Notice Concerning Acquisition of Assets (HF SOKA RESIDENCE ...

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September 24, 2021

For Immediate Release

REIT Issuer

HEIWA REAL ESTATE REIT, Inc.

9-1 Nihonbashi Kabuto-cho, Chuo-ku, Tokyo

Aya Motomura, Executive Director

Asset Management Company

HEIWA REAL ESTATE Asset Management CO., LTD.

Masanori Hirano, President & Representative Director

Inquiries: Yoshio Ito, General Manager, Planning & Finance Department

TEL. +81-3-3669-8771

Notice Concerning Acquisition of Assets (HF SOKA RESIDENCE and Faret East Building)

HEIWA REAL ESTATE REIT, Inc. (hereinafter referred to as the “Investment Corporation”) announced today that

HEIWA REAL ESTATE Asset Management CO., LTD. (hereinafter referred to as the “Asset Management Company”),

the company to which the Investment Corporation entrusts its asset management operations, decided to execute the

acquisition of assets (hereinafter referred to as the “Acquisition”). The details are as follows.

Details

1. Overview of the acquisitions

Property

Number Property Name

Type of

Specified Asset

Investment

Category Investment Area

Proposed

Acquisition Price

(million yen) (Note 2)

Appraisal

Value

(million yen)

Re-98 HF SOKA RESIDENCE

(Note 1) Real estate Residence

Secondary investment

area

(Soka-City, Tokyo)

1,300 1,410

Of-48 Faret East Building Real estate Office

Secondary investment

area

(Tachikawa-City,

Tokyo)

1,010 1,210

Total 2,310 2,620

(Note 1)The name of this property is currently “Hulic Residence Soka” , but it is to be changed to “HF SOKA RESIDENCE” on May 1, 2022 after

the Investment Corporation has acquired it. Accordingly, its name after the change is recorded.

(Note 2) “Proposed acquisition price” is the price described in the trust beneficial interest transaction agreement or real estate transaction agreement

(consumption tax excluded), and does not include the amounts of settlement for fixed property tax, city planning tax, etc.

(1) Agreement execution date: September 24, 2021

(2) Scheduled acquisition date: September 29, 2021 HF SOKA RESIDENCE

October 29, 2021 Faret East Building

(3) Acquisition financing: Cash on hand and borrowings

(4) Payment method: Lump-sum payment at time of delivery

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2. Reason for the acquisition

The Investment Corporation’s Articles of Incorporation stipulates that the “targets and policies of asset

management” is to ensure the steady growth of the investment portfolio and medium- to long-term sustainable profit.

Under the Articles of Incorporation, the Investment Corporation seeks to expand its assets through continuous

property acquisitions and to improve the quality and profitability of the portfolio by replacing assets. The Asset

Management Company has evaluated the acquired property on the following points and decided to acquire the

property based on the belief that the acquisition would help realize the policy above and improve unitholder

value.

(1) HF SOKA RESIDENCE

The acquired property is a 9-minute walk from Dokkyodaigakumae Station on the TOBU SKYTREE

Line. It has good access to the central Tokyo area, as by train it is 15 minutes to Kita-senju Station and 37

minutes to Otemachi Station from Dokkyodaigakumae Station. In addition, the area is very convenient as

the TOBU SKYTREE Line is connected to Tokyo Metro's Hibiya and Hanzomon Lines. The area around

Dokkyodaigakumae Station has a range of facilities convenient for living such as grocery stores and

restaurants. Additionally, the west exit area, where the acquired property is located, features a clean and

well-maintained cityscape, reflecting the progress in development over recent years. Dokkyo University

is located in the neighborhood, which has a rich natural environment and includes features such as the

Ayase River and Matsubara-Ayase River Park. The area is full of life.

The acquired property includes 99 units in either a 25.08 m2 1K unit layout (98 units) or a 50.16 m2 2DK

unit layout (1 unit). Demand is expected to be mainly from singles. In terms of the level of facilities

provided, the property gives consideration to security by installing automatic locks, security cameras and

video intercoms, among other equipment. Moreover, with baths and toilets located separately and the

building equipped with home delivery boxes, it is sufficiently competitive with neighboring properties. It

is also includes 19 parking spaces, addressing the needs of residents who have cars.

The NOI yield, which is calculated from the acquisition price and the appraisal NOI, and the NOI yield

after depreciation are high at 5.0% and 3.9% respectively, and, based on the appraisal value and

acquisition price, unrealized gain is expected to improve approximately 110 million yen.

