| Location |
Retail Properties;
With respect to the acquisition of retail properties, TOKYU REIT will from time to time conduct a market evaluation to determine the appropriateness of the areas in which TOKYU REIT invests. This evaluation gives attention to such factors as the concentration of consumer population and movement, the number of households in the areas and their average income, growth potential of the area, current competition conditions, possible competition from future developments and compatibility with tenants. |
Office Properties;
With respect to the acquisition of office properties, TOKYU REIT will assess an area's concentration of office facilities, local rental market conditions, the amount of floor space and the proximity of the property to the nearest station. TOKYU REIT generally only considers office properties that are within seven minutes' walking distance from a station, or within ten minutes' walking distance for properties with special characteristics. |
| Property Size |
Retail Properties;
TOKYU REIT will determine the appropriate size of each retail property with consideration of each location, market size and of the area and standard floor space, as well as the growth potential of the area. |
Office Properties;
As a general policy, TOKYU REIT only invests in office properties that have at least 5,000 square meters of total floor space and at least 330 square meters of floor space per standard floor ("standard floor" means the most common type of floor of a building above the second floor). |
| Fixtures |
Retail Properties;
TOKYU REIT considers retail property individually, giving general consideration to the versatility of such property the ability to alter the designed use of such property and the accessibility by retail consumers. |
Office Properties;
TOKYU REIT installs fixtures that are above standard with respect to floors, ceilings, facilities in common areas, electricity capacity and air conditioning systems. |
| Investment Amount |
Minimum Amount;
In principle, TOKYU REIT does not invest in any property the acquisition price of which is less than Y4.0 billion (excluding taxes and acquisition costs), except for situations whereby a property with an acquisition price of less than Y4.0 billion would form an integral part of one of its properties (or a property TOKYU REIT acquires). |
Maximum Amount;
In principle, no investment in any single property will consist of more than 50% of the total amount invested in TOKYU REIT's portfolio (taking into account the proposed acquisition in determining such percentage). TOKYU REIT makes sufficient verification as to the appropriateness of the acquisition price before making an investment decision. |
Limitation of Acquisition Price;
In principle, the acquisition price (not taking into account transaction costs) for any property acquired from Tokyu Group companies does not exceed the appraisal value of such property. However, in situations where TOKYU REIT acquires a property from a non Tokyu Group companies, the acquisition price may exceed the appraisal value, depending on the characteristics of such property and the management policies of its portfolio. |
| Earthquakes |
TOKYU REIT invests only in (i) buildings that are in compliance with current earthquake regulatory standards, (ii) existing buildings that have been reinforced against earthquakes, or (iii) buildings that have a probable maximum loss, or PML, of less than 15%. |
| Contractual Relationship |
In principal, when acquiring a property subject to joint ownership, TOKYU REIT acquires more than 50% ownership of such property. |
| Tenants |
In principal, TOKYU REIT prefers multiple tenants to single tenants at each of its properties. However, depending on the creditworthiness of the particular tenant, the terms and conditions of the lease agreement and other factors, TOKYU REIT may lease to single tenant. |
| Asset-Backed Securities |
TOKYU REIT invests in asset-backed securities only if such securities contain an option to purchase the underlying assets at the time of maturity and are deemed to provide stable income. |
| Properties Under Construction |
TOKYU REIT does not invest in properties that are under construction and not yet in operation. However, TOKYU REIT may consider making investments in a property under construction, provided such property is developed by third parties or the construction is an addition to an existing property, so that TOKYU REIT assumes only minimal development, construction or vacancy risks. |
| Environmental Review |
Prior to the acquisition of any property, TOKYU REIT investigates such property for toxic substances, soil contamination and other environmental hazards and evaluates any mid- to long-term effects on such property. |
