October 18, 2021
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Officer(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato
President and CEO
Contact:
Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Establishment of Interest Rate SwapStar Asia Investment Corporation (“SAR”) announces today the establishment of interest rate swap
agreements (the “Establishment of Interest Rate Swap”) for the long-term borrowings described in the “NoticeConcerning Debt Financing (Refinancing)” dated October 15, 2021, as described below.
Please refer to the press release mentioned above for details of the borrowings for which the Establishment ofInterest Rate Swap was performed.
1.

Reason for establishment
The interest rate swap has been established in order to fix interest rate payments and hedge interest
rate fluctuation risks pertaining to the borrowing under an individual term loan agreement concluded on
October 18, 2021, as described in “2. Details of the established swap” below.

2.

Details of the established swap(1)Borrowing for which the interest rate swap agreements were concludedTerm(Note 1)Long-term
borrowings(Note 1)

Lenders

A syndicate oflenders with
Sumitomo MitsuiBanking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 2)

Borrowingamount3,115
million yen

Interestrates

Baseinterestrate(JPY 3M
TIBOR）

Date ofborrowing

Borrowing
methodOctober 20,
2021

Borrowingbased on theindividual termloan agreement
dated October18, 2021 basedon the basicagreement
dated July 29,2020 with
SumitomoMitsui Banking
Corporation asagent.

+0.60%

PrincipalRepayment
Date

October 20,
2026

Repayment
methodSecurity

Lump sum
repayment
onprincipal
repayment
date

UnsecuredandUnguaranteedLong-term borrowings refer to borrowings where the period up to the repayment date is more than one year.
The same applies below.

1

(Note 2)

The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Shinsei Bank,
Limited, Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited and Mizuho Trust &Banking Co., Ltd.

(2)

Details of interest rate swap agreement
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
3,115 million yen
Interest rate (Note)
Fixed interest rate payable: 0.15045 %Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date
October 20, 2021
Termination date
October 20, 2026
Interest payment dates
The first interest payment date shall be October 29, 2021, and subsequently
every 3 months at the end of the month.
(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.75045% with theconclusion of the Establishment of Interest Rate Swap.

3.

Future outlook
The impact of the Establishment of the Interest Rate Swap on SAR’s operating results is immaterial, andthe impact on the forecast of operating results for the fiscal period ending January 31, 2022 (August 1, 2021
to January 31, 2022) and the fiscal period ending July 31, 2022 (February 1, 2022 to July 31, 2022) whichwere announced by SAR in the “(REIT) Financial Report for Fiscal Period Ended July 31, 2021” dated
September 14, 2021 is minimal, and there are no changes to the forecast.

4.

Other matters required for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to the Establishment of Interest Rate Swap, there are no changes
to “Part II. Reference Information / II. Information Supplementary to Reference Documents / 3. Investment
Risks” stated in the Securities Registration Statement (Japanese only) submitted on August 2, 2021.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated October 18, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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