Notice Concerning the Acquisition of Property

Translation Purposes Only September 26, 2018 To All Concerned Parties

Name of REIT Issuer: Hulic Reit, Inc. 2-26-9 Hatchobori, Chuo-ku, Tokyo, Japan Eiji Tokita, Executive Officer (TSE Code: 3295) Contact: Asset Management Company Hulic Reit Management Co., Ltd. Eiji Tokita, President and CEO Person to Contact: Kazuaki Chokki, Director, General Manager of Corporate Planning and Administration Department Tel: +81-3-6222-7250

Notice concerning the Acquisition of Property

TOKYO, September 26, 2018 – Hulic Reit, Inc. (hereinafter referred to as “Hulic Reit”) hereby announces that Hulic Reit Management Co., Ltd. (hereinafter referred to as “Hulic Reit Management”), which is entrusted with the management of the assets of Hulic Reit, has today made the decision to acquire the property listed below (hereinafter referred to as the “Property”).

1. Overview of the acquisition

(1) Category Tokyo Commercial Property (Office) (2) Property name KSS Gotanda Building (3) Location Shinagawa-ku, Tokyo (4) Assets planned for acquisition Real estate (5) Anticipated acquisition price 3,450 million yen (Note 1) (6) Date of purchase and sale agreement September 26, 2018 (7) Anticipated acquisition date October 1, 2018 (Note 2) (8) Seller Undisclosed (Note 3) (9) Acquisition funds Borrowings (Note 4) and cash on hand (10) Settlement method Full payment upon delivery Notes: 1. “Anticipated acquisition price” does not include consumption or local taxes or the costs and expenses related to the acquisition. 2. “Anticipated acquisition date” is the anticipated date of acquisition stated in the relevant purchase and sale agreement. 3. “Seller” is a general company in Japan. However, we have not received consent from the seller to disclose its identity. 4. For details, please refer to “Notice Concerning the Borrowing of Funds” announced today.

2. Reason for acquisition In accordance with the basic policies of Hulic Reit, the purpose of acquiring the Property is to improve the portfolio. Hulic Reit Management has assessed the property based on the following factors:

1) Characteristics of the location This property is located along Yamate Street, a one-minute walk from Osaki Hirokoji Station on the Tokyu Ikegami Line, and is a six-minute walk from Gotanda Station along the JR Yamanote Line and others. This location offers excellent access to the nearest train station and major business areas. The JR Yamanote Line, which is used very heavily for business, is one of the nearest train lines, making this an area that is likely to be favored for the convenience of its access to areas such as Shibuya and Shinjuku in which IT companies are concentrated. In recent years, IT companies have left the neighborhoods around Shibuya Station and Ebisu Station as vacancy rates decline and moved to this area instead. This has raised its reputation as an IT office area, and we believe that this site thus appeals to tenants in the IT industry.

2) Characteristics of the property This property was completed in March 1996 and consists of eight floors with one underground level. The first floor is retail space and the second floor and above are office space. The property is a mid-sized office building, with a total floor area of about 4,500 m2 and a standard floor area of about 480 m2. The largest market segment for office buildings in this area is small-scale office buildings of less than about 3,300 m2, which gives this property advantages compared to the typical office buildings in this area. This property is also distinctive for its creative façade, which combines concrete and glass, and has a strong presence given its highly visible location along Yamate Street.

