Industrial & Infrastructure Fund Investment Corpor : Notice Concerning Cancellation of Lease Contract at IIF Shinonome R&D Center (262.4KB)

Notice Concerning Cancellation of Lease Contract at IIF Shinonome R&D Center

Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code: 3249)

News Release -January 18, 2016

Notice Concerning Cancellation of Lease Contract at IIF Shinonome R&D Center

Industrial & Infrastructure Fund Investment Corporation ("IIF") announced today that the lease agreement for IIF Shinonome R&D Center (the "Property") will be terminated as outlined below.

1. Background of this lease cancellation

IIF today received a six months' prior lease cancellation notice from the tenant concerning the lease contract described in "2. Summary of the lease contract to be cancelled" below.

1. Summary of the lease contract to be cancelled

   
   

   Tenant Name	Nihon Unisys, Ltd.
   Property Name	IIF Shinonome R&D Center
   Leased Area	17,045.30 m2
   Percentage in Total Leasable Area of the Property	100.0%
   Percentage in Total Leasable Area of IIF	1.8%
   Annual Rent (excluding consumption tax)	Not disclosed (Note)
   Tenant Leasehold / Security Deposit	Not disclosed (Note)
   Scheduled Date of Cancellation	September 30, 2016

   (Note) Tenant has not agreed to disclose the annual rent and tenant leasehold/security deposit. The rent NOI of this property for the fiscal period ended June 2015 (the 16th period: January 1, 2015 to June 30, 2015) was 340 million yen, which accounts 5.8% of our entire property.

   
   

2. Future outlook for IIF

   
   

   
   

   As the scheduled date of cancellation is September 30, 2016, there will be no impact of IIF's operating result for the December 2015 fiscal period (The 17th period: July 1, 2015 to December 31, 2015) and our forecasts remain unchanged. For the June 2016 fiscal period (The 18th period: January 1, 2016 to June 30, 2016), there will be no impact concerning this lease cancellation and we will announce in "Industrial & Infrastructure Fund Investment Corporation Summary of Financial Results for the Six Months Ended December 31, 2015" which is scheduled to be released on February 16, 2016.

   
   

3. Future Policy

   Taking account of the location and the characteristics of the facility, IIF will immediately start the leasing activity, and at the same time, consider multiple options of selling or changing portfolio composition by asset replacement to maintain and improve the profitability of the portfolio.

   
   

   
   

   Photos and map

   
   

   
   

   
   

   IIF Shinonome R&D Center

   
   

   • Summary of Property

(Note) Photos and map above are as of February 15, 2012, and it may differ from the present condition.

Property name	IIF Shinonome R&D Center
Location	1-14-5, Shinonome, Koto-Ward, Tokyo	Land area	10,735.60 m2
Construction date	March 31, 1989	Building area	21,903.15 m2
Structure/stories	6-story, steel-framed reinforced concrete building with deck roof and one basement floor	Type of building	office, parking lots

■Location

• Walking distance from Tokyo Metro Yurakucho Line's "Toyosu station" and within 4.5 km straight-line

  distance from Tokyo station which enables access on foot from Tokyo Metropolitan area. This not only enhances the daily operation connectivity, but also enables 24-hour emergency technical support in emergency.

• Located in Toyosu/Shinonome area in which more than 1,000 tsubo-sized floor buildings gather and

  many leading companies are accumulated. This area's image as business area is starting to spread, making it an appealing location for back office functions of corporations with headquarters in the surrounding areas.

  ■Facilities

• Versatile, high specification facility equipped with individual air conditioning, room-height 2,600 mm (free-access server room height of 150 mm), floor load 500kg/m2 and two special high-pressure lines, which is suitable for the use of R&D facility, back office and other usages.

• Emergency power generating and UPS which support continuous operations in an emergency.

• Multi-layered security system using noncontact IC cards.

About IIF: Industrial and Infrastructure Fund Investment Corporation is the first J-REIT focused on acquiring and operating both industrial and infrastructure properties in Japan－properties that play a vital role in the Japanese economy, and for which IIF expects to see stable demand in the mid to long term. With respect to industrial properties, IIF intends to invest in a diverse portfolio of properties, including manufacturing and research and development facilities.

Contacts: For further information relating to this press release as well as IIF and its Asset Manager, please feel free to contact Mr. Toshiaki Fukai (Telephone Number: 81-3-5393-7090), Head of Industrial Division at Mitsubishi Corp.-UBS Realty, Inc., Asset Manager for Industrial & Infrastructure Fund Investment Corporation.

Investor Relations: Telephone Number: 81-3-5293-7091 E-mail: [e-mail]

This release is for informational purposes only and the Japanese language release should be referred to as the original.