June 12, 2019
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 Conclusion of Memorandum on the Change of Sponsor Support Agreement

Star Asia Investment Corporation (SAR) and Star Asia Investment Management Co., Ltd. (Asset Manager) announced
today that they concluded a memorandum on the change of the sponsor support agreement (including the changes
made afterwards, hereinafter referred as “Sponsor Support Agreement”) concluded with Star Asia Management
Limited (the Sponsor) in January 14th, 2016, as described below.
1. Content of the memorandum on the change of Sponsor Support Agreement
SAR and Asset Manager expect to gain support from KACHIKAIHATSU CO. LTD. (KACHIKAIHATSU) by positioning it asa member of the Sponsor Group in Sponsor Support Agreement, and have reached an agreement to change Sponsor
Support Agreement as a result of negotiation with the Sponsor. The underline indicates the change.
<Definition of sponsor group after the change>(i)Sponsor (Star Asia Management Limited)(ii) Star Asia Management Japan Ltd.
(iii) Star Asia Asset Management LLC(iv) Star Asia Group LLC(v) Star Asia Asset Advisors, Co. Ltd.
(vi) Star Asia Sogo Kaihatsu, Co. Ltd.
(vii) KACHIKAIHATSU CO. LTD.
(viii) Malcolm F. MacLean(ix) Taro Masuyama(ⅹ) Investment destination of funds (excluding minority investments) for which Malcolm F. MacLean
IV and Taro Masuyama make investment decisions (a) that are located in Japan and own oracquire investment assets such as real estates or investment vehicles or (b) that own or acquire
investment units of SAR / investment vehicles relating with SAR

12. Reasons for the conclusion of memorandum on the change of Sponsor Support Agreement
In order to expand functions with regards to investment in real estates in Japan, Star Asia Group (SAG) concluded“Capital and Business Alliance Agreement” (Alliance Agreement) with KACHIKAIHATSU in October 25th, 2018, thenthe fund managed by SAG acquired KACHIKAIHATSU’s shares through the third-party allocation of shares (due dateof payment: November 12th, 2018) and the share purchase from previous shareholders, and through the other thirdparty allocation of shares (due date of payment: March 29th, 2019). As a result, SAG holds 75.53% shares of
KACHIKAIHATSU, as of today. In addition, KACHIKAIHATSU and SAG also concluded “Comprehensive Agreement
Concerning Business Alliance” (Comprehensive Agreement) today.
KACHIKAIHATSU envisions a future business strategy mainly based on its abundant experiences and know-howswith regards to development, operation and building management of hotels which it owns. In addition,
KACHIKAIHATSU takes conclusion of Alliance Agreement as an opportunity to attempt to create a synergy-effect bymaking efficient use of several functions concerning real estate business which SAG has while reinforcing its
functions with regards to purchasing & selling, leasing, building management, brokerage and development of othertype assets in order to contribute to the business strategy mentioned above further.
On the other hand, SAG believes that they can facilitate investment in operational assets (*) because
Comprehensive Agreement enables SAG to incorporate functions of hotels’ development / operation / building
management, which KACHIKAIHATSU has, in the inside of the group.
SAR and Asset Manager consider that if they can receive information of assets which KACHIKAIHATSU develops
and assets which third-party intends to sell, such useful information will contribute to further SAR’s growth.
Therefore, we have concluded memorandum on the change of Sponsor Support Agreement, in order to set
KACHIKAIHATSU as the sponsor group.
SAR will use such functions reinforced by SAG to pursue more growth ever than before.
(*) Operational assets mean hotels and other type assets which so-called “operational abilities” have numerous
impacts on revenues, and not only a property itself but also a space plan / an operation ability with using the plan
effectively will be provided in a unified manner to customers.