3. Overview of the Properties Specified assets category Real estate Anticipated acquisition price 3,450 million yen Nearest station One-minute walk from Osakihirokoji on Tokyu Ikegami Line Address (domicile) 1-21-8 Nishigotanda, Shinagawa-ku, Tokyo Lot number 1-21-2 Nishigotanda, Shinagawa-ku , Tokyo, and others Building-to-land ratio 100･80% (Note 2) (Note 3) Floor-area ratio 500･300% (Note 3) Land Zoning Commercial area・Semi-industrial area(Note 3) Site area 940.43 m2 (Note 4) Type of ownership Leasehold interest（85.1%）・Proprietary ownership（14.9%） Completed March 1996 Structure SRC Number of floors 8F/B1 Use Offices, stores, parking lot Building Total floor space 4,495.35 m2 (Note 5) Number of parking 39 spaces Type of ownership Proprietary ownership Collateral None PM company Hulic Co., Ltd. (anticipated) (Note 6) Master lease company Hulic Co., Ltd. (anticipated) (Note 6) Appraisal value 3,490 million yen (Date of valuation) (August 31, 2018) Appraisal company DAIWA REAL ESTATE APPRAISAL CO.,LTD. PML value 6.24% (Note 7) Details of Tenant (Note 8) Total leased floor space 3,296.01 m2 Total leasable floor space 3,296.01 m2 Occupancy rate 100% Main tenant Not disclosed (Note 9) Total number of tenants 8 Total lease income (annualized) 192 million yen (Note 10) Lease and guarantee deposits 115 million yen (Note 11) It has been agreed with the owner of the leased land to obtain its consent in Special remarks case of certan events Notes: 1 Details are as of the anticipated acquisition date, confirmed as of September 26, 2018. 2 The building-to-land ratio for the land on which this property is located, that has been designated for commercial use was originally 80%, but the actual applicable ratio was relaxed to 100% as it is a fire-resistant building located in an area with strict construction regulations to prevent fire hazards. In addition, the building-to-land ratio for the land that has been designated as a quasi-industrial district was originally 60%, but the actual applicable ratio was relaxed to 80% as its location on a corner was taken into account and it is a fire-resistant building located in an area with strict construction regulations to prevent fire hazards. 3 The portion of the property within a 30 m distance from the road on the south is designated for commercial use with a building-to-land ratio of 100% and a floor area ratio of 500%. The portion of the property that is over 30 m away from the road on the south is designated for quasi-industrial use and has a building-to-land ratio of 80% and a floor area ratio of 300%. 4 Based on the entry in the property registry. The actual status may differ in some cases. 5 Based on the entry in the property registry. 6 Hulic Co., Ltd. is an Interested Person, etc. of Hulic Reit Management, and is an interested party according to Hulic Reit Management’s Regulations on Transactions with Interested Parties. 7 The figure is based on the earthquake PML appraisal report by Sompo Risk Management & Health Care Inc. 8 Hulic Reit and the master lease company plan to enter into a pass-through master lease agreement with no rent guarantee, total leased floor space, occupancy rate, total number of tenants, total lease income, and lease and guarantee

deposits of the end-tenants to which space is subleased by the master lease company are indicated in the “Details of Tenant.” 9 Not disclosed because approval for disclosure has not been obtained from the tenant. 10 The annualized amount is calculated by multiplying the total amount of monthly rent in each lease agreement with end-tenants (including common services fees; limited to rent for rooms that are occupied by tenants and excluding fees for using warehouses, signboards, and parking lots; also not taking free rent, etc. into consideration and excluding consumption taxes) by 12 and rounding to the nearest million yen. 11 Total lease and guarantee deposits in each lease agreement with end-tenants are rounded to the nearest million yen.

4. Overview of the counterparty of the acquisition The property will be acquired from a general business firm located in Japan, but as the firm has not authorized the disclosure of its name, it will not be disclosed here due to unavoidable circumstances. As of the present date, there are no notable capital relationships, personnel relationships, or business relationships between the seller and Hulic Reit and Hulic Reit Management, or the parties or affiliates related to Hulic Reit and Hulic Reit Management, and the seller does not constitute a related party of Hulic Reit and Hulic Reit Management.

5. Status of the property acquirer The acquisition will not be made from any party in which Hulic Reit and Hulic Reit Management have any special interests.

6. Overview of intermediary Although it is planned that KSS Gotanda Building will be acquired through an intermediary, the intermediary is not disclosed because approval for disclosure has not been obtained from the intermediary. Note that there are no notable capital relationships, personnel relationships or business relationships between the intermediary and Hulic Reit and Hulic Reit Management, or the parties or affiliates related to Hulic Reit and Hulic Reit Management, and the intermediary does not constitute a related party of Hulic Reit, etc. In addition, there are no applicable matters for the other properties.

7. Acquisition schedule Date of purchase and sale Acquisition decision date Anticipated payment date Anticipated acquisition date agreement September 26, 2018 September 26, 2018 October 1, 2018 October 1, 2018

8. Future outlook The acquisition of the Property will not have a material impact on the outlook for the financial results for the fiscal period ending February 28, 2019 (September 1, 2018 to February 28, 2019). Accordingly, there will be no change to the forecasts of financial results for such period.

