This translation of the original Japanese notice is provided solely for information purposes. Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail. July 15, 2016 REIT Issuer: Daiwa Office Investment Corporation (Stock Code No.: 8976) Representative: Nobuaki Omura, Executive Director Asset Manager: Daiwa Real Estate Asset Management Co. Ltd. Representative: Akira Yamanouchi, President and Representative Director Inquiries to: Yuji Shinotsuka, Vice President and Representative Director (Tel: +81-3-6215-9649) Notice concerning Acquisition of Asset (Ogikubo TM Building and Shinjuku West Building) We hereby announce that today Daiwa Office Investment Corporation (the “Investment Corporation”) has determined to acquire two trust beneficial interests in real estate as follows. 1. Summary of Assets to Be Acquired Property Name Ogikubo TM Building Shinjuku West Building Type of Assets Trust beneficial interest in real estate 5-26-13, Ogikubo, Suginami-ku, 8-2-5, Nishishinjuku, Shinjuku-ku, Location Tokyo Tokyo 3,800 million yen 942million yen Acquisition Price (excluding associated acquisition (excluding associated acquisition costs, consumption tax, etc.) costs, consumption tax, etc.) Date of Conclusion of purchase July 15, 2016 agreement Date of Delivery (scheduled) July 21, 2016 (scheduled) Seller GK TC1 Funding for Acquisition Cash on hand Payment Method Lump-sum payment at the time of delivery Intermediary Not disclosed (Note) (Note) The intermediary of the properties is a domestic corporation that has not agreed to disclose its name. 2. Reason for Acquisition We believe that Ogikubo TM Building is an appropriate office building pursuant to the basic policy for the asset management set forth in the Articles of Incorporation and the management policy of the Investment Corporation, and have decided to acquire the property recognizing its rarity and profitability. The management policy of the Investment Corporation states that investment shall be made in properties with a total floor area of 2,000m2 or more in principle. Although the total floor area of Shinjuku West Building is 1,438.16m2, we have decided the acquisition due to its rarity and profitability. Please refer to the following for the details. I. Ogikubo TM Building (1) Location and tenant attribution: The property is located a one-minute walk from Ogikubo Station on the JR Chuo/Sobu Lines and Tokyo Metro Marunouchi Line. Not only that two lines (JR and subway) available for use, JR Ogikubo Station is only about 11 minutes from Shinjuku Station and about 24 minutes from Tokyo Station. This press release has been prepared as a public announcement regarding the Investment Corporation’s acquisition of asset and not prepared with the aim of soliciting investments. We caution investors to refer to the Investment Corporation's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 1 Therefore, the property enjoys excellent transport convenience as it is relatively close to central Tokyo compared to other areas in Tokyo outside the 23 wards. Since both north and south sides of the property are commercially busy areas and the property is very close to Ogikubo Station, it has a strong appeal to companies that offer services to local residents, such as banks, securities companies, cram schools, clinics and residential real estate agencies. Furthermore, having two lines (JR and subway) available, it can also expect demand for a call center and other back-offices from major companies in central Tokyo. (2) Building Scale and Facilities: The property has a total floor area of approximately 1,558 tsubo. Since most of office buildings in the Ogikubo Station vicinity are medium to small-sized and majority of office buildings in the neighboring Kichijoji and Nakano areas have a total floor area of less than 1,000 tsubo, the size of the property can exert a strong appeal. The property has a standard floor area of about 172 tsubo with rectangle-shaped (roughly regular-shaped) rental spaces with a side core design, thus offering excellent layout flexibility and usability. In addition, the spaces can take in abundant sunlight as it stands on a corner lot, and floors can be divided to accommodate the needs of small tenants. These factors are believed to help take in office demand from a wide range of businesses including a shop-visit type tenant as well as demand for various sizes. With its functionality at a favorable location, this property should continuously perform competitively and contribute to the return of the Investment Corporation’s portfolio. II. Shinjuku West Building (1) Location and tenant attribution: The property is located a two-minute walk from Nishi-Shinjuku Station on the Tokyo Metro Marunouchi Line and has a good appeal in terms of proximity to the station. In addition, it is located a seven-minute walk from Shinjuku Station, the largest terminal station in Tokyo, enjoying a high transport convenience