Real Estate Investment Trust Securities Issuer: Comforia ... · partnership equity interests of Godo Kaisha RB-1. （Note 3） Tokyu Land Corporation, the parent company (ownership

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July 11, 2013 For Immediate Release

Real Estate Investment Trust Securities Issuer: Comforia Residential REIT, Inc

1-16-3 Dogenzaka, Shibuya-ku, Tokyo Hiroyuki Tohmata, Executive Director

(Code: 3282)

Asset Management Company: TLC Comforia Investment Management INC.

Hiroyuki Tohmata, President & CEO Inquires:

Nobuhide Kashiwagi, Director and Finance & Accounting department

(TEL: +81-3-6415-6200)

Notice Concerning Acquisition of Investment Assets

(Anonymous Partnership Equity Interests)

Comforia Residential REIT, Inc (“Investment Corporation”) announced its decision to acquire the investment

assets (anonymous partnership equity interests) as shown below. 1．Summary of Acquisition

(1) Type of asset to be acquired Equity interest in anonymous partnership investing the beneficial interest in real estate trust

(2) Name of asset to be acquired Godo Kaisha RB-1 anonymous partnership equity interests

(3) Real estate in trust

COMFORIA KUDAN COMFORIA MITA EAST COMFORIA UENOHIROKOJI COMFORIA KASUGATOMISAKA COMFORIA LIV KIBAKOEN COMFORIA ICHIGAYAYANAGICHO COMFORIA KAGURAZAKA OZIO SHINKAWA OZIO MORISHITA

(4) Investment amount 100 million yen (About 2.3% of total anonymous partnership equity interests) (5) Scheduled agreement date July 16, 2013 (6) Scheduled acquisition date July 16, 2013 (7) Acquisition funds Own funds

2. Reason for the Acquisition

Based on the asset management target and investment policy of the Articles of Investment Corporation, the decision to acquire the anonymous partnership equity interests was made to secure opportunity to acquire superior properties through investing in the anonymous partnership equity interests and ensure steady growth of the entire portfolio and stable revenues.

Through this acquisition, Investment Corporation will receive dividends of profits as capital to rental revenues, etc in each beneficial interest in real estate trust from Godo Kaisha RB-1, the operator of the anonymous partnership. In addition, Investment Corporation will be granted first refusal rights for the acquisition of the beneficial interest in real estate trust through this acquisition. (for details, please refer to “3．Summary of Asset to be Acquired – (1) Overview of anonymous partnership to be invested –” ) However, The rights are granted as an authority and the acquisition of anonymous partnership equity interests does not place an obligation on Investment Corporation to acquire the beneficial interest in real estate trust.

The following points were assessed with respect to the beneficial interest in real estate on decision to acquire the anonymous partnership equity interests.

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Property Name Property Characteristics

COMFORIA KUDAN

This property is a rental residence comprising compact-type rooms located a 7-minute walk from Kudanshita Station on the Tokyo Metro Tozai Line, Hanzomon Line and Toei Shinjuku Line and a 9-minute walk from Ichigaya Station on the JR Chuo-Sobu Local Line, Tokyo Metro Namboku Line and one other line. As 2 stations and 5 lines are available, taking approximately 4 minutes to Otemachi Station and approximately 8 minutes to Shinjuku Station, it has very good access to major business and commercial zones. This area is convenient with proximity to Chidorigafuchi, which are renowned Tokyo sites for cherry blossom viewing, and has convenience stores, eating and drinking establishments, etc. in the local area. Given these characteristics, solid rental demand, mainly from single persons and DINKS families focusing on the comfort and convenience of the city-center location and residential environment, etc. is expected for this property.

COMFORIA MITA EAST

This property is a rental residence comprising single-type and compact-type rooms located a 8-minute walk from Tamachi Station on the JR Yamanote Line and Keihin-Tohoku Line and a 5-minute walk from Mita Station on the Toei Mita Line and Asakusa Line. As 2 stations and 4 lines are available, taking approximately 6 minutes to Tokyo Station and approximately 7 minutes to Hibiya Station, it has very good access to major business and commercial zones. There are supermarkets, convenience stores and eating and drinking establishments, etc. in the local area, so solid rental demand mainly from single persons and DINKS families focusing on the convenience of the city-center location and residential environment, etc. is expected for this property.

