March 15, 2024
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 Partial Amendment to the Management Guidelines of the Asset Manager
Star Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment Corporation(“SAR”) entrusts the management of its assets, announces today that the Asset Manager has made a partial
amendment to the management guidelines, which are internal rules of the Asset Manager. Details are as follows.
1.

Overview of the Amendment to the Management Guidelines
The main amendments are described below. (Only the parts where there were changes are stated, anddescription of parts other than the changed parts have been omitted. The changes are indicated byunderlines.)(1)

Investment Target Areas and Investment Ratios<Before Amendment><Investment Target Areas common to all asset types>
Area Classification
Tokyo Area

Major
Metropolitan
AreasSpecific Investment Target Areas
Tokyo, Kanagawa, Saitama, Chiba
prefectures

Osaka Area

Osaka-shi, Osaka prefecture

Nagoya Area

Nagoya-shi, Aichi prefecture

Fukuoka Area

Fukuoka-shi, Fukuoka prefecture

Investment Ratio
In principle,
70% or more.
In principle,
less than 30%.

Government ordinance designated areas etc. other than theIn principle,
above investment target areas.
less than 10%
The above-mentioned investment target areas are applicable to all asset types. However, forresidences and logistics facilities, the following shall apply.
- Residences: In addition to the above-mentioned investment target areas, investments may also
be made in neighboring areas of Osaka-shi, Osaka Prefecture (with respect to the Osaka Area),neighboring areas of Nagoya-shi, Aichi prefecture (with respect to the Nagoya Area), andneighboring areas of Fukuoka-shi, Fukuoka prefecture (with respect to the Fukuoka Area),
respectively.
- Logistics facilities: In addition to the above-mentioned investment target areas, investments may
also be made in neighboring areas of Osaka-shi, Osaka Prefecture (with respect to the Osaka Area),neighboring areas of Nagoya-shi, Aichi prefecture (with respect to the Nagoya Area), and1

neighboring areas of Fukuoka-shi, Fukuoka prefecture (with respect to the Fukuoka Area),
respectively.
Furthermore, investments may be made in areas other than the above investment target areas, incases where it is determined that tenant demand is likely to be high in the mid- to long-term, when
taking into account location characteristics (nearest consumption area, and status of access to varioustransportation infrastructure facilities such as airports, harbors, highway ICs etc.) In such case, thecalculation of investment ratios shall be classified under “Major Metropolitan Areas - Government
ordinance designated areas etc. other than the above investment target areas”.
With respect to investment ratios by each investment target area, the “Tokyo Area” shall be designatedas the main investment area and the investment ratio for the area shall in principle be 70% or more of
the entire portfolio on an acquisition price basis. Furthermore, with respect to investment target areas
other than the Tokyo Area, “Main Metropolitan Areas” shall be designated and the investment ratio ofsuch areas shall in principle be less than 30% of the entire portfolio on an acquisition price basis. Evenamong the Main Metropolitan Areas, the investment ratio for “Government ordinance designated areas”
other than the “Osaka Area”, “Nagoya Area” and “Fukuoka Area” shall, in principle, be maintained at lessthan 10% of the entire portfolio on an acquisition price basis.
However, the investment ratio for the Tokyo Area may temporarily fall to below 70%, (i) in cases where
an investment is to be made strategically into a certain area based on the results of independent market
analysis, (ii) when property is to be acquired under a bulk sale (transactions with the condition ofacquiring multiple properties at the same time), and (iii) due to a merger etc. Upon calculating theinvestment ratios separately for each investment target area, with respect to a-2 securities etc., theinvestment ratio should be determined based on the location of the real estate property etc. which isunderlying the real-estate backed securities or the mezzanine loan receivables.
<After Amendment><Investment Target Areas>
Area Classification
Tokyo Area
Osaka Area
Major
Metropolitan
Areas

Fukuoka AreaNagoya Area

Investment Target Areas

Investment Ratio

Tokyo, Kanagawa, Saitama, Chiba prefectures

In principle,
70 % ± 10%

Osaka-shi, Osaka
prefecture
Fukuoka-shi, Fukuoka
prefecture
Nagoya-shi, Aichi
prefecture

In principle,
20% ± 10%

* For residences,logistics facilities
and hotels, also
includes theneighboring areas.

