January 24, 2019
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative:
Atsushi Kato, Executive Director(Code:3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato
President and CEO
Contact:
Toru Sugihara
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Acquisition of Real Estate Beneficiary Interests in TrustStar Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment
Corporation (“SAR”) entrusts the management of its asset, announces today its decision to acquire of
real estate property (the “Asset to be Acquired” and the transaction to acquire this beneficiary interests
is referred to as the “Acquisition”).
1.

Overview of the Asset to be Acquired
Asset type
OfficePropertyno. (Note 1)

Property name

OFC-13

Amusement Media Gakuin Shinkan

Location

Planned acquisition
price(mm yen) (Note2)

Shibuya-ku, Tokyo

1,020(Note 1) As for “Property no.”, please refer to “Reference Material 4” below.
(Note 2) ”Planned acquisition price” indicates the planned sale and purchase price stated in the sale andpurchase agreement for the Asset to be Acquired, after rounded to the nearest million yen. The plannedsale and purchase price does not include consumption tax, local consumption tax and various expenses
required for the acquisition.

Contract date
Planned acquisition dateSellers
Acquisition financing

Settlement method: January 24, 2019
: February 1, 2019 (delivery and settlement date): Please refer to “4. Planned Seller Profile” below.
: Proceeds from new borrowings (Note 3) for which resolution was madeat the Board of Directors meeting of SAR held on January 24, 2019and cash on hand.
: Payment of entire amount on planned acquisition date.

(Note 3) Please refer to “Notice Concerning Debt Financing” announced today for details.

2.

Reason for the Acquisition
SAR holds the investment policy of “prioritized focused investment in the Tokyo metropolitan area (70%or more investment ratio of the Tokyo metropolitan area among all investment)”, “continuous 'income
stability' and 'growth' through diversification of asset types”, “investment primarily in middle-sized asset(Note 1).” In line with this policy, SAR is aiming to realize a steady growth as a diversified REIT.
Through the Acquisition, SAR aims to expand the asset size and diversify risks through the increase in thenumber of properties held, as well as mainly to ensure the stability in medium to long-term profitability.
Shown below are key reasons for the investment decision for each of the selected asset.
Furthermore, SAR judges that the lessees of the Asset to be Acquired satisfy the criteria for the selectionof tenants (set by the Asset Manager) stated in the “Report on the Management Structure and System of
the Issuer of Real Estate Investment Trust Units and Related Parties” dated October 30, 2018.
(Note 1) Middle-sized assets mean real estate, etc. whose acquisition prices are under 10 billion yen.

1Amusement Media Gakuin Shinkan is an office building, approx. 7-minute walk from Ebisu Station on
the JR Yamanote, Saikyo and Shonan-Shinjuku Lines and the Tokyo Metro Hibiya Line.
The Ebisu area, where the property is located, is in high-quality business and residential environment. It
has a high concentration of companies, in particular such as foreign owned companies, IT-relatedcompanies, and creative companies such as advertisement and content industries. In addition, the area
is also characterized as a quiet residential area with closer proximity to home, where residence andsmall stores exist.
In terms of the physical features, although this building has been fully leased by a single tenant atpresent, the property has a structure and specifications that can be leased by floor. The office room ispillar- and column-free space, and has an open atmosphere with a ceiling height on the standard floorof 2,600 mm.
The tenant for this property is the same entity as the tenant for Amusement Media Gakuin Honkan,
which SAR acquired, Amusement Media Gakuin Honkan and Amusement Media Gakuin Shinkan are
managed and operated in a consistent and united manner. Furthermore, SAR concluded an agreementon preferential negotiation for the Asset to be Acquired with the Sponsor Group on August 21, 2018 toobtain the preferential negotiation right for the property, and the Acquisition was conducted byexercising this right.
As a result of comprehensive consideration on the characteristics of the location and property, SAR
decided to acquire the property by using the Sponsor support after determining that the acquisition
would contribute to the stability of medium to long-term revenue and enhancement of the stability ofthe portfolio revenue.
3.

Description of Asset to be Acquired
Please refer to Table below, for the detail of each of the Asset to be Acquired. For the terms used in thetables, please refer to the “Reference Material 4”.

2

Property
Property
OFC-13
no.
nameOverview of specified asset

Amusement Media Gakuin Shinkan

Type

OfficeType of specified asset

Beneficiary interest in trust Trustee

Mizuho Trust & Banking Co., Ltd.

