February 21, 2025
Japan Excellent, Inc. (TSE: 8987)
Kazuhiro Ono, Executive Director
Asset Management Company:
Japan Excellent Asset Management, Co., Ltd.
Representative:
Osamu Inagaki, President
Contact:
Motaharu Himeno
General Manager, Corporate Planning Dept.
TEL: +81-3-5412-7911
Notice Concerning Acquisition and Transfer of Domestic Real Estate Trust Beneficiary Rights (Acquisition of ARK Hills FRONT TOWER and Transfer of JEI Hamamatsucho Building)
Japan Excellent, Inc. (hereinafter "JEI") hereby announces that Japan Excellent Asset Management Co., Ltd. (hereinafter "JEAM"), to which JEI entrusts asset management, made a decision today regarding the acquisition (hereinafter the "Acquisition") and transfer of assets (domestic real estate trust beneficiary rights) (hereinafter the "Transfer" and, together with the Acquisition, the "Transaction") as described below.
1. Overview of the Transaction
(1) Property to Be Acquired
(a) | Property Name | ARK Hills Front Tower |
(b) | Property to Be Acquired | Trust beneficiary rights in real estate |
(c) | Planned Acquisition Price(Note 1) | ¥17,250 million |
(d) | Date of Execution of Acquisition Agreement: | February 21, 2025 |
February 18, 2022 | ||
(e) | Date of Acquisition(planned) | April 15, 2025 |
(f) | Seller | Akasaka 2-chome Godo Kaisha(Note 2) |
(g) | Brokerage | None |
(h) | Funding for Acquisition | Loan and funds on hand |
(i) | Payment Method | Lump-sum payment upon delivery |
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(Note 1) "Planned Acquisition Price" does not include consumption tax, local consumption tax or fees required for the acquisition.
(Note 2) For details of the Seller, please refer to "3. Details of the Property to Be Acquired / (4) Overview of the Seller" later in this document.
(2) Property to Be Transferred
(a) | Property Name | JEI Hamamatsucho Building | |||
(b) | Property to Be Transferred | Trust beneficiary rights in real estate | |||
¥9,310 million | |||||
(c) | Planned transfer value(Note 1) | ||||
¥4,189.5 million | ¥5,120.5 million | ||||
(45% quasi coownership) | (55% quasi coownership) | ||||
(d) | Book value(Note 2)(Note 3) | ¥7,900 million | |||
(e) | Difference between planned | ||||
transfer value and book value | ¥1,410 million | ||||
(c) - (d)(Note 2)( Note 3)(Note 4) | |||||
(f) | Date of Execution of | February 21, 2025 | |||
Acquisition Agreement | |||||
(g) | Transfer date (planned) | November 28, 2025 | January 16, 2026 | ||
(h) | Date of receipt of proceeds | November,28,2025 | January 16, 2026 | ||
(planned) | |||||
(i) | Party receiving transfer | Not stated because consent for disclosure has not been received by | |||
the party receiving transfer (Note 5) | |||||
(j) | Brokerage | Yes(Nippon Steel Kowa Real Estate Co., Ltd.) | |||
(Note 1) "Planned transfer value" does not include fees related to the transfer, the JEI share of the real estate tax and city planning tax, the consumption tax or the local consumption tax.
(Note 2) Figures under one million yen are rounded down.
(Note 3) "Book value" indicates the book value as of December 31, 2024.
(Note 4) These are reference figures calculated as the difference between planned transfer value and the book value as of December 31, 2024 and differ from the gain/loss on sale in accounting.
(Note 5) An overview of the party receiving transfer is as stated in "4. Details of the Property to Be Transferred / (2) Overview of the Party Receiving Transfer" below.
