Creating peace of mind through honest and committed management.

[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

January 28, 2016
REIT Issuer
Ichigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

Sale of Portfolio Asset(Akita Sanno 21 Building)
Ichigo Real Estate Investment Advisors Co., Ltd. (“IRE”), the asset management company ofIchigo Office REIT, today contracted to sell the Akita Sanno 21 Building.
1. Sale Overview
Name
Asset Type/Property No.
Building Completion Date
Legal Form of Asset
Acquisition Date
(Original acquisition date)
Sale Price1
Forecast Book Value2
Difference between Sale
Price and Forecast BookValue
Appraisal ValueContract Date
Transfer Date
Settlement Date
Transfer Method

Akita Sanno 21 Building
Office/O-44
March 1, 1992
Real estate
November 1, 2011 (Ichigo Office REIT merger)(December 4, 2007)
520,645,331 yen
551,423,831 yen-30,778,500 yen
576,000,000 yen (as of October 31, 2015)
January 28, 2016
January 29, 2016
January 29, 2016
Real estate sale

1

Sale price excludes incidental expenses such as property, city planning, and consumption taxes.
Forecast Book Value is an estimate for book value based upon the most recent book value(October 2015 fiscal period) adjusted for any capital expenditure and depreciation between themost recent book value and the Settlement Date.

21

2. Sale Rationale
In its current Stage V Lay Foundation for Sustainable Dividend Growth, Ichigo Office REIT isexecuting on its strategy of “Increase portfolio size and scale and be smart in portfoliorestructuring.”
Ichigo Office REIT regularly reviews its portfolio for profitability and makes a determination
whether it is in the best interest of shareholders to continue to own each asset based upon its
occupancy, maintenance needs, and competitiveness with nearby assets. In this case, Ichigo
Office REIT concluded that selling the asset is consistent with its Stage V objective of selling
assets with limited potential in order to improve its portfolio and increase shareholder value.
3. Asset Overview
O-44 Akita Sanno 21 Building
Name
Legal Form of Asset
Location
Property Right
Size
Land
ZoningCoverage Ratio/
Floor Area Ratio
Property Right
UseStructure
Building
Total Floor Area
Construction Date
Number of Tenants
Monthly Rent3
Tenant Security Deposits3
Leasable Space
Leased SpaceOccupancy
Acquisition PriceAppraiser
Date
AppraisalValue3Asset Overview
Akita Sanno 21 Building
Real estate
2-1-53 Sanno, Akita City, Akita Prefecture
Ownership
863.29 m2
Commercial
80%/500%
Ownership
Office, Parking
SRC/S 8F
4,217.01 m2
March 1, 1992
12 (as of January 29, 2016)
7,417 thousand yen (as of January 29, 2016)
64,020 thousand yen (as of January 29, 2016)
3,497.88 m2 (as of January 29, 2016)
3,188.58m2 (as of January 29, 2016)
91.2% (as of January 29, 2016)
560 million yen
Japan Real Estate Institute
October 31, 2015
576 million yen

Monthly Rent and Tenant Security Deposits refer to those stated in the rental contract. Monthly
Rent includes cost of utilities.

24. Appraisal Overview
Appraisal Overview
Name

Akita Sanno 21 Building

Appraisal Value

576,000,000 yen

Appraiser

Japan Real Estate Institute

Appraisal Date

October 31, 2015
AmountAppraisal Value
Value by Direct Capitalization
MethodIncome576,000,000 yen

Notes
Valuation determined via integrating a direct capitalization
valuation and DCF valuation

579,000,000 yen
88,552,000 yen

Maximum Obtainable
Rental Income

110,612,000 yen

Based on rental income, common area service income, parking
lot income, and other income

