[For Information Purpose Only.

The Japanese language press release should be referred to as the original.]

To All Concerned Parties

Name of REIT Issuer:

September 21, 2017

Invincible Investment Corporation Name of representative:

Naoki Fukuda, Executive Director Roppongi Hills Mori Tower

6-10-1 Roppongi, Minato-ku, Tokyo, Japan (Securities code: 8963)

Asset manager:

Consonant Investment Management Co., Ltd. Naoki Fukuda, CEO

Contact: Jun Komo

General Manager of Planning Department (Tel. +81-3-5411-2731)

Notice concerning Acquisition of Assets and Entering into Leasing Contract

Invincible Investment Corporation ("INV") announced the decision to acquire four hotel properties (the "Four Hotel Properties") and enter into new leasing contracts with respect to each of the Four Hotel Properties as decided today by Consonant Investment Management Co., Ltd. ("CIM"), the asset manager of INV.

  1. Overview of Acquisition

    Use

    Property Number

    Property Name

    Location

    Anticipated Acquisition Price (million yen) (Note 1)

    Appraisal Value (million yen) (Note 2)

    Seller (Note 3)

    Category of Specified Assets

    Hotel

    D50

    Hotel MyStays Shin Osaka Conference Center

    Osaka, Osaka

    13,068

    13,200

    HL Investments Tokutei Mokuteki Kaisha

    Trust Beneficial Interest

    D51

    Hotel MyStays Premier Omori

    Shinagaw a-ku, Tokyo

    9,781

    9,880

    Septentrio3 Tokutei Mokuteki Kaisha

    D52

    Beppu Kamenoi Hotel

    Beppu, Oita

    8,870

    8,960

    Monza Tokutei Mokuteki Kaisha

    Use

    Property Number

    Property Name

    Location

    Anticipated Acquisition Price (million yen) (Note 1)

    Appraisal Value (million yen) (Note 2)

    Seller (Note 3)

    Category of Specified Assets

    Hotel

    D53

    Hotel MyStays Sapporo Station

    Sapporo, Hokkaido

    7,880

    7,960

    Suisei Tokutei Mokuteki Kaisha

    Trust Beneficial Interest

    Total

    39,599

    40,000

    (Note 1) Anticipated Acquisition Prices show purchase prices set forth in the purchase and sale agreements for the trust beneficiary interests and do not include adjustments for property taxes, city planning taxes, or national or local consumption taxes.

    (Note 2) Appraisal Value is based on appraisal value stated in the appraisal report by the Tanizawa Sōgō Appraisal Co., Ltd. on the valuation date of July 1, 2017. For details, please refer to "(1) Details of the Four Hotel Properties" of "4. Details of the Four Hotel Properties" below.

    (Note 3) For an overview of the sellers, please refer to "5. Overview of Sellers of the Four Hotel Properties" below. (Note 4) Amounts are rounded down to the nearest unit; hereinafter the same.

  2. Reasons for Acquisitions and Leasing

INV decided to acquire the five hotel properties (Note 1) that are expected to contribute to growth and stability of revenue of the portfolio, from affiliates of the Sponsor, Fortress Investment Group LLC ("FIG"), by using the funds raised through issuance of new investment units, bank borrowings, and INV's own funds.

The acquisition of the Four Hotel Properties, the additional acquisition of the portion of Hotel MyStays Gotanda Station (Note 2) announced in the press release entitled "Notice concerning Acquisition and Sale of Assets" as of July 25, 2017 and the acquisition of the Preferred Equity Interest (as defined below) (these assets are hereinafter referred to as the "Assets to be Acquired") are associated with INV's fifth equity public offering over the last four years, further promoting the realization of INV's external growth strategy to acquire assets which provide revenue growth and further stability, backed by the Sponsor's strong support. Following the acquisition of the Assets to be Acquired, AUM is expected to grow to JPY 357,106 million (Note 3). Hotel properties are expected to account for 69.5% of INV's portfolio, an increase from 63.5% prior to the acquisition of the Assets to be Acquired (Note 4). The average appraisal NOI yield (Note 5) of the Assets to be Acquired is 5.7%. As a result, the appraisal NOI yield (Note 5) of the overall portfolio after the acquisition of the Assets to be Acquired (129 properties) is expected to remain high at 6.5%.

