notice concerning acquisition of asset (silent partnership equity … › file ›...

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October 28, 2014

For Immediate Release

Real Estate Investment Trust Securities Issuer: NIPPON REIT Investment Corporation

1-17-18 Shinkawa, Chuo-ku, Tokyo Hisao Ishikawa

Executive Officer (Securities Code: 3296)

Asset Management Company: Sojitz REIT Advisors K.K.

Hisao Ishikawa President, Director & CEO

Contact: Kanehisa Nango General Manager

Corporate Planning Department Finance & Planning Division

(TEL: +81-3-3552-8883)

Notice Concerning Acquisition of Asset (Silent Partnership Equity Interest)

NIPPON REIT Investment Corporation (“NIPPON REIT”) announces that Sojitz REIT Advisors K.K. (“SRA”), which is entrusted to manage the assets of NIPPON REIT, today decided on the following acquisition of an asset (silent partnership equity interest) (the “Acquisition”).

Details 1. Overview of acquisition

(1) To-be-acquired asset: Silent partnership equity interest that has beneficiary right of trust placing real estate in trust as asset under management

(2) Asset name: Godo Kaisha Nicolas Capital 1 silent partnership equity interest

(3) Real estate that is the trust property: Hisamatsucho Reeplex B’s Hiroo Reeplex B’s Nishi-Shinjuku Sanko Building Towa Higashi-Gotanda Building KDX Ningyocho Building Iidabashi Reeplex B’s Itabashi Honcho Building Mejiro NT Building Mitsui Woody Building IS Minamimorimachi Building ANTEX24 Building Marunouchi Sanchome Building East Side Building Toshin Higashi-Ikebukuro Building Kanda Reeplex R’s Komyoike Act (4) Equity investment amount: 500 million yen (3.5% of total amount of equity

investment in silent partnership, etc.) (Note) (5) Agreement conclusion date: October 28, 2014 (6) Equity interest acquisition date: October 29, 2014 (scheduled) (7) Equity interest acquisition financing: Funds on hand

(Note) Rounded to one decimal place. The same applies hereinafter.

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2. Reason for acquisition SRA decided on the Acquisition in view of developing a portfolio that achieves growth of asset

size and securing of stable revenue of the portfolio through investing in silent partnership equity interest pursuant to the asset management targets and policy set forth in the articles of incorporation of NIPPON REIT.

The Acquisition is thought to achieve dynamic and timely investments as set forth in the basic policy of NIPPON REIT and thereby have the effect of largely contributing to the future external growth of NIPPON REIT.

The Acquisition will lead to NIPPON REIT receiving from the operator of the silent partnership (Godo Kaisha Nicolas Capital 1) dividends of earnings sourced from rent income, etc. from the lessees of the real estate that is the trust property above. In addition, with the Acquisition, NIPPON REIT will be granted the right of first negotiation pertaining to acquisition of the real estate trust beneficiary right of real estate that is the trust property above (please refer to “3. Content of to-be-acquired asset; (1) Overview of silent partnership that is the target of equity investment; Other; Right of first negotiation to be granted with the Acquisition” below for details), but this does not mean that NIPPON REIT will be obliged to acquire the beneficiary right of real estate that is the trust property above.

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3. Content of to-be-acquired asset (1) Overview of silent partnership that is the target of equity investment

Operator name Godo Kaisha Nicolas Capital 1

Effective period of silent partnership agreement

To July 30, 2016

Total amount of equity investment in silent partnership, etc.

14,200 million yen

Overview of silent partnership agreement

The following is an overview of this equity investment in silent

partnership.

Godo Kaisha Nicolas Capital 1

Real estate trust beneficiary right, etc.

35,400 million yen

(Note 1)

Non-recourse loan (senior)

16,200 million yen

Non-recourse loan (mezzanine)

5,000 million yen

Equity investment in silent partnership, etc.

(Note 2)

14,200 million yen

Calculation period: The three-month periods every year from

February 1 to the last day of April, from May 1 to

the last day of July, from August 1 to the last day

of October and from November 1 to the last day of

January in the following year. However, the first

calculation period shall be from the equity interest

acquisition date to the last day of January 2015.

