March 16, 2023
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Officer(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato
President and CEO
Contact:
Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager
Star Asia Investment Management Co., Ltd. (the “Asset Manager”) , to which Star Asia Investment Corporation(“SAR”) entrusts the management of its assets, announces today that the Asset Manager has made a partial
amendment to the management guidelines, which are internal rules of the Asset Manager. Details are as follows.

1.

Summary and Background of the Amendment
Since listing in April 2016, SAR as a diversified REIT has upheld the following 3 main investment policies andhas conducted investments pursuing maximization of unitholders’ interests.
◼ Prioritized and concentrated investments in the Tokyo Area (Note 1)/Tokyo Area ratio of 70% or more.
◼ Achieve “stability” and “growth” of revenues by diversifying asset type (uses).
◼ Invest mainly in middle-sized assets (Note 2)
Under the above investment policy, SAR has continued active management, and through property
purchases and asset replacements accompanied by 5 public offerings and through the merger, the asset sizeas of today has become 194.8 billion yen (real estate properties: 62 properties, mezzanine loan debts: 2transactions) on an acquisition price basis.
Given the expansion of asset size, the impact of each individual property on the entire portfolio has been
reduced, and SAR is of the view that the degree of risk tolerance of the portfolio has increased.
Under this situation, the Asset Manager has decided to amend a part of the “Management Guideline”
which provides for basic matters regarding SAR’s investment management, while maintaining the above
stated main investment policies, towards accelerating further external growth. The main changes made are
related to the definitions of investment target areas.
(Note 1) The definition of Tokyo Area has been changed within the amendment of the Management Guidelines thistime. For details, please refer to the following page.

(Note 2) Defined in the Management Guidelines as properties whose purchase price is less than 10 billion yen.

12.

Overview of the Amendment to the Management Guidelines<Before amendment>
Area Classification
Asset TypeTokyo Area
Offices, retail facilities
Residences, logistics facilities,hotels, student residences

Greater Tokyo Area

Osaka Area
Nagoya Area
Fukuoka Area
Sapporo Area
Other ordinancedesignated cities

Offices, retail facilities

All asset types
All asset types
All asset types
All asset types
All asset types

Target Areas
Tokyo 23 wards, Kawasaki-shi, Yokohamashi
Tokyo, Kanagawa, Saitama, and Chiba
prefectures
Main cities in Suburban Tokyo (other thanthe 23 wards), Kanagawa prefecture(excluding Kawasaki-shi and Yokohamashi), and Saitama prefecture.
Osaka-shi, Osaka prefecture (*1)
Nagoya-shi, Aichi prefecture (*2)
Fukuoka-shi, Fukuoka prefecture (*3)
Sapporo-shi, Hokkaido prefecture
Sendai-shi, Miyagi prefecture
Niigata-shi, Niigata prefecture
Kyoto-shi, Kyoto prefecture
Sakai-shi, Osaka prefecture
Kobe-shi, Kobe prefecture
Hiroshima-shi, Hiroshima prefecture
Kitakyushu-shi, Fukuoka prefecture(*1) For residences and logistics facilities, also includes the neighboring areas of Osaka-shi, Osaka prefecture(*2) For residences and logistics facilities, also includes the neighboring areas of Nagoya-shi, Aichi prefecture.
(*3) For residences and logistics facilities, also includes the neighboring areas of Fukuoka-shi, Fukuoka prefecture.

