For Immediate Release

REIT Issuer: ORIX JREIT Inc. (TSE: 8954) Yutaka Okazoe President and Executive Director

Asset Management Company: ORIX Asset Management Corporation Hiroshi Yasuda President and CEO Inquiries: Hiroshi Nishio Director and Executive Officer TEL：+81 3 5418 4858

ORIX JREIT Announces Asset Acquisition (“Belle Face ”)

TOKYO, October 12, 2012 — We, ORIX JREIT Inc. today announced we just decided to acquire “Belle Face Meguro”, as described below.

1. Acquisition Summary Asset to be acquired ： Real estate trust beneficial interest (scheduled) * *As of today, no trust has been established for the Belle Face Meguro. It is planned that a trust will be established for it at the time it is acquired by us. Acquisition price ： ¥3,330,000,000 (excluding national and local consumption taxes, etc.) Scheduled acquisition date ： October 19, 2012 Current owner and seller ： ORIX Real Estate Corporation Funding method ： Loan proceeds (scheduled) *Please refer to the press release “ORIX JREIT Announces New Debt Finance” dated on October 12, 2012. Payment terms ： 100 % on delivery

2. Purpose of the Acquisition For the purpose of maintaining or increasing distributions to the unitholders over the medium to long term, we are working to invest selectively to the real estate with stable cash flow and outstanding earning potential, and upgrading the quality of our property portfolio through asset replacement efforts. Based on these investment policies, we are proactively investing in quality real estate considering property “type” and “regional” diversification, and have decided to acquire Belle Face Meguro (“the Property”), an apartment. The apartment is relatively less prone to be affected by economic trends, etc. compared to other types of properties and is characterized by small rent fluctuations. The single/compact type apartment, such as the Property is expected to produce stable earnings over the medium to long term through steady demand from the increase of “single-person” and “double income couple with no children (DINKS)” households, as well as more stable rent income, etc., as compared with the luxury apartment. Accordingly, we believe this property acquisition will increase the stability of earnings in our property portfolio. We are continuously aiming to construct our portfolio based on an integrated model that considers

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reducing exposure to risk through the property ”type” and “regional” diversification, and maintaining and increasing the stability and growth potential of distributions over the medium to long term.

(1) Location The Property is situated in a quiet residential area along with high transportation convenience with access to 2 stations on 4 lines – approximately a 9-minute walk from on the JR , Metro , Mita Line and Tokyu Meguro Line, and approximately a 6-minute walk from Fudomae Station on the Tokyu Meguro Line. The area surrounding Meguro Station is highly popular for its excellent neighborhood provided by many peaceful facilities such as temples, shrines, parks and museums, in addition to shopping spots.

(2) Buildings, facilities, etc. The Property is a single/compact type apartment with a total of 117 units, comprised of mainly 1K and 1LDK. It is relatively new as it was completed in February 2010, and has residential units that can serve the various needs of single-persons through a variety of room layouts and spaces. In addition, a luxurious plan is provided by the property specifications such as the spacious open space of the common use area and a full-fledged theater room, etc.

3. Summary of Acquisition Property Real estate trust beneficial interest (scheduled) * Specified asset category * As of today, no trust has been established for Belle Face Meguro. It is planned that a trust will be established when it is acquired by us. Trustee (scheduled) Sumitomo Mitsui Trust Bank, Limited (scheduled) Term of trust agreement October 19, 2012 – October 31,2027 (scheduled) Address 16-1, 3-chome, -ku, Tokyo Registered usage Apartment house Land: 1,203.17m2 Registered area Building: 4,643.24m2 (total floor area) Registered construction Reinforced concrete, flat roof, 14 floors with 1 floor underground Registered completion date February 16, 2010 Type of ownership Fee simple ownership Previous owner ORIX Real Estate Corporation Acquisition price ¥ 3,330,000,000 (excluding national and local consumption taxes, etc.) Appraised value ¥ 3,470,000,000 Appraisal date October 1, 2012 Appraiser Real Estate Institute Scheduled acquisition date May 9, 2012 Approx. 9 minutes walk from Meguro Station on the JR Yamanote Line, Tokyo Public transit access Metro Mamboku line, Toei Subway Mita Line, Tokyu Meguro Line Approx. 6 minutes walk from Fudomae Station on the Tokyu Meguro Line Usage restrictions Secondary-industrial zone, Secondary-fire zone Architects Miwa Architect Office Co., Ltd. Structural engineers Miwa Architect Office Co., Ltd. General contractors Fukuda Corporation Building inspection agency Jutaku Kin'yu Fukyu Kyokai Elevator: 2(Max 9 for passengers and wheelchair) Main facilities and Parking: 32-car parking lots (parking elevator for 30, 2 ground spaces) specifications 91-bicycle parking lots, 10-bike parking lots PML1.93% (based on NKSJ Risk Management, Inc. report ) PML (Probable Maximum Loss) shows the ratio (%) of cost of recovering a Earthquake resistance building after being damaged to its state before the damage occurred against repurchase price, when assuming a earthquake that may occur once in 475 years in average in probability statistics (recurrence interval of 475 years). 2/8

