Notice Concerning the Acquisition of Property (Chubu Haruhi Logistics Center (sokochi))

Transcription

1 December 21, 2006 For Immediate Release Real Estate Investment Fund Issuer Japan Logistics Fund, Inc. 5-1 Kanda Nishikicho 3-chome, Chiyoda-ku, Tokyo Representative: Executive Director Ryo Yamakawa (Securities Code: 8967) Asset Management Company Mitsui & Co., Logistics Partners Ltd. Representative: President Ryo Yamakawa Contact: Director Tatsuto Igarashi TEL Notice Concerning the Acquisition of Property (Chubu Haruhi Logistics Center (sokochi)) Japan Logistics Fund, Inc. (hereinafter referred to as the Fund ) made the decision to acquire a property on December 21, 2006 as detailed below: 1. Outline of the acquisition (plan) (1) Property to be Acquired: Real estate (Ownership of land with a fixed-term leasehold for business use, namely sokochi) (2) Property Name: Chubu Haruhi Logistics Center (sokochi) (3) Acquisition Price: 685 million yen (excluding acquisition expenses, fixed property tax.) (4) Date of contract: December 21, 2006 (5) Date of closing: December 21, 2006 (6) Seller of Beneficial Interest: Nakanosumise Co., Ltd. (7) Funds Raising: Own funds 2. Rationale for the acquisition The acquisition is made to enhance the Fund's portfolio, in accordance with the investment targets and policies stipulated in its Articles of Incorporation. The property is located within a ten-kilometer radius from the center of the booming regional economy of Nagoya. Its location is well suited for consumer logistics and can be expected to meet the needs of producer logistics as it is situated near one of Japan s leading industrial complexes centered on the automobile industry. The property has excellent access to the expressways of the Chubu region and to such national toll roads as the Tomei and Meishin Expressways. Thus, its advantageous location offers logistical coverage of the entire Chubu region. Stable revenues are assured by a business-use fixed-term land lease contract (20-year contract with nine years remaining) concluded with Ryoshoku Liquor Limited, a major liquor wholesaler. Moreover, the central area of Aichi Prefecture has a shortage of land for logistics properties, and the construction of a large logistics facility will become possible once this contract expires. Such prospects for future internal growth led us to acquire the property.the overview of the property is as follows:

2 (1) Geographical Conditions: The property offers easy access to expressways. It is located 0.7 kilometers from the Kasuga Interchange along the Ichinomiya Route of Nagoya Expressway No. 16 and 1.9 kilometers from the Kiyosu Junction where the Meigi Bypass, which leads to the Meishin Expressway, and the Higashi Meihan Expressway (Nagoya Beltway No. 2) meet. The property is situated in a complex of logistics facilities located within a ten kilometer radius from central Nagoya City. The land has an appropriate environment for logistics work and is of a suitable size for siting a centralized logistics center. (2) Tenant: Ryoshoku Liquor owns and manages the logistics center built on the property based on a business-use fixed-term land lease contract. Ryoshoku Liquor is a consolidated subsidiary of Ryoshoku Limited, a major food wholesaler. 3. Outline of the property to be acquired (1) Details of the real estate which constitutes the trust asset: Asset type Real estate (Ownership of land with a fixed-term leasehold for business use, namely sokochi) Land Location (*) 92, Gougashima, Shimonogou, Haruhi, Nishikasugai, Aichi Site Area (*) 10, m 2 Use district Semi-industrial district Floor-area ratio 200% Building-to-land ratio 60% Type of ownership Ownership Appraised value 707 million yen Real estate appraiser Tanizawa Sogo Appraisal Co., Ltd. Time of Appraisal December 14, 2006 Property management company CB Richard Ellis Asset Service K.K. Special remarks. (*) According to the indication of the real estate register (2) Outline of the lease contract: Name of tenant Ryosoku Liquor Co., Ltd. Type of business wholesale of various liquors Total rent area 10, m 2 Ratio to total rentable area 100% Annual rent 33 million yen Lease period 20 years from December 1, 1995 to November 30, 2015 Lease deposit Lease renewal/revision Type of contract: a business-use fixed-term land lease contract (20- year contract with nine years remaining) Revision of rent: Changes in rent can be requested depending on changes in taxes and public fees, changes in the value of the land, changes in other economic circumstances, or when rent becomes out of line in comparison with rent for similar and neighboring land. Early termination:

3 4. Outline of the seller (1) Name of company: Nakanosumise Co., Ltd. (2) Head office address: 6, Nakamuracho 2-chome, Handashi, Aichi (3) Represented by: Matazaemonkazuhide Nakano, Representative Director (4) Capital: 300 million yen (5) Major Shareholder Not disclosed due to the Seller s intention (6) Main line of business: Property management (7) Relation with the Fund: 5. Outline of the broker (1) Broker Name of company Head office address Represented by Relation with the Fund Name of company Head office address Represented by Relation with the Fund *Collaborative brokerage Mitsui Fudosan Co., Ltd. 1-1, Nihonbashimuromachi 2-chome, Cyuoku, Tokyo Hiromichi Iwasa, Representative Director Mitsui Real Estate Sales Co., Ltd. 1-1, Nishishinjyuku 2-chome, Shinjykuku, Tokyo Yoshifumi Iwasaki, Representative Director (2) Commission million yen 6. Future prospect The effect of this acquisition on the operation performance of the Fund in the business period ending January 2007 is minor and there is no plan to revise the operation performance prospect. Reference Materials Reference Material 1: Income/Expense Forecast Reference Material 2: Appearance Picture of the Building Reference Material 3: Map of the Property *The Fund s website: (End)

4 Reference Material 1: Income/Expense Forecast (Unit: million yen) Income (including auxiliary income) 33 Expenses 7 Tax and public dues 7 NOI (Net Operating Income) 26 (Preconditions for Income/Expense Forecast) The above figures are annual income/expenses eliminating the special factors of the business period in which the acquisition is made and, therefore, are not the forecast for the business period ending January Reference Material 2: Appearance Picture of the Building

5 Reference Material 3: Map of the Property Wide area map Neighboring area map