration ofcommercial facilities such as department stores, household appliancemass retailers, and different kind of restaurants. There are also offices oflarge enterprises, making it a busy area.
This property is equipped with automatically lockable doors, interphones
with a color TV monitor, delivery lockers, BS and CS antennas, bathroom
dryers, shower toilets, air conditioners and so on, which makes it ideal forsingle workers who work in the prefecture looking for a residential
environment both convenient and comfortable, as well as people who
commute to Tokyo that would be putative tenants of this property.
1
77 residential
7 retail etc.
77
3,318.15 m2
3,066.98 m2
92.4%¥48,070 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(iv) Property 4: Park Axis Kamata Ichibankan
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication

Park Axis Kamata Ichibankan
Real estate¥1,069,000 thousand
Daiwa Real Estate Appraisal Corporation¥1,070,000 thousand
January 31, 2011
11-6, Kamata Honcho 2-chome, Ota-ku, Tokyo<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

6

Land

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

60%
200%
Light-industrial district
917.35 m2

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)

Proprietorship

Uses (Note 5)
Buildings

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)

March 19, 2009
Flat-roofed reinforced concrete structure/7 stories
Apartment building, community life support facility, storeroom, garbage
depot
2

2,044.68 m

Proprietorship
63
1,721.28 m2
None
None
This property is an eight-minute walk from the Keikyu Main Line’s and
Keikyu Airport Line’s Keikyu Kamata Station, and a twelve-minute walkfrom the JR Line’s and Tokyu Line’s Kamata Station. It is about sevenminutes from Keikyu Kamata Station to Shinagawa Station (by express
train), and about 25 minutes to Tokyo Station on the JR Line and otherlines (by changing at Shinagawa Station). From Kamata Station, there is adirect train to Tokyo Station, and it is easy to go toward Kawasaki or
Yokohama stations as well as Haneda Airport.
There is a concentration of station buildings, administrative buildings,
supermarkets, financial institutions, and recreational facilities around
Kamata Station. The area between this station and Keikyu Kamata Station
has a traditional commercial street with a range of small and middle-sizedcommercial buildings, creating a certain sized concentration of commercial
facilities around Keikyu Kamata Station. Furthermore, the area around thestation has been developed as part of an urban plan project to make thearea more convenient.
This property is expected to mainly attract single people who give priority to
the transportation environment and convenience as well as businessmen
who commute to offices around internationalizing Haneda Airport or around
Shinagawa Station where many offices are located.

Total number oftenants
Rentable units
Rented units
Rentable area

63
62
1,721.28 m2

Rented area
Occupancy rate
Deposit
Gross income from
rent

1,674.19 m2
97.3%¥12,515 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

1(v) Property 5: Park Axis Chiba
Name of property to be acquired

Park Axis Chiba

Type of property to be acquired
Acquisition price (Note 1)

Real estate¥970,000 thousand

Appraisal company

Daiwa Real Estate Appraisal Corporation<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

7

Appraised value (Note 2)
Date of value appraisal (Note 2)
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)
Buildings

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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

¥971,000 thousand
January 31, 2011
7-8, Benten 1-chome, Chuo-ku, Chiba-shi, Chiba
80%
500%
Commercial zone
487.66 m2
Proprietorship
March 19, 2009
Flat-roofed reinforced concrete structure/14 stories
Apartment building, parking lot, bicycle parking lot, storeroom, garbage
depot
2

2,834.51 m

Proprietorship91
2,270.32 m2
None
None
This property has good access to public transport, located a four-minute
walk from the JR Line’s Chiba Station. It is about forty-five minutes fromthis station to the JR Line’s Tokyo Station (by rapid train), and it is alsoeasy to go to various destinations in Chiba Prefecture by the Keisei
Dentetsu Chiba Line as well as by Chiba Urban Monorail.
The area around the JR Line’s Chiba Station is a central place for theadministration and economy of the prefecture with commercial facilities
such as department stores, household appliance mass retailers andvarious restaurants. There are also offices of major enterprises in this area,
making it a busy district.
This property is expected to mainly attract single people who work in theprefecture looking for a residential area which is convenient andcomfortable as well as those who commute to Tokyo.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, thereasons for acquisition are the unique aspects of this property, and it isjudged that this will contribute to further enhance the entire NAF’s portfolio.
19185
2,270.32 m2
2,118.70 m2
93.3%¥11,863 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(vi) Property 6: Park Axis Taito Negishi
Name of property to be acquired

Park Axis Taito Negishi

Type of property to be acquired
Acquisition price (Note 1)

Real estate¥672,000 thousand<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

8

Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)

Buildings

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

Daiwa Real Estate Appraisal Corporation¥673,000 thousand
January 31, 2011
2-1, Negishi 5-chome, Taito-ku, Tokyo
80%, 60%
500%, 300%
Commercial district, category 1 residential district
282.54 m2
Proprietorship
August 6, 2009
Flat-roofed reinforced concrete structure/14 stories
Apartment building, parking lot for bicycles, garage, garbage disposal site
2

1,487.56 m

Proprietorship40
1,283.13 m2
None
None
This property is located an eight-minute walk from the Tokyo Metro Hibiya
Line’s Iriya Station. It has good access to central Tokyo using the Hibiya
Line and it is easy to change to the JR Line at Ueno Station which is nextto Iriya Station.
This area’s proximity to a post office, convenience stores, andsupermarkets makes it an attractive place for business people as well as
small households who prefer a convenient location with good access tocentral Tokyo.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, thereasons for acquisition are the unique aspects of this property, and it isjudged that this will contribute to further enhance the entire NAF’s
portfolio.
140
39
1,283.13 m2
1,258.08 m2
98.0%¥8,728 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(vii) Property 7: Park Axis Esaka Hiroshibacho
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company

Park Axis Esaka Hiroshibacho
Real estate¥2,369,000 thousand
Daiwa Real Estate Appraisal Corporation

Appraised value (Note 2)¥2,370,000 thousand<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

9

Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)

Buildings

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

January 31, 2011
6-26, Hiroshibacho, Suita-shi, Osaka
80%
400%
Commercial zone
1,180.69 m2
Proprietorship
September 28, 2009
Flat-roofed reinforced concrete structure/14 stories
Apartment building, parking lot, garbage disposal site2

4,899.88 m

Proprietorship
130
4,309.24 m2
None
None
This property has good access to public transport, located a five-minute
walk from the Osaka Municipal Subway Midosuji Line’s Esaka Station.
Umeda Station, which is about an 11-minute ride from Esaka Station is thebusiness and commercial center of the city. It has excellent transportation
to wider areas such as Tokyo or other prefectures, as it is possible tochange to the JR Tokaido Shinkansen and Sanyo Shinkansen at Shin
Osaka Station which is a four-minute ride away.
This property mainly targets demand from corporations which have their
headquarters in Tokyo and need convenient and comfortable company
housing for those who work in Osaka and are unmarried or living apartfrom their family. The area around Esaka Station, the closest station to thisproperty, is a popular quarter with many convenient facilities such ascommercial centers, financial institutions, medical facilities, andrestaurants.
1
130
130
4,309.24 m2
4,309.24 m2
100.0%¥24,140 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(viii) Property 8: Park Axis Komagome
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)

Park Axis Komagome
Real estate¥1,389,000 thousand
Daiwa Real Estate Appraisal Corporation¥1,390,000 thousand
January 31, 2011

Location23-13, Komagome 3-chome, Toshima-ku, Tokyo

Residence indication<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

10

Land

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

80%
500%
Commercial zone
440.37 m2

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)

Proprietorship

Uses (Note 5)
Buildings

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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

November 20, 2009
Flat-roofed reinforced concrete structure /15 stories
Apartment building, store, parking lot for bicycles, garbage disposal site,storage22,433.47 m

Proprietorship
39 residential
1,979.51 m2

1 retail etc.