<After amendment>
Area Classification

Tokyo, Kanagawa, Saitama, Chiba
prefectures

Tokyo Area

Major
Metropolitan
Areas

Specific Investment Target Areas

Osaka Area

Osaka-shi, Osaka prefecture

Nagoya Area

Nagoya-shi, Aichi prefecture

Fukuoka Area

Fukuoka-shi, Fukuoka prefecture

Investment Ratio
In principle, 70 % or more

In principle, less than 30%

Ordinance-designated cities other than the above
In principle, less than 10%
investment target areas
The above investment target areas are applicable to all asset types. However, for residences and logistics
facilities, the following shall apply.
- Residences:
In addition to the above-mentioned investment target areas, the neighboring areas of
the following cities can also be invested in: for the Osaka Area, Osaka-shi of Osaka
prefecture, for the Nagoya Area, Nagoya-shi of Aichi prefecture, and for the Fukuoka
Area, Fukuoka-shi of Fukuoka prefecture.
- Logistics Facilities: In addition to the above-mentioned investment target areas, the neighboring areasof the following cities can also be invested in: for the Osaka Area, Osaka-shi of Osaka
prefecture, for the Nagoya Area, Nagoya-shi of Aichi prefecture, and for the Fukuoka
Area, Fukuoka-shi of Fukuoka prefecture.
Also, areas other than the above investment target areas can be invested in, if it isdetermined that tenant demand will be high in the mid- to long-term, when taking2

into account location features (nearest consumption regions, status of access tovarious transportation infrastructure facilities such as airports, harbors, and highway
interchanges etc.) In such cases, for the purpose of calculation of investment ratio,
they shall be classified under “Ordinance-designated cities etc. other than in the main
metropolitan areas/ above-mentioned investment target areas”.
As stated in the main investment policies described under “1. Summary and Background of the Amendment”
above, SAR has established the Tokyo Area as the main investment target area, and there is no change tosuch policy in the amendments made this time, and in principle, SAR intends to maintain the investment ratio
for the Tokyo Area to be 70% or more (on a purchase price basis).
For details, please refer to the Appendix.
3.

Date of Amendment of Management Guidelines
March 16, 2023

4.

Future outlook
There is no impact from the above partial amendment to the Management Guidelines on the operating resultsof SAR.

5.

Others
The extraordinary report was submitted to the Director-General of the Kanto Local Finance Bureau on thisday.

<Other press releases announced today>・(REIT) Financial Report for Fiscal Period Ended January 31, 2023・Notice Concerning Signing of Building Lease Option Agreement Presupposing Extension of the Building(Funabashi Hi-tech Park Factory I)
・Notice Concerning the Transfer of Trust Beneficial Interests of Domestic Real Estate (Urban Park Gokokuji)・Notice Concerning signing of Right of First Refusal Agreement for Acquisition of Assets (Preferred EquitySecurities) and Receipt of a Letter of Intent regarding Lending of the Preferred Equity Securities (HAKUSANHOUSE)*SAR HP URL: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated March 16, 2023. However, no assurance or warranties
are given for the completeness or accuracy of this English translation.

3<Appendix>

Status of the Portfolio

After the assignment of the Assets to be Transferred as described in the press release announced today
entitled “Notice Concerning the Transfer of Trust Beneficial Interests of Domestic Real Estate (Urban ParkGokokuji) ” and the acquisition of the Class A and Class B investments in mezzanine loan debt as described inthe press release dated February 1, 2023 entitled “Notice Concerning Acquisition of Mezzanine Loan Debt Star Asia Mezzanine Loan Debt Investment Series 8 (Class A Beneficial Interest and Class B Beneficial Interest) ”,
the Tokyo Area ratio against the entire portfolio (including investments in mezzanine loan debts) is 68.5%.
Although the Tokyo Area investment ratio is expected to become lower than 70%, when excluding from thecalculation the 3 suburban-type retail facilities which SAR’s policy is to sell (which are “Lapark Kishiwada”,“Suroy Mall Chikushino”, and “Seiyu Minakuchi”) , the Tokyo Area ratio is 74.4%.

<Portfolio(based onacquisition price)>

MajorMetropolitan Areas,
31.5%<Excluding 3 retail properties to be sold>
Major
Metropolitan Areas,
25.6%
Other
ordinance
designatedsities, 4.2%

Other
ordinance
designatedsities, 11.7%
TokyoArea,
68.5%

TokyoArea,
74.4%

4