Notice Concerning Acquisition of Properties (KONAMI SPORTS ... · (4)Seller Profile Company Name TK Corporation Head Office Address 3-2-15 Nihonbashi Muromachi, Chuo-ku, Tokyo Representative

Translation Purpose Only

June 28, 2007 For Immediate Release

United Urban Investment Corporation Yasuhiro Tanaka

Executive Officer (Securities Code: 8960)

Asset Management Company: Japan REIT Advisors Co., Ltd.

Hisamitsu Abe Chairman of the Board, CEO

Inquiries: Hitoshi Murakami

Chief Financial Officer TEL: +81-3-5402-3189

Notice Concerning Acquisition of Properties (KONAMI SPORTS CLUB Korigaoka and

UUR Court Sapporo Shinoro Ichibankan and Nibankan) United Urban Investment Corporation (“United Urban”) hereby announces its decision to acquire properties as set forth below on June 28, 2007.

Details 1. Acquisition of the Properties United Urban acquires trust beneficial interests in real estate as set forth below.

No. Property Name Type of Use Location Scheduled Acquisition

Price

Scheduled Acquisition Date

A9 KONAMI SPORTS CLUB Korigaoka

Gym Parking Lot

3-3-1, Korigaoka, Hirakata-shi,Osaka ¥ 2,040 million June 29, 2007

D18 UUR Court Sapporo Shinoro Ichibankan (Note 1)

Residential Properties (including

stores)

6-chome, Shinoro 3-jo, Kita-ku, Sapporo-shi, Hokkaido

¥ 870 million (Note 2)

November 11, 2008 or other date agreed

by the Seller and United Urban

D19 UUR Court Sapporo Shinoro Nibankan (Note 1)

Residential Properties (including

offices)

6-chome, Shinoro 3-jo, Kita-ku, Sapporo-shi, Hokkaido

¥ 850 million (Note 2)

July 11, 2009 or other date agreed

by the Seller and United Urban

(Notes) 1. Both UUR Court Sapporo Shinoro Ichibankan and UUR Court Sapporo Shinoro Nibankan are properties under

construction, with the completion of the former scheduled in October 2008, and the latter in June 2009. To ensure profitability for the properties as acquired, an agreement on the transfer of trust beneficial interest in real estate with condition precedent about certain items will be concluded for each of the properties.

2. Please refer to “2.Details of Acquisition, B: UUR Sapporo Shinoro Ichibankan and Nibankan, (2) Summary of Acquisition, 3. Scheduled Acquisition Price (Note 2)” about details of Scheduled Acquisition Price.

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2. Details of Acquisition

A: KONAMI SPORTS CLUB Korigaoka (1)Reason for the Acquisition

In accordance with the fundamental asset-management policy and its investment approach prescribed in United Urban's Articles of Incorporation, United Urban will acquire a property for the purpose of expanding its portfolio of retail properties in the Other Regions (Kansai area). When taking the decision to acquire the property, the following aspects were appreciated.

1. Location

The property is a retail property which is located at a residential area in the south of Hirakata-shi surrounded by highways. The surrounding area has a high residential density because of many apartment complexes and condominiums, and there are many shops which are convenient for living in this area such as supermarkets, convenience stores and restaurants. Therefore, these are forming a good market. This property has a good access not only by foot but also by automobile because of securing on the premise parking lot. This property is expected to have stable rental demand as a fitness club in the favorable location.

2. Tenants, etc.

This property has a twenty-year long-term lease agreement with a well-known company, Konami Sports & Life Co., Ltd (its holding company, KONAMI CORPORATION, is listed on the first section of the Tokyo Stock Exchange). Therefore, the stable occupancy ratio is expected.

(2) Summary of Acquisition

1. Acquired Asset Trust beneficial interest in real estate 2. Name of Acquired Asset KONAMI SPORTS CLUB Korigaoka 3. Scheduled Acquisition Price ¥ 2,040 million

(excluding acquisition costs, property tax, city planning tax and consumption tax etc.)