COMFORIA UENOHIROKOJI

This property is a rental residence principally comprising compact-type rooms as well as single-type rooms etc. located a 3-minute walk from Ueno-hirokoji Station on the Tokyo Metro Ginza Line and a 4-minute walk from Okachimachi Station on the JR Yamanote Line, Keihin-Tohoku Line and one other line and a 3-minute walk from Yushima Station on the Tokyo Metro Chiyoda Line. As 3 stations and 5 lines are available, taking approximately 5 minutes to Otemachi Station and approximately 1 minute to Ueno Station, it has good access to major business and commercial zones. The Ueno and Okachimachi area, which is within walking distance, is a major commercial area formed by Ameya Yokocho, a famous street in Japan, department stores, retail stores and eating and drinking establishments. Given these characteristics, solid rental demand mainly from single persons and DINKS families focusing on proximity to the city center and a convenient residential environment, etc. is expected for this property.

COMFORIA KASUGATOMISAKA

This property is a rental residence principally comprising single-type rooms and compact-type rooms located a 6-minute walk from Korakuen Station on the Tokyo Metro Marunouchi Line and Namboku Line and a 6-minute walk from Kasuga Station on the Toei Mita Line and Oedo Line. As 2 stations and 4 subway lines are available, taking approximately 6 minutes to Otemachi Station and approximately 11 minutes to Ginza Station, it has good access to major business and commercial zones. The peaceful environment is formed by many educational facilities, and there are supermarkets, convenience stores and eating and drinking establishments, etc. in the local area, so solid rental demand mainly from single persons and DINKS families focusing on proximity to the city center and a comfortable, convenient residential environment, etc. is expected for this property.

COMFORIA LIV KIBAKOEN

This property is a rental residence comprising single-type rooms located a 4-minute walk from Kiba Station on the Tokyo Metro Tozai Line. Taking approximately 8 minutes to Otemachi Station and approximately 6 minutes to Ginza Station, it has good access to major business and commercial zones. It is closed to Kiba Park, which features the Museum of Contemporary Art, and there are convenient facilities such as supermarkets, convenience stores and eating and drinking establishments, etc. in the local area, so solid rental demand mainly from single persons focusing on proximity to the city center and a comfortable residential environment, etc. is expected for this property.

COMFORIA ICHIGAYAYANAGICHO

This property is a rental residence principally comprising single-type rooms as well as compact-type rooms etc. located a 3-minute walk from Ushigome-yanagicho Station on the Toei Oedo Line and a 9-minute walk from Akebonobashi Station on the Toei Shinjuku Line. As 2 stations and 2 subway lines are available, taking approximately 4 minutes to Iidabashi Station and approximately 3 minutes to Shinjuku Station, it has good access to major business and commercial zones. It is located in the shopping district centered around Ushigome-yanagicho Station extending along the Gaien-higashi street, and there is a convenience store as a tenant on the first floor along with many other convenient facilities such as supermarkets and eating and drinking establishments, etc. in the local area. Consequently, solid rental demand mainly from single persons and DINKS families focusing on proximity to the city-center and a convenient residential environment, etc. is expected for this property.

COMFORIA KAGURAZAKA

This property is a rental residence principally comprising single-type rooms as well as compact-type rooms located a 2-minute walk from Ushigome-kagurazaka Station on the Toei Oedo Line and a 5-minute walk from Kagurazaka Station on the Tokyo Metro Tozai Line and a 8-minute walk from Iidabashi Station on the JR Chuo-Sobu Local Line, Tokyo Metro Yurakucho Line and 2 other

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Net assets including anonymous partnership

equity interests 4,300 million yen

lines. As 3 stations and 5 lines are available, taking approximately 8 minutes to Otemachi Station and approximately 10 minutes to Yurakucho Station, it has good access to major business and commercial zones. It is located in one of the most popular areas in Tokyo, and this area is convenient with many eating and drinking establishments, etc., such as Kagurazaka shopping district. Given these characteristics, rental demand mainly from single persons and DINKS families focusing on proximity to the city-center and a convenient residential environment, etc. is expected for this property.

OZIO SHINKAWA

This property is a rental residence principally comprising compact-type rooms located a 5-minute walk from Hatchobori Station on the JR Keiyo Line and Tokyo Metro Hibiya Line and a 7-minute walk from Kayabacho Station on the Tokyo Metro Tozai Line and one other line. As 2 stations and 3 lines are available, taking approximately 1 minute to Tokyo Station and approximately 6 minutes to Ginza Station, it has good access to major business and commercial zones. This area is convenient with proximity to advanced commercial accumulation areas such as Tokyo and Ginza, as well as supermarkets, convenience stores and eating and drinking establishments, etc. in the local area. Given these characteristics, solid rental demand mainly from single persons and DINKS families focusing on proximity to the city-center and a convenient residential environment, etc. is expected for this property.