None
None
This property is located a four-minute walk from the JR Yamanote Line’s
Komagome Station. It takes about fifteen minutes from this station to go to
Tokyo Station and Shinjuku Station. It has very good access with public
transportation with its proximity to the closest station as well as its
convenient access to the city center and possibility to take the Tokyo Metro
Namboku Line.
Around the station, there are more than ten different kinds of commercial
streets including Komagome Ekimae Commercial street. Also, there are
Rikugien and Kyu Furukawa Teien nearby, so it has a rich green
environment being in the center of Tokyo.
This property mainly targets single company employees and families who
prefer a location that offers a convenient life and good transportation forcommuting.
1
39 residential
1 retail etc.
39
1,979.51 m2
1,926.89 m2
97.3%¥28,404 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(ix) Property 9: Park Axis Utsubo Koen
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication
Land
Building-to-land ratio
Floor-area ratio
ZoningPark Axis Utsubo Koen
Real estate¥2,399,000 thousand
Daiwa Real Estate Appraisal Corporation¥2,400,000 thousand
January 31, 2011
1-7, Utsubohonmachi 3-chome, Nishi-ku, Osaka-shi, Osaka
80%
600%
Commercial zone

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

11

Buildings

Site area (Note 3)
Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

882.13 m2
Proprietorship
January 26, 2010
Flat-roofed reinforced concrete structure/15 stories
Apartment building, machine room2

5,543.28 m

Proprietorship
133
4,952.45 m2
None
None
This property is located a four-minute walk from the Osaka Municipal
Subway Chuo Line’s and Sennichimae Line’s Awaza Station, and has goodaccess to major districts of the city such as Honmachi, Shinsaibashi andUmeda.
There are supermarkets, convenience stores, and restaurants withinwalking distance, making it a convenient place to live. Furthermore, thisproperty has an excellent living environment as well as being close to thecity center, located in a Utsubo Koen district surrounded by parks, popularcafes, restaurants, home product stores, and other retail stores.
This property is expected to attract professionals who commute to the city
center of Osaka, as well as corporations looking for employee apartmentswith good access to the city center.
1
133
127
4,952.45 m2
4,722.54 m2
95.4%¥25,589 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(x) Property 10: Park Axis Itabashi Honcho Nibankan
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication

Park Axis Itabashi Honcho Nibankan
Real estate¥1,859,000 thousand
Daiwa Real Estate Appraisal Corporation¥1,860,000 thousand
January 31, 2011
74-1, Shimizucho, Itabashi-ku, Tokyo<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

12

Land

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

80%
500%
Commercial zone
821.46 m2

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)

Proprietorship

Uses (Note 5)
Buildings

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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

January 29, 2010
Flat-roofed reinforced concrete structure/14 stories
Apartment building, parking lot for bicycles, garbage disposal site, parking
lot2

4,854.95 m

Proprietorship
99
3,661.58 m2
None
None
This property is located a six-minute walk from the Toei Mita Line’s
Itabashi-Honcho Station. It has good access to city center as it takes about
twenty minutes from this station to Otemachi Station.
It is a convenient area with financial institutions, convenience stores, andrestaurants mainly around Itabashi-Honcho Station.
This property is expected to attract single company employees andstudents looking for a place that is convenient to live in and commute fromas well as DINKS households and corporations looking for a place withgood access to the city center.
1
99
93
3,661.58 m2
3,469.49 m2
94.8%¥21,484 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(xi) Property 11: Dormy Ashiya
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company

Dormy Ashiya
Real estate¥928,000 thousand
Morii Appraisal & Investment Consulting, Inc.

Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)¥986,000 thousand
January 31, 201112-28, Daitocho, Ashiya-shi, Hyogo
60%
200%
Category 1 medium to high rise exclusive residential district
3,267.22 m2

Ownership form

Proprietorship<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

13

Buildings

Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

September 17, 2002
Flat-roofed reinforced concrete structure/5 stories
Boarding house, garage2

3,729.45 m

Proprietorship
140
2,826.00 m2
None
None
This property is located an eleven-minute walk from the Hanshin Honsen’s
Uchide Station. It is about twenty-five minutes from this station to Umeda
Station by a regional special express train, and about nineteen minutes to
Sannomiya Station (by changing to an express train at Uozaki Station).
There are various commercial facilities in this area such as Co-op
Uchidehama about 120 meters away in the northwest, Peacock Store
Ashiya Nangu about 400 meters away in the west, and Uchide commercial
street in front of Uchide Station.
As this property is located near the production sites of major enterprises
built along the coast, it is used as a dormitory for those who work in thoseenterprises.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, the reasonsfor acquisition are the unique aspects of this property, and it is judged that
this will contribute to further enhance the entire NAF’s portfolio.
1
140
140
2,826.00 m2
2,826.00 m2
100.0%
Not disclosed as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(xii) Property 12: Kawaijuku Kyoto Gakushin Ryo
Name of property to be acquired
Type of property to be acquired

Kawaijuku Kyoto Gakushin Ryo
Real estate

Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)¥991,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥1,040,000 thousand
January 31, 2011
25-4, Jurakumawari Minamimachi, Nakagyo-ku, Kyoto-shi, Kyoto (address
written in the old addressing system with land given a registration number)

Location

Residence indication<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

14

Land

Buildings

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)80%600%, 400%
Commercial zone
724.69 m2

Ownership form
Completion date (Note 4)
Structure/number ofstories (Note 5)
Uses (Note 5)
Gross floor area (Note 5)
Ownership form
Rentable units
Rentable area

Proprietorship
March 2, 2004

Existence of security interests

Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

Flat-roofed steel structure/9 stories
Boarding house
3,492.88 m2
Proprietorship
134
2,785.40 m2
None
This property cannot be constructed with the same architectural design as
the current building in the case of reconstruction on this site, due to thechange in the urban planning height district (reinforcement of the absoluteheight limit) effective of September 1, 2007, which is after the completion ofthis building.
This property is located a four-minute walk from the Kyoto Municipal
Subway’s Nijo Station. It has good access to city center such as Shijo
Karasuma and Kyoto by changing to the Kyoto Municipal Subway
Karasuma Line at Karasuma Oike Station which is about a three-minuteride from Nijo Station. There is also the JR Line’s Nijo Station a six-minute
walk from this property, from which it takes only six minutes to Kyoto
Station, giving it excellent access to the city center.
There are convenience stores and Co-op Nijo-eki nearby so it is aconvenient place to live.
This property is used as a student-only dormitory for the students of
Kawaijuku Educational Institution.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, thereasons for acquisition are the unique aspects of this property, and it isjudged that this will contribute to further enhance the entire NAF’s portfolio.
1
134
134
2,785.40 m2
2,785.40 m2
100.0%
Not disclosed as per lessee’s instruction
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(xiii) Property 13: Sundai Horikawa Ryo
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)

Sundai Horikawa Ryo
Real estate¥916,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥1,000,000 thousand
January 31, 2011

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

15

Location

Land

Residence indication
Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
Buildings
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

205-1, Sawaragicho Agaru 5-chome, Higashi Horikawa-dori, Kamigyo-ku,
Kyoto-shi, Kyoto (address written in the old addressing system with land
given a registration number)
80%, 60%
600%, 200%
Commercial district, category 2 residential district
1,152.13 m2
Proprietorship
February 21, 2005
Flat-roofed reinforced concrete structure/10 stories
Boarding house, machine room, parking lot for bicycles
2,793.71 m2
Proprietorship
113
2,043.32 m2
None
This property cannot be constructed with the same architectural design as
the current building in the case of reconstruction on this site, due to thechange in the urban planning height district (reinforcement of the absoluteheight limit) effective of September 1, 2007, which is after the completion ofthis building.
This property has more than one station within walking distance withaccess to different train lines, located a ten-minute walk from the Kyoto
Municipal Subway Karasuma Line’s Marutamachi Station and a
twelve-minute walk from the Kyoto Municipal Subway Tozai Line’s
Nijojo-mae Station. It has good access to the city center as it is about
seven minutes from Marutamachi Station to Kyoto Station. The property
also has an excellent living environment surrounded by traditional streets.
This property is used as a student-only dormitory for those who go to
Sundai Yobiko.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, thereasons for acquisition are the unique aspects of this property, and it isjudged that this will contribute to further enhance the entire NAF’s
portfolio.
1
113
113
2,043.32 m2
2,043.32 m2
100.0%
Not disclosed as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

16

(xiv) Property 14: Dormitory Rakuhoku
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location

Residence indication
Building-to-land ratio
Floor-area ratio

Land

Buildings

ZoningSite area (Note 3)
Ownership form
Completion date (Note 4)
Structure/number ofstories (Note 5)
Uses (Note 5)
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)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

Dormitory Rakuhoku
Real estate¥374,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥410,000 thousand
January 31, 2011
51, Takagamine Kinohatacho, Kita-ku, Kyoto-shi, Kyoto (address written in
the old addressing system with land given a registration number)
60%
200%
Category 1 medium to high rise exclusive residential district, Category 1
residential district
811.99 m2
Proprietorship
February 24, 2006
Flat-roofed reinforced concrete structure/3 stories above ground and 1
underground story
Boarding house
1,489.86 m2
Proprietorship69
1,035.00 m2
None
None
This property is located a two-minute walk from the bus stop Bukkyo
Daigaku Mae (Bukkyo University) and it is about ten minutes to the subway
station Kitaoji Station by bus from this bus stop and about fifteen minutes to
the JR Line’s Nijo station.
Around this property, there is a convenience store within a five-minutewalk, as well as Bukkyo University (about 0.1 km), Ritsumeikan University(about 1.8 km), Kyoto Prefectural University (about 2.6 km), Doshisha
University (about 2.7 km), Doshisha Women’s College of Liberal Arts(about 3.0 km), and Kyoto University (about 4.5 km)
This property is used mainly as a dormitory for students who commute tosurrounding universities.
The property’s acquisition price is below the investment amount NAF
determined in its investment criteria (in principle 1 billion yen or more perproperty). Despite the acquisition price of less than 1 billion yen, thereasons for acquisition are the unique aspects of this property, and it isjudged that this will contribute to further enhance the entire NAF’s portfolio.
169
69
1,035.00 m2
1,035.00 m2
100.0%
Not disclosed as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