4. Scheduled Date of Agreement June 29, 2007 (conclusion of the sell and purchase agreement of trust beneficial interest in real estate）

5. Scheduled Date of Acquisition June 29, 2007 (transfer of the trust beneficial interest) 6. Seller TK Corporation 7. Financing Cash on hand (Scheduled) 8. Date of Payment June 29, 2007 (Scheduled)

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(3)Outline of Property to be Acquired

Property Name KONAMI SPORTS CLUB Korigaoka Type of Acquired Asset Trust beneficial interest in real estate

Asset Custodian Mizuho Trust & Banking Co., Ltd. Period of Trust Agreement From June 29, 2007 to June 30, 2017 (Scheduled)

Scheduled Date of Acquisition June 29, 2007 Location 3-3-1 Korigaoka, Hirakata-shi, Osaka Access about 1.2km from Kozu Station (Keihan Katano Line)

about 2.8km from Hirakatashi Station (Keihan Main Line)

Use Gym, Parking Lot Land 4,120.00㎡ Site Area

（Registered） Building 6,381.40㎡ Structure S 4F

Type of Ownership Land: Proprietary Ownership Building: Proprietary Ownership

Completion Date（Registered） December 2006 Acquisition Price ¥ 2,040 million Appraisal Value ¥ 2,050 million

Date of Value Estimate June 1, 2007 Appraisal Agency

(Appraisal Method) Appraisal by Japan Real Estate Institute

Probable Maximum Loss 11% Collateral None

Special Instructions In the event that United Urban plans to undertake certain specified acts, including use of the land of the property for other purposes than health enhancement facilities (fitness club) after its acquisition of the trust beneficial interest, it shall obtain the approval of the previous owner to the seller of the property.

Number of Tenants 1 Major Tenant Konami Sports & Life Co., Ltd. Security Deposit ¥ 60 million Rental Revenues ¥ 120 million Total Leasable Floor Space (Note 1) 8,627.58 ㎡

Total Leased Floor Space (Note 2) 8,627.58 ㎡

Tenant Details

Occupancy Ratio (Note 3) 100 %

(Notes)

1. “Total Leasable Floor Space” is figure of total space shown in the certificate of inspection. 2. “Total Leased Floor Space” is figure of space subject to lease, which is stated on the lease agreement, same

as total space shown in the certificate of inspection. 3. “Occupancy Ratio” is the percentage obtained from dividing “Total Leased Floor Space” by “Total Leasable

Floor Space”.

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In addition, “Owner”, “Architect”, “Constructor”, “Structural Strength Calculator” and “Building Inspection Agency” are as set forth below.

Property No. Owner Architect Constructor Structural Strength

Calculator

Building Inspection

Agency

A9 TK Corporation TAKAHASHI TECHNO Corporation

DAIWA SYSTEM CO., LTD

YAMADA STRUCTURAL ENGINEERS CO.,LTD ONEX Co., Ltd.

None of the above owner, architect, constructor, structural strength calculator or building inspection agency was included in the list of owners, architects, constructors, structural strength calculators and building inspection agencies of properties whose structural calculation statements were falsified, as announced by the Ministry of Land, Infrastructure and Transport as of June 25, 2007.

(4)Seller Profile Company Name TK Corporation

Head Office Address 3-2-15 Nihonbashi Muromachi, Chuo-ku, Tokyo Representative Toshio Takahashi, Representative Director

Capital ¥ 111,250 thousand (as of June 28, 2007) As of June 28, 2007

Toshio Takahashi 32,000 shares (29.22%) Takeharu Takahashi 27,000 shares (25.00%)

Major Shareholder

Noriko Takahashi 16,000 shares (14.61%) Principal Business Real Estate Leasing Business

Relationship with United Urban or Asset Management Company

None

(5)Summary of Brokerage

Company Name Mizuho Trust & Banking Co., Ltd. Commission ¥ 61,200 thousand (excluding consumption taxes)

Relationship with United Urban or Asset

Management Company

Mizuho Trust & Banking Co., Ltd. is different from a related party under the Law Concerning Investment Trusts and Investment Corporations of Japan, and doesn’t fall under the “Sponsor/ Stakeholder” category under the self-imposed rules (rules for conflict of interest) of Japan REIT Advisors Co., Ltd (the “Asset Management Company”).

(6)Transactions with Related Parties

Property Management Company: Marubeni Real Estate Co., Ltd.

Marubeni Real Estate Co., Ltd. is a related party under the Law Concerning Investment Trusts and Investment Corporations of Japan. In addition, Marubeni Real Estate Co., Ltd. falls under the “Sponsor/Stakeholder” category under the Asset Management Company’s self-imposed rules (rules for conflict of interest), and is abiding by the predetermined limitations and procedures.

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(7)Method of Payment

Please refer to “(2) Summary of Acquisition”.