In evaluating earthquake risk of a building, risk curve that show relationship of amount of expected loss (horizontal axis) and probability for the loss to exceed the year (vertical axis) will be calculated. However, the risk curve has variability because loss evaluation comes with uncertainties in earthquake resistance performance of the building, behavior of earthquake vibration, etc. PML above uses the risk curve with credibility level of 90%, and shows upper limit of the expected loss, not the average figure. This seismic risk analysis was done by NKSJ Risk Management, Inc. Collateral None Special notes None Residential: 117units Total rentable units (1K：80 units、1LDK：37 units) No. of tenants 1 (as of August 31, 2012) Gross rental income ¥15million per month (excluding car parking spaces, as of August 31, 2012) Security deposits ¥15 million Total rent space 3,422.89m2 (as of August 31, 2012) Total rentable space 3,422.89m2 (as of August 31, 2012) Occupancy rate 100% (as of August 31, 2012) ¥168 million per annual *Note: The Net Operating Income (NOI) represents the anticipated revenue/expenditure balance under stabilized occupancy, based on the terms of the lease contract, etc. at the scheduled Assumed Net Operating acquisition date, but excluding extraordinary factors that may occur during the first year of Income (NOI) acquisition. The preconditions are as below. (These figures are not what OJR expects for the current fiscal year.) 1) Occupancy rate：96.0％ 2) Taxes: Taxes are calculated on the standard tax amount for fiscal 2012, and assumed that the term of the special measures to reduce the fixed asset tax on new apartment buildings is expired.

4. Profile of Owner and Seller (as of October 10, 2012) Company Name ORIX Real Estate Corporation (“the Company”) Address 14-5, Shiba 2-chome, Minato-ku, Tokyo Representative Representative Yoshiyuki Yamaya Development of condominiums, detached houses, and office buildings. Primary Leasing &management of condominiums, shops, and offices, etc. Shareholders’ Equity ¥ 200 million Date of establishment March 11, 1999 Major shareholder ORIX Corporation 100% Net Assets Not disclosed Total Assets Turnover Not disclosed Relationships with OJR or its asset management company There is no capital relationship required for reporting between we and the Company. But since the Company is a subsidiary of ORIX corporation which is a parent company of our asset management company “ORIX Asset Management Capital relationships Corporation (OAM),” the company falls under “related parties” of our asset management company as stipulated in the Law Concerning Investment Trusts and Investment Corporations (“the Investment Trust Law”). There is no personal relationship required for reporting between we or OAM and Personal relationships the Company. During the period ended August 2012, we acquired four properties (total Business relationships acquisition price: ¥6,874 million) from the Company. The Company does not fall under our “related party.” As mentioned above, the Applicability to Company falls under “the related parties” of our asset management company as related parties stipulated in the Investment Trust Law and mentioned above.

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5. Information of previous Ownership, etc. Previous Owner Company name ORIX Real Estate Corporation Special relationships Refer to Section 4. “Profile of involved Owner” above New development Background to and (Construction completed in February reason for acquisition 2010) Acquisition date ― Acquisition price ―

6. Profile of Intermediary None

7. Closing Method Funding method: Loan proceeds (scheduled) *Please refer to the press release “ORIX JREIT Announces New Debt Finance” dated on October 12, 2012.

Payment condition: 100% on delivery

8. Transaction with Related-Party We will acquire the property from the ORIX Real Estate Corporation. In accordance with the Affiliated Company Transaction Regulations, which are in-house regulations of OAM, the said transactions have been approved by our board of directors after being examined by the Risk Management and Compliance Committee and the board of directors at OAM. See the Relationship in ITEM 4 “Profile of owner and seller” for the summary of the related parties

9. Acquisition Schedule October 12, 2012 (scheduled): Execution of the sale and purchase agreement October 19, 2012 (scheduled): Settlement and delivery of the property

10. Future Outlook With regards to the financial forecast for the 22nd fiscal period (from September 1, 2012 through February 28, 2013) and the 23rd fiscal period (from March 1, 2013 through August 31, 2013) projected the subject property acquisition, please refer to the latest short financial results released on October 12, 2012 simultaneously.