17

(xv) Property 15: Rikkyo University International Dormitory (RUID) Shiki
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)

Buildings

Rikkyo University International Dormitory (RUID) Shiki
Real estate¥1,478,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥1,550,000 thousand
January 31, 201118-25, Honcho 5-chome, Shiki-shi, Saitama
80%
400%
Commercial zone
833.03 m2

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
Gross floor area (Note 5)

Boarding house
3,061.89 m2

Ownership form
Rentable units

Proprietorship
126

Rentable area
Existence of security interests
Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)

Proprietorship
January 29, 2010
Flat-roofed reinforced concrete structure/8 stories

2

2,293.20 m
None
None
This property is located a four-minute walk from the Tobu Tojo Line’s Shiki
Station, and it takes about twenty minutes from Shiki Station to Ikebukuro
Station by an express train, about forty-five minutes to Tokyo Station bychanging to Tokyo Metro Marunouchi Line.
This property is located in a part of the commercial district around Shiki
Station. While it is highly convenient place to live with a large supermarket
behind this property, it is generally a quiet area with a relaxing atmosphere,
as the street in front of this property does not have heavy traffic.
This property is used as a student-only dormitory for the students of Rikkyo
University who commute to its campuses in Ikebukuro and Niiza.

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area

126
126
2,293.20 m2
2,293.20 m2

Occupancy rate
Deposit
Gross income from
rent

100.0%
Not disclosed as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

1<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

18

(xvi) Property 16: Dormy Naka Itabashi
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication
Building-to-land ratio
Floor-area ratio
Land
ZoningSite area (Note 3)

Buildings

Dormy Naka Itabashi
Real estate¥1,041,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥1,120,000 thousand
January 31, 2011
34-7, Nakacho, Itabashi-ku, Tokyo
60%
300%
Category 1 residential district
1,368.70 m2

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
Gross floor area (Note 5)

Boarding house
2,439.17 m2

Ownership form
Rentable units

Proprietorship
105

Rentable area
Existence of security interests
Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)

Proprietorship
February 12, 2010
Flat-roofed reinforced concrete structure/7 stories

2

1,911.00 m
None
None
This property has good access to public transport, located a five-minute
walk from the Tobu Tojo Line’s Nakaitabashi Station. It takes about eightminutes from Nakaitabashi Station to Ikebukuro Station, and about
twenty-three minutes to Otemachi Station by changing at Ikebukuro Station
to the Tokyo Metro Maruouchi Line.
This property is used as a company dormitory for single employees.

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area

105
105
1,911.00 m2
1,911.00 m2

Occupancy rate
Deposit
Gross income from
rent

100.0%
Not disclosd as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

1(xvii) Property 17: Philosophia Nishidai
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location
Residence indication

Philosophia Nishidai
Real estate¥1,249,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥1,300,000 thousand
January 31, 2011
33-1, Takashimadaira 9-chome, Itabashi-ku, Tokyo<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

19

Land

Buildings

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

60%
300%
Light-industrial district
984.75 m2

Ownership form
Completion date
(Note 4)Structure/number ofstories (Note 5)
Uses (Note 5)
Gross floor area (Note 5)
Ownership form
Rentable units

Proprietorship

Rentable area
Existence of security interests
Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

February 18, 2010
Flat-roofed reinforced concrete structure/8 stories
Boarding house
2,969.25 m2
Proprietorship120
22,184.00 m
None
None
This property is located a seven-minute walk from the Toei Mita Line’s
Nishidai Station. It takes about thirty minutes by a direct train from Nishidai
Station to Otemachi Station, and it takes about twenty–two minutes to
Ikebukuro Station by changing at Sugamo Station, and about twenty-sevenminutes to Shinjuku Station.
It is a convenient area with supermarkets, convenience stores, healthclubs, pharmacies, and bookstores around the station.
This property is used as a student-only dormitory for the students of Toyo
University who commute mainly to Hakusan Campus.
1
120
120
2,184.00 m2
2,184.00 m2
100.0%
Not disclosed as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(xviii) Property 18: Dormy Musashi Kosugi
Name of property to be acquired
Type of property to be acquired
Acquisition price (Note 1)
Appraisal company

Dormy Musashi Kosugi
Real estate¥1,152,000 thousand
Morii Appraisal & Investment Consulting, Inc.

Appraised value (Note 2)
Date of value appraisal (Note 2)¥1,250,000 thousand
January 31, 2011
1406-2, Kamimaruko Sannocho 1-chome, Nakahara-ku, Kawasaki-shi,
Kanagawa (address written in the old addressing system with land given a
registration number)

Location

Residence indication<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

20

Land

Buildings

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)

60%
200%
Quasi-residential district, category 1 residential district
1,451.64 m2

Ownership form
Completion date (Note 4)
Structure/number ofstories (Note 5)
Uses (Note 5)
Gross floor area (Note 5)
Ownership form
Rentable units
Rentable area

Proprietorship
March 4, 2010

Existence of security interests
Special affairs (Note 6)

Special features of the property

Details of tenants(Note 7)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income from
rent

Flat-roofed reinforced concrete structure/4 stories
Boarding house
3,017.34 m2
Proprietorship
111
1,996.47 m2
None
None
This property has more than one station within walking distance, located a
ten-minute walk from Musashi-Kosugi Station, and a nine-minute walk fromthe Tokyu Toyoko Line’s Shin-Maruko Station. It takes about thirteen
minutes from Musashi-Kosugi Station to Shibuya Station by limited
express, and about nineteen minutes from Musashi-Kosugi Station to
Tokyo Station by JR Yokosuka Line.
The area around Musashi-Kosugi Station is being re-developed, and is
expected to develop as a regional hub with a concentration of commercial
and business facilities and urban housing. It is also a convenient place to
live, as there is a convenience store within walking distance and daily
commodities can be purchased around Musashi-Kosugi Station andShin-Maruko Station.
This property is used as a student dormitory.
1
111
111
1,996.47 m2
1,996.47 m2
100.0%
Not disclosed as per lessee’s instructions
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be acquired”.

(xix) Property 19: Shibaura Island Air Tower
Name of property to be acquired
Type of property to be acquired
Trustee
Trust period
Acquisition price (Note 1)
Appraisal company
Appraised value (Note 2)
Date of value appraisal (Note 2)
Location

Residence indication

1) Air Tower, 2) Air Terrace

Shibaura Island Air Tower (1. Air Tower, 2. Air Terrace)
Real estate trust
The Sumitomo Trust and Banking Co., Ltd.
From June 28, 2007 to June 27, 2017
¥7,905,000 thousand
Morii Appraisal & Investment Consulting, Inc.
¥8,340,000 thousand
January 31, 20111)
22-1, Shibaura 4-chome, Minato-ku, Tokyo2)
22-2, Shibaura 4-chome, Minato-ku, Tokyo<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

21

Land

Building-to-land ratio
Floor-area ratio
ZoningSite area (Note 3)1) 2) 60%
1) 2) 400%
1) 2) Category 2 residential district
11,280.97 m2

Ownership form
Completion date (Note 4)
Structure/number ofstories (Note 5)1) 2) quasi co-ownership of general fixed term lease (31% quasi co-owned)
1) 2) March 1, 2007
1)
Flat-roofed reinforced concrete and steel structure/48 stories
2)
Flat-roofed reinforced concrete structure/2 stories
1)
Apartment building, store, parking lot, parking lot for bicycles
2)
Store
2
1)
78,333.26 m
2
2)
3,426.74 m
1) 2) Shared ownership (31% owned)
1)
871 residential
1 retail etc.
2)
6 retail etc.
56,923.63 m2

Uses (Note 5)
Buildings

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

Existence of security interests

Special affairs (Note 6)

None(1) Agreements with land owner
The owner of the site of this property (referred to as “this site” hereafter)
and lessor is Urban Renaissance Agency (referred to as “UR” hereafter),which has general fixed-term leaseholds (referred to as “leaseholds of thisproperty” hereafter) based on a fixed-term lease agreement under Article
22 of the Leased Land and House Lease Law. A summary of the fixed-termlease agreement of this property is as follows.
1. Purpose of the leaseholds: to own properties for management purposessuch as rental housing
2. Lease period: from March 31, 2004 to March 30, 2074 (70 years)
3. Rent: 27,518,000 yen per month (see Note)
The rent will be revised every reference year of the fixed property tax(normally every three years) by making adjustment with the tax and publicdues charged for this site as well as the change in the consumer priceindex. The rent is also revised according to any change in the amount oftax and public dues charged for this site even if it is not the reference year.
4. Deposit: 1,443,741,000 yen (see Note)
The deposit amount will be revised according to the consumer price index
every reference year of the fixed property tax (normally every three years).
5. Other(i) The lessee is obliged to return this site to UR in its original state at theend of the lease period.
(ii) Through an agreement with all quasi co-owners of these leaseholds,
quasi co-owners may offer to receive this site from UR between the firstday in the thirtieth year after a conclusion of the fixed-term leaseagreement and the year before the end of the lease period. If UR accepts
the offer, conditions of transfer such as transfer price, and payment methodof transfer fee shall be determined by UR. In selling this site, UR is toactively confirm with the tenants whether they intend to purchase the site.
(iii) Without a written acceptance of UR, it is not possible to transfer theleaseholds of this site. It is also not possible to transfer the leaseholds ofthis site and the ownership of the buildings of this site or claim for return ofa deposit regarding this site separately.
(iv) If a tenant violates the fixed-term lease agreement and UR cancels theagreement, the tenant is obliged to pay a penalty of 1.25 billion yen ((seeNote); this is subject to revision according to changes in the consumer
price index).
Note: This is a charge for the whole property and NAF will be charged forits proportional share of the property (31%).

