HEIWA Real Estate REIT : Completion of Acquisition of Assets (ACROSS SHINKAWA BUILDING)

January 20, 2017

For Immediate Release

REIT Issuer HEIWA REAL ESTATE REIT, Inc.

9-1 Nihonbashi Kabuto-cho, Chuo-ku, Tokyo Masaaki Higashihara, 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. [phone]

Completion of Acquisition of assets (ACROSS SHINKAWA BUILDING)

HEIWA REAL ESTATE REIT, Inc (the "Investment Corporation") announced today it has completed the acquisition of the trust beneficial interests of ACROSS SHINKAWA BUILDING announced in the press release "Notice concerning Asset Acquisition and Transfer" dated October 17, 2016 as described below.

Details

Overview of the transaction

(1)	Property number / Property name	Of-38 ACROSS SHINKAWA BUILDING
(2)	Type of specified asset	Trust beneficial interests (in real estate in Japan)
(3)	Investment Category (Note 1)	Office
(4)	Investment Area	Primary Investment Area (Chuo-ku, Tokyo)
(5)	Acquisition price (Note 2)	3,250,000 thousand yen
(6)	Agreement Execution date	October 17, 2016
(7)	Acquisition date	January 20, 2017
(8)	Seller	Heiwa Real Estate Co., Ltd.
(9)	Acquisition financing	Own funds and borrowing
(10)	Payment method	Lump-sum payment at time of delivery
(11)	Trustee (Planned)	Sumitomo Mitsui Trust Bank, Limited
(12)	Trust Term (Planned)	From March 20, 2003 to January 31, 2027

(Note 1) Although this property consists of offices and residences, it is classified as an office because the total leasable floor space for offices is greater than that for residences.

(Note 2) Acquisition prices are the prices described in the trust beneficial interest transaction agreement (consumption tax not included), and excludes acquisition costs, fixed property tax, city planning tax, etc.

(Note 3) For details regarding the acquisition of the property, please refer to "Notice concerning Asset Acquisition and Transfer" announced October 17, 2016.

• Distribution: Kabuto Club, Ministry of Land, Infrastructure, Transport and Tourism Press Club, and Ministry of Land, Infrastructure, Transport and Tourism Press Club for Construction Publications

• Investment Corporation Website: http://www.heiwa-re.co.jp/english/