January 24, 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:
Toru Sugihara
Director and CFO
TEL: +81-3-5425-1340

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

Details of the Debt Financing

Term

Short-term(Note 1)

LenderSumitomo Mitsui
BankingCorporation

Borrowingamount(million yen)

700

Interestrate(Note 2)(Note 3)

Baseinterest
rate+0.20%

Date ofborrowing

Borrowing
methodFebruary 1,
2019

Borrowingbased on theindividual termloan agreement
planned to bedated January
24, 2019 basedon the basic
agreement
dated April 15,
2016 between
Sumitomo
Mitsui Banking
Corporation as
an agent.

Maturitydate(Note 4)

Repayment
methodSecurity

April
2019

Lump sum
repayment
on maturity
date(Note5)

UnsecuredandUnguaranteed

22,(Note 1)

Short-term refers to borrowings due within one year.

(Note 2)Financing fees and other charges to the lenders are not included.

(Note 3)

The first interest payment date is February 20, 2019 and following interest payment dates are 20th of every
month thereafter and the principal repayment date (maturity 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 precedingbusiness day is respectively set as the interest payment date. For borrowings with floating interest rates, the baseinterest rate applicable to the calculation period for interest to be paid on each interest payment date is the one
month interest rate of the Japanese Yen TIBOR 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 date1

for the first interest payment date). However, in case the concerned interest rate is not announced for somereasons, the interest rate (annual rate) determined reasonably by the agent (Sumitomo Mitsui BankingCorporation) shall be used, or in case the period corresponding to the first interest rate calculation period or theinterest rate calculation period does not exist, base rate corresponding to the concerned period and calculated
based on methods determined in the contracts shall be used. 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(Note 4)

website (http://www.jbatibor.or.jp/english/rate/).
If a principal 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 5)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the maturity date, SAR is eligible to repay the borrowed amounts either in whole or in part prior
to the maturity date.

(Note 6)

Financial covenants, such as stipulating that certain financial figures should be maintained based on assets andliabilities, are expected to be set for the Debt Financing.

2.

Reasons for Debt Financing
To be allocated for a part of the acquisition price and acquisition-related expenses of real estate beneficiaryinterests in trust (Anticipated acquisition price: 1,020 million yen) described in “Notice Concerning
Acquisition of Real Estate Beneficiary Interests in Trust” announced today.

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
700million yen in total(2) Specific use of funds to be procured and schedule of expenditure

4.

Specific use of funds

AmountSchedule ofExpenditure

To be allocated for a part of the acquisition price andacquisition-related expenses of real estate beneficiaryinterests in trust (Anticipated acquisition price: 1,020 millionyen) stated in Section 2 above.

700
million yen

February 1,2019

Status of Loans etc. after Debt Financing

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds
Other interest-bearing liabilities
Total interest-bearing liabilities
5.

Before theBorrowing
460
51,88052,340―52,340―52,340(Unit: million yen)
After theChange
Borrowing
1,160
700
51,880―53,040700――
53,040700――
53,040700

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, there are no changes to“Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the semiannual securities
report (Japanese only) on October 30, 2018.

2* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

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