In principle,± 10%±10%Investments in “Other Areas” shall be made based on strict selection, after carefully consideringstability of income and growth potential, while taking into account location characteristics and population
concentration of surrounding areas etc.
Other Areas (other than the above-mentioned investment target areas)

With respect to investment ratios by each investment target area, the “Tokyo Area” shall be
designated as the main investment area and the investment ratio for the area shall in principle be 70%± 10% of the entire portfolio on an acquisition price basis. Furthermore, with respect to investment target
areas other than the Tokyo Area, “Main Metropolitan Areas” composed of the “Osaka Area”, “FukuokaArea” and “Nagoya Area” shall be established, and the investment ratio of such areas shall in principle be20%±10% of the entire portfolio on an acquisition price basis. Areas other than the “Tokyo Area” and the“Main Metropolitan Areas” shall be designated as “Other Areas”, and the investment ratio in such Other2

Areas shall, in principle, be maintained at 10%±10% of the entire portfolio on an acquisition price basis.
However, the investment ratio for each respective investment target area may temporarily fall outsideof the designated ratios, (i) in cases where an investment is to be made strategically into a certain area
based on the results of independent market analysis, (ii) when property is to be acquired under a bulk
sale (transactions with the condition of acquiring multiple properties at the same time), and (iii) due to amerger etc. In such cases, the situation should be resolved in more or less 5 years.
(2)

Strategic investments into large-size assets<Before Amendment>
Strategic investment in large assets limited to the 5 central wards (Chiyoda, Chuo-ku, Minato-ku,Shinjuku-ku, and Shibuya-ku. The same applies hereinafter) of Tokyo
We are of the view that the 5 main wards of Central Tokyo are an area with prospective high demandin retail facilities, residences and student housing residences, and vacancy risk and rents reduction risk
are relatively low. Also, with respect to hotels, the 5 main wards of Central Tokyo have solid businessand tourism demand and is expected to be highly stabile. Therefore, within the 5 main wards of CentralTokyo, it is conceived that stable income may be secured by investing in carefully selected large-size
assets, and from the perspective of accelerating the expansion of asset size, acquiring of large-sizeassets are allowed limited to the 5 main wards in Central Tokyo. Investments into large-size assets atlogistics facilities are to be made pursuant to “III. Investment Standards/ a) Investment Standards foreach type of asset of real estate properties, etc. / (4) Logistics Facilities”.
<After Amendment>
Strategic investment in large assets
We are of the view that the Tokyo Area and the Main Metropolitan Areas have prospective highdemand for all asset types, and vacancy risk and rents reduction risk are relatively low. Therefore, inthe Tokyo Area and the Main Metropolitan Areas, it is conceived that stable income may be secured byinvesting in carefully selected large-size assets, and also from the perspective of accelerating theexpansion of asset size, acquiring of large-size assets are allowed in the Tokyo Area and the Main
Metropolitan Areas.

(3)

Financial Policy (Debt Finance)<Before Amendment>
SAR, by building good relationships with multiple financial institutions centered on megabanks, will
aim to realize stable debt financings while simultaneously aiming for diversification of lenders.
Furthermore, while giving consideration to distribution of repayment deadlines for debt financings, SAR
plans to fix interest rates for long-terms and achieve stable distribution payments.
<After Amendment>
SAR, by building good relationships with multiple financial institutions, will aim to realize stable debt
financings while simultaneously aiming for diversification of lenders. Furthermore, SAR plans to makeefforts to distribute repayment deadlines, and aim to maintain and improve distributions per unit (DPU)
while taking into account the asset side status of the balance sheet and future outlook of the financial
environment, and control financing costs as and when necessary.

