April 20, 2016
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: 03-5425-1340

Notice Concerning Completion of Asset Acquisition
Star Asia Investment Corporation (“SAR”) announces that it today completed acquisition of the following 7
properties (the “Acquired Assets”) as stated in the securities registration statement submitted on March 16, 2016,as described below.
1. Overview of acquisition

OfficePropertyno.
(Note 1)
OFC-04

OfficeOfficeOffice

OFC-05
OFC-06
OFC-07

Office

OFC-08

Nishi-Shinjuku Matsuya
Building
Alphabet Seven
Shibuya MK Building
Hakata-eki Higashi 113
Building
Asahi Building

Residential
property
Residential
property

RSC-04

Urban Park Shin-Yokohama

RSC-05

Urban Park Namba

Type

Property nameLocation

Acquisition price(mn yen) (Note 2)

Shibuya-ku, Tokyo

1,763

Minato-ku, Tokyo
Shibuya-ku, Tokyo
Hakata-ku, Fukuoka-shi,
Fukuoka
Kanagawa-ku, Yokohamashi, Kanagawa
Kohoku-ku, Yokohamashi, Kanagawa
Naniwa-ku,
Osaka-shi,
Osaka

1,725
2,042
1,885

Total (7 properties)

6,320
2,528
1,490
17,753(Note 1) Please refer to “2. Description of Acquired Assets” below, for “Property no.”(Note 2) ”Acquisition price” indicates the sale and purchase price stated in the sale and purchase agreement for the acquired
asset, rounded to the nearest million yen. The sale and purchase price does not include consumption tax, local
consumption tax and various expenses required for the acquisition.

(1) Contract date(2) Acquisition date(3) Sellers(4) Acquisition financing(5) Settlement method: Please refer to “2. Description of Acquired Assets” below.
: April 20, 2016 (delivery and settlement date): Please refer to “3. Seller profile” later in this document.
: Proceeds from the issuance of new investment units for which resolution wasmade at the Board of Directors meeting of SAR held on March 16, 2016, April 1,2016 and April 11, 2016
:Payment of entire amount on acquisition date

2. Description of Acquired Assets
Overview of Acquired Assets is shown in the tables (1)-(7) below. A glossary of the terms used in the tables is
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

1

provided below.
a. Explanation on “Property no.” and “Type”
The Acquired Assets are categorized into office building (OFC), retail property (RTL), residential property(RSC), logistics property (LGC) and hotel (HTL) in accordance with its use and indicated as such in “Type.”“Property no.” is the number given to each property by category. When a property is a mixed-use facility
with multiple uses, it is categorized into the use for which the property’s total assumed rent revenue by
use is the greatest.
b. Explanation on “Overview of specified asset”“Acquisition price” is the sale and purchase price stated in the sale and purchase agreement for theAcquired Asset (excluding consumption tax, local consumption tax and various expenses required forthe acquisition), rounded to the nearest million yen.
“Date of conclusion of sales and purchase agreement” is the date on which SAR concluded the sale andpurchase agreement.
“Location” is the lot number stated in the real estate registry. “Indication of residential address” is theindication of residential address. In cases where there is no indication of residential address, it is thebuilding location in the real estate registry (if several, then one of the locations).
Explanation on “Land”(i) “Type of ownership” is the type of right held by the trustee of the Acquired Asset.
(ii) “Site area” is the land area stated in the real estate registry and may differ from the present state.
(iii) “Use district” is the type of use district listed in Article 8, Paragraph 1, Item 1 of the City PlanningAct.
(iv) “Building coverage ratio” and “Floor area ratio” are the figures provided in accordance with related
laws and regulations, such as the Building Standards Act and the City Planning Act.
Explanation on “Building"(i) “Type of ownership” is the type of right held by the trustee of the Acquired Asset.
(ii) “Total floor area” is the total floor area stated in the real estate registry and may differ from thepresent state.
(iii) “Use” is the major type of building out of types stated in the real estate registry and may differ
from the present state.
(iv) “Construction completion” is the date of new construction stated in the real estate registry for themain building.
(v) “Structure and floors” is the structure stated in the real estate registry for the main building andmay differ from the present state.
“Property Management company” is the property management company which is entrusted withproperty management.
“Master lease company” is the master lease company which is entrusted with master leasing.
c. Explanation on “Status of leasing”“Total leasable area” is the total floor area of the portions of buildings of each Acquired Asset which are
regarded as being available for leasing (including the area of co-owned portions, etc. if such is leased)
and does not include parking or the leasable area of land for other use. Since Total leasable area is not
the area stated in the real estate registry but the area calculated on the area stated in the leaseagreement or building drawing, etc., thus is not necessarily the same as the total floor area in the realestate registry. The figures are based on the information as of the end of November 2015, which wasprovided by the previous owners of the Acquired Assets.
“Total leased area” is the leased floor area indicated in the lease agreement for each Acquired Asset
as of the end of November 2015, out of the leasable area, and does not include parking or the leased
area of land for other use. The figures are based on the information as of the end of November 2015,

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Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

2which was provided by the previous owners of the Acquired Assets.

・ “Occupancy rate” is the ratio of the total leased area to total leasable area for each Acquired Asset,
rounded to the first decimal place. The figures are based on the information as of the end of November
2015, which was provided by the previous owners of the Acquired Assets.
“Total number of tenants” is the total number of tenants stated in the lease agreement for each
Acquired Asset as of the end of November 2015. If one tenant is leasing more than one rent space, thesaid tenant shall be counted as one in the case where the rented spaces are in the same Acquired Asset,
but will be counted as separate tenants and the sum total is indicated in the case where the rented
spaces cover more than one Acquired Asset. Furthermore, in cases where a pass-through type master
lease agreement has been concluded for the concerned Acquired Asset, the total number of end
tenants is stated.
“Monthly rent (including common area maintenance fee) is the total of monthly rents (includingcommon area maintenance fee, excluding use fees for warehouses, signboards, parking lots, etc.; any
free rent as of the end of November 2015 shall not be considered) indicated in the lease agreements
concluded with tenants which are effective as of the end of November 2015.
“Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits
required based on the lease agreement for the Acquired Asset as of the end of November 2015 (limited
to those occupied as of the said date). For the Acquired Assets, it is the sum total amount of tenantsecurity and guarantee deposits based on lease agreements concluded with end-tenants in cases
where a master lease agreement has been concluded.
d. Explanation on “Special notations”“Special notations” is concerning matters considered important in rights, use, etc. of the each Acquired
Asset, as well as matters considered important in consideration of the degree of impact on valuation,
profitability and disposability of the each Acquired Asset.
e. Explanation on “Summary of real estate appraisal report“Summary of real estate appraisal report” is based on the real estate appraisal report prepared by Daiwa
Real Estate Appraisal Co., Ltd. and Japan Real Estate Institute for each Acquired Asset.
”Appraisal value” is only an opinion regarding the price of the subject real estate on the date of value
provided by the real estate appraiser and such who made the appraisal pursuant to the Act on Real
Estate Appraisal (Act No. 152 of 1963, as amended), the Real Estate Appraisal Standards, etc.
Even if the same real estate is reappraised, the appraisal value may be indicated differently dependingon the real estate appraiser, the method of appraisal or the timing. In addition, the concerned realestate appraisal does not guarantee or assure the possibility of transaction at the appraised valued atpresent or in the future.
There is no special vested interest between Daiwa Real Estate Appraisal Co., Ltd. or Japan Real Estate
Institute, which performed the real estate appraisal, and SAR or the Asset Manager.
f. Explanation on “Property information and acquisition highlight based on the survey by the Asset Manager”
In “Property information and acquisition highlight based on the survey by the Asset Manager,” the AssetManager describes basic nature, features, etc. of the property referencing the appraisal report and also
considering the result of survey it has conducted on its own, as well as the background to the acquisition(for properties acquired from the Star Asia Group, the background to the acquisition by the Star Asia Group;and for properties acquired with sales information which the Asset Manager obtained on its own, thebackground to the said acquisition).
g. Explanation on “Comprehensive evaluation by SAR”
“Comprehensive evaluation by SAR” is SAR’s own evaluation.
(1) OFC-04 Nishi-Shinjuku Matsuya Building

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Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

3

Property no.

