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May 22, 2020

For Immediate Release

REIT Issuer

HEIWA REAL ESTATE REIT, Inc.

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

Aya Motomura, Executive Director

(Securities Code: 8966)

Asset Management Company

HEIWA REAL ESTATE Asset Management CO., LTD.

Takaya Ichikawa, President & Representative Director

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

TEL. +81-3-3669-8771

Notice Concerning Asset Acquisition and Transfer

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 and transfer of assets (hereinafter referred to as the “Acquisition” and “Transfer,” respectively, and

collectively as the “Transaction”). The details are as follows.

Details

1. Overview of the transaction

(1) Overview of the acquisition

Property number / Property name Of-45 KABUTO-CHO UNI-SQUARE

Type of specified asset

Trust beneficial interest in real estate

(KABUTO-CHO UNI-SQUARE 5th to 8th floors (100% ownership interest), 1st

basement (58.07% co-ownership interest), 1st floor (58.07% co-ownership

interest) and 4th floor (59.80% co-ownership interest.))

Investment category Office

Investment area (Note 1) Primary Investment Area (Chuo-ku, Tokyo)

Proposed acquisition price (Note 2) 2,100,000 thousand yen

Agreement execution date May 22, 2020

Scheduled acquisition date May 28, 2020

Seller (Note 3) Undisclosed

Acquisition financing Proceeds from the sale and Cash on hand

Payment method Lump-sum payment at time of delivery

Trustee (Planned) Sumitomo Mitsui Trust Bank, Limited

Trust Term (Planned) From November 28, 2017 to May 31, 2030

(Note 1) The Primary Investment Area refers to the “23 wards of Tokyo”

(Note 2) “Proposed acquisition price” is the price described in the trust beneficial interest transaction agreement (consumption tax excluded), and

does not include acquisition expenses, fixed property tax equivalent, or city planning tax equivalent.

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(Note 3) Undisclosed as consent cannot be obtained from the seller.

(2) Overview of the transfer

Property number /Property name Re-15 HF AZABUJUBAN RESIDENCE

Type of specified asset Trust beneficial interest

Transfer value (Note 1) 1,450,000 thousand yen

Book value (Note 2) 1,093,613 thousand yen

Difference between transfer value and

book value (Note 3) 356,386 thousand yen

Scheduled agreement execution date May 22, 2020

Scheduled transfer date (Note 4) May 28, 2020

Transferee (Note 4) Undisclosed

(Note 1) “Transfer value” is the price described in the trust beneficial interest transaction agreement (consumption tax excluded), and does not

include the amounts of settlement for fixed property tax, city planning tax, etc.

(Note 2) “Book value” is estimated amount as of April 30, 2020. Furthermore, amounts below a thousand yen have been rounded off.

(Note 3) “Difference between transfer value and book value” represents the pro forma value calculated as the difference between the estimated

transfer value and book value. It differs from the actual gain (loss) on transfer.

(Note 4) Undisclosed as consent cannot be obtained from the transferee.

2． Reason for the transaction

Since the change of the sponsor in 2009, the Investment Corporation has been making efforts to improve the

quality and profitability of its portfolio through continuous property acquisition and asset replacement, and the

Transaction will also be conducted as part of these efforts.

The Transaction aims to improve the portfolio and strengthen its profitability by transferring the residence owned

and acquiring a new office property. While residences with stable income are valuable assets amid the increasingly

uncertain business sentiment along with the recent spread of the COVID-19 coronavirus, the property to be

transferred has characteristics of being susceptible relatively significantly to the economic fluctuations given its

locational conditions in Higashi-Azabu, Minato-ku, although it is a residence. On the other hand, Kabutocho, where

the property to be acquired is located is where HEIWA REAL ESTATE, the sponsor, was founded, and HEIWA

REAL ESTATE owns, manages and operates many office properties including the Tokyo Stock Exchange Building

there. The occupancy rates in the portfolio of HEIWA REAL ESTATE in this area are stable at a high level, and the

operation of offices in the Acquisition area is what the Investment Corporation does best.