(2) Faret East Building

“Faret Tachikawa” area, where the acquired property is located, is a redevelopment area completed in

1994 after the former U.S. military base property was returned to Japan in 1977. The redevelopment

project was promoted for the creation of an urban business district expected to play a pivotal role in

community development. It is in an area that offers many convenient living facilities with shopping streets

extending radially from the Tachikawa Station and large commercial facilities such as ISETAN,

Takashimaya and GRANDUO Tachikawa operating nearby.

The acquired property is a 6-minute walk from Tachikawa Station, a hub station served by the JR Chuo

Line, Ome Line and Nambu Line, and a 6-minute walk from Tachikawa-Kita Station on the Tokyo Tama

Intercity Monorail, with the stations directly connected through pedestrian walkways. The location offers

superbly convenient access to other destinations including main office areas such as Shinjuku and Tokyo

without transfer.

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The area around Tachikawa Station is one of the largest shopping and commercial districts in west Tokyo,

where there is strong demand for financial institutions, manufacturers' sales bases and a range of services

for local residents. The number of companies and the number of employed people are stable, so the area

is expected to continue consistently creating demand, going forward.

The standard floor area of the acquired property is 332 tsubo and can be divided into areas of 50 tsubo or

larger for handling, enabling the users to meet a range of demand. In addition, it is very competitive, with

a ceiling height of 2,600 mm and each floor separately air conditioned.

The NOI yield, which is calculated from the acquisition price and appraisal NOI, and the NOI yield after

depreciation are high at 5.5% and 4.8% respectively, and based on the appraisal value and acquisition

price, unrealized gain is expected to improve approximately 200 million yen.

3. Details of the property to be acquired


Property number / Property name Re-98 HF SOKA RESIDENCE

Type of asset Real estate

Location (Note 1)

(Building address on real estate registry)

4-180-3, Soka, Soka City, Saitama

(Lot number)

4-2-21, Soka, Soka City, Saitama

Land

Form of ownership Ownership

Area (Note 1) 1,757.08 ㎡

Use district (Note 2) Category 1 medium-to-high-rise residential district

Building coverage

ratio(Note 3) 60%

Floor area ratio(Note 3) 200%

Building

Form of ownership Ownership

Use (Note 1) Residence

Structure/Floors (Note 1) Reinforced concrete flat roof 5 floors above ground

Total floor space (Note 1) 3,229.29 ㎡ (Includes accessory buildings: dumpsters and a pump room)

Construction

completion date (Note 1) February 18, 2010

Construction client Hulic Co., Ltd.

Constructor Taisei U-LEC Co.,Ltd.

Architect Taisei U-LEC Co.,Ltd. first-class architect office

Structural designer Taisei U-LEC Co.,Ltd. first-class architect office

Building certification The Housing Loan Progress Association

Collateral None

Property management company HASEKO LIVENET, Inc

Master lease company HASEKO LIVENET, Inc

Master lease type Pass through

Tenant details (Note 4)

Total leasable units 99

Total leased units 66

Total rent income 25,872 thousand yen

Leasehold and security

deposits 3,040 thousand yen

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Total leased floor space 1,655.28 ㎡

Total leasable floor space 2,508.00 ㎡

Occupancy rates

(Based on floor space) 66.00% (as of August 31, 2021)

NOI yield (Note 5) 5.0%

Outline of the engineering report

(Note 8)

Survey company Tokyo Bldg.-Tech Center Co., Ltd.

Survey date September 8, 2021

Replacement value 634,000 thousand yen

Probable maximum loss (PML) 3.1%

Long-term repairs

(next 15years) 71,560 thousand yen

Overview of real estate

appraisal report

Appraiser JLL Morii Valuation & Advisory K.K.

Value date August 17, 2021

Appraisal value 1,410,000 thousand yen

Other items of special note -

(Note1) “Location (excluding indication of residential address),” “Area,” “Use,” “Structure/Floor” “Total floor space” and “Construction

completion date” are as stated in the real estate registry.

(Note2) “Use district” is the type of use district as listed in Article 8, Paragraph 1, Item 1 of the City Planning Act.

(Note3) “Building coverage ratio” is the ratio of the building area of the building to the site area as stipulated in Article 53 of the

Building Standards Act. The “Floor area ratio” is the ratio of the total floor space of the building to the site area as

stipulated in Article 52 of the Building Standards Act.

(Note4) Figures in “Tenant details” are as of August 31, 2021.