OZIO MORISHITA

This property is a rental residence principally comprising single-type rooms located a 1-minute walk from Morishita Station on the Toei Shinjuku Line and Oedo Line and a 10-minute walk from Kiyosumi-shirakawa Station on the Tokyo Metro Hanzomon Line and one other line. As 2 stations and 3 subway lines are available, taking approximately 8 minute to Otemachi Station and approximately 13 minutes to Shiodome Station, it has good access to major business and commercial zones. Access to the Tokyo area, the Shiodome area and the Shinjuku area, etc. is excellent and there are convenience stores and eating and drinking establishments, etc. in the local area. Given these characteristics, solid rental demand mainly from single persons and DINKS families focusing on proximity to the city-center and a convenient residential environment, etc. is expected for this property.

3. Summary of Asset to be Acquired (1) Overview of anonymous partnership to be invested

Name of operator Godo Kaisha RB-1 Anonymous partnership agreement valid until（Planned）

July 17, 2015

Total amount of net assets including anonymous partnership equity interests

4,300 million yen

Overview of anonymous partnership agreement

The following is an overview of the investment in the anonymous partnership.

（Note 1） The acquisition costs of the beneficial interest in real estate trust and the formulation costs of the anonymous partnership are included in the beneficial interest in real estate trust and other assets. The total appraised value of the Beneficial Interest in Real Estate Trust and other assets is 15,742 million yen.

（Note 2） Investment Corporation is scheduled to invest 100 million yen (2.3%) of the total anonymous partnership equity interests of Godo Kaisha RB-1.

（Note 3） Tokyu Land Corporation, the parent company (ownership of 100%) of the Asset Management Company of Investment Corporation, is scheduled to invest part of the total anonymous partnership equity interests of Godo Kaisha RB-1.

（Note 4） The asset management of Godo Kaisha RB-1 is entrusted to Tokyu Land Capital Management Inc. (“TLCM”). TLCM is interested party etc. of the Asset Management Company of Investment Corporation under the Act on Investment Trusts and the Investment Corporations (“Interested Party, etc.”).

Godo Kaisha RB-1

Beneficial Interest in Real Estate Trust and other assets 15,600 million yen

Non-recourse loan 11,300 million yen

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Calculation period： The following three months each year: January 1 to March 31; April 1 to June 30; July 1 to September 30; October 1 to December 31. However, the first calculation period will be from the due date of first execution of equity investment to the end of September, 2013.

Distribution profits and losses： The profit for each calculation period will be distributed, if any, by the operator to the anonymous partnership equity interests holders according to their investment ratio on the last day of the relevant calculation period. The losses for each calculation periods will be distributed, if any, by the operator to the anonymous partnership equity interests holders according to their investment ratio on the last day of each calculation period, where the maximum liability is the amount of loss for the relevant period. However, if the total amount of losses distributed to the anonymous partnership equity interest holders exceeds the total equity interests, the excess losses will be distributed to the operator.

Other

① Overview of the first refusal rights granted through the acquisition of anonymous partnership equity interests

② Appraisal NOI yield (Note) 5.2%

(Note) Appraisal NOI yield is calculated as the total amount of the Net Operating Income (NOI) applied in the direct capitalization method in appraisal reports of each property divided by the total amount of the acquisition price.（excluding consumption tax rate of 5%）

Description of the first refusal rights

The first refusal rights valid until July 17, 2015 for the acquisition of real estate in trust or its beneficial interest scheduled to be acquired by the operator on July 17, 2013 (see (2) below).

Minimum acquisition price

Total 15,461 million and 850 thousand yen. (including consumption tax) Price breakdown:

COMFORIA KUDAN 1,304,100 thousand yen

COMFORIA MITA EAST 3,262,800 thousand yen

COMFORIA UENOHIROKOJI 1,069,500 thousand yen COMFORIA KASUGATOMISAKA 2,978,500 thousand yen

COMFORIA LIV KIBAKOEN 981,850 thousand yen COMFORIA ICHIGAYAYANAGICHO 1,657,300 thousand yen

COMFORIA KAGURAZAKA 750,650 thousand yen

OZIO SHINKAWA 1,883,950 thousand yen

OZIO MORISHITA 1,573,200 thousand yen

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(2) Overview of beneficial Interest in real estate trust ① COMFORIA KUDAN

Property Name COMFORIA KUDAN

Type of Asset Beneficial Interest in Real Estate Trust

Trustee of Beneficial Trust (planned) Mitsubishi UFJ Trust and Banking Corporation Expiration Date of Beneficial Trust Contract (planned) July 31, 2023

Location (Residential address) (Note 1) 2-6-12 Kudanminami, Chiyoda-ku, Tokyo

Area (Note 1) 349.35 m2 Land

Type of Ownership Ownership Completion Date (Note 1) February, 2007 Structure / Number of Floors (Note 1) RC / 13F

Gross Floor Area (Note 1) 1787.89 m2 Type of Ownership Ownership Use (Note 1) Apartment building

Building

Rentable Units 36 Unit Summary of Rental Status (as of April 30, 2013) (Note 2)

Rentable Area 1,589.22 m2 Rented Area 1,502.24 m2 Occupancy Rate 94.5%

Rentable Units 36 Units

Rented Units 34 Units Total Number of Tenants 1

Total Monthly Rent 6,355 thousand yen

Deposits, guarantees 11,388 thousand yen Summary of the Appraisal Report (Note 3)

Appraisal Company Morii Appraisal & Investment Consulting, Inc.

