We intend to invest primarily in office properties located in certain zones within the urban areas of Tokyo, Osaka and Nagoya.

Investment Target Areas

Generally, we expect that office properties located in the below urban areas will represent the following percentages of the aggregate acquisition cost of our portfolio:

• 50% to 90% in the urban area of Tokyo;
• 10% to 30% in the urban areas of Osaka and Nagoya; and
• 0% to 30% in other metropolitan areas.

In addition to the urban areas of Tokyo, Osaka and Nagoya, we intend to invest in office properties located in government-designated cities, particularly Sapporo city, Sendai city and Fukuoka city. Office properties not located in the foregoing government-designated cities are generally not within our investment scope. However, depending on our view of the profitability and growth potential of a particular property, we may consider investing in office properties located in other government-designated cities.
While we intend to satisfy the foregoing percentage guidelines on an ongoing basis, we are not obligated to do so, and there may be instances, particularly after property acquisitions or dispositions, that we do not comply with the guidelines temporarily.

Zones

We have identified zones in the urban areas of Tokyo, Osaka and Nagoya where we intend to focus our office investment activity. These zones have been identified by us as areas having the highest concentrations of office buildings. In establishing these zones, we considered numerous factors, including our assessment of an area's transportation infrastructure, leasing trends and growth potential. Each of these zones encompasses an area that we believe has a recognized business district and a concentration of office tenants. Within a zone, we intend to invest in office buildings that we believe have a competitive advantage over other office buildings located in such zone, based on factors such as size, location and building quality. We have not established maximum or minimum investment allocations with respect to each zone. See "Zones" for a description of each zone.

Investment Target Size

The Urban Area of Tokyo

We intend to focus a substantial portion of our office property investment activity on assets located in the nine zones of the urban area of Tokyo identified by us and described below. When evaluating a particular asset, we intend to consider the attributes of tenants currently occupying the building and the asset's growth potential. In Tokyo, we will generally seek to acquire larger office properties with an acquisition price of at least JPY 3 Bn. However, under certain circumstances we will consider acquiring office properties in the urban area of Tokyo with a lower acquisition price when they are located in a highly desirable location and are expected to generate strong and stable rental revenue (e.g., across from a train station).
Within the urban area of Tokyo, we have identified the following nine zones as having favorable investment characteristics: (1) Central Tokyo Zone; (2) Nihonbashi Zone; (3) Kanda/Akihabara/Ueno Zone; (4) Shinjuku/Ikebukuro Zone; (5) National Route 246/Roppongi/Ebisu Zone; (6) Chuo Line Zone; (7) Tokyo Waterfront (Rinkai) Zone; (8) Tokaido Line Zone and (9) Yokohama Zone. See "Zones" for a description of each zone.

The Urban Areas of Osaka and Nagoya

There is less demand for office properties in the urban areas of Osaka and Nagoya than in the urban area of Tokyo. However, large-scale properties situated in prime locations are typically in high demand. Generally, we will seek to acquire large-scale office properties in the urban areas of Osaka and Nagoya that are desirably located.
Osaka. Within the urban area of Osaka, we have identified the following three zones as having favorable investment characteristics: (1) Umeda Zone; (2) Central Osaka Zone; and (3) Shin-Osaka Zone. See "Zones" for a description of each zone.

Nagoya. Within the urban area of Nagoya, we have identified the following two zones as having favorable investment characteristics: (1) Nagoya Station Zone and (2) Central Nagoya Zone. See "Zones" for a description of each zone.

Other Metropolitan Areas

The demand for office properties located in other metropolitan areas, such as Sapporo city, Sendai city and Fukuoka city, is largely driven by the need for branch offices of companies headquartered elsewhere. We will seek to acquire office properties in other metropolitan areas that have characteristics that we believe will enable the properties to be in high demand regardless of local market conditions. Such characteristics may include location near transportation hubs and properties that can be subdivided for small business tenants. We also intend to invest only in properties that are well-known within the local area and that offer sought-after amenities, such as parking facilities, and that we believe respond to the needs of such area.

Target Areas	Acquisition price per property	Total Floor Space
The Urban Area of Tokyo	At least ¥1 Billion	At least 500 tsubo (Approximately 1,650m2)
The Urban Areas of Osaka and Nagoya	At least ¥2 Billion	At least 1,000 tsubo (Approximately 3,300m2)
Other metropolitan Areas	At least ¥2 Billion	At least 1,000 tsubo (Approximately 3,300m2)