With the expiration of the agreement for the lease of the whole building, new rental offers (hereinafter called the "lease-up")

started to be recieved on April 1, 2021. Given steady progress, the occupation rate is expected to rise to 88.00% by the expected

delivery date of the acquired property. “Total rent income” is the annualized figure (multiplied by 12) of the monthly rent

(including common expenses but not including fees for the usage of parking, storage rooms and such as well as consumption tax)

as of August 31, 2021, based on lease agreements and sub-leasing agreements concluded between the trustee or the Investment

Corporation and the master lease company or end tenants, with amounts below a thousand yen round off.

(Note5) “NOI yield” indicates the NOI yield calculated by using the net operating income (NOI) for the 12 months, which serves as the

assumption for the value indicated by the income approach under the direct capitalization method shown in the appraisal report

for the property, and is rounded to the first decimal place.

Of-48 Faret East Building

Property number / Property name Of-48 Faret East Building

Type of asset Real estate

Location (Note 1)

(Building address on real estate registry)

2-295, 2-49-8 Akebonocho, Tachikawa City, Tokyo

(Lot Number)

2-34-7 Akebonocho, Tachikawa City, Tokyo

Land

Form of ownership Ownership (Percentage of the right of site: 12.8054%)

Area (Note 1) Entire site: 2350.84 ㎡

Interest in the right of site: 301.03 ㎡

Use district (Note 2) Commercial district

Building coverage ratio(Note 3) 70%

Floor area ratio(Note 3) 700%

Building

Form of ownership Classification ownership (Partially shared)

Use (Note 1) Office, Store, and Storage

Structure/Floors (Note 1) Steel beam/steel-framed reinforced concrete, flat roof, 12 floors above ground

with 1 floor in the basement

Total floor space (Note 1,4) Total floor space 16,206.34 ㎡

Proprietary area 2,075.29 ㎡

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Construction

completion date (Note 1) December 15, 1994

Construction client Urban Renaissance Agency Tokyo Branch

Constructor Fujita Corporation Joint Venture

Architect Urban Renaissance Agency Tokyo Branch

Structural designer Urban Renaissance Agency Tokyo Branch

Building certification Tachikawa City, Tokyo

Collateral None

Property management company Toyo Real Estate Property Management Co.,Ltd.

Master lease company Toyo Real Estate Property Management Co.,Ltd.

Master lease type Pass through

Tenant details (Note 5)

Total number of tenant 2

Total rent income 75,710 thousand yen

Leasehold and security deposits 36,300 thousand yen

Total leased floor space 1,285.47 ㎡

Total leasable floor space 1,285.47 ㎡

Occupancy rates

(Based on floor space) 100% (as of August 31, 2021)

NOI yield (Note 6) 5.5%

Outline of the engineering report (Note 7)

Survey company Tokyo Bldg.-Tech Center Co., Ltd.

Survey date July 7, 2021

Replacement value 575,000 thousand yen

Probable maximum loss (PML) 3.6%

Long-term repairs

(next 15years) 622,430 thousand yen

Overview of real estate

appraisal report

Appraiser Daiwa Real Estate Appraisal Co., Ltd.

Value date September 1, 2021


Other items of special note -

(Note1) “Location (excluding indication of residential address),” “Area,” “Use,” “Structure/Floor” “Total floor space” and “Construction

completion date” are as stated in the real estate registry.

(Note 2) “Use district” is the type of use district as listed in Article 8, Paragraph 1, Item 1 of the City Planning Act.

(Note 3) “Building coverage ratio” is the ratio of the building area of the building to the site area as stipulated in Article 53 of the Building

Standards Act. The building coverage ratio is eased to 100% because this property is a fire-resistant building in the fire prevention

district.

(Note 4) The Investment Corporation plans to acquire B101, 101 and 1001, and their share of the exclusively owned area is 12.8054％ of the

total exclusively owned area of the building. Ownership is calculated by multiplying the total floor area of the building by

12.8054%, which is the Investment Corporation's co-ownership share.

(Note5) Figures in “Tenant details” are as of August 31, 2021.

Furthermore, “Total rent income” is the annualized figure (multiplied by 12) of the monthly rent (including common expenses but

not including fees for the usage of parking, storage rooms and such as well as consumption tax) as of August 31, 2021, based on

lease agreements and sub-leasing agreements concluded between the trustee or the Investment Corporation and the master lease

company or end tenants, with amounts below a thousand yen round off.

(Note6) “NOI yield” indicates the NOI yield calculated by using the net operating income (NOI) for the 12 months, which serves as the

assumption for the value indicated by the income approach under the direct capitalization method shown in the appraisal report

for the property, and is rounded to the first decimal place.

(Note7) The replacement value is the replacement value of the entire building stated in the engineering report multiplied by the Investment

Corporation's share of the exclusively owned area (12.8054％), and rounded down to the nearest million yen.