Trust expiration date
Planned acquisition
priceAppraisal value

February 28, 2029

Unsecured

Security
Planned acquisition
1,020 million yen
date
1,120 million yen
Seller
2-85-1 Higashi, Shibuya-ku, Tokyo

February 1, 2019
GK El Toro

Location
Indication of residential
2-27-9 Higashi, Shibuya-ku, Tokyo
address
Approx. 7-minute walk from Ebisu Station on JR Line and Tokyo Metro Hibiya Line
Nearest station
Type ofLand
Proprietary ownershipownership
Site area
203.43m2
Use district
Quasi-industrial district
Building
coverage 80%
Floor area ratio
400%
ratio
Type of
Building
Proprietary ownershipownership
Total floor
913.71m2
Use
Office / Schoolarea
Constructi
on
Steel-framed reinforced concrete structure 7 floor
January 25, 1999
Structure and floors
completio
above groundn
Property management Sun Frontier Fudousan Co.,
Master lease company SAR
companyLtd.
Status of leasing
Monthly rent (including
Total leasable area
781.33m2
common area
Not disclosed (Note )maintenance fee)
Security and guarantee(Note)
Total leased area
Not disclosed
Not disclosed (Note )deposits
Total number of1
tenants
Occupancy rate
August 2018
100.00%

September 2018
100.00%

October 2018
100.00%Special notation
Not applicable.
(Note) The information is undisclosed as consent to disclosure has not been obtained from end tenants.

3

November 2018
100.00%December 2018
100.00%(unit: yen)
Summary of real estate appraisal report
Property nameAmusement Media Gakuin Shinkan

Appraisal value

1,120,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

November 1, 2018

Item
Indicated value by income approach
Indicatedvalue
capitalization methodbydirectDetails

Description, etc.

1,120,000,000

Estimated by associating value based on the direct capitalization method and thatbased on the DCF method.

1,140,000,000(1) Operating revenue ((a)−(b))

48,812,000(a) Gross potential income

48,812,000(b) Vacancy loss, etc.

0(2) Operating expenses

8,757,000

Maintenancemanagement fee

and102,000

Utilities expenses

3,400,000

Repair expenses

630,000

Property management fee

908,000

Tenant leasing cost, etc.

0

Property taxes

3,679,000

Insurance premium

38,000

Other expenses(3) Net operating(NOI=(1)−(2))

0income(4) Financial interests on deposits(5) Capital expenditures
(6)
Net
cash
(NCF=(3)+(4)−(5))

flowIndicated value by DCF method

Appraised based on actual data and taking into account the fee level of similar realestate.
Appraised based on actual data.
Appraised based on actual data and taking into account the fee level and the ER ofsimilar real estate.
Appraised by referencing fees based on the agreement terms and taking into accountthe characteristics of the property.
Unrecorded as no lessee replacement is expected since the entire building is leased
to the single lessee.
Recorded based on documents related to taxes and public charges.
Appraised by taking into account the estimate and insurance rate of similar realestate.
No special expenses are expected.

40,055,000
299,000
1,540,000(7) Capitalization rate

Appraised investment return as 1.0%.
Appraised by taking into account the capital expenditure level, building age and the
ER of similar real estate.

38,814,000
3.4%Appraised by adding individual factors such as location of the subject real estate to
the basis yield, and taking into account uncertainty of the future and cap rate, etc. ofsimilar real estate.

1,090,000,000

Discount rate

3.2%

Terminal capitalization rate

3.6%

Indicated value by cost approach

Unrecorded as the current lessee is expected to continue leasing since the entire
building is leased to the single lessee.

Appraised by comprehensively taking into account individual characteristics, etc. of
subject real estate by reference to the investment yield, etc. of similar real estate.
Appraised by comprehensively taking into account the uncertainty of the future byreference to the investment yield, etc. of similar real estate.

952,000,000

Ratio of land

88.5%

Ratio of building

11.5%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

4

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
An office building, approx. 7-minute walk from Ebisu Station on the JR Yamanote, Saikyo and Shonan
Shinjuku Lines and the Tokyo Metro Hibiya Line
Located in high-quality business and residential environment consisting of quiet residential area and small
storesPillar- and column-free space, and an open atmosphere with a ceiling height on the standard floor of 2,600mm.
(2) Acquisition highlight
The property, which is owned by the Sponsor Group through an acquisition executed in a form of anegotiated transaction using the wide range of business relations, will be acquired by utilizing the Sponsor
support.
Demographic analysis etc., market analysis and independent analysis by the Asset Manager(1) Demographic analysis, etc.
Shibuya-ku, Tokyo keeps trend of growing in population and the number of households. The Asset Manager
believes that the area will keep growing steadily in population from now on too.
Although there was a temporary decrease in terms of the number of offices and the number of employees in
2012, both figures showed a recovery in 2014 and kept the same level in 2016.
<Shibuya-ku, Tokyo – Population / Households >*Note:*Source:

