February 26, 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 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 the Asset Manager’s resolution to make a partial
amendment to the management guidelines, which are internal rules of the Asset Manager, at the Board of
Directors meeting held today. Details are as follows.
1.

Summary and Background of the Amendment
SAR invests in office, retail, residential, logistics, hotel and purpose-built student accommodation properties
as a diversified REIT with an aim to maximize unitholders’ interests and pursue the development of a portfolio
by which SAR can achieve income “stability” (prevention of reduction of income as a result of change ofeconomic environment) and “growth” (future increase of income) by accurately grasping the features of each
asset type.
Since its listing, SAR has continued to acquire properties, leading to its asset size increasing by
approximately 1.6 times (total acquisition price: approximately 102.3 billion yen) and the number of owned
assets growing to 34. As such, the stability of the portfolio revenue has increased as well.
In consideration of the status of SAR’s real estate portfolio as described above as well as the real estatemarket and such, SAR has decided to expand its investment target area and to change the investment target
area in the management guidelines which are the internal rules of the Asset Manager as described below.
This is thought to enable further expansion of the asset size and construction of a diversified portfolio.
Please also see “<Attached Material> Expanded Tokyo Area” as well as “Supplementary Materials
Concerning Partial Amendment to the Management Guidelines” dated today.
Note that no changes have been made to the definition of investment target area “Tokyo Area” nor to theinvestment policy of “prioritized focused investment in Tokyo Area” (investment ratio of 70% or more forTokyo Area).

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Overview of the Amendment to Management Guidelines
The parts that were changed are underlined.
<Before amendment>(Omitted)
Concerning the investment ratios by area, Tokyo Area (Note 2), being the main investment target area, shallfor the time being have an investment ratio of 70% or more while the investment ratio of the Osaka Area,
Nagoya Area, Fukuoka Area, Sapporo Area and other government-designated cities (collectively referred toas the “Regional Areas”) (Note 2) shall be 30% or less. In addition, the generation of stable cash flow in themedium to long term will be pursued by promoting an increase of properties in the portfolio anddiversification of tenants in each property.
(Omitted)(Note 2) Tokyo Area, Osaka Area, Nagoya Area, Fukuoka Area, Sapporo Area and other government-designated cities
shall be defined as follows. The ratio of investment in Tokyo Area may temporarily fall below 70% throughstrategic investment in particular areas as a result of independent market analysis.
Area
Tokyo Area (70% orhigher investment ratio(acquisition price base))
Osaka Area
Nagoya Area
Fukuoka Area
Sapporo Area

Use
Office and retail facility
Residence, logistics facility, hotel,
purpose-built student accommodation
All asset types

Target Area
Tokyo 23 wards, Kawasaki-shi andYokohama-shi
Tokyo, Kanagawa, Saitama and Chiba

Osaka-shi, Osaka (Note 1)
Nagoya-shi, Aichi (Note 2)
Fukuoka-shi, Fukuoka (Note 3)
Sapporo-shi, Hokkaido
Sendai-shi, Miyagi
Niigata-shi, Niigata
Kyoto-shi, Kyoto
OthergovernmentSakai-shi, Osaka
designated cities
Kobe-shi, Hyogo
Hiroshima-shi, Hiroshima
Kitakyushu-shi, Fukuoka(Note 1) Residence and logistics facilities include the neighboring areas of Osaka-shi, Osaka(Note 2) Residence and logistics facilities include the neighboring areas of Nagoya-shi, Aichi(Note 3) Residence and logistics facilities include the neighboring areas of Fukuoka-shi, Fukuoka(Omitted)<After amendment>(Omitted)
Concerning the investment ratios by area, Tokyo Area (Note 2), being the main investment target area, shallfor the time being have an investment ratio of 70% or more while the investment ratio of the Expanded
Tokyo Area, Osaka Area, Nagoya Area, Fukuoka Area, Sapporo Area and other government-designated cities(collectively referred to as the “Regional Areas”) (Note 2) shall be 30% or less. In addition, the generationof stable cash flow in the medium to long term will be pursued by promoting an increase of properties in
the portfolio and diversification of tenants in each property.
(Omitted)(Note 2) Tokyo Area, Expanded Tokyo Area, Osaka Area, Nagoya Area, Fukuoka Area, Sapporo Area and othergovernment-designated cities shall be defined as follows. The ratio of investment in Tokyo Area may
temporarily fall below 70% through strategic investment in particular areas as a result of independent market

2analysis.
Area
Tokyo Area (70% or
higher investment ratio(acquisition price base))
Expanded Tokyo Area

Use
Office and retail facility
Residence, logistics facility, hotel,
purpose-built student accommodation
Office and retail facility

Target Area
Tokyo 23 wards, Kawasaki-shi andYokohama-shi
Tokyo, Kanagawa, Saitama and Chiba

Suburban Tokyo (outside 23 wards) andmajor cities in Kanagawa and Saitama(excluding Kawasaki-shi and Yokohamashi)
Osaka Area
All asset typesOsaka-shi, Osaka (Note 1)
Nagoya Area
Nagoya-shi, Aichi (Note 2)
Fukuoka Area
Fukuoka-shi, Fukuoka (Note 3)
Sapporo Area
Sapporo-shi, Hokkaido
Sendai-shi, Miyagi
Niigata-shi, Niigata
Kyoto-shi, Kyoto
OthergovernmentSakai-shi, Osaka
designated cities
Kobe-shi, Hyogo
Hiroshima-shi, Hiroshima
Kitakyushu-shi, Fukuoka(Note 1) Residence and logistics facilities include the neighboring areas of Osaka-shi, Osaka(Note 2) Residence and logistics facilities include the neighboring areas of Nagoya-shi, Aichi(Note 3) Residence and logistics facilities include the neighboring areas of Fukuoka-shi, Fukuoka(Omitted)
3.

Date of Change of Management Guidelines
February 26, 20194.

OthersThere is no impact from the partial amendment to the above management guidelines on the operating resultsof SAR.

<Attached Material>・Expanded Tokyo Area
<Reference >Other press releases published as of today- Notice Concerning Acquisition of Asset (Silent Partnership Equity Interest)- Supplementary Material Concerning Partial Amendment to the Management Guidelines* Star Asia Investment Corporation website: http://starasia-reit.com/en/

3<Attached Material>
Expanded Tokyo Area
Through its property acquisition activities, the Asset Manager has confirmed that there is a certain amountof opportunity for acquiring prime office buildings and retail facilities in the “Expanded Tokyo Area” as well.
It is believed that expanding the investment target area will contribute to the external growth of SAR.
Furthermore, the major cities to be targeted are selected based on the following point of view.
The Asset Manager emphasizes demographic trends when it comes to searching for investment targets. In
particular, the number of people moving into Tokyo, Kanagawa and Saitama is increasing, and in these threeprefectures there are several specific areas where the increase is even more notable. Of these areas, thefollowing indicators are mainly used, and regions where prime offices and retail facilities exist or are expected
to be developed shall be targeted.
① There is a considerable amount of office stock② Private businesses have a considerable amount of sales③ The area is positioned as a core city or there are development projects underway or planned
at a central station in the area
In addition to the above, the status of transactions in the real estate market will be taken into consideration.
For details, please see “Supplementary Materials Concerning Partial Amendment to the ManagementGuidelines” dated today.

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