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4. Overview of the seller



The seller is a domestic business company, but it is undisclosed due to consent cannot be obtained. The seller is not

a party that has a special interest relationship with the Investment Corporation or the Asset Management Company.

5. Status of previous owner, etc. of the property to be acquired



The acquisition of the property is not acquisition from any persons having a special interest in the Investment

Company or the Asset Management Company.

6. Broker Profile


The broker is a domestic business company, but it is undisclosed due to consent cannot be obtained. The broker is

not a party that has a special interest relationship with the Investment Corporation or the Asset Management

Company.


None

7. Forward commitment

The Agreement on the Sale and Purchase, etc. of Real Estate regarding the acquisition (hereinafter referred to as the

“Agreement”) falls under forward commitments, etc. (see note) as stipulated in the “Comprehensive Guidelines for

Supervision of Financial Instruments Business Operators, etc.” issued by the Financial Services Agency.

Under the Agreement, if the Agreement is canceled due to a cause attributable to the Investment Corporation or the

counterparty, the defaulting party shall pay a cancelation penalty charge equal to 10% of the transaction price of the

real estate subject to the sale and purchase.

The Investment Corporation will allot funds in hand or funds borrowed to acquire financing for the property. In

consideration of cash and deposits held by the Investment Corporation today and cash flow conditions of the

Investment Corporation, the Investment Corporation does not consider that there will be any concern over acquisition

of the property to be acquired with funds in hand. Therefore, it believes that the possibility of the property to be

acquired having a material impact on the Investment Corporation’s financial conditions and payment of distributions

is low.

(Note) Forward commitment, etc. is defined as “forward dated sales contract in which the settlement and delivery of the property will be made at least

one month after the date of contract or other similar contracts

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8. Outlook

For the impact of the acquisitions on the management status forecast for the fiscal period ending November 2021

(the 40th Fiscal Period) and May 2021 (the 41th Fiscal Period) published in the 39th Fiscal Period Financial Report

dated July 20, 2021 is minor, and the management status forecasts will remain unchanged.

9. Overview of the appraisal report

Property name HF SOKA RESIDENCE


Appraiser JLL Morii Valuation & Advisory K.K.

Value date August 17, 2021

Item Content

(thousand yen) (Note)

Overview, etc.

Value 1,410,000 Estimate combining the indicated value by DCF method and direct

capitalization method.

Value indicated by the income

approach (direct capitalization

method)

1,440,000

Effective gross income 82,273

Potential total profits 87,284

Assessment based on current contracted rental levels, new rental

levels for comparable real estate in the same area with similar supply

and demand, supply and demand trends, and the medium to long term competitiveness of the target real estate.

Losses from vacancies,

etc. 5,011

Appraised vacancy rates that are considered to be stable on a medium to long term basis.

Operating expenses 17,246

Management fees 3,624 Appraised based on records in reference to similar properties. （398

yen per month/rent per tsubo)

Property management

fee 1,585

Adopted based on a decision that quotes were appropriate in

reference to similar properties.

Utilities expenses 1,275 Assumed with reference to levels of similar properties.

Maintenance and repair

cost 1,431

30% of standardized amount, based on conclusion that the ER estimate is appropriate.

Tenant advertisement

expenses, etc. 1,809 Posted new rents for 1.5 months.

Public charges and

taxes 541

Took fluctuations into consideration (adopted the 11th year of the

DCF analysis period) while also using records as a foundation.

Casualty insurance

premiums 124 Posted based on the decision that quotes were appropriate.

Other expenses 713 Posted internet expenses.

Net operating income (NOI) 65,027

Interest on lump-sum

payments 57

Appraised by multiplying the amounts of the guarantee for full occupancy and the exclusion of equivalent amounts for vacancies

by an interest of 1%.

Capital expenditures 3,339 70% of standardized amount, based on conclusion that the ER

estimate is appropriate.

Net cash flow (NCF) 61,745

Capitalization rate 4.3% Assessed after comprehensively considering criteria including the

location, the building and other characteristics of the target real

estate and transactions involving comparable real estate.


approach (discounted cash flow

method)

1,370,000

Discount rate 4.1%

Assessment made by referring to investment yields, among other factors, of comparable real estate and comprehensively taking into

account factors including the individual characteristics of the target

real estate.

Terminal capitalization rate 4.5% Assessed after considering the marketability of the target real estate

after the expiration of the holding period based on the capitalization

rate.