2. Background of the Transaction
The Property to be Acquired is to be acquired through the exercise of the first right of refusal (Note 1) acquired from the Seller, Akasaka 2-chome Godo Kaisha, in May 2022. The decision to acquire the property was made in order to enhance the portfolio based on the investment targets and policies stipulated in Japan Excellent's rules. For aspects that JEI recognized upon determining the acquisition of the Property, please refer to "3. Details of the Property to Be Acquired / (1) Evaluation of the Property to Be Acquired" below.
In addition, the decision to sell the property was made in light of the fact that it is 30 years old and expenses
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for future repair and renovation work is expected to increase, and that despite the standard floor size of approximately 250 tsubo, it will take time to fill the space when it becomes vacant because it has a layout that cannot be divided.
Through the Transaction, we will strive to improve the quality of our portfolio through asset replacement, and use a portion of the gain on transfer as distributions while also using them to stabilize distributions over the medium to long term.
(Note 1) See the "Notice Concerning Acquisition of a First Right of Refusal for ARK Hills Front Tower" dated May 10, 2022 fore detail on the first right of refusal.
3. Details of the Property to Be Acquired
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Evaluation of the Property to Be Acquired A.Location
The Property offers excellent access to multiple Tokyo Metro subway lines, located four minutes on foot from Tameike Sanno Station on Tokyo Metro Ginza Line and Namboku Line and Roppongi 1- chome Station on Tokyo Metro Namboku Line; seven minutes on foot from Akasaka Station on Tokyo Metro Chiyoda Line. It also offers high visibility, situated along Roppongi Dori. Akasaka area where the Property is located is an international neighborhood with a concentration of foreign embassies and foreign corporations.
B. Building and Facilities
The Property is a complex facility consisting of office, residential, commercial, and car parking facilities. The Trust Asset regarding the trust beneficiary right subject to the Acquisition (hereinafter the "Trust Beneficiary Right") involves the office space and car parking and corresponding right to use the grounds (co-ownership rights and right of mutual use under contract). Standard floor for the office space is about 300-tsubo and regular-shaped, and can be divided. It offers convenience and comfort with a ceiling height of 2,800mm, OA floor of 100mm, and 95Va/m2 power capacity, as well as a rooftop garden for exclusive use by the tenants. It is also environment-friendly, achieving high energy-saving credentials with the use of Low-e glass and LED lights in common areas.
(2) Overview of the Property to Be Acquired
Property Name | ARK Hills Front Tower | ||
Type of Specified Asset(Note 1) | Trust beneficiary rights in real estate | ||
Trustee | Mitsubishi UFJ Trust and Banking Corporation | ||
Trust Establishment Date | May 11,2012 | ||
Lot Number(Note 2) | 2302-1 Akasaka 2-chome, Minato-ku, Tokyo and other | ||
Location | |||
Address | 23-1 Akasaka 2-chome, Minato-ku, Tokyo | ||
Use(Note 3) | Office, car parking, machine room | ||
Area | Land(Note 4) | 2,000.32 m2 |
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Building(Note 5) | 24,207.77 m2 | ||
Structure(Note 2) | Steel-framed structure and steel-framed reinforced concrete | ||
structure with flat roof B1/22F | |||
Completion Date(Note 2) | January 24, 2011 | ||
Basic Design: Mori Building Co., Ltd., Plantec Architects, Inc., | |||
Yamashita Sekkei, Inc., Kenchiku Setsubi Sekkei Kenkyusho | |||
Building Designer | Execution Design, Supervision: Taisei Corporation, Kenchiku | ||
Setsubi Sekkei Kenkyusho | |||
Design Manager: Plantec Architects, Inc., Yamashita Sekkei, Inc. | |||
Constructor | Taisei Corporation | ||
Building Certification Agency | The Building Center of Japan | ||
Type of | Land(Note 7) | Ownership (Co-ownership) | |
Ownership(Note 6) | Building(Note 8) | Compartmentalized ownership (partial co-ownership) | |
Appraisal Value | ¥17,300million | ||
Appraisal Date | February 1, 2025 | ||
Appraiser | Japan Real Estate Institute | ||
PML | 1.8% (Based on the Building Survey Report on PML Assessment | ||
prepared by Sompo Risk Management Inc.) | |||
Collateral | None | ||
Property Management Company(Note 9) | Nippon Steel Kowa Real Estate Co., Ltd., other | ||