Figures from 2009 to 2013 are as of the each fiscal period (March 31) and figures from 2014 to 2018
are as of January 1 for each year
Prepared by the Asset Manager based on “Counts of Population, Vital Events and Households
derived from the Basic Resident Registration,” Statistics Bureau, Ministry of Internal Affairs andCommunications<Shibuya-ku, Tokyo – Business establishments / Employees >5*Source:

Prepared by the Asset Manager based on “2009 Economic Census for Business Frame”, “2012
Economic Census for Business Frame”, “2014 Economic Census for Business Frame” and “2016
Economic Census for Business Frame”, Statistics Bureau, Ministry of Internal Affairs andCommunications, Ministry of Economy, Trade and Industry(2) Market analysis
Overall rent has been rising since the second half of 2015 and kept shifting stable, as shown in the figure below
of transition of rent index.
Also as shown in the figure below of transition of vacancy rate, it has shown a declining trend, approx. 3% or
below, since the first half of 2013. The Asset Manager believes that such stable demands for office space will bemaintained in the area.
<Shibuya-ku, Tokyo – Average Rent Index / Vacancy Rate >*Source:*Note:

Made by Japan Real Estate Institute based on the data disclosed by J-REIT (Offices in Shibuya-ku,
Tokyo, aged from 21 years to less than 30 years, with total floor area from 1,500 tsubo to less than
5,000 tsubo (excluding properties traded during the period above)).
1H refers to the first half (January to June) and 2H refers to the second half (July to December).

(3) Independent analysis by the Asset Manager
Number of Daily Average Passengers using Ebisu Station on the JR Line has been constantly increasing since thefiscal year 2012, and the Asset Manager believes that this trend will continue.
< Number of Daily Average Passengers of Ebisu Station >*Source:

Prepared by the Asset Manager based on “Number of Passengers by Station,” JR East

6

Moreover, Ebisu ranked as the No. 1 residential area in the “Questionnaire Which City You Want to Live(metropolitan area version) 2017.”*Source:“Questionnaire Which City You Want to Live (metropolitan area version) 2017”“Mansion Trend Research” by Major 7.
The questionnaire (Top 3) made to internet members of companies participating Major 7 (Sumitomo
Realty & Development Co., Ltd., DAIKYO INCORPORATED, TOKYU LAND CORPORATION, Tokyo
Tatemono Co., Ltd., Nomura Real Estate Development Co., Ltd., Mitsui Fudosan Residential Co., Ltd.
and Mitsubishi Jisho Residence Co., Ltd.). Ranking was made counting No. 1 as three points, No. 2 as
two points and No. 3 as one point.

Comprehensive evaluation by SAR: Evaluation on income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term andcan also expect income growth from increased rent, etc. into the future.
(1) Expected to gain stable revenue as a professional school occupies an entire building over the long term, and thetenant for this property is the same entity as the tenant for Amusement Media Gakuin Honkan, which SAR
acquired, Amusement Media Gakuin Honkan and Amusement Media Gakuin Shinkan are managed andoperated in a consistent and united manner.
(2) Very attractive area for companies as Ebisu area has a high concentration of companies, in particular such as
foreign companies, IT-related companies, and creative companies such as advertisement and content industries(3) Further development of the area is expected considering that it not only has characteristics of an office area,
but also has characteristics of residential and tourism areas such as Ebisu Garden Place

7

4.

Planned Seller Profile
Name
Location
Representative
Main businessdescription

GK El Toro
5-1-4 Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Shichirigahama
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership and disposition of beneficiary interest in trust of real estate
2. Acquisition, ownership and disposition of loan claims
3. Acquisition, ownership and disposition of corporate bonds, silent partnership interest andother securities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All business incidental to the above
100,000 yen
July 27, 2015

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel
There is no personnel relationship to report.
relationship
Business relationship There is no business relationship to report.
Related party or no
The Seller does not fall under the category of interested person, etc. as provided in the Act on
Investment Trusts and Investment Corporations (Act No.198 of 1951; including its
amendments) (the “Investment Trusts Act”), but falls under the category of interested party
prescribed in the “Rules on Transaction with Interested Parties”, which is the voluntary rules
set forth by the Asset Manager for preventing conflict of interests regarding its management of
SAR’s assets. Upon determination of the acquisition of the assets, the Asset Manager has
performed deliberation and approval in accordance with the voluntary rules.
(Note) “Interested parties” are (i) the Interested Parties of the Asset Manager as provided in Article 201, Paragraph 1 of theInvestment Trust Act, (ii) the shareholders and officers of the Asset Manager, (iii) SPCs which execute an investment
management agreement with the shareholders of the Asset Manager, (iv) SPCs a majority of investment of which are
made by the Asset Manager and the shareholders of the Asset Manager,(v)Star Asia Management Limited, Star Asia
Management Japan Limited, Star Asia Asset Management LLC, Star Asia Group LLC, Star Asia Asset Advisors Co., Ltd.,Star Asia Sogo Kaihatsu Co., Ltd., Malcolm F. MacLean IV, Taro Masuyama, as well as investment vehicles invested byfunds under management of Malcolm F. MacLean IV and Taro Masuyama (excluding minority investment) which (a)are located in Japan to own or acquire real estates or other investment assets and (b) own or acquire the investment
units of SAR. This applies to any other assets described below.

