Notice Concerning Acquisition of Property (Loisir Hotel Spa Tower Naha)

Transcription

1 For Translation Purposes Only For Immediate Release January 22, 2016 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: Notice Concerning Acquisition of Property (Loisir Hotel Spa Tower Naha) United Urban Investment Corporation ( United Urban ) hereby announces that Japan REIT Advisors Co., Ltd. ( JRA ), the asset management company to which United Urban entrusts asset management services, has decided today to acquire a property as set forth below. 1. Acquisition of the Property United Urban will acquire trust beneficial interests in the following real estate (the Asset to be Acquired ). (Note 1) Property Number C13 Type of Use (Note 2) Hotel Property Name Loisir Hotel Spa Tower Naha (Note 1) Location Naha, Okinawa Scheduled Acquisition Price (Note 3) 20,000 million Estimated NOI Yield (Note 4) Estimated Post- Depreciation Yield (Note 5) 5.9% 4.2% Scheduled Acquisition Date (Note 1) Feb. 5, 2016 (Notes) 1. The property of Loisir Hotel & Spa Tower Naha (hereinafter may be referred to as Loisir Hotel ) consists of multiple land sites and multiple buildings. United Urban will acquire trust beneficial interest with regard to the real estate that represents a large part of Loisir Hotel s land sites and buildings (hereinafter referred to as the beneficial interest ) and the real estate (part of co-ownership interest of the compartmentalized ownership) (hereinafter referred to as the actual real estate, and this and the real estate related to the beneficial interest are hereinafter collectively referred to as the Property ). United Urban will entrust the actual real estate to Mitsubishi UFJ Trust and Banking Corporation acting as the trustee immediately after the acquisition of that real estate, and hold it in the form of trust beneficial interest in real estate. Consequently, the actual real estate may be described as the asset converted into trust beneficial interest. While the seller of the beneficial interest is not that of the actual real estate, United Urban will acquire both the beneficial interest and the actual real estate as of the same date. Please refer to 2. Details of Acquisition (1) Asset to be Acquired below for details of the Property, and to 2. Details of Acquisition (5) The Seller s Profile below for the overview of the seller. 2. Of the types indicated on the real estate register, the primary type is shown. 3. The price is shown in the amount excluding acquisition costs, property taxes, city planning taxes and consumption taxes and other costs. 4. Estimated NOI Yield indicates the value arrived at when the result of dividing the Estimated NOI (yearly) by the scheduled acquisition price is expressed as a percentage and rounded to first decimal place. NOI (Net Operating Income) means the figure equal to an amount subtracting the rental expenses (excluding depreciation and amortization) from the rental revenues. Estimated NOI (yearly) means an estimated figure for 1 year from the acquisition by United Urban, which is calculated based on the terms and conditions of leasing after the acquisition by United Urban. 5. Estimated Post-Depreciation Yield indicates the value arrived at when the result of dividing (i) an amount deducting Estimated Depreciation and Amortization from Estimated NOI (yearly) by (ii) the scheduled acquisition price is expressed as a percentage and rounded to first decimal place. Estimated Depreciation and Amortization means the estimated figure of the depreciation and amortization for 1 year after the acquisition by United Urban, which is calculated under the straight-line method by applying the depreciation ratio to be derived for each depreciable asset of the Asset to be Acquired in accordance with the useful life thereof, based on the accounting policy of United Urban. 1 / 11