(8)Acquisition Schedule June 28, 2007: Decision of the acquisition June 29, 2007: Scheduled date of conclusion of the sell and purchase agreement of trust

beneficial interest in real estate June 29, 2007: Scheduled date of transfer of the trust beneficial interest

B: UUR Court Sapporo Shinoro Ichibankan and Nibankan

(1)Reason for the Acquisition

In accordance with the fundamental asset-management policy and its investment approach prescribed in United Urban's Articles of Incorporation, the following aspects were appreciated when taking the decision to acquire the properties.

1. Outline

These properties are two rental housings of three apartment buildings (the remaining one will be subdivided and sold) to be constructed under a private urban redevelopment project, “The First-Class Urban Redevelopment Project in JR Shinoro Station West Second District.” The redevelopment project covers an area of approximately 2.1 hectares of the west gateway of JR Shinoro Station. This is a redevelopment project which is conducted with a core of new public housing. The main purpose of the project is to create a residential zone which is convenient and highly habitable based on its proximity to the station through joint improvement of the transportation infrastructure, such as the station plaza and the station road by Sapporo City. For the two apartment buildings that United Urban has decided to acquire, their residential part is planned to or will be leased in its entirety for a long period of time by Sapporo City and subleased as council housing (under the provisional titles of Sapporo Shinoro Ichibankan and Nibankan). It is planned that Alpha Court Co., Ltd as the Seller will acquire the properties from JR Shinoro Station West Second District Redevelopment Company for the purpose of creating trust beneficial interest in real estate and entrust the same to an asset custodian. Thereafter, United Urban will acquire the trust beneficial interest on the condition that Sapporo City will lease the property.

2. Location

Conveniently located in the core of Sapporo district, the property lies to the west of Shinoro Station on the JR Gakuentoshi Line, approximately 10 km to the north of the central area of Sapporo City, and has a number of highways in its periphery. The site is also located in an area where a private urban redevelopment project will be undertaken that will include the provision of public housing as its core under the concept of “Creating a Center of Lifestyle in the Northern Part of Kita-ku of Sapporo.” Due to a future promotion of transportation infrastructure improvements, including an upgrade of the station plaza and the station road, coupled with the site’s easy access to the central portion of Sapporo and other regions, steadily continuing rental demand is expected.

3. Tenants, etc.

a. UUR Court Sapporo Shinoro Ichibankan The property has been approved for construction under the 2007 Sapporo City-Leased Council House Construction Program. After completion of its construction, a 20-year lease agreement will be concluded for its residential part by and between the asset custodian and Sapporo City, based on the “Agreement on Provision of Sapporo City-Leased Council Housing” entered into

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by and among Alpha Court Co., Ltd. as the Seller, Sapporo City as a major prospective tenant, and JR Shinoro Station West Second District Redevelopment Company on June 27, 2007 (the “Ichibankan Agreement”). Conclusion of the lease agreement with Sapporo City, which will involve the municipality leasing the property for use as Sapporo City-Leased Council Housing (under the provisional title of Sapporo Shinoro Ichibankan) raises the prospect of steady income.

b. UUR Court Sapporo Shinoro Nibankan The property is planned to be approved for construction under the 2008 Sapporo City-Leased Council House Construction Program. After completion of its construction, a 20-year lease agreement will be concluded for its residential part by and between the asset custodian and Sapporo City, based on the “Agreement on Provision of Sapporo City-Leased Council Housing” which will be entered into by and among Alpha Court Co., Ltd. as the Seller, Sapporo City as a major prospective tenant, and JR Shinoro Station West Second District Redevelopment Company (the “Nibankan Agreement;” and in conjunction with the Ichibankan Agreement, collectively referred to as the “Agreements”). Conclusion of the lease agreement with Sapporo City, which will involve the municipality leasing the property for use as Sapporo City-Leased Council Housing (under the provisional title of Sapporo Shinoro Nibankan) raises the prospect of steady income same as Ichibankan.

In light of its public role in regard to REIT, which involves investment in real estate under preferential tax treatment in terms of corporation income tax, real property acquisition tax, etc. subject to satisfaction of certain requirements, United Urban believes that it should work together with society to achieve harmony and mutual benefits and realize sustainable growth. In line with this policy, United Urban is committed to pursue an active part in projects which have social significance. Sapporo City plans to operate the property as council housing as a part of its efforts to create a more hospitable housing environment. The related urban redevelopment project is therefore of a highly public nature although it is being driven by the private sector. United Urban has decided to acquire the property in light of such social significance involved therein. It is also expected that United Urban’s decision to acquire the property at an early stage will facilitate the planning process for the entire project, including feasibility/profitability studies, thereby ensuring smooth progress of the project. Finally, acquisition of a property with a major prospective tenant and foreseeable profitability in the mid-course of its development provides United Urban with a good opportunity to acquire a new and high-grade building on a priority basis.