OFC-04

Property nameNishi-Shinjuku Matsuya
Building

Type

TrusteeMizuho Trust & Banking Co., Ltd.

OfficeOverview of specified asset
Type of specified asset

Beneficiary interest in
trust

Acquisition price

1,763 million yen

Appraisal value
Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage ratio
Type of
Building
ownership
Total floor area

Date of conclusion ofsale and purchaseagreement
2,120 million yen
Seller
4-31-6 Yoyogi, Shibuya-ku, Tokyo and other

March 11, 2016
GK Hobie

4-31-6 Yoyogi, Shibuya-ku, Tokyo
Approximately 3-minute walk from Hatsudai Station on the Keio New Line
Surface right589.94m2

Use district

Commercial district

80%

Floor area ratio

700%

5,117.80m2

Use

May 28, 1987

Structure and floors

Office, store, parking
Steel-framed reinforced concrete
structure
1 floor below ground / 9 floors above
groundCollateral
Property managementcompany
Status of leasing

None
Shimizu Comprehensive
Development

Master lease
company

Total leasable area

3,512.19m2

Total leased area

3,097.44m2

Occupancy rate

88.2%

Construction
completion

Proprietary ownership

Total number oftenants
Monthly rent(including common
area maintenance
fee)
Security andguarantee deposits

SAR

8
11,557 thousand yen

78,283,032 yen

Special notations
Not applicable.
(Unit: yen)
Summary of real estate appraisal report
Property nameNishi-Shinjuku Matsuya Building
Appraisal value
2,120,000,000
Appraisal firm
Daiwa Real Estate Appraisal Co., Ltd.
Date of value
November 1, 2015
Item
Details
Description, etc.
Estimated by emphasizing the indicated value by DCF
Indicated value by income approach
2,120,000,000 method and verifying with the indicated value by direct
capitalization method.
Indicated value by direct capitalization
2,170,000,000
method(1) Operating revenue ((a)−(b))
177,507,779(a) Gross potential income
189,640,920
Recorded taking into consideration the average vacancy(b) Vacancy loss, etc.
12,133,141 rate in the area, competitiveness of the subject realestate, etc.
(2) Operating expenses
67,950,111
Maintenance and management
Recorded by judging the scheduled agreement fee to be
9,892,600
fee
appropriate.
Appraised by reference to the level of similar real estate
Utilities expenses
20,661,000
and historical data.

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

4

Repair expenses

2,904,500

Property Management fee

3,282,634

Tenant leasing cost, etc.

1,380,377

Property taxes
Insurance premium

6,391,700
560,000

Other expenses

22,877,300(3) Net operating income(NOI=(1)−(2))(4) Financial interests on deposits

Appraised based on the ER by reference to the level ofrepair expenses of similar real estate.
Recorded based on the scheduled agreement.
Recorded the amount equivalent to 1.5 month rent to be
paid by newly occupying tenant by reference to the levelof similar real estate.
Appraised by reference to the actual data.
Appraised by reference to the level of similar real estate.
Appraised by reference to the actual data of discretionary
reserve, land rent and road occupying fee.

109,557,668

1,721,260 Appraised investment return as 2.0%.
Appraised based on the ER by reference to the level of(5) Capital expenditures
13,727,475
renewal expenses of similar real estate.
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
97,551,453
Appraised by comprehensively taking into account the(7) Capitalization rate
4.5%
competitiveness of the subject real estate, etc.
Indicated value by DCF method
2,100,000,000
Appraised by comprehensively taking into account the
Discount rate
4.3%
competitiveness of the subject real estate, etc.
Terminal capitalization rate
4.7% Appraised by reflecting aging risk, market trend risk, etc.
Estimated by making depreciation adjustment to
Indicated value by cost approach
1,660,000,000
replacement cost.
Ratio of land
75.1%
Ratio of building
24.9%
Determined using the indicated value by income approach
Matters considered in reconciliation of indicated values andas standard and by reference to the indicated value by cost
determination of appraisal value
approach.
Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
A multi-tenant office building located an approximate 3-minute walk from Hatsudai Station on the Keio Line, theproperty offers excellent transportation convenience, since in addition to access by train, the area is served bymultiple bus routes.
In addition to the series of retail/office skyscrapers lining Koshu-Kaido street, the area is close to Shinjuku sub-centeras well as nearby large-scale buildings such as Tokyo Opera City and the head office of NTT East therefore having areasonably high concentration of office buildings.
Along with a stately exterior, the building features a convenience store on the first floor and is equipped with standard
facilities typically sought by tenants, fair demand from affiliated companies of tenants of large-scale buildings locatedin the surrounding area can be expected.
(2) Acquisition highlight
SAR acquired, with the support of the Sponsor, the property (real estate, etc.) which Star Asia Group had acquired byacquiring real estate-related debts and exercising the accompanied authority to give instructions (acquisition throughspecial situation investment).

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Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the Nishi-Shinjuku area, which has a high concentration of office buildings.
(2) In addition to access by train, the area is well served by bus routes and provides convenient access to various locations
within central Tokyo.
(3) The property is expected to attract fair demand from affiliated companies of tenants of large-scale buildings located in
Shinjuku sub-center or its surrounding area.

(2) OFC-05

Alphabet Seven

Property no. OFC-05
Overview of specified asset
Type of specified asset
Acquisition priceAppraisal value
Location
Indication of residential address

Property name

Alphabet Seven

Beneficiary interest in trust

Trustee
Date of conclusion of
1,725 million yen
sale and purchaseagreement
2,240 million yen
Seller7-327-1 Akasaka, Minato-ku, Tokyo and other
7-6-38 Akasaka, Minato-ku, Tokyo

Type

OfficeMizuho Trust & Banking Co., Ltd.
March 11, 2016
GK Hobie

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

5

Nearest station
Land
Type of ownership
Site area

Building

Building coverage
ratioType of ownership

Approximately 5-minute walk from Akasaka Station on the Tokyo Metro Chiyoda Line
Proprietary ownership
Category I Mid-to-high-rise
1,286.45m2
Use district
exclusive residential district
60%

Floor area ratio

Proprietary ownership

Total floor area

4,132.80m2

Use

Construction
completion

January 6, 1990

Structure and floors

Collateral
Property management company

300%

None
Shimizu Comprehensive
Development

Master lease company

Office, apartment complex,
parking
Reinforced concrete
structure
1 floor below ground / 6
floors above ground
SAR

Status of leasing
Total leasable area

2,464.59m2

Total leased area

2,190.80m2

Occupancy rate

88.9%

Total number oftenants
Monthly rent(including common
area maintenance fee)
Security andguarantee deposits

