March 30, 2017
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: 03­5425­1340

Notice Concerning Debt Financing
Star Asia Investment Corporation (“SAR”) announces today it has decided on the execution of debt financing (the“Debt financing”), as described below.
1.

Details of Debt financing
Borrowing

Interest rateTerm(Note 1)

Short­term /Long­termLong­term

LenderSumitomo
Mitsui
BankingCorporationand Mizuho
Bank, Ltd.
A syndicateof lenders
with
Sumitomo
Mitsui
Banking
Corporationand Mizuho
Bank, Ltd. asarrangers

amount(Note 4)(million yen)

(Note 5)

1,680
(Note 3)

Base interest
rate +0.20%

2,400

Date of

Borrowingborrowing

methodBase interest
rate +0.45%
April 6,
2017

4,150

Base interest
rate +0.60%(Note 2)

Borrowingbased on theindividual
term loan
agreementplanned tobe dated
April 4, 2017
based on thebasic
agreement
dated April
15, 2016
assumingSumitomoMitsuiBankingCorporation
as an agent.

Maturity

Repayment

datemethod(Note 6)(Note 7)

Security

April 20, 2018
Installment
payment

October 20,2020

Lump sum

Unsecuredandunguaranteed

repayment on
April 20, 2022

maturity date

(Note 1) Short­term refers to borrowings due within one year, and long­term refers to borrowings due after one year.
(Note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Trust
Bank, Limited, Aozora Bank, Ltd., Shinsei Bank, Limited, and Resona Bank, Limited.
(Note 3) For the anticipated balance of 1,680 million yen from Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd., weexpect to repay the entire amount through funds raised assuming that all the investment units of the investment units
to be newly issued in the third­party allotment (Please refer to “Notice Concerning Issuance of New Investment Unitsand Secondary Offering of Investment Units” announced on March 17, 2017; the “Third­Party Allotment.”) related tothe offering have been issued, consideration for the transfer of 51% quasi­co­ownership interest of beneficiaryinterests in trust related to Oak Minami­Azabu Building scheduled in the 4th fiscal period (Please refer to “NoticeConcerning Acquisition and Transfer of Real Estate Beneficiary Interests in Trust” announced on February 28, 2017.)
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to thedecision on the execution of debt financing, 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. Thesecurities referred to herein have not been, and will not be registered under the United States Securities Actof 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 offering or sale of securities in theUnited States will be made in connection with the above­mentioned transactions. This press release is not for
publication, distribution or release, directly or indirectly in or into the United States of America.

1and consumption tax refund expected to be received in the 4th fiscal period. Note that, as the number of issued units
in the actual Third­Party Allotment and the amount of the consumption tax refund are both subject to change, it ispossible that these amounts may not fully cover repayment of the entire amount of borrowings noted above.
(Note 4) Financing fees and other charges to the lenders are not included.
(Note 5) The first interest payment date is May 22, 2017 and following interest payment dates are 20th of every month
thereafter and the principal repayment date. However, if such date is not a business day, the immediately following
business day, or if such date falls on the next month, the immediately preceding business day are respectively set as
the interest payment date. For borrowings with floating interest rates, the base interest rate applicable to the interest
rate calculation period and to be paid on each interest payment date is the one month interest rate of the Japanese
Yen TIBOR (Reuters page 17097) 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 two business days
immediately before each interest payment date (two business days before the drawdown date for the first interest
payment date). However, in case the concerned interest rate is not announced for some reasons, the interest rate(annual rate) determined reasonably by the agent shall be used, or in case the period corresponding to the firstinterest rate calculation period or the interest rate calculation period does not exist, base rate corresponding to theconcerned period calculated based on methods determined in the contracts shall be used. The first interest rate
calculation period is from April 6, 2017 to May 22, 2017. For Japanese Yen TIBOR announced by the JBA TIBOR
Administration which is used as the base interest rate, please check with the JBA TIBOR Administration website(http://www.jbatibor.or.jp/english/rate/).
(Note 6) If a repayment date is not a business day, repayment shall be made on the next business day; however, if such date falls
on the next month, repayment shall be made on the immediately preceding business day.
(Note 7) If certain requirements, such as advance notification in writing by SAR, are met during the period after implementing
the Debt financing and by the maturity date, SAR is eligible to repay the borrowed amounts either in whole or in partprior to the maturity date.

2. Reasons for Debt financing
To be allocated for a part of the acquisition of real estate beneficiary interests in trust (Number of property: 6, total
anticipated acquisition price: 16,547 million yen) described in “Notice Concerning Acquisition of Real Estate
Beneficiary Interests in Trust and Lease Contract with New Tenants” announced on March 17, 2017 and partial
payment of acquisition­related expenses.
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
8,230 million yen in total(2) Specific use of funds to be procured and schedule of expenditureSpecific use of funds
To be allocated for a part of the acquisition of real estate beneficiaryinterests in trust (Number of property: 6, total anticipatedacquisition price: 16,547 million yen) and partial payment ofacquisition­related expenses stated in Section 2. above.

Note:

AmountSchedule ofexpenditure

8,230 million yen

April 6, 2017

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to thedecision on the execution of debt financing, 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. The
securities referred to herein have not been, and will not be registered under the United States Securities Actof 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 offering or sale of securities in theUnited States will be made in connection with the above­mentioned transactions. This press release is not forpublication, distribution or release, directly or indirectly in or into the United States of America.

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4. Status of Loans etc. after Debt financing

Short­term borrowingsLong­term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and investment corporation bonds
Other interest­bearing liabilities
Total interest­bearing liabilities

Before theBorrowing
1,600
29,20030,800­30,800­30,800(Unit: million yen)
After theChange
Borrowing
3,280
1,680
35,7506,550
39,0308,230­­
39,0308,230­­
39,0308,230

5. Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks pertaining to the repayment of the Debt financing, etc., there are no changes to “PartII. Reference Information /II. Information Supplementary to Reference Documents/3. Investment Risks” stated in
the Securities Registration Statement submitted on March 17, 2017.
* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of theMinistry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publicationsof the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia­reit.com/en/

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to thedecision on the execution of debt financing, and not for the purpose of soliciting any investment, within oroutside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The
securities referred to herein have not been, and will not be registered under the United States Securities Actof 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 offering or sale of securities in theUnited States will be made in connection with the above­mentioned transactions. This press release is not forpublication, distribution or release, directly or indirectly in or into the United States of America.

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