Distribution of earnings (losses):

In the event that the business generates earnings

in the respective calculation period, the operator

shall distribute the entire amount thereof to equity

investors in accordance with their proportion of

equity investment on the last day of the respective

calculation period.

In addition, in the event that the business

generates losses in the respective calculation

period, distributions shall be in accordance with

their proportion of equity investment on the last

day of the respective calculation period for up to

the amount of losses of the business.

However, in the event that the cumulative amount

of losses to be distributed to equity investors

exceeds the total amount of equity investment,

the entire portion in excess shall be distributed to

the operator.

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Other Right of first negotiation to be granted with the Acquisition

Content of

right

The right to be the first to be entitled to negotiate

acquisition of the real estate trust beneficiary

right scheduled to be acquired by the operator on

October 30, 2014 (please refer to 7. below) or the

real estate that is the trust property.

Period To January 30, 2016 (scheduled)

Terms and

conditions

of price

upon first

negotiation

Acquisition at or above 33,948 million yen (including consumption taxes). Breakdown of price (including consumption taxes) (Note 5): Hisamatsucho Reeplex B’s : 2,874 mn yen Hiroo Reeplex B’s : 2,842 mn yen Nishi-Shinjuku Sanko Building : 2,226 mn yen Towa Higashi-Gotanda Building : 2,064 mn yen KDX Ningyocho Building : 1,668 mn yen Iidabashi Reeplex B’s : 1,264 mn yen Itabashi Honcho Building : 3,235 mn yen Mejiro NT Building : 3,151 mn yen Mitsui Woody Building : 2,504 mn yen IS Minamimorimachi Building : 2,323 mn yen ANTEX24 Building : 1,715 mn yen Marunouchi Sanchome Building : 1,671 mn yen East Side Building : 1,386 mn yen Toshin Higashi-Ikebukuro Building : 996 mn yen Kanda Reeplex R’s : 1,852 mn yen Komyoike Act : 2,171 mn yen

(Note 1) Real estate trust beneficiary right, etc. is including arrangement costs and reserves, etc. Furthermore, the real estate appraisal value total is 34,440 million yen.

(Note 2) Of the total amount of equity investment in silent partnership, etc., NIPPON REIT’s equity investment is scheduled to be 500 million yen (approximately 3.5% of the total amount of equity investment in silent partnership, etc.).

(Note 3) Profound Investment Management Co., Ltd. is scheduled to be the asset manager for Godo Kaisha Nicolas Capital 1.

(Note 4) Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is scheduled to be the party handling the private placement for Godo Kaisha Nicolas Capital 1.

(Note 5) The terms and conditions of price upon first negotiation are rounded down to the nearest million yen. Accordingly, the figures for each real estate that is the trust property may not necessarily add up to the figure in the total column.

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(2) Overview of operator of silent partnership in which equity investment is to be made

Name Godo Kaisha Nicolas Capital 1

Location 3-18-12-1001 Toranomon, Minato-ku, Tokyo

Line of business 1. Acquisition, holding and disposition of real estate trust beneficiary right

2. Acquisition, holding, disposition, leasing and management of real estate

3. Other businesses incidental or related to businesses listed in the preceding items

Title and name of

representative

Representative member: Ippan Shadan Hojin Nicolas Funding 1

Person to execute duties: Hidenobu Sugaya

Capital 500,000 yen

Date of establishment August 6, 2012

Relationship with NIPPON REIT or asset management company

Capital relationship

Personnel relationship

Business relationship

There is no capital relationship, personnel relationship or

business relationship to be stated between NIPPON REIT or the

asset management company and the concerned company. In

addition, there is no capital relationship, personnel relationship or

business relationship to be specially noted between associated

persons and associated companies of NIPPON REIT or the

asset management company and associated persons and

associated companies of the concerned company.

Related-party status The concerned company does not fall under the category of a

related party of NIPPON REIT or the asset management

company. In addition, associated persons and associated

companies of the concerned company do not fall under the

category of a related party of NIPPON REIT or the asset

management company.

