This translation of the original Japanese notice is provided solely for information purposes. Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
March 24, 2026
REIT Issuer: Daiwa Office Investment Corporation (Stock Code No.: 8976) Representative: Toshisuke Tanaka, Executive Director
Asset Manager: Daiwa Real Estate Asset Management Co. Ltd. Representative: Yoshiki Nishigaki, President and Representative Director
Inquiries to: Kentaro Azumi, General Manager, Acquisition and Asset Management Division (Tel: +81-3-6215-9649)
Notice Concerning Acquisition of Trust Beneficiary Interest in Domestic Real Estate (Two Properties) and Divestment of Trust Beneficiary Interest in Domestic Real Estate (Daiwa Azabudai)
Daiwa Office Investment Corporation (the "Investment Corporation") hereby announces that Daiwa Real Estate Asset Management Co. Ltd. (the "Asset Manager"), to which the Investment Corporation entrusts management of its assets, has determined today to acquire and divest trust beneficiary interest in real estate (the "Acquisitions" and "Divestment" and collectively as the "Transactions") as follows.
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Summary of the Transactions
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Summary of the Assets to Be Acquired
Asset Name
Date of Conclusion
of Purchase Agreement
Scheduled Date of Acquisition
Seller
Scheduled Price
(Note 2)
Hamamatsucho PREX
March 24, 2026
March 27, 2026
Not disclosed
(Note 1)
7,150 million yen
Prime Sendagaya Building
March 31, 2026
Not disclosed
(Note 1)
19,400 million yen
Total
26,550 million yen
(Note 1) The seller is a domestic corporation, but it has not been disclosed as no consent for disclosure has been obtained.
(Note 2) "Scheduled Acquisition Price" does not include expenses related to the acquisition, settlement amounts of fixed asset tax and city planning tax, and consumption tax and local consumption tax. The same applies hereinafter.
(Note 3) The intermediary of the Acquisitions does not correspond to an interested person, etc.
- Summary of the Asset to Be Divested
Asset Name
Date of Conclusion of Sales Agreement
Scheduled Delivery Date
Purchaser
Scheduled Sale Price (Note 2)
Book Value
Capital Gain or Loss from Divestment
(Note 3)
Daiwa Azabudai
March 24,
2026
March 27,
2026
Not disclosed
(Note 1)
2,240 million yen
1,487 million yen
752 million yen
(Note 1) The purchaser is a domestic corporation, but it has not been disclosed as no consent for disclosure has been obtained.
(Note 2) "Scheduled Sale Price" does not include expenses related to the sale, settlement amounts of fixed asset tax and city planning tax, and consumption tax and local consumption tax. The same applies hereinafter.
(Note 3) This is a reference value calculated based on the difference between the scheduled sale price and the book value (at the end of November 2025) and may differ from the actual capital gain or loss from divestment.
(Note 4) The intermediary of the Divestment does not correspond to an interested person, etc.
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Summary of the Assets to Be Acquired
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Reason for the Transactions
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The Acquisitions
The Investment Corporation believes that the acceleration of internal growth, strengthening of the portfolio through property replacements, and steady promotion of the return of unrealized gains will lead to improving unitholder value and increasing the investment unit price. As property sales had temporarily taken precedence, it is now considering reinvesting in new properties by leveraging its borrowing capacity and cash on hand in order to increase NOI, which represents its core profits.
Hamamatsucho PREX
This property is a six-minute walk from Hamamatsucho Station on the JR Yamanote and Keihin-Tohoku Lines and the Tokyo Monorail, a seven-minute walk from Daimon Station on the Toei Oedo Line and Asakusa Line, and a six-minute walk from Shibakoen Station on the Toei Mita Line. It therefore occupies a highly convenient location with access to three stations served by six lines. It also offers excellent access to Tokyo and Shinagawa Stations, where Shinkansen trains arrive and depart, as well as Haneda Airport. Given its excellent transportation convenience for both traveling to central Tokyo and other major domestic and international cities, the area offers a strong competitive advantage for business development.