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

22

Special affairs (Note 6)

Special features of the property(2) Agreement with other tenants
1. In transferring trust beneficiary rights, the trust property which is theco-owned part of this property that NAF plans to acquire (referred to as“these beneficiary rights” hereafter), agreement from the trustee must be
obtained as well as the approval of all the other co-owners with regard to
the transferee by giving first refusal right to co-owners (refer tobeneficiaries of each trust beneficiary right, the trust property of which isthe co-owned part of this property).
2. In establishing the right of pledge of these beneficiary rights to a third
party other than qualified institutional investors, the approval of the trustee
must be obtained as well as the approval of all the other co-owners.
3. In canceling the trust agreement, dismissing or changing the trustee, inapproving the transferee and other appropriations in order to transfer thesebeneficiary rights, and in giving instructions to the trustee with regard to atransfer and other appropriations of the co-owned part of this property
which constitutes the trust property, the approval of all the other co-owners
must be obtained.
4. In making decisions on the annual business plan, making decisions on alarge-scale repair or renewal of a facility, in making a change in the trust
policy of a property management company, in changing or dismissing aproperty management company, in canceling, annulling or ending acontract with a property management company, making decisions on
renewal or changing the content of a contract, and in deciding on otherimportant matters regarding this properties, the decision is taken bymajority votes with other co-owners according to the shared proportion.
5. NAF, with other co-owners of this property, entrust the following
operations to an operation manager (currently Mitsui Fudosan Co., Ltd.):
proposing an annual business plan created by a property managementcompany, managing and operating this property based on an annual
business plan agreed by NAF and other co-owners, following theprocedures described in 4, and giving instructions to the trustee based on
the decision made through the procedures described in 3 and 4. Inchanging an operation manager company, the decision is taken by majority
votes with other co-owners according to the shared proportion.
(3) Establishment of superficies
In a part of this site, superficies are established and registered and theirsuperficialry is the Tokyo metropolitan government. This is done in order toinstall underground sewerage facilities.
This property has more than one station within walking distance withaccess to several train lines, located an eight-minute walk from the JR
Yamanote Line’s and other lines’ Tamachi Station and a nine-minute walkfrom the Toei Asakusa Line’s and other lines’ Mita Station.
This property is located in Shibaura Island District, which was developed
as the first high-rise residential attraction district through collaboration
between the government, public, and private sectors. This district has an
excellent residential environment surrounded by a canal and as apromenade with green areas designed by the project at its outer circle.
This property has a beautiful view from its upper floors, and it is bothconvenient and close to the city center, as its commercial tower has
supermarkets as well as restaurants and public facilities that can beaccessed from its residential tower through an internal passage.
This property is expected to attract various tenants such as single people,
DINKS households, and families looking for a convenient and comfortable
place, as it has various types of accommodation.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

23

Tenant
information(Note 7, 8)

Total number oftenants
Rentable units
Rented units
Rentable area
Rented area
Occupancy rate
Deposit
Gross income fromrent

1
270 residential
2 retail etc.
258
17,646.33 m2
16,747.28 m2
94.9%¥204,859 thousand
Refer to the Attached Document 1, “Summary of the appraisal report on theamount of the properties to be 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 contract for the sale of real estateor sale of real estate trust beneficiary interest sales with condition precedent for the properties to be acquired.
(Note 2) “Appraisal value” and “date of value appraisal” are based on the real estate appraisal reports prepared with regard to theproperties that NAF plans to acquire by Daiwa Real Estate Appraisal Corporation for properties 1–10, and by Morii
Appraisal & Investment Consulting Inc. for properties 11–19.
(Note 3) “Site area” denotes the land area included in the register as of December 31, 2010.
(Note 4) “Completion date” of the building denotes the date included in the register as of December 31, 2010.
(Note 5) “Structure/number of stories”, “uses”, and “gross floor area” are based on the description in the register as of December 31,
2010.
(Note 6) “Special affairs” include issues considered to be important by NAF with consideration of influence on the rights, uses, andappraisal values as well as profits of the properties that NAF plans to acquire as of January 31, 2011.
(Note 7) Explanation on “details of tenants” (all properties)(i) “Total number of tenants” is entered as 1 if there is a master lease agreement or a bulk lease agreement concluded
with a master lease company (even if there is more than one master lease company, the number is entered as 1). With
regard to the properties that NAF plans to acquire, a master lease agreement is scheduled to be concluded with Mitusi
Fudosan Housing Lease Co., Ltd. as the master lease company for properties 1–10, and with Mitusi Fudosan Housing
Lease Co., Ltd. and R.A. Asset Management Inc. as the master lease company for property 19. The “total number oftenants” above is therefore the number of tenants after such a master lease agreement is concluded. With regard toproperties 11–18, a fixed term building lease agreement subject to a condition precedent (the condition is thecompletion of property transfer) has been concluded as of February 10, 2011 with NAF as the lessor and Kyoritsu
Maintenance Co., Ltd. as the lessee (and operator), and the total number of tenants is entered as 1 given that thiscompany will complete procedures necessary in order to become a sublessor.
(ii) “Rentable units” denotes the number of units that can be rented within the property that NAF plans to acquire.
(iii) “Rented units” and “rented area” denote figures as of December 31, 2010 based on the report received by the vendor.
However, with regard to properties 11–18, the figures are entered as of the effective date of the fixed term building
lease agreement subject to a condition precedent that was concluded February 10, 2011.
(iv) “Deposit” denotes the figure as of December 31, 2010 based on the report received by the vendor. However, withregard to properties 11–18, the figure is not disclosed as per the instructions given by the lessee (because it is a leaseagreement with fixed rent and deposit).
(v) “Rentable area” denotes the total area of the building that can be rented within the property that NAF plans to acquire.
(vi) “Occupancy rate” denotes the ratio of the “rented area” against the “rentable area” and the figures are rounded to one
decimal place.
(Note 8) Explanation on “details of tenants” (property 19)“Rentable units”, “rented units”, “rentable area”, “rented area”, and “deposit” are calculated by multiplying the figures of
total property by 31%, the proportion share of NAF.

(2) Effect on NAF financial position in the event of inability to execute forward commitments, etc.
Property 19 is applicable to forward commitments (see Note) by investment corporations as provided for in
the Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc defined by the
Financial Services Agency.
In the event of a violation of the terms and conditions of any sales contract related to the above property (the“Sales Contract”) made by NAF released on February 10, 2011 or the seller, the opposing party may cancel theSales Contract and claim, as a penalty, an amount equivalent to 20% of the trading value of the property whose
contract was cancelled.
However, the sale of the above property as per the Sales Contract is with condition precedent that the issuing<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

24

of investment units of NAF released on February 10, 2011 as special provision is effected by NAF. Therefore, inthe event such issuing of the investment units of NAF cannot be effected by NAF, the Sales Contract is definitively
invalidated and, NAF, unless when the underlying reasons are attributable to NAF, is not obligated to pay a
penalty to the seller concerning the invalidation of the sales contract.
Note:

Refers to the postdated sales contract under which payment and delivery shall be made at least one month after theconclusion of the contract, or any other contract similar thereto.

(3) Outline of investigations into the state of the building, etc.
Name of property to beacquired

Property 1:
Property 2:
Property 3:
Property 4:
Property 5:
Property 6:
Property 7:
Property 8:
Property 9:
Property 10:
Property 11:
Property 12:
Property 13:
Property 14:

Property 15:

Property 16:
Property 17:
Property 18:

Property 19:

Park Axis Shin
SapporoPark Axis
Yokohama Idogaya
Park Axis Chiba
Shinmachi
Park Axis Kamata
Ichibankan
Park Axis Chiba
Park Axis Taito
NegishiPark Axis Esaka
HiroshibachoPark Axis
Komagome
Park Axis Utsubo
Koen
Park Axis Itabashi
Honcho Nibankan
Dormy Ashiya
Kawaijuku Kyoto
Gakushin Ryo
Sundai Horikawa
Ryo
Dormitory
Rakuhoku
Rikkyo University
International
Dormitory (RUID)
Shiki
Dormy Naka
ItabashiPhilosophia
Nishidai
Dormy Musashi
Kosugi
Shibaura Island Air
Tower (Note 1)(Air Tower)(Air Terrace)

Investigatingcompany

Shimizu Corporation
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Shimizu Corporation
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.