4. Settlement method

Settlement shall be in a lump sum at the time of equity investment in silent partnership as stated in “5. Schedule of acquisition” below. 5. Schedule of acquisition

October 28, 2014 Decision on acquisition October 28, 2014 Conclusion of silent partnership agreement October 29, 2014 Equity investment in silent partnership (scheduled) October 30, 2014 Delivery of real estate trust beneficiary right to silent partnership operator

(scheduled) 6. Future outlook

The forecast of the management status for the fiscal period ending December 2014 (from July 1, 2014 to December 31, 2014) remains unchanged because the impact will be minimal.

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7. Content of real estate that is the trust property of the real estate trust beneficiary right (i) Hisamatsucho Reeplex B’s

Type of specified asset Real estate trust beneficiary right

Scheduled acquisition date October 30, 2014 (scheduled)

Trustee Mizuho Trust & Banking Co., Ltd.

Trust establishment date August 31, 2005

Trust expiration date October 31, 2024 (scheduled)

Location (indication of residential address) 4-4 Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo

Land

Parcel number 1-1 Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo (and

4 other parcels)

Building coverage ratio /

Floor area ratio

100% (Note 1) / 600%

Use district Commercial district

Site area 730.94m2

Type of ownership Ownership

Building

Construction completion August 1989

Structure / Floors Steel-framed reinforced concrete structure with flat

roof / B1/7F

Use Office

Total floor space 4,623.55m2


Master lease company Yugen Kaisha Forecast Leasing (scheduled)

Type of master lease Pass-through

Appraisal value 2,890 million yen

Direct capitalization rate 4.7%

Discount rate 4.5%

Terminal capitalization rate 4.9%

Real estate appraiser Japan Real Estate Institute

PML 5.6%

Collateral after acquisition The real estate trust beneficiary right is scheduled to have a pledge established with the loaner of the non-recourse loan to the operator as the pledgee. In addition, an agreement on establishment of a mortgage with a condition precedent that agrees to the concerned loaner as the mortgagee is scheduled to be concluded for the real estate that is the trust property.

Status of leasing

Leasable floor space 3,137.52m2

Leased floor space 3,137.52m2

Occupancy rate 100.0%

Total number of tenants 1

Total rent income (annual) Not disclosed (Note 2)

Deposits, etc. Not disclosed (Note 2)

Special notations Not applicable (Note 1) The building coverage ratio is essentially 80%, but it is 100% due to relaxation for fire-proof

structures within commercial districts and fire prevention districts. (Note 2) Not disclosed because consent has not been obtained from the end tenant.

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① Photo of exterior of real estate that is the trust property

② Map of real estate that is the trust property

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(ii) Hiroo Reeplex B’s




Trust establishment date February 28, 2007


Location (indication of residential address) 5-15-27 Minami-Azabu, Minato-ku, Tokyo

Land

Parcel number 5-66-5 Minami-Azabu, Minato-ku, Tokyo (and 1 other

parcel)


Floor area ratio

100% (Note) / 500%


Site area 394.84m2


Building

Construction completion May 1987;

February 2007: Partial demolition and extension


roof / 9F

Use Office







Discount rate 4.2%



PML 4.4%


Status of leasing





Total rent income (annual) 129 million yen

Deposits, etc. 85 million yen

Special notations Not applicable (Note) The building coverage ratio is essentially 80%, but it is 100% due to relaxation for fire-proof

structures within commercial districts and fire prevention districts.

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(iii) Nishi-Shinjuku Sanko Building




Trust establishment date March 7, 2005


Location (indication of residential address) 7-22-35 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Land

Parcel number 7-124-21 Nishi-Shinjuku, Shinjuku-ku, Tokyo (and 3

other parcels)


Floor area ratio

100% (Note) / 354%


Site area 1,022.43m2


Building

Construction completion September 1987

Structure / Floors Reinforced concrete structure with flat roof / B1/4F

Use Office



Master lease company －

Type of master lease －



Discount rate 4.2%



PML 12.7%


Status of leasing









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(iv) Towa Higashi-Gotanda Building



Trustee Mitsubishi UFJ Trust and Banking Corporation

Trust establishment date September 6, 2013


Location (indication of residential address) 1-7-6 Higashi-Gotanda, Shinagawa-ku, Tokyo

