August 19, 2024
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 Debt Financing (Green Loans)Star Asia Investment Corporation (“SAR”) announces today that it has decided to execute a debt financing (the“Debt Financing”) as described below. A part of the Debt Financing is to be executed by green loans based on
the Green Finance Framework (the “Framework”) formulated by SAR.
1.Details of the Debt Financing (Note 1)
Method of Borrowing: Borrowings under individual term loan agreements scheduled to be signed on August28, 2024 with the lenders described below.
Term(Note 2)

Short-termborrowings

Lenders

Sumitomo
Mitsui Banking
Corporation

Borrowingamount(million yen)
(Note 3)

Interest rate
(Note 4)

Date ofborrowingBaseinterest
rate
1,200

Floating(JPY 1M
TIBOR)

Principal
Repayment Date(Note 7)January
August 30,
2024

31, 2025(Note 9)+0.20%

Repayment
method(Note 8)

Security

Lump sum
repaymentonprincipal
repayment
date

UnsecuredandUnguaranteed

Lump sum
repaymentonprincipal
repayment
date

UnsecuredandUnguaranteed(Note 5)

Short-termborrowings

Sumitomo
Mitsui Banking
Corporation

800

FloatingBaseinterest
rate(JPY 1M
TIBOR)+0.20%(Note 5)

August 29,
August 30,
2024

2025
(Note 10)

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing of SAR,
and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, andwill not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer ing
or sale of securities in the United States will be made in connection with the above -mentioned transactions. This press
release is not for publication, distribution, or release, directly or indirectly in or into the United States of America.

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Long-termborrowings

Long-term
borrowings(Note 1)

A syndicate oflenders with
Sumitomo
Mitsui Banking
Corporation andMizuho Bank,
Ltd. as arrangers(Note 11)
(Green Loan)(Note 13)
A syndicate oflenders with
Sumitomo
Mitsui Banking
Corporation andMizuho Bank,
Ltd. as arrangers(Note 12)(Green Loan)(Note 13)Baseinterest
rate
7,440

Floating(JPY 3M
TIBOR)

August 30,
2024

August 30,
2029+0.60%

Lump sum
repaymentonprincipal
repayment
date

UnsecuredandUnguaranteed

Lump sum
repaymentonprincipal
repayment
date

UnsecuredandUnguaranteed(Note 6)Baseinterest
rate
8,200

Floating(JPY 3M
TIBOR)

August 30,
2024+0.75%

February28, 2031(Note 6)This information is based on the notice on results of consideration regarding the Debt Financing issued by thelender or arrangers. However, it does not guarantee that the actual financing will be conducted as describedabove, because the lenders should go thorough financing examination.

(Note 2)

Short-term borrowings refer to borrowings due within one year. Long-term borrowings refer to borrowings where
the period up to the repayment date is more than one year. The same applies hereinafter.

(Note 3)This is the amount expected to be borrowed as of today, and the amount may be changed by the time of final
execution of the borrowing, following consideration of the net proceeds etc. to be received thorugh the public
offering as described in the separate announcement today entitled “Notice Concerning Issuance of New
Investment Units and Secondary Offering of Investment Units. ”(Note 4)

Financing fees and other charges payable to the lenders are not included.

(Note 5)

The first interest payment date is September 30, 2024, and thereafter, interest payment dates shall fall on the last
day of every 1 month and on the principal repayment date. However, if such date is a non-business day, theinterest payment date shall be the immediately following business day, or if such date falls in the next month, theinterest payment date shall be the immediately preceding business day. For borrowings with floating interest rates,
the base interest rate applicable to the calculation period for payment of interest on any given interest payment
date is the one-month TIBOR for Japanese Yen as announced by JBA TIBOR Administration at 11 a.m. (Tokyo time,
the same applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m. as possible, on the date
which is two business days prior to the immediately preceding interest payment date (or two business days before
the drawdown date for the first interest payment date). However, if there is no base rate that corresponds to aninterest calculation period, the base rate will be calculated by the formula set forth in the individual term loan
agreements. For Japanese Yen TIBOR announced by the JBA TIBOR Administration, which is used as the baseinterest rate, please confirm on the JBA TIBOR Administration website (https://www.jbatibor.or.jp/english/). SAR
may consider fixing interest rate payments by interest rate swap agreements for the Debt Financing.

(Note 6)

The first interest payment date is September 30, 2024, and thereafter, interest payment dates shall fall on the last
day of every 3 months and on the principal repayment date. However, if such date is a non-business day, theinterest payment date shall be the immediately following business day, or if such date falls in the next month, theinterest payment date shall be the immediately preceding business day. For borrowings with floating interest rates,
the base interest rate applicable to the calculation period for payment of interest on any given interest payment

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing of SAR,
and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, andwill not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer ing
or sale of securities in the United States will be made in connection with the above -mentioned transactions. This press
release is not for publication, distribution, or release, directly or indirectly in or into the United States of America.

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date is the three-month TIBOR for Japanese Yen as announced by JBA TIBOR Administration at 11 a.m. (Tokyo
time, the same applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m. as possible, on
the date which is two business days prior to the immediately preceding interest payment date (or two businessdays before the drawdown date for the first interest payment date). However, if there is no base rate that
corresponds to an interest calculation period, the base rate will be calculated by the formula set forth in theindividual term loan agreements. For Japanese Yen TIBOR announced by the JBA TIBOR Administration, which is
used

as

the

base

interest

rate,

pleaseconfirm

on

the

JBA

TIBOR

Administration

website(https://www.jbatibor.or.jp/english/). SAR may consider fixing interest rate payments by interest rate swap
agreements for the Debt Financing.
(Note 7)

If the principal repayment date is a non-business day, the repayment date shall be the immediately following
business day; however, if such date falls in the next month, repayment date shall be the immediately precedingbusiness day.

