Astro Japan Property : Sale of Tokyo Office Property - Daikanyama

ASX/Media Release

8 July 2014

Astro Japan Property Group (ASX: AJA) today announced the sale of an office property from its 33 property portfolio - Daikanyama - for ¥655 million (A$6.9 million approx. at A$=¥95). Financial close of this transaction has been completed. AJA's interest in the building was held through the Japanese special purpose company (SPC), JPT Scarlett Co., Ltd. (JPTS).
This is the fourth asset sold from the JPTS portfolio in the past 10 months, following the recent sales of the Sapporo Toys 'R' Us, Prime Stay Tsukiji and Akabane properties.
The sale price represents a 1.3% premium to the most recent ¥646 million AJA book value of the asset, as at 31 December 2013. The asset represented approximately 0.8% of AJA's portfolio by book value at 31 December 2013.
After making repayment of approximately ¥588 million of debt principal required to release this asset under the loan agreement and netting against the sale proceeds the payment of loan and sale-related costs, net proceeds available to AJA are approximately ¥31 million (approx. A$325,000).
Because the terms of the JPTS loan require, upon individual asset sales, repayment of more than the allocated loan amount for each asset, such sales achieve some de-leveraging of the remaining portfolio. Following the sale, the outstanding remaining loan amount for JPTS is ¥10.5 billion, which represents a loan-to-value ratio for JPTS of 64.3%, down from 66.4% as at 31 December
2013, using AJA's book values as at that date.
Mr Eric Lucas, Senior Advisor to AJA, said "With this latest sale of a non-strategic asset from JPTS we continue to de-leverage and reduce the number of assets in AJA's most cumbersome and expensively financed SPC. This gives us an increasing number of options as we look towards JPTS loan maturity in April next year.
In addition to our ongoing pursuit of similar sales, especially within JPTS, we continue to concentrate on opportunities presented by an improving debt market to make changes to the structure and terms of the liabilities of other SPCs into which AJA is invested."

The property interest sold was the Daikanyama Takara office property, which is a 4-storey multi- tenant office building. The property was built in 1991, and is located 250 metres from Naka Meguro station on the Hibiya subway line and 450 metres from Daikanyama station on the Tokyu Toyoko line.

Eric Lucas John Pettigrew

Senior Advisor Chief Financial Officer

Phone: +61 2 8987 3900 (Australia) Phone: +61 2 8987 3902

+81 3 3238 1671 (Japan)

Astro Japan Property Group is a listed property group which invests in the Japan real estate market. It currently holds interests in a portfolio comprising 32 retail, office and residential properties. Asset management services in Japan are generally undertaken by Spring Investment Co., Ltd.

AJA is a stapled entity comprising Astro Japan Property Trust (ARSN 112 799 854) and Astro Japan Property Group Limited (ABN 25 135 381 663). For further information please visit our website: www.astrojapanproperty.com.

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