Japan Retail Fund Investment : Notice Concerning Acquisition of Trust Beneficiary Interest in G-Bldg. Tenjin Nishi-dori 01 (438.5KB)

Japan Retail Fund Investment Corporation (Tokyo Stock Exchange Company Code: 8953)

News Release - January 23, 2017

Notice Concerning Acquisition of Trust Beneficiary Interest in G-Bldg. Tenjin Nishi-dori 01

Mitsubishi Corp.-UBS Realty Inc. (the "Asset Manager"), the asset manager of Japan Retail Fund Investment Corporation ("JRF"), determined today to acquire a trust beneficiary interest in G-Bldg. Tenjin Nishi-dori 01 (the "Property") as outlined below.

1. Overview of acquisition

   1) Property type	Trust beneficiary right in real estate
   2) Property name	G-Bldg. Tenjin Nishi-dori 01 (Note)
   3) Location	8-22 Tenjin 2-chome, Chuo-ku, Fukuoka-shi, Fukuoka Prefecture
   4) Acquisition price	4,850 million yen
   5) Acquisition date	April 5, 2017 (scheduled)
   6) Appraisal value	5,000 million yen (as of January 1, 2017)
   7) Contract completion date	January 31, 2017 (scheduled)
   8) Seller	SOHGOH REAL ESTATE CO., LTD.
   9) Acquisition funds	Cash on hand (scheduled)
   10) Payment	Full payment at closing

   (Note) Name to be used for management purposes after the acquisition; the property is currently named West Side Tenjin.

2. Reason for acquisition

JRF will acquire the Property for the purpose of further diversifying portfolio assets, increasing the stability and the profitability of its portfolio as well as increasing the proportion of urban-type retail properties in its portfolio.

JRF considered the following factors when making this decision.

Highlight of Acquisition

The Property is a multi-tenant retail property facing Tenjin Nishi-dori, one of the busiest streets in the Tenjin area, which is the largest downtown in Kyushu.

Attractiveness of market

• Large-sized commercial facilities concentrate in Tenjin area, primarily around Tenjin Station; Tenjin area has an extensive trade zone that can attract customers from whole Kyushu Area, primarily on weekends

  Attractiveness of location

• The Property is located on the intersection of "Meiji-dori," a major road in Tenjin area and also a business area lined with office buildings, and a well-received commercial district "Tenjin Nishi-dori," lined with commercial facilities including fast fashion roadside stores and restaurants, and thus, has high visibility from pedestrians

• The Property is an approximately 4-minute walk from "Tenjin Station," which boasts the largest number of passengers among all stations on Fukuoka City Subway Airport Line and an approximately 6-minute walk from "Nishitetsu-Fukuoka (Tenjin) Station" on Nishitetsu Omuta Line

  Attractiveness of facility

• The first and second floors have been leased to Fukuoka Tenjin Store of Camera no Kitamura for 23 years since its opening and upper floors are leased to restaurants

Property photo Wide-areamap

Narrow-area map

3．Overview of the Property

Property name		G-Bldg. Tenjin Nishi-dori 01
Type of asset		Trust beneficiary right in real estate
Trust beneficiary		Resona Bank, Limited
Trust period		December 20, 2007 - April 30, 2027 (scheduled)
Location (address)		8-22 Tenjin 2-chome, Chuo-ku, Fukuoka-shi, Fukuoka, Japan
Land	Area	460.09m2
	Zoning	Commercial district	Type of possession	Ownership
Building	Structure / stories	9 floors above ground and one basement floor, SRC-structure with flat roof
	Total floor area	3,238.87 m2
	FAR/building-to-land ratio	700% / 80%	Type	Retail / Office
	Completion date	November 27, 1989	Type of possession	Ownership
	Design	Matsushima Kenchiku Kankyo Sekkei Co., Ltd.
	Construction	Consortium of Taisei Corporation and Tokai Kogyo Co., Ltd.
	Constructional inspector	Fukuoka-shi
	PML	0.7% (Based on the earthquake risk analysis report jointly prepared by Engineering and Risk Services Corporation and OYO RMS Corporation)
Acquisition price		4,850 million yen
Appraisal value		5,000 million yen (as of January 1, 2017)
Appraiser		CBRE K.K.
Tenant summary	Number of tenant(s) (main tenant)	8 (Camera no Kitamura)(Note 1)
	Annual rent	235 million yen
	Tenant leasehold / security deposit	239 million yen
	Total leased area	2,666.39 m2	Occupancy rate (floor area basis)	100%
	Total leasable area	2,666.39 m2
	Major tenant	Period of contract	Not disclosed (Note 2)
		Type of contract	Not disclosed (Note 2)
		Revision of rent	Not disclosed (Note 2)
		Early termination	Not disclosed (Note 2)
Collateral conditions		N / A
Special notes		As of today, JRF has received a notice to terminate the lease on February 28, 2017 from the tenant occupying the 3rd floor (11.0% of total leasable area). With respect to the defects of the building and equipment pointed out in the engineering report regarding the property, the seller agrees to cure all of such defects, at the responsibility and expense of the seller, before the acquisition of this property by JRF.