(Note 8)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the principal repayment date, SAR may prepay the borrowed amounts either in whole or in partprior to maturity.

(Note 9)The loan is scheduled to be repaid prior to maturity during the fiscal period ending January 31, 2025, due to theproceeds from the sale of the properties.

(Note 10)The loan is scheduled to be repaid prior to maturity during the fiscal period ending July 31, 2025, due to therefund of consumption tax, etc.

(Note 11)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank,
Limited., Sumitomo Mitsui Trust Bank, Limited., Resona Bank, Limited., The Kiyo Bank, San ju San Bank, Ltd., The
Juhachi-Shinwa Bank, Ltd., The Yamagata Bank, Ltd., The Hokuriku Bank, Ltd., Kansai Mirai Bank, Limited, The
Gunma Bank, Ltd. and Suruga Bank Ltd.

(Note 12)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank,
Limited., Sumitomo Mitsui Trust Bank, Limited., Resona Bank, Limited., The Bank of Fukuoka, Ltd., San ju San
Bank, Ltd., The Ogaki Kyoritsu Bank, Ltd., and Kansai Mirai Bank, Limited, The Gunma Bank and Suruga Bank Ltd.

(Note 13)

The borrowings are to be made as financing of funds required to acquire assets which satisfy the green eligibility
criteria under the Framework. For details of the Framework, please refer to the "Green Finance Framework" pageon SAR's website.
（https://starasia-reit.com/en/esg/greenfinance.html）(Note 14)

Certain financial covenants, such as stipulating that certain financial figures should be maintained based on assets
and liabilities, are expected to be provided for the Debt Financing.

2.Reason for the Debt Financing
To be allocated to the payment of a part of the acquisition funds and related expenses for acquisition of
the real estate beneficiary interests in trust for 4 properties to be acquired on August 30, 2024 (total
anticipated acquisition price: 34,700 million yen) described as Assets to be Acquired in the “NoticeConcerning Acquisition of Real Estate Beneficiary Interests in Trust and Lease Contract with New Tenants”
announced today and to the reduced cash on hand due to the acquisition of the Asset to be Acquired (Real
Estate Properties etc.), as announced in the “Notice Concerning Acquisition of Real Estate BeneficiaryInterest in Trust and Mezzanine Loan Debt, and Transfer of Real Estate Beneficiary Interests in Trust (11thAsset Replacement)” dated August 2, 2024.
SAR may consider fixing interest rate payments by an arrangement such as interest rate swaps for the Debt
Financing to improve stability of its financial foundation.

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing of SAR,
and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, andwill not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer ing
or sale of securities in the United States will be made in connection with the above -mentioned transactions. This press
release is not for publication, distribution, or release, directly or indirectly in or into the United States of America.

33.Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditure(1) Amount of funds to be procured
17,640 million yen in total(2) Specific use of funds to be procured and schedule of expenditureSpecific use of funds
AmountTo be allocated to the payment of a part of
the acquisition funds and related expenses forthe real estate beneficiary interests in trustfor 4 properties to be acquired on August 30,
2024 (expected acquisition price: 34,700
million yen) described as Assets to be
17,640 million yen
Acquired and to the reduced cash on handdue to the acquisition of the Asset to be
Acquired (Real Estate Properties etc.) which is
acquired in August 16, 2024, as stated in
Section 2 above.

Schedule of Expenditure

August 30, 2024

4.Status of Borrowings etc. after the Debt Financing

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment
corporation bonds

Before the Debt
Financing
1,000
119,840
120,840
1,000
121,840(Unit: million yen)
After the Debt
ChangeFinancing
2,200
1,200
136,280
16,440138,480
17,6401,000－
139,480

17,6405.Future Outlook
As a result of the Debt Financing, there will be certain changes made to the assumptions for theforecasts for operating results for the 18th fiscal period ending January 31, 2025 (August 1, 2024 toJanuary 31, 2025) described in “(REIT) Financial Report for Fiscal Period Ended January 31, 2024”
announced on March 15, 2024. For further details, please refer to “Notice Concerning Revision to
Forecasts for Operating Results and Distribution for the 17th Fiscal Period Ended July 31, 2024 andRevision to Forecasts for Operating Results for the 18th Fiscal Period Ending January 31, 2025 andForecasts for Operating Results and Distribution for the 19th Fiscal Period Ending July 31, 2025”
announced today.
6.Other matters required for investors to appropriately understand and evaluate the above information
With respect to the risks pertaining to the repayment of the Debt Financing, etc., there are no changes
to the descriptions in “Part II. Reference Information / II. Information Supplementary to Reference
Documents / 3. Investment Risks” of the Securities Registration Statement submitted today (August 19,2024).
Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing of SAR,
and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, andwill not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer ing
or sale of securities in the United States will be made in connection with the above -mentioned transactions. This press
release is not for publication, distribution, or release, directly or indirectly in or into the United States of America.

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<Reference>
Other press releases announced today
・Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units
・Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and Lease Contract with
New Tenants・Notice Concerning Revision to Forecasts for Operating Results and Distribution for the 17th Fiscal
Period Ended July 31, 2024 and Revision to Forecasts for Operating Results for the 18th Fiscal PeriodEnding January 31, 2025 and Forecasts for Operating Results and Distribution for the 19th Fiscal
Period Ending July 31, 2025

*SAR HP URL: https://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated August 19, 2024. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing of SAR,
and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, andwill not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offer ing
or sale of securities in the United States will be made in connection with the above -mentioned transactions. This press
release is not for publication, distribution, or release, directly or indirectly in or into the United States of America.

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