Land

Parcel number 1-7-1 Higashi-Gotanda, Shinagawa-ku, Tokyo


Floor area ratio

100% (Note) / 478%


Site area 805.45m2


Building

Construction completion September 1985


roof / B1/7F

Use Office







Discount rate 4.4%



PML 5.1%


Status of leasing









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(v) KDX Ningyocho Building




Trust establishment date December 13, 2005


Location (indication of residential address) 3-4-14 Nihonbashi-Ningyocho, Chuo-ku, Tokyo

Land

Parcel number 3-102-6 Nihonbashi-Ningyocho, Chuo-ku, Tokyo (and

1 other parcel)


Floor area ratio

100% (Note) / 682%


Site area 394.68m2


Building

Construction completion February 1984


roof / 8F

Use Office







Discount rate 4.5%



PML 7.1%


Status of leasing









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(vi) Iidabashi Reeplex B’s




Trust establishment date October 31, 2005


Location (indication of residential address) 1-14 Shin-Ogawamachi, Shinjuku-ku, Tokyo

Land

Parcel number 2-22 Shin-Ogawamachi, Shinjuku-ku, Tokyo (and 2

other parcels)


Floor area ratio

93% (Note) / 483%

Use district Up to 20m from road on east side:

Commercial district

Beyond 20m from road on east side:

Quasi-industrial district

Site area 361.60m2


Building

Construction completion June 1992

Structure / Floors Steel-framed, reinforced concrete structure with flat

roof / B1/8F

Use Office







Discount rate 4.0%



PML 4.4%


Status of leasing







Special notations Not applicable (Note) The building coverage ratio is essentially 80% for the commercial district and 60% for the

quasi-industrial district, but it is 93% due to relaxation for fire-proof structures within fire prevention districts and due to a weighted average based on the subject area of the respective use districts.

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(vii) Itabashi Honcho Building



Trustee Sumitomo Mitsui Trust Bank, Limited



Location (indication of residential address) 36-1 Shimizucho, Itabashi-ku, Tokyo

Land

Parcel number 35-10 Shimizucho, Itabashi-ku, Tokyo (and 1 other

parcel)


Floor area ratio

100% (Note) / 491%



Type of ownership Ownership and leasehold right

Building

Construction completion January 1993

Structure / Floors Steel-framed reinforced concrete, steel-framed

structure with flat roof / 8F

Use Office







Discount rate 4.8%



PML 7.8%


Status of leasing







Special notations For a part of the land, the trustee has concluded a

lease agreement with an individual, which is the

owner of the land, under which the land is leased.

The content of leasing is not disclosed because

consent has not been obtained from the owner of the

land as of the date of this document. (Note) The building coverage ratio is essentially 80%, but it is 100% due to relaxation for fire-proof


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(viii) Mejiro NT Building






Location (indication of residential address) 2-1-1 Mejiro, Toshima-ku, Tokyo

Land

Parcel number 2-1488-3 Mejiro, Toshima-ku, Tokyo


Floor area ratio

93% (Note) / 400%

Use district Up to 20m from road on south side:

Neighborhood commercial district

Beyond 20m from road on south side:

Category 1 residential district



Building

Construction completion July 1990


roof / B1/7F

Use Office







Discount rate 4.7%



PML 6.6%


Status of leasing







Special notations Not applicable (Note) The building coverage ratio is essentially 80% for the neighborhood commercial district and

60% for the category 1 residential district, but it is 93% due to relaxation for fire-proof structures within fire prevention districts and relaxation for corner lots, as well as due to a weighted average based on the subject area of the respective use districts.