Sumitomo Mitsui
Construction Co., Ltd.
Sumitomo Mitsui
Construction Co., Ltd.

Estimated
long-term
repair cost(Thousandsof yen)Building
replacement
value(Thousandsof yen)－50,194806,000－－

42,617886,461

December 3, 2010－－

52,213

1,118,664

December 3, 2010－－

19,185474,341

December 3, 2010－－

29,186655,955

October 29, 2010－－

21,249398,166

December 3, 2010－－

55,657

1,216,099

October 29, 2010－－

24,860605,993

December 3, 2010－－

43,086

1,377,927

October 29, 2010－－

33,284

1,035,000

December 29, 2010

－

1,191

89,139862,924

December 29, 2010－

183

69,210759,089

December 29, 2010－

496

38,191

638,511

December 29, 2010－

21

19,851

399,729

December 29, 2010－

83

18,924

660,662

December 29, 2010－

331

16,493546,049

December 29, 2010－－

19,316

673,488

December 29, 2010－－

17,741

617,007

December 29, 2010－－

180,495

5,283,430

December 29, 2010－－

11,697226,383

Investigation reportdate

Estimated
urgentrepair cost(Thousandsof yen)Estimatedshort-term
repair cost(Thousandsof yen)November 24, 2010－

October 29, 2010

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

25

Name of property to be acquired

PML (Note 2)

Property 1:

Park Axis Shin Sapporo

2.5%

Property 2:

Park Axis Yokohama Idogaya

11.4%

Property 3:

Park Axis Chiba Shinmachi

11.1%

Property 4:

Park Axis Kamata Ichibankan

9.5%

Property 5:

Park Axis Chiba

7.8%

Property 6:

Park Axis Taito Negishi

10.5%

Property 7:

Park Axis Esaka Hiroshibacho

11.2%

Property 8:

Park Axis Komagome

8.5%

Property 9:

Park Axis Utsubo Koen

13.1%

Property 10:

Park Axis Itabashi Honcho Nibankan

7.7%

Property 11:

Dormy Ashiya

10.0%

Property 12:

Kawaijuku Kyoto Gakushin Ryo

5.5%

Property 13:

Sundai Horikawa Ryo

6.9%

Property 14:

Dormitory Rakuhoku

6.5%

Property 15:

Rikkyo University International Dormitory (RUID) Shiki

5.4%

Property 16:

Dormy Naka Itabashi

7.1%

Property 17:

Philosophia Nishidai

8.3%

Property 18:

Dormy Musashi Kosugi

8.3%

Property 19:

Shibaura Island Air Tower(Air Tower)(Air Terrace)

2.3%
8.7%

(Note 1) The figures with respect to Shibaura Island Air Tower, for Air Tower and Air Terrace respectively, have been computed bymultiplying the holding ratio of NAF of 31% to the overall value of the property.
(Note 2) “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 outsourced research service provider and does notprovide any guarantee of its contents. PML (Probable Maximum Loss) represents the rate of probable maximum loss to becaused 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.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

26

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

Shimizu Corporation
2-3, Shibaura 1-chome, Minato-ku, Tokyo
Yoichi Miyamoto, President and Representative Director¥74,365 million
Building, civil engineering and construction work based on contract (generalcontractor) and other related operations

Trade nameHead office address

Sumitomo Mitsui Construction Co., Ltd.
1-6, Tsukuda 2-chome, Chuo-ku, Tokyo
Yoshiyuki Norihisa, Representative Director, President and Chief Executive
Officer¥12,003 million
Design, engineering and execution of civil, building and pre-stressed concrete
works, and related operations

Representative
CapitalDescription of principal
operations
Relationship with NAF or
investment trust
management company

None

None

5. Outline of sellers(1) Property 1 to Property 10
Trade nameHead office address
Representative

Mitsui Fudosan Co., Ltd.
1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo
Hiromichi Iwasa, President and Chief Executive Officer

Description of principal
operations
CapitalDate of establishment
Net assets
Total assets

Acquisition, ownership, disposition, lease, subdivision sales and management ofreal estate and other related operations¥174,296 million
July 15, 1941
¥876,781 million (As of March 31, 2010)¥3,331,869 million (As of March 31, 2010)
Shareholding
Stockholder nameratio
Major stockholders and
The Master Trust Bank of Japan, Ltd. (trust account)
8.40%
shareholding ratio
Japan Trustee Services Bank, Ltd. (trust account)
6.77%(As of September 30,
CBLDN STICHTING PGGM DEPOSITORY
2.97%
2010)
Sumitomo Mitsui Banking Corporation
2.10%
The Chuo Mitsui Trust and Banking Company, Ltd.
1.99%
Relationships between NAF or the investment trust management company, and the seller
The seller holds 4.22% of total NAF investment units issued as of August 31,
Capital relationships
2010 and all shares of the investment trust management company.
As of August 31, 2010, one executive director of NAF and eight employees andPersonal relationships directors of the investment trust management company (excluding part-time
directors) are seconded from the seller.
There are no business relationships to report between NAF or the investment
trust management company, and the seller, for the period ended August 31,
Business relationships 2010. Also, there are no business relationships to report between the related
persons or related companies of NAF or the investment trust managementcompany, and the related persons or related companies of the seller.
Applicability to related The seller does not fall under the category of related parties of NAF. Also, thepartiesseller is the parent company of the investment trust management company.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

27

(2) Property 11 to Property 18
Trade nameHead office address
Representative
Description of principal
operations
CapitalDate of establishment
Net assets
Total assets

Kyoritsu Maintenance Co., Ltd.
18-8, Sotokanda 2-chome, Chiyoda-ku, Tokyo
Mitsutaka Sato, President and Representative Director
Management of student and employee dormitories and other¥5,136 million
September 27, 1979
¥27,664 million (As of March 31, 2010)¥121,790 million (As of March 31, 2010)
Stockholder name

Major stockholders andshareholding ratio(As of September 30,
2010)

Shareholding
ratio
13.72%
9.09%
5.60%
4.03%
2.66%

Haruhisa Ishizuka
Milestone Co., Ltd.
Kyoritsu International Foundation
Japan Trustee Services Bank, Ltd. (trust account)
The Master Trust Bank of Japan, Ltd. (trust account)Relationships between NAF or the investment trust management company, and the seller
There are no capital relationships to report between NAF or the investment trust
management company, and the seller. Also, there are no capital relationships toCapital relationships
report between the related persons or related companies of NAF or theinvestment trust management company, and the related persons or relatedcompanies of the seller.
There are no personal relationships to report between NAF or the investment
trust management company, and the seller. Also, there are no personal
Personal relationships relationships to report between the related persons or related companies of NAF
or the investment trust management company, and the related persons or
related companies of the seller.
There are no business relationships to report between NAF or the investment
trust management company, and the seller, for the period ended August 31,
Business relationships 2010. Also, there are no business relationships to report between the related
persons or related companies of NAF or the investment trust managementcompany, and the related persons or related companies of the seller.
The seller does not fall under the category of related parties of NAF or the
Applicability to related investment trust management company. Also, the related persons and theparties
related companies of the seller do not fall under the category of related partiesof NAF or the investment trust company.
(3) Property 19
Trade nameHead office address
Representative

Shibaura Island Apartments Inc.
2-3, Marunouchi 3-chome, Chiyoda-ku, Tokyo
Shinji Arakawa, Director

Description of principal
operations
CapitalDate of establishment
Net assets
Total assets
Major stockholders andshareholding ratio(As of March 31, 2010)

Purchase & sale, ownership and management of trust beneficiary rights of realestate funds and other¥3,000 thousand
March 5, 2004
Not disclosed
Not disclosed
Shareholding
Stockholder nameratio
Shibaura Island Apartment Holdings Foundation
100.0%<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

28

Relationships between NAF or the investment trust management company, and the seller
There are no capital relationships to report between NAF and the seller. Also,
the seller receives silent partnership investment from Mitsui Fudosan Co., Ltd.,
Capital relationships
which holds all issued shares of the investment trust management company.
There are no personal relationships to report between NAF or the investment
trust management company, and the seller. Also, there are no personal
Personal relationships relationships to report between the related persons or related companies of NAF
or the investment trust management company, and the related persons or
related companies of the seller.
There are no business relationships to report between NAF or the investment
trust management company, and the seller, for the period ended August 31,
Business relationships 2010. Also, there are no business relationships to report between the related
persons or related companies of NAF or the investment trust managementcompany, and the related persons or related companies of the seller.
The seller does not fall under the category of related parties of NAF. Also, theApplicability to related
seller receives silent partnership investment from Mitsui Fudosan Co., Ltd.,
partieswhich is the parent company of the investment trust management company.
6. Situation of the acquirer of the property
Property 11 to Property 18: Not applicable

Property 1: Park Axis Shin Sapporo
Property 2: Park Axis Yokohama Idogaya
Property 3: Park Axis Chiba Shinmachi
Property 5: Park Axis Chiba
Property 6: Park Axis Taito Negishi
Property 7: Park Axis Esaka Hiroshibacho
Property 8: Park Axis Komagome
Property 9: Park Axis Utsubo Koen
Property 10: Park Axis Itabashi Honcho Nibankan

Property 4: Park Axis Kamata Ichibankan

Situation of the property
ownerFormer owner

Owner
before theformerowner

Company name,person’s name

Mitsui Fudosan Co., Ltd.