In the economic aspects of the Transaction, acquisition at a lower level than the appraisal value will contribute to

an increase in the net asset value. In addition, it is also expected from the difference between the sizes of the property

to be acquired and the property to be transferred that asset size will increase, that rental business profit will increase

about 47 million yen annually and that net income per unit will increase about 21 yen every fiscal period (the latter

two are on a basis excluding special factors after posting taxes and public dues). In addition, while a gain on sales

of about 300 million yen is expected to arise as a result of the transfer at a level higher than the appraisal value, the

Investment Corporation will appropriate some of the gain for distributions for the current fiscal period and use the

rest to improve and stabilize future distributions by internally retaining it through the utilization of tax loss carried

forward, etc.

As described above, the Investment Corporation believes that the Transaction will result in the enhancement of

unitholder value through an improvement of the quality and income of the portfolio and the expansion of resources

for distributions. The Investment Corporation will continue to aim for securing the steady growth of assets under

management and stable medium- to long-term profits by working to improve the profitability and quality of the

portfolio from the perspective of enhancing the unitholder value.

Please see “3. Details of the asset to be acquired” for the overview of the property to be acquired and “4. Details

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of the asset to be transferred” for the overview of the property to be transferred.

3．Details of the asset to be acquired

The characteristics of the property to be acquired are as per below.

（1）Of-45 KABUTO-CHO UNI-SQUARE

Location

・The property to be acquired is located about a four-minute walk from Kayabacho Station of the Hibiya Line

and the Tozai Line of the Tokyo Metro, about a five-minute walk from Hacchobori Station of the JR Keiyo

Line and the Hibiya Line of the Tokyo Metro and about a 13-minute walk from Tokyo Station where several

lines intersect, therefore multiple train lines are available. In addition, the property offers excellent access

to not only main areas in Tokyo but also wide-ranging areas including other regions by Shinkansen and car,

due to proximity to main roads such as Eitai Dori, Showa Dori and the inner Circular Route.

・Nihonbashi Kabutocho, where the property to be acquired is located, has been developing as a financial

district where the securities industry centered on the Tokyo Stock Exchange, the futures trading industry

centered on the Tokyo Commodity Exchange in Nihonbashi Horidomecho, and related companies and

industry groups and peripheral industries have collected since early times. Recently, the redevelopment of

large buildings has also progressed because the Tokyo Metropolitan government announced policy of

developing the area from Otemachi to Nihonbashi Kabutocho as a financial hub by establishing the

International Financial City Tokyo vision for a special financial business zone. For this reason, in the

Acquisition area, it is possible to anticipate the expansion of new demand and the development of the

neighborhood associated with progress in the special business zone projects and redevelopment projects in

Kabutocho, in addition to conventional stable office demand.

Building

・While the property to be acquired is a building completed in 1993, it has reasonable competitiveness, given

that the new supply of properties of a similar size is limited in this area and that buildings supplied before

2000 make up a majority.

・The rentable floor area on the standard floor) in the office portion is about 108 tsubo and able to meet

various kinds of demand because it is dividable. In addition, the property has specifications and equipment

levels that meet tenant needs, including a ceiling height of about 2.6 meters, individual air-conditioning

and OA floors.

Property number / Property name Of-45 KABUTO-CHO UNI-SQUARE

Type of asset Trust beneficial interest in real estate

Location (Note 1)

(Building address on real estate registry)

21-7 Nihonbashi Kabutocho, Chuo-ku, Tokyo

(Lot Number)

226-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo (5 lots)

Land

Form of ownership Share Ownership

Area (Note 1) Total Area 646.36 m2

Share Ownership 406.55 m2

Use district (Note 2) Commercial district

Building coverage ratio(Note 3) 80%

Floor area ratio (Note 4) 600%

Building

Form of ownership (Note 5) Classification ownership (Partially shared)

Use (Note 1) Office, Parking, Storage

Structure/Floors (Note 1) Steel-framed reinforced concrete with flat roof, 1 floor below ground and 8

floors above ground

Total floor space (Note 5) Total Floor Space 4,229.47 m2

Proprietary area 1,828.48 m2

Construction

completion date (Note 1) March 31, 1993

Construction client Kato real estate corporation, Ishikawajima-Harima Heavy Industries Co.,Ltd.

