Translation of Japanese Original July 28, 2017 To All Concerned Parties REIT Issuer: Kenedix Office Investment Corporation Naokatsu Uchida, Executive Director (Securities Code: 8972) Asset Management Company: Kenedix Real Estate Fund Management, Inc. Masahiko Tajima, President & CEO Inquiries: Jiro Takeda Head of Planning Division Office REIT Department TEL: +81-3-5623-8979 Notice Concerning Acquisition of Property (Shibuya 1717 Building) Kenedix Office Investment Corporation (“the Investment Corporation”) has announced today, that Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”), the asset management company for the Investment Corporation, decided to acquire the following property (“the Acquisition”). 1. Outline of the Acquisition (1) Property Name : Shibuya 1717 Building (2) Type of Property to be Acquired : Trust beneficiary interest in real estate (3) Anticipated Acquisition Price : 3,500 million yen (Acquisition costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.) (4) Seller : Godo Kaisha Southhills Investment Please refer to “4. Seller’s Profile” for the details. (5) Date of Contract : July 28, 2017 (6) Scheduled Date of Acquisition : August 10, 2017 (7) Acquisition Funds : Debt financing (Note) and cash on hand (8) Settlement Method : Payment in full on settlement The aforementioned Shibuya 1717 Building shall hereinafter be referred to as “the Property”. Note: For details of the debt financing, please refer to the press release, “Notice Concerning Debt Financing (Series 142)” dated July 28, 2017. 2. Reason for the Acquisition The decision on the Acquisition was made to further enhance the Investment Corporation’s investment portfolio, while comprehensively considering the Investment Corporation’s portfolio development policy, real estate market trends, the characteristics of the Property and other factors. In the decision to acquire the Property, which is mid-sized office building that the Investment Corporation has focused on as main investment target, the following characteristics of the Property were evaluated. 1 (1) Area The Shibuya area is recognized as one of Tokyo’s best known commercial districts with a high concentration of IT-related companies. Due to several redevelopment projects planned in the area, the area is expected to continuously develop in the future. The Property is located in Nanpeidaicho, Shibuya-ku with approximately 12 minutes on foot from Shibuya Station on 9 lines including JR Yamanote Line, Tokyo Metro Ginza Line, Tokyu Den-en-toshi Line and other lines, and approximately 8 minutes from Shinsen Station on Keio Inokashira Line. The Nanpeidaicho area in which the Property is located has grown as high-end residential area and maintains quiet and high-class landscape despite within walking distance from Shibuya Station, and is in demand from apparel and IT-related companies that prefer such environment. (2) Building The Property has leasable floor areas of about 623 m2 (about 188 tsubos) on the standard floors with ceiling height of 2.7 m, and is equipped with individual air conditioners, OA floors (100 mm), automated security system and plane parking spaces (7 spaces). The Property is relatively small as the total floor area of the entire building is about 2,832 m2 (about 856 tsubo). Accordingly, in addition to the demand for each leasing floor, the Property can also meet the needs of the tenant using the entire building. Through the Acquisition, the portfolio of the Investment Corporation will expand to 99 properties (total: 398.7 billion yen). The investment ratio of office buildings in the portfolio will be 92.3%, and the investment ratio of the Tokyo Metropolitan Area (Note) in the portfolio will be 80.6% (The figures are based on acquisition price.). Note: Tokyo Metropolitan Area refers to major cities in Tokyo Metropolitan, Kanagawa, Saitama, and Chiba Prefectures. 3. Details of the Property Property Name Shibuya 1717 Building Type of Specified Asset Trust beneficiary interest in real estate Trustee Mitsubishi UFJ Trust and Banking Corporation Trust Term April 14, 2014 to April 30, 2024 (Note 1) Current Owner (Current Beneficiary) Godo Kaisha Southhills Investment Location (Address) 17-17 Nanpeidaicho, Shibuya-ku, Tokyo Usage Office Type of Structure Flat-roofed, Steel-framed structure; 4 above-ground floors Land 1,276.02 m2 Site Area Building (Total Floor Area) 2,832.58 m2 Type of Land Proprietary ownership Ownership Building Proprietary ownership Completion Date December 22, 2003 Architect JT Real Estate Co., Ltd. Construction Company JT Real Estate Co., Ltd. Construction Confirmation Authority Shibuya-ku, Tokyo Probable Maximum Loss 7.64% (Sompo Risk Management & Health Care Inc.) Anticipated Acquisition Price 3,500 million yen