Master Lease Company(Note 10) | Nippon Steel Kowa Real Estate Co., Ltd. | ||
1. For the office section on the 18th floor of the Property, an | |||
agreement has been executed between the Trustee and other Co- | |||
owners, which sets forth that if a co-owner is to transfer its interest | |||
to a party other than another co-owner, a notice shall be given to | |||
other co-owners, and other co-owners who intend to acquire such | |||
interest must be added to the counterparties of transfer negotiation. | |||
2. The Trust Beneficiary Rights Purchase and Sale Agreement | |||
Other Relevant Information | between JEI and the Seller sets forth that where JEI is to sell or | ||
otherwise dispose of the Trust Beneficiary Rights, or the Trustee is | |||
to consider the sale of or otherwise dispose of the Trust Asset | |||
("Sale, etc." hereinafter in this paragraph), that person shall be | |||
notified of such fact, and if notification of has intent to acquire | |||
from the person who initially created the trust is received within 30 | |||
days of said notification, the person who initially created the trust | |||
shall be added to the counterparties of the Sale, etc., and be treated | |||
in good faith. | |||
(Note 1) The type of the Property to Be Acquired. |
(Note 2) The descriptions of "Lot Number," "Structure," and "Completion Date" are based on information in the land registry for the entire building.
(Note 3) "Use" indicates the use of the space exclusively-owned or co-owned by the Trustee based on the indication on the land registry.
(Note 4) The total area for the site of the Property indicated on the land registry is stated.
(Note 5) The total floor area for the entire building indicated on the land registry is stated.
(Note 6) "Type of Ownership" indicates the type of ownership by the Trustee. "Compartmentalized ownership" means ownership of exclusively-owned spaces of a compartmentalized ownership building.
(Note 7) The Property's site area consists of 27 parcels. The Trustee has the co-ownership (co-ownership ratio: 133,053/151,449) of 19 parcels (1,514.49m2). There is no right of site pertaining to the Property site, and the management regulations stipulate that, the compartmentalized owners may mutually use sections of the site owned by other compartmentalized owners free of charge.
(Note 8) The Trustee owns office sections of the 2nd, 13th to 17th, and 19th to 21st floors, and co-owns the office section of the 18th floor (co-ownership ratio: 47,258/100,845). Total floor area for the office section is 8,752.25m2. In addition, the Trustee co-owns car
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parking section of the 1st, and 3rd to 5th floors (floor area: 2,710.35m2) (co- ownership ratio: 901,005/1,244,803), and the machine
room section of basement floor (floor area: 28.12m2).
(Note 9) For property management services for the exclusive section of the Trust Asset, Nippon Steel Kowa Real Estate Co., Ltd. is entrusted with management of the office section and machine room section, and the co-owner is entrusted with the management of the car parking section.
(Note 10) The Master Lease Company is leasing the office and machine room space of the exclusive section of the Trust Asset for sub-leasing purposes. For the car parking section, the Trustee is not a party to the lease agreement concluded with tenants and grants the authority to the co-owner to lease on its own and receives rents corresponding to the equity interest as compensation for usage income based on such right.
(3) Tenant Summary
Leasable Floor Space(Note 1) | 8,974.08 m2 | ||||
Leased Floor Space(Note 1)(Note 2) | 8,470.98 m2 | ||||
Number of Tenants(Note 3) | 6 | ||||
Monthly Rent(Note 4) | Not disclosed | ||||
Security Deposits and | Not disclosed | ||||
Guarantees(Note 3) | |||||
Occupancy Rate | End of June 2023 | End of Dec. 2023 | End of Jun. 2024 | End of Dec. 2024 | |
100.0% | 94.4% | 94.4% | 94.4% | ||
(Note 1) "Leasable Floor Space" and "Leased Floor Space" are calculated excluding warehouses and other annexed constructions and accompanying facilities, and space for the 18th floor [and the car parking section] are calculated by multiplying the actual area by the co-ownership ratio of the Trustee. The figures are rounded at the second decimal point. Car parking and machine room sections are exclusive section of the Trust Asset, but are excluded from the calculation as accompanying facilities. The same applies hereafter in this section.