Reference Materials I. Property photo and map II. Appraisal summary III. Portfolio summary after acquisition of Belle Face Meguro

Note: 1. This is the English translation of original Japanese documents and is provided solely for information purposes. If there are any discrepancies between the translation and the Japanese original, the latter shall prevail. 2. The original Japanese version of this announcement was distributed today to the Kabuto Club, the Ministry of Land, Infrastructure, Transport and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Construction Specialty Publication Press Club.

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I. Property photo and map

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II. Appraisal summary Appraisal 1) Appraised Value ¥ 3,470,000,000- 2) Appraisal Date October 1, 2012 3) Appraiser Japan Real Estate Institute

Valuations by method 1) Cost Method………………………………… ¥ 2,810,000,000- 2) Income Method i. DCF value ………………………………….. ¥ 3,420,000,000- Discount Rate………………………………. 4.7% Terminal Capitalization Rate ……………… 5.1% ii. DC Value…………………………………… ¥ 3,510,000,000- Capitalization Rate…………………………. 4.9%

Income projection The following figures are for fiscal year income based on the income approach (direct capitalization approach) shown on the Appraisal Report for the Property. The figures are not projections made by ORIX JREIT Inc. or ORIX Asset Management Corporation.

(In millions of yen) (1) Gross revenue （ a-b） 210 a. Effective gross revenue 219 b. Vacancy loss 9 (2) Total costs （ c+d+e+f） 36 c. Management /maintenance fee (management fee, utility expenses, PM fees, etc.) 22 ｄ . Taxes 11 e. Casualty insurance premium 0 f. Other costs 1 (3) Net revenue （ 1-2） 174 (4) Lump sum revenue 0 (5) Capital expenditure 2 (6) Net income （ 3+4-5） 171

Long Term Projected Repairs According to the Engineering Report by Earth-Appraisal Co., Ltd. the maintenance cost over the next 12 years will be ¥25,914 thousand.

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III. Portfolio summary after acquisition of Belle Face Meguro Acquisition % to Property Date Price(￥million) Total Acquisition Price Offices 6 Central Aoyama Suncrest Building December 1. 2001 3,356 0.9 Tokyo Wards Round-Cross Ichi-bancho December 1. 2001 3,900 1.1 Round-Cross Nishi December 1. 2001 2,650 0.7 DT Gaien December 21. 2001 2,430 0.7 Nihonbashi East Building December 21. 2001 1,720 0.5 Yoyogi Forest Building December 21. 2001 1,473 0.4 Round-Cross Minami Azabu December 21. 2001 1,394 0.4 Round-Cross Akasaka January 10. 2002 2,624 0.7 Round-Cross Mita January 10. 2002 1,748 0.5 Shiba Daimon Building January 10. 2002 2,195 0.6 Round-Cross Tsukiji January 10. 2002 3,378 0.9 ORIX Shiba 2-chome Building September 29. 2003 7,500 2.1 Aoyama 246 Building March 3. 2004 5,200 1.5 Round-Cross Shinjuku April 28. 2006 8,020 2.3 September 30. 2005 Seafort Square Center Building 18,000 5.1 April 28. 2006 June 26 . 2006 ORIX Akasaka 2-chome Building 21,860 6.1 December 4. 2006 Round-Cross Shinjuku 5-chome April 26. 2007 4,500 1.3 Nihonbashi Honcho 1-chome Building March 28. 2007 10,500 3.0 Round-Cross March 28. 2008 3,500 1.0 ORIX Suidobashi Building March 28. 2008 3,000 0.8 ORIX Shinagawa Building June 27. 2008 15,200 4.3 ORIX Real Estate Nishi Shinjuku Building March 27. 2009 13,600 3.8 OX Tamachi Building March 29. 2010 6,730 1.9 Subtotal 144,478 40.6 Remaining Carrot Tower December 1. 2001 5,479 1.5 Tokyo Wards Toyo MK Building December 1. 2001 5,270 1.5 Beside Kiba December 21. 2001 2,450 0.7 ORIX Building April 18. 2003 9,577 2.7 Round-Cross Kamata March 1. 2006 5,640 1.6 KN Jiyugaoka Plaza May 30. 2007 3,110 0.9 ORIX Meguro Building July 29. 2010 6,350 1.8 Business Center June 1. 2011 5,060 1.4 Subtotal 42,936 12.1 Other Parts of Neo City Mitaka December 1. 2001 2,200 0.6 the Round-Cross Kawasaki April 27. 2004 4,130 1.2 Omiya Miyacho Building March 27. 2009 4,400 1.2 Omiya Shimocho 1-chome Building March 29. 2010 3,750 1.1 Subtotal 14,480 4.1 Other Areas Nagoya Itochu Building September 29. 2003 4,500 1.3 ORIX Koraibashi Building April 27. 2005 5,560 1.6 Lunar Sendai June 28. 2007 8,500 2.4 ORIX Nagoya Nishiki Building March 29. 2010 12,500 3.5 ORE Sapporo Building October 1. 2010 4,250 1.2 ORIX Sannomiya Building September 29. 2011 3,800 1.1 Subtotal 39,110 11.0 Offices Total 241,004 67.7