None

Relationship with a
special related party
Acquisition history,reason, etc.
Acquisition price(including othercosts)
Acquisition time

Parent company of theinvestment trust
management company
Development with goalof sale―――Former owner

Company name,person’s name

Mitsui Fudosan Co.,
Ltd.

Acquisition history,reason, etc.
Acquisition price(including other costs)
Acquisition time――

Situation of the property
owner

Relationship with a
special related party―

Parent company of theinvestment trust
management company
Acquisition with goal ofsale
Omitted as theownership of the former
owner exceeds one
year
March 19, 2009

Owner
before theformerowner
Other thanspecialrelatedparties――――<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

29

Situation of the property
owner

Property 19: Shibaura Island Air Tower

Company name,person’s name
Relationship with a
special related party
Acquisition history,reason, etc.
Acquisition price(including other costs)
Acquisition time

Former owner
Shibaura Island
Apartments Inc.
Refer to “5. Outline of
Sellers” above
Development with goalof saleOwner
before theformer
owner
None
―
―

―

―

―

―

7. Earthquake resistance matters
Property 4 to Property 10 and Property 15 to Property 18 received a structural calculation conformity
judgment pursuant to the Building Standards Act as revised by Act No. 92 of 2006. Air Tower under Property 19
acquired the approval of the Minister of Land, Infrastructure, Transport and Tourism pursuant to the provisions ofArticle 68-26, Paragraph 1 of the Building Standards Act.
Also regarding other properties (including Air Terrace under Property 19), NAF outsourced the inspection andverification of the details of earthquake-resistant structures including structural calculation sheets and, forcorresponding buildings, obtained confirmation that, no falsification is suspected in the structural calculation andstructural drawings with respect to their structure, which ensures earthquake resistance as per the BuildingStandards Act.
In addition, NAF examines earthquake risks during the course of due diligence upon acquisition of properties,
from perspectives that are different from those of building certification investigations performed by an inspection
and certification agency, by inspecting designs and performing on-site reviews using structural drawings,
structural calculation sheets and other information.
8. Outlines of brokerage
Outlines of brokerage for Property 11 to Property 18 are as follows. There is no brokerage involved for otherproperties.
(1) Outlines of brokers
Trade nameHead office address
Representative

Mitsui Fudosan Co., Ltd.
1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo
Hiromichi Iwasa, President and Chief Executive Officer

Description of principal
operations

Acquisition, ownership, disposition, lease, subdivision sales and management ofreal estate and other related operations

CapitalDate of establishment¥174,296 million
July 15, 1941

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

30

Relationships between NAF or the investment trust management company, and the seller
The seller holds 4.22% of total NAF investment units issued as of August 31,
Capital relationships
2010 and all shares of the investment trust management company.
As of August 31, 2010, one executive director of NAF and eight employees andPersonal relationships directors of the investment trust management company (excluding part-time
directors) are seconded from the seller.
There are no business relationships to report between NAF or the investment
trust management company, and the seller, for the period ended August 31,
Business relationships 2010. Also, there are no business relationships to report between the related
persons or related companies of NAF or the investment trust managementcompany, and the related persons or related companies of the seller.
Applicability to related The seller does not fall under the category of related parties of NAF. Also, thepartiesseller is the parent company of the investment trust management company.
(2) Amount of brokerage fee¥160,000 thousand (excluding consumption tax and local consumption tax.)
9. Transactions with related parties and the like
(1)

Since Mitsui Fudosan Co., Ltd., the seller of Property 1 to Property 10 among the properties scheduled tobe acquired by NAF, corresponds to related parties and the like (see Note), the real estate sales contract
with condition precedent has been carried out through deliberation and decision by the compliancecommittee of the investment trust management company and the investment committee, in accordancewith NAF’s self-established rules on asset management relevant to transactions with related parties andthe like.

(2)

Although Shibaura Island Apartments Inc., the seller of Property 19 to NAF, does not correspond to
related parties and the like (see Note), silent partnership investment has been received from Mitsui
Fudosan Co., Ltd. which is the parent company of the investment trust management company. Meanwhile,
Mitsui Fudosan Investment Advisors, Inc., the asset manager of the property, corresponds to relatedparties and the like (see Note). Therefore, as in (1) above, the real estate sales contract with condition
precedent has been carried out through deliberation and decision by the compliance committee of theinvestment trust management company and the investment committee, in accordance with NAF’s
self-established rules on asset management relevant to transactions with related parties and the like.

(3)

Since Mitsui Fudosan Co., Ltd., the broker for Property 11 to Property 18, corresponds to related parties
and the like (see Note), the brokerage service contract has been carried out through deliberation anddecision by the compliance committee of the investment trust management company and the investmentcommittee, in accordance with NAF’s self-established rules on asset management relevant to transactions
with related parties and the like.

(4)

Mitsui Fudosan Housing Lease Co., Ltd., which is or is scheduled to be the master lease company andproperty management company for Property 1 to Property 10 and Property 19, corresponds to relatedparties and the like (see Note). Therefore, the master lease and property management contract will be
carried out through deliberation and decision by the compliance committee of the investment trust
management company and the investment committee by the planned date of handover for each property
to be acquired.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

31

Note:“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.

10. Outlook for management of the properties after acquisition
As stated in “Notification Concerning Financial Results Forecast for the Periods Ending August 31, 2011 andFebruary 29, 2012” released on February 10, 2011.

**

The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange(Kabuto Club) and the press club of the Ministry of Land, Infrastructure, Transport and Tourism, and to
the press club of construction publications of the Ministry of Land, Infrastructure, Transport andTourism.
NAF website: http://www.naf-r.jp/english/index.html

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 properties to be acquired
2. Portfolio list after the purchase of the properties to be acquired is completed (on an acquisition (planned) pricebasis)
3. Photographs of exteriors and entrances of the properties to be acquired<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

32

<Attached Document 1> Summary of the appraisal report on the amount of the properties to be acquired(unit: Thousands of yen)
Property 1
Name of property to be acquired

Park Axis
Shin Sapporo

Appraised value (specified value)

828,000

Assessment item(a) Unit rental revenues,
including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Revenues from key money, etc.
Renewal fees
Other revenues(1) (a)+(b)+(c)+(d)Property 2
Park Axis
Yokohama
Idogaya
1,420,000

Property 3
Park Axis
Chiba
Shinmachi
1,680,000

Property 4
Park Axis
KamataIchibankan
1,070,000

Details
78,726104,214

131,491

76,717

0
3,146
58

0
11,551
2,959

2,408
13,008
3,050

0
2,244
2,192

0
0
58
81,930

2,167
722
70
118,725

1,874
624
550
149,958

1,544
609
38
81,153(e) Total loss from vacancies etc.
(f) Loss on bad debts

4,972
0

9,671
0

13,04804,8040(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense(h) Utilities expense(i) Repair expense
Operating (j) Property management fees
expenses (k) Tenant soliciting fee, etc.
(l) Taxes and public dues(m) Property insurance fee(n) Other expenses

76,957
2,598
2,436
2,329
2,691
1,853
7,761
266
923

109,054
4,138
1,473
2,857
3,713
3,106
7,264
288
1,302

136,910
7,592
3,854
3,756
4,609
3,189
8,272
364
1,114

76,349
2,640
937
1,563
2,596
2,161
4,231
160
532

20,86024,14432,752

14,82356,09784,909104,158

61,526

194
2,867

394
2,556

929
3,226

227
1,367

53,425
6.4%

82,7485.8%

101,861
6.0%

60,385
5.6%

835,000

1,430,000

1,700,000

1,080,000

825,000
6.2%
6.6%
879,000
879,157
127,844751,31301,410,000
5.6%
6.0%
1,110,000
1,111,254
291,330
819,9240