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Value indicated by the cost approach

using the cost accounting method 853,000

Percentage of land 66.3%

Percentage of building 33.7%

Other notable items regarding the

appraisal as stated by the appraiser －

(Note) The balance above is based on that in the appraisal report and is not that of the Investment Corporation or the Asset Management

Company

Property name Faret East Building

Appraisal value 1,210,000thousand yen

Appraiser Daiwa Real Estate Appraisal Co., Ltd.

Value date September 31, 2021

Item Content

(thousand yen) (Note)

Overview, etc.

Value 1,210,000 Estimated by linking indicated value by DCF method and indicated value by direct capitalization method


approach (direct capitalization

method)

83,204

Effective gross income 87,541

Potential total profits 87,549

Assessment based on current contracted rental levels, new rental

levels for comparable real estate in the same area with similar

supply and demand, supply and demand trends, and the medium to long term competitiveness of the target real estate.

Losses from vacancies,

etc. 4,336

Appraised vacancy rates that are considered to be stable on a medium to long term basis.

Operating expenses 27,500

Management fees 9,706 Assumed a monthly fee of 2,080 yen per one tsubo of rentable floor area after referring to the maintenance and management fees and

records of similar properties.

Property Management

fee 2,251

Posted an amount equivalent to 2.8% of rent income and others

based on the decision that levels in expected contracts are appropriate.

Utilities expenses 6,953 Assumed a monthly fee of 1,490 per one tsubo of rentable floor area

while also taking vacancy rates into consideration based on records from previous years.

Maintenance and repair

cost 1,723

Assumed and posted an amount equivalent to 0.3% of the building

replacement price after referring to the records of extraordinary

repair expenses in previous years.

Tenant advertisement

expenses, etc. 478

Referred to tenant recruitment expenses used for similar properties,

and assumed and posted an amount equivalent to the rent of a new

tenant for one month.

Public charges and

taxes 5,200

Appraised based on materials for the 2021 property tax and urban

planning tax while also taking into account tax burdens and other

factors.

Casualty insurance

premiums 114

Assumed an amount equivalent to 0.02% of the building

replacement price referring to records for similar properties.

Other expenses 1073 Assumed 230 yen per month per one tsubo of rentable area for other

expenses.

Net operating income (NOI) 55,704

Interest on lump-sum

payments 693

The investment yield is assessed to be 1.0% after comprehensively

considering the interest rate levels of both the investment and replacement.

Capital expenditures 4,022 Assumed and posted an amount equivalent to 0.7% of the building

replacement price after referring to the records of extraordinary repair expenses from previous years.

Net cash flow (NCF) 52,375

Capitalization rate 4.2% Assessed after comprehensively considering criteria including the

location, the building and other characteristics of the target real

estate and transactions involving comparable real estate.


approach (discounted cash flow 1,190,000

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method)

Discount rate 4.0% Assessed through comparison with discount rates in transactions

involving similar properties and the yields of other financial instruments.

Terminal capitalization rate 4.4% Assessed after considering the marketability of the target real

estate after the expiration of the holding period based on the capitalization rate.

Value indicated by the cost approach

using the cost accounting method 1,100,000

Percentage of land 85%

Percentage of building 15%

Other notable items regarding the

appraisal as stated by the appraiser －

(Note)The balance above is based on that in the appraisal report and is not that of the Investment Corporation or the Asset Management

Company

* Investment Corporation Website: https://www.heiwa-re.co.jp/en/

【Attachment】

(Attachment 1) Picture and Map of the properties to be acquired

(Attachment 2) Portfolio list after the acquisition of the properties

https://www.heiwa-re.co.jp/en/

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(Attachment 1) Picture and Map of the properties to be acquired


(Pictures)

(Map)

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(Pictures)

(Map) (Section to be acquired)

12F

11F

10F

9F

8F

7F

6F

5F

4F

3F

2F

1F Retail

B1 Storage

Acquisition Area (12.81%)

Residence

Office

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(Attachment 2) Portfolio list after the acquisition of the properties

Property

No. Property Name Location

Investment

Area (Note 1)

Acquisition Price

(million yen)

(Note 2)

Investment

Ratio (%) (Note 2)

