January 12, 2018
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 Execution of Agreement on Preferential Negotiation on HAKUSAN HOUSEStar Asia Investment Corporation (SAR) announced today that it executed an agreement onpreferential negotiation (AoPN) with GSA Star Asia Japan Limited (Note 1) on HAKUSAN HOUSE (theProperty), a student accommodation property currently under development by GSA Star Asia (GSA StarAsia) (Note 2). The agreement gives SAR a right of first look and negotiation rights to acquire the Property,
as described below:(Note 1)

GSA Star Asia Japan Limited is a 50/50 joint venture established by GSA Group (a global player in thestudent accommodation sector), and Star Asia Group. GSA Group has been engaged in student
accommodation development, management and operations globally for more than 10 years since it
launched its operations in London and Australia in 2007.

(Note 2)

GSA Star Asia is a wholly-owned subsidiary of GSA Star Asia Japan Limited. Based on its expectationthat the number of international students will increase going forward backed by the “Super GlobalUniversity” project promoted by the Japanese government, GSA Star Asia aims to develop, manage andoperate student accommodation properties for international students and Japanese students looking forinter-cultural exchange with international students.

1. Summary of the agreement on preferential negotiation
Counterparty
GSA Star Asia Japan Limited
Major rights given
SAR is given the right to receive information on the sale of the Property ahead of
any third party from GSA Star Asia Japan Limited during the below-specified
subject period. If SAR wishes to acquire the Property, GSA Star Asia Japan
Limited is obligated to negotiate with SAR in good faith to agree on basic terms
and conditions on the sale.
The Property
HAKUSAN HOUSE
Date of agreement
January 12, 2018
Subject Period
From the day on which the Property is completed through the corresponding day
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
the execution of agreement on preferential negotiation, 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 salein the United States. The securities referred to herein have not been, and will not be registered under theUnited 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
offering or sale of securities in the United States will be made in connection with the above-mentionedtransactions. 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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Scheduled completionof construction of theProperty
Otherof the 18th month after the completion
End of January, 2018 (scheduled)① GSA Star Asia Japan Limited gives investment advice to parties invested in
the special purpose company which will be the owner of the Property after thecompletion of construction, and sale of the Property shall, in principle, bebased on the investment advice of GSA Star Asia Japan Limited, provided
certain conditions are met.
② SAR’s decision to acquire the Property shall be made after necessary due
diligence, including appraisal of the property value, as well as due
procedures implemented by Star Asia Investment Management Co., Ltd. (theAsset Manager)③ The fact that SAR executed this AoPN shall not mean that SAR is obligatedto acquire the Property; therefore, SAR may decide not to acquire theProperty. Please note that SAR does not pay any consideration to GSA Star
Asia Japan Limited in connection with execution of this AoPN.
④ The fact that GSA Star Asia Japan Limited executed this AoPN shall notmean that it is obligated to sell the Property; therefore, it may decide not tosell the Property to SAR.

2.

Background
Through due negotiations, SAR executed this AoPN with GSA Star Asia Japan Limited in order tosecure an opportunity to acquire the Property, which SAR expects that it has growth potential andgenerates stable earnings going forward (further descriptions of the Property are provided in “3.
Detail of the Property” below)

3.

Details of the Property
Name of theHAKUSAN HOUSE
property
Address
4-33-14 Hakusan, Bunkyo-ku, Tokyo
Access fromApproximately 5-minute walk from Hakusan Station on Toei Mita Line, andnearby train
9-minute walk from Komagome Station on Tokyo Metro Namboku Linestations
Asset type
Residential
Site area
1,134.01 m2 (Note)
Total floor area
5,137.70 m2 (Note)
Structure
Steel structure (partly reinforced concrete) / 9 stories above the ground (Note)/Number ofstories
Completion
End of January, 2018 (scheduled)

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
the execution of agreement on preferential negotiation, 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 salein the United States. The securities referred to herein have not been, and will not be registered under theUnited 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
offering 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.