1,670,000
5.8%
6.2%
1,550,000
1,550,528
507,765
1,042,763
0

1,070,000
5.4%
5.8%
800,000
799,587339,679
459,9080

Operatingrevenues(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<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

33

(unit: Thousands of yen)
Property 5
Name of property to be acquired

Appraised value (specified value)

Operatingrevenues

Assessment item(a) Unit rental revenues,
including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Revenues from key money, etc.
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
Operating (j) Property management fees
expenses (k) Tenant soliciting fee, etc.
(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

Park Axis
Chiba
971,000

Property 6
Park Axis
Taito Negishi
673,000

Property 7
Park Axis
Esaka
Hiroshibacho
2,370,000

Property 8
Park Axis
Komagome
1,390,000

Details
82,43053,796

189,071

95,714

0
6,292
882

0
42
1,032

0
12,638
8,402

0
1,692
909

0
600
282
89,605603
402
27
54,8718,386
0
16
210,112136746
27
98,316

6,569
0

2,689
0

13,197
04,808
083,036
5,712
1,978
2,404
2,875
2,460
5,157
218
876

52,181
2,928
698
1,279
1,790
1,568
3,238
130
756

196,914
7,803
3,128
7,793
6,598
5,735
10,772429
312

93,507
2,616
1,293
1,661
3,241
2,098
4,863
201
888

21,683

12,39042,574

16,86561,352

39,790154,339

76,641

240
1,891

160
1,148

279
11,607495
1,747

59,7006.1%

38,8035.7%

143,0126.0%

75,3895.4%

979,000

681,000

2,380,000

1,400,000

967,000
5.9%
6.3%
770,000
769,876
137,032
632,8440

669,000
5.5%
5.9%
565,000
564,964
180,826
384,13802,370,000
5.8%
6.2%
1,610,000
1,611,052
403,981
1,207,071
0

1,380,000
5.2%
5.6%
1,090,000
1,090,700
484,836
605,8640<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

34

(unit: Thousands of yen)
Property 9
Name of property to be acquired

Park Axis
Utsubo Koen

Appraised value (specified value)2,400,000

Assessment item(a) Unit rental revenues,
including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Revenues from key money, etc.
Renewal fees
Other revenues

Property 10
Park Axis
Itabashi
HonchoNibankan
1,860,000

Property 11

Property 12

Dormy Ashiya

Kawaijuku
Kyoto
Gakushin Ryo

986,000

1,040,000

Details
198,614138,90180,80878,984

0
6,972
7,654

0
8,364
1,379

0
0
0

0
0
0

7,624
0
30

0
1,377
1

0
0
0

0
0
0

(1) (a)+(b)+(c)+(d)(e) Total loss from vacancies etc.
(f) Loss on bad debts

213,240

148,645

80,80878,984

12,2980

10,627000

00(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense(h) Utilities expense(i) Repair expense
Operating (j) Property management fees
expenses (k) Tenant soliciting fee, etc.
(l) Taxes and public dues(m) Property insurance fee(n) Other expenses

200,942
7,362
2,876
7,337
6,766
5,112
12,726479
814

138,017
6,084
2,525
2,831
4,782
3,172
9,667
344
1,116

80,808
0
0
2,228
0
0
5,513
284
0

78,984
0
0
1,730
0
0
3,907
254
0

43,47530,523

8,025

5,891

157,467

107,493

72,78373,093291
13,436

409
2,984

808
5,200

790
4,037

144,323
6.0%

104,918
5.6%

68,391
6.9%

69,8466.7%

2,410,000

1,870,000

991,000

1,040,000

2,400,000
5.8%
6.2%
1,750,000
1,750,053
379,043
1,371,010
0

1,860,000
5.4%
5.8%
1,480,000
1,480,829
451,025
1,029,8040980,000
6.5%
7.2%
1,430,000
1,434,000
768,000
666,0000

1,030,000
6.3%
7.0%
900,000
900,000
306,000
594,000
0

Operatingrevenues(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<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

35

(unit: Thousands of yen)
Property 13

Property 14

Property 15

Property 16

Rikkyo University

Name of property to be acquired

SundaiHorikawa Ryo

International

Dormitory
Rakuhoku

Dormy Naka
Itabashi

Dormitory (RUID)
Shiki

Appraised value (specified value)
Assessment item(a) Unit rental revenues,
including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Revenues from key money, etc.
Renewal fees
Other revenues

1,000,000

410,000

1,550,000

1,120,000

Details
74,00432,952

111,000

76,488

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

(1) (a)+(b)+(c)+(d)(e) Total loss from vacancies etc.
(f) Loss on bad debts

74,00432,952

111,000

76,488

0
0

0
0

0
0

0
0

(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense(h) Utilities expense(i) Repair expense
Operating (j) Property management fees
expenses (k) Tenant soliciting fee, etc.
(l) Taxes and public dues(m) Property insurance fee(n) Other expenses

74,004
0
0
955
0
0
3,696
215
0

32,952
0
0
496
0
0
2,160
129
0

111,000
0
0
473
0
0
5,922
234
0

76,488
0
0
412
0
0
5,663
188
0

4,866

2,785

6,629

6,263

69,13830,167104,371

70,225

740
2,228

330
1,158

1,110
1,104

765
962

67,650
6.7%

29,3397.1%

104,377
6.7%

70,0286.2%

1,010,000

413,000

1,560,000

1,130,000

991,000
6.4%
7.0%
824,000
824,000
307,000
517,000
0

406,000
6.8%
7.4%
502,000
502,000
161,000
341,0000

1,530,000
6.4%
7.0%
995,000
995,000
338,000
657,0000

1,100,000
5.9%
6.5%
1,040,000
1,038,000
495,000
543,000
0

Operatingrevenues(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<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

36

(unit: Thousands of yen)

Name of property to be acquired

Appraised value (specified value)

Property 17

Property 18

Philosophia
Nishidai

Dormy
Musashi
Kosugi

1,300,000

1,250,000

Property 19
Shibaura
Island Air
Tower(Note 2)
8,340,000

Details

Assessment item(a) Unit rental revenues,
including commons area fees(b) Utilities revenues(c) Parking lot revenues(d) Other revenues
Revenues from key money, etc.
Renewal fees
Other revenues

90,00086,5682,707,231

0
0
0

0
0
0

32,972
168,723
138,591

0
0
0

0
0
0

32,00348,80557,783(1) (a)+(b)+(c)+(d)(e) Total loss from vacancies etc.
(f) Loss on bad debts

90,00086,5683,047,516

0
0

0
0

212,727
0(2) Operating revenues [(1)-(e)-(f)](g) Maintenance expense(h) Utilities expense(i) Repair expense
Operating (j) Property management fees
expenses (k) Tenant soliciting fee, etc.
(l) Taxes and public dues(m) Property insurance fee(n) Other expenses

90,000
0
0
483
0
0
6,380
230
0

86,568
0
0
444
0
0
6,066
214
0

2,834,789
247,291
68,00537,652
137,749
80,668140,288
9,079
374,400

7,093

6,724

1,095,132

82,907

79,844

1,739,658

900
1,127

866
1,035

－28,875
36,16582,680
6.3%

79,675
6.3%

1,674,618－

1,310,000

1,260,000－

1,280,000
6.0%
6.6%
1,040,000
1,036,000
365,000
671,00001,240,000
6.0%
6.6%
1,170,000
1,167,000
552,000
615,000
0

26,900,000
5.0%
7.0%
23,300,000
23,308,000
7,660,000
15,648,0000Operatingrevenues(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<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

37

(Note 1) NAF requested real estate appraisals for the properties to be acquired, by Daiwa Real Estate Appraisal Corporation for
Property 1 to Property 10, and by Morii Appraisal & Investment Consulting, Inc. for Property 11 to Property 19, based on
points to note when appraising real estate from the Act on Securities Investment Trust and Securities Investment
Corporations, and based on the Act on Real Estate Appraisal (1963 Law No. 152, including later amendments) and on realestate appraisal standards. The above figures record a summary of the real estate appraisal reports prepared. Eachcorresponding 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 these reports, nor the possibility of transactions at the appraised values. Yen amounts arerounded down to the nearest thousand yen.
(Note 2) Remarks on the appraisal method for Property 19
i. According to the property appraisal sheet produced by Morii Appraisal & Investment Consulting, Inc., this property will
be built on land leased for a fixed term, and there is accordingly a possibility that the lease on the land will not be
renewed at the end of the current contract terms. Alternatively, after the lease expiry, renters or owners of theapartments may be able to buy the land plot, and then become outright owners of the property. In this event, there is
uncertainty with regard to forecasting the future land plot value. Because valuation on the basis of single-year net
income, or equivalent yield on investment, would be difficult, the direct capitalization method cannot be used’. On thisbasis of this advice from Morii Appraisal & Investment Consulting, Inc., the ‘direct capitalization price’ and the ‘direct
capitalization yield’ are not listed.
ii. The ‘appraisal value (specific price)’ item is calculated as equivalent to 31% of the value of the holdings of theinvestment company. Apart from this item, all items indicate the full value of the property, and items in the appraisal
sheet indicate average values across the reporting period, as calculated using the DCF method.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