79,855 thousand yen
91,523,732 yen

Special notations
Since the use district of the building has been changed after the construction, a building for office use cannot be
constructed upon rebuilding.
(Unit: yen)
Summary of real estate appraisal report
Property name
Alphabet Seven
Appraisal value
2,240,000,000
Appraisal firm
Japan Real Estate Institute
Date of value
November 1, 2015
Item
Details
Description, etc.
Estimated by correlation of the indicated value by
Indicated value by income approach
2,240,000,000 direct capitalization method and the indicatedvalue by DCF method.
Indicated value by direct capitalization
2,270,000,000
method(1) OperaOng revenue ((a)−(b))
139,023,000(a) Gross potential income
152,219,000
Appraised taking into consideration the occupancy(b) Vacancy loss, etc.
13,196,000 status of the subject real estate and similar realestate and future supply/ demand trend.
(2) Operating expenses
38,095,000
Appraised by reference to the agreement terms
Maintenance and management fee
7,800,000
and the level of similar real estate.
Appraised by reference to actual data and theUtilities expenses
11,000,000
level of similar real estate.
Appraised by reference to costs for restoring toRepair expenses
2,479,000 original state, repair and renewal expenses in the
ER and the level of similar real estate.
Appraised by reference to the agreement terms
Property Management fee
1,890,000
and the level of similar real estate.
Appraised by reference to the agreement terms
Tenant leasing cost, etc.
3,062,000
and the level of similar real estate.
Property taxes
11,528,000 Appraised based on actual data.
Appraised by reference to the level of similar real
Insurance premium
336,000
estate.
Other expenses
0 None(3) Net operaOng income (NOI=(1)−(2))
100,928,000(4) Financial interests on deposits
1,750,000 Appraised investment return as 2.0%.
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

6

Appraised by reference to repair and renewal
5,030,000 expenses in the ER and the level of similar realestate.
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
97,648,000
Appraised by comprehensively taking into account(7) Capitalization rate
4.3%
the competitiveness of the subject real estate, etc.
Indicated value by DCF method
2,200,000,000
Appraised by comprehensively taking into accountDiscount rate
4.1%
the competitiveness of the subject real estate, etc.
Appraised by reflecting aging risk, market trend
Terminal capitalization rate
4.5%
risk, etc.
Estimated by multiplying the total of the land
Indicated value by cost approach
2,440,000,000 price and the building price by marketability
correction rate.
Ratio of land
89.7%
Ratio of building
10.3%
Employed the indicated value by income approach
Matters considered in reconciliation of indicated values andwith the indicated value by cost approach only as
determination of appraisal valuereference.
(5) Capital expenditures

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
Located an approximate 5-minute walk from Akasaka Station on the Tokyo Metro Chiyoda Line, the property is a multitenant office/residential building in the Akasaka area, which offers excellent convenience and access to central Tokyo.
The surrounding area has a high concentration of office buildings, such as the TBS building and Akasaka Biz Tower, and isalso a thriving commercial district with many restaurants and service-related businesses.
A medium-scale office/residential building with an elegant exterior, the property enjoys a strong competitive advantage
as a residence thanks to the characteristics of the area, and in terms of office space, fair demand from affiliatedcompanies of tenants of the TBS building and Akasaka Biz Tower can be anticipated.
(2) Acquisition highlight
SAR acquired, with the support of the Sponsor, the property (real estate, etc.) which Star Asia Group had acquired byacquiring real estate-related debts and exercising the accompanied authority to give instructions (acquisition throughspecial situation investment).
Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the Akasaka area, one of central Tokyo’s leading office/commercial districts.
(2) The property is expected to attract fair demand from affiliated companies of tenants of the TBS building, Akasaka Biz
Tower, etc.
(3) Thanks to the popularity of the area, location conditions, etc., there is also strong demand for the residential units ofthe property.

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(3) OFC-06

Shibuya MK Building

Property
Shibuya MK Building
Type
OfficenameOverview of specified asset
Beneficiary
Mitsubishi UFJ Trust and Banking
Type of specified asset
Trusteeinterest in trust
Corporation
Date of conclusion of
Acquisition price
2,042 million yen sale and purchase
March 11, 2016agreement
Appraisal value
2,150 million yen Seller
GK Hobie
Location
3-3-5 Shibuya, Shibuya-ku, Tokyo and other
Indication of residential
3-3-2 Shibuya, Shibuya-ku, Tokyo
address
Nearest station
Approximately 7-minute walk from Shibuya Station on the JR Yamanote Line
Type ofLand
Proprietary ownership (Partially leasehold) (Note)ownership
Site area
620.42m2 (Note)
Use district
Commercial district
Building
80%
Floor area ratio
500%
coverage ratio
Type of
Building
Proprietary ownershipownership
Property no.

OFC-06Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

7

Total floor
area
Construction
completion

1,982.86m2

Use

OfficeJuly 31, 1993

Structure and floors

Reinforced structure
6 floors above ground

Collateral
Property managementcompany
Status of leasing
Total leasable area

None
Best Property
Corporation

Master lease company

SAR
5

Total leased area

1,612.88m2

Occupancy rate

100.00%Total number of tenants
Monthly rent(includingcommon area
maintenance fee)
Security and guarantee
deposits

1,612.88m2

8,565 thousand yen
51,197,271 yen

Special notations
Not applicable.
(Note) 2.62 m2 out of the site area indicated is leased from the leaseholder of the adjacent land.
(Unit: yen)
Summary of real estate appraisal report
Property nameShibuya MK Building
Appraisal value
2,150,000,000
Appraisal firm
Japan Real Estate Institute
Date of value
November 1, 2015
Item
Details
Description, etc.
Estimated by correlation of the indicated value by direct
Indicated value by income approach
2,150,000,000 capitalization method and the indicated value by DCF
method.
Indicated value by direct capitalization
2,180,000,000
method(1) OperaOng revenue ((a)−(b))
123,678,000(a) Gross potential income
128,936,000
Appraised taking into consideration the occupancy status(b) Vacancy loss, etc.
5,258,000 of the subject real estate and similar real estate andfuture supply/ demand trend.
(2) Operating expenses
28,680,000
Maintenance and management
Appraised by reference to the agreement terms and the6,320,000
feelevel of similar real estate.
Appraised by reference to actual data and the level of
Utilities expenses
9,000,000
similar real estate.
Appraised by reference to repair and renewal expenses
Repair expenses
1,809,000
in the ER and the level of similar real estate.
Appraised by reference to the agreement terms and theProperty Management fee
2,036,000
level of similar real estate.
Appraised by reference to the agreement terms and theTenant leasing cost, etc.
815,000
level of similar real estate.
Property taxes
8,375,000 Appraised based on actual data.
Insurance premium
161,000 Appraised by reference to the level of similar real estate.
Other expenses
164,000 Recorded land rent paid.
(3) Net operating income
94,998,000(NOI=(1)−(2))(4) Financial interests on deposits
1,114,000 Appraised investment return as 2.0%.
Appraised by reference to repair and renewal expenses(5) Capital expenditures
4,440,000
in the ER and the level of similar real estate.
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
91,672,000
Appraised by comprehensively taking into account the(7) Capitalization rate
4.2%
competitiveness of the subject real estate, etc.
Indicated value by DCF method
2,110,000,000
Appraised by comprehensively taking into account the
Discount rate
4.0%
competitiveness of the subject real estate, etc.
Terminal capitalization rate
4.4% Appraised by reflecting aging risk, market trend risk, etc.
Estimated by multiplying the total of the land price andIndicated value by cost approach
1,970,000,000
the building price by marketability correction rate.
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

8

Ratio of land
90.2%
Ratio of building
9.8%
Matters considered in reconciliation of indicated values andEmployed the indicated value by income approach withdetermination of appraisal value
the indicated value by cost approach only as reference.
Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
Located an approximate 7-minute walk from Shibuya Station on the JR, Tokyo Metro, and private railway lines, theproperty is a multi-tenant office building in the Shibuya area, which offers excellent access and convenience.
As one of Japan’s leading commercial districts, the Shibuya area is an extremely busy shopping center; it has also
become known as an office district in recent years, due to companies in fields such as IT and fashion moving into thearea, and it is expected to develop even more in future thanks to the renovation of Shibuya Station and construction ofmultiple skyscrapers near the station.
In addition to a stately exterior, the property fully meets the standards typically sought by tenants when it comes tofacilities, including individual air-conditioning and raised floors, which make it appealing to tenant companies from awide range of fields.
(2) Acquisition highlight
SAR acquired, with the support of the Sponsor, the property which Star Asia Group had acquired through a domestic
brokerage company on a negotiation basis.
Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the Shibuya area, one of Japan’s leading commercial districts(2) The property, located in Shibuya area, has a strong appeal for fashion and IT-related companies.
(3) Following the completion of the Shibuya Station area redevelopment project, further development is expected going
forward.

