August 30, 2023
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 (Change to Borrowing Amount)Star Asia Investment Corporation (“SAR”) announces today that with respect to the debt financing announced
in the press release dated August 7, 2023 entitled “Notice Concerning Debt Financing” (hereinafter referred to as
the “Debt Financing”), it has decided to change the borrowing amount as described below.
1.

Change to the Debt Financing(1) Increase in the borrowing amount
Regarding the Debt Financing announced in the “Notice Concerning Debt Financing” dated August 7,2023, the total borrowing amount will be increased from JPY 25,700 million yen to JPY 26,300 million yen.
(2)

Reason for the Change
It has been decided to increase the borrowing amount, because the amount procured by the issue of
new investment units as announced in the “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” dated August 7, 2023 has been fixed, and such amount was lower
than the initially expected amount.

(3)

Details of the Debt Financing after the Change
There are no changes other than the increase in the borrowing amount. The parts that were changed
are underlined.
1. Method of Borrowing: Borrowings under individual term loan agreements (Contract date:August 30, 2023) from the lenders described below.

Term(Note 1)

Short-termborrowings

Lenders

Sumitomo MitsuiBankingCorporation andMizuho Bank, Ltd.

Borrowingamount(million yen)

1,300
(Note 6)

Interest rate(Note 2)(Note 3)

Floating

Date ofborrowingBaseinterestrate(JPY 3M
TIBOR)+0.20%

1

September 1,2023

Principal
RepaymentDate(Note 4)

August 30,2024

Repayment
method(Note 5)

Security

Lump sum
repaymentonprincipal
repayment
date

UnsecuredandUnguaranteed

Term(Note 1)

Lenders

Long-term
borrowings

A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 7)
A syndicate oflenders with
Sumitomo Mitsui
BankingCorporation andMizuho Bank, Ltd.
as arrangers(Note 8)Long-term
borrowings

2.

Term
(Note 1)Long-term
borrowings

Borrowingamount(million yen)Interest rate
(Note 2)
(Note 3)

(Beforechange)
9,200
Floating(Afterchange)
9,730

Date ofborrowingBaseinterestrate(JPY 3M

September 1,2023

Principal
Repayment
Date(Note 4)

February 28,2029

TIBOR)+0.65%(Beforechange)
12,000FloatingBaseinterestrate(JPY 3M
TIBOR)(Afterchange)
12,070

September 1,2023

August 30,2030+0.80%

Security

Lump sum
repaymentonprincipal
repayment
dateUnsecured
andUnguaranteed

Lump sum
repaymentonprincipal
repayment
date

UnsecuredandUnguaranteed

Method of Borrowing: Borrowing under individual term loan agreement (Expected contract
date: November 29, 2023) from the lenders described below.
Lenders

Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.

Borrowingamount(million yen)

3,200Interest rate(Note 2)(Note 9)Floating

Date ofborrowingBaseinterestrate(JPY 3M

December 1,2023

Principal
RepaymentDate(Note 4)

May 31,2027

TIBOR)+0.45%(Note 1)

Repayment
method(Note 5)

Repayment
method(Note 5)

Security

Lump sum
repaymentonprincipal
repayment
dateUnsecured
andUnguaranteed“Short-term borrowings” refer to borrowings due within one year. “Long-term borrowings” refer to borrowings
where the period up to the repayment date is one year or more. The same applies below.

(Note 2)Financing fees and other charges payable to the lenders are not included.

(Note 3)

The first interest payment date is September 29, 2023, and thereafter, interest payment dates shall fall on thelast day of every 3 months and on the principal repayment date. However, if such date is a non-business day,the interest payment date shall be the immediately following business day, or if such date falls in the next month,the interest payment date shall be the immediately preceding business day. For borrowings with floatinginterest rates, the base interest rate applicable to the calculation period for payment of interest on any given
interest payment date is the three-month interest rate for Japanese Yen as announced by JBA TIBOR
Administration at 11 a.m. (Tokyo time, the same applies hereinafter) or at the point of time after 11 a.m. andas 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 business days before the drawdown date for the first interest payment date).
However, if there is no base rate that corresponds to an interest calculation period, the base rate will becalculated by the formula set forth in the individual term loan agreements. For Japanese Yen TIBOR announced
by the JBA TIBOR Administration which is used as the base interest rate, please confirm on the JBA TIBOR
Administration website (https://www.jbatibor.or.jp/english/). SAR may consider fixing interest rate payments
by interest rate swap agreements for the Debt Financing.

