Kenedix Office Investment : Notice Concerning Acquisition of Property (Shinbashi M-SQUARE Bright) and Sale of Properties (KDX Nihonbashi Honcho Building, KDX Nihonbashi Edo-dori Building and KDX Shin-Nihonbashi Building)

Translation of Japanese Original

June 26, 2020

To All Concerned Parties

REIT Issuer:

Kenedix Office Investment Corporation

Jiro Takeda, Executive Director

(Securities Code: 8972)

Asset Management Company:

Kenedix Real Estate Fund Management, Inc.

Masahiko Tajima, President & CEO

Inquiries:

Hiroaki Momoi

Head of Planning Division

Office REIT Department

TEL: [phone]

Notice Concerning Acquisition of Property (Shinbashi M-SQUARE Bright) and Sale of Properties (KDX Nihonbashi Honcho Building, KDX Nihonbashi Edo-dori Building and KDX Shin-Nihonbashi Building)

Kenedix Office Investment Corporation ("the Investment Corporation") announced today, that Kenedix Real Estate Fund Management, Inc. ("the Asset Management Company"), the asset management company for the Investment Corporation, decided to acquire and sell the following properties (respectively "the Acquisition" and "the Sale", and collectively "the Transactions").

1. Outline of the Transactions

(1) Outline of the Acquisition

① Property Name	:	Shinbashi M-SQUARE Bright ("the Acquired Property")
② Type of Property to be Acquired	:	Trust beneficiary interest in real estate
③ Anticipated Acquisition Price	16,300 million yen
:	(Acquisition costs, adjustment of property tax and city-planning tax,
and consumption tax, etc. are excluded.)
:	Zao Properties TMK (non-related party)
:	June 26, 2020
:	June 30, 2020
:	Proceeds from the Sale and borrowings (Note)
:	Payment in full on settlement

• ④ Seller

• ⑤ Date of Contract

• ⑥ Scheduled Date of Acquisition

• ⑦ Acquisition Funds

• ⑧ Settlement Method

Note : Please refer to the press release titled, "N Notice Concerning Debt Financing (Series 174) and Execution of Interest

Rate Swap Agreements " dated today for the details.

(2) Outline of the Sale

① Property Name	KDX Nihonbashi Honcho Building	KDX Nihonbashi Edo-dori Building	KDX Shin-Nihonbashi Building
② Type of Property to be sold	Trust beneficiary interest in real estate
③ Anticipated Sale Price (Note 1)	5,000 million yen	1,550 million yen	3,200 million yen
④ Assumed Book Value (Note 2)	3,905 million yen	1,381 million yen	1,970 million yen
⑤ Difference between Total of Anticipated Sale Price and Total of Assumed Book Value: ③-④ (Note 3)	1,094 million yen	168 million yen	1,229 million yen

⑥ Buyer	Mitsui Fudosan Co., Ltd. (non-related party)
⑦ Date of Contract	June 26, 2020
⑧ Scheduled Date of Sale	June 30, 2020	November 2, 2020
⑨ Use of Proceeds	Funds for acquisition of the Acquired Property, etc.	Cash on hand
⑩ Settlement Method	Payment in full on settlement
⑪ Buyer Selection	Buyer offered the purchase and then the Investment Corporation determined to sell the properties upon verification of the offered price, and conditions of the sale, etc.

Note 1: Transfer costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded from the figure, which is rounded down to millions of yen.

Note 2: Each assumed book value is as of the scheduled date of sale, rounded down to millions of yen.

Note 3: The figure is a referential amount, calculated as a difference beten anticipated sale price and assumed book value, and

different from gain or loss on sale.

The aforementioned properties shall hereinafter be referred to as "the Sold Properties" collectively.

2. Reason for the Transactions

The Investment Corporation is enhancing the quality of the portfolio by reshuffling it to sell properties before potential deterioration in profitability, etc., considering comprehensively the present and future portfolio construction policy, real estate market trends and characteristics of each property in the portfolio (profitability, building age and location, etc.), while engaging in acquisition of properties according to the management strategies.