－－－－(4) OFC-07

Hakata-eki Higashi 113 Building

Property
nameOverview of specified asset
Property no.

OFC-07

Hakata-eki Higashi 113 Building

TypeType of specified asset

Trust beneficiaryright

Mitsubishi UFJ Trust and Banking
Corporation

Acquisition price

1,885 million yen

Appraisal value
Location
Indication of residential address
Nearest station
Land
Type of ownership
Site area
Building coverage
ratio
Building
Type of ownership
Total floor area
Construction
completion

Date of conclusion ofsale and purchase(Note)
agreement
1,920 million yen
SellerWest Wood Capital Co., Ltd.
1-231 Hakataeki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka and other1-13-9 Hakataeki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka
Approximately 5-minute walk from Hakata Station on the JR and Fukuoka City Subway lines
Proprietary ownership
950.75m2
Use district
Commercial district80%

3,600.44m2

Occupancy rate

100.0%

Floor area ratio

Proprietary ownership
4,888.70m2(includingUse
17.25m2 pumproom)
October 3, 1987

Collateral
None
Property management company
OHI Co., Ltd.
Status of leasing
Total leasable area
3,600.44m2
Total leased area

Trustee

OfficeStructure and floors

500%

OfficeSteel-framed reinforced concrete
structure
8 floors above ground
SAR

Master lease company
Total number of tenants
Monthly rent(includingcommon area
maintenance fee)
Security and guarantee
deposits

33
10,360 thousand yen
87,614,847 yen

Special notations
Not applicable.
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

9

(Note) SAR succeeded, on April 20, 2016, the status of a buyer under the beneficiary interest in trust sale and purchaseagreement dated December 25, 2015, which was concluded between the seller and GK SAPR2 belonging to the Sponsor
Group.
(Unit: yen)
Summary of real estate appraisal report
Property nameHakata-eki Higashi 113 Building
Appraisal value
1,920,000,000
Appraisal firm
Daiwa Real Estate Appraisal Co., Ltd.
Date of value
November 1, 2015
Item
Details
Description, etc.
Estimated by emphasizing the indicated valueby DCF method and verifying with the
Indicated value by income approach
1,920,000,000
indicated value by direct capitalization
method.
Indicated value by direct capitalization method
2,020,000,000(1) OperaOng revenue ((a)−(b))
161,138,824(a) Gross potential income
170,394,552
Recorded taking into consideration the
average vacancy rate in the area,(b) Vacancy loss, etc.
9,255,728
competitiveness of the subject real estate,etc.
(2) Operating expenses
50,453,650
Recorded by judging the scheduled
Maintenance and management fee
11,400,000
agreement fee to be appropriate.
Appraised by reference to the level of similar
Utilities expenses
14,321,000
real estate and historical data.
Appraised based on the ER by reference toRepair expenses
8,611,083 the level of repair expenses of similar realestate.
Recorded based on the scheduled
Property Management fee
3,781,114
agreement.
Recorded the amount equivalent to 1 month
Tenant leasing cost, etc.
964,253 rent to be paid by newly occupying tenant byreference to the level of similar real estate.
Property taxes
10,172,200 Appraised by reference to the actual data.
Appraised by reference to the level of similar
Insurance premium
553,000
real estate.
Appraised by reference to the actual data of
Other expenses
651,000
other miscellaneous expenses.
(3) Net operaOng income (NOI=(1)−(2))
110,685,174(4) Financial interests on deposits
1,915,855 Appraised investment return as 2.0%.
Appraised based on the ER by reference to(5) Capital expenditures
11,807,191 the level of renewal expenses of similar realestate (taking into consideration the CM fee).
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
100,793,838
Appraised by comprehensively taking into
(7) Capitalization rate
5.0% account the competitiveness of the subject
real estate, etc.
Indicated value by DCF method
1,870,000,000
Appraised by comprehensively taking into
Discount rate
4.8% account the competitiveness of the subject
real estate, etc.
Appraised by reflecting aging risk, market
Terminal capitalization rate
5.2%
trend risk, etc.
Estimated by making depreciation
Indicated value by cost approach
1,980,000,000
adjustment to replacement cost.
Ratio of land
77.9%
Ratio of building
22.1%
Determined using the indicated value by
Matters considered in reconciliation of indicated values and determination income approach as standard and byof appraisal valuereference to the indicated value by cost
approach.
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

10Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
Located an approximate 5-minute walk from Hakata Station on the JR and Fukuoka City Subway lines, the property is amulti-tenant office building in the Hakata-eki-higashi area, which has one of the highest concentrations of officebuildings in Fukuoka.
Thanks to its favorable location right next to Hakata Station, the area is a popular business district with many officebuildings and city hotels. Furthermore, due to the impact of the Hakata Station area redevelopment project, it isexpected to develop even more as a commercial and office district going forward.
The office building has an elegant appearance, enhanced by renovations to the entrance hall and common areas oneach floor in 2012, and it also fully meets the standards typically sought by tenants with regard to various facilities,
including square-shaped column-free space (in some areas), individual air-conditioning, and raised floors, whichmakes it appealing to tenant companies from a wide range of fields.
(2) Acquisition highlight
SAR acquired the property on a negotiation basis through its unique relationship.
Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the Hakata-eki-higashi area where there is a fair concentration of office buildings.
(2) Thanks to the renovated entrance hall and common areas on each floor, it appeals to tenant companies from a wide
range of fields.
(3) With the completion of the Hakata Station area redevelopment project, further development is expected going forward.

－
－
－
－

(5) OFC-08

Asahi Building

Property no. OFC-08
Property name
Overview of specified asset
Beneficiary interest
Type of specified asset
in trust
Acquisition priceAppraisal value
Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion

Type

OfficeTrustee

Sumitomo Mitsui Trust Bank, Limited

Date of conclusion of sale(Note 1)and purchase agreement
6,370 million yen
SellerGK Fireball33-8 Tsuruya-cho, Kanagawa-ku, Yokohama-shi, Kanagawa and other

6,320 million yen

3-33-8 Tsuruya-cho, Kanagawa-ku, Yokohama-shi, Kanagawa
Approximately 8-minute walk from Yokohama Station on the JR Tokaido Main Line
Proprietary ownership
1,906.86m2

Use district

Commercial district

80%

Floor area ratio

500% (Note 2)

12,353.83m2

Use

Store, office, parking

November 25, 1994

Structure and floors

Steel-framed, Steel-framed reinforced
concrete and Reinforced concrete structure
2 floors below ground / 12 floors above
groundMaster lease company

SAR

Total number of tenants
Monthly rent(includingcommon area
maintenance fee)
Security and guarantee
deposits

18

Proprietary ownership

Property managementcompanyNone
Sanko Office
Management, Co.,Ltd.