Appraisal Value 1,370,000 thousand yen Summary of the Earthquake Risk Analysis (Note 4) PML Reporting Company Sompo Japan Nipponkoa Risk Management Inc. PML 6.93%

Architect/Contractor/Building Permit Agency, etc. (Note 5)

Architect K.K. A・JRM Sekkei Contractor MABUCHI CONSTRUCTION Co., LTD.

Building Permit Agency Building Navigation Kakuninhyoukakikou, Inc

Special Affairs (Note 6) None ② COMFORIA MITA EAST

Property Name COMFORIA MITA EAST



Location (Residential address) (Note 1) 4-18-1 Shiba, Minato-ku, Tokyo


Type of Ownership Ownership Completion Date (Note 1) January, 2008 Building Structure / Number of Floors (Note 1) RC / B1F-13F

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Gross Floor Area (Note 1) 4,973.31 m2 Type of Ownership Ownership

Use (Note 1) Apartment building, garage Rentable Units 111 Units

Summary of Rental Status (as of April 30, 2013) (Note 2)





Deposits, guarantees 11,388 thousand yen

Summary of the Appraisal Report (Note 3)


Appraisal Value 3,300,000 thousand yen Summary of the Earthquake Risk Analysis (Note 4) PML Reporting Company Sompo Japan Nipponkoa Risk Management Inc.

PML 6.97%


Architect Mitsubishi Jisho Sekkei Inc. Contractor SHIMIZU CORPORATION

Building Permit Agency Toshijyukyohyoukacenter, Inc.

Special Affairs (Note 6) None ③ COMFORIA UENOHIROKOJI

Property Name COMFORIA UENOHIROKOJI

Type of Asset Beneficial Interest in Real Estate Trust Trustee of Beneficial Trust (planned) Mitsubishi UFJ Trust and Banking Corporation Expiration Date of Beneficial Trust Contract (planned) July 31, 2023

Location (Residential address) (Note 1) 3-17-4, Ueno, Taito-ku, Tokyo


Type of Ownership Ownership Completion Date (Note 1) November, 2007 Structure / Number of Floors (Note 1) RC / B1F-14F


Use (Note 1) Apartment building / Retail facilities

Building

Rentable Units 37 Units Summary of Rental Status (as of April 30, 2013) (Note 2) Rentable Area 1,462.39 m2 Rented Area 1,211.79 m2 Occupancy Rate 82.9%


Rented Units 31 Units

Total Number of Tenants 1

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Summary of the Appraisal Report (Note 3) Appraisal Company Morii Appraisal & Investment Consulting, Inc.

Appraisal Value 1,100,000 thousand yen

Summary of the Earthquake Risk Analysis (Note 4)

PML Reporting Company Sompo Japan Nipponkoa Risk Management Inc. PML 6.95%


Architect M.C.Architects Co., Ltd. Contractor Honma Corporation

Building Permit Agency Tokyo Bldg-Tech Center Co.,Ltd

Special Affairs (Note 6) None ④ COMFORIA KASUGATOMISAKA

Property Name COMFORIA KASUGATOMISAKA Type of Asset Beneficial Interest in Real Estate Trust


Location (Residential address) (Note 1) 1-11-17 Kasuga, Bunkyo-ku, Tokyo


Type of Ownership Ownership Completion Date (Note 1) February, 2008 Structure / Number of Floors (Note 1) RC / B1F-12F


Use (Note 1) Apartment building / Retail facilities / Parking / Bicycle parking

Building

Rentable Units 106 Units Summary of Rental Status (as of April 30, 2013) (Note 2) Rentable Area 3,527.88 m2 Rented Area 3,317.98 m2 Occupancy Rate 94.1%











Architect Urban Consultants Inc. Contractor Tokyu Construction Co., Ltd

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Building Permit Agency Jyuutakukinyufukyuukyoukai, Foundation.