38

<Attached Document 2> Portfolio list after the purchase of the properties to be acquired is completed (on an
acquisition (planned) price basis)
1. Rental Apartments
Name

LocationPrice of (planned)
acquisition(million yen)
(Note 1)

Portfolio share(%)(Note 2)
13.6

Okawabata Apartment
Communities
Park Axis Gakugei Daigaku

Chuo-ku, Tokyo

29,696

Setagaya-ku, Tokyo

1,760

0.8

Park Axis Shibuya Jinnan

Shibuya-ku, Tokyo

3,230

1.5

Park Axis Aoyama Kotto-dori

Minato-ku, Tokyo

1,730

0.8

Park Axis Kagurazaka Stage

Shinjuku-ku, Tokyo

1,400

0.6

Park Axis Shirokanedai

Minato-ku, Tokyo

5,140

2.4
2.0

Park Axis Bunkyo Stage

Bunkyo-ku, Tokyo

4,440

Park Axis Tsukishima

Chuo-ku, Tokyo

930

0.4

Park Axis Otsuka

Toshima-ku, Tokyo

1,655

0.8

Park Axis Minami Azabu

Minato-ku, Tokyo

3,939

1.8

Park Axis Shibuya

Shibuya-ku, Tokyo

1,282

0.6

Park Axis Nihonbashi Stage

Chuo-ku, Tokyo

7,557

3.5

Park Axis Hamamatsucho

Minato-ku, Tokyo

2,025

0.9

Park Axis Hongo No Mori

Bunkyo-ku, Tokyo

2,910

1.3

Park Axis Tameike Sanno

Minato-ku, Tokyo

2,860

1.3

Minato-ku, Tokyo

2,170

1.0

Bunkyo-ku, Tokyo

9,710

4.5

Park Axis Okachimachi

Taito-ku, Tokyo

1,070

0.5

Park Cube Hongo

Bunkyo-ku, Tokyo

1,760

0.8

Park Cube Kanda

Chiyoda-ku, Tokyo

2,454

1.1

Park Cube Ichigaya

Shinjuku-ku, Tokyo

1,794

0.8

Park Cube Asakusa Tawaramachi

Taito-ku, Tokyo

2,508

1.2

Park Cube Ueno

Taito-ku, Tokyo

2,233

1.0

Park Cube Ikebukuro Kanamecho

Toshima-ku, Tokyo

1,608

0.7

Park Axis Meguro Honcho

Meguro-ku, Tokyo

1,810

0.8

Park Axis Shin Itabashi

Itabashi-ku, Tokyo

3,430

1.6

Park Axis Akihabara

Chiyoda-ku, Tokyo

1,200

0.6

Park Axis Toyocho

Koto-ku, Tokyo

3,950

1.8

Park Axis Takinogawa

Kita-ku, Tokyo

1,820

0.8

Park Axis Asakusabashi

Taito-ku, Tokyo

2,717

1.2

Park Axis Nihonbashi Hamacho

Chuo-ku, Tokyo

5,540

2.5

Park Cube Yoyogi Tomigaya

Shibuya-ku, Tokyo

1,975

0.9

Park Axis Monzen Nakacho

Koto-ku, Tokyo

1,700

0.8

Park Cube Itabashi Honcho

Itabashi-ku, Tokyo

4,170

1.9

Park Cube Gakugei Daigaku

Meguro-ku, Tokyo

910

0.4

1,440

0.7

Park Axis Roppongi Hinokicho
Koen
Park Axis Ochanomizu Stage

Park Cube Oimachi

Shinagawa-ku, Tokyo

Park Axis Nishigahara

Kita-ku, Tokyo

Park Axis Kinshicho
Park Axis Tatsumi Stage

840

0.4

Sumida-ku, Tokyo

1,448

0.7

Koto-ku, Tokyo

7,464

3.4

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

39

Name

LocationPrice of (planned)
Portfolio shareacquisition(%)(million yen)
(Note 2)
(Note 1)

Park Axis Kameido

Koto-ku, Tokyo

Park Axis Honancho

Nakano-ku, Tokyo

745

0.3

Park Axis Itabashi

Kita-ku, Tokyo

1,448

0.7

Park Axis Oshiage

Sumida-ku, Tokyo

1,193

0.5

2,359

1.1

Park Axis Takadanobaba

Toshima-ku, Tokyo

1,222

0.6

Park Axis Toyosu

Koto-ku, Tokyo

14,300

6.6Park Axis Hatchobori

Chuo-ku, Tokyo

1,760

0.8

Park Axis Itabashi Honcho

Itabashi-ku, Tokyo

987

0.5

Park Axis Sumiyoshi

Sumida-ku, Tokyo

1,006

0.5

Park Cube Yotsuya Sanchome

Shinjuku-ku, Tokyo

2,749

1.3

Park Cube Hatchobori

Chuo-ku, Tokyo

4,200

1.9

Park Axis Kamata Ichibankan

Ota-ku, Tokyo

1,069

0.5

Park Axis Taito Negishi

Taito-ku, Tokyo

672

0.3

Park Axis Komagome

Toshima-ku, Tokyo

1,389

0.6

Itabashi-ku, Tokyo

1,859

0.9

Park Axis Itabashi Honcho
Nibankan
Shibaura Island Air Tower

Minato-ku, Tokyo

Tokyo 23 wards total

7,905

3.6

181,13983.2

Park Cube Keio Hachioji

Hachioji-shi, Tokyo

991

0.5

Park Cube Keio Hachioji II

Hachioji-shi, Tokyo

1,130

0.5

Park Axis Nishi Funabashi

Funabashi-shi, Chiba

1,020

0.5

1,419

0.7

1,679

0.8

970

0.4

7,209

3.3

2,440

1.1

1,920

0.9

1,515

0.7

1,890

0.9

742

0.3

1,547

0.7

2,320

1.1

960

0.4

605

0.3

1,650

0.8

Park Axis Yokohama Idogaya
Park Axis Chiba Shinmachi
Park Axis Chiba

Minami-ku,
Yokohama-shi,
Kanagawa
Chuo-ku, Chiba-shi
Chiba
Chuo-ku, Chiba-shi,
Chiba

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

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

827

0.4

2,369

1.1

2,399

1.1

Other major cities total (Note 4)

21,184

9.7

Total

209,532

96.3

Park Axis Esaka HiroshibachoPark Axis Utsubo Koen

Nishi-ku, Osaka-shi,
Osaka<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

40

2. Other Accommodation Assets
Name
Dormy Ashiya
Kawaijuku Kyoto Gakushin Ryo
Sundai Horikawa Ryo

LocationPrice of (planned)
acquisition(million yen)
(Note 1)

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

928

0.4

991

0.5

916

0.4

374

0.2

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

Dormitory Rakuhoku

Kita-ku, Kyoto-shi, Kyoto

Rikkyo University International
Dormitory (RUID) Shiki

Shiki-shi, Saitama

1,478

0.7

Dormy Naka Itabashi

Itabashi-ku, Tokyo

1,041

0.5

Philosophia Nishidai

Itabashi-ku, Tokyo

1,249

0.6

Dormy Musashi Kosugi

Nakahara-ku,
Kawasaki-shi,
Kanagawa

1,152

0.5

8,129

3.7

217,661

100.0

Total
Grand total(Note 1) The ‘Price of (planned) acquisition’ 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 ‘Price of (planned)
acquisition’ item. The percentage figure is rounded off to two decimal places.
(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.

<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

41

<Attached Document 3> Photographs of exteriors and entrances of the properties to be acquired
1. Park Axis Shin Sapporo

2. Park Axis Yokohama Idogaya<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

42

3. Park Axis Chiba Shinmachi

4. Park Axis Kamata Ichibankan<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

43

5. Park Axis Chiba

6. Park Axis Taito Negishi<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

44

7. Park Axis Esaka Hiroshibacho

8. Park Axis Komagome<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

45

9. Park Axis Utsubo Koen

10. Park Axis Itabashi Honcho Nibankan<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

46

11. Dormy Ashiya

12. Kawaijuku Kyoto Gakushin Ryo<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

47

13. Sundai Horikawa Ryo

14. Dormitory Rakuhoku<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

48

15. Rikkyo University International Dormitory (RUID) Shiki

16. Dormy Naka Itabashi<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

49

17. Philosophia Nishidai

18. Dormy Musashi Kosugi<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

50

19. Shibaura Island Air Tower<Caution> This document is a press release intended for general publication regarding NAF’s acquisition of real estate properties
and is not for purposes of soliciting investment. When investing, we ask that investors exercise their own judgment taking full
responsibility after having read carefully the new investment unit issuance and secondary offering prospectus, or any corrections
thereof, prepared by NAF.

51