July 27, 2007 for Immediate Release New City Residence Investment Corporation 1-10-6 Roppongi, Minato-Ku, Tokyo Tetsuya Fujita
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July 27, 2007 For Immediate Release New City Residence Investment Corporation 1-10-6 Roppongi, Minato-ku, Tokyo Tetsuya Fujita, Executive Director (Securities Code: 8965) Asset Management Company of Investment Trusts: CBRE Residential Management K.K. Tetsuya Fujita, President Inquiries: Jun Arai Director and Chief Investrment Officer TEL: +81-3-6229-3860 Notice Concerning the Proposed Acquisition of Investment Asset New City Residence Investment Corporation (“NCRI”) today announced its plan to acquire the following investment assets. 1. Acquisition Details (1) Real Estate Property (Unit: Thousand Yen) Projected Acquisition Property Name (Note1) Price (Note2) Property 1 New City Residence Nakano (tentative name) 1,250,000 Property 2 New City Residence Yoga (tentative name) 1,305,000 Property 3 New City Residence Sumiyoshi (tentative name) 1,170,000 Notes: 1. Property 1 and 2 are brand new properties, Property 3 is preconstruction. NCRI intends to use the name of the property that identified in the above table shortly after acquisition. 2. The projected acquisition price is exclusive of property tax, urban planning tax, consumption tax, and local consumption tax. (2) Acquisition terms for the property to be acquired In acquiring Property 1, Property 2 and Property 3, in consideration of the need to conduct a detailed investigation (due diligence) of the managed real estate, a real estate sales and purchase agreement for Property 1 is scheduled to be executed on August 3, 2007, a real estate sales and purchase agreement for Property 2 is scheduled to be executed on August 1, 2007, a real estate sales and purchase reservation agreement for Property 3 is scheduled to be executed on July 30, 2007 in order to secure investment opportunities while setting the terms and conditions This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenience of, and reference by, overseas investors. NCRI makes no warranties as to its accuracy or completeness. - 1 - described below as conditions precedent to the fulfillment of obligations to pay sales proceeds. [Acquisition Terms] Acquisition of property is subject to due diligence and the absence of substantial matters that may affect projected acquisition price. (3) Agreement execution Date (planned) Property 1 (Real Estate Sales and Purchase Agreement): August 3, 2007 Property 2 (Real Estate Sales and Purchase Agreement): August 1, 2007 Property 3 (Real Estate Sales and Purchase Reservation Agreement): July 30, 2007 (4) Acquisition Date (planned) Property 1: From agreement execution date to August 31, 2007, on a date separately agreed upon by the seller and NCRI Property 2: October 19, 2007 Property 3: October 31, 2007 (5) Seller Property 1: Nihon Housing Co., Ltd. Property 2 and Property 3: Noel Co., Ltd. (Please refer to 3. “Seller Profile” below for details) (6) Financing Details Date of payment for Property 1: From agreement execution date to August 31, 2007, on a date separately agreed upon by the seller and NCRI Date of payment for Property 2: October 19, 2007 (planned) Date of payment for Property 3: October 31, 2007 (planned) NCRI intends to acquire the investment property utilizing cash on hand and debt financing. 2. Property Details New City Residence Nakano (tentative name) (1) Reason for Acquisition (i) Property Features New City Residence Nakano (tentative name) is a twelve-story condominium complex comprised primarily of 1K units located approximately nine minutes on foot from Arai-yakushi-mae Station on the Seibu Shinjuku Line and approximately eleven minutes on foot from Nakano Station on the JR Chuo/Sobu Line. With Shinjuku Station being one station (required time: about six minutes) and Kichijoji Station being four stations (required time: about ten minutes) from Nakano Station, the property boasts convenience in terms of transportation. In addition, the property is situated in a location that is convenient in terms of lifestyle in that there are the Seiyu, Life and Marusho supermarkets in the surrounding area. Therefore, strong rental demand can be anticipated from mainly singles and students who want their work/school and home to be in close proximity and convenience in terms of lifestyle. (ii) Housing Type and Floor Plan (42 units) Unit Type: Single Type 100% Floor Plan: 42 1K (one bedrooms with kitchen) apartments Note: For further details, please refer to Attachment 3., “Composition by Housing Type.” This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenience of, and reference by, overseas investors. NCRI makes no warranties as to its accuracy or completeness. - 2 - (2) Property Profile (Scheduled for Acquisition) Property Name New City Residence Nakano (tentative name) Type of Acquisition (Note 1) Real Estate From agreement execution date to August 31, 2007, on a date Acquisition Date (planned) separately