Special Affairs (Note 6) None ⑤ COMFORIA LIV KIBAKOEN

Property Name COMFORIA LIV KIBAKOEN



Location (Residential address) (Note 1) 2-17-7 Kiba, Koto-ku, Tokyo


Type of Ownership Ownership Completion Date (Note 1) September, 2007 Structure / Number of Floors (Note 1) RC / 9F


Use (Note 1) Apartment building

Building

Rentable Units 60 Units Summary of Rental Status (as of April 30, 2013) (Note 2) Rentable Area 1,281.00 m2 Rented Area 1,216.95 m2 Occupancy Rate 95.0% Rentable Units 60 Units


Total Number of Tenants 1 Total Monthly Rent 5,162 thousand yen



Appraisal Value 994,000 thousand yen Summary of the Earthquake Risk Analysis (Note 4)



Architect YukishitaSekkei, Inc Contractor NISHIMATSU CONSTRUCTION CO.,LTD.

Building Permit Agency Koto-ku

Special Affairs (Note 6) None ⑥ COMFORIA ICHIGAYAYANAGICHO

Property Name COMFORIA ICHIGAYAYANAGICHO Type of Asset Beneficial Interest in Real Estate Trust


Location (Residential address) (Note 1) 18-2 Ichigayayanagicho, Shinjuku-ku, Tokyo Area (Note 1, 7) 318.34 m2

Land Type of Ownership Ownership

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Completion Date (Note 1) October, 2007 Structure / Number of Floors (Note 1) RC / 13F


Use (Note 1) Apartment building / Retail facilities

Building

Rentable Units 69 Units Summary of Rental Status (as of April 30, 2013) (Note 2) Rentable Area 2,033.51 m2 Rented Area 1,856.86 m2 Occupancy Rate 91.3% Rentable Units 69 Units






Appraisal Value 1,700,000 thousand yen Summary of the Earthquake Risk Analysis (Note 4)

PML Reporting Company Sompo Japan Nipponkoa Risk Management Inc.

PML 5.62% Architect/Contractor/Building Permit Agency, etc. (Note 5)

Architect Syu Corporation.

Contractor OKUMURA CORPORATION Building Permit Agency The Japan Building Equipment and Elevator Center Foundation

Special Affairs (Note 6)

This building, which was built in compliance with urban development requirements, is an existing non-conforming building with regards to floor area ratio at the moment, as part of the land (147.96 m2) was transferred to the Tokyo Metropolitan Government after the completion of the building, when the urban project known as the Tokyo City Planning Project Loop Road (Kanjo) No. 3 was approved for the Tokyo municipal road to the east of the land (known as Gaien-higashi street).

⑦ COMFORIA KAGURAZAKA

Property Name COMFORIA KAGURAZAKA



Location (Residential address) (Note 1) 26-1 Iwatocho, Shinjuku-ku, Tokyo

Area (Note 1, 8) 463.61 m2 Land

Type of Ownership Ownership Completion Date (Note 1) September, 2007 Structure / Number of Floors (Note 1) RC / B1F-5F


Use (Note 1) Apartment building

Building


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Summary of Rental Status (as of April 30, 2013) (Note 2)

Rentable Area 850.64 m2 Rented Area 758.86 m2 Occupancy Rate 89.2%






Appraisal Value 758,000 thousand yen



PML 9.46%

Architect/Contractor/Building Permit Agency, etc. (Note 5) Architect SEKKEI CENTER Co.,Ltd. Contractor SUMISEKI CONTECH CORPORATION.

Building Permit Agency Japan Constructive Inspect Association, Inc

Special Affairs (Note 6) None ⑧ OZIO SHINKAWA

Property Name OZIO SHINKAWA



Location (Residential address) (Note 1) 2-15-5 Shinkawa, Chuo-ku, Tokyo Area (Note 1) 425.08 m2

Land Type of Ownership Ownership Completion Date (Note 1) March, 2008 Structure / Number of Floors (Note 1) RC / 12F


Use (Note 1) Apartment building / Parking / Bicycle parking

Building

Rentable Units 59 Units Summary of Rental Status (as of April 30, 2013) (Note 2)


Rentable Units 59 Units Rented Units 57 Units

Total Number of Tenants 1





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Architect X-ARC URBAN ARCHITECTS INC.

Contractor KAGATA CORPORATION. Building Permit Agency UHEC(K.K. Toshi Kyojyuu Hyouka Center)

Special Affairs (Note 6) None ⑨ OZIO MORISHITA

Property Name OZIO MORISHITA



Location (Residential address) (Note 1) 3-6-8 Shinohashi, Koto-ku, Tokyo


Type of Ownership Ownership Completion Date (Note 1) September, 2007 Structure / Number of Floors (Note 1) RC / 14F


Use (Note 1) Apartment building / Retail facilities / Parking

Building

Rentable Units 75 Units Summary of Rental Status (as of April 30, 2013) (Note 2)

Rentable Area 1,977.02 m2 Rented Area 1,952.02 m2 Occupancy Rate 98.7% Rentable Units 75 Units

Rented Units 74 Units Total Number of Tenants 1 Total Monthly Rent 8,127 thousand yen







PML 4.76%

Architect/Contractor/Building Permit Agency, etc. (Note 5) Architect Minatosougoukenchikusekkei, Inc

Contractor P.S. Mitsubishi Construction Co., Ltd.

