Corporate Governance

Administrative Fees

Administration fees the Investment Corporation pays are as described below:
  • Fees for Directors
  1. The fees for each executive director shall be up to a maximum of eight hundred thousand yen (¥800,000) per month as determined by the board of directors, and shall be paid by crediting the bank account designated by each executive director on the last business day of each month.
  2. The fees for each supervisory director shall be up to a maximum of five hundred thousand yen (¥500,000) per month as determined by the board of directors, and shall be paid by crediting the bank account designated by each supervisory director on the last business day of each month. 

(*)
Pursuant to the provision on Liability for damages of Article 115-6, paragraph 7 of the Investment Trust Act, the Investment Corporation may provide that, in cases where the director has performed his/her duties in good faith and without gross negligence, and when the Investment Corporation finds it particularly necessary, taking into consideration the details of the facts that are the source of liability, the status of the execution of the duties of said director, and any other circumstances, an exemption from liability provided in Article 115-6, paragraph 1 of the Investment Trust Act may be granted by a resolution of the board of directors within the limits of law. (Article 48 of the Articles of Incorporation)

  • Fees for accounting auditor

Asset Management Fees
The fees for the accounting auditor shall be determined by the board of directors with the maximum amount of thirty million yen (¥30,000,000) for each closing of accounts subject to audit, and shall be paid by crediting the bank account designated by the accounting auditor within one month from the receipt of all audit reports required under the Investment Trust Act and other relevant laws and ordinances.


  • Fees for Asset Manager

Asset Management Fees
Under the asset management agreement, the Asset Manager receives an assetmanagement fee for each calculation period, which is a three-month period that ends on the final day of March, June, September and December of each year. This asset management fee is payable by the end of the second month following the end of such calculation period and is equal to a separately agreed fee percentage, which will not exceed 1.0% of the value of the "adjusted total assets" as of the end of each calculation period, annualized and pro-rated on the basis of a 365-day year. When the relevant calculation period ends in June or December,"adjusted total assets" equals our total assets as of the end of the fiscal period that ends concurrently with the calculation period. When the relevant calculation period ends in March or September, "adjusted total assets" equals our total assets as of the end of the immediately preceding fiscal period plus the aggregate acquisition price of the properties we acquire during the relevant calculation period, less the aggregate balance sheet value of the properties we dispose of during the relevant calculation period. However, if the aggregate acquisition price of the properties we acquire during the relevant calculation period is smaller than the aggregate balance sheet value of the properties we dispose of during the relevant calculation period, "adjusted total assets" equals our total assets as of the end of the immediately preceding fiscal period, plus the aggregate sales price of such disposed properties less the aggregate balance sheet value of such disposed properties. In addition, under the asset management agreement, the Asset Manager is entitled to reimbursement of certain administrative and other costs.

Asset Acquisition Fees
When the Investment Corporation acquires real estate or Specified Assets principally backed by real estate, the asset acquisition fee is the amount calculated by multiplying the acquisition value of the real estate or the real estate underlying Specified Assets by a rate agreed on separately to a maximum of 2%.

Asset Disposal Fees
When the Investment Corporation disposes of the real estate or the Specified Assets backed by real estate, the asset disposal fee is the amount calculated by multiplying the disposal value of the real estate or the real estate underlying Specified Assets by a rate agreed on separately to a maximum of 1.5%.

Merger Fees
When the Investment Corporation merges, the merger fees shall be the amount calculated by multiplying the appraisal value of the real estate owned by the other party to the merger or the Specified Assets backed primarily by such real estate at the time of the merger by a rate agreed on separately up to a maximum of 2%.
IIF also pays fees for the General Administrator and the Custodian etc.


For inquiries on administrative fees, please contact:

KJR Management
Industrial Division
Tokyo Building, 7-3, Marunouchi 2-chome, Chiyoda-ku Tokyo 100-6420, Japan
Tel: +81-3-5293-7091