Vacancy Loss

22,060,000 yen

Based on mid- to long-term vacancy rate

Expenses

36,057,000 yen

Administrative andMaintenanceExpenses

9,996,000 yen

Based on similar assets and past actual amounts

Utility Expenses

10,900,000 yen

Based on similar assets and past actual amounts

Repair Expenses

4,050,000 yen

Based on engineering reports and similar assets

PM Fees

2,526,000 yen

Based on similar assets and past actual amounts

Leasing Brokerage
Fees
Taxes
Insurance Premiums
Other Expenses
Net Operating Income(NOI)
Income on Investmentof Deposits ReceivedCapital Expenditure
Net Profit
Cap Rate
Value via DCF Method

542,000 yen
7,858,000 yen
185,000 yen
0 yen

Based on the expected turnover rate and tenant acquisition costs
for similar assets
Based on FY2015 actual amounts
Based on the standard of similar assets and past actual amounts
Not applicable

52,495,000 yen
936,000 yen
9,460,000 yen
43,971,000 yen
7.6%

Based on 2.0% investment yield
Based on engineering reports and similar assets
Based on transactions of similar assets and comprehensive
assessment of the asset’s location, its individual characteristics,
market trends, etc.

572,000,000 yen

Discount Rate

7.5%

Based on transactions of similar assets and the yields of financial
assets with the asset’s individual characteristics taken into
account

Terminal Cap Rate

7.9%

Based upon risk-adjusted NOI

Value via Cost Approach

534,000,000 yen

Land

10.3%

Property

89.7%
Notes

None3

5. Buyer Profile
NameThe buyer is a domestic operating company, but
did not give consent to disclosure of its name.

Relationship with Ichigo Office
REIT or IRE

The buyer does not have any capital, personnel, or businessrelationship of note with Ichigo Office REIT or IRE. Inaddition, the seller is not an interested party as defined in
the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law or the internal regulations ofthe Asset Management Company.

6. Broker Profile
Name
Address
Representative
Principal Businesses
CapitalRelationship with Ichigo Office
REIT or IRE

Brokerage Fee

Mizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo
Takeo Nakano, President & CEO
Trust banking
247,300 million yen
The broker does not have any capital, personnel, orbusiness relationship of note with Ichigo Office REIT/IRE.
In addition, the seller is not an interested party as definedin the Enforcement Ordinance of the Investment Trust andInvestment Corporation Law or the internal regulations ofthe Asset Management Company.
The broker did not give consent to disclosure of the fee.

7. Use of Sale Proceeds
Ichigo Office REIT will allocate part of the sale proceeds towards prepayment of existing loans
and the rest will be retained as cash-on-hand. Details of the loan prepayment will be announced
as soon as they have been decided.
8. Future OutlookAn impairment loss of 52 million yen will result from the sale, which will be offset with anequivalent deduction from Ichigo Office REIT’s dividend reserve. Thus, the impact of the saleon Ichigo Office REIT’s earnings and dividend forecasts for the April 2016 and October 2016
fiscal periods is minimal, and the forecasts are unchanged.

Website of Ichigo Office REIT: www.ichigo-office.co.jp/english

4Portfolio Reference Information
1. Post-Sale Portfolio Summary
Before Sale (A)After Sale (B)

96.0%496.0%

Difference(B-A)－82.7%/17.3%

83.0%/17.0%+0.3%/-0.3%

Occupancy
Diversification by Area –Greater Tokyo Area/Other Areas5
45

As of December 31, 2015
“Greater Tokyo Area” refers to “Central Tokyo” and “Tokyo Metropolitan Area.” “Other Areas”
refers to “Four Major Regional Cities” and “Other Regional Cities.”

2. Post-Sale Portfolio Assets

No.