9. Summary of Appraisal Report Appraisal value 3,490 million yen (Note 1) Appraiser DAIWA REAL ESTATE APPRAISAL CO.,LTD. Date of valuation August 31, 2018

(Millions of yen) Item Breakdown Remarks Estimated based on the DCF method, which derives a value Appraisal value based on income reflecting future changes in net income and was judged to be 3,490 method (Note 2) a more accurate indicator of value, as well as the direct capitalization method to provide additional verification. Appraisal value based on direct 3,760 capitalization method (1) Operating revenue 246

Estimated based on evaluation of stabilized rent levels and common expenses by assessing the property’s medium to Potential gross income 257 long-term competitiveness with reference to the property’s

current rent levels and rent levels and leasing trends for similar real estate in comparable locations Estimated by assessing the property’s competitiveness with Losses from vacancy, etc. 11 reference to the property’s historical occupancy rate as well

as standard occupancy rate levels for similar real estate (2) Operating expenses 92

Maintenance and management Estimated based on the historical results for the property and 14 fee / PM fee (Note 3) fee levels for similar real estate. Estimated based on the historical results for the property and Utility expenses 17 expense levels for similar real estate. Estimated based on the average annual repair and renewal expense over the medium to long term set forth in Repair expenses 3 engineering report for the property with reference to expense levels for similar real estate Tenant recruitment/solicitation Estimated based on expense levels for similar real estate with 2 expenses, etc. reference to the historical results of the property Estimated based on historical results for the property with Taxes and public dues 12 reference to the real estate tax levels for land and the trend of

land prices Estimated with reference to the premium rate for similar real Insurance premium 1 estate For land rent, estimated based on the rent stated in the land lease agreement, after taking into account of the increase rate Other expenses 45 for the taxes and public dues. For other expenses, estimated based on the historical results. (3) Net operating income (NOI: 154 (1) - (2)) (4) Profit from security Estimated based on evaluation of lease deposit and 1 deposits investment return Estimated with refence to capital expenditure levels for

(5) Capital expenditures 9 similar real estate and average annual repair and renewal

expenses, etc. set forth in engineering report for the property Net cash flow (NCF: (3) + (4) - 147 (5)) Estimated by adding or subtracting a spread determined based on the characteristics of the target real estate to a standard Cap rate 3.9% yield for properties with similar uses located in the lowest risk areas Appraisal value based on DCF 3,370 method Estimated based on the method of comparing similar real estate transactions and the method of evaluating based on Discount rate 3.6% financial assets yields and the individual characteristics of the target real estate, as well as feedback from investors.

Estimated based on the cap rate at the time of valuation with reference to the possibible increase of capital expenditures Terminal cap rate 4.0% due to aging of the property as well as uncertainty of real estate market Appraisal value based on cost method 2,960 (Note 2) Ratio of land (Proprietary 16.4% ownership) Ratio of land (Leasehold interest) 65.4% Ratio of building 18.2%

Other matters considered by appraiser in determination of None appraisal value Notes: 1. Appraisal value based on the income method that reflects the profitability and investment return of the Property is used. 2. Appraisal values are rounded to the nearest million yen. Such appraisal values do not represent the revenue and expenses forecast by Hulic Reit or Hulic Reit Management. 3. The maintenance and management fee and PM fee stated above are combined, because individual disclosure of the maintenance and management fee and PM fee amounts may affect the other transactions with each contractor with respect to building management and PM services, which could pose an obstacle to efficient performance of services by Hulic Reit and could harm unitholder interests.

10. Overview of Building Inspection Report Cost of urgent/short-term repairs Cost of long-term repairs Property Name Inspection company Date of report (Millions of yen) (Millions of yen) (Note 1) (Note 2) KSS Gotanda Tokyo Marine & Nichido September 2018 - 11 Building Risk Consulting Co. Ltd. Notes: 1. “Cost of urgent/short-term repairs” includes the cost of updating and repair work and urgent repairs generally required within one year as shown on the Building Inspection Report. 2. “Cost of long-term repairs” includes the average annual amount rounded to the nearest million yen for the costs appearing on the Building Inspection Report as updating and repair work forecast over the next 12-year period.