Appraisal Value 3,710 million yen Base Date for Appraisal July 1, 2017 Appraisal Appraiser Daiwa Real Estate Appraisal Co.,Ltd. Details Please refer to “10. Summary of Appraisal Report” below. Existence of Secured Interests after None Acquisition 2 Master Lease Company after Acquisition The Investment Corporation Property Management Company after Kenedix Property Management, Inc. Acquisition Details of Tenant As of July 28, 2017 Number of End Tenants 1 Total Leasable Area 2,205.16 m2 Total Leased Area 2,205.16 m2 Occupancy Rate 100.0% Monthly Rent and Common Area Charge Not disclosed (Note 2) (Excluding Consumption Tax, etc.) Security and Guarantee Deposit Not disclosed (Note 2) Forecast income and expenditure Please refer to “Reference Material 1” for details. (annual amount) Forecast Net Operating Income 126 million yen Forecast Net Operating Income 111 million yen after Depreciation Special Not applicable Considerations (Note 1) The Investment Corporation plans to change the trust term to till August 1, 2025 at Other the date of acquisition. (Note 2) It is not disclosed due to the tenant’s disapproval. 4. Seller’s Profile Company Name Godo Kaisha Southhills Investment Location 2-1-3 Nihombashi, Chuo-ku, Tokyo Ippan Shadan Hojin Daikokuten Capital, Representative Partner Name and Title of Representative Takaaki Fukunaga, Administrator 1. Purchase, holding and sale of real estate 2. Leasing and management of real estate 3. Purchase, holding and sale of trust beneficiary interest in real estate 4. Purchase, holding and sale of securities (including securities Description of Business equivalents), other equity interest, monetary claim and other assets for investment of various corporations and partnerships conducting the businesses listed in the preceding items 5. Other businesses incidental or relating to the preceding items Amount of Capital 100,000 yen Date of Incorporation November 27, 2013 Net Assets Not disclosed due to the seller’s disapproval Total Assets Not disclosed due to the seller’s disapproval Relationship with the Investment Corporation/the Asset Management Company There is no special capital relationship between the Investment Capital Relationship Corporation or the Asset Management Company. There is no special personnel relationship between the Investment Personnel Relationship Corporation or the Asset Management Company. There is no special business relationship between the Investment Business Relationship Corporation or the Asset Management Company. The seller is not a related party, etc. as defined in the Act on Investment Applicability of Related Party Trusts and Investment Corporations (“the Investment Trust Act”) and not Relationships a related party as defined in the Office REIT Department Related-party Transaction Rules of the Asset Management Company. 3 5. Acquirer’s (Previous Owners of Current Owner) Profile It is omitted because the seller (the current owner) of the Property is not special related party of the Investment Corporation or the Asset Management Company. 6. Details of Brokerage The details of the brokerage firm and the brokerage fee involved in the Acquisition are as follows. Name of Brokerage Firm Nomura Real Estate Development Co., Ltd. Location 1-26-2, Nishi-shinjuku, Shinjuku-ku, Tokyo Title and Name of Representative Seiichi Miyajima, President and Representative Director Brokerage Fee Not disclosed due to the brokerage firm’s disapproval The brokerage firm is not a related party, etc. as defined in the Investment Trust Act and not a related party as defined in the Office REIT Relationship with the Investment Department Related-party Transaction Rules of the Asset Management Corporation or the Asset Company. In addition, there is no special capital, personnel or business Management Company relationship between the brokerage firm and the Investment Corporation or the Asset Management Company. 7. Related Party Transaction The Acquisition results in transactions between the Investment Corporation and the related party, falling under the following categories of transactions. The Asset Management Company, pursuant to the Office REIT Department Related-party Transaction Rules, worked to ensure strict compliance with statutory and other regulatory requirements and submitted the Acquisition for deliberation and approval by the Compliance Committee. Through the approval, the Acquisition was then submitted to the Office REIT Department Asset Management Committee for resolution and approved by the committee. Furthermore, in accordance with the Investment Trust Act, the Asset Management Company shall provide a report to the Investment Corporation relating to the related party transaction concerning the Acquisition. Appointment of a Property Management