5.

Status of Parties Related to the Acquisition of the Property

Company name
Relationship withparties who havespecial interests

Acquisition
background andreason, etc.
Acquisition price
Acquisition period

Current owner, current trustee
GK El Toro

Previous owner, previous trustee
Other than the one in a relationship of special
interest

The company does not fall under the categoryof interested person, etc. as provided in theInvestment Trusts Act, but falls under the
category of interested party prescribed in the“Rules on Transaction with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose――
Omitted as the current owner has owned theproperty for over one year.
September 30, 2016

8

―
―

6.

Transaction with interested person, etc.
The Acquisitions are not transaction with interested person, etc., as provided in the Investment Trusts Act, buteach sellers in the asset acquisition falls under the category of interested party prescribed in the “Rules on
Transaction with Interested Parties,” which is the voluntary rules set forth by the Asset Manager for
preventing conflict of interests regarding its management of SAR’s assets. Upon deciding on the acquisition of
the asset, the Asset Manager has performed deliberation and approval in accordance with the voluntary rules.

7.

Overview of broker
None applicable.

8.

Schedule for the Transaction
January 24, 2019
February 1, 2019
(Planned Acquisition Date)

9.

Acquisition decided
Conclusion of a sale and purchase agreement of beneficiary interest in trust
Acquisition of beneficiary interest in trust (planned)
Payment of acquisition price (planned)
Conclusion of a master lease agreement and property management agreement(planned)

Settlement method
The acquisition prices of the Acquisition will be settled in lump sum payment on February 1, 2019.

10. Future outlook
Since the impact of the Acquisition on the forecast for operating results for the fiscal period ending January 2019
(August 1, 2018 to January 31, 2019) and July 2019 (February 1, 2019 to July 31, 2019) announced in “Financial
Report for Fiscal Period Ended July 31, 2018 (REIT)” dated September 13, 2018 is minimal, there are no changes
to the forecast.
<Reference Materials>
Reference Material 1:
Reference Material 2:
Reference Material 3:
Reference Material 4:

Portfolio list after the Transaction
Summary of earthquake risk analysis
Location maps/photos of exterior of property
The terms used in the table of Description of Asset to be Acquired* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

9

Reference Material 1<Real Estate, etc.>
Propertyno.

Portfolio list after the Transaction

Location

Property name(Note 1)

(Planned)acquisition
price(million yen)

Real estateappraisalvalue(million yen)

(Note 2)

(Note 3)

Investment
ratio (%)
(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

2,973

3,150

2.9

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-shi, Osaka

6,065

6,940

5.9

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,430

1.7

OFC-05Alphabet Seven

Minato-ku, Tokyo

1,725

2,390

1.7

OFC-06

Shibuya MK Building

2,042

2,890

2.0

OFC-08Asahi Building

6,320

7,090

6.2

OFC-09Hakata-eki East Place

Shibuya-ku, Tokyo
Kanagawa-ku, Yokohama-shi,
Kanagawa
Hakata-ku, Fukuoka-shi, Fukuoka

2,286

2,480

2.2

OFC-10Nihonbashi Hamacho Park Building

Chuo-ku, Tokyo

1,450

1,520

1.4

OFC-11

Amusement Media Gakuin Honkan

Shibuya-ku, Tokyo

2,580

2,660

2.5

OFC-12

Higashi-Kobe Center Building

Higashinada-ku, Kobe-shi, Hyogo

7,440

7,470

7.3

OFC-13

Amusement Media Gakuin Shinkan

Shibuya-ku, Tokyo

1,020

1,120

1.0

35,664

40,140

34.8

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,230

2.0

RSC-02

Urban Park Daikanyama

Shibuya-ku, Tokyo

6,315

7,500

6.2

RSC-05

Urban Park Namba

Naniwa-ku, Osaka-shi, Osaka

1,490

1,610

1.5

RSC-06

Urban Park Gokokuji

Toshima-ku, Tokyo

1,460

1,510

1.4

RSC-07

Urban Park Kashiwa

Kashiwa-shi, Chiba

1,186

1,190

1.2

RSC-08

Urban Park Ryokuchi Koen

Suita-shi, Osaka

1,550

1,570

1.5

RSC-09Urban Park Koenji

Suginami-ku, Tokyo

1,167

1,170

1.1

Residence subtotal

15,213

16,780

14.9

LGC-01

Iwatsuki Logistics

6,942

7,140

6.8

LGC-02

Yokohama Logistics

3,560

4,060

3.5

LGC-03

Funabashi Logistics

Iwatsuki-ku, Saitama-shi, Saitama
Kanagawa-ku, Yokohama-shi,
Kanagawa
Funabashi-shi, Chiba