(Current name: IHI Corporation)

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Constructor Toda Okumura Joint Venture

Architect TODA CORPORATION first-class architect office

Structural designer TODA CORPORATION first-class architect office

Building certification Chuo-ku, Tokyo

Property management company MITSUI FUDOSAN BUILDING MANAGEMENT CO.,LTD.

Master lease company -

Master lease type -

Collateral None

Tenant details (Note 6)

Total number of tenant 5

Total rent income 115,767 thousand yen

Leasehold and security deposits 95,510 thousand yen

Total leased floor space 1,637.17 ㎡

Total leasable floor space 1,637.17 ㎡

Occupancy rates

(Based on floor space) 100.0% (As of April 30, 2020)

NOI yield (Note 7) 4.4%

Outline of the engineering report

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

Survey date April 8, 2020

Replacement value(Note 8) 606,870 thousand yen

Probable Maximum Loss (PML) 5.9%

Long-term repairs

(next 15years) (Note 8) 85,100 thousand yen

Overview of real estate

appraisal report

Appraiser Daiwa Real Estate Appraisal Co., Ltd.

Value date April 30, 2020

Appraisal value 2,260,000 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.

(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) “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.

(Note 5) Of the building, the portion to be acquired by the Investment Corporation is the fourth floor (474.12 m2), the fifth through the eight

floors (1,394.68 m2) and the garage portion of the first basement and the first floor (388.05 m2) of the property to be acquired, and the

ratio of interest in the building is 58.07% of the entire building. The ratio of interest is rounded to the nearest two decimal places.

(Note 6) Figures in “Tenant details” are as of April 30, 2020. 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 April 30, 2020., based on lease agreements concluded between the trustee and end tenants, with amounts below

a thousand yen round off. For the 4th floor, the total rent income obtained by co-ownership interest ratio of 59.8% is shown.

(Note 7) “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.

(Note 8) The replacement value and long-term repairs costs for the co-ownership interest to be acquired in the engineering report are stated.

4. Details of the asset to be transferred

Property number / Property name Re-15 HF AZABUJUBAN RESIDENCE

Type of asset Trust beneficial interest in real estate

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Location (Note 1)

(Building address on real estate registry)

3-3-4 Higashi-azabu, Minato-ku, Tokyo

(Lot Number)

3-3-4 Higashi-azabu, Minato-ku, Tokyo

Land

Form of ownership Ownership

Area (Note 1) 499.24 ㎡

Use district (Note 2) Category 1 residential district

Building coverage ratio (Note 3) 60%

Floor area ratio (Note 4) 300%

Building

Form of ownership Ownership

Use (Note 1) Residence

Structure/Floors (Note 1) Reinforced concrete with flat roof, 8 floors above ground.

Total floor space (Note 1) 1,225.85 ㎡

Construction

completion date (Note 1) January 12, 2005

Transfer value 1,450,000 thousand yen

Book value (Note 5) 1,093,613 thousand yen

Difference between transfer value and book

value (Note 6) 356,386 thousand yen

Tenant details (Note 7)

Total Leasable Units 29 units

Total Leased Units 29 units

Total rent income 66,384 thousand yen

Leasehold and security deposits 7,732 thousand yen

Total leased floor space 1,116.78 ㎡

Total leasable floor space 1,116.78 ㎡

Occupancy rates Nov. 2017 May 2018 Nov. 2018 May 2019 Nov.2019

100.0% 100.0% 97.1% 100.0% 96.2%

Overview of Real Estate

Appraisal Report

Appraiser Chuo Real Estate Appraisal Co.,Ltd.