2Features

The Property is a student accommodation for international students, expected
to continue increasing going forward, as well as Japanese students who seekinter-cultural exchange with international students. The Property offers
features which are not well familiar in Japan from both infrastructure andservice standpoints. Its multi-purpose room, shared kitchen and dining space,etc. will provide residents ample opportunities to interact with one another,and the 24-hour alarm system will robustly ensure security. Also, special
events will be hosted for residents, and multi-language concierge services will
be offered.
Management and operation of the Property will be handled by GSA Star Asia
or through its subsidiary. GSA Group’s extensive expertise in the field ofstudent accommodation management and operations, accumulated throughits years of global operations, will be utilized for community development andresident services.
HAKUSAN HOUSE is located in an area, where there are several universities
actively accepting and educating international students, including theUniversity of Tokyo; therefore, SAR believes that HAKUSAN HOUSE willcontinue enjoying stable demand from students seeking accommodations.
Please refer to the exhibit for more details.

(Note) According to descriptions on the Notice of Verification of Building Construction.

4.

Future Outlook
Execution of this AoPN has no impact on SAR’s forecasts for operating results for the fiscal periodsending January 31, 2018 and July 31, 2018, and SAR’s forecasts for operating results and distribution
forecasts for the fiscal period ending January 31, 2019 announced today.
<Other Press Releases Announced as of 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 NewTenants- Notice Concerning Revision to Forecasts for Operating Results for the 4th Fiscal Period Ending January 31, 2018
and 5th Fiscal Period Ending July 31, 2018, and Forecasts for Operating Results and Distribution for the 6th
Fiscal Period Ending January 31, 2019- Notice Concerning Debt Financing- Supplemental Material on Press Releases (acquisition of properties through public offering) Announced as ofToday*This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press clubof the Ministry of Land, Infrastructure, Transport and Tourism, and the press club for construction
trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.
*Star Asia Investment Corporation website address: http://starasia-reit.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
the execution of agreement on preferential negotiation, 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 salein the United States. The securities referred to herein have not been, and will not be registered under theUnited 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
offering or sale of securities in the United States will be made in connection with the above-mentionedtransactions. 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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[ Exhibit ]■HAKUSAN HOUSE - exterior perspective
Image（Note）The image of HAKUSAN HOUSE may differ from actual building after completion.

■Nearby universities with many international students
Rikkyo Univ.
Ikebukuro campus

Toyo Univ.
Hakusan campus

Ochanomizu Univ.
Gakushuin
Japan Women’s Univ.
Univ.
Mejiro campus
IMejiro campus
Waseda Univ.
Waseda campus

UniversityTsukuba Univ.
Tokyo campus

HAKUSAN
HOUSE

UenoStation

The Univ. of Tokyo
Chuo Univ. Hongo campus
Ko-rakuen campus

Housei Univ.
Ichigaya campus

Meiji Univ.
Suruga-dai campus
Sensyu Univ.
Kanda campus

No. of international
students（note）

1

Waseda University

4,767

2

The University of Tokyo

3,260

3

Tokyo University of Social Welfare

3,000

4

Ritsumeikan Asia Pacific University

2,818

5

Japan University of Economics

2,708

6

University of Tsukuba

2,326

7

Osaka University

2,184(Source) IAJ japan Student Services Organization(Note) Number of International students for universities provided above is the total for all the campuses combined

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 tothe execution of agreement on preferential negotiation, and not for the purpose of soliciting anyinvestment, within or outside of Japan. Additionally, this press release is not an offer of securities for salein the United States. The securities referred to herein have not been, and will not be registered under theUnited 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
offering or sale of securities in the United States will be made in connection with the above-mentionedtransactions. 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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■HAKUSAN HOUSE- interior perspective

Premium Nest

Duo Nest

Share Nest

Kitchen SpaceStudy Living Room

Rooftop Terrace(Note)

Note:

The images above may differ from actual interior after completion of HAKUSAN HOUSE.

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
the execution of agreement on preferential negotiation, 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 salein the United States. The securities referred to herein have not been, and will not be registered under theUnited 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
offering or sale of securities in the United States will be made in connection with the above-mentionedtransactions. 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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