The property has 11 floors above ground and a total floor area of 2,436.69 m2, with a leased floor area per floor of around 69 tsubo. It is a recent building completed in 2023 equipped with high ceilings (2,700 mm) on standard floors, facilities such as raised floors and zoned air-conditioning, a first-floor shared lounge, a rooftop terrace, etc., enabling use aligned with office tenants' preferred work style. The leased office areas, which feature state-of-the-art design, functionality, and energy-saving performance, are also available in three different layout configurations, providing the flexibility to accommodate tenants with a variety of work styles.
Given its favorable location and functionality, it was deemed to be a competitive property with strong advantages suited to the latest office needs, which should contribute to the profitability of the Investment Corporation's portfolio.
Prime Sendagaya Building
Located in the Sendagaya/Jingumae area, this property provides access to four stations served by five lines. It is a six-minute walk from Sendagaya Station on the JR Chuo and Sobu Lines, a five-minute walk from Kitasando Station on the Tokyo Metro Fukutoshin Line, a seven-minute walk from Kokuritsu-Kyogijo Station on the Toei Oedo Line, and a nine-minute walk from Yoyogi Station on the JR Yamanote Line. It is positioned between two major terminal stations, Shinjuku and Shibuya, which are high-traffic commercial districts, near the Harajuku/Omotesando area, which is a hub for the latest trends. There is strong demand from apparel manufacturers and fashion wholesalers and retailers, who focus on image and access to commercial areas, but the office stock in the area mostly consists of relatively compact small and mid-size buildings.
The property has eight aboveground floors and a total floor area of 7,683.19 m2, with a leased floor area per floor of around 247 tsubo. Completed in 2009, the building is equipped with high ceilings (2,800 mm) on standard floors and facilities such as raised floors and zoned air-conditioning. Within the area, it is a highly regarded property with very few competitors in terms of age, floor area, facilities, and functionality. It is a highly advantageous, competitive property whose grade is aligned with the latest office market needs, located in an area that attracts a certain amount of demand from companies that prioritize location. It was therefore deemed that it would make a steady contribution to the earnings of the Investment Corporation's portfolio.
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The Divestment
Daiwa Azabudai is located in the Roppongi/Azabu area, where large-scale redevelopment has been undertaken in recent years. Due in part to the presence of various countries' embassies and consulates nearby, the property maintained a high occupancy rate and was profitable for many years. The tenants were mainly foreign-affiliated companies expanding into Japan for the first time. However, as the building is almost 40 years old, the Investment Corporation recognizes that considerable repairs and capital expenditure would be needed to maintain its competitiveness.
Given the recent growth of the office market, a certain level of continued revenue growth may be expected, but as a result of assessing the costs that would be required in the future, the Investment Corporation arrived at the decision to divest the property based on comprehensive consideration of its current and future portfolio strategy. Furthermore, since the purchaser showed its intent to purchase the property at a sale price exceeding the appraisal value, the Investment Corporation judged that the realization of unrealized gains on this occasion would contribute to the maximization of unitholder value, which was a factor in the decision.
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The Acquisitions
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Details of the Assets to Be Acquired
Asset Name
Hamamatsucho PREX
Type of Specified Asset
Trust beneficiary interest in domestic real estate
Trustee (scheduled)
SMBC Trust Bank Ltd.
Trust Period (scheduled)
From March 27, 2026, to March 31, 2036
Location
2-2-12 Shiba, Minato-ku, Tokyo
Use (Real Property Registry)
Office
Ownership Form
i) Land: Ownership ii) Building: Ownership
Site Area
(Real Property Registry)
327.22 m2
Total Floor Area
(Real Property Registry)
2,436.69 m2
Structure
(Real Property Registry)
Steel-framed structure with flat roof, 11 stories above ground
Construction Date
(Real Property Registry)
January 16, 2023
Building Engineer
Okumura Corporation
Constructor
Okumura Corporation
Structural Design Engineer
Okumura Corporation
Floor Height/Ceiling Height
3,900 mm (for standard floor) / 2,700 mm (for standard floor)
Air-conditioning System/ Raised Floor Laying
Zoned air-conditioning/raised floors
Building Inspection Agency
Urban Housing Evaluation Center Co., Ltd.