Value Date November 30, 2020

Appraisal Value 1,300,000 thousand yen

Other items of special note

・Cyanogen was detected in the southwestern part of the trust land, but

decontamination work including backfilling with clean soil after removing

polluted soil was completed on March 25, 2005 in accordance with the Soil

Contamination Countermeasures Act. The building condition survey report

prepared by Tokyo Bldg-Tech Center Co., Ltd. on March 28, 2005 has

determined that the possibility of soil contamination on the trust land is

extremely low, given that (1) Decontamination has been completed and the

soil contaminated with cyanogen has been removed and (2) hazardous

substances were not detected in additional land surveys on other portions of

the property.

(Note 1) “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.

(Note 4) “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.

(Note 5) “Book value” is estimated amount as of April 30, 2020. Furthermore, amounts below a thousand yen have been rounded off.

(Note 6) “Difference between transfer value and book value” represents the pro forma value calculated as the difference between the

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estimated transfer value and book value. It differs from the actual gain (loss) on transfer.

(Note 7) Figures in “Tenant details” are as of April 30, 2020. 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 April 30, 2020, based on the lease agreements or sub-leasing agreements concluded between the trustee or the

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

5. Overview of the seller and the transferee

(The property to be acquired) Of-45 KABUTO-CHO UNI-SQUARE

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.

(The property to be transferred) Re-15 HF AZABUJUBAN RESIDENCE

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

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

Management Company.

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

(The property to be acquired) Of-45 KABUTO-CHO UNI-SQUARE

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

Company or the Asset Management Company.

7. Broker Profile

(The property to be acquired) Of-45 KABUTO-CHO UNI-SQUARE

None

(The property to be transferred) Re-15 HF AZABUJUBAN RESIDENCE

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.

8. Method of Settlement

Please refer to the aforementioned “1. Overview of the transaction.”

9. Schedule for the acquisition and the transfer

Please refer to the aforementioned “1. Overview of the transaction.”

10. Outlook

For the impact of the transaction on the management status forecast for the fiscal period ending May 2020 (37th Fiscal

period) and the fiscal period ending November 2020 (38th Fiscal period) published in the 36th Fiscal Period Financial

Report dated January 16, 2020 is minor, and the management status forecasts will remain unchanged.

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11. Overview of the appraisal report (Properties to be acquired)

Property number / Property name Of-45 KABUTO-CHO UNI-SQUARE

Appraisal value 2,260,000 thousand yen

Appraiser Daiwa Real Estate Appraisal Co., Ltd

Value date April 30, 2020

Item

Content

(1,000

yen)

(Note)

Overview, etc.

Value 2,260,000 Estimated combining the indicated value by DCF method and direct

capitalization method.

Value indicated by the income

approach (direct capitalization

method)

2,340,000

Effective gross income 131,323

Potential total profits 138,092

Assessment made after taking into account the medium- to long-term

competitiveness of the target real estate based on rent levels of the current

contract, new rent levels of comparable real estate within the same demand zone and their trends

Losses from vacancies,

etc. 6,768

Assessment made based on actual vacancy rates of the target real estate and the standard vacancy rate of comparable real estate

Operating expenses 38,334

Management fees 10,697 Posted after referring to actual costs as well as taking into account the

management fees of comparable real estate.

Property Management fee 6,308 Assessment based on contract terms

Utilities expenses 5,943 Posted based on utilities expenses in past fiscal years after taking the vacancy

rate into account.

Maintenance and repair

cost 522

Posted by determining that the annual average maintenance and repair cost

written in the engineering report is reasonable.

Tenant advertisement

expenses, etc. 1,029

Assessment based on the tenant advertisement expenses for comparable real

estate, etc.

Public charges and taxes 11,937 Assessment based on actual payments.

Casualty insurance

premiums 303

Assessed to be an amount equivalent, equivalent to interest in the replacement cost, in reference to the insurance premiums of comparable real estate.

Other expenses 1,593 Posted as a contingency expenses.

Net operating income (NOI) 92,989

Interest on lump-sum

payments 1,210 Assessed the investment yield at 1.0%.

Capital expenditures 5,351 Of the repair and renewal expenses stated in the engineering report, 15-year average value and construction management fee of large-scale repair

expenses and renewal expense part were recorded.