Building Permit Agency Bureau Veritas Japan Co., Ltd.

Special Affairs (Note 6) None

(Note 1) “Location” is based on the residential address. However, for properties that have no residential address, the lot number or the building address on the registry is indicated. In addition, “Area” of “Land,” “Completion Date,” “Structure / Number of Floors,”

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“Gross Floor Area” and “Use” of “Building” are based on information in the real estate registry, and may not necessarily be identical with the actual figures. “Gross Floor Area” of “Building” denotes the area of the entire building (excepting annexes).

(Note 2) Explanation of “Summary of Rental Status” i “Rentable Area” is the total rentable floor area of residences and retail stores, etc. of the beneficial interest in real estate trust

(if the common area, etc. is leased, the concerned area is also included). The Rentable Area is not based on the real estate registry, but the floor area stated in the lease agreement or the floor area calculated from the building as-built drawing, etc., and may not necessarily be identical to the floor area written in the real estate registry.

ii “Rented Area” means the floor area (based on the floor area in the lease agreement; however, limited to the floor area of residences and retail stores, etc. [when all units are leased in bulk, the floor area of the entire leased units] and excluding the leased area of parking lots, etc.) that is actually leased and a lease agreement is executed with the end-tenant when all or some units are leased in bulk, the Master Leasing Company in the lease agreement (“Master Lease Agreement”) subleases units to end tenants (actual users who are sublessees) and there is an agreement under which the rent in Master Lease Agreement is in accordance with the rent, etc. that end tenants pay (hereinafter this type of Master Lease Agreement is referred to as “Pass-through type Master Lease Agreement”).

iii “Occupancy Rate” is the rate of rented area to rentable area. iv “Rentable Units” is the number of rentable units (including the number of stores, etc., if any). v “Rented Units” is the number of rented units (which includes the number of stores, if any) that is actually leased and a lease

agreement is executed with the end-tenant. vi “Total Number of Tenants” is the number of tenants with which the operator or Trustee of Beneficial Trust has a direct rental

contract relationship. Therefore, when the operator or Trustee of Beneficial Trust leases comprehensively to the Master Leasing Company all units of the acquired property, and the Master Leasing Company subleases each unit to end-tenants, the Total Number of Tenants is 1; that is, the end-tenants of the sublease agreements are excluded. Further, even if the acquired property is leased by the Master Leasing Company, if there are end-tenants who do not accept the master lease, the end-tenants and the operator or Trustee of Beneficial Trust have a direct rental contract relationship. In those cases, however, the end-tenants in question are not included in the Total Number of Tenants either.

vii When the Master Leasing type is a Pass-through type Master Lease Agreement, “Total Monthly Rent” means the total monthly rent as of the last day of April, 2013 (including the common area expense, but not fees for incidental facilities such as parking lot or trunk room) stated in the lease agreement, etc. executed by the Master Leasing Company, or the owner of each beneficial interest in real estate trust with end-tenants. Amounts are rounded down to the nearest thousand yen. Consumption tax and other taxes are excluded.

viii “Security Deposit” is the total amount of security deposit, as of the last day of April, 2013, based on lease agreements executed with the end-tenants, rounded down to the nearest thousand yen. However, if a Security Deposit does not need to be repaid based on special policy conditions such as the redemption of the deposit in a lease agreement, the amount of the Security Deposit is excluded.

(Note 3) “Summary of the Appraisal Report” is the appraisal value described in the respective real estate appraisal reports that were prepared by Morii Appraisal & Investment Consulting, Inc., a third party with no special interest in the Investment Corporation. The appraisal value is the judgment and opinion of the appraiser at a fixed point in time, with no guarantees as to the validity or accuracy of the report, the possibility of transactions at the appraised value, or other factors.

(Note 4) In “Summary of the Earthquake Risk Analysis,” the summary of a report on the beneficial interest in real estate trust prepared by the PML reporting company, a third party with no special interest in the Investment Corporation, is stated based on the statement of the report. However, the content of the report is simply the opinion of the PML reporting company above, and the Investment Corporation does not guarantee the adequacy or accuracy of the content.