Engineering Due Diligence Company
Tokio Marine dR Co., Ltd.
Soil Contamination Risk Survey Company
Earth-Appraisal Co., Ltd.
Probable Maximum Loss Level (Assessor)
5.2% (Sompo Risk Management Inc.)
Acquisition Price
7,150 million yen (excluding acquisition costs, consumption tax, etc.)
Appraisal Value (Appraisal Date)
7,300 million yen
(as of January 31, 2026)
Appraiser
DAIWA REAL ESTATE APPRAISAL CO., LTD.
Collateral
None
Summary of Tenants
Total Number of Tenants
8 (as of the scheduled acquisition date)
Rent Revenue
20 million yen per month (January 2026)
Security Deposit and Guarantee
54 million yen (January 31, 2026)
Total Leased Floor Space
2,309.10 m2 (estimation for the scheduled acquisition date) (Note 1)
Total Leasable Floor Space
2,309.10 m2 (Note 1)
Trend in Occupancy Rates (Note 1)
March 31, 2025
September 30, 2025
Acquisition date (scheduled)
100.0%
100.0%
100.0%
Appraisal NOI yield (Note 2)
3.6%
Depreciation (Note 3)
0.6%
Other Relevant Information
Not applicable.
(Note 1) The figures are based on the data obtained from the seller for the total leased floor space to tenants, total leasable floor space, and trend in occupancy rates of the end tenants.
(Note 2) The figure for appraisal NOI yield is calculated based on net operating income used for the calculation of the income approach value based on the direct reduction process as stipulated in the real property appraisal report and divided by the acquisition price. The figure is rounded to the first decimal place.
(Note 3) The figure for depreciation is the total amount of the six-month depreciation conversion price expected to accrue in the financial period of acquisition and the appropriate expected depreciation charge for the next financial period (six-month period), which are divided by the acquisition price. The figure is rounded to the first decimal place and is not a forecast for the current fiscal period or the next fiscal period onward.
Asset Name
Prime Sendagaya Building
Type of Specified Asset
Trust beneficiary interest in domestic real estate
Trustee (scheduled)
Sumitomo Mitsui Trust Bank, Limited
Trust Period (scheduled)
From March 31, 2026, to March 31, 2036
Location
4-23-5 Sendagaya, Shibuya-ku, Tokyo
Use (Real Property Registry)
Office / Shop
Ownership Form
i) Land: Ownership ii) Building: Ownership
Site Area
(Real Property Registry)
2,185.22 m2
Total Floor Area
(Real Property Registry)
7,683.19 m2
Structure
(Real Property Registry)
Steel-framed structure with flat roof, 8 stories above ground
Construction Date
(Real Property Registry)
May 18, 2009
Building Engineer
TODA CORPORATION
Constructor
TODA CORPORATION
Structural Design Engineer
TODA CORPORATION
Floor Height/Ceiling Height
4,050 mm (for standard floor) / 2,800 mm (for standard floor)
Air-conditioning System/ Raised Floor Laying
Zoned air-conditioning/raised floors
Building Inspection Agency
CENTER FOR INTERNATIONAL ARCHITECTURAL STANDARD
Engineering Due Diligence Company
Tokio Marine dR Co., Ltd.
Soil Contamination Risk Survey Company
Earth-Appraisal Co., Ltd.
Probable Maximum Loss Level (Assessor)
4.9% (Sompo Risk Management Inc.)
Acquisition Price
19,400 million yen (excluding acquisition costs, consumption tax, etc.)
Appraisal Value (Appraisal Date)
20,600 million yen
(as of January 31, 2026)
Appraiser
DAIWA REAL ESTATE APPRAISAL CO., LTD.