Net cash flow (NCF) 88,848

Capitalization rate 3.8％ Assessment made after comprehensively taking into account criteria of the location building and other factors of the target real estate as well as examples

of transactions of comparable real estate.

Value indicated by the income

approach (discounted cash flow

method)

2,230,000

Discount rate 3.6％

Assessment made by comparing with the discount rate related to the transactions of comparable real estate, investment yields of other financial

products.

Terminal capitalization rate 4.0％ Assessment made after taking into account the marketability of the target real

estate upon the expiration of the holding period.

Value indicated by the cost approach

using the cost accounting method 2,400,000

Percentage of land 92.8％

Percentage of building 7.2％

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.

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12. Overview of the appraisal report (Property to be transferred)

Property number / Property name Re-15 HF AZABUJUBAN RESINDENCE

Appraisal value 1,300,000 thousand yen

Appraiser Chuo Real Estate Appraisal Co.,Ltd.

Value date November 30, 2019

Item

Content

(1,000 yen)

(Note) Overview, etc.

Value 1,300,000 Assessed by placing emphasis on indicated value by the DCF method and linking indicated value by the direct capitalization

method.

Value indicated by the income

approach (direct capitalization

method)

1,310,000

Effective gross income 67,435

Potential total profits 70,104 New rents are assessed taking into account current rent levels and the rent levels of comparable real estate.

Losses from vacancies,

etc. 2,669

Assessed taking into account actual occupancy rates of the target

real estate and comparable real estate, the forecast for the future

market trends and stable occupancy rates over the medium to long term.

Operating expenses 11,449

Management fees 2,747 Assessed taking into account past expenses and expense levels of

comparable real estate based on the conditions of the current BM contract.

Property Management fee 1,304 Sum of the property management fee and the construction

management fee is posted.

Utilities expenses 780 Assessed taking into account the expenses of comparable real estate based on past results.

Maintenance and repair

cost 1,191

Sum of small-scale repairs and maintenance costs and costs for

restoration to original state is posted.

Tenant advertisement

expenses, etc. 1,571

Sum of brokerage commissions, advertising expenses and renewal commissions is posted.

Public charges and taxes 3,607 Assessment based on actual payments.

Casualty insurance

premiums 75 Assessment based on actual payments.

Other expenses 174 Assessment based on actual payments

Net operating income (NOI) 55,986

Interest on lump-sum payments 103 Assessed the investment yield at 1.0%.

Capital expenditures 2,305 Annual average amount of estimated renewal costs based on the engineering report is posted.

Net cash flow (NCF) 53,784

Capitalization rate 4.1％ Assessed individually considering locational conditions, building

specifications and rights of the target real estate in reference to returns on investment in transactions of comparable real estate.

Value indicated by the income

approach (discounted cash flow

method)

1,290,000

Discount rate 3.9％

Assessment made by comparing with the discount rate related to

the transactions of comparable real estate, investment yields of other financial products.

Terminal capitalization rate 4.3％ Assessment made after taking into account the marketability of

the target real estate upon the expiration of the holding period.

Value indicated by the cost approach using

the cost accounting method 1,130,000

Percentage of land 84.1％

Percentage of building 15.9％

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.

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

【Attachment】

(Attachment 1) Pictures and maps of the assets to be acquired

(Attachment 2) Portfolio list after the property transaction

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【Attachment】

(Attachment 1) Pictures and maps of the assets to be acquired

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<MAP>

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(Attachment 2) Portfolio list after the property transaction

