Notice concerning Issuance of Investment Corporation Bonds

Transcription

1 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. June 17, 2010 REIT Issuer: DA Office Investment Corporation 2-1, Ginza 6-chome, Chuo-ku, Tokyo Representative: Yoshiki Nishigaki, Executive Director (Stock Code No.: 8976) Asset Manager: Daiwa Real Estate Asset Management Co., Ltd. Representative: Akira Yamanouchi, President and Representative Director Inquiries to: Yoji Ueda, Director and Head of Finance Department Tel: Notice concerning Issuance of Investment Corporation Bonds We hereby give notice that DA Office Investment Corporation (the Investment Corporation ) has decided to issue the investment corporation bonds (the Bonds ) as described below. 1. Overview of Investment Corporation Bonds (1) Name of the Bonds: DA Office Investment Corporation Second Series of Unsecured Investment Corporation Bonds (2) Total Issue Amount: JPY 5,000,000,000 (3) Form of Bond Certificates: Pursuant to the Law Concerning Book-Entry Transfer of Company Bonds, Shares, Etc. which is applicable to the Bonds, certificates for the Bonds will not be issued.

2 (4) Issue Price: JPY100 per JPY100 of the Bonds (5) Redemption Value: JPY100 per JPY100 of the Bonds (6) Interest Rate: 1.87% per annum (7) Denomination: JPY100 million (8) Offering Method: Public offering (9) Subscription Period: June 17, 2010 (Thursday) (10) Payment Date: June 24, 2010 (Thursday) (11) Collateral, etc.: The Bonds will be issued on an unsecured, unguaranteed basis and without withholding any specific assets. (12) Redemption Method and Redemption Date: The total amount of the Bonds will be redeemed on June 24, Note: The Bonds may be repurchased and cancelled at the option of the Investment Corporation at any time from the next day of the payment date, unless otherwise provided for by the book-entry transfer agent. (13) Interest Payment Date: June 24 and December 24 of each year (14) Financial Covenants: The Bonds contain negative pledge.

3 (15) Ratings: A (assigned by Rating and Investment Information, Inc.) (16) Fiscal Agent, Issue Agent and Payment Agent: Sumitomo Mitsui Banking Corporation (17) Underwriter: Daiwa Securities Capital Markets Co., Ltd. Note: The above-mentioned company is a subsidiary of Daiwa Securities Group Inc., which is the wholly-owning parent company of Daiwa Real Estate Asset Management Co., Ltd., the asset manager of the Investment Corporation. 2. Reason for Issuance With the proceeds of the issuance of the Bonds, the Investment Corporation aims to achieve the external growth by acquiring a specified asset (Kyodo Building (Kudan Ichigo-kan)), as well as to procure funds for the payment of expenses for repairs, etc., repayment of debts and expenditure on running costs, in the future. Details of the acquisition of the specified asset (Kyodo Building (Kudan Ichigo-kan)) are described in the Notice concerning Acquisition of Assets (Execution of Agreement) announced on June 14, Amount, Use and Expected Dates of Expenditure of Funds to be Procured (1) Amount of Funds to be Procured (approximate net amount received by the Investment Corporation): JPY 4,968,000,000 (2) Specific Use and Expected Dates of Expenditure of Funds to be Procured About 4 billion yen (subject to change due to the inclusion of various expenses) will be used on July 13, 2010 (*) for the acquisition of the specified asset (Kyodo Building (Kudan Ichigo-kan)). For the rest of the amount, it is scheduled to be used, as necessary, from July of 2010 for the purchase price of the acquisition of the specified assets going forward, payments of expenses for repair, etc., repayments of debts and expenditure on running costs. (*) The date of the acquisition of the specified asset (Kyodo Building (Kudan Ichigo-kan)) may be changed by an agreement between the Seller and the Investment Corporation. In such case, the expected dates of expenditure shall be changed accordingly.