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(ix) Mitsui Woody Building




Trust establishment date March 26, 2001


Location (indication of residential address) 2-4-14 Toyo, Koto-ku, Tokyo

Land

Parcel number 2-2-8 Toyo, Koto-ku, Tokyo (and 1 other parcel)


Floor area ratio

60% / 300%

Use district Quasi-industrial district



Building

Construction completion March 1990


roof / B1/6F

Use Office







Discount rate 4.8%



PML 11.9%


Status of leasing







Special notations Not applicable

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(x) IS Minamimorimachi Building




(scheduled)

Trust establishment date October 30, 2014 (scheduled)


Location (indication of residential address) 2-6-5 Higashi-Tenma, Kita-ku, Osaka-shi, Osaka

Land

Parcel number 2-23-4 Higashi-Tenma, Kita-ku, Osaka-shi, Osaka


Floor area ratio

100% (Note) / 800%


Site area 796.15m2


Building

Construction completion August 1993


roof / B1/10F

Use Office







Discount rate 5.0%



PML 9.6%


Status of leasing









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(xi) ANTEX24 Building






Location (indication of residential address) 1-1-14 Taito, Taito-ku, Tokyo

Land

Parcel number 1-213-1 Taito, Taito-ku, Tokyo (and 1 other parcel)


Floor area ratio

100% (Note) / 600%


Site area 448.98m2


Building

Construction completion February 1988

Structure / Floors Steel-framed reinforced concrete, steel-framed

structure with flat roof / 8F

Use Office







Discount rate 4.6%



PML 3.7%


Status of leasing









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(xii) Marunouchi Sanchome Building




Trust establishment date May 30, 2007


Location (indication of residential address) 3-14-32 Marunouchi, Naka-ku, Nagoya-shi

Land

Parcel number 3-1422-1 Marunouchi, Naka-ku, Nagoya-shi (and 3

other parcels)


Floor area ratio

100% (Note 1) / 600%


Site area 892.31m2


Building

Construction completion July 1988


roof / 9F

Use Office

Total floor space 5,353.33m2 (Note 2)


Master lease company Rio Consulting Co., Ltd.




Discount rate 5.2%



PML 7.1%


Status of leasing







Special notations Not applicable (Note 1) The building coverage ratio is essentially 80%, but it is 100% due to relaxation for fire-proof

structures within commercial districts and fire prevention districts and relaxation for corner lots. (Note 2) The total floor space of the real estate that is the trust property includes the following annex

buildings. Use: Parking lot; Structure: Steel-framed structure with zinc-coated steel roof / 1F; Floor space: 41.82m

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Use: Parking lot; Structure: Steel-framed structure with zinc-coated steel roof / 1F; Floor space: 43.31m2

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(xiii) East Side Building






Location (indication of residential address) 1-1-11 Yanagibashi, Taito-ku, Tokyo

Land

Parcel number 1-2-16 Yanagibashi, Taito-ku, Tokyo (and 5 other

parcels)


Floor area ratio

100% (Note) / 477%


Site area 503.57m2


Building

Construction completion May 1988

Structure / Floors Steel-framed, reinforced concrete structure with flat

roof / B1/6F

Use Office







Discount rate 4.8%



PML 3.6%


Status of leasing









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(xiv) Toshin Higashi-Ikebukuro Building






Location (indication of residential address) 5-44-15 Higashi-Ikebukuro, Toshima-ku, Tokyo

Land

Parcel number 5-3459-2 Higashi-Ikebukuro, Toshima-ku, Tokyo


Floor area ratio

100% (Note) / 500%


Site area 397.05m2


Building

Construction completion November 1989


roof / B1/7F

Use Office







Discount rate 4.9%



PML 3.6%


Status of leasing









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(xv) Kanda Reeplex R’s




Trust establishment date June 30, 2006


Location (indication of residential address) 2-5-1 Kandatacho, Chiyoda-ku, Tokyo

Land

Parcel number 2-5-1 Kandatacho, Chiyoda-ku, Tokyo

Building coverage ratio / Floor area ratio

100% (Note 1) / 600%


Site area 407.23m2

Type of ownership Ownership (proportion of right of site: 218,093 out of 235,631)

Building

Construction completion January 2006

Structure / Floors Reinforced concrete structure with flat roof / 12F

Use Apartment complex

Total floor space 2,909.82m2 (Note 2)

Type of ownership Sectional ownership (Note 3)





Discount rate 4.4%



PML 4.4%


Status of leasing (Note 4)




Number of leasable units 41

Number of leased units 41

Unit occupancy rate 100.0%


Monthly rent 8,786,000 yen


Special notations The real estate that is the trust property is a building under sectional ownership in which the trust beneficiary has sectional ownership of the building with one other co-owner, which is an individual.