(Note 4)

If the principal repayment date is a non-business day, the repayment date shall be the immediately following

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business day; however, if such date falls in the next month, repayment date shall be the immediately precedingbusiness day.
(Note 5)

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 inpart prior to maturity.

(Note 6)The loan is scheduled to be repaid prior to maturity during the fiscal year ending July 31, 2024, by applying therefund of consumption tax, etc.

(Note 7)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank,
Limited., Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited., The Bank of Fukuoka,Ltd., The Chiba Bank, Ltd., The Juhachi-Shinwa Bank, Ltd., The Asahi Shinkin Bank, The Musashino Bank, Ltd.,and The Yamagata Bank, Ltd.

(Note 8)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank,Limited., Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited., The Bank of Fukuoka,Ltd., The Kiyo Bank, Ltd., San ju San Bank, Ltd., The Juhachi-Shinwa Bank, Ltd., The Asahi Shinkin Bank, and The
Musashino Bank, Ltd.

(Note 9)The first interest payment date is December 29, 2023, and thereafter, interest payment dates shall fall on thelast day of every 3 months and on the principal repayment date. However, if such date is a non-business day,the interest payment date shall be the immediately following business day, or if such date falls in the next month,the interest payment date shall be the immediately preceding business day. For borrowings with floatinginterest rates, the base interest rate applicable to the calculation period for payment of interest on any given
interest payment date is the three-month interest rate for Japanese Yen as announced by JBA TIBOR
Administration at 11 a.m. (Tokyo time, the same applies hereinafter) or at the point of time after 11 a.m. andas 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 business days before the drawdown date for the first interest payment date).
However, if there is no base rate that corresponds to an interest calculation period, the base rate will becalculated by the formula set forth in the individual term loan agreements. For Japanese Yen TIBOR announced
by the JBA TIBOR Administration which is used as the base interest rate, please confirm on the JBA TIBOR
Administration website (https://www.jbatibor.or.jp/english/). SAR may consider fixing interest rate payments
by interest rate swap agreements for the Debt Financing.

(Note 10) 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.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditures(1) Amount of funds to be procured
26,300 million yen in total(2) Specific use of funds to be procured and schedule of expendituresThere are no changes other than the increase in the borrowing amount. The parts that were changed
are underlined.
Specific use of funds
AmountSchedule of Expenditure
To be allocated to the payment of a part of(Before change)
the acquisition funds and related expenses for
22,500 million yen
the real estate beneficiary interests in trust
September 1, 2023
for 8 properties to be acquired on September(After change)
1, 2023 (expected acquisition price: 46,143
23,100 million yen
million yen) .
To be allocated to the payment of a part of
3,200 million yen
December 1, 2023
the acquisition funds and related expenses for3the real estate beneficiary interests in trustfor 3 properties to be acquired on December
1, 2023 (expected acquisition price: 3,048
million yen).
3.

Status of Borrowings etc. after the Debt Financing(Unit: million yen)
Before theDebt Financing
Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total of borrowings andinvestment corporation bonds－95,840
95,8401,000

After theDebt Financing
1,300
120,840
122,140
1,000

96,840123,140

Increase/Decrease1,300
25,00026,300－26,300

4.

Future outlook
The impact of the change to the Debt Financing on SAR’s operating results is immaterial, and there are
no changes to the forecasts of operating results for the fiscal period ending January 31, 2024 (August 1,2023 to January 31, 2024) and the fiscal period ending July 31, 2024 (February 1, 2024 to July 31, 2024)
which were announced by SAR in the “Notice Concerning Revision to Forecasts for Operating Results for the16th Fiscal Period Ending January 31, 2024 and Forecasts for Operating Results and Distribution for the17th Fiscal Period Ending July 31, 2024” on August 7, 2023. The brief report on closing of accounts for thefiscal year ended July 31, 2023 (February 1, 2023 to July 31, 2023) is expected to be announced on
September 13, 2023.

5.

Other matters necessary for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to the change to the Debt Financing, 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 7, 2023.

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

This is an English translation of the announcement in Japanese dated August 30, 2023. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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