Notice of Acquisition of Asset

Transcription

1 For Immediate Release June 5, 2007 REIT issuer CREED OFFICE Investment Corporation Kasumigaseki, Chiyoda-ku, Tokyo Name of representative Executive Officer Contact Hideya Yamanaka (Code number: 8983) Creed REIT Advisors, Inc. GM, Finance Hisayoshi Towata (Tel: ) Notice of Acquisition of Asset CREED OFFICE Investment Corporation (the Investment Corporation ) is pleased to announce that the Investment Corporation has decided on the acquisition of an asset today. Details of the acquisition are as follows: 1. Summary of Acquisition (1) Asset to be acquired : Real estate (2) Name of the acquired asset : COI Ebisu Nishi (property number: A-21) * (3) Location : 2-7-3, Ebisu-Nishi, Shibuya-ku, Tokyo (4) Scheduled acquisition cost : 3,000,000,000 yen (not including acquisition expenses, property tax, city planning tax and consumption tax) (5) Vendor : Refer to the Vendor Profile below (6) Signing date of the sales : June 5, 2007 (scheduled) agreement (7) Date of acquisition : By the end of November 2007 (scheduled) (8) Funds for acquisition : Use of the Investment Corporation s own funds is planned. *The name is scheduled to be changed to the name above after the Investment Corporation acquires the asset. 2. Reasons for Acquisition The reason for this acquisition is to improve the portfolio by increasing the weighting of the Investment Corporation s investment in office buildings located in the five wards in central Tokyo, reflecting the basic policy of asset management and the investment stance provided in the Regulation of the Investment Corporation. When deciding on the acquisition, the following points were assessed in particular: Good location and luxurious building specifications that are rare in the Ebisu area The Ebisu area where the asset is located is an area with small and large tenants on both major roads and alleys centering around Ebisu Station on JR Lines and the Tokyo Metro Hibiya Line, and has merchandise, food and service related stores as well as the characteristics of the region as an information center. Consequently, the area has active tenant demand from primarily IT related firms and software development related firms. On the other hand, the supply of office buildings is relatively low compared to the large size of the demand and vacancy rates in the area have hovered at low levels. The asset is situated within such an area, on a corner lot that is highly visible and accessible, about a five-minute walk from Ebisu Station. Constructed in 1992, the building boasts luxurious specifications. An example is the marble floors and 1

2 walls of the first floor entrance. In addition, rental units are installed with individual air-conditioning systems on each floor and, because of its regular shape, tenants will find it easy to use. The fact that there is multilevel parking with spaces for 18 vehicles can be viewed as another point that makes this asset superior to surrounding buildings. The occupancy ratio of the asset, as of today, is 100%. Concerning the rental units that the seller is currently using, the seller plans to continue using those rental units after the Investment Corporation acquires the asset. Thus, a regular lease agreement is scheduled to be newly entered with the seller as the lessee at the same time as when the acquisition of the asset is settled. 3. Asset Summary Summary of Specific Asset Outline of Real Estate Appraisal Certificate (yen) Type of specified asset Real estate Appraisal company Rich Appraisal Institute K.K. Acquisition cost 3,000,000,000 yen Appraised value 3,010,000,000 (estimate) Location 2-7-3, Ebisu-Nishi, Shibuya-ku, Tokyo Date of appraisal May 1, 2007 (residence indication) Type of ownership Ownership right Profit price through direct 3,110,000,000 capitalization method Land area (m2) Income 156,102,666 Use Commercial area Obtainable rent income 150,037,800 Land coverage / 80% / 500% Amount equivalent to loss on 4,501,134 floor area ratio vacant space Type of ownership Ownership right Other income 10,566,000 Use Office and parking lot Expenditure 19,334,156 Total floor area (m2) 2, Administrative and 8,785,848 maintenance expenses, etc. Structure/Floors SRC B1/9F Taxes and public dues 9,307,500 Time of construction June 10, 1992 Other expenses 1,240,808 Parking facilities 18 Net operating income (NOI) 136,768,510 PML from earthquake 13.7% (Assessment company: Shimizu Capital expenditure 7,214,000 Corporation) (repair reserve), etc. Architect Sanwa Tatemono, Inc. Net profit 130,764,726 Builder Sanwa Tatemono, Inc. Cap rate 4.2% Check & inspection Shibuya-ku, Tokyo Profit price based on DCF method 2,970,000,000 organization Lease condition (as of May 31, 2007) Discount rate 4.1% Total number of end tenants 4 (excluding seller) Final cap rate 4.3% Rentable space (m2) 1, (including portion Cumulative value based on cost 1,600,000,000 occupied by seller) method Leased area (m2) 1, (including portion Ratio of land 79.0% occupied by seller) Occupancy ratio (area basis) 100.0% Ratio of building 21.0% Property management company XYMAX AXIS Corporation consigned after acquisition Special Items 1. Boundary with adjacent land At present, boundaries with all adjacent land (including government land) are unconfirmed. In regards to this matter, the boundaries are currently being confirmed by the seller. The fence, block, etc. near the boundaries may possibly cross the boundaries to each other s land. 2. Shed installed by seller Steel sheds have been installed on the escape balcony on the 2F, 8F and 9F of the building, but the seller is scheduled to be responsible for removing these by the time the building is to be handed over to the Investment Corporation. 3. The Investment Corporation plans to make the purchase with its own funds and currently has no plans to pledge collateral for the asset. Land 2

