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Risk Factors
This section details the major details that we believe may become risks factors with respect to investment in the Units or investment corporation bonds issued by the Investment Corporation (“Bonds”). The following is not an exhaustive list and there are risks other than those described below.
The Investment Corporation endeavors as much as possible to avoid these risks and to handle the risks if they eventuate; however, no assurances can be given that this avoidance and handling is ultimately sufficient. If any of the risks described below arise, the market value of the Units or the Bonds declines or the amount of distribution decreases, potentially resulting in losses for the investors.
For more information, please refer to 
Investment Risks.(PDF:159KB)
I. Risks Regarding Products Features of Units and Bonds
(A)
Risk Regarding Market Price Fluctuations for Units and Bonds
(B)
Risk Regarding Market Transactions for Units
(C)
Distribution Risk
(D)
Risk Regarding Fluctuation in Revenue and Expenditure
(E)
Risk Regarding Redemption and Interest Payment of Bonds
II. Risks Regarding Investment Corporation’s Investment Policy
(A)
Risk Regarding Specialized Investment in Retail Facilities
(B)
Risk Regarding Dependency on Limited Number of Tenants
(C)
Risk Regarding Single and Core Tenant Property
(D)
Risk Regarding Imbalance in Business of Tenants
III. General Risks Regarding Investment Corporation’s Operations
(A)
Risk Investment Corporation Cannot Acquire or Dispose of Real Estate
(B)
Risk Regarding Funding Through Issuance of New Units and Through Borrowings and Issuance of Investment Corporation Bonds
(C)
Risk Regarding Dilution in case of the Issuance of New Units
IV. Risks Regarding Investment Corporation’s Related Persons and Structure
(A)
Risk Regarding Dependency on Mitsubishi Corporation and UBS AG and Conflicts of Interest
(B)
Risk Regarding Dependency on Investment Corporation’s Related Persons and Conflicts of Interest
(C)
Risk of Investment Corporation Depending on Asset Manager’s Personnel
(D)
Risks Arising from No Legal Prohibitive Regulations Regarding Insider Trading Restrictions
(E)
Risk Regarding Amendments to Investment Corporation’s Investment Policy
(F)
Risk Investment Corporation Goes Bankrupt or Registration Be Cancelled
(G)
Risk Regarding Security Deposit and Guarantee Deposit
V. Legal Risks Regarding Real Estate and Trust Beneficial Interests
(A)
Risk Regarding Faults or Defects
(B)
Risk Regarding Lease Agreement
(C)
Risk of Damaged, Destroyed or Deteriorated Building due to Natural Disaster
(D)
Risk Regarding Owner Responsibility and Repair and Maintenance Costs for Real Estate
(E)
Risk Regarding Disproportionate Geographical Spread of Real Estate
(F)
Risk Regarding Administrative Regulations and Prefectural or Municipal Ordinances for Real Estate
(G)
Risk Arising from Seller’s Insolvency
(H)
Risk Regarding Sublease
(I)
Risk Regarding Master Lease Agreement
(J)
Risk Regarding Status of Use and Management of Real Estate by Tenants
(K)
Risk Regarding Co-owned Property
(L)
Risk Regarding Unit-Owned Buildings
(M)
Risk Regarding Land with Leasehold Interest
(N)
Risk Regarding Property on Leased Land
(O)
Risk Regarding Leased Houses
(P)
Risk Regarding Property Under Development
(Q)
Risk Regarding Harmful Materials
(R)
Risk Specific to Real Estate Owned as Beneficial Interests
(S)
Risk Regarding Forward Commitment, etc.
(T)
Risk Regarding Application of Asset Impairment Accounting
VI. Taxation Risks
(A)
General Risk Regarding Maintenance of Conduit Requirements
(B)
Risk of Not Satisfying Requirements for Payment Resulting from Tax Burden
(C)
Risk Regarding Conduit Requirements for Borrowings
(D)
Risk of Conduit Requirements for Close Corporations Beyond Investment Corporation Control
(E)
Risk of Number of Unitholders Holding Units Beyond Investment Corporation Control
(F)
Risk of Additional Tax Burden and Risk Distribution Requirement Not Satisfied Retrospectively Due to Retrospective Tax Adjustment Following Tax Audit
(G)
Risk of Reduced-Tax System for Acquisition of Real Estate Not Applying
(H)
Risk Regarding General Amendments to Taxation System
VII. Miscellaneous Risks
(A)
Risk of Relying on Professional Opinions
(B)
Risk that the Tax Burden Will Increase Due to Inconsistency of Accounting Processing and Tax Processing
(C)
Risk Regarding Investment in Capital Contribution of Anonymous Partnerships