(2) Summary of Acquisition (Note 1)

1. Acquired Assets Trust beneficial interests in real estate 2. Name of Acquired Assets a. UUR Court Sapporo Shinoro Ichibankan

b. UUR Court Sapporo Shinoro Nibankan 3. Scheduled Acquisition Price (Note2) a. ¥ 870 million

b. ¥ 850 million (excluding acquisition costs, property tax, city planning tax and consumption tax etc.)

4. Scheduled Date of Agreement June 29, 2007 (conclusion of the sell and purchase agreements of trust beneficial interest）

5. Scheduled Date of Acquisition a. November 11, 2008 or other date agreed by the Seller and United Urban (transfer of the trust beneficial interest)

b. July 11, 2009 or other date agreed by the Seller and United Urban (transfer of the trust beneficial interest)

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6. Seller Alpha Court Co., Ltd. 7. Financing Cash on hand and Debt Financing 8. Date of Payment a. November 11, 2008 (Scheduled)

b. July 11, 2009 (Scheduled)

(Notes) 1. Both UUR Court Sapporo Shinoro Ichibankan and UUR Court Sapporo Shinoro Nibankan are properties under

construction, with the completion of the former scheduled in October 2008, and the latter in June 2009. To ensure profitability for the properties as acquired, an agreement on the transfer of trust beneficial interest in real estate will be concluded for each of the properties, on the following conditions: ・ Construction of the building should be completed in conformity with the drawings as at the time of

conclusion of the agreement on the transfer of trust beneficial interest in real estate. ・ A building lease agreement on Sapporo City-leased council housing should be concluded by and

between the Asset Custodian and Sapporo City, as under the Agreements. 2. Acquisition of UUR Court Sapporo Shinoro Ichibankan and UUR Court Sapporo Shinoro Nibankan will be

effected only after an appraisal price is obtained for each of them with a specified date preceding the scheduled completion date as the base date of appraisal, and if the acquisition price mentioned above is widely different from the appraisal price thus obtained, the acquisition price of the trust beneficial interest in the relevant property is renegotiated and the acquisition price of the trust beneficial interest in the relevant property is increased or decreased accordingly.

(3)Conclusion of Transfer Agreement for Properties under Construction

・ Development Risk Management and Setting of Acquisition Price Acquisition of the properties aims to acquire a high-grade property through bilateral transactions by concluding a transfer agreement on a building under construction. Any development risk involved therein is planned to be reduced by making conditions on the transfer agreement as mentioned hereinabove. Taking into account the fact that each of the properties is or is likely to be covered by the Sapporo City-Leased Council House Construction Program and that Sapporo City is a prospective tenant, United Urban has decided to acquire the properties on the assumption that tenant risk involved therein will be reduced. The acquisition price has been set partly based upon the “Investigation Price.” For details of the Investigation Price, see “(4) Outline of the Properties to be Acquired (Note 5)” below. For the cash flow forecast for UUR Court Sapporo Shinoro Ichibankan that underlies the Investigation Price, the rental income for its residential space is based on rents as calculated according to the Ichibankan Agreement, and the rental income for the store space on such rents that the Asset Management Company considers to be reasonable and proper taking into account market reports and others, with costs and fees based on obtained written estimates. For the cash flow forecast for UUR Court Sapporo Shinoro Nibankan, given that the Nibankan Agreement has not been concluded, the rental income is based on rent that the Asset Management Company considers to be reasonable and proper taking into account rent value of UUR Court Sapporo Shinoro Ichibankan, as mentioned above, and market reports, etc., with costs and fees based on obtained written estimates. At present, the Asset Management Company considers the capitalization yield employed by the Appraisal Agency in calculating the Investigation Price to be reasonable and proper as at the scheduled acquisition date.

