August 27, 2020

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

Notice Concerning Establishment of Interest Rate SwapStar Asia Investment Corporation (“SAR”) announces today the establishment of an interest rate swap (the“Establishment of Interest Rate Swap”) concerning long-term borrowings described in “Notice Concerning DebtFinancing (refinancing)” dated August 25, 2020, as described below. Moreover, please refer to the press releasementioned above for details of the borrowing for which the Establishment of Interest Rate Swap was performed.
1.

Reason for establishment
The interest rate swap has been established in order to fix interest rate payments and hedge interest rate
fluctuation risk pertaining to the borrowings under an individual term loan agreement concluded on August27, 2020, as described in “2. Details of the established swap” below.

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

Borrowing

InterestDate ofamountrateborrowingand Mizuho

Baseinterestrate(Japanese Yen 3MTIBOR）

Bank, Ltd. as+0.45%

Sumitomo
Mitsui(Note 1)

Corporation

Date

Repayment
methodSecurity

the individual term

lenders withBanking

Repayment

Borrowing based on

A syndicate oflong-term

Principal
Borrowing method

500
million yen

loan agreement

Lump sum

dated August 27,
August 31,
2020

2020 based on thebasic agreement
dated July 29, 2020
between Sumitomo
Mitsui Bankingarrangers

Corporation as(Note 2)

agent.

1

repayment
Februaryon the29, 2024

principal
repayment
date

UnsecuredandUnguaranteedBorrowing based on

A syndicate of

the individual term

lenders withSumitomoand Mizuho

Baseinterestrate(Japanese Yen 3M
TIBOR）

Bank, Ltd. as+0.60%

Mitsuilong-term

Banking(Note 1)

Corporation

8,250
million yen

loan agreement
dated August 27,
August 31,
2020

basic agreement
dated July 29, 2020

August 29,
2025

Lump sum
repayment
on maturity
date

UnsecuredandUnguarantee
dbetween Sumitomo
Mitsui Bankingarrangers

Corporation as(Note 3)(Note 1)2020 based on theagent.

Long-term borrowings refers to borrowings where the period up to the repayment date is one year or more. The
same applies hereinafter for long-term borrowings.

(Note 2)The syndicate of lenders consists of The Bank of Fukuoka, Ltd.

(Note 3)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Aozora Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited and The Nishi-Nippon City Bank, Ltd., and Resona Bank, Limited.

(2) Details of interest rate swap agreement
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal500 million yen
Interest rate (Note)
Fixed interest rate payable: 0.08600%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement dateAugust 31, 2020
Termination dateFebruary 29, 2024
Interest payment dates
The first interest payment date will be September 30, 2020, and subsequent interest
payment dates will be every 3 months at the end of the month.
(Note) The interest rate for long-term borrowings will be effectively fixed at 0.53600% with the conclusion of theEstablishment of Interest Rate Swap.
Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
8,250 million yen
Fixed interest rate payable: 0.09750%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement dateAugust 31, 2020
Termination dateAugust 29, 2025
Interest payment dates
The first interest payment date will be September 30, 2020, and subsequent interest
payment dates will every 3 months at the end of the month.
(Note) The interest rate for long-term borrowing will be effectively fixed at 0.6975% with the conclusion of theEstablishment of Interest Rate Swap.
3.

Future outlook
The impact of the Establishment of Interest Rate Swap on the operating results is insignificant, and theimpact on the forecast of operating results for the fiscal period ending January 31, 2021 (August 1, 2020 toJanuary 31, 2021) which was announced by SAR in the “Notice Concerning the Forecast of Operating Resultsand Distributions Subsequent to the Merger of Star Asia Investment Corporation and Sakura Sogo REIT
Investment Corporation for the Fiscal Periods Ending January 31, 2021 and July 31, 2021” dated March 2,2020 and in the “(REIT) Financial Report for Fiscal Period Ended January 31, 2020” dated March 13, 2020 isminimal, and there are no changes to the forecast.

4.

Other matters required for investors to appropriately understand and evaluate the above information.

2In conjunction with the risks pertaining to Establishment of the Interest Rate Swap, there are no changes to“Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the securities report(Japanese only) submitted on April 28, 2020.

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

This is an English translation of the announcement in Japanese dated August 27, 2020.However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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