2 2. Details of Acquisition (1) Asset to be Acquired The Asset to be Acquired consists of trust beneficial interest with regard to the real estate (the beneficial interest) and the real estate (actual real estate). The trust assets underlying beneficial interest consist of the real estate specified in 1 to 5 below, and those underlying the actual real estate consist of the real estimate specified in 6 and 7 below: 1. Compartmentalized ownership of the building of Loisir Hotel Naha (main building) (hereinafter may be referred to as the Main Building ) (partial co-ownership) (99.23% of the site area of exclusive ownership portion of the whole main building) 2. Ownership of right of site (co-ownership) of a parcel of land where the Main Building is located (3-9 Nishi, Naha, Okinawa) (hereinafter may be referred to as the land with the right of site placed ) (site right interest: 99.23%) 3. Ownership of two parcels of land adjoining the land with the right of site placed (3-9-8 and Nishi, Naha, Okinawa) 4. Ownership of the building and the land of Loisir Hotel Naha (annex) (hereinafter may be referred to as the Annex ) 5. Ownership of the land of the 1st Parking lot of Loisir Hotel (hereinafter may be referred to as the 1st Parking lot ) 6. Part of co-ownership interest of the compartmentalized ownership of the Main Building (nine compartments) (0.05% of the site area of exclusive ownership portion of the whole main building) 7. Ownership of right of site (co-ownership) of the land with the right of site placed (site right interest: 0.05%) (Type of ownership and site area of the Property to be acquired (Note 1)) Land Building (Notes) Main Building Ownership of right of site (co-ownership) (Note 2) Total land area 8, m 2 Of which the land area corresponding to the interest for convenience to be acquired in this acquisition (Note 2) 8, m 2 Annex Ownership 2, m 2 1st Parking lot Ownership m 2 Main Building Compartmentalized ownership (partial co-ownership) (Note 3) Total aggregated floor area of the building 34, m 2 Of which the floor area of the exclusive ownership portion to be acquired as the beneficial interest in this acquisition Of which the floor area of the exclusive ownership portion for convenience to be acquired as the actual real estate in this acquisition Total of the floor areas of the exclusive ownership portions for convenience to be acquired in this acquisition 21, m m 2 21, m 2 Annex Ownership 11, m 2 1. The site area is described as it appears on the real estate register. 2. Two parcels of land adjoining the land where the Main Building is located will be acquired as the beneficial interest in the form of sole ownership, while the land with the right of site placed will be acquired as the beneficial interest and the actual real estate in the form of ownership of right of site (co-ownership). For the land with the right of site placed, the land area corresponding to the interest for convenience of 8, m 2, which was calculated by multiplying the land area by the proportional interest of ownership of right of site, accounts for 99.31% of the area of all land (three parcels). 3. The total of the floor areas of the exclusive ownership portions for convenience, which was calculated by multiplying the floor area of the compartmentalized ownership building acquired in the form of sole ownership or co-ownership by proportional interest of co-ownership (however, 1 for sole ownership), accounts for 99.28% of the aggregated floor area of the registered exclusive ownership portion of the whole compartmentalized ownership building (21, m 2 ). 2 / 11

3 In addition to the Property stated in the above table, land sites for the parking space in front of the Spa Tower ( and Nishi, Naha, Okinawa: m 2 ) and the 2nd Parking lot of Loisir Hotel ( Nishi, Naha, Okinawa: 3, m 2 ), which is located in the northwest of the Property, will continue to be used as parking spaces by the operator of Loisir Hotel (Loisir Hotels Okinawa Co., Ltd.) as the lessee under the parking space rental agreement. Please refer to Photo, Map and Layout drawing of Reference Material 2 for details of Asset to be Acquired. (2) Reason for Acquisition In accordance with the basic asset-management policy and its investment approach prescribed in its Articles of Incorporation, United Urban will acquire the Asset to be Acquired for the purpose of further expanding its portfolio of hotel properties. In making the decision to acquire the Asset to be Acquired, the following aspects were especially appreciated. 