Status of leasing
Total leasable area

8,684.30m2

Total leased area

8,101.80m2

Occupancy rate

93.3%

Collateral

Asahi Building

29,081 thousand yen
219,720,540 yen

Special notations
Not applicable.
(Note 1) SAR succeeded, on April 20, 2016, the status of a buyer under the beneficiary interest in trust sale and purchaseagreement dated January 22, 2016, which was concluded between the seller and GK SAPR2 belonging to the Sponsor
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

11

Group.
(Note 2) Floor area ratio with the mitigation due to public open space is 636.10%.
(Unit: yen)
Summary of real estate appraisal report
Property nameAppraisal value
Appraisal firm
Date of value

Asahi Building
6,370,000,000
Japan Real Estate InstituteNovember 1, 2015
Details
Description, etc.
Estimated by correlation of theindicated value by direct
6,370,000,000
capitalization method and theindicated value by DCF method.
6,400,000,000
427,972,000
444,229,000
Appraised taking into
consideration the occupancy
16,257,000 status of the subject real estateand similar real estate and future
supply/ demand trend.
119,542,000
Appraised by reference to the
27,500,000 agreement terms and the levelof similar real estate.
Appraised by reference to actual
38,000,000 data and the level of similar realestate.
Appraised by reference to repair
and renewal expenses in the ER
13,446,000
and the level of similar realestate.
Appraised by reference to the4,708,000 agreement terms and the levelof similar real estate.
Appraised by reference to the2,610,000 agreement terms and the levelof similar real estate.
32,004,000 Appraised based on actual data.
Appraised by reference to the
1,260,000
level of similar real estate.
14,000 Recorded joint use fees, etc.
308,430,000
Appraised investment return as
4,877,000
2.0%.
Appraised by reference to repair
and renewal expenses in the ER
31,690,000
and the level of similar realestate.
281,617,000
Appraised by comprehensively
taking into account the
4.4%competitiveness of the subject
real estate, etc.
6,340,000,000
Appraised by comprehensively
taking into account the
4.1%
competitiveness of the subject
real estate, etc.
Appraised by reflecting aging
4.5%
risk, market trend risk, etc.

Item
Indicated value by income approach
Indicated value by direct capitalization method(1) OperaOng revenue ((a)−(b))(a) Gross potential income(b) Vacancy loss, etc.
(2) Operating expenses
Maintenance and management fee
Utilities expenses

Repair expenses

Property Management fee
Tenant leasing cost, etc.
Property taxes
Insurance premium
Other expenses(3) Net operaOng income (NOI=(1)−(2))(4) Financial interests on deposits(5) Capital expenditures(6) Net cash ﬂow (NCF=(3)+(4)−(5))(7) Capitalization rate
Indicated value by DCF method
Discount rate
Terminal capitalization rate

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

12

Estimated by multiplying thetotal of the land price and theIndicated value by cost approach
5,470,000,000
building price by marketability
correction rate.
Ratio of land
70.1%
Ratio of building
29.9%
Employed the indicated value by
Matters considered in reconciliation of indicated values and determination of appraisal income approach with thevalue
indicated value by cost approach
only as reference.
Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
A multi-tenant office building located an approximate 8-minute walk from Yokohama Station on the JR Tokaido Main Line.
The Yokohama Station West Exit area, where the property is situated, is one of Kanagawa’s leading commercial
districts, with a high level of commercial traffic, and it is also known as one of Yokohama’s most popular office
districts, along with the Minato-Mirai area. With multiple skyscraper complexes being constructed near Yokohama
Station, it is expected that the area will develop even more going forward as one of Japan’s leading commercial andoffice districts.
In addition to a stately exterior, the property fully meets the standards typically sought by tenants when it comes tofacilities, including individual air-conditioning and raised floors which make it appealing to tenant companies from awide range of fields.
(2) Acquisition highlight
SAR acquired, with the support of the Sponsor, the property which Star Asia Group had acquired on a negotiationbasis using the information obtained from domestic financial institutions.
Comprehensive evaluation by SAR: Evaluation of income stability and growth
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term and can also
expect income growth from increased rent, etc. into the future.
(1) Located in the Yokohama Station West Exit area where there is a concentration of commercial and office buildings.
(2) The floors can be subdivided into smaller spaces, enabling the building to flexibly accommodate demand from branch
offices of companies in various fields.
(3) With the completion of the Yokohama Station area redevelopment project and the Excite Yokohama 22 project, further
development is expected going forward.

－
－
－
－

(6) RSC-04

Urban Park Shin-Yokohama

Property no.
RSC-04
Overview of specified asset

Property name

Type of specified asset

Beneficiary interest in trust

Acquisition price

2,528 million yen

Appraisal value
Location
Indication of residential
address
Nearest station
Land

Building

Type ofownership
Site area
Building
coverage ratio
Type ofownership
Total floor
area
Construction
completion

Collateral
Property managementcompany
Status of leasing

Urban Park Shin-Yokohama
TrusteeType

Residential property

Mitsubishi UFJ Trust andBanking Corporation

Date of conclusion ofsale and purchase
March 11, 2016agreement
2,540 million yen
SellerGK SAPR1 (Note 1)
2-18-10 Shin-Yokohama, Kohoku-ku, Yokohama-shi, Kanagawa and other
2-18-5 Shin-Yokohama, Kohoku-ku, Yokohama-shi, Kanagawa

Approximately 9-minute walk from Shin-Yokohama Station on the JR Tokaido Shinkansen
and Yokohama Line and other
Proprietary ownership
862.00m2

Use district

Commercial district

80%

Floor area ratio

600%(Note 2)

Proprietary ownership
5,171.12m2

Use

May 30, 2009

Structure and floors

Apartment complex, parking,store
Steel-framed structure
1 floor below ground / 10 floors
above ground

None
Haseko Livenet Inc.

Master lease company

Haseko Livenet Inc.

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

13

Total leasable area

3,989.11m2

Total leased area

3,925.70m2

Occupancy rate

98.4%

Total number oftenants
Monthly rent(includingcommon area
maintenance fee)
Security and guarantee
deposits

75
11,536 thousand yen

7,628,000 yen

Special notations
Not applicable.
(Note 1) This is a property for which SAR requested warehousing from the Sponsor. There is no separate compensation in linewith such request.
(Note 2) Floor area ratio will be 597% due to the width of the frontal road.
(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Shin-Yokohama
Appraisal value
2,540,000,000
Appraisal firm
Daiwa Real Estate Appraisal Co., Ltd.
Date of value
November 1, 2015
Item
Details
Description, etc.
Estimated by emphasizing the indicated value by DCF
Indicated value by income approach
2,540,000,000 method and verifying with the indicated value by direct
capitalization method.
Indicated value by direct capitalization
2,590,000,000
method(1) OperaOng revenue ((a)−(b))
153,920,812(a) Gross potential income
161,811,649
Recorded taking into consideration the average vacancy(b) Vacancy loss, etc.
7,890,837 rate in the area, competitiveness of the subject realestate, etc.
(2) Operating expenses
29,091,508
Maintenance and management
Recorded by judging the scheduled agreement fee to be
6,432,000
fee
appropriate.
Appraised by reference to the level of similar real estate
Utilities expenses
1,611,192
and historical data.
Appraised by reference to the level of repair expenses ofRepair expenses
3,344,406
similar real estate.
Property Management fee
2,998,518 Recorded based on the scheduled agreement.
Recorded the amount equivalent to 1.5 month rent to be
Tenant leasing cost, etc.
4,252,112 paid by newly occupying tenant by reference to the levelof similar real estate.
Property taxes
9,345,800 Appraised by reference to the actual data.
Insurance premium
507,480 Appraised by reference to the level of similar real estate.
Appraised by reference to the actual data of
Other expenses
600,000 maintenance and management fee and discretionary
reserve.
(3) Net operating income
124,829,304(NOI=(1)−(2))(4) Financial interests on deposits
275,999 Appraised investment return as 2.0%.
Appraised based on the ER by reference to the level of(5) Capital expenditures
3,396,583
renewal expenses of similar real estate.
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
121,708,720
Appraised by comprehensively taking into account the(7) Capitalization rate
4.7%
competitiveness of the subject real estate.
Indicated value by DCF method
2,520,000,000
Appraised by comprehensively taking into account the
Discount rate
4.5%
competitiveness of the subject real estate
Terminal capitalization rate
4.9% Appraised by reflecting aging risk, market trend risk, etc.
Estimated by making depreciation adjustment to
Indicated value by cost approach
2,530,000,000
replacement cost.
Ratio of land
55.0%
Ratio of building
45.0%