(Note 1) The building coverage ratio is essentially 80%, but it is 100% due to relaxation for fire-proof structures within commercial districts and fire prevention districts.

(Note 2) Although the building is a building under sectional ownership, the figure for the entire building is stated.

(Note 3) The portions to be acquired by the operator are all of the exclusively-owned portions other than the exclusively-owned portion (161.32m

2) of the other sectional owner of the building.

(Note 4) The status of leasing is the figure for the portions to be acquired by the operator.

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(xvi) Komyoike Act






Location (indication of residential address) 2-1-3 Kamotanidai, Minami-ku, Sakai-shi, Osaka

Land

Parcel number 2-1-3 Kamotanidai, Minami-ku, Sakai-shi, Osaka


Floor area ratio

100% (Note) / 600%




Building

Construction completion April 1988


roof / B2/7F

Use Store







Discount rate 5.4%



PML 12.7%


Status of leasing









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[Explanation of matters stated in tables above]

“Location (indication of residential address)” is the indication of residential address of each real estate that is the trust property. In addition, if there is no indication of residential address, the building location in the registry (if several, then one of the locations) is stated.

“Building coverage ratio” and “Floor area ratio” of land are, in principle, the figures provided in accordance with related laws and regulations, such as the Building Standards Act and the City Planning Act, and rounded to the nearest whole number. Depending on the real estate that is the trust property, there are cases where “Building coverage ratio” and “Floor area ratio” are subject to certain relaxation measures or restriction measures. In addition, where there are several floor area ratios that apply to a site, the floor area ratio is stated by converting to one that applies to the entire site.

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

“Site area” of land is based on that stated in the registry and may differ from the present state. “Type of ownership” of land is the type of rights held by the trustee of the real estate trust for the

real estate that is the trust property. “Construction completion” of building is the date of new construction in the registry. In addition,

the date of extension, reconstruction, etc. are also stated, if any. “Structure / Floors” of building is based on that stated in the registry.

“Use” of building is the major type of building in the registry. “Total floor space” of building is based on that stated in the registry, and annex buildings are

separately stated, if any. “Type of ownership” of building is the type of rights held by the trustee of the real estate trust for the trust beneficiary right above.

“Master lease company” is the company that has concluded or the company that is scheduled to conclude a master lease agreement that is valid as of today for the real estate that is the trust property.

“Type of master lease” is the main type of master lease agreement concluded or scheduled to be concluded as of today, where “Pass-through” is a master lease agreement in which the master lease company shall pay the same amount of rent as the rent payable by end tenants to the master lease company and “Rent guaranteed” is a master lease agreement in which the master lease company shall pay a fixed amount of rent.

“Appraisal value” is the appraisal value stated in the appraisal report prepared by Japan Real Estate Institute with September 1, 2014 as the effective date of appraisal as requested as part of due diligence upon acquisition of the real estate trust beneficiary right by the operator, and rounded down to the nearest million yen.

“PML” is the PML (Probable Maximum Loss) calculated in the evaluation of seismic risk analysis conducted by Tokio Marine & Nichido Risk Consulting Co., Ltd. as requested as part of due diligence upon acquisition of the real estate trust beneficiary right by the operator, and rounded to one decimal place. Furthermore, “Probable Maximum Loss” means the probable maximum loss that may result from an earthquake and, herein, refers to the extent of damage that may be suffered due to an earthquake of the assumed maximum scale (large earthquake with a probability of occurring once in 475 years = large earthquake with a 10% probability of occurrence in 50 years) in the assumed scheduled use period (50 years = useful life of a general building), expressed as the estimated cost of restoring such damage as a percentage (%) of the replacement cost.

“Collateral after acquisition” is whether or not collateral is scheduled to be established after acquisition of the real estate trust beneficiary right.

“Status of leasing” is based on the figures and information provided by the previous owner or previous trust beneficiary, etc. of the real estate that is the trust property regarding the content, etc. of the lease agreement, etc. that is valid as of August 31, 2014, unless otherwise stated.

“Leasable floor space” is the floor space regarded as being available for leasing based on the lease agreement or building drawing, etc. of the building of each asset as of August 31, 2014 for the real estate that is the trust property.