1. Location Loisir Hotel operated in the Property is about a 7-minuite drive from Naha Airport. Due to the good access to the airport, this hotel has an advantage since it not only serves as a base for people enjoying leisure activities or making a business visit in Naha City and surrounding areas, but also is used for stays before and after a round tour of the main and remote islands of Okinawa. The hotel has an established reputation in Okinawa as the nearest resort to Naha Airport. The Naha area in which Loisir Hotel is located is known as an entertainment district where there are many sightseeing places representing Okinawa and shopping zones, such as Shuri Castle and Kokusai Street. Attracting many tourists from Japan and abroad, this area sees strong demand for accommodations. 2. Building The Property consists of two buildings: Loisir Hotel Naha (Main Building), which was completed in 1992, and the Annex (Loisir Spa Tower Naha (Spa Tower) and Loisir Hotel Naha East (East)), which was completed in With a total of 602 guest rooms, this is one of the largest hotels in Okinawa. The hotel can cover different customer segments. The Main Building mainly has guest rooms targeting families and groups with an area of approximately 30 m 2 per room, while East of the Annex offers casual guest rooms suitable for single use for business trips, etc. with an area of approximately 20 m 2 per room, and Spa Tower of the Annex offers high-end guest rooms with an area of approximately 40 m 2 per room, all of which have a terrace so that guests can enjoy open space and luxury accommodation. This is a resort hotel with the only natural hot-spring facilities in Naha City and leisure facilities including indoor and outdoor pools and spa, and also a full-service hotel that can satisfy a wide range of needs from business conventions to wedding and parties having a main banquet hall that accommodates up to approximately 1,000 people, which is rare in Okinawa. Given these facilities, we consider that the hotel has a competitive edge with multiple functions. 3. Tenants, etc. Although the main operator of Loisir Hotel is Loisir Hotels Okinawa Co., Ltd. (hereinafter referred to as the Hotel Operator ), Solare Hotels and Resorts Co., Ltd. (hereinafter referred to as Solare ) manages the hotel. Solare, which works on the operation of 56 hotels in Japan and a hotel abroad and other business, has been involved in the operation of Loisir Hotel since its establishment and positions Loisir Hotel as the flagship hotel. A new long- and fixed-term building lease agreement will be entered into between the trustee and the Hotel Operator by the time when United Urban acquires the Asset to be Acquired. The Hotel Operator and Solare will continue to operate Loisir Hotel & Spa Tower Naha providing quality hotel service with unique regional characteristics even after United Urban s acquisition of the Asset to be Acquired. For the fixed-term building lease agreement to be concluded by the trustee, it will set a fixed rent that generates stable revenue supported by constant demand for leisure activities and business in the Okinawa area as well as a variable rent so that it enjoys upside according to an increase in the market potential of Okinawa and management performance of the hotel. 3 / 11

4 (3) Summary of Acquisition 1. Asset to be Acquired : Trust beneficial interest in real estate and real estate (Note 1) 2. Property Name : Loisir Hotel Spa Tower Naha 3. Scheduled Acquisition Price : 20,000 million 4. Scheduled Agreement Date : January 22, 2016 (conclusion of the Sale and Purchase Agreement) 5. Scheduled Acquisition Date : February 5, 2016 (transfer of the trust beneficial interest and ownership) (Note 1) 6. Seller : SPC (Special Purpose Company) and an operating company domiciled in Japan. (Undisclosed) 7. Financing : Borrowing (Note 2) 8. Date of Payment (Notes) : February 5, 2016 (Scheduled) 1. Please refer to 2. Details of Acquisition (1) Asset to be Acquired for details of acquisition. 