Ichigo Office Reit Investment : New Loans and Interest Rate Swaps

Ichigo Preserves and Improves Real Estate

[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.

Issuer

November 2, 2017

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

Asset Management Company

Representative: Wataru Orii, President

Inquiries: Hiroto Tajitsu, Head of Business Administration Tel: +81-3-3502-4891

Ichigo Office decided today to borrow funds via new loans and to enter into interest rate swaps to lock-in the interest rates on its new loans.

1. Reason for New Loans and Interest Rate Swaps

   To repay an existing loan (JPY 3.98 billion) and hedge against any future rise in interest rates. For details of the loan to be repaid, please refer to "Existing Loan" below.

2. Loan and Interest Rate Swap Details Term Loan IX-A & Swap

   Lender SMBC, Mizuho Bank, BTMU, Resona Bank, Shinsei Bank, Bank of Fukuoka, ORIX Bank

   Loan Amount JPY 1.6 billion

   Use of Proceeds Repayment of existing loan

   Loan Date November 7, 2017

   Principal Repayment Date October 31, 2023

   Principal Repayment Terms Repayment will be made in full on the Principal

   Repayment Date

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

   Interest Payment Date The final day of each month following the Loan Date

   (the first payment date will be November 30, 2017 and the last payment date will be the same as the Principal Repayment Date)

   Collateralized No

   Swap Details

   Counterparty Mizuho Bank

   Contract Date November 2, 2017

   Fixed Interest Rate 0.76125%

   1 As a result of the interest rate swap, the interest rate for Term Loan IX-A is fixed at 0.76125%. However, the interest rate for the payment on the first payment date will be 0.63147%, because the period from November 7, 2017 through November 29, 2017 is less than a month.

   Term Loan IX-B & Swap

   Lender SMBC, Mizuho Bank, BTMU, Resona Bank, Shinsei Bank, Aozora Bank

   Loan Amount JPY 2.38 billion

   Use of Proceeds Repayment of existing loan

   Loan Date November 7, 2017

   Principal Repayment Date October 31, 2025

   Principal Repayment Terms Repayment will be made in full on the Principal

   Repayment Date

   Interest Rate 1M JPY TIBOR + 0.72% (p.a.)2

   Interest Payment Date The final day of each month following the Loan Date

   (the first payment date will be November 30, 2017 and the last payment date will be the same as the Principal Repayment Date)

   Collateralized No

   Swap Details

   Counterparty Mizuho Bank

   Contract Date November 2, 2017

   Fixed Interest Rate 0.94875%

   2 As a result of the interest rate swap, the interest rate for Term Loan IX-B is fixed at 0.94875%. However, the interest rate for the payment on the first payment date will be 0.75147%, because the period from November 7, 2017 through November 29, 2017 is less than a month.

   Notes:

   The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers Association (JBA) two business days before each interest payment date. For current JPY TIBOR rates, please visit the JBA's website: www.jbatibor.or.jp/english/rate

   In the event the interest payment date is not a business day, payment shall be made on the previous business day.

   Existing Loan (to be repaid)

   Lender SMBC, Mizuho Bank, BTMU, Resona Bank, Shinsei Bank, Aozora Bank, Bank of Fukuoka, ORIX Bank

   Loan Amount JPY 3.98 billion (original loan amount: JPY 4.0 billion)

   Use of Proceeds Asset acquisition

   Loan Date May 7, 2015

   Principal Repayment Date November 7, 2017

   Principal Repayment Terms JPY 2,000,000 of the principal has been 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 was July 31, 2015 and the last payment date will be the same as the Principal Repayment Date)

   Interest Rate 1M JPY TIBOR + 0.70% (p.a.)

   Interest Payment Date Final business day of each month following the Loan

   Date (the first payment date was May 29, 2015 and the last payment date will be the same as the Principal Repayment Date)

   Collateralized No

3. Earnings Outlook

   The impact of the new loans and the interest rate swaps on Ichigo Office's April 2018 and October 2018 period earnings has already been reflected in Ichigo Office's earnings forecast announced in the October 30, 2017 release "Earnings Forecast Revision for the April 2018 Fiscal Period and Earnings Forecast for the October 2018 Fiscal Period."

4. Other

Risks related to these loans have no material impact on the "Investment Risks" described in the latest Financial Report submitted July 25, 2017.

Outstanding Loan and Bond Balance (as of November 7, 2017)

(JPY million)

Distribution of Loan and Bond Maturities (as of November 7, 2017)

Before New Loans

8,938

Long-Term Bank Loans Bonds

6,8677,263

9,3149,574

10,233

9,6399,629 9,6339,623

(JPY million)

4,549

3,0003,400

1,200

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Apr 2020

Oct 2020

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024

Oct 2024

Apr 2025

Oct 2025

Oct 2027

After New Loans

Long-Term Bank Loans (Existing Loans) Long-Term Bank Loans (New Loans) Bonds

9,3149,574

10,233

9,639 9,629 9,633 9,623

(JPY million)

4,958 4,549

6,8677,263

4,600

1,600

3,000

3,400

2,380

1,200

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Apr 2020

Oct 2020

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024

Oct 2024

Apr 2025

Oct 2025

Oct 2027