Ichigo Office Reit Investment : Bond Issuance

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

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

September 15, 2017

Asset Management Company

Representative: Wataru Orii, President

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

Ichigo Office REIT today decided to issue JPY 1.2 billion of bonds pursuant to its board resolution on May 29, 2017 in order to diversify and extend the maturity of its borrowings.

1. Bond Details

   Name Ichigo Office REIT First Unsecured Investment Corporation Bonds (Ranking pari passu among Ichigo Office REIT investment corporation bonds)

   Total Issue Amount JPY 1.2 billion

   Form of Bond Certificate Pursuant to the Act on Book Entry of Corporate

   Bonds and Shares, bond certificates will not be issued.

   Issue Price Par (JPY 100)

   Redemption Price Par (JPY 100)

   Interest Rate 0.90% p.a.

   Bond Denomination Amount JPY 100 million Offering Method Public Offering

   Subscription Period September 15, 2017

   Payment Date September 22, 2017

   Collateralized No

   Redemption Date and Method Lump sum redemption on September 22, 2027.

   The bonds may be purchased and cancelled at any time on and after the date following the payment date unless otherwise stipulated by the depository.

   Interest Payment Date March 22 and September 22 every year (the first

   payment date will be March 22, 2018). If a payment date is not a business day, payment shall be made on the previous business day.

   Credit Rating A- Japan Credit Rating Agency (JCR)

   Financial Covenants Subject to negative pledge clause

   Depository Japan Securities Depository Center Fiscal, Issuing, and Paying Agent SMBC

   Underwriters SMBC Nikko Securities, Mizuho Securities, Mitsubishi UFJ Morgan Stanley Securities, Daiwa Securities

2. Reason for Bond Issuance

   To diversify and extend the maturity of Ichigo Office REIT's borrowings.

3. Total Amount to be Raised and Use and Timing of Proceeds

4. Amount of Estimated Net Proceeds JPY 1.184 billion

5. Use of Proceeds and Scheduled Expenditure Dates

   The proceeds will be used for principal repayment of existing loans. Ichigo Office REIT will announce the details of the repayment as soon as they are available.

6. Early repayment (JPY 700 million) of a loan maturing October 31, 2017 (scheduled repayment date September 27, 2017).

7. Repayment of loans (JPY 180 million in total) with maturities between October 31, 2017 and September 22, 2018.

8. The remaining proceeds will be used for partial early repayment of loans maturing March 31, 2020 (scheduled repayment date October 31, 2017).

10. Outstanding Loan and Bond Balance (as of September 22, 2017)

    (JPY million)

    Before Bond Issuance (A)	After Bond Issuance (B)	Change (B) - (A)
    Short-term bank loans	-	-	-
    Long-term bank loans (due within one year)	12,767	12,767	-
    Long-term bank loans	90,481	90,481	-
    Total bank loans	103,248	103,248	-
    Bonds	-	1,200	+1,200
    Total bank loans and bonds	103,248	104,448	+1, 200
    Other interest-bearing liabilities	-	-	-
    Total interest-bearing liabilities	103,248	104,448	+1,200

11. Other

12. Risks related to this bond issuance remain unchanged from the "Investment Risks" described in the latest Financial Report submitted on July 25, 2017.

    Reference: Distribution of Loan and Bond Maturities (as of September 22, 2017)

    (JPY million)

    Long-term bank loans Investment corporation bonds

    8,938

    6,8677,263

    9,563 9,574

    10,233

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

    4,549

    700

    3,000 3,400 1,200

    Oct 2017

    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 2027

    Note: The distribution of loan repayment dates is calculated based on the total loans and investment corporation bonds outstanding as of the maturity date of each loan and bond.