2. As of today, we are in negotiations about borrowing with each financial institution. We will announce later once it is determined. (4) Outline of the Property (Note 1) Property Name Loisir Hotel Spa Tower Naha Type of the Property Trust beneficial interest in real estate and real estate (Note 1) Trustee Mitsubishi UFJ Trust and Banking Corporation Period of Trust Agreement From August to March 31, 2026 (Note 3) Main Building 3-9 and Nishi, Naha, Okinawa Annex Nishi, Naha, Okinawa Lot number Location (Note 2) 1st Parking lot and Nishi, Naha, Okinawa Residential Nishi, Naha, Okinawa 12-minute walk from Asahibashi Station (Okinawa Urban Monorail (Yui Access Rail)) 7-minute drive from Naha Airport Use (Note 2) Hotel (Main Building : 417 rooms, Annex : 185 rooms) Site Area Please refer to 2. Details of Acquisition (1) Asset to be Acquired Structure and Scale (Note 2) Main Building SRC RC B1F/12F Annex SRC 13F Type of Ownership Please refer to 2. Details of Acquisition (1) Asset to be Acquired Completion Date (Note 2) Main Building October 1992 Annex June 2009 Initial Building Owner Main Building LIVINGJUHAN Co., Ltd. Annex Loisir Hotels Okinawa Co., Ltd. Constructor Main Building Annex TOYO CONSTRUCTION CO.,LTD. Scheduled Acquisition Price 20,000 million Appraisal Value 20,800 million Date of Value Estimate January 1, 2016 Appraisal Agency (Appraisal Method) Appraisal by Japan Real Estate Institute Probable Maximum Loss (PML) Main Building 7% Annex 6% Collateral None (Administrative laws and regulations) The city road through the north side of the Main Building and the Annex is subject to a city planning road project (the plan determined). When a Special Notations business decision on this plan is made and the business is implemented, the site area of the land may be reduced. Because of the proximity to Naha Airport, the Asset to be Acquired is located under a limited surface provided in Civil Aeronautics Act and thus there is a certain limitation on the height of buildings. Details of Tenant (Note 4) Total Number of Tenants 1 Security Deposit Undisclosed (Note 5) 4 / 11

5 Total Rental Revenues (yearly) (Note 6) Total Leasable Floor Space (Note 7) 1,338 million 45, m 2 Total Leased Floor Space (Note 7) 45, m 2 Occupancy Ratio (Note 8) 100.0% Reference Estimated NOI (yearly) (Note 9) 1,188 million Estimated NOI Yield (Note 9) 5.9% (Notes) 1. Please refer to 2. Details of Acquisition (1) Asset to be Acquired for details of acquisition. 2. Each piece of information in the Location (Lot number), Use, Site Area, Structure and Scale and Completion Date is described as it appears on the real estate register. 3. Period of Trust Agreement of Real estate will be decided as soon as we have completed acquisition, it will be from February 5, 2016 to March 31, Details of Tenant indicates estimated figures assuming the tenancy condition after acquisition by United Urban. 5. Not disclosed, due to unavoidable circumstances where the consent for the disclosure has not been obtained from the tenant. 6. Total Rental Revenues (yearly) indicates fixed monthly rent multiplied by 12, and expected variable rent for 1 year from the time of acquisition of United Urban added, which is then rounding down to the nearest million yen. 7. Total Leasable Floor Space means the total figure of leasable floor space in the space acquired by United Urban, and Total Leased Floor Space is the total figure of space subject to lease, which will be stated in the new fixed-term building lease agreement between the trustee and Hotel Operator by the time when United Urban acquires the Asset to be Acquired. 8. Occupancy Ratio means the percentage obtained by dividing Total Leased Floor Space by Total Leasable Floor Space. 9. For the definition of NOI (Net Operating Income) and Estimated NOI (yearly), please refer to Note 3 of 1. Acquisition of the Property above. The estimated occupancy ratio is 100.0%. (5) The Seller s Profile The seller are a single SPC (Special Purpose Company) and an operating company domiciled in Japan. Details of the seller are not disclosed as the relevant consent has not been obtained. As of today, the seller falls under neither the category of interested parties, etc. (the Interested Party ) under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, as amended) nor the category of the sponsor/stakeholder ( Sponsor/Stakeholder ) under the self-imposed rules (rules for conflicts of interest) of JRA. In addition, United Urban and JRA have no significant capital ties, personal relationships and transactions with the seller, and the seller does not fall under a related party of United Urban and JRA. (6) Aspects of the Owners of the Property and Others The Asset to be Acquired will not be acquired from special related parties of United Urban or JRA. (7) Outline of Intermediary 1. Outline of Broker Company Name Marubeni Real Estate Management Co., Ltd. Address 4/F Shiba 520 Building, Shiba, Minato-ku, Tokyo Representative Tatsumichi Ishimura, Representative Director 1. Leasing, management, operation and administration of real estate (office building, retail property, dormitory, car parking, restaurant, warehouse, etc. and the trust beneficial interest thereof.). Principal Business 2. Purchase and sale, exchange, brokerage, and mediation of real estate (land and building) etc., and agency and consultation of these. 