7,875

8,650

7.7

LGC-04

Baraki Logistics

Ichikawa-shi, Chiba

4,700

4,930

4.6

LGC-05Tokorozawa Logistics

Tokorozawa-shi, Saitama

1,300

1,350

1.3

LGC-06

Funabashi Nishiura Logistics I

Funabashi-shi, Chiba

3,000

3,020

2.9

LGC-07

Funabashi Nishiura Logistics II

Funabashi-shi, Chiba

821

841

0.8

LGC-08

Matsubushi Logistics

Kitakatsushika-gun, Saitama

Office subtotal

Logistics subtotal

2,755

2,850

2.7

30,95332,841

30.2

HTL-01R&B Hotel Umeda East

Kita-ku, Osaka-shi, Osaka

2,069

2,310

2.0

HTL-02

Smile Hotel Namba

Naniwa-ku, Osaka-shi, Osaka

1,750

1,720

1.7

HTL-03

BEST WESTERN Tokyo Nishikasai

3,827

3,830

3.7

HTL-04

BEST WESTERN Yokohama

3,248

3,250

3.2

HTL-05

Hotel WBF Fukuoka Tenjin Minami

Edogawa-ku, Tokyo
Tsurumi-ku, Yokohama-shi,
Kanagawa
Chuo-ku, Fukuoka-shi, Fukuoka

1,970

1,990

1.9

HTL-06

GLANSIT AKIHABARA

Chiyoda-ku, Tokyo

2,500

2,520

2.4

HTL-07

Best Western Tokyo Nishikasai Grande Edogawa-ku, Tokyo

3,180

3,200

3.1

HTL-08

Hotel WBF Art Stay Namba

2,000

2,030

2.0

Naniwa-ku, Osaka-shi, Osaka
Hotel subtotal

20,54420,850

20.1

Real Estate etc. Total

102,374

110,611100.0(Note 1) ”Location” indicates the minimum independent administrative district of which each asset held by SAR as of10

today (the “Existing Assets (real estate, etc.)”) and Asset to be Acquired is located except for mezzanine loan
debt described in the <Mezzanine> below.
(Note 2) “(Planned) acquisition price” indicates, except for Minami-Azabu Shibuya Building, the sale and purchase pricestated in each sale and purchase contract for Existing Assets (real estate, etc.), and “planned acquisition price”
indicates the planned sale and purchase price stated in the sale and purchase agreement for Assets to be
Acquired, rounded to the nearest million yen. The sale and purchase price or the planned sale and purchaseprice does not include consumption tax, local consumption tax and various expenses required for theacquisition. As to Minami-Azabu Shibuya Building, since price for each property is not set in the sale andpurchase agreement, the total sale and purchase price of the property is divided proportionally based on theratio of appraisal value of the property at the time of acquisition and indicated as “(planned) acquisition
price.”(Note 3) “Real estate appraisal values” is the opinions of value stated in the real estate appraisal report with July 31,
2018 as the date of valuation for Existing Assets (real estate, etc.), July 1, 2018 as the date of valuation for
Amusement Media Gakuin Honkan, Higashi-Kobe Center Building, Hotel WBF Fukuoka Tenjin Minami, GLANSITAKIHABARA, Best Western Tokyo Nishikasai Grande, Hotel WBF Art Stay Namba acquired during the 6th Fiscal
Period, November 1, 2018 as the date of valuation for Assets to be Acquired Amusement Media Gakuin
Shinkan, each rounded to the nearest million yen.
(Note 4) “Investment ratio” is the ratio of (planned) acquisition price for each Existing Assets (real estate, etc.) / Assets
to be Acquired to the total of (planned) acquisition prices of each Existing Assets (real estate, etc.) / Assets to
be Acquired each rounded to the first decimal place.
(Note 5)Hakata-eki Higashi 113 Building as the anticipated transferred asset described in “Notice Concerning
Acquisition and Transfer (Asset Replacement) of Real Estate Beneficiary Interests in Trust” announced as of July23, 2018 are excluded.

Asset no.