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 0.87

Of-06 HF MONZENNAKACHO BUILDING Koto-ku, Tokyo I 2,500 1.40

Of-07 HF HAMAMATSUCHO BUILDING Minato-ku, Tokyo I 1,530 0.86

Of-08 HF TAMEIKE BUILDING Minato-ku, Tokyo I 2,700 1.51

Of-09 GRACE BUILDING SENGAKUJIMAE Minato-ku, Tokyo I 1,220 0.68

Of-11 HF NIHONBASHI ODENMACHO

BUILDING Chuo-ku, Tokyo I 2,150 1.20

Of-12 HF HATCHOBORI BUILDING Chuo-ku, Tokyo I 3,092 1.73

Of-17 HATCHOBORI MF BUILDING Chuo-ku, Tokyo I 1,110 0.62

Of-18 M2 HARAJUKU Shibuya-ku, Tokyo I 3,418 1.91

Of-20 FUNABASHI FACE BUILDING Funabashi City, Chiba II 3,900 2.18

Of-21 ADESSO NISHIAZABU Minato-ku, Tokyo I 640 0.36

Of-23 HF IKEBUKURO BUILDING Toshima-ku, Tokyo I 1,314 0.73

Of-24 HF YUSHIMA BUILDING Bunkyo-ku, Tokyo I 1,624 0.91

Of-25 KAYABACHO HEIWA BUILDING Chuo-ku, Tokyo I 4,798 2.68

Of-27 KOBE KYUKYORYUCHI HEIWA

BUILDING Kobe City, Hyogo III 2,310 1.29

Of-29 SAKAE MINAMI BUILDING Nagoya City, Aichi III 1,580 0.88

Of-30 HF SAKURADORI BUILDING Nagoya City, Aichi III 4,900 2.74

Of-31 HF NIHONBASHI HAMACHO

BUILDING Chuo-ku, Tokyo I 1,900 1.06

Of-32 HF SENDAI HONCHO BUILDING Sendai City, Miyagi III 2,700 1.51

Of-33 HF UENO BUILDING Taito-ku, Tokyo I 3,400 1.90

Of-34 KOJIMACHI HF BUILDING Chiyoda-ku, Tokyo I 1,350 0.76

Of-35 HF KUDAN MINAMI BUILDING Chiyoda-ku, Tokyo I 2,720 1.52

Of-36 HF KANDA OGAWAMACHI

BUILDING Chiyoda-ku, Tokyo I 3,150 1.76

Of-37 NISSO 5 BUILDING Yokohama City,

Kanagawa II 3,100 1.73

Of-38 ACROSS SHINKAWA BUILDING Chuo-ku, Tokyo I 3,250 1.82

Of-39 SENJU MILDIXⅡBANKAN Adachi-ku, Tokyo I 1,650 0.92

Of-40 ARK Mori Building Minato-ku, Tokyo I 3,085 1.73

Of-41 Nihonbashi Horidomecho First Chuo-ku, Tokyo I 2,140 1.20

Of-42 Southern Sky Tower Hachioji Hachioji City, Tokyo II 1,600 0.89

Of-43 HAMACHO HEIWA BUILDING Chuo-ku, Tokyo I 3,100 1.73

Of-44 KINSICHO SQUARE BUILDING Sumida-ku, Tokyo I 2,840 1.59

Of-45 KABUTO-CHO UNI-SQUARE Chuo-ku, Tokyo I 2,100 1.17

Office Subtotal 76,321 43.86

Resid

ence

Re-03 HF ICHIKAWA RESIDENCE Ichikawa City, Chiba II 430 0.24

Re-05 HF MEGURO RESIDENCE Meguro-ku, Tokyo I 660 0.37

Re-09 HF KASAI RESIDENCE Edogawa-ku, Tokyo I 650 0.36

Re-11 HF WAKABAYASHI-KOEN

RESIDENCE Setagaya-ku, Tokyo I 3,610 2.02

Re-12 HF HIMONYA RESIDENCE Meguro-ku, Tokyo I 1,560 0.87

Re-14 HF MINAMIAZABU RESIDENCE Minato-ku, Tokyo I 1,370 0.77

Re-15 HF AZABUJUBAN RESIDENCE Minato-ku, Tokyo I - -

Re-16 HF GAKUGEIDAIGAKU

RESIDENCE Meguro-ku, Tokyo I 1,000 0.56

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Property

No. Property Name Location

Investment

Area (Note 1)

Acquisition Price

(million yen)

(Note 2)

Investment

Ratio

(Note 2) (%)