(Note 2) Part of the Property is under own company use by the master lease company (16th floor, 345.69m². Hereinafter the "master lease company's own use portion"), and "Leased Floor Space" of the Leasable Floor Space is calculated by adding the master lease company's own use portion to the total Leased Floor Space indicated on the lease agreement executed between the master lease company and the end tenant.
(Note 3) Total number of tenants as of January 31, 2022 (including the master lease company's own use portion). For the car parking section in the exclusive section of the Trust Asset, the Trustee is not a party to the lease agreement concluded with tenants, and grants the authority to the co-owner to lease on its own, and the co-owner is leasing the space to end tenants. The number of end tenants for the car parking section is not disclosed due to an unavoidable reason as consent from the co-owner has not been obtained.
(Note 4) The figure is not disclosed as the consent by the co-owner, etc., has not been obtained.
(4) Overview of the Seller
Name | Akasaka 2-chome Godo Kaisha | |
Location | Tokyo Kyodo Accounting Office, 1-4-1 Marunouchi, Chiyoda-ku, Tokyo | |
Representative Partner: General Incorporated Association Akasaka 2- | ||
Representative | chome | |
Executive Officer: Yohei Sekiguchi | ||
Capital | ¥100 thousands (as of July 31, 2024) | |
Net Assets | ¥680 thousands (as of July 31, 2024) | |
Total Assets | ¥12,708 million (as of July 31, 2024) | |
1. Acquisition, holding, disposal, leasing, and management of real estate | ||
trust beneficiary rights; | ||
Main Business | 2. Acquisition, holding and disposal of real estate trust beneficiary rights; | |
3. Other businesses incidental or related to the businesses stated in each of | ||
the preceding items. | ||
Established | February 28, 2012 | |
Capital | There is no capital relationship with JEI or JEAM to be | |
Relationship | noted. | |
Relationship with JEI/JEAM | Personnel | There are no personnel relationship with JEI or JEAM to be |
Relationship | noted. | |
Business | There is no business relationship with JEI or JEAM to be | |
Relationship | noted. The Seller is the operator of an anonymous | |
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association in which JEI has invested ¥2,362 million | ||
(49.0% of all investments in the Seller based on the silent | ||
partnership), and JEI exercised its first right of refusal | ||
granted when making the investment in this acquisition. | ||
Furthermore, a subsidiary of the Nippon Steel Kowa Real | ||
Estate Co., Ltd., Kowa Real Estate Investment Advisors, | ||
Co., Ltd., is entrusted with the asset management business | ||
from the Seller. | ||
The Seller is a related party of JEI as it is a consolidated | ||
subsidiary of its parent company Nippon Steel Kowa Real | ||
Status as | Estate Co., Ltd., which is a related party of JEI. The Seller | |
Related Party | is a related party of JEAM as a consolidated subsidiary of | |
its parent company Nippon Steel Kowa Real Estate Co., | ||
Ltd. | ||
(5) Status of Owners of Property
Status of Owners of Property | Current Owner/Beneficiary | Previous Owner/Beneficiary | ||
Company Name | Akasaka 2-chome Godo Kaisha | Person other than a person with a | ||
special interest | ||||
Relationship | with | Please refer to "(4) Overview of the | ||
JEI/JEAM | Seller" above. | |||
Background/Reasons | for | For the purpose of investment | ||
Acquisition | ||||
Date of Acquisition | May 11,2012 | |||
Acquisition Price | Omitted because the current | |||
beneficiary has owned the property | ||||
for more than one year. | ||||
- Details of Brokerage Not applicable.