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(4)Outline of Properties to be Acquired

a. UUR Court Sapporo Shinoro Ichibankan Property Name UUR Court Sapporo Shinoro Ichibankan

Type of Acquired Asset (Note 1) Trust beneficial interest in real estate Asset Custodian (Note 1) To be determined

Period of Trust Agreement From November 11, 2008 to November 30, 2018 (Scheduled) Scheduled Date of Acquisition November 11, 2008 or other date agreed by the Seller and United

Urban

Location (Lot number) 6-chome, Shinoro 3-jo, Kita-ku, Sapporo-shi, Hokkaido (hereinafter, to be determined)

Access a minute walk from Shinoro Station (JR Gakuentoshi Line) Use (No.2) Residential Properties (72 rooms) / Stores (Scheduled)

Land 3,340.48㎡ Site Area （No.3） Building 6,271.23㎡ Structure RC 10F


Completion Date October 2008 (Scheduled) Scheduled Acquisition Price

(No.4) ¥ 870 million (Scheduled)

Appraisal Agency (Appraisal Method)

Appraisal by Nippon Tochi-Tatemono Limited

Investigation Price (Note 5) ¥ 870 million Probable Maximum Loss 3 % (Scheduled)

Collateral None Special Instructions On the land, hazardous substances (arsenic and its compound)

beyond a given level of soil leaching limit under specified standards have been found by a surface soil investigation, and the polluted soil is planned to be removed from the site at the cost and responsibility of JR Shinoro Station West Second District Redevelopment Company as constructor under the redevelopment project, no later than the date of transfer of the land to Alpha Court Co., Ltd. as the Seller.

Number of Tenants (No.6)

2 (Scheduled)

Major Tenant (No.6) Sapporo City (Scheduled) Security Deposit (No.7)

0

Total Rental Revenues (Note 7) ¥ 56,520 thousand Total Leasable Floor Space (Note 8) 6,271.23 ㎡ Total Leased Floor Space (Note 8) 6,026.54 ㎡

Tenant Details

(Scheduled)

Occupancy Ratio (Note 9) 96.1 %

(Note) 1. The property will be entrusted to Mizuho Trust & Banking Co., Ltd. as the asset custodian by Alpha Court Co.,

Ltd. as the Seller no later than the scheduled acquisition date.

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2. “Use” is described based on the building confirmation certificate dated May 31, 2007 and may be changed by the actual tenants.

3. “Site area” is described as it appears on the real estate register, and since the building has neither been completed nor registered, the total floor space of the building is described as appearing on the building confirmation certificate under the Building Standards Law.

4. “Scheduled Acquisition Price” may be changed in accordance with the appraisal value as obtained prior to the completion of building construction.

5. “Investigation Price” is different from the appraisal value obtained from an appraisal agency under Article 2, Paragraph 1 of the Law Concerning Appraisal of Real Estate. Since the building construction has not been completed and it is thus difficult to confirm the property as completed, a real estate appraiser calculated the price by applying the generally accepted appraisal methods on the assumption that the building had been completed as scheduled.

6. As described in “(1) Reason for the Acquisition 3. Tenants, etc.” above, Sapporo City is a major prospective tenant for the property, based on the Ichibankan Agreement. On the other hand, a pass- through-type master lease agreement will be concluded with other tenant. The number in the column “Number of Tenants” shows the number of tenants after such a master lease agreement is concluded.

7. “Security Deposit” and “Total Rental Revenues” are figures for major tenant. 8. “Total Leasable Floor Space” and “Total Leased Floor Space” are figures for the total floor space of the building

appeared on the building confirmation certificate and the total leased floor space (scheduled) for major tenants under the Agreements, respectively.

9. “Occupancy Ratio” is the percentage for major tenant.

b. UUR Court Sapporo Shinoro Nibankan Property Name UUR Court Sapporo Shinoro Nibankan

Type of Acquired Asset (Note 1) Trust beneficial interest in real estate Asset Custodian (Note 1) To be determined

Period of Trust Agreement From July 11, 2009 to July 31, 2019 (Scheduled) Scheduled Date of Acquisition July 11, 2009 or other date agreed by the Seller and United Urban

Location (Lot number) 6-chome, Shinoro 3-jo, Kita-ku, Sapporo-shi, Hokkaido (hereinafter, to be determined)

Access 2 minutes walk from Shinoro Station (JR Gakuentoshi Line) Use (No.2) Residential Properties (72 rooms) / Offices (Scheduled)

Land 3,065.72㎡ Site Area （No.3） Building 6,265.67㎡ Structure RC 10F


Completion Date June 2009 (Scheduled) Scheduled Acquisition Price

(Note 4) ¥ 850 million (Scheduled)

Appraisal Agency (Appraisal Method)

Appraisal by Nippon Tochi-Tatemono Limited

Investigation Price (Note 5) ¥ 853 million Probable Maximum Loss 3 % (Scheduled)

Collateral None Special Instructions On the land, hazardous substances (arsenic and its compound)

beyond a given level of soil leaching limit under specified standards have been found by a surface soil investigation, and the polluted soil is planned to be removed from the site at the cost and responsibility of JR Shinoro Station West Second District Redevelopment Company as constructor under the redevelopment project, no later than the date of transfer of the land to Alpha Court Co., Ltd. as the Seller.