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

14

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

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
A residential building for singles located an approximate 9-minute walk from Shin-Yokohama Station on the JR Tokaido
Shinkansen Line and Yokohama Line.
The property offers excellent convenience for everyday living, with many retail stores and restaurants clustered aroundShin-Yokohama Station, and is also located in a high-quality residential environment adjacent to Shin-Yokohama Park,
home of International Stadium Yokohama.
In addition to an elegant tiled facade and tastefully designed entrance hall, the units of the building are equipped withhigh-grade household facilities, making the property highly appealing to singles in their twenties and thirties, the main
targets of the property.
(2) Acquisition highlight
SAR acquired the property on a negotiation basis through its unique relationship (utilizing warehousing function by
the Sponsor Group).

－
－
－
－

Comprehensive evaluation by SAR: Evaluation of income stability
For the following reasons, SAR believes the property can gain stable revenue over the medium to long-term.
(1) Located in the Shin-Yokohama area, which provides convenient transportation access.
(2) In addition to an elegant facade, the building is equipped with premium household facilities.
(3) Access to central Tokyo will improve considerably with the opening of direct services linking the Sagami and Tokyu
railway lines.

(7) RSC-05

Urban Park Namba

Property no.

RSC-05

Property
name

Urban Park Namba

Type

Residential property

Overview of specified asset
Type of specified asset

Beneficiary interest in
trust (Note 1)

Acquisition price

1,490 million yen

Appraisal value
Location
Indication of residential
address
Nearest station
Land

Building

Type ofownership
Site area
Building
coverage ratio
Type ofownership
Total floor
area
Construction
completion

Trustee

Date of conclusion ofsale and purchaseagreement
1,560 million yen
Seller
2-7-18 Inari, Naniwa-ku, Osaka-shi, Osaka

Mitsubishi UFJ Trust and Banking
Corporation(Note 1)
Not disclosed (Note 2)

2-7-22 Inari, Naniwa-ku, Osaka-shi, Osaka
Approximately 6-minute walk from Sakuragawa Station on the Osaka Municipal Subway
Sennichimae Line
Proprietary ownership
670.39m2

Use district

Quasi Industrial District

60%

Floor area ratio

400%

2,776.87m2

Use

Apartment complex, parking

January 9, 2013

Structure and floors

Reinforced concrete structure
14 floors above ground

Master lease
company

Phoenix Kanri Inc.

Proprietary ownership

Collateral
Property managementcompany
Status of leasing

None

Total leasable area

2,584.81m2

Total leased area

2,414.26m2

Occupancy rate

93.4%

Phoenix Kanri Inc.

Total number oftenants
Monthlyrent(includingcommon area
maintenance fee)
Security andguarantee deposits

110
7,726 thousand yen
100,000 yen

Special notations
Not applicable.
Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

15

(Note 1) SAR succeeded, on April 20, 2016, the status of a buyer under the trust beneficiary interest sale and purchase contract
dated February 2, 2016, which was concluded between the seller and GK SAPR2 belonging to the Sponsor Group.
(Note 2) The information is undisclosed as consent to disclosure has not been obtained from the seller.
(Unit: yen)
Summary of real estate appraisal report
Property nameUrban Park Namba
Appraisal value
1,560,000,000
Appraisal firm
Daiwa Real Estate Appraisal Co., Ltd.
Date of value
November 1, 2015
Item
Details
Description, etc.
Estimated by emphasizing the indicated value by DCF
Indicated value by income approach
1,560,000,000 method and verifying with the indicated value by direct
capitalization method.
Indicated value by direct capitalization
1,590,000,000
method(1) OperaOng revenue ((a)−(b))
100,144,873(a) Gross potential income
105,258,224
Recorded taking into consideration the average vacancy(b) Vacancy loss, etc.
5,113,351 rate in the area, competitiveness of the subject realestate, etc.
(2) Operating expenses
18,974,581
Maintenance and management
Recorded by judging the scheduled agreement fee to be
3,671,400
fee
appropriate.
Appraised by reference to the level of similar real estate
Utilities expenses
1,406,556
and historical data.
Appraised by reference to the ER while taking into
Repair expenses
1,696,984 consideration the level of repair expenses of similar realestate.
Property Management fee
1,471,240 Recorded based on the scheduled agreement.
Recorded the amount equivalent to 1.5 month rent to be
Tenant leasing cost, etc.
5,169,301 paid by newly occupying tenant by reference to the levelof similar real estate.
Property taxes
5,127,400 Appraised by reference to the actual data.
Insurance premium
337,700 Appraised by reference to the level of similar real estate.
Appraised by reference to the actual data of supplies
Other expenses
94,000 expenses and discretionary reserve such as othermiscellaneous expenses.
(3) Net operating income
81,170,292(NOI=(1)−(2))(4) Financial interests on deposits
0 Appraised investment return as 2.0%.
Appraised by reference to the ER while taking into
(5) Capital expenditures
1,891,120 consideration the level of renewal expenses of similar
real estate.
(6) Net cash ﬂow (NCF=(3)+(4)−(5))
79,279,172
Appraised by comprehensively taking into account the(7) Capitalization rate
5.0%
competitiveness of the subject real estate, etc.
Indicated value by DCF method
1,540,000,000
Appraised by comprehensively taking into account the
Discount rate
4.8%
competitiveness of the subject real estate, etc.
Terminal capitalization rate
5.2% Appraised by reflecting aging risk, market trend risk, etc.
Estimated by making depreciation adjustment to
Indicated value by cost approach
1,450,000,000
replacement cost.
Ratio of land
52.2%
Ratio of building
47.8%
Determined using the indicated value by income
Matters considered in reconciliation of indicated values andapproach as standard and by reference to the indicateddetermination of appraisal value
value by cost approach.

Property information and acquisition highlight based on the survey by the Asset Manager(1) Property information
A residential building for singles located an approximate 9-minute walk from Namba Station on the JR Kansai MainLine and approximate 6-minute walk from Sakuragawa Station on the Osaka Municipal Subway Sennichimae Line.

－

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

16

－ Highly advantageous location within walking distance of Namba, one of Osaka’s leading shopping districts.
－ In addition to an elegant tiled facade, the units of the building are equipped with high-grade household facilities,

making the property highly appealing to singles in their twenties and thirties, the main target of the property.
(2) Acquisition highlight
SAR acquired the property on a negotiation basis through its unique relationship.

－

Comprehensive evaluation by SAR: Evaluation of income stability

For the following reasons, SAR believes that the property can gain stable revenue over the medium to long-term.
(1) Located near Namba, one of Osaka’s leading commercial areas.
(2) In addition to an elegant facade, the building is equipped with premium household facilities.
(3) The influx of population into central Osaka due to the impact of strong in-bound demand has had a stabilizing effect on
occupancy rates.