3 Vendor Profile The vendor of this asset is not disclosed at the request of the vendor. The vendor is not an interested party, etc. as defined in the Investment Trust and Investment Corporation Law and interested party as defined in the internal rules of the asset management company. 5. Agent Profile Company name The Sumitomo Trust & Banking Co., Head office address , Kitahama, Chuo-ku, Osaka Representative Yutaka Morita Paid-in capital billion yen (as of the end of September 2006) Main business Banking business and trust business Relationship between the No statement required Investment Corporation and the investment trust management company Fees paid to the agent are not disclosed at the request of the agent. The agent is not an interested party, etc. as defined in the Investment Trust and Investment Corporation Law and interested party as defined in the internal rules of the asset management company. 6. Outlook of the Conditions of Management and Investment The acquisition of the asset is scheduled to occur during November 2007, and there is no change in the outlook of the conditions of management and investment for the term ending October 2007 (May 1, 2007 to October 31, 2007). <Appendices> Reference Material 1: General view photo, map Reference Material 2: List of portfolio after acquisition of the asset Reference Material 3: List of architects, builders and inspection organizations * This document is being distributed today to the Kabuto Club (the press club of the TSE) as well as to the press club for the Ministry of Land, Infrastructure and Transport and the press club for specialty construction newspapers at the Ministry of Land, Infrastructure and Transport. * Website of the Investment Corporation: 3

4 <Reference Material 1> General view photo, map COI Ebisu Nishi 4

5 <Reference Material 2> Region Property Name of property Tokyo metropolitan area Kansai area Five major metropolitan areas Other principal cities Portfolio List Acquisition cost (million yen) Ratio (%) Acquisition date A-1 Shinichi 7, March 17, 2006 A-2 Nishisando Yamaki 4, March 15, 2006 A-3 Roppongi DK 2, March 16, 2006 A-4 MTC 2, March 16, 2006 A-5 COI Higashi-Nihonbashi 2, March 16, 2006 A-7 Nanpeidai Chiyoda 2, March 17, 2006 A-8 Joware Hanzomon 2, March 16, 2006 A-9 Dai20 Chuo 1, March 15, 2006 A-10 Infini Akasaka 1, March 17, 2006 A-12 Profitlink Hijirizaka 1, March 17, 2006 A-13 Hirakawacho March 15, 2006 A-14 Shinbashi Sky March 17, 2006 A-15 Daimon Sano March 17, 2006 A-16 Tamachi Kataoka March 17, 2006 A-17 Ginza Todoroki March 17, 2006 A-18 COI Shibuya Kamiyamacho 1, May 16, 2006 A-19 Akasaka Wakamiya May 16, 2006 A-20 COSMO Shibazonobashi 1, February 22, 2007 A-21 COI Ebisu Nishi 3, By November 2007 end B-1 Gotanda Fuji 5, March 16, 2006 B-2 Burc Omori 3, March 17, 2006 B-3 Benex S-2 2, March 17, 2006 B-4 Daiwa Kunitachi 2, March 17, 2006 B-5 Asakusa Kaminarimon SIA 1, March 15, 2006 B-6 Green-Park 1, March 16, 2006 B-7 REGALO 1, March 15, 2006 B-8 OT 1, March 16, 2006 B-9 Lespoir 296 1, March 16, 2006 B-10 Technos Nakano March 17, 2006 B-11 Eishin 1, June 1, 2006 B-12 Yokosuka Bayside 1, May 16, 2006 C-1 Yotsubashi-Chuo 1, March 16, 2006 C-2 Aspire 7Bankan March 17, 2006 C-3 Ibaraki Kowa March 17, 2006 D-1 Sendai Ichibancho 2, March 17, 2006 D-2 Kearney Place Hiroshima Kamiyacho 1, March 15, 2006 D-3 COI Mei-Eki 1, March 15, 2006 D-4 Nagoya Plaza 5, April 24, 2006 D-5 Minami2jyou Plum 1, May 16, 2006 D-6 COI Sendai Chuo June 30, 2006 E-1 Toyamaeki Nishi 2, March 15, 2006 E-2 Daihyaku Mirai-Shinkin 1, March 15, 2006 E-3 Kearney Place Saga 1, March 15, 2006 E-4 Naha Trust 1, March 16, 2006 E-5 Kearney Place Kanazawaeki-Mae 1, March 15, properties in total 87, (Note 1) In the Acquisition Cost column, the acquisition costs excluding consumption tax on the acquired assets are listed. As the figures are rounded to the nearest million yen, the sum of the listed amounts will not necessarily equal the total amount. (Note 2) In the Ratio column, the ratios of the acquisition costs of acquired assets to the total amount are listed. As the figures are rounded to the nearest first decimal place, the sum of the listed ratios will not necessarily amount to 100%. 5