• Amounts of less than one million yen are rounded down, and percentages are rounded to the nearest first decimal place.

• "Location" represents the address of each property or the registered address of the building.

• "Land area" is based on descriptions in registry books.

• "Zoning" represents the classification of land by its use, stipulated in Section 1-1, Article 8 of the City Planning Act.

• "Number of tenant(s)" represents the total number of lease contracts effective as of today.

• "Annual rent" is calculated by multiplying the total of monthly rent, monthly common charges, monthly parking charges and signboard fees by 12 (months) based on the lease and other relevant contracts effective as of today.

• "Tenant leasehold / security deposit," "Total leased area" and "Total leasable area" represent the total amount/area based on the lease contracts effective as of today.

(Note 1) JRF plans to lease the Property from Resona Bank, Limited, the trustee, under a master lease; it will then sublet it to each of the tenants described above.

(Note 2) Not disclosed as the tenants have not agreed to the disclosure.

4．Overview of Seller

1)	Name	SOHGOH REAL ESTATE CO., LTD.
2)	Location	31-19 Shiba 2-chome, Minato-ku, Tokyo
3)	Title & name of representative	Keijiro Sekioka (Representative Director)
4)	Line of business	Sales, purchase, exchange and leasing of real estate Management, intermediary and appraisal of real estate Maintenance and cleaning of inside and outside of building Security services Land reclamation Design, management, execution and contract of civil engineering and construction works Sales and import/export of civil engineering and construction equipment and building materials Sales and import/export of housing equipment Mortgage and other loans and loan guarantee Agency business of property and casualty insurance and insurance based on Automobile Liability Security Act Life insurance solicitation Possession and purchase and sales of securities Sales of cigarettes, revenue and postage stamps, food and drink Type II Financial Instrument business Sales, leasing and rental of furniture, household goods, bedding, office appliances, office supplies and electronic devices Any other auxiliary and/or related businesses to the items described above
5)	Capital	100 million yen (as of August 8, 2016)
6)	Date established	December 7, 2001
7)	Net Assets	2,379 million yen
8)	Total Assets	49,850 million yen
9)	Major shareholder and shareholding ratio	Haseko Corporation (99%)
10)	Relationship with JRF / the Asset Manager
Capital relationship Personal relationship Trade relationship	Neither JRF nor the Asset Manager have any capital, personal or business relationships to note with the company. Also, there are no relationships to note between interested parties and affiliated companies of JRF or the Asset Manager and those of the company.
Related parties	The company does not fall under the category of a related party of JRF or the Asset Manager. Also, none of the related parties and affiliated companies of the company fall under the category of related parties of JRF or the Asset Manager.

5．Ownership history of the Property to be acquired

The Property will not be acquired from a seller that falls under the category of a related party of JRF or the Asset Manager.

6．Overview of Brokerage

(1) Overview of Broker

1)	Name	HASEKO REAL ESTATE Inc.
2)	Location	31-19 Shiba 2-chome, Minato-ku, Tokyo
3)	Title & name of representative	Hideki Nakata (Representative Director and President)