64feecd0-a10c-4e60-a0f5-2e5de284a832.pdf

[Provisional Translation Only]

This English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

Building a richer future together

REIT Issuer

Ichigo Office REIT Investment Corporation (8975)

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Representative: Yoshihiro Takatsuka, Executive Director www.ichigo-office.co.jp/english

May 2, 2016

Asset Management Company

Ichigo Real Estate Investment Advisors Co., Ltd.

Representative: Wataru Orii, President & Representative Statutory Executive Officer Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer

Tel: 03-3502-4891

Notice of New Loans and Interest Rate Swaps

Ichigo Office REIT decided today to borrow funds for the acquisition of five assets as announced in the April 8, 2016 release "Acquisition of Five Office Assets" and is entering into interest rate swap agreements to fix and lock-in the low interest rates on the loans.

  1. Reason for New Loans

    In the current Stage V Lay Foundation for Sustainable Dividend Growth (November 2015 - October 2016) of its multi-year growth strategy, Ichigo Office REIT is executing on its action plan to "Increase portfolio size and scale and be smart in portfolio restructuring" to drive earnings growth for the REIT's shareholders.

    Consistent with this growth strategy, Ichigo Office REIT is strategically restructuring its portfolio by selling four assets and acquiring five assets with preferential negotiation rights as announced in the April 8, 2016 release "Acquisition of Five Office Assets." 1

    Ichigo Office REIT is conducting an early repayment of relatively high-interest loans to reduce interest expenses, as announced in the April 14, 2016 release "Notice of Partial Repayment of Existing Loans" and the April 28, 2016 release "Notice of Partial Repayment of Existing Loans." Simultaneously, Ichigo Office REIT is taking out new loans at lower interest rates and fixing the interest rates via swaps to lock-in the low rates.

    The funds from today's borrowings, together with cash-on-hand, will be used for the acquisition of the five assets.

    1 For details, please refer to the January 28, 2016 release "Sale of Portfolio Asset (Akita Sanno Building)," the March 4, 2016 release "Sale of Portfolio Assets (Ichigo Meieki Building, Ichigo Yokohama Nishiguchi Building)," and the March 16, 2016 release "Sale of Portfolio Asset (Ichigo Saga Building)."

  2. Loan Details

    Syndicate Loan V-A

    Lender Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; The Bank of

    Tokyo-Mitsubishi UFJ, Ltd.; Shinsei Bank, Limited

    Loan Amount 3,900 million yen

    Use of Proceeds Asset acquisition and related costs

    Loan Date May 9, 2016

    Principal Repayment Date May 31, 20221

    Principal Repayment Terms 1,950,000 yen of the principal will be repaid on

    each Partial Principal Repayment Date; the remainder will be repaid in full on the Principal Repayment Date.

    Partial Repayment Date Final business day of January, April, July, and October following the Loan Date (the first payment date will be July 31, 2016 and the last payment date will be the same as the Principal Repayment Date)

    Interest Rate 1M JPY TIBOR + 0.60 % (p.a.)2

    Interest Payment Date Final business day of each month following the Loan Date (the first payment date will be May 31, 2016 and the last payment date will be the same as the Principal Repayment Date)

    Collateralized No

    Syndicate Loan V-B

    Lender Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; The Bank of

    Tokyo-Mitsubishi UFJ, Ltd.; Shinsei Bank, Limited

    Loan Amount 3,900 million yen

    Use of Proceeds Asset acquisition and related costs

    Loan Date May 9, 2016

    Principal Repayment Date November 30, 20221

    Principal Repayment Terms 1,950,000 yen of the principal will be repaid on

    each Partial Principal Repayment Date; the remainder will be repaid in full on the Principal Repayment Date.

    Partial Repayment Date Final business day of January, April, July, and October following the Loan Date (the first payment date will be July 31, 2016 and the last payment date will be the same as the Principal Repayment Date)

    Interest Rate 1M JPY TIBOR + 0.63 % (p.a.)2

    Interest Payment Date Final business day of each month following the Loan Date (the first payment date will be May 31, 2016 and the last payment date will be the same as the Principal Repayment Date)

    Collateralized No

    1 In the event the date is not a business day, repayment shall be made on the next business day. If the next business day is the following month, then the repayment shall be made on the

    immediate previous business day.

    2 From May 9, 2016 until May 30, 2016, the interest rate of Syndicate Loan V-A is 0.62773% and that of Syndicate Loan V-B is 0.65773%. As described in Section 3 below, the effective interest rate remains fixed as a result of the interest rate swaps.

  3. Interest Rate Swap

  4. Reason

    To fix the interest payment amount of Syndicate Loan V-A and Syndicate Loan V-B and hedge against a rise in interest rates.

  5. Swap Details Syndicate Loan V-A

    Counterparty Sumitomo Mitsui Banking Corporation

    Notional Principal 3,900 million yen (Amortized by 1,950,000 yen on each Partial Principal Repayment Date)

    Contract Date May 2, 2016

    Commencement Date May 9, 2016

    Termination Date May 31, 20221

    Interest Rate Fixed Interest Rate: 0.80800%

    Floating Interest Rate: 1M JPY TIBOR + 0.60%

    Interest Payment Date Final business day of each month following the Loan Date (the first payment date will be May 31, 2016 and the last payment date will be the same as the Principal Repayment Date)

    (Note) The effect of the interest rate swap is to fix the interest rate of the above loan at 0.80800%.

    1 In the event the date is not a business day, repayment shall be made on the next business day. If the next business day is the following month, then the repayment shall be made on the immediate previous business day.

    Syndicate Loan V-B

    Counterparty Sumitomo Mitsui Banking Corporation

    Notional Principal 3,900 million yen (Amortized by 1,950,000 yen on each Partial Principal Repayment Date)

    Contract Date May 2, 2016

    Commencement Date May 9, 2016

    Termination Date November 30, 20222

    Interest Rate Fixed Interest Rate: 0.85800%

    Floating Interest Rate: 1M JPY TIBOR + 0.63%

    Interest Payment Date Final business day of each month following the Loan Date (the first payment date will be May 31, 2016 and the last payment date will be the same as the Principal Repayment Date)

    (Note) The effect of the interest rate swap is to fix the interest rate of the above loan at 0.85800%.

    2 In the event the date is not a business day, repayment shall be made on the next business day. If the next business day is the following month, then the repayment shall be made on the immediate previous business day.

  6. Earnings Outlook

    The impact of the new loans on Ichigo Office REIT's earnings and dividend forecasts for the October 2016 and April 2017 fiscal periods is minimal. Therefore, there is no revision to Ichigo Office REIT's earnings and dividend forecast as announced on April 8, 2016.

  7. Other

  8. Risks related to this loan have no material impact on the "Investment Risks" described in the latest Securities Report submitted January 27, 2016.

Ichigo Office REIT Investment Corporation issued this content on 02 May 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 May 2016 08:13:03 UTC. Original document available at http://www.ichigo-office.co.jp/module/_newsPdfReit/431/IchigoOffice_20160502_New Loan_ENG.pdf