When investing in office properties, selections will be made through comprehensive research and analysis based on the forecast investment yields resulting from their acquisition costs and their anticipated profits, future prospects and stability of the area of location, availability of measures responding to risks of deterioration and obsolescence, insurability and so forth. The details of the relevant criteria are set forth in the following table.Though such consideration will involve the study of the criteria included in the following table, it is possible that when NBF acquires or intends to acquire operating assets not all of the following criteria will be satisfied.
 |
 |
|---|---|
| Scale of building |
Net rentable area, including net rentable area of entire building and standard net rentable area per floor.
|
| Construction type and specifications of facilities | Building design and floor plan suitable for leasing, with divisibility, adequate ceiling height, electrical service, HVAC equipment etc. |
| Earthquake resistance | Ensure that construction quality exceeds earthquake standards (meaning those required pursuant to the Building Standards Law as amended in 1981) or standards equivalent thereto. |
| Measures regarding status of legal title | In cases such as co-ownership, divided condominium ownership, a building erected on leased land etc. where NBF will not obtain complete ownership of a building, the following matters are appropriately treated.
|
| Tenancy characteristics | Acceptable creditworthiness of tenants, purposes of use by tenants, configuration, and condition of collectibility of rents etc. |
| Environmental; condition of land etc. | measures to protect security deposits, policies and measures regarding cash reserves for long-term renovation plans; appropriate measures regarding demands for division of co-owned interests or the sale of a co-owner's interest etc; |
In principle, NBF acquires Real Estate etc. which are leased/leasable assets at the time of closing. NBF may acquire a property which is not yet leasable at the time of closing based on consideration of the impact on NBF's asset management activities after taking into account the investment amount, the date of completion or of becoming leasable, estimated revenues and so forth; provided, however, that the contract amount of any such unleasable asset combined with the total contract amount of previously acquired unleasable assets (but excluding unleasable assets which thereafter become operational) will not exceed 10% of the total assets indicated on the most recent balance sheet of NBF. For this purpose, "leased/leasable assets" shall mean property with respect to which the construction of the building has been completed and such building is leased or leasable. Properties which are owned by NBF and have become operational at some point shall be deemed "leasable" thereafter (including such cases as reconstruction or large-scale renovation of a building).