agreed upon by the seller and NCRI Residential 2-12-13, Arai, Nakano-ku, Tokyo Address (Note 2) Lot 2-54-2, 2-54-3, Arai, Nakano-ku, Tokyo Approximately 9 minutes walk from Arai-yakushi-mae station on Access Seibu Shinjyuku line Approximately 11 minutes walk from Nakano station on JR line Use (Note 2) Apartment complex Land 452.98 m2 Site Area (Note 2) Building 1,823.11 m2 Construction (Note 2) RC 12F Probable maximum loss (Note 3) 5.9% Type of Ownership Proprietary ownership Completion (Note 2) March 8, 2007 Acquisition Price (planned) ¥1,250,000,000 Appraisal Firm Japan Real Estate Institute Appraisal Value ¥1,250,000,000 Base Date for Survey July 1, 2007 Collateral None The building coverage ratio for the land of the real estate, which Special Considerations was originally 80%, is 100% due to deregulations on commercial zones and fire-resistant buildings in fire zones. Number of Tenants (Note 4) 1 (planned) Rent (Note 5) ¥0 Deposit (Note 5) ¥0 Tenant Details Total No. of Leasable 42 Apartments Total No. of Leased 0 Apartments (Note 5) Total Leasable Floor Space 1,613.86 m2 Total Leased Floor Space 2 0 m (Note 5) Occupancy Rate Based on 0% Floor Space (Note 5) Notes: 1. No trust contract for real-estate management and disposal agreement that places the subject property in trust asset will be executed since the subject asset is a real estate. 2. “Address (Lot),” “Use,” “Site Area,” “Construction,” and “Completion Date” are as per register. 3. The probable maximum loss refers to the probability of the maximum loss from an earthquake. The probable maximum loss is based on the content of the earthquake risk analysis report prepared by OYO RMS and is the probability of the maximum loss that may result from an earthquake computed by OYO RMS using the natural disaster risk analysis software RiskLink® as having about a 0.21% annual exceedance probability of occurring (occurrence once every 475 years is equivalent to a 10% exceedance probability of occurring within 50 years) 4. The “Number of Tenants” is recorded as “1” where a single master lease has been executed with a sublessor company. Master lease agreements will be concluded before the settlement in which the sublessor company to be the New City Leasing One Y.K. (NCL1). The number indicated above is the number of tenant after the master lease agreement is executed. 5. Data as of July 27, 2007. This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenience of, and reference by, overseas investors. NCRI makes no warranties as to its accuracy or completeness. - 3 - New City Residence Yoga (tentative name) (1) Reason for Acquisition (iii)Property Features New City Residence Yoga (tentative name) is a nine-story condominium complex comprised primarily of 1K through 1LDK units located approximately six minutes on foot from Yoga Station on the Tokyu Denentoshi Line. As Shibuya Station is four stations (required time: about ten minutes) and Futakotamagawa Station is one station (required time: about two minutes) from the property’s nearest station, Yoga Station, the property boasts outstanding transportation convenience. Furthermore, the surrounding area is home to the Takashimaya high-end department store and the OK Store supermarket, and is also blessed with nature, such as the Komazawa Olympic Park and Kinuta Park. Thus, the property is in a location that features convenience in terms of lifestyle combined with an excellent living environment. Therefore, strong rental demand can be anticipated from mainly singles and DINKs that desire such features. (iv) Housing Type and Floor Plan (45 units) Unit Type: Single Type 47%, Urban Family Type 53% Floor Plan: 28 1K (one bedroom with kitchen) apartments, 1 1DK (one bedroom with dining, kitchen) apartments, 3 1DK+S (one bedroom with dining, kitchen, service room) apartments, 12 1LDK (one bedroom with dining, kitchen, lounge) apartments, 1 2LDK (two bedrooms with dining, kitchen, lounge) apartments. Note: For further details, please refer to Attachment 3., “Composition by Housing Type.” (2) Property Profile (Scheduled for Acquisition) Property Name New City Residence Yoga (tentative name) Type of Acquisition (Note 1) Real Estate Acquisition Date (planned) October 19, 2007 Residential 1-3-12, Tamagawadai, Setagaya-ku, Tokyo Address (Note 2) Lot 1-754-4, Tamagawadai, Setagaya-ku, Tokyo Approximately 6 minutes walk from Yoga station on Tokyu Access Denentoshi line Use (Note 2) Apartment complex Land 527.27 m2 Site Area (Note 2) Building 1,574.26 m2 Construction (Note 2) RC 9F Probable maximum loss (Note 3) 15.4% Type of Ownership Proprietary ownership Completion (Note 2) June 20, 2007 Acquisition Price (planned) ¥1,305,000,000 Appraisal Firm Tanizawa Sogo Appraisal Co., Ltd. Appraisal Value ¥1,310,000,000 Base Date for Survey July 20, 2007 Collateral None The building coverage ratio for the land of the real estate, which Special Considerations was originally 80%, is 100% due to deregulations on commercial zones and fire-resistant buildings in fire zones.