3. Overview of KACHIKAIHATSU (As of June 12, 2019)Name
KACHIKAIHATSU CO. LTD. (listed on the second section of the Tokyo Stock Exchange,Code:3010)
Location
1-12-3, Iwamotocho, Chiyoda-ku, Tokyo, Japan
Representative
Shigeru Takakura
Main business
1. Hotel operation / management
description:
2. Purchasing & selling, leasing, management, brokerage and development of lands
and buildings / Investment in silent partnerships concerning lands and buildings
3. – 27. Omission
28. Relating business concerning each item mentioned above
Capital (*1)
JPY 7,884,980,010
Established
September 20th, 1912
Net Asset (*2)
JPY 1,549,081,000
Total Asset (*2)
JPY 7,280,527,000

2Major Shareholder
Star Asia Opportunity Ⅲ LP
Shareholding Ratio (*1)
75.53%
Relationship with SAR or Asset Manager
CapitalAlthough there is no direct capital relationship to report as of today, KACHIKAIHATSUrelationshipfalls under a subsidiary of Asset Manager’s parent company. In addition, the fundwhich belongs to Asset Manager’s parent company holds 75.53% of total number ofshares of KACHIKAIHATSU.
Personnel
relationship

There is no personnel relationship to report as of today, however, 3 members aresent to KACHIKAIHATSU by SAG. In addition, 5 members including these 3 are going totake posts of directors through an annual shareholders’ meeting of KACHIKAIHATSU,
according to information disclosed by KACHIKAIHATSU today.

Businessrelationship

There is no business relationship to report. With respect to BestWestern Tokyo
Nishikasai, BestWestern Yokohama and BestWestern Tokyo Nishikasai Grande(hereinafter referred as “3 BW Hotels”), however, KACHIKAIHATSU receives royalties,
which based on franchise contracts with Rembrandt Inn Co., LTD. (the operator of 3BW Hotels,hereinafter referred as “Rembrandt”), with regards to 3 BW Hotels as oftoday. In addition, SAR receives rents concerning 3 BW Hotels from Rembrandt basedon the lease agreement.

Related partyor noThe company falls under an interested party stipulated in the “Rules on Transactionswith Interested Parties” (the Rule) (*3) ,which is an internal rule and has beenformulated by Asset Manager and interested parties whose definition is on “Act on
Investment Trusts and Investment Corporations”, in order to avoid conflict of interest.
From now on, when deciding to conduct a deal, Asset Manager will execute it after adeliberation and a decision stipulated in the Rule(*1) The amount based on information disclosed by KACHIKAIHATSU after the third-party allocation of shares (duedate of payment: March 29th, 2019).
(*2) The amount based on information stated in KACHIKAIHATSU’s consolidated balance sheet with regards to thethird quarter accounting period of consolidation (period end date: December 31th, 2018), which is one of theparts that consists of the quarterly report submitted by KACHIKAIHATSU in February 13th, 2019.
(*3) As for the Rule, please see the below content: “4. Others, Content of change in rules concerning complianceand interested party, etc.”.
4. OtherContent of change in rules concerning compliance and interested party, etc.
The definition of “interested party” stipulated in the Rule, which is an internal rule of Asset Manager, isscheduled to be changed as follows. A change from the previous version are underlined.
<Definition of interest party after the change>(1) The Interested Parties of the Asset Manager as stipulated in Article 201, Paragraph 1 of the Act on
Investment Trusts and Investment Corporations(2) The shareholders and officers of the Asset Manager(3) Special purpose company, etc. (SPC) which executes an investment management agreement with theshareholders of the Asset Manager(4) SPCs in which majority of investment is made by the Asset Manager and the shareholders of the Asset3Manager(5) Star Asia Management Limited, Star Asia Management Japan Limited, Star Asia Asset Management LLC,Star Asia Group LLC, Star Asia Asset Advisors Co., Ltd., Star Asia Sogo Kaihatsu, Co. Ltd., KACHIKAIHATSU ,Malcolm F. MacLean IV, Taro Masuyama and investment destination of funds (excluding minorityinvestments) for which Malcolm F. MacLean IV and Taro Masuyama make investment decisions (a) thatare in Japan and own or acquire investment assets such as real estates or investment vehicles or (b) thatown or acquire investment units of SAR / investment vehicles relating with SAR.
Furthermore, required procedures of the above change will be conducted in accordance with the provisions of theFinancial Instruments and Exchange Act, Building Lots and Buildings Transaction Business Act and other applicable laws
and regulations.
* Star Asia Investment Corporation website address: http://starasiareit.com/en/4