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Acquisition % to Property Date Price(￥million) Total Acquisition Price Logistics Other Parts of Toda Logistics Center March 28. 2008 9,600 2.7 Facilities the Greater Tokyo Area Ichikawa Logistics Center September 29. 2008 8,300 2.3 Subtotal 17,900 5.0 Other Areas Sakai Logistics Center North Building March 30. 2010 10,200 2.9 Komaki Logistics Center June 30. 2011 2,700 0.8 Subtotal 12,900 3.6 Logistics Facilities Total 30,800 8.7 Retail 6 Central Nihon Jisho Minami Aoyama Building October 31. 2003 2,548 0.7 Facilities Tokyo Wards CUBE Daikanyama March 31. 2004 2,435 0.7 Subtotal 4,983 1.4 Other Parts of aune Kohoku March 10. 2010 4,000 1.1 the Greater Tokyo Area aune Makuhari March 10. 2010 3,600 1.0 Maruetsu Sagamino March 1. 2011 2,350 0.7 Subtotal 9,950 2.8 Other Areas Kobe Momoyamadai Shopping Center (Land) March 5. 2010 3,260 0.9 Okayama Kume Retail Facility January 31. 2011 2,750 0.8 Home Center Musashi Sendai Izumi (Land) January 11. 2012 2,350 0.7 Heiseikankou Sapporo Ekimae Building June 29. 2012 1,900 0.5 Morioka Minami Shopping Center Sansa July 31. 2012 2,800 0.8 Subtotal 13,060 3.7 Retail Facilities Total 27,993 7.9 Apartment 6 Central Park Axis Nishi Azabu Stage December 1. 2001 1,219 0.3 Tokyo Wards Shibaura Island Bloom Tower January 31. 2011 5,550 1.6 We Will Hatchobori June 1. 2011 2,370 0.7 Shibaura Island Air Tower July 28. 2011 6,030 1.7 Belle Face Togoshi Statio May 9. 2012 2,642 0.7 ※ Belle Face Meguro October 19, 2012(scheduled) 3,330 0.9 Subtotal 21,141 5.9 Remaining Belle Face Kamata June 1. 2011 3,550 1.0 Tokyo Wards Belle Face Hongo Yumicho June 1. 2011 3,340 0.9 Belle Face Mishuku March 30. 2012 2,000 0.6 Subtotal 8,890 2.5 Other Areas Belle Face Osaka Shinmachi June 1. 2011 3,684 1.0 Belle Face Amagasaki June 1. 2011 3,440 1.0 Belle Face Miyamachi April 5. 2012 1,500 0.4 Belle Face Bansui-street April 5. 2012 832 0.2 Subtotal 9,456 2.7 Residential Total 39,487 11.1 Others Other Parts of Cross Gate January 10. 2002 15,040 90.7 the Greater Tokyo Area GOOD TIME LIVING Shin-urayasu September 6. 2012 1,550 0.4 Subtotal 16,590 4.7 Others Total 16,590 4.7 Grand Total 70 properties 355,874 100.0 *Newly acquired buildings 11: Notes: 1. 1. “Acquisition price” above refers to sale price (fractions rounded down) specified in the sale and purchase contract. Consumption taxes are not included in the price. 2. “Percentage of total acquisition cost” refers to the acquisition price of each property under management as a proportion of the total acquisition price. 3. Fractions are rounded to two decimal places for the “Percentage of total acquisition cost.” Totals for the “Percentage of total acquisition cost” may not tally as a result of this rounding.

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