April 13, 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 Establishment of Interest Rate SwapStar Asia Investment Corporation (“SAR”) announces today the establishment of an interest rate swap (the“Establishment of Interest Rate Swap”) concerning long-term borrowings described in “Notice Concerning DebtFinancing (refinancing)” dated April 10, 2020, as described below. Moreover, please refer to the press releasementioned above for the details of borrowing for which the Establishment of Interest Rate Swap was performed.
1.

Reason for establishment
SAR intends to fix interest rate payments and hedge the risk of interest rate fluctuation pertaining to theborrowings under an individual term loan agreement concluded (Scheduled) on April 16, 2020 as describedin “2. Details of the established swap” below.

2. Details of the established swap
(1) Borrowing for which an interest rate swap agreement was concluded
Term(Note 1)

Borrowing
Lenderamount(million yen)Interest

Date of

Borrowing

Maturity

Repaymentrateborrowing

methoddatemethod

Security

Borrowing basedon the individual

A syndicate

term loanof lenders

agreementwithplaned to be

SumitomoLong-term

Base

Mitsui
Banking
Corporationand Mizuho

7,300

dated April 16,

Lump sum
repaymentinterest

April 20,

2020, based onrate2020

the basic+0.60%

April 21, 2025

agreement withon maturity
date

Unsecured
andunguaranteed

Sumitomo Mitsui

Bank, Ltd. as

Bankingarrangers

Corporation as(Note 2)

an agent dated
April 15, 2016.

(Note 1)“Long-term” refers to borrowings due after one year. The same applies hereinafter.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, Shinsei Bank, Limited, Resona Bank, Limited. and Aozora Bank, Ltd.,1

(2) Details of interest rate swap agreement
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
7,300 million yen
Interest rate (Note)
Fixed interest rate payable: 0.15875%
Floating interest rate receivable: JBA 1-month yen TIBOR
Commencement date
April 20, 2020
Termination date
April 21, 2025
Interest payment dates
The first interest payment will be May 20, 2020, and subsequent interest payments
will be the 20th of every month.
(Note) The interest rate for long-term borrowing will be effectively fixed at 0.75875% with the conclusion of theEstablishment of Interest Rate Swap.
3.

Future outlook
Since the impact of the Establishment of Interest Rate Swap on the operating results for the fiscal period
ending July 2020 (February 1, 2020 to July 31, 2020) and January 2021 (August 1, 2020 to January 31, 2021)
announced in “Financial Report for Fiscal Period Ended January 31, 2020 (REIT)” dated March 13, 2020 isminimal, 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 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the semiannual securities
report (Japanese only) on October 30, 2019.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated April 13, 2020.However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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