On February 3, Mori Building Co., Ltd. (head office: Roppongi, Minato-ku, President: Minoru Mori) signed its first syndicated loan contract with co-arrangers including Mizuho Corporate Bank, Sumitomo Mitsui Banking Corporation, and the Bank of Tokyo-Mitsubishi UFJ, Ltd.

We remain dedicated to the pursuit of urban development efforts that will improve disaster prevention, environmental conservation, and urban infrastructure to create richer, more fulfilling lives for city residents. But such efforts require a solid financial foundation. Since our goal is to maintain a well-balanced financial structure while promoting large-scale urban redevelopments, raising funds through a syndicated loan, an indirect, market-oriented financing tool, is one way for us to establish our business model. Some major advantages offered by syndicated loans are discussed below.

* Diversification of fund-raising methods (expanded ties with new financial institutions)
* Access to stable, low-interest, long-term funds
* Achievement of an optimal balance of interest-bearing debt

To obtain a syndicated loan, we held a bank meeting in which we described our corporate philosophy, business model, and financial status. The meeting attracted considerable attention from financial institutions and led to a syndicated loan of 71.9 billion yen - far exceeding our target figure (30 billion yen) - from a total of 55 financial institutions. These institutions included major commercial banks, regional banks, small business financial institutions, insurance companies, and foreign banks. With respect to the amount loaned and the number of participating financial institutions, this represents the largest syndicated loan granted by new financial institutions within the real estate industry (general syndication).

<Overview of this syndicated loan>
Loan amount: 71.9 billion yen (45.1 billion yen for five years and 26.8 billion yen for three years)
Arrangers: Mizuho Corporate Bank, Sumitomo Mitsui Banking Corporation and the Bank of Tokyo-Mitsubishi UFJ, Ltd.
Agent: Mizuho Corporate Bank
Number of participating financial institutions: 55
Date contract concluded: February 3, 2006
Date loan provided: February 9, 2006

Our real-estate leasing operations (offices, residential, and retail), which account for the largest share of our profits, is doing well, due to full-scale operations at Roppongi Hills, our key project; the opening of Omotesando Hills; and a recovering real-estate market in the city core. Given these circumstances, we hope to further the development of Tokyo as an international city by maintaining a well-balanced financial structure through J-REIT listings, securitization for mid and long term projects, and syndicated loans, as well as through the active pursuit of urban development projects that generate social capital improvements.