Establishment of a Collaborative System

With the selection of Sekisui House, Ltd. and Spring Investment Co., Ltd. as new sponsors, the Asset Management Company changed its trade name to "Sekisui House SI Asset Management, Ltd." in March 2010 and started anew. The purpose of the name change is to indicate that the Asset Management Company will strive to develop the Investment Corporation in cooperation with the two sponsors.
Alongside this, at the Fourth General Meeting of Unitholders held by the Investment Corporation, a proposal to change the trade name of the Investment Corporation to "Sekisui House SI Investment Corporation" was approved in June 2010 for the purpose of establishing its brand image .
In this way, the foundation for a collaborative system with Sekisui House, Ltd. and Spring Investment Co., Ltd. has been established.

Enhancing the Management Structure, etc.

The Asset Management Company has accepted directors dispatched from Sekisui House, Ltd. and Spring Investment Co., Ltd. and has established a structure for the two sponsor companies to support the operations of the Asset Management Company. The purpose is to further enhance its management structure and internal control structure. Please see the Organization Chart for the structure of the Asset Management Company.

Establishing a Pipeline Support System

The Investment Corporation concluded the following agreements as of March 8, 2010 to establish a pipeline support system on property information, etc., particularly on residential properties, from its sponsor companies, Sekisui House, Ltd. and Spring Investment Co., Ltd. As a result, securing opportunities for the stable acquisition of properties, particularly high quality rental housing owned by Sekisui House, and expanding opportunities for external growth are expected.

	(1) Agreement Concerning Priority Negotiation Rights, etc.	(2) Agreement Concerning Priority Provision of Property Information
Parties to the Agreement	Sekisui House the Investment Corporation the Asset Management Company	Spring Investment the Investment Corporation the Asset Management Company
Major Contents of the Agreement	Granting of priority negotiation rights concerning properties, etc. held by the party Provision of information, etc. concerning properties held by third parties	Priority provision of information concerning disposition of properties entrusted discretionary investment business or investment advisory business Provision of information concerning properties held by third parties

*(1) and (2) are collectively called the Pipeline Support Agreement.

Structure

Execution of Capital Increase through Third-Party Allotment

In April 2010, we executed a capital increase through third-party allotment totaling around 1.8 billion yen (issuance of 10,400 units) to Sekisui House, Ltd. and Spring Investors Co., Ltd., a wholly-owned subsidiary of Spring Investment Co., Ltd. The purpose was to clearly show to all existing unitholders and market players, such as financial institutions, that the sponsor companies will be fully involved in the management of the Investment Corporation from the standpoint of stable unitholders.
(Reference) Please see here for total unitholders’ equity and major unitholders of the Investment Corporation.

Purpose and Effects of the Capital Increase through Third-Party Allotment