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Number of Tenants (No.6)

2 (Scheduled)

Major Tenant (No.6) Sapporo City (Scheduled) Security Deposit (No.7)

0

Total Rental Revenues (Note 7) ¥ 56,520 thousand Total Leasable Floor Space (Note 8) 6,265.67 ㎡ Total Leased Floor Space (Note 8) 5,939.89 ㎡

Tenant Details

(Scheduled)

Occupancy Ratio (Note 9) 94.8 %

(Note) 1. The property will be entrusted to Mizuho Trust & Banking Co., Ltd. as the asset custodian by Alpha Court Co.,

Ltd. as the Seller no later than the scheduled acquisition date. 2. “Use” is described based on the building confirmation certificate dated May 31, 2007 and may be changed by the

actual tenants. 3. “Site area” is described as it appears on the real estate register, and since the building has neither been completed

nor registered, the total floor space of the building is described as appearing on the building confirmation certificate under the Building Standards Law.

4. “Scheduled Acquisition Price” may be changed in accordance with the appraisal value as obtained prior to the completion of building construction.

5. “Investigation Price” is different from the appraisal value obtained from an appraisal agency under Article 2, Paragraph 1 of the Law Concerning Appraisal of Real Estate. Since the building construction has not been completed and it is thus difficult to confirm the property as completed, a real estate appraiser calculated the price by applying the generally accepted appraisal methods on the assumption that the building had been completed as scheduled.

6. As described in “(1) Reason for the Acquisition 3. Tenants, etc.” above, the Nibankan Agreement will be concluded as in the case of the Ichibankan, and under the agreement, Sapporo City will be a prospective major tenant of the property. On the other hand, a pass- through-type master lease agreement will be concluded with other tenant. The number in the column “Number of Tenants” shows the number of tenants after such a master lease agreement is concluded.

7. “Security Deposit” and “Total Rental Revenues” are figures for major tenant. 8. “Total Leasable Floor Space” and “Total Leased Floor Space” are figures for the total floor space of the building

appeared on the building confirmation certificate and the total leased floor space (perspective) for major tenant under the Nibankan Agreements, respectively.

9. “Occupancy Ratio” is the percentage for major tenant.

In addition, “Owner”, “Architect”, “Constructor”, “Structural Strength Calculator” and “Building Inspection Agency” of above two properties are as set forth below.

Property No. Property Name

Owner Architect Constructor Structural Strength

Calculator

Building Inspection

Agency

D18 UUR Court Sapporo Shinoro Ichibankan

JR Shinoro Station West Second District

Redevelopment Company

MIYAKAWA CONSTRUCTION

Co., Ltd.


Co., Ltd.

Takeshita Architectural

Design Co., Ltd.

JAPAN ERI CO., LTD

D19 UUR Court Sapporo Shinoro Nibankan

JR Shinoro Station West Second District

Redevelopment Company


Co., Ltd.


Co., Ltd.

Takeshita Architectural

Design Co., Ltd.

JAPAN ERI

CO., LTD

None of the above owner, architect, constructor or structural strength calculator was included in the list of owners, architects, constructors and structural strength calculators of properties whose structural calculation statements were falsified as announced by the Ministry of Land, Infrastructure and Transport as of June 25, 2007. However, the Building Inspection Agency was JAPAN ERI CO., LTD.

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Therefore, United Urban has requested a specialized third-party institution to reconfirm the structural calculation statements of these properties, and it has been reported that the structural safety was confirmed by comparing the members’ cross-sections of the structural calculation statements and those of structural drawings of this property and by confirming the method of structural calculation and earthquake resisting performance, and so forth. The report provided no indication from which United Urban could suspect a problem.