4 4. Status of Interest-bearing Liabilities after Issuance of the Bonds Please refer to the Reference Material (2) for the status of the interest-bearing liabilities after the issuance of the Bonds. 5. Other Matters Required for Adequate Understanding and Judgment of Above-mentioned Information by Investors With respect to the risks related to the redemption, etc. of the Bonds, there is no change to the contents of the Part I. Fund Information - Section 1. Status of Fund - 3. Investment Risks described in the securities report submitted on February 22, End -

5 Reference Material (1) Status of Distribution of Repayment Dates after Issuance of the Bonds (As of June 24, 2010) (*) Balance of iteresting-bearing liabilities (million yen) 25,000 20,000 15,000 10, , , ,962 1, ,550 Balance of interest-bearing liabilities disclosed today Balance of interest-bearing liabilities other than above (Final amount of redemption) Balance of interest-bearing liabilities other than above (The amount of installments to be paid before final due to date) 5, ,000 3,000 5,500 7,100 3,421 4, ,000 3,500 5,000 5,000 3,500 Nov.2010 (10th Period) May 2011 (11th Period) Nov (12th Period) May 2012 Nov.2012 May 2013 Nov.2013 May 2014 Nov.2014 May 2015 (13th Period) (14th Period) (15th Period) (16th Period) (17th Period) (18th Period) (19th Period) Nov.2019 (28th Period) * The benchmark has been set at June 24, 2010, which is the payment date of the Bonds. * The outstanding amount of interest-bearing liabilities to be repaid or redeemed for each accounting date (i.e., every six months) is set out for each agreement or investment corporation bond. Also, the outstanding amount of the interest-bearing liabilities for each fiscal period shows the total amount of the borrowings and investment corporation bonds (including subordinated investment corporation bonds) which are outstanding as of June 24, * Any fractional amount less than one million yen is disregarded. Changes in Outstanding Amount and Ratio of Interest-bearing Liabilities (*) 160, , , , Balance of interest-bearing liabilities (left axis: million yen) Ratio of interest-bearing liabilities (right axis:%) ,000 80,000 60,000 93,895 82, , , , , , ,600 72, , , ,000 20, ,500 3,500 3,500 3,500 08/5/30 08/6/30 08/9/30 08/10/10 08/11/21 08/11/28 09/1/27 09/5/21 09/9/18 09/11/30 10/2/26 10/6/24 10 Subordinated investment corporation bond 0 * The interest-bearing liability ratio is calculated based on the purchase price.

6 Reference Material (2) Outstanding Amount of Interest-bearing Liabilities after Issuance of the Bonds (As of June 24, 2010) (millions of Yen) Short-term Borrowings (Borrowing Period: One Year or Shorter) (*) Long-term Borrowings (Borrowing Period: One Year or Longer) Before Issuance of the Bonds After Issuance of the Bonds Increase/Decrease , , Total Amount of Borrowings 68, , Investment Corporation Bonds , , Subordinated Investment Corporation Bonds 3, , TOTAL 72, ,000 * The benchmark has been set at June 24, 2010, which is the payment date of the Bonds. * For the long-term borrowings which have installments to be paid before the final due date, the amount of installments which shall be payable within one year is classified into Short-term Borrowings. * The long term borrowing scheduled to be repaid within one year (JPY2,000 million) is classified into Short-term Borrowings. Ratio of Floating Rate Interest-bearing Liabilities - Fixed Rate Interest-bearing Liabilities (As of June 24, 2010) Floating Rate Interest-bearing Liabilities (*) Fixed Rate Interest-bearing Liabilities Total Amount of Interest-bearing Liabilities (millions of yen) Ratio (%) 41, , * The benchmark has been set at June 24, 2010, which is the payment date of the Bonds. * With respect to the borrowings amounting to JPY7,100 million (Ratio in the total amount of interest-bearing liabilities: 9.17%) out of the above-mentioned floating rate interest-bearing liabilities, the interest rate ceiling has been set in the form of interest rate cap. The ratio of (A) the sum of the fixed rate interest-bearing liabilities and the floating rate interest-bearing liabilities with the interest rate ceiling by an interest rate cap in (B) the total amount of interest-bearing liabilities is 55.43%.