January 10, 2014 For Immediate Release Real Estate Investment Trust Securities Issuer: Comforia Residential REIT, Inc 1-16-3 Dogenzaka, Shibuya-ku, Tokyo Hiroyuki Tohmata, Executive Director (Code: 3282) Asset Management Company: TLC Comforia Investment Management INC. Hiroyuki Tohmata, President & CEO Inquires: Nobuhide Kashiwagi, Director, General Manager of Finance & Accounting department (TEL: +81-3-6415-6200) Notice Concerning Acquisition of Investment Assets (COMFORIA KUDAN, other 21 assets) Comforia Residential REIT, Inc (“Investment Corporation”) announces today its decision to acquire the investment assets as shown below. 1．Summary of Acquisition Acquisition Price No Type of Asset Property Name (thousand yen) (Note 1) Beneficial Interest in 1 COMFORIA KUDAN 1,280,500 Real Estate Trust Beneficial Interest in COMFORIA NIHONBASHININGYOCHO NORTH 2 1,108,000 Real Estate Trust (Note 2) Beneficial Interest in 3 COMFORIA SHINKAWA (Note 2) 1,840,800 Real Estate Trust Beneficial Interest in 4 COMFORIA AKASAKA 1,945,000 Real Estate Trust Beneficial Interest in 5 COMFORIA MITA EAST 3,190,550 Real Estate Trust Beneficial Interest in 6 COMFORIA LIV SHIBAURA CANAL (Note 2) 1,570,000 Real Estate Trust Beneficial Interest in 7 COMFORIA UENOHIROKOJI 1,050,000 Real Estate Trust Beneficial Interest in 8 COMFORIA KASUGATOMISAKA 2,912,150 Real Estate Trust Beneficial Interest in 9 COMFORIA HONKOMAGOME (Note 2) 1,344,000 Real Estate Trust Beneficial Interest in 10 COMFORIA MORISHITA (Note 2) 1,530,000 Real Estate Trust Beneficial Interest in 11 COMFORIA LIV KIBAKOEN 956,000 Real Estate Trust Beneficial Interest in 12 COMFORIA MEGURO CHOJAMARU 1,972,000 Real Estate Trust Beneficial Interest in 13 COMFORIA NISHIMAGOME (Note 2) 990,000 Real Estate Trust <Disclaimer> This document is a press release to make a public announcement of acquisition of investment assets, and has not been prepared as a solicitation for investment. Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Investment Corporation (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility. 1 Acquisition Price No Type of Asset Property Name (thousand yen) (Note 1) Beneficial Interest in 14 COMFORIA KITASANDO (Note 3) 4,268,000 Real Estate Trust Beneficial Interest in 15 COMFORIA YOYOGIUEHARA (Note 2) 1,560,000 Real Estate Trust Beneficial Interest in 16 COMFORIA SASAZUKA 1,789,000 Real Estate Trust Beneficial Interest in 17 COMFORIA SHINJUKUGYOENⅡ 1,806,000 Real Estate Trust Beneficial Interest in 18 COMFORIA ICHIGAYAYANAGICHO 1,623,000 Real Estate Trust Beneficial Interest in 19 COMFORIA KAGURAZAKA 736,000 Real Estate Trust Beneficial Interest in 20 COMFORIA HIGASHIIKEBUKURO EAST 1,712,000 Real Estate Trust Beneficial Interest in 21 COMFORIA HIGASHIIKEBUKURO 1,132,000 Real Estate Trust Beneficial Interest in 22 COMFORIA SHINKOYASU (Note 2) 1,077,000 Real Estate Trust Total 37,392,000 (Note 1) “Acquisition Price” denotes the amount exclusive of the various expenses required in the acquisition of the concerned asset, etc. (taxes and public dues, etc.) (specified in the Agreement on Purchase and Sale of Beneficial Interest in Real Estate Trust, etc.). (Note 2) The Investment Corporation plans to change the names about one month after the acquisition. The current property names are the table below. The current property names will be omitted hereinafter. No The current property name 2 Chester House Mitsukoshimae 3 OZIO Shinkawa 6 Chester House Shibaura 9 Chester Court Honkomagome 10 OZIO Morishita 13 Chester House Nishimagome 15 Chester Court Yoyogiuehara 22 Chester House Shinkoyasu (Note 3) Although the current property name is Vert Varie Kitasando, the Investment Corporation plans to change the name to COMFORIA KITASANDO after obtaining the consent of the other segment owner. The current property name will be omitted hereinafter. (1) Date of Agreement January 10, 2014 (2) Date of Acquisition February 4, 2014 (3) Seller Refer to “3. Summary of the Seller” (4) Financing for Acquisition The properties will be bought using proceeds from the issuance of new investment units outlined in the press release “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” announced today and the borrowings (Note). (5) Method of Payment Full payment at the time of delivery (Note) The Investment Corporation will announce concerning the borrowings after its decision. 