3. Designing, management and contract work for construction work. Capital 100,000 thousand (As of March 31, 2015) Date of Foundation August 10, 1960 Relationship with United Urban or JRA Capital Ties There are no significant capital ties. One employee has been seconded from Marubeni Real Estate Personal Relationship Management Co., Ltd. to JRA. Also, one employee has been seconded from JRA to Marubeni Real Estate Management Co., Ltd. Marubeni Real Estate Management Co., Ltd. acted as a broker for acquisition of one asset in the previous current fiscal period (period ending November 30, 2015) and one asset in the current fiscal period Business Relationship (period ending May 31, 2016), excluding the Asset to be Acquired. Marubeni Real Estate Management Co., Ltd. serves as mater lessee and has been entrusted the property management and building 5 / 11

6 Standing to Related Party management pertaining to multiple properties held by United Urban. In addition, Marubeni Real Estate Management Co., Ltd. is one of the tenants of Shiba 520 Building, a property held by United Urban. Marubeni Real Estate Management Co., Ltd. falls under the categories of both the Related Parties and the Sponsor/Stakeholder, and therefore, JRA is abiding by the predetermined limitations and procedures of JRA. (Note) In view of avoiding the conflicts of interest, JRA has established the restrictions and procedures for transactions, etc. between United Urban and Sponsor/Stakeholder in its internal rules on transactions (including a brokerage of a sale of an asset to be sold) with Sponsor/Stakeholder, which are called the Investment Committee Rules on Transactions with Sponsor/Stakeholder. The specific rules include the following: (i) When acquiring assets from Sponsor/Stakeholder, the acquisition price shall be the same as or less than the appraisal value; (ii) When selling assets to Sponsor/Stakeholder, the sale price shall be the same as or more than the appraisal value; and (iii) When Sponsor/Stakeholder is involved in the brokerage, etc. of acquisition or sale of assets with good reason, the commission for the acquisition or sale of assets shall be not more than 3% of the acquisition or sale price. In addition, specific procedures set forth are that, when United Urban and Sponsor/Stakeholder engage in a transaction, etc., the deliberation and resolution of the Investment Committee (the JRA s autonomous body that enters into deliberations and makes decisions on asset management and performs asset management evaluations, etc.), which includes a chairman and an outside expert, shall be required, and that the resolution must be passed by the unanimous agreement of the members of Investment Committee who have voting rights (a member of the Investment Committee who has a special interest in the resolution may not participate in the vote). The agenda of the Investment Committee are to be deliberated at the Compliance Committee, the chairman of which is Chief Compliance Officer who is in charge of compliance duties, and which includes an outside expert, from the view point of the compliance with laws and regulations, guidelines, internal rules, etc. The same shall apply to the transactions with Sponsor/Stakeholder hereinafter. 2. Amount and Details of Brokerage 300,000 thousand yen (excluding consumption taxes) (8) Transactions with Interested Party and Sponsor/Shareholder Broker, and Property Management Company : Marubeni Real Estate Management Co., Ltd. Marubeni Real Estate Management Co., Ltd. falls under the categories of both the Related Party and the Sponsor/Stakeholder, and therefore, JRA is abiding by the predetermined limitations and procedures of JRA. Concerning the acquisition of the Asset to be Acquired, United Urban will pay Marubeni Real Estate Management Co., Ltd. 300,000 thousand (excluding consumption taxes) as a brokerage commission. 