- Conflicts of Interest of JEAM with Regard to the Property to Be Acquired
The Seller is the operator of an anonymous association in which Nippon Steel Kowa Real Estate Co., Ltd. and JEI invest, and falls under the category of "related party" as defined in the Act on Investment Trusts and Investment Corporations (hereinafter the "Investment Trusts Act"). In addition, the Seller falls under the category of "sponsor company" under its internal regulations for transactions with sponsor companies (the "Regulations for Transactions with Sponsor Companies") formulated by JEAM with the aim of eliminating potential conflicts of interest and thereby enabling it to perform proper asset management for JEI. Upon concluding the purchase agreement (the "Purchase Agreement") with said related party and sponsor company, JEAM, in compliance with the Regulations for Transactions with Sponsor Companies, has had the transaction approved at a meeting of its Compliance Committee, which includes outside experts, and deliberated and approved at a meeting of its Investment Committee.
In addition, JEI plans to appoint Nippon Steel Kowa Real Estate Co., Ltd. as the master lease company and property management company for the office portion of the Property, and in making this decision, JEAM, similarly in compliance with the Regulations for Transactions with Sponsor Companies, plans to obtain approval from its Compliance Committee, which includes outside experts, and to deliberate and
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approve this at a meeting of its Investment Committee.
(8) Financial Impact on JEI if the Forward Commitment Cannot be Executed, etc.
The Purchase Agreement falls under "forward commitments, etc., by investment corporations(Note)" defined in the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc." established by the Financial Services Agency. Furthermore, the Purchase Agreement states that if there is a violation of the provisions of the Purchase Agreement by JEI or the Seller after the Purchase Agreement is concluded, the other party may cancel the agreement after providing a period of notice to the violating party and claim an amount equivalent to 10% of the sales proceeds as a penalty. JEI has carefully considered the amount required for the acquisition, the period until delivery and the certainty of the acquisition financing method, and has decided to acquire the Property to Be Acquired based on the judgment that, for each of the factors considered, executing the transaction under the above conditions will contribute to the enhancement of unitholder value.
(Note) Referring to a postdated purchase and sales agreement under which payment and property delivery shall be made at least one month after the conclusion of the agreement, or any other agreement similar thereto.
4. Details of the Property to Be Transferred
(1) Overview of the Property to Be Transferred
Property Name | JEI Hamamatsucho Building (Property Number: I-3) | ||||||||
Type of Specified Asset | Trust beneficiary rights in real estate | ||||||||
Trustee | Sumitomo Mitsui Trust Bank, Limited | ||||||||
Trust Period | October 26, 2003 to June 30, 2026 | ||||||||
Location | Lot Number | 3-5 Hamamatsucho 2-chome, Minato-ku, and others | |||||||
Address | 2-12 Hamamatsucho 2-chome, Minato-ku, Tokyo | ||||||||
Use(Note 1) | Office, car parking | ||||||||
Type of | Land | Ownership (partially leasehold rights) (Note 3) | |||||||
Ownership(Note 2) | Building | Ownership | |||||||
Appraisal Value | ¥8,780 million | ||||||||
Appraisal Date | December 31, 2024 | ||||||||
Appraiser | Japan Real Estate Institute | ||||||||
Details of Leasing | |||||||||
Leasable Floor Space(Note 4) | 6,411.29 m2 | ||||||||
Leased Floor Space (Note 5) | 6,411.29 m2 | ||||||||
Number of Tenants(Note 6) | 1(8) | ||||||||
Monthly Rent (Note 7) | ¥36,718,000 | ||||||||
Security Deposits and | ¥452,196,000 | ||||||||
Guarantees (Note 8) | |||||||||
2023 | 2023 | 2024 | 2024 | ||||||
Occupancy rate | End Jun. | End Dec. | End Jun. | End Dec. | |||||
61.2% | 61.2% | 74.1% | 100.0% | ||||||
(Note 1) "Use" is indicated as presented in the registration record.