“Occupancy rate” is the ratio of the leased floor space to the leasable floor space for the real estate that is the trust property as of August 31, 2014, and rounded to one decimal place.

“Leased floor space” is the sum total of the leased floor space indicated in each lease contract or each provisional lease contract for the real estate that is the trust property as of August 31, 2014. However, in cases where a pass-through type master lease agreement has been concluded, the

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sum total of the leased floor space of end tenants indicated in each sublease contract or each provisional sublease contract for the real estate that is the trust property as of August 31, 2014. Furthermore, because there are cases where leased floor space indicated in lease contracts, etc. includes the portion not included in total floor space, there are cases where total leased floor space may exceed total floor space.

“Number of leasable units” for (xv) is the number of units available for leasing (including the number of stores, etc., if any) as of August 31, 2014 for the real estate that is the trust property.

“Number of leased units” for (xv) is the number of units leased to end tenants for which a lease agreement has actually been concluded with end tenants as of August 31, 2014 for the real estate that is the trust property.

“Unit occupancy rate” for (xv) is the ratio of the number of leased units to the number of leasable units for the real estate that is the trust property as of August 31, 2014, and rounded to one decimal place.

“Total number of tenants” is the sum total of the number of tenants (Note 1) in the lease agreement of the real estate that is the trust property indicated in each lease agreement for the real estate that is the trust property as of August 31, 2014. Furthermore, in cases where a pass-through type master lease agreement has been concluded for the concerned asset, the total number of end tenants (Note 1) is stated. However, even in the case of a pass-through type master lease agreement, in cases where the sublessee subleasing the entire property from the master lease company has been entrusted with property management and shall pay fixed rent to the master lease company, the total number of tenants is stated as 1.

“Total rent income (annual)” is the annual rent, or the amount annualized by multiplying the monthly rent by 12, for the building indicated in each lease contract or each provisional lease contract for the real estate that is the trust property as of August 31, 2014 (Note 2), and rounded to the nearest million yen. However, in cases where a pass-through type master lease agreement has been concluded between the master lease company and the lessor, etc. in which, in principle, the rent, etc. from end tenants is received as is, the annual rent, or the amount annualized by multiplying the monthly rent by 12, indicated in each sublease contract or each provisional sublease contract with end tenants for the real estate that is the trust property as of August 31, 2014 (Note 2), and rounded to the nearest million yen is stated.

“Monthly rent” for (xv) is the monthly rent of the building indicated in each lease contract or each provisional lease contract for the real estate that is the trust property as of August 31, 2014 (Note 2). However, in cases where a pass-through type master lease agreement has been concluded between the master lease company and the lessor, etc. in which, in principle, the rent, etc. from end tenants is received as is, the monthly rent indicated in each sublease contract or each provisional sublease contract with end tenants for the real estate that is the trust property as of August 31, 2014 (Note 2) is stated.

“Deposits, etc.” is the sum total amount of tenant leasehold and security deposits required based on each lease agreement for the real estate that is the trust property as of August 31, 2014 (limited to the tenant leasehold and security deposits based on the lease agreement for the leasing space occupied as of August 31, 2014), and rounded to the nearest million yen. In cases where a master lease agreement has been concluded for the concerned asset, the sum total amount of tenant leasehold and security deposits required based on the lease agreement concluded with end tenants, and rounded to the nearest million yen is stated. In addition, “Deposits, etc.” is omitted if consent for disclosure has not been obtained from end tenants.

(Note 1) Excluding warehouse, signboard, parking lot, etc. (Note 2) For real estate that is the trust property under several lease agreements, the sum total

amount thereof. In addition, common area maintenance charges are included, but warehouse, signboard, parking lot, etc. usage fees are not included, and free-rent is not taken into account (excluding consumption taxes).

* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.

* NIPPON REIT Investment Corporation website: http://www.nippon-reit.com/ This notice is the English translation of the original Japanese document and is provided solely for information purposes. There is no assurance as to the accuracy of the English translation. In the event of any discrepancy between this

translation and the Japanese original, the latter shall prevail.

notice concerning acquisition of asset (silent partnership equity … › file ›...

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