(5)Seller Profile

Company Name Alpha Court Co., Ltd. Head Office Address 3, Nishi 5-chome, Kita 1-jo, Chuo-ku, Sapporo

Representative Yuji Kawamura, Chief Executive Officer Capital ¥ 40 million (As of June 28, 2007)

Major Shareholder Alpha Management Co., Ltd. Number of share held 400

Percentage of share held 50 % (As of June 28, 2007)

Principal Business Planning condominiums Real estate consulting and asset management business Planning low-rise condominiums and corporative housing Real estate fund business Planning commercial stores Developing housing land and housing near stations

Relationship with United Urban or Asset Management Company

None

(6)Summary of Brokerage

Company Name Marubeni Corporation Commission ¥ 51,600 thousand (excluding consumption taxes)

Relationship with United Urban or Asset Management

Company

Marubeni Corporation (“Marubeni”) is a related party under the Law Concerning Investment Trusts and Investment Corporations of Japan. In addition, Marubeni falls under the “Sponsor/ Stakeholder” category under the Asset Management Company’s self-imposed rules (rules for conflict of interest). Marubeni therefore is abiding by the predetermined limitations and procedures.

(7)Transactions with Related Parties Broker: Marubeni Corporation

“Marubeni” is a related party under the Law Concerning Investment Trusts and Investment Corporations of Japan, and falls under the “Sponsor/Stakeholder” category under the Asset Management Company’s self-imposed rules (rules for conflict of interest). Marubeni therefore is abiding by the predetermined limitations and procedures. Concerning the acquisition of these properties, United Urban will pay Marubeni 51,600 thousand yen (consumption tax is separately added) as a brokerage commission.

(Note) The brokerage commission will be predicted 3% of acquisition price (excluding consumption taxes). It may be changed in accordance with the acquisition price for these properties.

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Property Management Company: Hokkaido Benny Estate Service Co., Ltd. (Scheduled) Hokkaido Benny Estate Service Co., Ltd. is a related party under the Law Concerning Investment Trusts and Investment Corporations of Japan. In addition, Hokkaido Benny Estate Service Co., Ltd. falls under the “Sponsor/Stakeholder” category under the Asset Management Company’s self-imposed rules (rules for conflict of interest), and will abide by the predetermined limitations and procedures.

(8)Method of Payment Please refer to “(2) Summary of Acquisition”

(9)Acquisition Schedule a. UUR Court Sapporo Shinoro Ichibankan

June 28, 2007: Decision of the acquisition June 29, 2007: Scheduled date of conclusion of the sell and purchase agreement of trust

beneficial interest in real estate November 11, 2008: Scheduled date of transfer of the trust beneficial interest

b. UUR Court Sapporo Shinoro Nibankan

June 28, 2007: Decision of the acquisition June 29, 2007: Scheduled date of conclusion of the sell and purchase agreement of trust

beneficial interest in real estate July 11, 2009: Scheduled date of transfer of the trust beneficial interest

3. Outlook of Operating Condition

There are no revisions on the United Urban’s forecasts of financial results for the fiscal period ending November 2007, because the influence of the acquisition is minor.

【Attached Materials】 1. Revenue and Expense Forecast from Properties 2. Portfolio after Acquisitions (Scheduled) 3. Photo

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Reference Material 1 Revenue and Expense Forecast from Properties

A: KONAMI SPORTS CLUB Korigaoka

Revenue and Expense Forecast from the Property (Yearly) （Millions of yen）

(A) Operating Revenues 120

Rental revenues and common area charges 120

Others 0

(B) Operating Expenses 16

Property and other taxes 15

Property management fees 0

Utilities expenses 0

Casualty insurance 0

Repairs and maintenance 0

Other rental expenses 0

(C) Profit (A) - (B) 103 Revenue and expense forecast assumptions 1. The revenue and expense figures above are annual figures after excluding extraordinary factors during the

fiscal year in which the acquisition is made. (There are not forecast values for this term or next term.) 2. Revenues are premised on an occupancy ratio of 100%.

B: UUR Court Sapporo Shinoro Ichibankan and Nibankan a. UUR Court Sapporo Shinoro Ichibankan




Others 3









fiscal year in which the acquisition is made. (They are not forecast values for this term or next term.) 2. Revenues are premised on an occupancy ratio of 100% for residential part and 92% for other part.

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Others 2









fiscal year in which the acquisition is made. (They are not forecast values for this term or next term.) 2. Revenues are premised on an occupancy ratio of 100% for residential part and 90% for other part.