The Four Hotel Properties are located close to high traffic city center locations or popular tourism destinations, are expected to attract a great number of leisure travelers and have good access to destinations popular among foreign tourists. The operation of these Four Hotel Properties is managed by MyStays Hotel Management Co., Ltd. (hereinafter "MHM"), which is owned by the Sponsor, and is a hotel operator combining deep expertise and experience.

The Assets to be Acquired and the underlying asset of the Preferred Equity Interest include "Sheraton Grande Tokyo Bay Hotel", a full-service hotel, and "Beppu Kamenoi Hotel", a resort hotel. The addition of these two hotels helps diversify the hotel-property portfolio, however the ratio of full-service and resort

hotels as a percentage of the overall hotel property portfolio is small. We aim to improve the performance of the hotel portfolio from the perspective of growth and stability by carefully selecting both full-service and resort hotels that are considered highly competitive in terms of locations and specifications that will attract diverse hotel demand.

We also note that INV is acquiring the Hotel MyStays Sapporo Station, its first asset in Sapporo which has had significant growth in inbound travel.

(Note 1) The acquisition of preferred equity interests in Kingdom Tokutei Mokuteki Kaisha backed by "Sheraton Grande Tokyo Bay Hotel" announced in the press release entitled "Notice concerning Acquisition of Asset (preferred equity interest)" as of today (hereinafter the "Preferred Equity Interest") is counted as one hotel property and added to the Four Hotel Properties.

(Note 2) Hotel MyStays Gotanda Station, INV's portfolio property, comprises two buildings adjacent to each other, the Main Building and the Annex Building, and INV currently owns the entire portion of the Main Building and a portion of the Annex Building (the "Owned Portion"). The hotel (the "Existing Hotel Portion") has been operated at a portion of each of the Main Building and the Annex Building that are owned by INV. The portion INV will acquire this time is a portion of the first, second and third floor of the Annex Building (collectively, the "Floor Expansion Portion"), totaling 1,385.46 m2. A conversion work (the "Conversion") has been implemented by the seller in an aim to add 49 hotel rooms.

(Note 3) Based on the (anticipated) acquisition prices. The anticipated acquisition price of the Preferred Equity Interest shows an expected investment amount for Preferred Equity Interest. For the additional acquisition of Hotel MyStays Gotanda Station, anticipated acquisition price is the total of (i) purchase price set forth in the purchase and sale agreement concerning the Floor Expansion Portion, (ii) expenses with regard to the Conversion, (iii) transfer price of the furniture, fixture and equipment (FF&E), and other expenses, and (ii) and (iii) above are the estimated amount as of today and are subject to change. Hereinafter the same.

(Note 4) The Preferred Equity Interest is categorized in the hotel portfolio in terms of use of its underlying asset. (Note 5) The Preferred Equity Interest is excluded from the calculation.

Rent Revenue Composition (Normalized) (Note 1)

Existing Portfolio (Note 3) Post‐Acquisition

(Note 1) The percentages in the above pie chart of "Existing Portfolio" indicate the composition of annual rent revenue in 2017, which is a sum of actual results for the period from January to July and forecasts for the period from August to December, concerning the current properties of INV. In addition, the figures for the properties acquired in March 2017 and May 2017 are calculated on the assumption INV had acquired these properties on January 1, 2017, using the actual figures provided by the sellers of such properties for the period before the acquisition, the actual figures for the period from the acquisition to July 2017 or the forecasts for the period from August to December 2017. The percentages in the pie chart of "Post-Acquisition" are calculated by adding the expected annual operating revenue in 2017, generated by Assets to be Acquired (excluding the Preferred Equity Interest) calculated by CIM to the figures of the "Existing Portfolio". Likewise, it is a sum of actual results for the period from January to July and forecasts for the period from August to December, except for the additional acquisition portion of Hotel MyStays Gotanda Station, for which the figures of actual results are unavailable and the annual forecasts for 2018 are used instead.

(Note 2) The item of "Others" consists of office properties and retail properties; the same shall apply hereinafter.

(Note 3) "Existing Portfolio" is properties and trust beneficial interest (in the property on trust) owned by INV as of today; the same shall apply hereinafter

(Note 4) The ratio figures are rounded to one decimal place.

Invincible Investment Corporation published this content on 21 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 September 2017 08:49:05 UTC.

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