Frontier Real Estate Investment : Notice Concerning the Execution and the Repayment of Short-term Borrowings

Translation Purpose Only To All Concerned Parties

January 17, 2017

6-8-7 Ginza, Chuo-ku, Tokyo Frontier Real Estate Investment Corporation Kazuichi Nagata, Executive Director

(Securities Code: 8964)

Asset Management Company: Mitsui Fudosan Frontier REIT Management Inc.

Hiroshi Tanaka Chief Executive Officer and Representative Director

Inquiries: Mitsui Fudosan Frontier REIT Management Inc.

Akiko Kaito Chief Finance Officer and Director

Tel: [phone]

Notice Concerning the Execution and the Repayment of Short-term Borrowings

Frontier Real Estate Investment Corporation (the "Investment Corporation") hereby announces that it has decided to execute short-term borrowings. The Investment Corporation, additionally, announces it would repay short-term borrowings on January 19, 2017. Details are provided below.

1. The Execution of Short-term Borrowings

2. Purpose

   To appropriate for the repayment of short-term borrowings as of December 19, 2016.

3. Details

   ① Drawdown Date : January 19, 2017

   ② Repayment of Principal : Payment in full on the maturity date

   ③ Loan Type : Unsecured, Unguaranteed

   ④ Lender, Amount, Maturity Date and Interest Rate:

   Lender	Amount	Maturity Date	Interest Rate
   Mizuho Bank, Ltd.	￥3,000 Million	February 20, 2017	0.06000% (Interest Rate is fixed until the maturity date.)
   The 77 Bank, Ltd.	￥1,000 Million	February 20, 2017	0.06000% (Interest Rate is fixed until the maturity date.)
   THE BANK OF FUKUOKA, LTD.	￥1,000 Million	February 20, 2017	0.06000% (Interest Rate is fixed until the maturity date.)

4. The Repayment of Short-term Borrowings

   Details of the repayment of short-term borrowings on January 19, 2017 are as follows.

   Lender	Borrowing Amount	Drawdown Date	Maturity Date	Repayment of Principal	Loan Type
   Mizuho Bank, Ltd.	￥3,000 Million	December 19, 2016	January 19, 2017	Payment in full on the maturity date	Unsecured Unguaranteed
   The 77 Bank, Ltd.	￥1,000 Million
   THE BANK OF FUKUOKA, LTD.	￥1,000 Million

5. Change in the Balance of Borrowings

   (Unit : ￥Million)

   Before This refinance	After This refinance	Variance
   Short-term Borrowings	5,000	5,000	－
   Long-term Borrowings	78,400	78,400	－
   Investment Corporation Bonds	3,000	3,000	－
   Borrowings Total	86,400	86,400	－

   (*) Long-term Borrowings include the balance of borrowings due within one year.

6. Others

7. Regarding the loan repayment risk, there is no important change to the "Investment risks" description in the latest securities registration statement submitted on September 28, 2016.

   This document is released to media organizations through the "Kabuto Club"(the press club of the Tokyo Stock Exchange), the Ministry of Land, Infrastructure and Transport Press Club, and the Press Club for the Ministry of Land, Infrastructure and Transport Construction Paper.

   Frontier Real Estate Investment website: http://www.frontier-reit.co.jp/eng/

   Disclaimer

   This information was originally publicized in the original Japanese language and has been translated for reference purposes only. Frontier Real Estate Investment Corporation guarantees neither the completeness nor the accuracy of this English translation. For complete and accurate information, please refer to the press release in Japanese. In addition, this press release is not prepared as an inducement or invitation for investment. All readers are advised to consult their own investment advisors before investing in the Investment Corporation. Investment decisions are made at the investor's sole discretion and responsibility and are made at their own risk. The Investment Corporation and its affiliates disclaim any responsibility or liability for the consequence of investment in the Investment Corporation.