Re-17 HF HIGASHIKANDA RESIDENCE Chiyoda-ku, Tokyo I 1,100 0.62

Re-18 HF HIGASHINIHONBASHI

RESIDENCE Chuo-ku, Tokyo I 1,210 0.68

Re-19 HF NERIMA RESIDENCE Nerima-ku, Tokyo I 690 0.39

Re-20 HF SHIROKANETAKANAWA

RESIDENCE Minato-ku, Tokyo I 4,030 2.25

Re-21 HF MEIDAIMAE RESIDENCE Setagaya-ku, Tokyo I 1,070 0.60

Re-22 HF NIHONBASHI RESIDENCE Chuo-ku, Tokyo I 1,130 0.63

Re-23 HF KAMISHAKUJII RESIDENCE Nerima-ku, Tokyo I 950 0.53

Re-24 HF KINSHICHO RESIDENCE Sumida-ku, Tokyo I 1,100 0.62

Re-25 HF GINZA RESIDENCE EAST Chuo-ku, Tokyo I 5,940 3.32

Re-26 HF SHIN-YOKOHAMA RESIDENCE Yokohama City,

Kanagawa II 3,350 1.87

Re-29 HF HAKUSAN RESIDENCE Bunkyo-ku, Tokyo I 2,350 1.31

Re-30 HF MAGOME RESIDENCE Ota-ku, Tokyo I 1,630 0.91

Re-31 HF GAKUGEIDAIGAKU

RESIDENCE II Meguro-ku, Tokyo I 1,650 0.92

Re-33 HF KAMEIDO RESIDENCE Koto-ku, Tokyo I 1,050 0.59

Re-34 HF TANASHI RESIDENCE Nishi-tokyo City,

Tokyo II 911 0.51

Re-35 HF SHIBA-KOEN RESIDENCE Minato-ku, Tokyo I 836 0.47

Re-36 HF MITA RESIDENCE Minato-ku, Tokyo I 1,080 0.60

Re-37 HF TAKANAWA RESIDENCE Minato-ku, Tokyo I 749 0.42

Re-38 LA RESIDENCE DE

SHIROKANEDAI Minato-ku, Tokyo I 730 0.41

Re-39 HF GINZA RESIDENCE EAST II Chuo-ku, Tokyo I 1,460 0.82

Re-40 HF HATCHOBORI RESIDENCE II Chuo-ku, Tokyo I 1,890 1.06

Re-41 HF HATCHOBORI RESIDENCE III Chuo-ku, Tokyo I 793 0.44

Re-42 HF GINZA RESIDENCE Chuo-ku, Tokyo I 944 0.53

Re-43 HF KOMAZAWA-KOEN

RESIDENCE TOWER Setagaya-ku, Tokyo I 6,520 3.65

Re-44 HF UMEDA RESIDENCE TOWER Osaka City, Osaka III 1,920 1.07

Re-45 HF NAKANOSHIMA RESIDENCE Osaka City, Osaka III 453 0.25

Re-46 HF AWAZA RESIDENCE Osaka City, Osaka III 577 0.32

Re-47 HF MARUNOUCHI RESIDENCE Nagoya City, Aichi III 624 0.35

Re-48 HF HIRAO RESIDENCE Fukuoka City, Fukuoka III 1,780 1.00

Re-49 HF KAWARAMACHI NIJO

RESIDENCE Kyoto City, Kyoto III 534 0.30

Re-53 HF SHIJYO KAWARAMACHI

RESIDENCE Kyoto City, Kyoto III 1,820 1.02

Re-54 LA RESIDENCE DE SENDAGI Bunkyo-ku, Tokyo I 820 0.46

Re-55 HF SENDAGI RESIDENCE Bunkyo-ku, Tokyo I 870 0.49

Re-56 HF KOMAZAWA-KOEN

RESIDENCE Setagaya-ku, Tokyo I 615 0.34

Re-57 HF MUSASHIKOYAMA

RESIDENCE Shinagawa-ku, Tokyo I 842 0.47

Re-58 HF KOKUBUNJI RESIDENCE Kokubunji City, Tokyo II 839 0.47

Re-59 HF HISAYAODORI RESIDENCE Nagoya City, Aichi III 1,080 0.60

Re-60 HF KARASUMA KURAMAGUCHI

RESIDENCE Kyoto City, Kyoto III 572 0.32

Re-61 HF NISHI-SHINJUKU RESIDENCE

WEST Shinjuku-ku, Tokyo I 1,990 1.11

- 14 -

Property

No. Property Name Location

Investment

Area (Note 1)