Office

Of-05 SUITENGU HEIWA BUILDING Chuo-ku, Tokyo I 1,550 0.79

Of-06 HF MONZENNAKACHO BUILDING Koto-ku, Tokyo I 2,500 1.28

Of-07 HF HAMAMATSUCHO BUILDING Minato-ku,

Tokyo I 1,530 0.78

Of-08 HF TAMEIKE BUILDING Minato-ku,

Tokyo I 2,700 1.38

Of-09 GRACE BUILDING SENGAKUJIMAE Minato-ku,

Tokyo I 1,220 0.62

Of-11 HF NIHONBASHI ODENMACHO BUILDING Chuo-ku, Tokyo I 2,150 1.10

Of-12 HF HATCHOBORI BUILDING Chuo-ku, Tokyo I 3,092 1.58

Of-17 HATCHOBORI MF BUILDING Chuo-ku, Tokyo I 1,110 0.57

Of-18 M2 HARAJUKU Shibuya-ku,

Tokyo I 3,418 1.75

Of-20 FUNABASHI FACE BUILDING Funabashi City,

Chiba II 3,900 2.00

Of-21 ADESSO NISHIAZABU Minato-ku,

Tokyo I 640 0.33

Of-23 HF IKEBUKURO BUILDING Toshima-ku,

Tokyo I 1,314 0.67

Of-24 HF YUSHIMA BUILDING Bunkyo-ku,

Tokyo I 1,624 0.83

Of-25 KAYABACHO HEIWA BUILDING Chuo-ku, Tokyo I 4,798 2.46

Of-27 KOBE KYUKYORYUCHI HEIWA BUILDING Kobe City,

Hyogo III 2,310 1.18

Of-29 SAKAE MINAMI BUILDING Nagoya City,

Aichi III 1,580 0.81

Of-30 HF SAKURADORI BUILDING Nagoya City,


Of-31 HF NIHONBASHI HAMACHO BUILDING Chuo-ku, Tokyo I 1,900 0.97

Of-32 HF SENDAI HONCHO BUILDING Sendai City,

Miyagi III 2,700 1.38

Of-33 HF UENO BUILDING Taito-ku, Tokyo I 3,400 1.74

Of-34 KOJIMACHI HF BUILDING Chiyoda-ku,

Tokyo I 1,350 0.69

Of-35 HF KUDAN MINAMI BUILDING Chiyoda-ku,

Tokyo I 2,720 1.39

Of-36 HF KANDA OGAWAMACHI BUILDING Chiyoda-ku,

Tokyo I 3,150 1.61

Of-37 NISSO 5 BUILDING Yokohama City,

Kanagawa II 3,100 1.59

Of-38 ACROSS SHINKAWA BUILDING Chuo-ku, Tokyo I 3,750 1.92

Of-39 SENJU MILDIX Ⅱ Adachi-ku,

Tokyo I 1,650 0.85

Of-40 ARK Mori Building Minato-ku,

Tokyo I 3,085 1.58

Of-41 Nihonbashi Horidomecho First Chuo-ku, Tokyo I 2,140 1.10

Of-42 Southern Sky Tower Hachioji Hachioji City,

Tokyo II 1,600 0.82

Of-43 HAMACHO HEIWA BUILDING Chuo-ku, Tokyo I 3,100 1.59

Of-44 KINSICHO SQUARE BUILDING Sumida-ku,

Tokyo I 2,840 1.45

Of-45 KABUTO-CHO UNI-SQUARE Chuo-ku, Tokyo I 3,580 1.83

Of-46 TORYO BUILDING Sendai City,


Of-47 OSAKI CN BUILDING Shinagawa-ku,

Tokyo I 5,160 2.64

Of-48 Faret East Building Tachikawa City,

Tokyo II 1,010 0.52

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Property


Investment

Area (Note 1)

Acquisition Price

(million yen)

(Note 2)

Investment

Ratio (%) (Note 2)