3. Method of Settlement and Acquisition Schedule (1) Method of Settlement The payment to the seller will be a lump-sum payment upon the delivery of the Property, using debt financing. We will announce later, once it is determined. (2) Acquisition Schedule The schedule for acquisition of the Asset to be Acquired is as follows. Date of decision of acquisition Date of conclusion of sale and purchase agreement of January 22, 2016 trust beneficial interest Date of transfer of trust beneficial interest February 5, 2016 Date of payment (Scheduled) 4. Outlook of Operating Condition United Urban does not make any changes to the forecasts of financial results for the twenty-fifth fiscal period (period ending May 31, 2016) and the twenty-sixth fiscal period (period ending November 30, 2016) as the effect of the acquisition of the Asset to be Acquired is immaterial. 6 / 11

7 5. Summaries of Appraisal Report Appraisal Value Appraisal Agency 20,800,000 thousand Japan Real Estate Institute Date of Value Estimate January 1,2016 Item Details (thousand of yen, unless Grounds otherwise indicated) Income approach price 20,800,000 - Price by Direct Capitalization Method 21,000,000 - (1) Total profit (Effective total profit: ) 1. Potential total profit (rental revenues, common area charges) 2. Utility revenues 0 1,509, Parking revenues 0 No parking revenues. 0 Estimated fixed rent and variable rent based on the fixed-term building lease agreement (planned), the rent levels expected to receive under the anticipated lease agreements for the subject property, attributes of lessees, past actual performance and conditions of future business revenue and expenses; assessed rent; and recorded rental revenues based on them. No utility revenues are recorded as the lessee will directly bear the utility expenses under the fixed-term building lease agreement (planned). 4. Other revenues 0 No other revenues. 5. Losses from vacancies 0 Agreements are typically concluded between a lesser and lessees for fixed-term building lease agreements (planned) as well as building lease for hotels, on the assumption of long-term management. Therefore, it is deemed as appropriate to take into consideration risks of vacancies due to tenants moving out under the cap rate. Therefore the losses from vacancies are not recorded. 6. Bad debt losses 0 Judged that no bad debt losses need to be recorded in view of the circumstances, etc. of lessees. (2) Total expenses ( ) 137, Administrative and maintenance fees 8. Utilities 0 9. Repairs 40, Property and other tax 70, Property Management Fee 1, Advertising expenses for tenants, etc. 13. Casualty insurance 3, Other expenses 21, Administrative and maintenance fees comprising cleaning expenses, equipment management costs, security costs, etc. are not recorded as they are born by the lessee under the fixed-term building lease agreement (planned). No utility expenses are recorded as the lessee will bear the expenses under the fixed-term building lease agreement (planned). Recorded expenses for repairs by taking into account future management plans, the level of expenses of similar real estates and the annual average amounts, etc. of repair and renewal costs in the engineering report in reference to prior actual performance. Recorded in accordance with documents related to taxes and other public charges. This is a consignment fee payable to the outsource responsible for overall control of the tenant management service and building management service, etc. In order to assess property management fee, recorded such fee by taking into account the fee rates for similar real estates and the individualities, etc. of the subject property. For the fixed-term building lease agreement (planned), recording advertising expenses for tenants, etc. is deemed as not necessary for reasons including that it is a lease of the entire building. Recorded casualty insurance fee by taking into account the estimation and the rate, etc. of insurance costs of buildings similar to the subject buildings. Parking lot fee, usage fees for purposes other than administrative assets are recorded as other expenses. (3) Net operating income (NOI: (1)-(2) ) 1,372,026-7 / 11