Asset type

Asset name (overview)

Investment
ratio (%)
(Note 1)

MEZ-01

Mezzanine loan debt

MEZ-03

MEZ-04

CorporatebondBeneficiaryinterest in
trust

Loan claims

Haneda Hotel Development GK
Series 1 Item A Unsecured Bonds(Name: Star Asia Mezzanine Loan
Debt Investment Series 1)

48.4

Acquisition
Investment
price (million Interest rate Acquisition ratio to the(Note 3)
dateentire portfolioyen)(Note 2)(%)(Note 4)400(Note 5)

Base rate(Note 6)+5.0%

Subordinate beneficiary interestof trust with loan claims to GK
CHK as main asset in trust, whichholds trust beneficiary interest
with The Royal Garden Residence
Shirokanedai as main asset intrust(Name: Star Asia Mezzanine Loan
Debt Investment Series 3)
Subordinate part of nonrecourse
loan to GK DS Kaigan, whose
collateral asset shall be thebeneficiary interest in trust with
Premier Kaigan Building as themain asset in trust(Name: Star Asia Mezzanine Loan
Debt Investment Series 4)

Base rate
15.3

126

(Note 7)

+5.0%

Base rate
36.3

300

(Note 8)+5.0%

Mezzanine loan debt Total

100.0

826

－

October
31, 2017

0.4%

December
26, 2018

0.1%

January
30, 2019

0.3%

－

0.8%

<Mezzanine>(Note 1) “Investment ratio” is the acquisition price expressed as a percentage of the sum total of mezzanine loan debt.
(Note 2) “Acquisition price” is the sale and purchase price in the agreement (each do not include transfer-related costs), eachrounded down to the nearest million yen.

11

(Note 3) “Interest rate” includes the dividend from the invested mezzanine loan debt.
(Note 4) “Investment ratio to the entire portfolio” is the acquisition price of each mezzanine loan debt as a percentage of thesum total of (scheduled) acquisition price of the portfolio (including Existing Assets (real estate, etc.) and Asset to be
Acquired) including the mezzanine loan debt after the Transaction.
(Note 5) “400” means 400 million yen of total issued bonds amount of 701 million yen.
(Note 6) Base rate is JBA 3-month JPY TIBOR. The Japanese yen TIBOR can be confirmed on the website of the JBA TIBOR
Administration (http://www.jbatibor.or.jp/english/rate/). The same applies hereinafter. For each interest calculation
period, the rate announced at 11 a.m. (Tokyo time) two business days prior to the last day of the previous calculation
period of the relevant calculation period (the first date is two business days prior to the closing date of the senior loan
which will be made closing with the payment of the bond) will be applied as the base rate.
(Note 7) Base rate is JBA 3-month JPY TIBOR. For each interest calculation period, the rate announced at 11 a.m. (Tokyo time)
two business days prior to the last day of the previous calculation period of the relevant calculation period (the firstdate is December 21, 2018) will be applied as the base rate.
(Note 8) Base rate is JBA 3-month JPY TIBOR. For each interest calculation period, the rate announced at 11 a.m. (Tokyo time)
two business days prior to the last day of the previous calculation period of the relevant calculation period (the firstdate is two business days prior to the closing date) will be applied as the base rate.

12Reference Material 2
PropertyType
no.
OFC-01

OfficeResidence

Residence

Logistics

Hotel

Summary of earthquake risk analysis

Minami-Azabu Shibuya Building

PML
(%)
12.6

OFC-03

Honmachibashi Tower

2.7

OFC-04

Nishi-Shinjuku Matsuya Building

12.2

OFC-05Alphabet Seven

7.8

OFC-06

Shibuya MK Building

13.1

OFC-08Asahi Building

4.8

OFC-09Hakata-eki East Place

7.3

OFC-10Nihonbashi Hamacho Park Building

12.1

OFC-11

Amusement Media Gakuin Honkan

OFC-12

Higashi-Kobe Center Building

12.5
Higher bldg.: 4.7
Lower bldg.: 12.1

OFC-13

Amusement Media Gakuin Shinkan

RSC-01

Urban Park Azabujuban

RSC-02

Urban Park Daikanyama

RSC-05

Urban Park Namba

7.2
Existing bldg.: 12.7
Bldg. A: 10.2
Bldg. B: 7.9
13.2

RSC-06

Urban Park Gokokuji

9.2

RSC-07

Urban Park Kashiwa

RSC-08

Urban Park Ryokuchi Koen

RSC-09Urban Park Koenji

LGC-01

Iwatsuki Logistics

10.0
Apartment house: 8.8
Parking bldg.: 4.0
A bldg.: 6.7
B bldg.: 6.9
12.2

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics

LGC-05Tokorozawa Logistics

LGC-06

Funabashi Nishiura Logistics I

LGC-07

Funabashi Nishiura Logistics II

LGC-08

Matsubushi Logistics

10.8
Bldg. 1-A: 13.9
Bldg. 1-B: 14.4
Bldg. 2: 11.1
10.9
Warehouse: 9.7
Office: 3.8
Warehouse: 8.8
Office: 13.5
Office: 14.3
Factory: 15.9
Warehouse: 14.0
9.8

