Kenedix Office Investment : Notice Concerning Acquisition of Properties (Edobashi Building・Sendai Honcho Building)

Translation of Japanese Original

April 26, 2022

To All Concerned Parties

REIT Issuer:

Kenedix Office Investment Corporation

Hikaru Teramoto, Executive Director

(Securities Code: 8972)

Asset Management Company:

Kenedix Real Estate Fund Management,Inc.

Masahiko Tajima, President & CEO

Inquiries:

Hiroaki Momoi

Head of Strategic Planning,

Office REIT Department

TEL: [phone]

Notice Concerning Acquisition of Properties (Edobashi Building・Sendai Honcho 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 the following properties ("the Acquisition"), as follows. Furthermore, the sellers of the each asset are related parties, etc. as defined in the Investment Trusts and Investment Corporations Law ("the Investment Trust Law") and related parties as defined in the rules for related-party transactions of the Office REIT Department of the Asset Management Company. These transactions were deliberated and approved by the Asset Management Committee of Office REIT Department after the deliberation and approval of Compliance Committee.

1. Outline of the Acquisition

(1) Propery Name	Edobashi Building	Sendai Honcho Building
(2) Area	Chuo-ku, Tokyo	Sendai, Miyagi
(3) Anticipated Acquisition Price (Note 1)	9,600 million yen	6,360 million yen
(4) Seller	Please refer to below "4. Seller's Profile."
(5) Contract Date	April 26, 2022
(6) Scheduled Acquisition Date	June 30, 2022 or date not later than June 30, 2022 to be agreed separately	Arpil 28, 2022
(7) Planned Acquisition Funds (Note 2)	Debt financing (planned)	Debt financing
(8) Settlement Method	Payment in full on settlement

Note 1: Excluding acquisition costs, adjustment amount of property tax and city-planning tax, and consumption tax, etc.

Note 2: For details concerning debt financing to be the acquisition fund of Sendai Honcho Building, please refer to the press release, "Notice Concerning Debt Financing (Series 192)" dated today. The details concerning the planned acquisition fund of Edobashi Building will be announced upon determination.

Each aforementioned property shall hereafter be referred to as "the Property" and collectively as "the Two Properties".

2. Reason for Acquisition

The decision on the Acquisition was made by comprehensively considering portfolio construction policy, real estate market trends, the characteristics of the Two Properties and other factors to improve and expand the portfolio through expansion of portfolio size.

In the decision to acquire the Two Properties, which are mid-sized office buildings in Tokyo Metropolitan Area (5 central wards) and Other Regional Area that the Investment Corporation has focused on as main investment target, the following characteristics of the Two Properties were evaluated.

• (1) Edobashi Building

  • (i) Area

    Nihonbashi Honcho, where the Property is located, and neighboring Nihonbashi Muromachi are lined with stores such as Nihombashi Mitsukoshi Main Store, and are also foremost office areas in Tokyo, home to many corporate headquarters and branches. With numerous redevelopment plans in the pipeline both in Nihonbashi Honcho and the surrounding area, this is an area that is developing further.

    The Property fronts onto a main avenue (Showa-dori Avenue) and is an office building accessible from multiple train lines and with extremely high traffic convenience being approximately 5 minutes on foot from Mitsukoshimae Station on the Tokyo Metro Ginza Line/Hanzomon Line, approximately 6 minutes' walk from Nihombashi Station on the Toei Asakusa Line, and approximately 6 minutes on foot from Shin-Nihombashi Station on the JR Sobu Main Line.

  • (ii) Building

    The Property has a leasable floor area of about 695 m2 (approximately 210 tsubo) on the standard floors, with ceiling height of 2.6 m. It is equipped with individual air-conditioning systems, OA floors, a security system, 24 mechanical parking spaces, and 3 flat parking spaces. The Property has an imposing facade and the rental rooms are regularly-shaped, taking daylight from both north and south and giving a sense of spaciousness. After the acquisition, the Investment Corporation plans to rennovate the common areas including the entrance hall to further strengthen the Property's competitiveness, as well as implement other environment-friendly construction such as installation of LED lightnings.