“PML” is the probable maximum loss from an earthquake. There is a PML for individual buildings and for the entire portfolio of buildings. In this document, PML is the expected loss (which is equivalent to the 90% non-exceedance probability) as a percentage of the replacement price, and denotes the costs incurred during the anticipated usable period (generally, the effective life of a building is 50 years) from an expected large-scale earthquake (which corresponds to a return period of 475 years; the possibility of the earthquake occurring during the next 50 years exceeds 10%).

(Note 5) The names of “Architect/Contractor/Building Permit Agency, etc.” are as of the time a construction permit was requested. (Note 6) “Special Affairs” are matters recognized as important as of the last day April, 2013, regarding the right and use, etc. of the asset,

as well as consideration of the degree of impact on the appraised value, profitability and appropriation. They include the following matters:

i Significant limitation or restriction by laws, ordinances, rules and regulations ii Significant burdens or limitations on rights, etc. iii Significant cases where there are architectural structures crossing the boundaries of the concerned property, etc. and cases

where there are issues with boundary confirmation, etc., and related arrangements, etc. iv Significant agreements, arrangements, etc. made with co-owners / sectional owners.

(Note 7) Including a setback portion (approximately 2.59 m2). (Note 8) Including portion of private road burden (approximately 3.78 m2).

(3) Overview of operator of anonymous partnership

Name Godo Kaisha RB-1

Headquarters Address Nihonbashi 1-chome Bldg. 1-4-1, Nihonbashi, Chuo-ku, Tokyo

Representative Representative Partner Ippan Shadan Hojin Delphoi Managing Director Takanori Mishina

Principal Business

1. Acquisition, possession and disposal of beneficial interests in real estate trust 2. Leasing, management, acquisition, possession and disposal

of real estate 3. Any other auxiliary and/or related businesses to the items described above

Capital 200 thousand

Date Established June 7, 2013 Relationship with the Investment Corporation and the Asset Management Company Capital relationship The Investment Corporation and Tokyu Land Corporation, the parent company of

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the Asset Management Company, is scheduled to fund the company as described below in “3. Summary of Asset to be Acquired (1) Overview of anonymous partnership”.

Personal relationship None

Trade relationship None

Interested parties

Godo Kaisha RB-1 is not an interested party with respect to the Investment Corporation and the Asset Management Company. However, because TLCM, which is to be the asset manager of the company, is an interested party etc. in relation to the Asset Management Company, the company is scheduled to be an interested party etc. in relation to the Asset Management Company in accordance with the bylaws of the Asset Management Company.

4. Transactions with the Interested Party, etc.

Godo Kaisha RB-1, the operator of the anonymous partnership, is scheduled to be an interested party in relation to the Asset Management Company, as described below in “3．Summary of Asset to be Acquired (3) Overview of operator of anonymous partnership.” Therefore, the procedures required in accordance with the bylaws were completed with respect to agreements with the company.

5. Summary of Brokerage Not applicable 6. Method of payment The Investment Corporation is scheduled to pay the investment into Godo Kaisha RB-1 on the scheduled

date of acquisition of anonymous partnership equity interests, as described below in “7. Acquisition Schedule.”

7. Acquisition Schedule

July 11, 2013 Acquisition decided July 16, 2013 Signing of anonymous partnership agreement (planned)

July 16, 2013 Acquisition of anonymous partnership equity interests (planned) July 17, 2013 Acquisition of beneficial interest in real estate trust by operator (planned)

8. Forecast

The acquisition of the investment assets have only a minor influence on the earnings forecasts for fiscal period ending July 31, 2013 (February 1, 2013 - July 31, 2013) and January 31, 2014 (August 1, 2013 - January 31, 2014) . Therefore the earnings forecasts remain unchanged.

*The original Japanese version of this press release has been distributed to the press club of TSE (Kabuto Club), the Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction trade newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.

*Website of the Investment Corporation: http://www.comforia-reit.co.jp/english/

Attachments

1. Summary of the Appraisal Reports of the Properties to be Acquired

2. Images, etc. of the Properties to be Acquired

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Attachments 1. Summary of the Appraisal Reports of the Properties to be Acquired

(thousand yen)

Property Name COMFORIA KUDAN COMFORIA MITA EAST

COMFORIA UENOHIROKOJI

Appraisal Company Morii Appraisal &

Investment Consulting, Inc.Morii Appraisal &

Investment Consulting, Inc. Morii Appraisal &

Investment Consulting, Inc.

