Investment Policy
■ Selection made based on location conditions and basic performance of individual buildings at the time of selection of properties.
■ Decisions are based on consideration of earthquake resistance,environmental and geological conditions and so forth.
■ Investments in properties which are not completed or unleased is limited to 10% of total investment.
Property Selection Criteria
When investing in individual real estate, etc., selections will be made through comprehensive judgments 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 not all of the following criteria will be satisfied when NBF acquires or intends to acquire operating assets.
| Item | Points to be reviewed | |
|---|---|---|
| Scale of building |
Exclusive floor area (overall exclusive floor area in the concerned property) and exclusive floor area on a standard floor (exclusive floor area per floor).
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| Construction type and specifications of facilities | Building design and floor plan suitable for leasing, with divisibility, adequate ceiling height, electrical service, HVAC equipment, etc. |
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| Earthquake resistance | Comply with new earthquake standards (meaning standards based on the Building Standards Act revised in 1981) or secure performance equivalent to or above that level (obtaining structure rating/structure evaluation (rating/evaluation on building structure conducted by The Building Center of Japan based on the Building Standards Act), etc.) | |
| Measures regarding status of legal title | In cases such as co-ownership, condominium interest ownership, a building erected on leased land, etc. where NBF will not obtain complete ownership of a building, the following matters are appropriately treated.
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| Tenancy characteristics | Acceptable creditworthiness of tenants, purposes of use by tenants, configuration, and condition of collectibility of rents etc. |
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| Environmental; condition of land, etc. | No use of harmful substances such as asbestos or existence of measures to respond to such. Soil contamination conditions comply with environmental standards, etc. | |
Investment in Properties Not Completed or Unleased
In principle, NBF acquires real estate, etc. which are leased/leasable assets at the time of closing. NBF may acquire properties which are not yet leasable at the time of closing based on consideration of the impact on NBF's asset operation 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 assets 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 properties for which the construction of the buildings have been completed and such buildings are 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).