HTL-01R&B Hotel Umeda East

11.4

HTL-02

Smile Hotel Namba

12.3

HTL-03

BEST WESTERN Tokyo Nishikasai

13.3

HTL-04

BEST WESTERN Yokohama

7.9

HTL-05

Hotel WBF Fukuoka Tenjin Minami (Note 2)

7.8

HTL-06

GLANSIT AKIHABARA

7.5

HTL-07

Best Western Tokyo Nishikasai Grande

9.0

HTL-08

Hotel WBF Art Stay Namba

11.0

Entire portfolio (33 properties) (Note 2)

2.64

Property name

10.7

(Note 1) The figure in the entire portfolio column is the PML for the entire portfolio of the Existing Assets (real estate, etc.) /13

Assets to be Acquired (portfolio PML) based on “portfolio earthquake risk evaluation report” prepared by Deloitte
Tohmatsu Property Risk Solution Co., Ltd. dated January 16, 2019.

14

Reference Material 31.

OFC-13

Location maps/photos of exterior of property

Amusement Media Gakuin Shinkan

15

Reference Material 4a.

The terms used in the table of Description of Asset to be Acquired

Explanation on “Property no.” and “Type”
Property Number column and Type column: Each Asset to be Acquired by SAR is categorized by use as OFC (office),
RTL (commercial / retail), RSC (residential), LGC (logistics), or HTL (hotel). Then, for each category, serial numbers are
given to the assets in the category. In case of a property which could straddle two or more categories, it shall fallunder the category from which the property generates the largest sum of assumed rent income.

b. Explanation on “Overview of specified asset”(a) “Trust expiration date” column: Herein is shown the planned date of trust expiration as of the planned
acquisition date of February 1, 2019.
(b)"Planned Acquisition price" column: Herein is shown the planned acquisition price of the Asset to be Acquired as
described in the purchase agreement of the Asset to be Acquired (excluding consumption taxes, local consumption
taxes, and expenses necessary for the acquisition), after rounded to the nearest million yen.
(c) "Planned Acquisition Date" column: Herein is shown the planned MMDDYY of acquisition by SAR.
(d) "Location" column: Herein is shown the certified address in registry. "Indication of residential address" column:
Herein is shown the postal address. If postal address is not available, registered address of the property (if there are
two or more of them, one is selected) is shown.
(e) "Land" column:(i) "Type of ownership" column: Herein is shown the type of right(s) held by respective trustee of the Asset to be
Acquired.
(ii) "Site area" column: Herein is shown the land area as recorded in registry, unless otherwise noted. For thisreason, it possibly might not be equal to the actual.
(iii) "Use district" column: Herein is shown the type of use in accordance with Article 8, Paragraph 1 and Item 1 of
the Urban Planning Act (Act No.100 of 1968; including its amendments) (“Urban Planning Act”).
(iv) "Building coverage ratio" column and "Floor area ratio" column: Herein is shown the pertinent figure in eachcolumn in accordance with the relevant laws and regulations (the Building Standards Act, the Urban Planning Act,etc.).
(f) "Building" column:(i) "Type of ownership" column: Herein is shown the type of right(s) held by respective trustee of the Asset to be
Acquired.
(ii) "Total floor area" column: Herein is shown the sum total of floor areas as recorded in registry, unlessotherwise noted. For this reason, it possibly might not be equal to the actual figure.
(iii) "Use" column: Herein is shown the registered use or, if multiple uses are registered the representative use fromwhat are recorded in registry, it possibly might not be equal to the actual representative use. As for the building
with compartmentalized ownership, the type of use for the exclusively owned space by SAR is shown.
(iv) "Construction completion" column: Herein is shown MMDDYY of the representative building first built asrecorded in registry.
(v) "Structure and floors" column: Herein is shown the structure of the representative building, etc. as
recorded in registry. It possibly might not be equal to the actual structure. As for the building withcompartmentalized ownership, the structure and the number of floors for the entire building are shown.
(g) "Property management company" column: Herein is shown the name of the property management company(“PM Company”), to which property management operation is (planned to be) entrusted as of today.
(h) "Master lease company" column: Herein is shown the name of the master lease company, to which master lease
operation is (planned to be) entrusted, as of today.
c. Explanation on “Status of leasing”