3. Seller profile(1) OFC-04 Nishi-Shinjuku Matsuya Building, OFC-05 Alphabet Seven and OFC-06 Shibuya MK Building
Name
Location
Representative

GK Hobie
5-1-4 Toranomon, Mimato-ku, Tokyo
Representative partner: Ippanshadanhoujin Zaimokuza
Operational executor: Takaaki Fukunaga
Main business description
1. Acquisition, ownership, disposition of real estate
2. Leasing and management of real estate
3. Acquisition, ownership, disposition of beneficially interest in trust
4. Acquisition, ownership, disposition of securities
5. All business incidental to the above
Capital300,000 yen
Established
January 4, 2012
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship
There is no personal relationship to report.
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 Investment Trusts Act, but falls under the category of interested party prescribedin the “Rules on Transactions 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 conducting the acquisition of the assets, the AssetManager has performed deliberation and resolution in accordance with the voluntaryrules.

(2) OFC-07 Hakata-eki Higashi 113 Building
NameWest Wood Capital Co., Ltd.
Location
2-7-46-201 Shirokane, Minato-ku, Tokyo
Representative
Takashi Nishiki
Main business description
Purchase/sale and ownership of securities, investment in venture companies, etc.
Capital10 million yen
Established
December 25, 2002
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship
There is no personal relationship to report.
Business relationship
There is no business relationship to report.
Related party or no
The Seller does not fall under the category of related party of SAR/the Asset Manager.

(3) OFC-08 Asahi Building
Name
Location
Representative
Main business description

GK Fireball1-1-7 Motoakasaka, Minato-ku, Tokyo
Representative partner: Ippanshadanhojin Yuigahama
Operational executor: Terumitsu Nosaka
1. Acquisition, ownership, disposition and management of beneficiary interest intrust
2. Sales, ownership, management and leasing of real estate

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

17

3. All business incidental to the above
Capital100,000 yen
EstablishedMarch 18, 2010
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship
There is no personal relationship to report.
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 Investment Trusts Act, but falls under the category of interested party prescribedin the “Rules on Transactions 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 conducting the acquisition of the assets, the AssetManager has performed deliberation and resolution in accordance with the voluntaryrules.

(4) RSC-04Urban Park Shin-Yokohama
Name
Location
Representative

GK SAPR 1
5-1-4 Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhojin SAPR Holding 1
Operational executor: Takaaki Fukunaga
Main business description
1. Acquisition, ownership and disposition of stocks, specified capital contribution,
capital and other equity interest of stock companies, special purpose companies,
limited liability companies and other corporations
2. Acquisition, ownership and disposition of beneficiary interest in trust of realestate3. Acquisition, ownership and disposition of loan claims
4. Acquisition, ownership and disposition of corporate bonds, silent partnershipinterest and other securities
5. Sales, leasing, management, acquisition, ownership, disposition and use of realestate
6. All business incidental to the above
Capital300,000 yen
Established
October 9, 2015
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship
There is no personal relationship to report.
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 Investment Trusts Act, but falls under the category of interested party prescribedin the “Rules on Transactions 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 conducting the acquisition of the assets, the AssetManager has performed deliberation and resolution in accordance with the voluntaryrules.

(5) RSC-05 Urban Park Namba
Name(Note)
Location(Note)
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship
There is no personal relationship to report.
Business relationship
There is no business relationship to report.
Related party or no
The Seller does not fall under the category of related party of SAR/the Asset Manager.
(Note) The information is undisclosed as consent to disclosure has not been obtained from the seller.

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

18

4. Status of Parties Related to the Acquisition of the Property(1) OFC-04 Nishi-Shinjuku Matsuya Building
Company name
Relationship with parties
who have special
interests

Previous owner, previous trustee
GK Hobie
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 Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

Before Previous owner, previous trustee
Other than the one with a relationship of special
interest―

Acquisition background―and reason, etc.
Acquisition price(Note)―
Acquisition period
January 27, 2012―
(Note) Omitted as the current owner has owned the property for over one year.

(2) OFC-05 Alphabet Seven
Company name
Relationship with parties
who have special
interests

Previous owner, previous trustee
GK Hobie
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 Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

Before Previous owner, previous trustee
Other than the one with a relationship of special
interest―

Acquisition background―and reason, etc.
Acquisition price(Note)―
Acquisition period
February 28, 2012―
(Note) Omitted as the current owner has owned the property for over one year.

(3) OFC-06 Shibuya MK Building
Previous owner, previous trustee
GK Hobie

Before Previous owner, previous trustee
Other than the one with 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 Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose―

Company name

Previous owner, previous trustee
GK FireballRelationship with parties
who have special
interests

The company does not fall under the categoryof interested person, etc. as provided in theInvestment Trusts Act, but falls under the

Before Previous owner, previous trustee
Other than the one with a relationship of special
interest―

Company name
Relationship with parties
who have special
interests

Acquisition background―and reason, etc.
Acquisition price(Note)―
Acquisition period
March 27, 2014―
(Note) Omitted as the current owner has owned the property for over one year.

(4) OFC-08 Asahi Building

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

19

category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

Acquisition background―and reason, etc.
Acquisition price(Note)―
Acquisition period
November 28, 2014―
(Note) Omitted as the current owner has owned the property for over one year.

(5) RSC-04 Urban Park Shin-Yokohama
Company name
Relationship with parties
who have special
interests

Previous owner, previous trustee
GKS APR 1
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 Transactions with Interested Parties”
set forth by the Asset Manager.
Acquired for investment management purpose

Before Previous owner, previous trustee
Other than the one with a relationship of special
interest―

Acquisition background―and reason, etc.
Acquisition price
2,420 million yen―
Acquisition period
January 27, 2016―
(Note) Since the sellers of OFC-07Hakata-eki Higashi 113 Building and RSC-05Urban Park Namba do not fall under the
category of party having special vested interest, their descriptions are omitted.

5. Overview of broker(1) OFC-04 Nishi-Shinjuku Matsuya Building, OFC-05 Alphabet Seven, OFC-06 Shibuya MK Building, OFC-08
Asahi Building, RSC-04 Urban Park Shin-Yokohama
1) Overview of broker
Name
Location
Representative
Main business description

Jones Lang LaSalle, Inc.
2-13-10 Nagata-cho, Chiyoda-ku, Tokyo
Toshinobu Kawanishi
1. Consultant and research of real estate investment
2. Sales, trading, leasing, management of real estate; and agent and brokerage of such
3. Appraisal and consultant of real estate
4. through 24. Omission
25. All business incidental to the above
Capital
195 million yen
Established
April 23, 1985
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personal relationship to report.
Business relationship
There is no business relationship to report.
Related party or no
The company does not fall under the category of related party of SAR/the Asset Manager.

2) Breakdown and value of the brokerage commission
Since the consent has not been obtained from the broker, the information is not disclosed as an
undisclosed case due to unavoidable reasons.
(2) OFC-07 Hakata-eki Higashi 113 Building
1) Overview of broker
Name
Location
Representative

OHI Co., Ltd.
4-6-7 Tenjin, Chuo-ku, Fukuoka-shi, Fukuoka
Eiji Igawa

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

20

Main business description Management, leasing, sales and brokerage of real estate
Capital
11 million yen
Established
October 10, 2003
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personal relationship to report.
Business relationship
There is no business relationship to report.
Related party or no
The company does not fall under the category of related party of SAR/the Asset Manager.
2) Breakdown and value of the brokerage commission

Since the consent has not been obtained from the broker, the information is not disclosed as an
undisclosed case due to unavoidable reasons.
(3) RSC-05 Urban Park Namba
1) Overview of broker
Name
Location
Representative
Main business description

Blue Sky Associates Co., Ltd.
2-11-13 Akasaka, Minato-ku, Tokyo
Taketo Kaneko
Sales, ownership and brokerage of real estate beneficiary interest in trust
Type II financial instruments business, investment advising/agent and related consulting,etc.
Capital10 million yen
Established
April 6, 2012
Relationship with investment corporation or asset management company
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personal relationship to report.
Business relationship
There is no business relationship to report.
Related party or no
The company does not fall under the category of related party of SAR/the Asset Manager.