The Acquisition is implemented with the support by the sponsor to purchase a property that is relatively new and located in the center of Tokyo through transactions based on a negotiations. The Transactions will be a reshuffle of properties through sale of the Sold Properties, which are aging relatively, to Mitsui Fudosan Co., Ltd. and acquisition of a relatively new property located in the center of Tokyo with excellent building specifications. The Investment Corporation's particular expertise from accumulating a track record of improving the portfolio by reshuffling properties in the portfolio to date is fully demonstrated in the Transactions.

The Investment Corporation will continue to involve strategic reshuffling of properties in the portfolio.

By implementing the Acquisition and a portion of the Sale first and then implementing sale of the KDX Shin-Nihonbashi Building portion of the Sale later, rental revenue from the Acquired Property can be earned earlier and rental revenue from some of the Sold Properties can also be secured for a certain period.

The Acquired Property is categorized as a mid-sized office building that the Investment Corporation has focused on as the main investment target, and the following characteristics were evaluated in determining to acquire it.

(1) Location

The Shimbashi area, where the Acquired Property is located, boasts excellent traffic convenience and has long had needs from tenants of various industry and business types and of all sizes, developing as one of the leading representative office areas of Tokyo.

The Acquired Property is an office building in a location with extremely high traffic convenience as it is located in close proximity to a station being approximately 1 minute on foot from Shimbashi Station on the Tokyo Metro Ginza Line and accessible from 8 railway lines and 3 stations (Shimbashi Station on the JR Ueno-Tokyo Line, Yamanote Line and Keihin-Tohoku Line, the Toei Subway Asakusa Line and the Yurikamome Line, Shiodome Station on the Toei Subway Oedo Line, and Uchisaiwaicho Station on the Toei Subway Mita Line).

(2) Building

The Acquired Property is a mid-sized office building constructed in September 2018 that has 11 above-ground floors and 1 underground floor, and a leasable floor area of about 501 m2 (about 152 tsubos) on the standard floors with ceiling height of 2.8 m and OA floors (100 mm). The building is equipped with not only individual air-conditioning systems, 24 mechanical parking spaces and 3 flat parking spaces, but also a rich lineup of facility specifications and BCP functions.

With regularly-shaped, astylar rental rooms and the glass-walled façade being highly visible from Sotobori-dori Avenue making visibility also high, competitiveness is one of the highest in the area.

The portfolio of the Investment Corporation after the Transactions will include 97 properties (total of (anticipated) acquisition price: 441.4 billion yen). The ratios of investment in mid-sized office buildings, in the Tokyo Metropolitan Area (Note 1) and in the Five Central Wards of Tokyo (Note 2) are estimated to be 83.9%, 81.3% and 52.4%, respectively, on a basis of (anticipated) acquisition prices. The Investment Corporation considers the Transactions to contribute to the enhancement of the quality and expansion of the asset size of the portfolio.

Note 1: The Tokyo Metropolitan Area means major cities in Tokyo Metropolitan, Kanagawa, Saitama and Chiba Prefectures. Note 2: The Five Central Wards of Tokyo means Chiyoda-ku, Chuo-ku, Minato-ku, Shibuya-ku and Shinjuku-ku in Tokyo 23

Wards.