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Reference Material 2

Portfolio after Acquisitions (Scheduled)

No. Type Name of Property Acquisition Date

Acquisition Price (Millions of yen)

(Note)

Share in total acquisition price (%)

Share in type

(%) A1 Daiei Himonya Dec. 25, 2003 15,300 9.3％

A2 Joy Park Izumigaoka Dec. 22, 2003 6,770 4.1％

A3 Daimaru Peacock Ashiya-Kawanishi Ten Dec. 22, 2003 769 0.5％

A4 Re-LAND Shopping Center Sep. 17, 2004 5,200 3.2％

A5 Diamond City Value Dec. 3, 2004 11,100 6.8％

A6 TENJIN LUCE Apr.14 , 2006 6,500 4.0％

A7 Yamada Denki Tecc Land Sakai Honten Apr. 28, 2006 3,210 2.0％

A8 Miyamae Shooping Center Feb.28, 2007 5,312 3.2％

A9

Retail Properties

KONAMI SPORTS CLUB Korigaoka Jun. 29, 2007 2,040 1.2％

34.2％

B1 T&G Hamamatsu-Cho Building Dec. 26, 2003 2,257 1.4％

B2 SK Nagoya Building Dec. 26, 2003 5,400 3.3％

B3 Fukuoka Eartheon Building Dec. 26, 2003 2,080 1.3％

B4 Marumasu Koujimachi Building Mar. 29, 2004 2,350 1.4％

B5 Rokuban-Cho K Building Mar. 30, 2004 2,150 1.3％

B6 Shin-Osaka Central Tower (office portion) Dec. 2, 2004 14,279 8.7％

B7

Office Buildings

Kawasaki Toshiba Building Dec. 20, 2004 19,200 11.7％

29.0％

C1 Shinjuku Washington Hotel-Honkan Dec. 22, 2003 21,100 12.8％

(B6) Shin-Osaka Central Tower (hotel portion) Dec. 2, 2004 9,721 5.9％

C2

Hotels

Toyoko Inn Shinagawa-Eki Takanawaguchi Feb. 18, 2005 1,884 1.1％

19.9％

D1 T&G Higashi-Ikebukuro Mansion Dec. 26, 2003 2,021 1.2％

D2 T&G Yotsuya Mansion Dec. 26, 2003 1,355 0.8％

D3 Excellia Magome Dec. 26, 2003 697 0.4％

D4 Komazawa Court Dec. 26, 2003 1,680 1.0％

D5 Ropponmatsu Court Dec. 26, 2003 757 0.5％

D6 Sky Court Shiba-Daimon Oct. 15, 2004 1,175 0.7％

D7 Maison Ukima Oct. 26, 2004 3,530 2.1％

D8 Narashino Residence Oct. 26, 2004 1,140 0.7％

D9 Aprile Shin-Ohgi Ichibankan Apr. 13, 2005 3,031 1.8％

D10 UUR Court Sapporo Kitasanjo Mar. 16, 2006 1,278 0.8％

D11 Soga Dormitory Feb. 8, 2006 620 0.4％

D12 Higashikurume Dormitory Shinkan Feb. 8, 2006 480 0.3％

D13 Nanzan Court Ichigoukan Mar. 30, 2006 1,070 0.7％

D14 Nanzan Court Nigoukan Mar. 30, 2006 450 0.3％

D15 CLIO Bunkyo Koishikawa Apr. 28, 2006 3,170 1.9％

D16 Lilycolor Tohoku Branch May 29, 2006 2,050 1.2％

D17 GRAND-ROUGE Sakae Nov. 30, 2006 1,570 1.0％

D18 UUR Court Sapporo Shinoro Ichibankan Nov. 11, 2008 870 (Scheduled) 0.5％

D19

Residential Properties and others

UUR Court Sapporo Shinoro Nibankan Jul. 11, 2009 850 (Scheduled) 0.5％

16.9％

Total 164,415 100.0％ (Note) The acquisition prices above are rounded to the nearest one million yen.

15

Reference Material 3

A: KONAMI SPORTS CLUB Korigaoka 【Photo】

16

B: UUR Court Sapporo Shinoro Ichibankan and Nibanakan (Note) These graphical contents are created based on drawings. The actual buildings are subject to change.

a. UUR Court Sapporo Shinoro Ichibankan

【Photo】


【Photo】

17

Documents

Notice Concerning Acquisition of Properties (KONAMI SPORTS ... · (4)Seller Profile Company Name TK Corporation Head Office Address 3-2-15 Nihonbashi Muromachi, Chuo-ku, Tokyo Representative