(Note 2) The "Type of Ownership" indicates the type of rights held by the trustee for the Property to Be Transferred .
(Note 3) The area of the leased portion of land is 387.85 m2.
(Note 4) "Leasable Floor Space" indicates leasable room area (excluding car parking, warehouses, and other attached buildings and facilities, etc.) as of December 31, 2024.
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(Note 5) "Leased Floor Space" is the leased floor space indicated in the lease agreement with the end-tenant as of December 31, 2024, out of the Leasable Floor Space.
(Note 6) The total number of tenants is listed as 1 because a master lease agreement has been concluded with The Dai-Ichi Building Co., Ltd. as the lessee, and the total number of end tenants as of December 31, 2024 is listed in parentheses.
(Note 7) "Monthly Rent" is the total amount (excluding consumption tax, etc.) of the monthly rent (including common service charges but excluding usage fees for car parking, warehouses, and other attached buildings and facilities, etc.) indicated in the lease agreements (in which the rent is stipulated on a monthly basis) that have been executed with the end tenants as of December 31, 2024, rounded down to the nearest thousand yen.
(Note 8) "Security Deposits and Guarantees" is the total amount of the balance (after deducting the amount of any portion that does not need to be returned) of the security deposits and guarantees of lessees (excluding those for car parking, warehouses, and other attached buildings and facilities, etc.) based on lease agreements executed with end tenants as of December 31, 2024, rounded down to the nearest thousand yen.
(2) Overview of the Party Receiving Transfer
The party receiving transfer of the Property to be Transferred is a special purpose company in Japan, but the party receiving transfer is not listed here because it has not given consent to disclose the details thereof. There are no noteworthy capital, personnel or business relationships between the JEI or JEAM and the party receiving transfer. Furthermore, the party receiving transfer and its related parties and affiliates are not related parties of JEI or JEAM.
(3) Details of Brokerage
Name | Nippon Steel Kowa Real Estate Co., Ltd. | ||
Location | 1-8-1 Akasaka, Minato-ku, Tokyo | ||
Representative | Masahiro Miwa, President and CEO | ||
Capital | ¥19,824 million (as of September 30, 2024) | ||
Net Assets | ¥326,373 million (as of September 30, 2024) | ||
Total Assets | ¥1,287,318 million (as of September 30, 2024) | ||
Main Business | Real estate business | ||
Established | March 24, 1997 | ||
Nippon Steel Corporation | |||
Major Shareholders | ML Estate Company, Limited | ||
The Dai-ichi Life Insurance Company, Limited | |||
Nippon Life Insurance Company | |||
As of December 31, 2024, the Broker holds 134,427 units | |||
of JEI's investment unit (10.2% of the total number of | |||
outstanding units). | |||
The Broker is a related party of JEI as it is a consolidated | |||
Capital | subsidiary of its parent company Nippon Steel Kowa Real | ||
Estate Co., Ltd., which is a related party of JEI.also holds | |||
Relationship | |||
4,860 shares of JEAM (54.0% of the total number of | |||
Relationship with JEI/JEAM | |||
outstanding shares) and falls under the category of "related | |||
party" as defined in the "Investment Trusts Act." The | |||
Broker is also a "sponsor company" as defined in the | |||
Regulations for Transactions with Sponsor Companies. | |||
Personnel | As of December 31, 2024, seven JEAM officers and | ||
Relationship | employees are seconded from the Broker. | ||
Business | In the fiscal period ended December 2024, JEI transferred |
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Relationship | the JEI and the Osaka Kogin Building (Land with | |
Leasehold Interest) to the Broker. For details, please refer | ||
to "Notice Concerning Transfer of Domestic Real Estate | ||
Trust Beneficiary Rights and Lease Cancellation (Kowa | ||
Kawasaki Higashiguchi Building, Osaka Kogin Building | ||
(Land with Leasehold Interest))" dated December 24, | ||
2024. | ||
Status as | The Broker is a related party of JEI. | |
Related Party | It is also the parent company of JEAM. |
The brokerage fee paid to the Broker is ¥46,550,000 (not including consumption tax).