with multiple railway lines including JR lines available for use. The characteristics of tenants in the Nishi-Shinjuku area include concentration of various shop-visit type service-related businesses such as temp-staffing companies and insurance companies and other financial companies targeting end users as well as call center operators and IT-related companies, against the background of JR Shinjuku Station’s significant role as a terminal station. Furthermore, since residential areas spread on the back side, the property is also likely to appeal to broader demand groups including sales bases of housing-related companies and manufacturers-affiliated companies. (2) Building Scale and Facilities: Since the rental spaces of the property are rectangle-shaped (regular-shaped) with a side core design, it offers excellent layout flexibility and usability. On top of that, rental spaces can be easily divided, satisfying the tenant needs for various sizes. The massive façade on the exterior suits the surrounding serene environment and the entrance offers sufficient space for the size of the building. It also has abundant natural light coming in. This press release has been prepared as a public announcement regarding the Investment Corporation’s acquisition of asset and not prepared with the aim of soliciting investments. We caution investors to refer to the Investment Corporation's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 2 The main specifications of the property are individually-controlled air-conditioning, 2,480mm of ceiling height and 3-way floor duct, boasting the standards that meet recent office needs. The property can also accommodate the office needs for a sales base that requires loading/unloading as it provides flat parking in the premises as well as warehouse sections on each floor. With its functionality at a favorable location, this property should continuously perform competitively and contribute to the return of the Investment Corporation’s portfolio. 3. Details of the Property to Be Acquired I. Ogikubo TM Building Property Name Ogikubo TM Building Type of Specified Assets Trust beneficial interest in real estate Trustee (scheduled) Sumitomo Mitsui Trust Bank, Limited Trust Period (scheduled) From March 29, 2006 to July 31, 2026 Location (Lot Number) 5-128-2 Ogikubo, Suginami-ku, Tokyo and other 3 lots Use (Real Property Registry) Office, Warehouse, Bank, Parking, Lavatory (i) Land: Ownership (ii) Building: Sectional ownership （Ratio of Ownership Form sectional ownership: 100%） Site Area (Real Property Registry) 970.53 m2 Total Floor Area 5,116.78 m2 (Real Property Registry) Structure Steel framed reinforced concrete structure flat roof, 7 stories above (Real Property Registry) ground and 1 below. Construction Date November 13, 1990 (Real Property Registry) Mitsubishi Estate Co., Ltd. (Trade name at the time of applying for Building Engineer building confirmation) Constructor Taisei Corporation Mitsubishi Estate Co., Ltd. (Trade name at the time of applying for Structural-design Engineer building confirmation) Floor Height/Ceiling Height 3,750 mm (for standard floor) / 2,500 mm (for standard floor) Each floor individual treatment air-conditioning Air-conditioning System/OA Laying OA-capable floor Building Inspection Agency Suginami Ward, Tokyo Engineering Due Diligence Tokyo Bldg-Tech Center Co., Ltd. Company Soil Contamination Risk Survey Earth-Appraisal Co., Ltd. Company Probable Maximum Loss Level 6.41% (Sompo Risk Care Management Inc.) (Assessor) 3,800 million yen Acquisition Price (excluding acquisition costs and consumption tax, etc.) Appraisal Value 4,230 million yen (Appraisal Date) (as of July 1, 2016) This press release has been prepared as a public announcement regarding the Investment Corporation’s acquisition of asset and not prepared with the aim of soliciting investments. We caution investors to refer to the Investment Corporation's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 3 Appraiser DAIWA REAL ESTATE APPRAISAL CO., LTD. Collateral None Summary of Tenants 11 Total Number of Tenants (As of scheduled acquisition date) Rent Revenue ¥20 million per month (May 2016) (Note 1) Security Deposit and ¥154 million yen (May 31, 2016) (Note 1) Guaranty Total Leased Floor Space 3,849.63 m2 (estimated as of the scheduled delivery date) (Note 2) Total Leasable Floor Space 3,849.63 m2 (Note 2) March 31, 2014 78.2% Trend in occupancy rates March 31, 2015 93.4% (Note 2) March 31, 2016 100.0% Scheduled acquisition date 100.0% NOI yield at acquisition (Note 3) 5.0% Midterm NOI yield (Note 4) 4.7% Appraised NOI yield (Note 5) 5.0% Depreciation (Note 6) 0.5% Other Relevant Information None (Note 1) The figures are based on data obtained from the Seller. (Note 2) The figures are based on the data obtained from the Seller for the total leased floor space, total leasable floor space and trend in occupancy rates of the end tenants.