United Urban Investment : Notice Concerning Debt Financing

For Translation Purposes Only

January 27, 2017

For Immediate Release

United Urban Investment Corporation

Hitoshi Murakami Executive Officer (Securities Code: 8960)

Asset Management Company: Japan REIT Advisors Co., Ltd.

Ikuo Yoshida President and CEO

Inquiries: Kenichi Natsume Chief Financial Officer TEL: [phone]

Notice Concerning Debt Financing

United Urban Investment Corporation ("United Urban") hereby announces its decision, which was made today to procure debt financing as set forth below.

1. Purpose of Debt Financing

   United Urban has decided to procure debt financing to support the payment for acquiring the trust beneficial interest in "Shin-Narashino Logistics Center II" (the "Property") (Note) (including acquisition costs).

   (Note) For details of acquisition of the Property, please refer to the press release "Notice Concerning Acquisition of Property (Shin-Narashino Logistics Center II)" dated today.

2. Details of Debt Financing

   Term Loan 45B
   1. Lender	The Norinchukin Bank
   2. Amount of Borrowing	¥ 2,700 million
   3. Interest Rate	Basic interest rate (JBA one month JPY TIBOR) + 0.35% (Note 1)
   4. Scheduled Drawdown Date	January 31, 2017
   5. Borrowing Method	Loan agreement with the above Lender is concluded today
   6. Interest Payment Date	From February 20, 2017 as the first interest payment date, and the 20th day of every month thereafter (Note 2)
   7. Principal Repayment Date	June 20, 2024
   8. Principal Repayment Method	Lump-sum repayment of unpaid principal on the Principal Repayment Date
   9. Collateral	Unsecured

   1.	The basic interest rate applicable to a computation period of interest which is paid on the Interest Payment Date (JBA one month JPY TIBOR) is determined two business days prior to the previous Interest Payment Date. For the basic interest rate (JBA one month JPY TIBOR), please see the website of JBA TIBOR Administration (http://www.jbatibor.or.jp/english/).
   2.	If interest payment date is not a business day, the immediately following business day.
   3.	The latest information about borrowings is disclosed on United Urban's website.

   (Notes)

3. Use of Proceeds

   United Urban will use all the proceeds (¥2,700 million) to acquire the Property (including acquisition costs) (acquisition price: ¥2,590 million).

4. Balance of Borrowings and Other Interest-Bearing Liabilities after the Debt Financing (Note 1)

   (Millions of yen)

   Before Borrowings	After Borrowings	Change
   Short-term borrowing (Note 2)	-	-	-
   Long-term borrowing (Note 3)	218,757	221,457	＋2,700
   Total	218,757	221,457	＋2,700
   Corporate bonds	40,500	40,500	-
   Total interest-bearing liabilities		259,257	261,957	＋2,700

   1.	Amounts are rounded down to the nearest million yen. Accordingly, adding or subtracting the above interest-bearing liabilities amounts, it is not always equal to the total amount or the amount of increase or decrease.
   2.	"Short-term borrowing" means a borrowing lasting within one year from the drawdown date to the repayment date.
   3.	"Long-term borrowing" means a borrowing lasting over one year from the drawdown date to the repayment date and includes long-term borrowings to be repaid within one year.

   (Notes)

5. Other

For the risks concerning repayment of the borrowing, there are no significant changes from "Risks concerning Borrowings and Investment Corporate Bonds" of "Investment Risks" described in the twenty-fifth fiscal period Securities Report (filed on August 25, 2016).