August 16, 2022
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 (Change to Borrowing Amount)and Establishment of Interest Rate SwapStar Asia Investment Corporation (“SAR”) announces today that with respect to the debt financing announced
in the press release dated August 1, 2022 entitled “Notice Concerning Debt Financing (Green Loan)” (hereinafterreferred to as the “Debt Financing”), it has deiced to change the borrowing amount as described below.
Furthermore, with respect to such borrowing, it has been decided to establish the interest rate swap
(hereinafter referred to as “Interest Rate Swap”) as described below.
1.

Change to the Debt Financing(1) Increase in the borrowing amount
Regarding the Debt Financing announced in the “Notice Concerning Debt Financing (Green Loan)” dated
August 1, 2022, the total borrowing amount will be increased from JPY 7,000 million yen to JPY 7,200million yen.
(2)

Reason for the Change
It has been decided to increase the borrowing amount, because the amount procured by the issue ofnew investment units as announced in the “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” dated August 1, 2022 has been fixed, and such amount was lower
than the initially expected amount.

(3)

Details of the Debt Financing after the Change
There are no changes other than the increase in the borrowing amount.
Method of Borrowing: Borrowing under individual term loan agreement (Expected contract date:August 16, 2022) from the lenders described below.

1Term(Note 1)

Long-termborrowings(Note 1)

Lenders

Borrowingamount(millionyen)

A syndicate oflenders with
Sumitomo
Mitsui Banking
Corporationand Mizuho
Bank, Ltd. asarrangers(Green Loan)(Note 2)

7,200

Interest rate
(Note 3)

FloatingBase
interestrate(JPY 3M
TIBOR)

Date ofborrowing

August 18,2022

Principal
Repayment Date(Note 5)

August 31,2027+0.60%(Note 4)

Repayment
methodSecurity

Lump sum
repaymentonprincipal
repaymentdate(Note 6)

UnsecuredandUnguaranteed“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 one year or more. The same applies below.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Shinsei Bank,
Limited., Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited., and The Chiba Bank,Ltd.

(Note 3)Financing fees and other charges payable to the lenders are not included.

(Note 4)

The first interest payment date is August 31, 2022, 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,the interest payment date shall be the immediately preceding business day. For borrowings with floatinginterest rates, the base interest rate applicable to the calculation period for payment of interest on any given
interest payment date is the three-month interest rate 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. andas 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 an interest calculation period, the base rate will becalculated 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 base interest rate, please confirm on the JBA TIBOR
Administration website (https://www.jbatibor.or.jp/english/). SAR will fix interest rate payments by interest rate
swap agreements for the Debt Financing.

(Note 5)

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 6)

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 inpart prior to maturity.

(Note 7)

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

(4) Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditurei. Amount of funds to be procured
7,200 million yen in total

2ii.

(5)

Specific use of funds to be procured and schedule of expenditures
There are no changes other than the increase in the borrowing amount.
Specific use of funds
AmountTo be appropriated to a part of the purchaseproceeds (expected purchase price of JPY 9,500
million yen) for the real estate trust beneficial
interest for 1 property expected to be acquired asannounced in the “Notice Concerning Acquisition
7,200 million yenof Real Estate Beneficiary Interests in Trust andentering into Lease Contracts” dated on August 1,2022, and the payment of related miscellaneous
expenses.

Schedule of Expenditure

August 18, 2022

Status of Borrowings etc. after the Debt Financing(Unit: million yen)
Before theDebt Financing
Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total of borrowings andinvestment corporation bonds

2.

After theDebt Financing

Increase/Decrease－
88,64088,6401,000－
95,84095,8401,000－
7,200
7,200

89,64095,8407,200－

Establishment of Interest Rate Swap
(1) Reason for establishment
The interest rate swap has been established in order to fix interest rate payments and hedge interest
rate fluctuation risks pertaining to the borrowing under an individual term loan agreement concluded on
August 16, 2022 as described above under “1. Change to the Debt Financing (3) Details of the Debt
Financing after the Change.”(2) Details of interest rate swap agreement
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
7,200 million yen
Interest rate (Note)
Fixed interest rate payable: 0.27215%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement dateAugust 18, 2022
Termination dateAugust 31, 2027
Interest payment dates
The first interest payment date shall be August 31, 2022, and subsequently
every 3 months at the end of the month.
(Note) Given the establishment of the Interest Rate Swap, the interest rate for the long-term borrowing will
be effectively fixed at 0.87215 %.

3.

Future outlook
The impact of the change to the Debt Financing and establishment of the Interest Rate Swap on SAR’s
operating results is immaterial, and there are no changes to the forecasts of operating results for the fiscal
period ending January 31, 2023 (August 1, 2022 to January 31, 2023) and the fiscal period ending July 31,2023 (February 1, 2023 to July 31, 2023) which were announced by SAR in the “Notice Concerning Revision3

to Forecasts for Operating Results for the 14th Fiscal Period Ending January 31, 2023 and Forecasts forOperating Results and Distribution for the 15th Fiscal Period Ending July 31, 2023” on August 1, 2022. The
brief report on closing of accounts for the fiscal year ended July 31, 2022 (February 1, 2022 to July 31, 2022)
is expected to be announced on September 13, 2022.
4.

Other matters necessary for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to the change to the Debt Financing, there are no changes to“Part II. Reference Information / II. Information Supplementary to Reference Documents / 3. Investment
Risks” stated in the Securities Registration Statement (Japanese only) submitted on August 1, 2022.

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

This is an English translation of the announcement in Japanese dated August 16, 2022. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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