Other than those described above, some minor changes have also been made.

32.

Purpose and Background of the Amendment
Since listing in April 2016, SAR as a diversified REIT has upheld the following 3 main investment policies andhas conducted investments pursuing maximization of unitholders’ interests.
◼ Prioritized and concentrated investments in the Tokyo Area/Tokyo Area ratio of 70% or more.
◼ Achieve “stability” and “growth” of revenues by diversifying asset type (uses).
◼ Invest mainly in middle-sized assets (referring to Real Estate Properties Etc. (see Note) with acquisition priceof less than 10 billion yen.)(Note) “Real Estate Properties Etc.” means real estate properties and trust beneficial interests backed by real estate
properties.

Based on the investment policies described above, through external growth by acquiring properties
accompanied by 6 public offerings, the merger, and active management by 10 asset replacements etc., theasset size as of today has expanded to 243.8 billion yen (71 real estate properties etc., one investmenttransaction in preferred securities, and 2 investments in mezzanine loan debts), and as a consequence, SAR
and the Asset Manager believes that the impact of a single property on the portfolio as a whole has become
reduced, and the level of risk tolerance of the portfolio has expanded.
On the other hand, as a result of property acquisitions and asset replacement implemented after August
2022, the condition of the investment ratio being lower than the “Tokyo Area ratio of 70% or more” hascontinued. To note, concerning the suburban-type retail facilities (located outside of the Tokyo Area) which
was incorporated due to the merger, the policy is to dispose of them in the future; however, as of today, weare taking measures to increase the value based on a business plan, and the timing of disposal is not yet
decided.
Taking these circumstances into consideration, the Asset Manager has decided to partially amend the“Management Guidelines” which provide for basic matters related to SAR’s investment management, while
maintaining the purpose of the main investment policies as described above. The standard of “Tokyo Area
ratio of 70% or more” has been changed to “Tokyo Area ratio of 70% ±10%”, and furthermore, in cases where
the ratio temporarily falls outside of this scope due to mergers etc., it has been stipulated that such condition
should be resolved targeting 5 years. Furthermore, regarding strategic investments into large-size assets, theformer standard of limiting them to the 5 main wards in Central Tokyo has been expanded to the Tokyo Area
and the Main Metropolitan Areas.
Furthermore, under the policy to maximize unitholders’ interests, in order to control financing costs tomaintain and improve distributions per unit (DPU), particularly concerning financing costs upon conducting
debt financings, some revisions are made to clarify the policy for decisions to be made as and when necessary,taking into the status of interest rates and prospects of the future financial environment.
3.

Date of Amendment of Management Guidelines
March 15, 2024

4.

Future outlook
There is no impact from the above partial amendment to the Management Guidelines on the operating resultsof SAR.

5.

Others
The extraordinary report was submitted to the Director-General of the Kanto Local Finance Bureau on thisday.

4<Appendix>
Status of the Portfolio<Other press releases announced today>・(REIT) Financial Report for Fiscal Period Ended January 31, 2024

*SAR HP URL: https://starasia-reit.com/en/

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<Appendix> Status of the Portfolio
As of today, the Tokyo Area ratio within the portfolio is 63.6%.
The Tokyo Area ratio when calculated after excluding the 3 suburban-types commercial retail facilities which
are planned to be sold (“LaPark Kishiwada”, “Suroy Mall Chikushino”, and “Seiyu Minakuchi Store”) is 67.9%.

Other Areas,17.1%

MajorMetropolitan
Areas, 19.3%

Fukuoka Area,
6.5%
Osaka Area,
12.8%
Tokyo Area,
63.6%(Note) Major Metropolitan Areas means the Osaka Area, Fukuoka Area and Nagoya Area.

This is an English translation of the announcement in Japanese dated March 15, 2024. However, no assurance or warranties
are given for the completeness or accuracy of this English translation.

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