8 (4) Operating profit of lump-sum money 3,600 (5) Capital expenditures (including routine repairs) 94,027 (6) FF&E Reserve 84,500 (7) Net cash flow (NCF: (3)+(4)-(5)-(6)) (8) Cap rate 5.7% For the security deposit, which is lump-sum money having a nature of deposit, an operating profit of lump-sum money is assessed by multiplying the balance of security deposit based on the fixed-term building lease agreement (planned) by an investment yield. We assessed 2.0% as being the appropriate investment yield from the perspective of fund management during the period of deposit, by taking into account the level of interest rate, etc. of both sides of investment and procurement. Renewal costs required for maintenance of the building to be recognized assuming that a projected average amount will be set aside every fiscal period, although the actual costs will arise on an irregular basis; and assessed capital expenditures, taking into account the level of capital expenditure for similar real estates, the age of the building and the annual average amount, etc. of repair and renewal costs in the relevant engineering report. Costs required for renewal of FF&E (furniture, fixtures and equipment) in the building to be recognized assuming that a projected average amount will be set aside every fiscal period, although the actual costs will arise on an irregular basis; and assessed FF&E reserve, taking into account the level of FF&E renewal costs for similar hotels, the age of the building and the status of renewal of the subject property. 1,197,099 - Assessed based on a real-estate investment yield set for each area, by adjusting it with the spreads arising from conditions of location, standing of the building and other conditions for the subject property and by taking into account any future uncertainties and yields from similar real estate deals, etc. Price by Discounted Cash Flow method 20,600,000 - Discount rate 5.5% - Terminal cap rate 5.9% - Cost approach price 15,600,000 Land ratio: 40.3%, Building ratio: 59.7% (Furniture, fixture and equipment are included in the building portion) Attached Materials 1. Portfolio Summary 2. Photo, Map and Layout drawing 8 / 11

9 Reference Material 1 Summary of Portfolio As of February 5, 2016 (Scheduled) [Distribution by Type of Use] (Scheduled) Acquisition Price Type of Use Number of Properties (Note 1) Amount (Millions of yen) Ratio (Note 2) Retail Property , % Office Building , % Hotel 14 89, % Residence 24 44, % Others 8 39, % Total , % [Distribution by Geographical Location] (Scheduled) Acquisition Price Location (Note 3) Number of Properties Amount (Millions of yen) Ratio (Note 2) 6 Central Wards of Tokyo , % 23 Wards of Tokyo 13 60, % Tokyo Metropolitan Area , % Other Regions , % Total , % Notes 1. Each of maricom-isogo / SYSTEM PLAZA YOKOHAMA (Site), a retail property/office building complex and Shin-Osaka Central Tower, an office building/hotel complex has been counted as one property for each type of use, while counted as one property in the total column, respectively. Therefore, the number of properties of each type does not add up to the total. 2. Figures have been rounded to the nearest unit. 3. The definition of geographical location is as set forth below. Tokyo Metropolitan Area (Note a) Other Regions (Note b) 6 Central Wards of Tokyo 23 Wards of Tokyo Tokyo Metropolitan Area Major Japanese cities including Chiyoda-ku, Minato-ku, government designated cities Chuo-ku, Shinjuku-ku, 23 wards of Tokyo except Tokyo Metropolitan Area (excluding those in Tokyo Shibuya-ku, and for 6 Central Wards of excluding 23 wards of Metropolitan Area) and the Shinagawa-ku Tokyo Tokyo surrounding areas thereof Notes a. Tokyo Metropolitan Area refers to Tokyo as well as Kanagawa, Chiba, Saitama, Ibaraki, Gunma, Tochigi and Yamanashi prefectures. b. Including Osaka Prefecture, Nagoya, Fukuoka and other cities. 4. Properties to be acquired contained in the above charts are as follows; Type of Use Location Property Name Scheduled Acquisition Date Loisir Hotel Spa Tower Hotel Other Regions Naha 5. The latest information about United Urban s portfolio is disclosed on United Urban s website. Scheduled Acquisition Price Amount (Millions of yen) Ratio Feb. 5, , % 9 / 11

10 Reference Material 2 Photo, Map and Layout drawing [Photo] 10 / 11

11 [Map] [Layout drawing] 11 / 11