March 22, 2007 For Immediate Release New City Residence Investment Corporation 1-10-6 Roppongi, Minato-ku, Tokyo Tetsuya Fujita, Executive Officer (Securities Code: 8965) Asset Management Company of Investment Trusts: CBRE Residential Management K.K. Tetsuya Fujita, President Inquiries: Jun Arai, Director and Chief Investment 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) Trust Beneficiary Interest in Real Estate Property Trust Asset (Note1) Property Name Projected Acquisition Price (Note2) (Note3) New City Residence Sannomiya ¥1,485,000,000 Note1:The real estate management and disposal trust agreement that places the property in trust (hereafter, the “trust agreement”) will be cancelled immediately following completion of acquisition by NCRI based on a mutual agreement and NCRI will acquire ownership rights to the property. Note2:The current name of property identified in the table above is Stilo Sannomiya. NCRI intends to change the name of the building to the one identified in the above table shortly after acquisition. Note3:The acquisition prices are 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 to be acquired, the following termination conditions were established in consideration of the need to conduct a detailed investigation (due diligence) of the managed property and NCRI intends to conclude the trust beneficiary interest sales and purchase agreement on March 27, 2007. [Acquisition Terms] Acquisition of each property is subject to due diligence and the absence of substantial matters that may affect projected acquisition prices. 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 - (3) Execution date of the trust beneficiary interests sale and purchase agreement March 27, 2007 (planned) (4) Acquisition date: March 27, 2007 (planned) (5) Seller: KANSAI Ltd. (Please refer to 3. “Seller Profile” below for details) (6) Financing details Concerning the schedule for making the payment to acquire the property is scheduled to be paid on March 27, 2007. NCRI intends to acquire the investment property utilizing cash on hand and debt financing. 2. Property Details Property: New City Residence Sannomiya (1) Reason for Acquisition ①Property Features New City Residence Sannomiya is a 15-story condominium complex comprised of Single Type units located approximately one minute on foot from Boeki Center Station on the Kobe New Transit Port Liner Line. The property boasts outstanding transportation convenience being within walking distance of each of Sannomiya-Hanadokeimae Station on the Kobe City Subway Kaigan Line, Sannomiya Station on the JR Tokaido Main Line, Sannomiya Station on the Hanshin Electric Railway Main Line, Sannomiya Station on the Hankyu Railway Kobe Line and Sannomiya Station on the Kobe City Subway Seishin-Yamate Line. With department stores and other retail facilities; city offices, joint government buildings and other public facilities; Isogami Park and such in the surrounding area, the property stands in a location that is also convenient in terms of lifestyle. Therefore, strong rental demand can be anticipated from mainly singles who demand proximity to downtown and convenience. In addition, the property is expected to be able to maintain property competitiveness in the medium to long term as the property is a brand new property with high quality interior finishing and facility specifications. ②Housing Type and Floor Plan (112units) Unit Type: Single Type 100% Floor Plan: 56 1R (one room) apartments, 56 1K (two bedroom 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 Sannomiya Type of Acquisition (Note 1) Trust beneficiary interest in real estate property trust asset Trustee (Note 1) Chuo Mitsui Trust and Banking Co., Ltd. Trust Maturity Data (Note 1) End of September, 2010 Acquisition Date (planned) March 27, 2007 Residential 3-2-31, Isobedori, Chuo-ku, Kobe-shi, Hyogo Prefecture Address (Note 2) Lot 3-308, Isobedori, Chuo-ku, Kobe-shi, Hyogo Prefecture Approximately 1 minute walk from Boeki Center Station on the Kobe Access New Transit Port Liner Line Use (Note 3) Apartment complex Land 473.22 m2 Site Area (Note 2) Building 3,371.98 m2 Construction (Note2 ) RC, 15F Probable maximum loss (Note 4) 6.9% Type of Ownership Proprietary ownership Completion (Note2 ) January 2007 Acquisition Price ¥1,485,000,000 Appraisal Firm Daiwa Real Estate Appraisal Co. Appraisal Value ¥1,490,000,000 Base Date for Survey February 20, 2007 Collateral None Special Considerations None Number of Tenants (Note 5) 1 Rent (Note 5) - Deposit (Note 6) ¥1,270,000 Tenant Details Total No. of Leasable 112 Apartments (Note 6) Total No. of Leased 17 Apartments (Note 6) (Note 7) Total Leasable Floor Space 2 3,071.60 m (Note 6) Total Leased Floor Space 2 474.09 m (Note 6) (Note 7) Occupancy Rate Based on 15.4% Floor Space (Note 6) Notes: 1. The trust agreement for the asset that is scheduled to be acquired will be cancelled immediately following completion of acquisition by NCRI based on a mutual agreement and NCRI will acquire ownership rights to the property. The trust maturity date is the date that appears on the above trust agreement. 2. “Address (Lot),” “Site Area,” “Construction,” and “Completion Date” are as per report by the appraisal firm. 3. The principal use has been identified. 4. 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) 5. Concerning the total number of leasable apartments for the property, a lease agreement has been signed between the trustee, The Chuo Mitsui Trust and Banking Co., Ltd., and the above seller. The cancellation of 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 - the trust agreement immediately after NCRI completes acquisition of the asset scheduled to be acquired based on a mutual agreement and acquisition of ownership rights to the property by NCRI is scheduled to be accompanied with NCRI succeeding The Chuo Mitsui Trust and Banking Co., Ltd.’s position as lessor in the concerned lease agreement. Based on the concerned lease agreement, the above seller is set to pay NCRI a fixed amount (8,813,000 yen per month) as rent, but the lease agreement is scheduled to end on June 30, 2007. After the agreement ends, NCRI plans to operate the property under the so-called sublease operation form whereby the entire building is leased to a sublease company and then each rental apartment sublet to third parties. 6. Data as of March 18, 2007. 7. “Total Leased Floor Space,” “Total No. of Leased Apartments,” noted above represents the number of apartments leased to end tenants. 3. Seller Profiles Company Name KANSAI Ltd. Head Office Address 3-2-3, Marunouchi, Chiyoda-ku, Tokyo Major Unitholders NCRI has been unable to obtain the approval of the seller to disclose this information. Thus, NCRI considers the fact that the concerned information has not been disclosed is a circumstance that is due to circumstances that are outside of its realm of control. Representative Director Ryutaro Uchiyama Capital ¥3,000,000 Principal Activities 1. Acquires, manages, owns and disposes of trust beneficiary interests in real estate based on trust agreements 2. Acquires, owns, disposes of, leases and manages real estate 3. Other work incidental or related to the work mentioned in the above items Relationship with NCRI Nil and Asset Management Company (Note) (Note) Asset Management Company: CBRE Residential Management K.K. 4．Design and Other Matters concerning the Scheduled Acquisition Properties The Ministry of Land, Infrastructure and Transport (MLIT) has announced the architect, designer, contractor, and construction auditor’s names and the names of properties with falsified structural calculations concerning the structural calculation falsification problems. NCRI has verified the architects, contractors, building designers, structural design companies and construction appraisers of the subject property. The details are as indicated in the table below. Name of Property New City Residence Sannomiya Developer KANSAI Ltd. Contractor K.K. Novac Architect K.K. So Registered