Office Subtotal 89,072 45.63

Re-03 HF ICHIKAWA RESIDENCE Ichikawa City,

Chiba II 430 0.22

Re-05 HF MEGURO RESIDENCE Meguro-ku,

Tokyo I 660 0.34

Re-09 HF KASAI RESIDENCE Edogawa-ku,

Tokyo I 650 0.33

Re-11 HF WAKABAYASHI-KOEN

RESIDENCE

Setagaya-ku,

Tokyo I 3,610 1.85

Re-12 HF HIMONYA RESIDENCE Meguro-ku,

Tokyo I 1,560 0.80

Re-14 HF MINAMIAZABU RESIDENCE Minato-ku,

Tokyo I 1,370 0.70

Re-16 HF GAKUGEIDAIGAKU

RESIDENCE

Meguro-ku,

Tokyo I 1,000 0.51

Re-17 HF HIGASHIKANDA RESIDENCE Chiyoda-ku,

Tokyo I 1,100 0.56

Re-18 HF HIGASHINIHONBASHI

RESIDENCE Chuo-ku, Tokyo I 1,210 0.62

Re-19 HF NERIMA RESIDENCE Nerima-ku,

Tokyo I 690 0.35

Re-20 HF SHIROKANETAKANAWA

RESIDENCE

Minato-ku,

Tokyo I 4,030 2.06

Re-21 HF MEIDAIMAE RESIDENCE Setagaya-ku,

Tokyo I 1,070 0.55

Re-22 HF NIHONBASHI RESIDENCE Chuo-ku, Tokyo I 1,130 0.58

Re-23 HF KAMISHAKUJII RESIDENCE Nerima-ku,

Tokyo I 950 0.49

Re-24 HF KINSHICHO RESIDENCE Sumida-ku,

Tokyo I 1,100 0.56

Re-25 HF GINZA RESIDENCE EAST Chuo-ku, Tokyo I 5,940 3.04

Re-26 HF SHIN-YOKOHAMA RESIDENCE Yokohama City,


Re-29 HF HAKUSAN RESIDENCE Bunkyo-ku,

Tokyo I 2,350 1.20

Re-30 HF MAGOME RESIDENCE Ota-ku, Tokyo I 1,630 0.83

Re-31 HF GAKUGEIDAIGAKU

RESIDENCE II

Meguro-ku,

Tokyo I 1,650 0.85

Re-33 HF KAMEIDO RESIDENCE Koto-ku, Tokyo I 1,050 0.54

Re-34 HF TANASHI RESIDENCE Nishi-tokyo

City, Tokyo II 911 0.47

Re-35 HF SHIBA-KOEN RESIDENCE Minato-ku,

Tokyo I 836 0.43

Re-36 HF MITA RESIDENCE Minato-ku,

Tokyo I 1,080 0.55

Re-38 LA RESIDENCE DE

SHIROKANEDAI

Minato-ku,

Tokyo I 730 0.37

Re-39 HF GINZA RESIDENCE EAST II Chuo-ku, Tokyo I 1,460 0.75

Re-40 HF HATCHOBORI RESIDENCE II Chuo-ku, Tokyo I 1,890 0.97

Re-41 HF HATCHOBORI RESIDENCE III Chuo-ku, Tokyo I 793 0.41

Re-42 HF GINZA RESIDENCE Chuo-ku, Tokyo I 944 0.48

Re-43 HF KOMAZAWA-KOEN

RESIDENCE TOWER

Setagaya-ku,

Tokyo I 6,520 3.34

Re-45 HF NAKANOSHIMA RESIDENCE Osaka City,

Osaka III 453 0.23

Re-46 HF AWAZA RESIDENCE Osaka City,

Osaka III 577 0.30

Re-47 HF MARUNOUCHI RESIDENCE Nagoya City,

Aichi III 624 0.32

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Property


Investment

Area (Note 1)

Acquisition Price

(million yen)

(Note 2)

Investment

Ratio (%) (Note 2)