* Hulic Reit’s website: https://www.hulic-reit.co.jp/en/

Attachments Reference Attachment 1 Map and Photo of the Property Reference Attachment 2 Portfolio List after Acquiring the Property

Reference Attachment 1 Map and Photo of the Property

Reference Attachment 2 Portfolio List after Acquiring the Property (Anticipated) Investment Acquisition (Anticipated) ratio Category Property name Location price Acquisition date (%) (Note 3) (Millions of (Note 2) yen) (Note 1) (20,100) (7.2%) February 7, 2014 (16,650) (6.0%) Minato-ku, March 15, 2016 Hulic Kamiyacho Building Total 36,750 Total 13.2% Tokyo (Note 4) (Note 5) (Note 5) Chiyoda-ku, Hulic Kudan Building (Land) 11,100 4.0% February 7, 2014 Tokyo 8,623 Toranomon First Garden Minato-ku, 3.1% February 7, 2014 Tokyo (Note 4) (5,160) (1.8%) February 7, 2014 (1,050) (0.4%) September 16, 2016 Rapiros Roppongi Minato-ku, Total 6,210 Total 2.2% Tokyo (Note 4) (Note 5) (Note 5) Hulic Takadanobaba Building Toshima-ku, 3,900 1.4% February 7, 2014 Tokyo Hulic Kanda Building Chiyoda-ku, 3,780 1.4% February 7, 2014 Tokyo Hulic Kandabashi Building Chiyoda-ku, 2,500 0.9% February 7, 2014 Tokyo

Hulic Kakigaracho Building Chuo-ku, Tokyo 2,210 0.8% February 7, 2014

s (22,854) (8.2%) November 7, 2014

e t

i (15,295) (5.5%) October 4, 2016

r r e Chiyoda-ku, e Ochanomizu Sola City Total 38,149 Total 13.7%

op Tokyo

r op

r (Note 4) (Note 5)

a (Note 5)

r f

f Hulic Higashi Ueno 1-Chome e Taito-ku, Tokyo 2,678 1.0% October 16, 2014

O Building (Note 6) mm

o Toshima-ku, 1,580 C Tokyo Nishi Ikebukuro Building 0.6% March 31, 2015 Tokyo (Note 4) 4,370

okyo Shinagawa-ku,

T Gate City Ohsaki 1.6% April 16, 2015 Tokyo (Note 4) (12,740) (4.6%) December 25, 2015 (5,570) (2.0%) September 1, 2016 Hulic Toranomon Building Minato-ku, Total 18,310 Total 6.6% Tokyo (Note 4) (Note 5) (Note 5) Shibuya-ku, Hulic Shibuya 1-chome Building 5,100 1.8% March 31, 2017 Tokyo Hulic Higashi Nihonbashi Building Chuo-ku, Tokyo 3,480 1.2% March 31, 2017 Chiyoda-ku, Hulic Jimbocho Building 1,460 0.5% April 28, 2017 Tokyo 11,000 Hulic Ginza 7-Chome Building Chuo-ku, Tokyo 3.9% March 29, 2018 (Note 4) Minato-ku, 6,100 Shinagawa Season Terrace 2.2% September 10, 2018 Tokyo (Note 4) Shinagawa-ku, KSS Gotanda Building 3,450 1.2% October 1,2018 Tokyo Subtotal - 170,750 61.1% -

Oimachi Redevelopment Building (#2) Shinagawa-ku, 9,456 3.4% February 7, 2014 Tokyo

6,166 Oimachi Redevelopment Building (#1) Shinagawa-ku, 2.2% February 7, 2014 Tokyo (Note 4) Dining Square Akihabara Building Chiyoda-ku, 3,200 1.1% February 7, 2014 Tokyo Hulic Jingumae Building Shibuya-ku, 2,660 1.0% February 7, 2014 Tokyo Hulic Shinjuku 3-Chome Building Shinjuku-ku, 5,550 2.0% October 16, 2014 Tokyo Yokohama-shi, Yokohama Yamashitacho Building 4,850 1.7% October 16, 2014