2. Summary of the Properties (1) COMFORIA KUDAN Property Name COMFORIA KUDAN Type of Asset Beneficial Interest in Real Estate Trust Trustee of Beneficial Trust (planned) Mitsubishi UFJ Trust and Banking Corporation Expiration Date of Beneficial Trust Contract February 4, 2029 (planned) <Disclaimer> This document is a press release to make a public announcement of acquisition of investment assets, and has not been prepared as a solicitation for investment. Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Investment Corporation (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility. 2 Location (Residential address) 2-6-12 Kudanminami, Chiyoda-ku, Tokyo Area (Note 1) 349.35 m2 Land Type of Ownership Ownership Completion Date (Note 1) February, 2007 Structure / Number of Floors RC / 13F (Note 1) 2 Building Gross Floor Area (Note 1) 1,787.89 m Type of Ownership Ownership Use (Note 1) Apartment building Rentable Units (Note 6) 36 Unit Property Management Company (Note 2) TOKYU COMMUNITY CORP. (planned) Master Leasing Company (Note 3) TOKYU COMMUNITY CORP. (planned) Collateral None Special affairs (Note 4) None This property is a rental residence comprising compact-type rooms located a 7-minute walk from Kudanshita Station on the Tokyo Metro Tozai Line, Hanzomon Line and the Toei Shinjuku Line and a 9-minute walk from Ichigaya Station on the JR Chuo-Sobu Local Line, the Tokyo Metro Namboku Line and one other line. As 2 stations and 5 lines are available, taking approximately 4 minutes to Otemachi Station and approximately 8 minutes to Shinjuku Station, Features of the Property it has very good access to major business and commercial zones. This area is convenient with proximity to Chidorigafuchi, which are renowned Tokyo sites for cherry blossom viewing, and has convenience stores, eating and drinking establishments, etc. in the local area. Given these characteristics, solid rental demand, mainly from single persons and DINKS families focusing on the comfort and convenience of the city-center location and residential environment, etc. is expected for this property. Summary of the Appraisal Report (Note 5) Appraisal Company Morii Appraisal & Investment Consulting, Inc. Appraisal Date October 31, 2013 Appraisal Value 1,370,000 thousand yen Direct Capitalization Price 1,390,000 thousand yen Cap Rate 4.7% DCF Price 1,340,000 thousand yen Discount Rate 4.4% Terminal Cap Rate 5.0% Summary of Rental Status (as of October 31, 2013) (Note 6) Rentable Area 1,589.22 m2 Rented Area 1,589.22 m2 Occupancy Rate 100.0% Rentable Units 36 Units Rented Units 36 Units Total Number of Tenants 1 Total Monthly Rent 6,674 thousand yen Deposits, guarantees 11,480 thousand yen Summary of the Engineering Report (Note 7) Reporting Company HI International Consultant Co., LTD. Report Date October, 2013 <Disclaimer> This document is a press release to make a public announcement of acquisition of investment assets, and has not been prepared as a solicitation for investment. Investment Corporation cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Investment Corporation (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility. 3 Estimated Amount 70 thousand yen of Emergency Repair Expenses Estimated Amount 30 thousand yen of Short-Term Repaid Expenses Estimated Amount 27,490 thousand yen of Long-Term Repaid Expenses Replacement Value 414,600 thousand yen Summary of the Earthquake Risk Analysis (Note 8) PML Reporting Company Sompo Japan Nipponkoa Risk Management Inc. Report Date October, 2013 PML 6.93% Architect/Contractor/Building Permit Agency, etc. (Note 9) Architect K.K. A・JRM Sekkei Contractor MABUCHI CONSTRUCTION Co., LTD. Building Permit Agency Building Navigation Kakuninhyoukakikou, Inc. Investment Agency or Structural HOUSEPLUS CORPORATION, Inc. Calculation Fitness Judge, etc. (2) COMFORIA NIHONBASHININGYOCHO NORTH Property Name COMFORIA NIHONBASHININGYOCHO NORTH Type of Asset Beneficial Interest in Real Estate Trust Trustee of Beneficial Trust (planned) Sumitomo Mitsui Trust Bank, Limited Expiration Date of Beneficial Trust Contract February 3, 2029 (planned) Location (Residential address) 1-1-6 Nihonbashi Horidomecho, Chuo-ku, Tokyo Area (Note 1) 253.15 m2 Land Type of Ownership Ownership Completion Date (Note 1) January, 2005 Structure / Number of Floors RC / 10F (Note 1) 2 Building Gross Floor Area (Note 1) 1,717.58 m Type of Ownership Ownership Use (Note 1) Apartment building / Bicycle parking / Garbage depot /