September 26, 2006 For Immediate Release New City Residence Investment Corporation 1-10-6 Roppongi, Minato-ku, Tokyo Tetsuya Fujita, Executive Officer (Securities Code: 8965) Inquiries: CBRE Residential Management K.K. Jun Arai, Director and Chief Investment Officer TEL: +81-3-6229-3860 Notice Concerning the Proposed Sale of Investment Assets New City Residence Investment Corporation (“NCRI” or “the Investment Corporation”) today announced its decision to sell the following investment asset. 1. Sale Details ① Asset Type ： Beneficiary interests in trust that places real estate in trust ② Property Names ： New City Residence Meguro Mita New City Residence Kyodo New City Residence Uehonmachi ③ Total Sale Price (planned) ： ¥8,686,000,000 (exclusive of transfer costs, adjusted amount of property tax and urban planning tax, as well as consumption tax and local consumption tax) ④ Total Acquisition Price ： ¥7,636,000,000 ⑤ Total Book Value ： ¥7,748,083,959 (As of February 28, 2006) ⑥ Difference between Total Sale ： ¥937,916,041 (difference between ③ and ⑤ above) Price (planned) and Total Book Value 2．Details of Properties (1) New City Residence Meguro Mita ① Asset Type ： Beneficiary interests in trust that places real estate in trust ② Property Name ： New City Residence Meguro Mita ③ Sale Price (planned) ： ¥7,070,000,000 (exclusive of transfer costs, adjusted amount of property tax and urban planning tax, as well as consumption tax and local consumption tax) ④ Acquisition Date ： December 17, 2004 ⑤ Acquisition Price ： ¥6,066,000,000 ⑥ Book Value ： ¥6,116,835,888 (As of February 28, 2006) ⑦ Difference between Sale Price ： ¥953,164,112 (difference between ③ and ⑥ above) (planned) and Book Value ⑧ Contract Date (planned) ： September 26, 2006 ――――――――――――――――――――――――――――――――――――――――――――――――――――― 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. ⑨ Delivery Date (planned) ： October 31, 2006 ⑩ Buyer ： GE Real Estate - Japan (Please refer to 5. below for details) ⑪ Sale Method ： Sale of beneficiary interests in trust that places real estate in trust to the above Buyer. (2) New City Residence Kyodo ① Asset Type ： Beneficiary interests in trust that places real estate in trust ② Property Name ： New City Residence Kyodo ③ Sale Price (planned) ： ¥757,000,000 (exclusive of transfer costs, adjusted amount of property tax and urban planning tax, as well as consumption tax and local consumption tax) ④ Acquisition Date ： December 15, 2004 ⑤ Acquisition Price ： ¥715,000,000 ⑥ Book Value ： ¥752,864,843 (As of February 28, 2006) ⑦ Difference between Sale Price ： ¥4,135,157 (difference between ③ and ⑥ above) (planned) and Book Value ⑧ Contract Date (planned) ： September 26, 2006 ⑨ Delivery Date (planned) ： October 31, 2006 ⑩ Buyer ： GE Real Estate - Japan (Please refer to 5. below for details) ⑪ Sale Method ： Sale of beneficiary interests in trust that places real estate in trust to the above Buyer. (3) New City Residence Uehonmachi ① Asset Type ： Beneficiary interests in trust that places real estate in trust ② Property Name ： New City Residence Uehonmachi ③ Sale Price (planned) ： ¥859,000,000 (exclusive of transfer costs, adjusted amount of property tax and urban planning tax, as well as consumption tax and local consumption tax) ④ Acquisition Date ： February 25, 2005 ⑤ Acquisition Price ： ¥855,000,000 ⑥ Book Value ： ¥878,383,228 (As of February 28, 2006) ⑦ Difference between Sale Price ： ▲19,383,228 yen (difference between ③ and ⑥ above) (planned) and Book Value ⑧ Contract Date (planned) ： September 26, 2006 ⑨ Delivery Date (planned) ： October 31, 2006 ⑩ Buyer ： GE Real Estate - Japan (Please refer to 5. below for details) ⑪ Sale Method ： Sale of beneficiary interests in trust that places real estate in trust to the above Buyer. 3．Reasons for Sale As a result of a comprehensive review based on the asset management targets and policy as designated in NCRI’s Articles of Incorporation, which took into account trends in the real-estate trading market, prospects of developments in the area, revenue projections, state of individual properties, overall portfolio composition and other factors, NCRI made sure that the transfer timing, transfer value, etc. to be appropriate. NCRI thus decided to transfer these properties in an aim to enhance the portfolio and boost efficiency in its management over the medium- and long-term. 4．Profile of Investment Assets to be Sold (1) New City Residence Meguro Mita Property No.