es Kanagawa

t r

e Chiyoda-ku,

p Orchid Square 3,502 1.3% March 30, 2016 o

r Tokyo

l Setagaya-ku, i

a Hulic Todoroki Building 1,200 0.4% December 27, 2016

t Tokyo

e R Hulic Omori Building Shinagawa-ku, 3,420 1.2% March 31, 2017 Tokyo 3,150 HULIC &New SHIBUYA Shibuya-ku, 1.1% June 30, 2017 Tokyo (Note 4) HULIC &New SHINBASHI Minato-ku, 3,100 1.1% November 1, 2017 Tokyo Hulic Shimura-sakaue Itabashi-ku, 7,556 2.7% June 29, 2018 Tokyo Subtotal - 53,810 19.3% - Intermediate total - 224,560 80.4% -

Aria Matsubara Setagaya-ku, 3,244 1.2% February 7, 2014 Tokyo Setagaya-ku,

Trust Garden Youganomori 5,390 1.9% February 7, 2014 s

e Tokyo m

o Setagaya-ku, h

Trust Garden Sakurashinmachi 2,850 1.0% February 7, 2014

Tokyo

i s r Trust Garden Suginami Miyamae Suginami-ku, 2,760 1.0% February 7, 2014

nu Tokyo

e t

a Shibuya-ku,

v Trust Garden Tokiwamatsu 3,030 1.1% September 1, 2016

ri Tokyo P Yokohama-shi,

Sompo Care La vie Re Kitakamakura 1,780 0.6% June 30, 2017

s Kanagawa

e s

s Subtotal - 19,054 6.8% -

on Toshima-ku, i

t Ikebukuro Network Center 4,570 1.6% February 7, 2014

a Tokyo

e n

e Tabata Network Center Kita-ku, Tokyo 1,355 0.5% February 7, 2014

G - t Hiroshima-shi, ex Hiroshima Network Center 1,080 0.4% February 7, 2014

N Hiroshima

r Nagoya-shi, e

t Atsuta Network Center 1,015 0.4% February 7, 2014

n Aichi ce

Nagano-shi, k

r Nagano Network Center 305 0.1% February 7, 2014

o Nagano

w t

e Chiba Network Center Inzai-shi, Chiba 7,060 2.5% December 16, 2014 N

Sapporo Network Center Sapporo-shi, 2,510 0.9% December 16, 2014 Hokkaido Keihanna Network Center Kizukawa-shi, 1,250 0.4% October 16, 2014 Kyoto Subtotal - 19,145 6.9% -

(4,370) (1.6%) September 16, 2016 (7,150) (2.6%) November 1, 2017 Sotetsu Fresa Inn Ginza 7-Chome Chuo-ku, Tokyo Total 11,520 Total 4.1% (Note 4) (Note 5) (Note 5) Hotel Minato-ku, 5,000 Sotetsu Fresa Inn Tokyo-Roppongi 1.8% November 1, 2017 Tokyo (Note 4) Subtotal - 16,520 5.9% - Intermediate total - 54,719 19.6% -

Total of the portfolio - 279,279 100.0％ -

Notes: 1. “(Anticipated) Acquisition price” lists the acquisition price listed in the relevant purchase and sale agreement for each asset held and the Property, rounded to the nearest million yen. The acquisition price does not include consumption or local taxes or the costs and expenses related to the acquisition. 2. “Investment ratio” represents the percentage of the (anticipated) acquisition price of each asset held and the Property to the total (anticipated) acquisition price, rounded to one decimal place. 3. “(Anticipated) Acquisition date” is the anticipated date of acquisition stated in the relevant purchase and sale agreement for each asset held and the Property. 4. The figure is based on the ratio of sectional ownership interest or quasi-co-ownership interest owned by Hulic Reit in the properties. 5. For additional acquisitions, the acquisition prices on the respective acquisition dates and the investment ratios are indicated in parentheses respectively, and their total values at the bottom line. 6. As of June 29, 2018, a co-onwership interest (50.0%) in the property’s adjoining site was acquired for 7.5 million yen, and the “(Anticipated) Acquisition price” includes the acquisition price for this co-ownership interest. 7. The 15% quasi co-ownership interest in the trust beneficiary right in Leaf Minato Mirai (land interest) held as of the present date is excluded from the table above as this interest is planned to be transferred on September 27, 2018.