Re-48 HF HIRAO RESIDENCE Fukuoka City,

Fukuoka III 1,780 0.91

Re-49 HF KAWARAMACHI NIJO

RESIDENCE

Kyoto City,

Kyoto III 534 0.27

Re-53 HF SHIJYO KAWARAMACHI

RESIDENCE

Kyoto City,

Kyoto III 1,820 0.93

Re-54 LA RESIDENCE DE SENDAGI Bunkyo-ku,

Tokyo I 820 0.42

Re-55 HF SENDAGI RESIDENCE Bunkyo-ku,

Tokyo I 870 0.45

Re-56 HF KOMAZAWA-KOEN

RESIDENCE

Setagaya-ku,

Tokyo I 615 0.32

Re-57 HF MUSASHIKOYAMA

RESIDENCE

Shinagawa-ku,

Tokyo I 842 0.43

Re-58 HF KOKUBUNJI RESIDENCE Kokubunji City,

Tokyo II 839 0.43

Re-59 HF HISAYAODORI RESIDENCE Nagoya City,


Re-60 HF KARASUMA KURAMAGUCHI RESIDENCE Kyoto City,

Kyoto III 572 0.29

Re-61 HF NISHI-SHINJUKU RESIDENCE WEST Shinjuku-ku,

Tokyo I 1,990 1.02

Re-62 HF NISHI-SHINJUKU RESIDENCE EAST Shinjuku-ku,

Tokyo I 1,170 0.60

Re-63 HF HIGASHI-SHINJUKU

RESIDENCE

Shinjuku-ku,

Tokyo I 1,360 0.70

Re-64 HF HIGASHI-SHINSAIBASHI

RESIDENCE

Osaka City,

Osaka III 566 0.29

Re-65 HF KITA-YOBANCHO RESIDENCE Sendai City,

Miyagi III 809 0.41

Re-66 HF ATAGOBASHI RESIDENCE Sendai City,

Miyagi III 684 0.35

Re-67 HF KYUDAIBYOIN-MAE

RESIDENCE

Fukuoka City,

Fukuoka III 426 0.22

Re-68 HF ASAKUSABASHI RESIDENCE Taito-ku, Tokyo I 771 0.39

Re-69 HF ICHIBANCHO RESIDENCE Sendai City,

Miyagi III 834 0.43

Re-70 HF HIGASHI-NAKANO RESIDENCE Nakano-ku,

Tokyo I 942 0.48

Re-72 HF WASEDA RESIDENCE Shinjuku-ku,

Tokyo I 2,090 1.07

Re-73 HF WASEDA RESIDENCE II Shinjuku-ku,

Tokyo I 872 0.45

Re-74 HF WAKAMATSU KAWATA

RESIDENCE

Shinjuku-ku,

Tokyo I 1,158 0.59

Re-75 HF SENDAI RESIDENCE EAST Sendai City,


Re-76 HF NISHIKOEN RESIDENCE Sendai City,


Re-77 HF BANSUI-DORI RESIDENCE Sendai City,

Miyagi III 790 0.40

Re-78 HF KANNAI RESIDENCE Yokohama City,


Re-79 HF MEIEKI-KITA RESIDENCE Nagoya City,


Re-80 HF HIGASHI-SAPPORO

RESIDENCE

Sapporo City,

Hokkaido III 1,560 0.80

Re-81 HF HAKATA-HIGASHI

RESIDENCE

Fukuoka City,

Fukuoka III 880 0.45

Re-82 HF SENDAI ITSUTSUBASHI RESIDENCE Sendai City,

Miyagi III 850 0.44

Re-83 HF TABATA RESIDENCE Kita-ku, Tokyo I 1,100 0.56

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Property


Investment

Area (Note 1)

Acquisition Price

(million yen)

(Note 2)

Investment

Ratio (%) (Note 2)

Re-84 HF RYOGOKU RESIDENCE Sumida-ku,

Tokyo I 1,400 0.72

Re-85 HF HACHIOJI RESIDENCE Hachioji City,

Tokyo II 1,120 0.57

Re-86 HF MITA RESIDENCE II Minato-ku,

Tokyo I 1,210 0.62

Re-87 HF MONZEN-NAKACHO RESIDENCE Koto-ku, Tokyo I 945 0.48

Re-88 HF MINAMI-SUNAMACHI RESIDENCE Koto-ku, Tokyo I 900 0.46

Re-89 HF SENDAI NAGAMACHI RESIDENCE Sendai City,


Re-90 HF SHOKOJI AKABANE RESIDENCE Kita-ku, Tokyo I 1,150 0.59

Re-91 HF SENDAI HONCHO RESIDENCE Sendai City,


Re-92 HF OHORI RESIDENCE BAYSIDE Fukuoka City,

Fukuoka III 1,150 0.59

Re-93 HF HAKATA-HIGASHI RESIDENCE Ⅱ Fukuoka City,

Fukuoka Ⅲ 1,198 0.61

Re-94 HF FUKUOKA RESIDENCE EAST Fukuoka City,

Fukuoka Ⅲ 1,180 0.60

Re-95 HF SHOKOJI AKABANE RESIDENCE Ⅱ Kita-ku, Tokyo I 1,690 0.87

Re-96 HF YAHIRO RESIDENCE Sumida-ku,

Tokyo I 1,220 0.62

Re-97 HF SETAGAYAKAMIMACHI RESIDENCE Setagaya-ku,

Tokyo I 700 0.36

Re-98 HF SOKA RESIDENCE Soka-City,

Tokyo II 1,300 0.67

Residence Subtotal 106,144 54.37

Portfolio Total 195,216 100.00

(Note 1) The Investment Area column entries are in accordance with the following basis:

Investment in the Primary Investment Area (Tokyo 23 Wards) is entered as “I,” investment in the Secondary Investment Area (Tokyo

(other than the Primary Investment Area), and major urban areas of Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture) is

entered as “II,” and investment in the Regional Investment Area (major urban areas of government-ordinance-designated cities other than

the Primary and Secondary Investment Area) is entered as III.”

(Note 2) Figures for the acquisition price are rounded off to the nearest specified unit, and figures for the investment ratio are rounded to the second

decimal place. Accordingly, the figures may not necessarily add up to the figures in the total columns.

Notice Concerning Acquisition of Assets (HF SOKA RESIDENCE ...

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