3. Details of the Acquired Property

Property Name		Shinbashi M-SQUARE Bright
Type of Specified Asset		Trust beneficiary interest in real estate
Trustee		Mitsubishi UFJ Trust and Banking Corporation
Trust Term		September 30, 2003 to April 30, 2024 (Note 1)
Current Owner (Current Beneficiary)		Zao Properties TMK
Location (Address)		1-9-5 Shibashi, Minato-ku, Tokyo
Usage		Office, Clinic, Retail
Type of Structure		Flat-roofed, Steel-framed, Steel-framed reinforced concrete structure; 11 above-ground floors with 1 underground floor
Site Area	Land	874.36 m2
	Building (Total Floor Area)	7,327.63 m2 (Note 2)
Type of Ownership	Land	Proprietary ownership
	Building	Proprietary ownership
Completion Date		September 5, 2018
Architect Company		Tokyu Construction Co., Ltd.
Construction Company		Tokyu Construction Co., Ltd.
Construction Confirmation Authority		Public Interest Incorporated Foundation Tokyo Metropolitan Center for Community Development and Disaster Resistant Architecture
Probable Maximum Loss		3.49% (Sompo Risk Management Inc.)
Anticipated Acquisition Price		16,300 million yen
Appraisal	Appraisal Value	20,500 million yen
	Base Date for Appraisal	May 1, 2020
	Appraiser	Japan Real Estate Institute
	Details	Please refer to "11. Summary of Appraisal Report".
Existence of Secured Interests after Acquisition		None
Master Lease Company after Acquisition		The Investment Corporation
Property Management Company after Acquisition		Kenedix Property Management, Inc.
Details of Tenant Number of End Tenants Total Leasable Area Total Leased Area Occupancy Rate Monthly Rent and Common Area Charge (Excluding Consumption Tax, etc.) Security and Guarantee Deposit		As of May 31, 2020
		6
		5,392.72 m2
		5,392.72 m2
		100.0%
		60 million yen (Note 3)
		729 million yen (Note 3)
Forecast Income and Expenditure (Annual Amount) Forecast Net Operating Income Forecast Net Operating Income after Depreciation		Please refer to "Reference Material 1 for the details".
		584 million yen
		532 million yen
Special Considerations		Not applicable

Other

Note 1:The Investment Corporation plans to change the end of trust term to the last day of July 2030 at the time of acquisition. Note 2:The following attached structure constitutes the Acquired property and is not included in the total floor area of the Acquired property. Building Type: Parking; Building Structure: Steel construction, alloy-plated steel, sheet-roofed one-story building; Floor Area: 45.48 m2 Note 3:Figures include the total amount of monthly rent, common area charge, and security and guarantee deposit for the end tenants for which the lease period has started as of May 31, 2020.

4. Details of the Sold Properties

Property Name			KDX Nihonbashi Honcho Building
Type of Specified Asset			Trust beneficiary interest in real estate
Trustee			Sumitomo Mitsui Trust Bank, Limited
Location (Address)			1-5-9 Nihonbashi Honcho, Chuo-ku, Tokyo
Usage			Office・Parking
Type of Structure			Flat-roofed, Steel-framed, Steel-framed reinforced concrete structure; 9 above-ground floors with 1 underground floor
Site Area		Land	583.40 m2
		Building (Total Floor Area)	5,110.45m2
Type of Ownership		Land	Proprietary ownership
		Building	Proprietary ownership
Completion Date			January 31, 1984
Acquisition Date			November 12, 2010
Acquisition Price			4,000 million yen
Appraisal		Appraisal Value	4,950 million yen
		Base Date for Appraisal	April 30, 2020
		Appraiser	Daiwa Real Estate Appraisal Co.,Ltd.
		Details	Please refer to "11. Summary of Appraisal Report".
Details of Tenant Security and Guarantee Deposit Number of End Tenants Total Leasable Area Total Leased Area Occupancy Rate			As of May 31, 2020
			230 million yen (Figure is rounded down to millions of yen.)
			8
			3,998.39 m2
			3,998.39 m2
			100.0%
Operating Results Rent Revenue			The total of the actual amounts for fiscal periods ended October 31, 2019 and April 30, 2020
			286 million yen
Net Operating Income		214 million yen
Rental Operating Income (Net Operating Income after Depreciation)		191 million yen

Property Name	KDX Nihonbashi Edo-dori Building
Type of Specified Asset	Trust beneficiary interest in real estate
Trustee	Mitsubishi UFJ Trust and Banking Corporation
Location (Address)	3-9-4 Nihonbashi Honcho, Chuo-ku, Tokyo
Usage	Office・Retail
Type of Structure	Flat-roofed, Steel-framed reinforced concrete structure; 8 above-ground floors