• (2) Sendai Honcho Building

  • (i) Area

    The Property is located in an office area in the center of Sendai City, adjacent to a district lined with government agencies such as the Miyagi Prefectural Government and Sendai City Hall, and a bustling neighborhood extending from the front of Sendai Station and consisting mainly of stores, bars and restaurants. Located on a corner, where Hirose-dori Avenue on the south side and Higashi-Ni-bancho-dori Avenue on the west side intersect, the Property is an office building with excellent visibility and with extremely high traffic convenience, being approximately 1 minute on foot from Hirose-dori Station on the Sendai Subway Namboku Line.

  • (ii) Building

    The Property has a leasable floor area of about 612 m2 (approximately 185 tsubo) on the standard floors, with ceiling height of 2.5 m. It is equipped with individual air-conditioning systems, OA floors, a security system, and 56 mechanical parking spaces. With regular-shaped rental rooms that facilitate office layout planning and floors that can be subdivided, the Property's office specifications can meet diverse needs. Currently occupied by tenants from various industries ranging from the branches of major corporations to the offices of local corporations. Several decades have passed since the Property was constructed, however, with the renovatted common areas including the entrance hall and implemented other environment-friendly construction such as installation of LED lightnings, the Property is reasonably competitive within the area and more widely.

Through the acquisition of the Two Properties, the portfolio of the Investment Corporation will expand to 98 properties (total: 455.2 billion yen). The investment ratio of office buildings in the portfolio will be 99.3%, and the investment ratio of the Tokyo Metropolitan Area (Note) in the portfolio will be 80.5% (The figures are based on anticipated acquisition price.).

Note: Tokyo Metropolitan Area refers to major cities in Tokyo Metropolitan, Kanagawa, Saitama, and Chiba

Prefectures.

3. Property Details

(1) Edobashi Building

Property Name	Edobashi Building
Type of Specified Asset	Trust beneficiary interest in real estate
Trustee	Mizuho Trust & Banking Co., Ltd.
Trust Term	February 28, 2002 to March 31, 2030 (Note 1)
Location (Address)	1-7-2 Nihonbashi Honcho, Chuo-ku, Tokyo
Usage	Office
Type of Structure	Steel-framed reinforced concrete structure; one underground and ten above-ground floors
Site Area	Land	924.00 m2
Building (total floor area)	8,076.42 m2
Type of Ownership	Land	Proprietary ownership
Building	Proprietary ownership
Completion Date	November 21,1986
Probable Maximum Loss	6.5% (Sompo Risk Management & Health Care Inc.)
Anticipated Acquisition Price	9,600 million yen
Appraisal	Appraisal Value	10,200 million yen
Base Date for Appraisal	April 1, 2022
Appraiser	Japan Real Estate Institute
Details	Please refer to below "10. Summary of Appraisal Report."
Appraisal Existence of Secured Interests after Acquisition	None
Master Lease Company after Acquisition	The Investment Corporation
Property Management Company after Acquisition	Kenedix Property Design, 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 March 31, 2022
7
5,695.70 m2
5,695.70 m2
100.0%
30 million yen (Note 2)
283 million yen (Note 2)
Forecast Income and Expenditure (Annual Amount) Forecast Net Operating Income Forecast Net Operating Income after Depreciation
342 million yen
320 million yen
Special Considerations	Not applicable
Other	(Note 1)The Investment Corporation plans to change the end of trust term to August 1, 2030 at the time of acquisition. (Note 2) The indicated 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 started. Figures are truncated to thousands of yen.