6 <Reference Material 3> List of architects, builders and inspection agencies Property number Name of property Architect Builder Inspection agency A-1 Shinichi Obayashi Corporation Obayashi Corporation A-2 Nishisando Yamaki Nikken Sekkei Joint venture of Tokyu Construction and Keio Construction A-3 Roppongi DK A-4 MTC A-5 A-7 COI Higashi-Nihonbashi Nanpeidai Chiyoda Sanwa Tatemono, Inc. Sanwa Tatemono Engineering, Inc. (building extension) Ishimoto Architectural & Engineering Firm, Inc. Kimura Architects and Engineering Office Sanwa Tatemono, Inc. Sanwa Tatemono Engineering, Inc. (building extension) Sato Kogyo Co., Joint venture of Taisei Corporation and Nissan Kensetsu Co., A-8 Joware Hanzomon Art Space Factory Co., Satohide Corporation A-9 Dai20 Chuo First-Class Architect Office of Satokogyo Co., Sato Kogyo Co., A-10 Infini Akasaka Kikutake Kiyonori Architect Kajima Corporation A-12 Profitlink Hijirizaka Kokune Corporation Kokune Corporation A-13 Hirakawacho Nihon Sekkei, Inc. A-14 Shinbashi Sky NCA Architect and Design, Inc. Kitano Construction Corporation A-15 Daimon Sano Tsuji Design Office Tatsumura-gumi, Inc. A-16 A-17 A-18 A-19 A-20 A-21 Tamachi Kataoka Urbanlife Architect & Engineers Inc. Ginza Todoroki Maeda Corporation COI Shibuya IAO Takeda Architects Associates Kamiyamacho Co., Akasaka Wakamiya Akira Watanabe Architects and Associates COSMO Shibazonobashi Oka Sekkei K. K. COI Ebisu Nishi Sanwa Tatemono, Inc. First-Class Architect Office Nishimatsu Construction Co., Maeda Corporation Tobishima Corporation Kajima Corporation Sanwa Tatemono, Inc. B-1 Gotanda Fuji Kyosuke Mori Architect Office Daisue Construction Co., B-2 Burc Omori Daiichi Office Co., Shintoshi Office Co., (building extension) Magara Construction Co., B-3 BENEX S-2 Rui Design Room Kajima Corporation B-4 Daiwa Kunitachi / ( extension) (Chiyoda-ku) (Chuo-ku) (Chiyoda-ku) (Chuo-ku) (Including building extension) (Yokohama-shi) (Tokyo Tama Nishi Guidance Office) 6

7 B-5 Asakusa Kaminarimon Nomura Real Estate Development Co., Haseko Corporation SIA First-Class Architect Office (Taito-ku) B-6 Green-Park Ishikawa Masayoshi First-Class Architect Office (Toshima-ku) B-7 REGALO Urban Development Engineering & Daisue Construction Co., Consulting Inc. (Machida-shi) B-8 OT Yamanaka Design Lab. Obayashi Corporation (Bunkyo-ku) B-9 Lespoir 296 Kowa Architect Office Sato Kogyo Co., (Yokohama City) B-10 Technos Nakano Nishimatsu Construction Co., Yokomine Architect Office (Nakano-ku) B-11 Eishin Raymond Architectural Design Mitsui Construction Co., Office, Inc. (Koto-ku) B-12 Yokosuka Bayside Taisei Corporation Taisei Corporation (Yokosuka City) C-1 Yotsubashi-Chuo (Osaka City) C-2 Aspire 7Bankan Sanwa Architect Office Muramoto Coporation (Amagasaki City) C-3 Ibaraki Kowa Konoike Construction Co., Konoike Construction Co., (Osaka prefecture) D-1 Sendai Ichibancho (Aoba-ku Sendai-shi) D-2 Kearney Place Hiroshima Kamiyacho (Hiroshima City) D-3 COI Mei-Eki Nakamura Construction Co., Nakamura Construction Co., First-Class Architect Office (Nagoya City) D-4 Nagoya Plaza Suematsu Architect Office (Nagoya City) D-5 Minami2jyou Plum Sapporo Nissoken (Sapporo City) D-6 COI Sendai Chuo GKK Architects & Engineers Ohki Corporation (Sendai City) E-1 Toyamaeki Nishi (Toyama City) Daihyaku Raymond Tanabe Architectural Design Mirai-Shinkin Sato Corporation Office, Inc. (Oita City) (office building) E-2 Daihyaku Mirai-Shinkin (multilevel parking) Mitsubishi Heavy Industries, E-3 Kearney Place Saga Azusa Sekkei Co., E-4 Naha Trust Mitsui Construction Co., Ltd E-5 Kearney Place Kanazawaeki-Mae Raymond Architectural Design Office, Inc. (renovation) Mitsubishi Heavy Industries, Joint venture of Fujikensetsu Co., and Matsuo Corporation Mitsui Construction Co., Ltd, Daiyone Construction Co., (Oita City) (Saga prefecture) (Naha City) (Kanazawa City) 7