：M-1 Property Name：New City Residence Meguro Mita ――――――――――――――――――――――――――――――――――――――――――――――――――――― 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. (Lot) 1-55-1 Mita, Meguro-ku, Tokyo, and two other Address (Residential) 1-7-13 Mita, Meguro-ku, Tokyo addresses Type of Proprietary ownership Type of Ownership Proprietary ownership Ownership Office, apartment Site Area 1,866.39㎡ Use Land complex and parking lot Construction/No.of Zoning Class 1 residential zone RC 6F/B1F Floors FAR/Building 300% / 60% Building Total Floor Space 7,347.97 m2 Coverage Ratio Mizuho Trust & Banking Co., Trustee Leasable Floor Space 5,264.94 m2 Ltd. No. of Leasable Trust Maturity Date March 10, 2009 41 Apartments Acquisition Price (million yen) 6,066 Completion Date September 30, 2002 PM Company New City Property Service K.K. Sublease Firm New City Leasing Five Y.K. Appraised Value ¥6,135 million (Appraised Date and Appraiser) (Appraised by Tanizawa Sogo Appraisal Co., Ltd as of August 31, 2006) As of August 31, 2006 Monthly Rent: ¥31,567,077 Deposits, Guarantees, etc.: ¥155,512,115 Occupancy Rate: 98.6% (2) New City Residence Kyodo Property No.：M-7 Property Name：New City Residence Kyodo (Residential) 5-33-13 Kyodo, Setagaya-ku, (Lot) 5-729-1 Kyodo, Setagaya-ku, Tokyo, and one Address Tokyo other address Type of Proprietary ownership Type of Ownership Proprietary ownership Land Ownership Building Office and apartment Site Area 1,056.06㎡ Use complex Construction/No.of Zoning Quasi industrial zone RC 5F Floors FAR/Building 200% / 60% Total Floor Space 1,941.93 m2 Coverage Ratio Mizuho Trust & Banking Co., Leasable Floor Trustee 1,621.24 m2 Ltd. Space No. of Leasable Trust Maturity Date February 19, 2009 24 Apartments Acquisition Price (million yen) 715 Completion Date May 2, 1989 PM Company New City Property Service K.K. Sublease Firm New City Leasing Four Y.K. Appraised Value ¥679 million (Appraised Date and Appraiser) (Appraised by Tanizawa Sogo Appraisal Co., Ltd. as of August 31, 2006) As of August 31, 2006 Monthly Rent: ¥4,298,200 Deposits, Guarantees, etc.: ¥9,776,900 Occupancy Rate: 89.6% (3) New City Residence Uehonmachi Property No.： R-8 Property Name：New City Residence Uehonmachi (Residential) 5-3-17 Uehonmachi, Tennoji-ku, (Lot) 5-2-10 Uehonmachi, Tennoji-ku, Osaka-shi, Address Osaka-shi, Osaka Osaka, and two other addresses Land Type of Proprietary ownership Building Type of Ownership Proprietary ownership Ownership ――――――――――――――――――――――――――――――――――――――――――――――――――――― 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. Site Area 424.21㎡ Use Apartment complex Commercial zone and class 2 Construction/No.of Zoning RC、11F residential zone Floors FAR/Building 600% / 80% 400% / 80% 300% Total Floor Space 2,163.23 m2 Coverage Ratio / 60% Mizuho Trust & Banking Co., Leasable Floor Trustee 1,826.30 m2 Ltd. Space No. of Leasable Trust Maturity Date September 30, 2010 30 Apartments Acquisition Price (million yen) 855 Completion Date July 15, 2004 PM New City Property Service K.K. Sublease Firm New City Leasing Six Y.K. Company Appraised Value ¥855 million (Appraised Date and Appraiser) (Appraised by Tokyo Joint Appraisal Office as of August 31, 2006) As of August 31, 2006 Monthly Rent: ¥4,551,000 Deposits, Guarantees, etc.: ¥8,989,000 Occupancy Rate: 90.0% 5．Buyer Profile ① Company Name ： GE Real Estate - Japan ② Head Office Address ： 1-12-32 Akasaka, Minato-ku, Tokyo ③ Representative ： Tomoyuki Yoshida ④ Capital ： ¥3,741,000,000 ⑤ Principal Activities ： 1. Acquiring, owning, renting, managing and using real estate 2. Selling and purchasing real estate and related brokerage, appraisal services, etc. ⑥ Relationship with NCRI ： Nil 6. Broker Profile Not provided as consent has not been obtained from the broker concerning the disclosure. The broker is not an interested party, etc. as prescribed in Article 15.2 of the Investment Trust and Investment Corporation Law. 7．Outlook Sale of investment assets will not impact the operating conditions for the fiscal period ending August 2006 (March 1, 2006 to August 31, 2006). In addition, the projected cash flow for the fiscal period ending February 2007 (September 1, 2006 to February 28, 2007) that has factored in the impact of selling these investment assets is scheduled to be released in the financial statements for the fiscal period ending August 2006 (March 1, 2006 to August 31, 2006). z This document is released to media organizations through the “Kabuto Club” (the press club of the Tokyo Stock Exchange), the Ministry of Land, Infrastructure and Transport Press Club, and the Press Club of the Construction Papers for the Ministry of Land, Infrastructure and Transport. z URL: http://www.ncrinv.co.jp ――――――――――――――――――――――――――――――――――――――――――――――――――――― 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. Attachment：Real Estate Portfolio after Planned Sale of Investment Assets Acquisition Price Percent of Area Property No. Property Name Acquisition Date (Millions of yen) Total C-1 NCR Minami Aoyama Dec.