Area6

Property

Acquisition% ofPrice7
Portfolio8(mm yen)

O-02 Ichigo Nishisando Building

Central Tokyo

3,254

2.0%

O-03 Ichigo Mita Building

Central Tokyo

2,740

1.7%

O-04 Ichigo Nanpeidai Building

Central Tokyo

1,920

1.2%

O-05 Ichigo Hanzomon Building

Central Tokyo

1,550

0.9%

O-06 Ichigo Hijirizaka Building

Central Tokyo

1,200

0.7%

O-07 Ichigo Shibuya Kamiyamacho Building

Central Tokyo

1,505

0.9%

O-08 Ichigo Akasaka 5 Chome Building

Central Tokyo

735

0.4%

O-09 Ichigo Shibakoen Building

Central Tokyo

1,100

0.7%

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

1,917

1.2%

O-11 Ichigo Ginza 612 Building

Central Tokyo

1,773

1.1%

O-12 Ichigo Uchikanda Building

Central Tokyo

1,140

0.7%

O-14 Ichigo Yotsuya 4 Chome Building

Central Tokyo

550

0.3%

O-15 Ichigo Tameike Building

Central Tokyo

580

0.4%

O-16 Ichigo Jimbocho Building

Central Tokyo

1,820

1.1%

O-17 Ichigo Hakozaki Building

Central Tokyo

1,150

0.7%

O-18 Ichigo Kudan 2 Chome Building

Central Tokyo

763

0.5%

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

844

0.5%

O-20 Ichigo Gotanda Building

Central Tokyo

5,060

3.1%

O-21 Ichigo Shin Yokohama Building

Tokyo Metropolitan Area

1,816

1.1%

O-22 Ichigo Minami Ikebukuro Building

Tokyo Metropolitan Area

1,460

0.9%

O-23 Ichigo Nakano North Building

Tokyo Metropolitan Area

764

0.5%

O-24 Ichigo Eitai Building

Tokyo Metropolitan Area

1,490

0.9%

O-25 Ichigo Yokosuka Building

Tokyo Metropolitan Area

971

0.6%

O-26 Ichigo Ikejiri Building

Tokyo Metropolitan Area

2,030

1.2%

O-27 Ichigo Nishi Ikebukuro Building

Tokyo Metropolitan Area

639

0.4%

O-28 Ichigo Nishi Gotanda Building

Central Tokyo

765

0.5%

5

No.

Area6

Property

Acquisition% ofPrice7
Portfolio8(mm yen)