(4) Conflicts of Interest of JEAM with regard to the Property to be Transferred
Nippon Steel Kowa Real Estate Co., Ltd., which is the Broker for the Property to Be Transferred, falls
under the category of "related party" as defined in the Investment Trusts Act. The Broker is also a "sponsor
company" as defined in the Regulations for Transactions with Sponsor Companies. Upon concluding the
purchase agreement with said related party and sponsor company, JEAM, in compliance with the said
Regulations, has had the transaction approved at a meeting of its Compliance Committee, which includes
outside experts, and deliberated and approved at a meeting of its Investment Committee.
5. Outlook
For the impact of said acquisition on JEI's operating results for the periods ending June 2025 (from January
1, 2025 to June 30, 2025) and ending December 2025 (from July 1, 2025 to December 31, 2025), please refer
to the "Notice Concerning Financial Report for the Fiscal Period ending December 2024 (REIT)" separately
announced today.
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6. Overview of Appraisal Report
(1) Property to Be Acquired
Property Name | ARK Hills Front Tower | ||||
Appraisal Value | ¥17,300million | ||||
Appraiser | Japan Real Estate Institute | ||||
Appraisal Date | February 1, 2025 | ||||
(Thousands of yen(Note 1)) | |||||
Appraisal Item | Appraisal | Remarks, etc. | |||
Value | |||||
Income Approach Value(Note 2) | 17,300,000 | ||||
Direct Capitalization Price | 17,500,000 | ||||
Operating Revenue | 882,025 | ||||
Gross Potential | Not | ||||
Revenue | disclosed | ||||
Vacancy Loss, etc. | (Note 3) | ||||
Operating Expenses | 292,040 | ||||
Maintenance and | |||||
Management Fees | |||||
Property Management | |||||
Fees | |||||
Utility costs | Not | ||||
Repair costs | |||||
disclosed | |||||
Advertisement for | (Note 3) | ||||
Leasing, etc. | |||||
Taxes and Public Dues | |||||
Insurance | |||||
Other Expenses | |||||
Net Operating Income | 589,985 | ||||
Not | |||||
Interest Income | disclosed | ||||
(Note 3) | |||||
Capital Expenditures | 37,484 | Recorded taking into account the average annual amount in the | |||
Engineering Report and the repair reserve. | |||||
Net Cash Flow | 560,428 | ||||
Assessed based on the base yield for the district and by | |||||
Cap Rate | 3.2% | considering conditions of the property, future uncertainties and | |||
returns of transactions in similar properties. | |||||
Discounted Cash Flow Value | 17,000,000 | ||||
Estimated by comprehensively considering the uniqueness of the | |||||
Discount Rate | 2.8% | target property, with reference to investment returns for similar | |||
properties, etc. | |||||
Assessed by referring to returns of transactions in similar | |||||
properties and comprehensively considering the future trend of | |||||
Terminal Cap Rate | 3.4% | investment returns, risk of the property in question as an | |||
investment target, general forecasts of future economic growth | |||||
rate, trends of real estate prices and rents, and other factors. | |||||
Cost Approach Value(Note 2) | 17,700,000 | ||||
Ratio of Land Value | 84.0% | ||||
Ratio of Building Value | 16.0% | ||||
Other matters noted by the appraiser in conducting appraisal
None
(Note 1) Amounts are rounded to the nearest thousand yen.
(Note 2) The income approach value and the cost approach value are values corresponding to the Trustee's equity interest in the land and building.
(Note 3) The operating revenue, etc. are not disclosed as the consent by the co-owner, etc. has not been obtained.
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