(2) Sendai Honcho Building

Property Name	Sendai Honcho Building
Type of Specified Asset	Trust beneficiary interest in real estate
Trustee	Sumitomo Mitsui Trust Bank, Limited
Trust Term	March 29, 2002 to May 31, 2028 (Note 1)
Location (Address)	2-3-10 Honcho, Aoba-ku, Sendai City, Miyagi
Usage	Office, Retail
Type of Structure	Flat-roofed, Steel-framed reinforced concrete structure; one underground and twelve above-ground floors
Site Area	Land	1,995.04 m2
Building (total floor area)	13,049.82 m2
Type of Ownership	Land	Proprietary ownership
Building	Proprietary ownership
Completion Date	November 26, 1984
Probable Maximum Loss	1.0% (Sompo Risk Management & Health Care Inc.)
Anticipated Acquisition Price	6,360 million yen
Appraisal	Appraisal Value	6,500 million yen
Base Date for Appraisal	April 1, 2022
Appraiser	Daiwa Real Estate Appraisal Co., Ltd.
Details	Please refer to below "10. Summary of Appraisal Report."
Appraisal Existence of Secured Interests after Acquisition	None
Master Lease Company after Acquisition	The Investment Corporation
Property Management Company after Acquisition	Kenedix Property Design, 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 March 31, 2022
42
8,882.05 m2
8,247.12 m2
92.9% (Note 2)
28 million yen (Note 3)
263 million yen (Note 3)
Forecast Income and Expenditure (Annual Amount) Forecast Net Operating Income Forecast Net Operatin Income after Depreciation
293 million yen
262 million yen
Special Considerations	A superficies has been established on a portion of the land of the Property for the purpose of ownership of facilities required for the high-speed rail business.
Other	(Note 1)The Investment Corporation plans to change the end of trust term to August 1, 2030 at the time of acquisition. (Note 2) As vacancies occurred as of April 1, 2022 and notice of termination of the lease agreement dated May 31, 2022 was submitted, the occupancy rate is

(Note 3)

4. Seller's Profile

(1) Edobashi Building

Company Name Locationexpected to be 90.6% as of June 1, 2022.

The indicated 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 started. Figures are truncated to thousands of yen.

SMFL MIRAI Partners Company, Limited

Title and Name of RepresentativeDescription of BusinessAmount of Capital Date of Incorporation Net Assets

1-3-2 Marunouchi, Chiyoda-ku, Tokyo Tatsuro Terada, President

• 1. Real estate business

• 2. Environmental and energy business

• 3. Others

• 4. Services relating to above-mentioned businesses

200 million yen (as of March 31, 2022) October 1, 2018

Total Assets

Major shareholder and ratio

Not disclosed due to the seller's disapproval. Not disclosed due to the seller's disapproval.

Sumitomo Mitsui Finance and Leasing Company, Limited (100%)Relationship between the seller and the Investment Corporation/the Asset Management Company

Capital RelationshipPersonnel RelationshipBusiness Relationship

Applicability of Related Party Relationships

(2) Sendai Honcho Building

The seller is the owner of Kenedix, Inc. ("KDX"), owning 70% of theoutstanding shares of KDX. KDX is the 100% owner of the Asset Management Company.

One of the employees of the Asset Management Company is seconded from the seller. (as of April 1, 2022)

The seller entered into an Alliance Agreement with the Asset Management Company on October 6, 2021, and provides the Asset Management Company with property information and other services as a supporting company.

The seller is a related party, etc. as defined in the Investment Trust Law or related party as defined in the Office REIT Division Related-party Transaction Rules of the Asset Management Company.

Company Name	G.K. KRF69
Location	2-1-6 Uchisaiwaicho, Chiyoda-ku, Tokyo
Title and Name of Representative	Ippan Shadan Hojin KRF 69, Representative Partner Masanori Nakatsu, Administrator
Description of Business	1. Acquisition, holding, disposal, leasing and management of real estate 2. Acquisition, holding and disposal of trust beneficiary interest in real estate 3. Aforementioned associated business
Amount of Capital	100 million yen (as of March 31, 2022)
Date of Incorporation	December 11, 2017
Net Assets	Not disclosed due to the seller's disapproval.
Total Assets	Not disclosed due to the seller's disapproval.
Major shareholder and ratio	Please refer to "Capital Relationship" below.
Relationship between the seller and the Investment Corporation/the Asset Management CompanyCapital Relationship Ippan Shadan Hojin KRF69, to which KDX contributes the funds, owns entire equity interest in the company. In addition, KDX owns 100% of silent partnership equity interest of Ippan Shadan Hojin KRF69 that operates the company Personnel Relationship There is no special personnel relationship between the Investment Corporation and the Asset Management Company. Business Relationship The asset management business is entrusted to Kenedix Investment Partners, Inc. (KIP), which is the 100% subsidiary of KDX. Applicability of Related PartyThe seller is a related party, etc. as defined in the Investment Trust Law or