Appraisal Date June 14, 2013 June 14, 2013 June 14, 2013

Appraisal Value 1,370,000 3,300,000 1,100,000

Price of the Direct Capitalization Method ((6)/(7))

1,390,000 3,350,000 1,110,000

(1) Operating Income 80,937 198,620 69,180

Potential Gross Income 85,695 210,243 72,519

Rental Income (including common area expense)

80,764 197,894 70,172

Utility Charge Income 0 0 0

Parking Lot Income 2,400 6,192 0

Key Money / Renewal Income 2,531 6,042 1,327

Other Income 0 115 1,020

Vacancy Loss ▲ 4,758 ▲ 11,623 ▲ 3,339

Collection Loss 0 0 0

(2) Operating Expense 14,180 33,988 14,260

Maintenance and Management Fee 2,659 6,041 3,318

Utility Charge 980 1,453 1,061

Repair Cost 1,502 3,969 1,536

Property Management Fee 1,960 4,814 1,696

Tenant Advertisement Cost 2,864 7,545 2,498

Taxes and Public Dues 3,693 8,721 3,782

Insurance 256 654 239

Other Expenses 266 791 130

(3) Net Operating Income

(NOI, (1)-(2)) 66,757 164,632 54,920

(4) Interest on Security Deposit 246 601 321

(5) Capital Expenditure 1,604 4,426 1,859

(6) Net Cash Flow

(NCF, (3)+(4)-(5)) 65,399 160,807 53,382

(7) Cap Rate 4.7% 4.8% 4.8%

Price of the DCF Method 1,340,000 3,240,000 1,080,000

Discount Rate 4.4% 4.5% 4.5%

Terminal Cap Rate 5.0% 5.1% 5.1%

Cost Approach Value 938,000 1,990,000 887,000

Total Value of Land and Building 938,000 1,991,000 887,000

Land Value 584,000 1,070,000 557,000

Building Value 354,000 921,000 330,000

Adjustment for Change 100% 100% 100%(Note) The numbers above are a summary of real estate appraisal reports prepared by Morii Appraisal & Investment Consulting, Inc.

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(thousand yen)

Property Name COMFORIA

KASUGATOMISAKA COMFORIA LIV

KIBAKOEN COMFORIA ICHIGAYA

YANAGICHO






Appraisal Value 3,040,000 994,000 1,700,000


3,090,000 1,010,000 1,730,000




180,527 65,100 104,228


Parking Lot Income 6,624 1,080 720


Other Income 280 258 0

Vacancy Loss ▲ 14,230 ▲ 3,439 ▲ 5,540




Utility Charge 1,792 836 1,033

Repair Cost 3,256 1,472 1,838





Other Expenses 232 360 1,104

(3) Net Operating Income (NOI, (1)-(2))

147,929 52,007 84,514



(6) Net Cash Flow

(NCF, (3)+(4)-(5)) 145,292 50,580 82,958

(7) Cap Rate 4.7% 5.0% 4.8%

Price of the DCF Method 2,980,000 978,000 1,670,000



Cost Approach Value 1,790,000 582,000 1,010,000

Total Value of Land and Building 1,787,000 582,000 1,005,000

Land Value 957,000 267,000 580,000

Building Value 830,000 315,000 425,000


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(thousand yen)

Property Name COMFORIA

KAGURAZAKA OZIO SHINKAWA OZIO MORISHITA






Appraisal Value 758,000 1,920,000 1,560,000


772,000 1,950,000 1,580,000




47,418 116,623 98,712


Parking Lot Income 0 2,880 1,800


Other Income 0 276 184

Vacancy Loss ▲ 2,370 ▲ 6,472 ▲ 5,339




Utility Charge 710 1,068 1,148

Repair Cost 966 2,487 2,194





Other Expenses 209 0 301

(3) Net Operating Income (NOI, (1)-(2))

37,245 95,923 81,503



(6) Net Cash Flow

(NCF, (3)+(4)-(5)) 36,298 93,659 79,060

(7) Cap Rate 4.7% 4.8% 5.0%

Price of the DCF Method 743,000 1,880,000 1,530,000



Cost Approach Value 554,000 1,150,000 856,000

Total Value of Land and Building 554,000 1,151,000 856,000

Land Value 333,000 601,000 372,000

Building Value 221,000 550,000 484,000


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Attachments 2. Images, etc. of the Properties to be Acquired

（１）COMFORIA KUDAN

（２）COMFORIA MITA EAST

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（３）COMFORIA UENOHIROKOJI

（４）COMFORIA KASUGATOMISAKA

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（５）COMFORIA LIV KIBAKOEN

（６）COMFORIA ICHIGAYAYANAGICHO

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（７）COMFORIA KAGURAZAKA

（８）OZIO SHINKAWA

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（９）OZIO MORISHITA

Documents

Real Estate Investment Trust Securities Issuer: Comforia ... · partnership equity interests of Godo Kaisha RB-1. （Note 3） Tokyu Land Corporation, the parent company (ownership