April 16, 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 Debt Financing (Refinancing)Star Asia Investment Corporation (“SAR”) announces today that it has decided to execute debt financing (the“Debt Financing”), as described below.
1.

Details of the Debt Financing

Term(Note 1)

Long-term
borrowings(Note 1)

Lenders

A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 2)
A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 3)

Borrowingamount5,960
million yen

Interestrate(Note 4)(Note 5)

Date ofborrowing

Borrowing method

April 20,
2021

Borrowing basedon the individual
term loan
agreement
expected to bedated April 16,
2021 based on thebasic agreement
dated July 29,2020 with
Sumitomo Mitsui
Banking
Corporation asagent.

Baseinterestrate(JPY 3M
TIBOR）+0.60%

3,000million yen

Baseinterestrate(JPY 3MTIBOR）+0.80%

Principal
RepaymentDate(Note 6)

Repayment
methodSecurity

Lump sum
repaymentonprincipal
repaymentdate(Note7)

UnsecuredandUnguaranteed

April 30,
2026

April 28,2028

Long-term borrowings refer to borrowings where the period up to the repayment date is one year or more. The
same applies hereinafter for long-term borrowings.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., The Bank ofYokohama, Ltd., Shinsei Bank, Limited, Aozora Bank, Ltd., and Sumitomo Mitsui Trust Bank, Limited.

(Note 3)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, The Kiyo Bank, Ltd., and Fukoku Mutual Life Insurance Company.

(Note 4)

Financing fees and other charges payable to the lenders are not included.

(Note 5)

The first interest payment date is April 30, 2021, and thereafter, interest payment dates shall fall on the last dayof every 3 months and on the principal repayment date. However, if such day is a non-business day, the interest

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payment date shall be the immediately following business day, or if such day falls in the next month, the interest
payment date shall be the immediately preceding business day. For borrowings with floating interest rates, thebase interest rate applicable to the calculation period for payment of interest on any given interest payment dateis the three month interest rate for Japanese Yen as announced by JBA TIBOR Administration at 11 a.m. (Tokyotime, the same applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m. as possible, on
the date which is two business days prior to the immediately preceding interest payment date (or two businessdays before the drawdown date for the first interest payment date). However, for the calculation of interest for
the first interest period, the higher of either (i) the rate of interest indicated for an interest period which is nearest
to and shorter than the relevant interest calculation period, and (ii) the rate of interest indicated for an interest
period which is nearest to and longer than the relevant interest calculation period shall be applied. For JapaneseYen TIBOR announced by the JBA TIBOR Administration which is used as the base interest rate, please confirm in
the JBA TIBOR Administration website (http://www.jbatibor.or.jp/).
(Note 6)

If the principal repayment date is not a business day, repayment shall be made on the next following business
day; however, if such date falls in the next month, repayment shall be made on the immediately precedingbusiness day.

(Note 7)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the principal repayment date, SAR may prepay the borrowed amounts either in whole or in partprior to maturity.

(Note 8)Certain financial covenants, such as stipulating that certain financial figures should be maintained based on assets
and liabilities, are expected to be established for the Debt Financing.

2.

Reason for the Debt Financing
The proceeds from the Debt Refinancing will be appropriated to repayment of debt consisting of the JPY
7,300 million long-term borrowing to mature on April 20, 2021 announced in the press release dated April20, 2016 entitled “Notice Concerning Execution of Debt Financing and Establishment of Interest RateSwaps”, and the short-term borrowing with an outstanding principal amount of JPY 1,660 million to mature
on April 20, 2021 announced in the press release dated March 16, 2021 entitled “Notice Concerning Debt
Financing (Refinancing)”. (The Debt Financing and the repayment of the existing borrowings shallhereinafter be referred to collectively as the “Refinancing”.)
With respect to the Debt Financing, in order to enhance stability of its financial base, SAR intends toconsider fixing the interest payments by entering into interest rate swap agreements etc.

3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditure(1) Amount of funds to be procured
JPY 8,960 million in total(2) Specific use of funds to be procured and schedule of expenditureSpecific use of funds
AmountTo be allocated to repayment of the existing
8,960 million yen
borrowings stated in Section 2 above.

4.

Schedule of Expenditure
April 20, 2021

Status of Borrowings etc. after the Refinancing
Before theRefinancing
3,810
78,630

Short-term borrowings
Long-term borrowings

2(Unit: million yen)
After theChange
Refinancing
2,150-1,660
80,2901,660

Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds
Other interest-bearing liabilities
Total interest-bearing liabilities

82,44082,440－82,440－82,440－82,440－82,440－－－－82,4405.

Future Outlook
The impact of the Refinancing on the operating results is insignificant, and the impact on the forecastof operating results for the fiscal period ending July 31, 2021 (February 1, 2021 to July 31, 2021) and thefiscal period ending January 31, 2022 (August 1, 2021 to January 31, 2022) which was announced by SAR
in the “(REIT) Financial Report for Fiscal Period Ended January 31, 2021” dated March 16, 2021 is
minimal, and there are no changes to the forecast.

6.

Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks pertaining to the repayment of the Debt Financing, there are no changes
to “Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the securities report(Japanese only) submitted on October 28, 2020.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated April 16, 2021. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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