O-29 Ichigo Kichijoji Building

Tokyo Metropolitan Area

2,160

1.3%

O-33 Ichigo Meieki Building

Four Major Regional Cities

837

0.5%

O-34 Ichigo Sakae Building

Four Major Regional Cities

4,705

2.8%

O-37 Ichigo Marunouchi Building

Four Major Regional Cities

6,710

4.1%

O-38 Ichigo Toyamaeki Nishi Building

Other Regional Cities

1,650

1.0%

O-39 Ichigo Mirai Shinkin Building

Other Regional Cities

1,158

0.7%

O-40 Ichigo Saga Building

Other Regional Cities

659

0.4%

O-42 Ichigo Takamatsu Building

Other Regional Cities

3,010

1.8%

O-46 Ichigo Kanda Nishikicho Building

Central Tokyo

2,130

1.3%

O-47 Ichigo Akiharaba North Building

Central Tokyo

5,500

3.3%

O-48 Ichigo Sakaisuji Honmachi Building

Four Major Regional Cities

1,940

1.2%

O-49 Ichigo Kanda Ogawamachi Building

Central Tokyo

2,210

1.3%

O-50 Ichigo Hatchobori Building

Central Tokyo

1,905

1.2%

O-51 Ebisu Green GlassCentral Tokyo

5,900

3.6%

O-52 Ichigo Omori Building

Central Tokyo

3,850

2.3%

O-53 Ichigo Takadanobaba Building

Central Tokyo

1,580

1.0%

O-54 Ichigo Omiya Building

Tokyo Metropolitan Area

3,430

2.1%

O-55 Ichigo Sagamihara Building

Tokyo Metropolitan Area

1,174

0.7%

O-56 Ichigo Ofuna Building

Tokyo Metropolitan Area

2,000

1.2%

O-57 Ichigo Sendai East Building

Other Regional Cities

1,840

1.1%

O-58 Ichigo Kumamoto Building

Other Regional Cities

1,450

0.9%

O-59 Ichigo Jingumae Building

Central Tokyo

7,200

4.4%

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

3,650

2.2%

O-61 Ichigo Hiroo Building

Central Tokyo

3,960

2.4%

O-62 Ichigo Sasazuka Building

Central Tokyo

4,780

2.9%

O-63 Ichigo Nihonbashi East Building

Central Tokyo

4,700

2.8%

O-64 Ichigo Sakurabashi Building

Central Tokyo

2,500

1.5%

O-65 Ichigo Shinkawa Building

Central Tokyo

2,360

1.4%

O-66 Ichigo Kudan Building

Central Tokyo3,190

1.9%

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

3,660

2.2%

O-68 Axior Mita

Central Tokyo

1,800

1.1%

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metropolitan Area

4,570

2.8%

O-70 Koriyama Big-i (Office Section)

Other Regional Cities

1,660

1.0%

O-71 Ichigo Kawasaki Building

Tokyo Metropolitan Area

1,750

1.1%

Subtotal - Office (60 Properties)

141,114

85.5%

6

No.

Area6

Property

Ichigo Serviced Apartments
Takanawadai
R-06 B-SITE Hamamatsucho
R-04

Acquisition% ofPrice7
Portfolio8(mm yen)Central Tokyo

1,360

0.8%

Central Tokyo

701

0.4%

R-09 Ichigo Serviced Apartments Ginza

Central Tokyo

946

0.6%

Z-02 Ichigo Fiesta Shibuya

Central Tokyo

1,970

1.2%

Z-03 Ichigo Burg Omori

Tokyo Metropolitan Area

3,218

1.9%

Z-04 Ichigo Pagoda Asakusa

Tokyo Metropolitan Area

1,640

1.0%

Z-05 Ichigo Machida East Building

Tokyo Metropolitan Area

1,310

0.8%

Z-06 Ichigo Yokohama Nishiguchi Building
Ichigo Sapporo Minami 2 Nishi 3
Z-07
Building
Z-08 Ichigo Daimyo Balcony

Tokyo Metropolitan Area

903

0.5%

Four Major Regional Cities

558

0.3%

Four Major Regional Cities

6380.4%Z-09 Konami Sports Club Izumi Fuchu
Ichigo Shibuya Bunkamura Dori
Z-10
Building
Twicere Yokohama Isogo
Z-11(Retail Section)
Z-12 Lions Square Kawaguchi
Ichigo Shin Yokohama Arena Dori
Z-13
Building
Z-14 Ichigo Kamata Building

Other Regional Cities

1,210

0.7%

Central Tokyo

2,400

1.5%

Tokyo Metropolitan Area

1,620

1.0%

Tokyo Metropolitan Area

2,430

1.5%

Tokyo Metropolitan Area

1,700

1.0%

Tokyo Metropolitan Area

1,400

0.8%

Subtotal - Other (16 Properties)

24,004

14.5%

Total (76 Properties)

165,118

100.0%

1,000－1,000－2,000－

Motoazabu Holdings GK TK Equity Interest
Investments
in Securities Ikenohata Holdings GK TK Equity Interest
Total (2 assets)
6“Central Tokyo” refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards.
“Tokyo Metropolitan Area” refers to Tokyo (excluding the six wards above), Kanagawa, Chiba,and Saitama Prefectures. “Four Major Regional Cities” refers to Osaka, Nagoya, Fukuoka, andSapporo.
7
Acquisition Price is the acquisition price (excluding consumption tax). For the 41 assets (O-02to O-42 and Z-02 to Z-08) acquired via the REIT merger on November 1, 2011, the appraisal
value as of October 31, 2011 is shown.
8% of Portfolio is the Acquisition Price of the Total Acquisition Price and rounded to the nearest second
decimal place.

7