・・

2) Breakdown and value of the brokerage commission

Since the consent has not been obtained from the broker, the information is not disclosed as an undisclosed
case due to unavoidable reasons.
6. Future Outlook
For the outlook of the operating results of SAR for the fiscal periods ending July 31, 2016 and January 31, 2017,
please refer to the “Notice Concerning Forecasts for the Fiscal Periods Ending July 31, 2016 and January 31,
2017” separately announced today.

* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of the
Ministry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publicationsof the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/＜Reference Materials＞
Reference Material 1:
Reference Material 2:
Reference Material 3:

Summary of engineering report and earthquake risk analysis
Location maps/photos of exterior of properties
Portfolio list

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

21

Reference Material 1: Summary of engineering report and earthquake risk analysis
Earthquake risk
analysis (Note 4)

Engineering report
Propertyno.

Property name

Investigator(Note 1)

Investigation
report date

Emergency andshort-term
repair expenses(thousand yen)
(Note 2)Medium to longterm repair
expenses(thousand yen)
(Note 3)

PML (%)

OFC-01

Minami-Azabu
Shibuya Building

Deloitte Touche
Tohmatsu

December 2015

0

18,00012.6

OFC-02

Oak Minami-Azabu
Building

Deloitte Touche
Tohmatsu

December 2015

023,286High-rise bldg.: 11.2
Low-rise bldg. A: 6.3
Low-rise bldg. B: 5.5

Honmachibashi
Tower
Nishi-Shinjuku
Matsuya Building

Deloitte Touche
Tohmatsu
Deloitte Touche
Tohmatsu
Deloitte Touche
Tohmatsu
Deloitte Touche
Tohmatsu

December 2015

0

25,0582.7

December 2015

0

16,002

12.2

December 2015

0

7,000

7.8

December 2015

0

6,031

13.1

OFC-03
OFC-04
OFC-05Alphabet Seven

OFC-06

Shibuya MK Building
Hakata-eki Higashi
113 Building
Asahi Building
Urban Park
Azabujuban

Earth Appraisal

December 2015

0

20,018

7.1

Earth Appraisal
Deloitte Touche
Tohmatsu

December 2015

950

44,821

4.8

December 2015

0

3,515

7.2

RSC-02

Urban Park
Daikanyama

Deloitte Touche
Tohmatsu

December 2015

0

18,023

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

RSC-03

Urban Park
Yoyogikoen

December 2015

0

3,498

10.6

RSC-04

Urban Park ShinYokohama

December 2015

0

5,440

14.5

RSC-05

Urban Park Namba

December 2015

0

2,321

13.2

LGC-01

Iwatsuki Logistics

December 2015

0

5,103

12.2

LGC-02

Yokohama Logistics

Deloitte Touche
Tohmatsu
Tokio Marine &Nichido Fire
Insurance
Tokio Marine &Nichido Fire
Insurance
Deloitte Touche
Tohmatsu
Deloitte Touche
Tohmatsu

December 2015

032,39510.8

LGC-03

Funabashi Logistics

Deloitte Touche
Tohmatsu

December 2015

059,941

Bldg. 1-A: 13.9
Bldg. 1-B: 14.4
Bldg. 2: 11.1

Earth Appraisal

December 2015

0

11,42911.4

OFC-07
OFC-08
RSC-01

HTL-01
HTL-02

R&B Hotel Umeda
East
Smile Hotel Namba

Earth Appraisal
December 2015
0
2,125
12.3
Entire portfolio (Note 4)
3.58(Note 1) “Deloitte Touche Tohmatsu,” “Earth Appraisal” and “Tokio Marine & Nichido Fire Insurance” in the “Investigator” refers
to Deloitte Tohmatsu Property Risk Solution Co., Ltd., Earth-Appraisal Co., Ltd. and Tokio Marine & Nichido Risk
Consulting Co., Ltd., respectively.
(Note 2) “Emergency and short-term repair expenses” is the expenses stated in the engineering report as expenses in urgent
need and repair and renewal expenses required within roughly one year, rounded to the nearest thousand yen.
(Note 3) “Medium to long-term repair expenses” is the average amount per year of the repair and renewal expenses projected
for the next 12 years stated in the engineering report, rounded to the nearest thousand yen.
(Note 4) SAR consigned calculation of individual PML and portfolio PML to Deloitte Tohmatsu Property Risk Solution Co., Ltd. andhave received the reports. The figure in the entire portfolio column is the PML for the entire portfolio (portfolio PML)
based on the company’s “portfolio earthquake risk evaluation report” dated February 2016.

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

22

Reference Material 2: Location maps/photos of exterior of properties
OFC-04

Nishi-Shinjuku Matsuya Building

OFC-05Alphabet Seven

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

23

OFC-06

Shibuya MK Building

OFC-07

Hakata-eki Higashi 113 Building

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

24

OFC-08

Asahi Building

RSC-04

Urban Park Shin-Yokohama

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

25

RSC-05

Urban Park Namba

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

26

Reference Material 3: Portfolio list

Property no.
OFC-01
OFC-02
OFC-03
OFC-04
OFC-05
OFC-06
OFC-07

Property nameMinami-Azabu Shibuya
Building
Oak Minami-Azabu Building
Honmachibashi Tower
Nishi-Shinjuku Matsuya
Building
Alphabet Seven
Shibuya MK Building
Hakata-eki Higashi 113
Building

OFC-08Asahi Building

RSC-01
RSC-02
RSC-03

Urban Park Azabujuban
Urban Park Daikanyama
Urban Park Yoyogikoen

RSC-04

Urban Park Shin-Yokohama

RSC-05

Urban Park Namba

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Acquisition
price(million yen)

Real estateappraisal value(million yen)

Investment
ratio (%)
(Note)

Minato-ku, Tokyo

2,973

3,000

4.8

Minato-ku, Tokyo
Chuo-ku, Osaka-shi, Osaka

3,271
6,065

3,300
6,530

5.3
9.9

Shibuya-ku, Tokyo

1,763

2,120

2.9

Minato-ku, Tokyo
Shibuya-ku, Tokyo

1,725
2,042

2,240
2,150

2.8
3.3

Hakata-ku, Fukuoka-shi, Fukuoka

1,885

1,920

3.1

Kanagawa-ku, Yokohama-shi,
Kanagawa

6,320

6,370

10.3

2,045
6,315
875

Office subtotal
2,130
7,120
1,040

42.4
3.3
10.3
1.4

2,528

2,540

4.1

1,490
1,560
Residential property subtotal

2.4
21.6

Location

Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Kohoku-ku, Yokohama-shi,
Kanagawa
Naniwa-ku, Osaka-shi, Osaka
Iwatsuki-ku, Saitama-shi,
Saitama
Kanagawa-ku, Yokohama-shi,
Kanagawa
Funabashi-shi, Chiba

6,942

7,000

11.3

3,560

3,840

5.8

7,875
8,200
12.8
Logistics property subtotal
29.9
HTL-01 R&B Hotel Umeda East
Kita-ku, Osaka-shi, Osaka
2,069
2,210
3.4
HTL-02 Smile Hotel Namba
Naniwa-ku, Osaka-shi, Osaka
1,750
1,860
2.8
Hotel subtotal
6.2
61,493
65,130100.0(Note) “Investment ratio” is the ratio of acquisition price for each Acquired Asset to the total of acquisition prices, rounded to
the first decimal place.

Disclaimer: This document is an English translation of a press release for public announcement concerning completion of asset acquisition by
Star Asia Investment Corporation, and has not been prepared for the purpose of solicitation of investment.

27