Collateral
None
Summary of Tenants
Total Number of Tenants
6 (as of the scheduled acquisition date)
Rent Revenue
61 million yen per month (January 2026)
Security Deposit and Guarantee
634 million yen (January 31, 2026)
Total Leased Floor Space
5,597.28 m2 (estimation for the scheduled acquisition date) (Note 1)
Total Leasable Floor Space
6,177.74 m2 (Note 1)
Trend in Occupancy Rates (Note 1)
March 31, 2025
September 30, 2025
Acquisition date (scheduled)
100.0%
86.7%
90.6%
Appraisal NOI yield (Note 2)
3.6%
Depreciation (Note 3)
0.4%
Other Relevant Information
The road bordering the northwest side of this property's site is a road as defined in Article 42, Paragraph 2, of the Building Standards Act, and the total area of the site used for the road in question is approximately 3.98 m2.
(Note 1) The figures are based on the data obtained from the seller for the total leased floor space to tenants, total leasable floor space, and trend in occupancy rates of the end tenants.
(Note 2) The figure for appraisal NOI yield is calculated based on net operating income used for the calculation of the income approach value based on the direct reduction process as stipulated in the real property appraisal report and divided by the acquisition price. The figure is rounded to the first decimal place.
(Note 3) The figure for depreciation is the total amount of the six-month depreciation conversion price expected to accrue in the financial period of acquisition and the appropriate expected depreciation charge for the next financial period (six-month period), which are divided by the acquisition price. The figure is rounded to the first decimal place and is not a forecast for the current fiscal period or the next fiscal period onward.
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Details of the Asset to Be Divested
Asset Name
Daiwa Azabudai
Type of Specified Asset
Trust beneficiary interest in domestic real estate
Trustee
Sumitomo Mitsui Trust Bank, Limited
Maturity of Trust Period
May 31, 2026
Location
2-3-3 Azabudai, Minato-ku, Tokyo
Use (Real Property Registry)
Shop / Office / Residential / Building manager office / Parking lot / Warehouse
Ownership Form
i) Land: Ownership ii) Building: Ownership
Site Area (Real Property Registry)
323.89 m2
Total Floor Area
(Real Property Registry)
2,099.23 m2
Structure (Real Property Registry)
Steel-framed reinforced concrete structure with flat roof, 9 stories above ground and 2 stories below ground
Construction Date
(Real Property Registry)
April 3, 1984
Book Value
1,487 million yen (November 30, 2025)
Appraisal Value (Date of Valuation)
1,890 million yen
(as of November 30, 2025)
Appraiser
JLL Morii Valuation & Advisory K.K.
Date of Delivery
March 27, 2026
Summary of Tenants (as of November 30, 2025)
Total Number of Tenants
11
Rent Revenue
52 million yen (Note)
Security Deposit and Guarantee
60 million yen
Total Leased Floor Space
1,578.68 m2
Total Leasable Floor Space
1,697.88 m2
Occupancy Rate
92.9%
(Note) This indicates rent revenue for the fiscal period ended November 2025 (June 1, 2025, to November 30, 2025).
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Details of the Sellers and Purchase
The sellers and purchaser are three domestic companies, but they have not been disclosed as consent for disclosure has not been obtained.
There are no capital, personnel, or business relationships between these companies and the Investment Corporation/Asset Manager, and they do not fall under the category of a related party of the Investment Corporation/Asset Manager.
Furthermore, these companies are not an interested person, etc. as stipulated in the Order for Enforcement of the Act on Investment Trusts and Investment Corporations, nor are they a related party as stated in the Rules on Conflicts of Interest in the Asset Manager's internal regulations.
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Scheduled Funding of the Acquisitions
Cash on hand and borrowings will be allocated to the Acquisitions.
For details of the borrowings, please refer to the "Notice Concerning Borrowing of Funds(Including Green Loans)" published today.
- Settlement Method
Lump sum payment upon delivery