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(a) "Total leasable area" column: Herein is shown the sum total of leasable floor areas of buildings of the Asset to be
Acquired (in case common space is also leased, area of that space is included in the total). The figure does not include
the area of the land lots leasable for parking and other purposes. Leasable area is counted not from registry data but
from area data as described in lease agreements or from area data as calculated by using the architectural
drawings of the buildings, so it possibly might not be equal to the total floor area as recorded inregistry.
Please note that the source data for the column represent what were provided by the current owner(s) of the Assetto be Acquired as of December 31, 2018.
(b) "Total leased area" column: Herein is shown the sum total of the floor areas to be leased as described in leaseagreement for each of the Asset to be Acquired as of December 31, 2018 out of the leasable area. The figure does notinclude the area of the land lots to be leased for parking and other purposes. Please note that the source data for thecolumn represent what were provided by the current owner(s) of the Asset to be Acquired as of December 31, 2018.
(c) "Occupancy rate" column: Herein is shown the percentage of total leased floor area over the total leasable floorarea of the Asset to be Acquired, after rounded to the first decimal place. Please note that the source data for thecolumn represent what were provided by the current owner(s) of the Asset to be Acquired as of December 31, 2018.
(d) "Total number of tenants" column: Herein is shown the total number of tenants as confirmed with the leaseagreements effective as of December 31, 2018 of the Asset to be Acquired. In case a specific tenant uses two or morerooms in one of the Asset to be Acquired, such tenant is counted only once for the asset. Also, in case a specifictenant signs lease agreements for rooms in two or more assets, the tenant shall be counted for each of the assets
separately. In case a pass-through type of master lease agreement (a lease agreement in which the master lessee
receives rent from end tenants and pay the same amount to the lessor) is executed for any of the Asset to be
Acquired, total number of the actual (end) tenants under the master lease agreement for the asset is shown herein.
(e) "Monthly rent (including common area maintenance fee)" column: Herein is shown the total of rent amounts as
described in lease agreements with respective tenants as of December 31, 2018 (confined to room rents;
excluding the charges for warehouses, sign boards and parking lots; but including the common service expenses; andfree rent cases as of the same date are not considered), after rounded to the nearest thousand yen.
(f) "Security and guarantee deposits" column: Herein is shown the sum total of refundable deposits as required inlease agreements effective as of December 31, 2018 (only for the tenants who actually were in respective rooms
at the time) of the Asset to be Acquired. In case master lease agreement is executed for any of the Asset to be
Acquired, sum total of refundable deposits as described in the individual lease agreements with respective (end)tenants is calculated to be shown in the column.
d. Explanation on “Special notations”
Special notation column: Herein is shown a description not only on the items considered material in relation to theinvolved rights and assumed uses but also on the appraisal value of, profitability of , and the other items consideredmaterial in relation to the disposability of the Asset to be Acquired.
e. Explanation on “Summary of real estate appraisal report”(a) "Summary of real estate appraisal report" column: Herein is shown a summary of respective appraisal report,
which was prepared either by Japan Real Estate Institute for the Asset to be Acquired.
(b) "Appraisal value" column: Herein is shown only the opinions on the value of respective property as of the date ofappraisal, expressed by the appraiser who did the appraisal of the property, in accordance with the Act on Real EstateAppraisal (Act No.152 of 1963; including its amendments) and commonly accepted appraisal standards for real estate
properties, etc.
(c) In case appraisal is once again undertaken for the same property, its result could be different from the previous
result because appraiser and/or appraisal method and/or appraisal timing is different. Also, it is requested to notethat any appraisal result for any property is not what guarantees or promises the actual tradability of the property at
the appraised value whether for right now or for any moment in the future.
(d) None of Japan Real Estate Institute who conducted appraisal is an interested party of neither SAR nor the AssetManager.
f.

Explanation on “Property information and acquisition highlight based on the survey by the Asset Manager”

17Herein is shown a description on the basic features and characteristics of each of the Asset to be Acquired as
prepared by the Asset Manager from the appraisal report, market reports and from their own research, as well as a
description on the background of its acquisition (if it is an acquisition from Sponsor Group, background story on theacquisition by the group is described; and if it is an acquisition from the Asset Manager’s own origination, backgroundstory on the sourcing is described). "<Sponsor fund>” means an acquisition from the Sponsor Group, “<externalacquisition>” means an acquisition from a third-party, “<negotiated transaction>” means an acquisition from a third
party on a negotiation basis, and “<warehousing>” means an acquisition utilizing the warehousing function of theSponsor Group, respectively.
g. Explanation on “Demographic analysis etc., market analysis and independent analysis by the Asset Manager”
Herein is shown the result of the Asset Manager’s own market analysis based on the information from various realestate-specialized information providers and other publicly available information.
h. Explanation on “Comprehensive evaluation by SAR”
Herein is shown SAR’s independent comprehensive evaluation based on f. and g. above.

18