August 17, 2020
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 Handling of Fractional Investment Units Resulting from the Merger
In connection with the absorption-type merger between Star Asia Investment Corporation (“SAR”) and Sakura
Sogo REIT Investment Corporation (“SSR”) which came into effect on August 1, 2020 (the “InvestmentCorporation Merger”), the unitholders stated or recorded in the final unitholders register of SSR as of July 31,2020 (the “Unitholders Subject to Allocation”) were allotted investment units of SAR. As a result, for some
Unitholders Subject to Allocation, fractional investment units of less than one unit (the “Fractional InvestmentUnits”) were included in the investment units to which they are entitled to receive.
Pursuant to the provisions of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951,as amended), SAR plans to dispose of such Fractional Investment Units through market transactions anddistribute the proceeds thereof (the “Sales Proceeds of the Fractional Investment Units”) to the Unitholders
Subject to Allocation who are entitled to receive the Fractional Investment Units, in proportion to such total
number of entitled Fractional Investment Units.
SAR will send a separate mail notice to the relevant Unitholders Subject to Allocation the information on therelevant amounts to be distributed, the distribution method and other related matters related to the Sales
Proceeds of the Fractional Investment Units, and plans to commence payment of the proceeds by around theend of October 2020.
1.

Allotment of investment units
Unitholders Subject to Allocation (i.e. the unitholders who held investment units of SSR on July 29, 2020,the last date of cum-rights trading) are entitled to receive allotment of investment units of SAR.
To note, SAR has conducted a 2 for 1 split of its investment units on August 1, 2020, and the figuresdescribed below are figures after taking into account such investment unit split.
SAR
SSR
Allocation of investment units under the1
1.78
Investment Corporation Merger(Note) The number of new SAR investment units issued under the Investment Corporation Merger: 592,741 units.

2.

Calculation method of allotted investment units
Formula: Number of SSR investment units held x 1.78 ＝ Number of SAR investment units allotted1

(1)Example: The number of SAR investment units allotted following the Investment Corporation
Merger to the Unitholder Subject to Allocation is 1.78 units.
[Reference Diagram]
SSR

SAR

1 unit1 unit0.78 units: fractional investment units⇒ Sales proceeds equivalent to 0.78 units, which are less than one investment unit, will be paid tothe Unitholder Subject to Allocation.

(2)

Example: A Unitholder Subject to Allocation held 5 SSR investment units as of the record date.
The number of SAR investment units allotted following the Investment Corporation Merger to theUnitholder Subject to Allocation is 8.9 units.
[Reference Diagram]
SSR

SAR

5 units

8 units

0.9 units: fractional investment units⇒ Sales proceeds equivalent to 0.9 units, which is less than one investment unit, will be paid to theUnitholder Subject to Allocation.

(3)

Example: A Unitholder Subject to Allocation held 50 SSR investment units as of the record date.
The number of SAR investment units allotted following the Investment Corporation Merger to theUnitholder Subject to Allocation is 89 units.
[Reference Diagram]

SAR

SSR

50 units

89 units⇒ As no fractional investment units arise, no cash payment equivalent to sales proceeds of fractionalunits will be made.

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(4)

Example: A Unitholder Subject to Allocation held SSR investment units in accounts at multiple
securities companies
If a unitholder held SSR investment units in accounts at multiple securities companies as of therecord date, the Fractional Investment Units will be processed based on name-based aggregation
to calculate the total number of units held. If the total number of Fractional Investment Units
held by a unitholder calculated by aggregating the Fractional Investment Units in each account at
the respective securities companies adds up to one unit or more, any integral number of such
units will be recorded in the securities company account holding the largest number of units ofSSR.
The number of Fractional Investment Units which remain after the above aggregation will betreated as a fraction of one investment unit, and processed as described above.
[Reference Diagram]
1 unit: to the account at

Account at

Securities Company A

Securities
Company A

3units5units

0.34units

0.12 units：
fractional investment units

Account at
Securities
Company B

1unit

1unit

0.78 units⇒The total number of Fractional Investment Units in each account at the respective securities
companies is 1.12 units. Of such units, one unit will be recorded in the securities company
account holding the largest number of SSR investment units (in the above case, the account atSecurities Company A). In addition, with respect to the remaining fractional 0.12 units
following the aggregation, which is less than one unit, the unitholder will be paid an amountequivalent to the sales proceeds of the Fractional Investment Unit.

3.

Future Schedule
August 31, 2020
middle of October, 2020
latter half of October, 2020

Dispatch Allotment Notices (Note1)
Commence payments of merger consideration (Note2)
Commence payments of Sales Proceeds of the Fractional Investment
Units(Note1) To be dispatched to Unitholders Subject to Allocation(Note2)In lieu of the distribution proceeds to be paid for SSR’s final operating period ended July 31, 2020

(from January 1, 2020 to July 31, 2020), merger money in amounts equivalent to the distribution
payments for the final operating period is planned to be paid out to the Unitholders Subject toAllocation or any registered investment unit pledgees related to such unitholding by Unitholders
Subject to Allocation.
With respect to the forecast of merger money to be delivered due to the merger of SSR, please refer
to SRR’s press release dated March 2, 2020 entitled “Forecasts of Operating Results for the Fiscal
Period Ending July 31, 2020 (Final Fiscal Period) and Merger Consideration”. The amount of money3

to be delivered due to the merger will be announced as soon as decided.

＊Star Asia Investment Corporation website address:

http: //starasia-reit.com

This is an English translation of the announcement in Japanese dated August 17, 2020.However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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