Acquisition Price

(million yen)

(Note 2)

Investment

Ratio

(Note 2) (%)

Re-62 HF NISHI-SHINJUKU RESIDENCE

EAST Shinjuku-ku, Tokyo I 1,170 0.65

Re-63 HF HIGASHI-SHINJUKU

RESIDENCE Shinjuku-ku, Tokyo I 1,360 0.76

Re-64 HF HIGASHI-SHINSAIBASHI

RESIDENCE Osaka City, Osaka III 566 0.32

Re-65 HF KITA-YOBANCHO RESIDENCE Sendai City, Miyagi III 809 0.45

Re-66 HF ATAGOBASHI RESIDENCE Sendai City, Miyagi III 684 0.38

Re-67 HF KYUDAIBYOIN-MAE

RESIDENCE Fukuoka City, Fukuoka III 426 0.24

Re-68 HF ASAKUSABASHI RESIDENCE Taito-ku, Tokyo I 771 0.43

Re-69 HF ICHIBANCHO RESIDENCE Sendai City, Miyagi III 834 0.47

Re-70 HF HIGASHI-NAKANO RESIDENCE Nakano-ku, Tokyo I 942 0.53

Re-72 HF WASEDA RESIDENCE Shinjuku-ku, Tokyo I 2,090 1.17

Re-73 HF WASEDA RESIDENCE II Shinjuku-ku, Tokyo I 872 0.49

Re-74 HF WAKAMATSU KAWATA

RESIDENCE Shinjuku-ku, Tokyo I 1,158 0.65

Re-75 HF SENDAI RESIDENCE EAST Sendai City, Miyagi III 1,638 0.92

Re-76 HF NISHIKOEN RESIDENCE Sendai City, Miyagi III 1,310 0.73

Re-77 HF BANSUI-DORI RESIDENCE Sendai City, Miyagi III 790 0.44

Re-78 HF KANNAI RESIDENCE Yokohama City,

Kanagawa II 1,800 1.01

Re-79 HF MEIEKI-KITA RESIDENCE Nagoya City, Aichi III 2,160 1.21

Re-80 HF HIGASHI-SAPPORO

RESIDENCE

Sapporo City,

Hokkaido III 1,560 0.87

Re-81 HF HAKATA-HIGASHI

RESIDENCE Fukuoka City, Fukuoka III 880 0.49

Re-82 HF SENDAI ITSUTSUBASHI

RESIDENCE Sendai City, Miyagi III 850 0.48

Re-83 HF TABATA RESIDENCE Kita-ku, Tokyo I 1,100 0.62

Re-84 HF RYOGOKU RESIDENCE Sumida-ku, Tokyo I 1,400 0.78

Re-85 HF HACHIOJI RESIDENCE Hachioji City, Tokyo II 1,120 0.63

Re-86 HF MITA RESIDENCE II Minato-ku, Tokyo I 1,210 0.68

Re-87 HF MONZEN-NAKACHO

RESIDENCE Koto-ku, Tokyo I 945 0.53

Re-88 HF MINAMI-SUNAMACHI

RESIDENCE Koto-ku, Tokyo I 900 0.50

Re-89 HF SENDAI NAGAMACHI

RESIDENCE Sendai City, Miyagi III 1,030 0.58

Re-90 HF SHOKOJI AKABANE RESIDENCE Kita-ku, Tokyo I 1,150 0.64

Re-91 HF SENDAI HONCHO RESIDENCE Sendai City, Miyagi III 1,070 0.60

Residence Subtotal 100,375 56.14

Portfolio Total 178,796 100.00

(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.