August 6, 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

Star Asia Announces Preferential Negotiation Rights for the Acquisition of Four Additional Assets
Star Asia Investment Corporation (“SAR”), in order to secure assets for future growth, has entered into
agreements for preferential negotiation rights with Star Asia Sogo Kaihatsu Co., Ltd. which is a member of theSponsor Group (as defined below) as well as with the limited liability companies (Godo Kaisha) which belong to
the Sponsor Group. The 4 properties include the following: “(Tentative Name) Hakata-ku Hataka-eki Minami
3-Chome Office Project” (office), “URBAN CENTER MIDOSUJI” (office), “Nishi-Ikebukuro 1 Chome Building”(commercial facility), and “Chrysantheme-ichigao” (residence) (hereinafter, to be individually referred to as the“Relevant Property”, and collectively referred to as “the Four Properties”). Details are as follows.
1.

Reason for Signing of the Agreements on Preferential Negotiation Rights
SAR continues to maintain its external growth objective of “asset size of JPY 200 billion by Year 2020” and has
expanded its asset size by 1.6 times since commencing operations. SAR has grown from JPY 61.4 billion at thetime of listing to JPY 102.3 billion (as of today), as a result of strong support from the Sponsor Group.
SAR has recently newly entered into agreements for preferential negotiation rights with the Sponsor Group(Note1) for the Four Properties (2 office property, 1 commercial facility property, and 1 residential property). SAR
believes that this is an additional powerful step forward to secure future external growth and achieving its asset
size objective. Furthermore, the acquisition of such properties in the future is expected to improve the stability,
diversification as well as the continued growth in profitability of the portfolio.
Furthermore, SAR has already secured preferential negotiation rights for another 6 properties in addition to
the Four Properties (1 office property, 3 residential properties, and 2 student accommodation properties). As aresult, SAR now holds preferential negotiation rights for a total of 10 properties (the total value of thepreferential negotiation prices or appraisal values etc. totals approximately JPY 31.2 billion (Note2)).
SAR will aim to achieve its external growth objective by utilizing the preferential negotiation rights for the 10
properties and by continuing to work closely with Star Asia Group going forward to maximize value for all
unitholders.
(Note 1) The Sponsor Group means Star Asia Management Limited, Star Asia Management Japan Limited, Star Asia AssetManagement 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
minority investments) 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) that own or
acquire investment units of SAR / investment vehicles relating with SAR. The same applies below.
(Note 2) For definitions of the preferential negotiation prices etc. and appraisal values etc. and details of the total value,1

please refer to section “4. Preferential Negotiation Rights held by SAR” below.

2.

Summary of the agreements on preferential negotiation rights with respect to the Four Properties(1) (Tentative Name) Hakata-ku Hataka-eki Minami 3-Chome Office ProjectCounterparty
Star Asia Sogo Kaihatsu Co., Ltd. (Note1)
Major rights given
SAR is given the right to receive information on the sale of the Property ahead of any
third party from the counterparty during the below-specified Preferential
Negotiation Period. If SAR wishes to acquire the Property, the counterparty is
obligated to negotiate with SAR in good faith to agree on basic terms and conditions
on the sale.
The Property(Tentative Name) Hakata-ku Hataka-eki Minami 3-Chome Office ProjectPreferential
From the day on which Agreement is entered into through the corresponding day of
Negotiation Period
the 12th month after the date
Scheduled completion September 2020 (Note2)
of construction of theProperty(Note1) Star Asia Sogo Kaihatsu Co., Ltd. belongs to the Star Asia Group and functions as the sponsors’ investment arm forJapanese real estate.
(Note2) Scheduled completion of construction of the property as of this moment, subject to change depending on the
progress of the plan.

(2) URBEN CENTER MIDOSUJI
Counterparty
GK RS
Major rights given
SAR is given the right to receive information on the sale of the Property ahead of any
third party from the counterparty during the below-specified Preferential
Negotiation Period. If SAR wishes to acquire the Property, the counterparty is
obligated to negotiate with SAR in good faith to agree on basic terms and conditions
on the sale.
The Property
URBEN CENTER MIDOSUJI(3) Nishi-Ikebukuro 1 Chome BuildingCounterparty
GK Contender
Major rights given
SAR is given the right to receive information on the sale of the Property ahead of any
third party from the counterparty during the below-specified Preferential
Negotiation Period. If SAR wishes to acquire the Property, the counterparty is
obligated to negotiate with SAR in good faith to agree on basic terms and conditions
on the sale.
The Property
Nishi-Ikebukuro 1 Chome Building
Desired purchase price 3,340,000,000 yen (excluding consumption tax and local consumption tax)(4) Chrysantheme-ichigao
Counterparty
Star Asia Sogo Kaihatsu Co., Ltd.
Major rights given
The counterparty is expected to acquire the Relevant Property by the end of March
2020, and in the case where the counterparty commences activities towards sale of
the Relevant Party during the below-specified preferential negotiation period, SAR isgiven the right to receive information regarding the assignment by the counterpartyof its status as purchaser under the sale and purchase agreement ahead of any third

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The Property✓✓✓

party. If SAR wishes to acquire the Property, the counterparty is obligated tonegotiate with SAR in good faith to agree on basic terms and conditions of the sale.
Chrysantheme-ichigao

The date of signing of the agreements on preferential negotiation rights with respect to the Four
Properties is today (August 6, 2019), and of such properties, the preferential negotiation period(subject period) for (2) URBAN CENTER MIDOSUJI, (3) Nishi-Ikebukuro 1 Chome Building, and (4)Chrysantheme-ichigao begins from today and ends on the corresponding day which is 12 months fromtoday. The preferential negotiation period (subject period) for (1) (Tentative Name) Hakata-ku
Hataka-eki Minami 3-Chome Office Project shall begin on the construction completion date and end
on the corresponding day which is 12 months from the construction completion date.
When deciding to acquire the Four Properties, it is necessary for Star Asia Investment Management Co.,
Ltd. to take necessary procedures including conducting due diligence which includes obtaining
real-estate appraisals, and SAR has no obligation to acquire the Four Properties.
Upon entering into the agreements on preferential negotiation rights, SAR shall not pay any
consideration to the counterparties.

3.

General Description of the Four Properties(1) (Tentative Name) Hakata-ku Hataka-eki Minami 3-Chome Office Project
Name of the Property(Tentative Name) Hakata-ku Hataka-eki Minami 3-Chome Office Project
Address
Minami 3-Chome 6, Hakata-eki, Hakata-ku, Fukuoka-shi, Fukuoka Prefecture (lotnumber)Access from nearby
Approximately a 9-minute walk from “Higashi-hie” Station on the Subway Kuko Linetrain stations
Approximately an 11-minute walk from “Hakata” Station on the Sanyo Shinkansen
Line
Asset type
OfficeSite area
657.42 m2 (Note 1)
Total floor area
3,662.84 m2 (Note 2)
Structure
Steel-framed structure, 8 floors above ground (Note 2)/ Number of Stories
Planned completion
September, 2020 (Note 2)
Features
The Relevant Property is an office building located within walking distance from
Hakata Station, and a 9-minute walk from “Higashi-hie” station on the Fukuoka City
Subway Kuko Line which is 1 station away from Fukuoka Airport.
The Hakata area is the center of business within the Kita-Kyushu region, where officedemand is tight and there is strong demand for leasing of newly-built offices, and it isanticipated that the Relevant Property will be profitable and competitive in themarket.
The Relevant Property is situated on a corner lot and faces two roads, and theexternal walls give a thick and massive impression due to the curtain wall
specifications. Furthermore, the rentable area of the standard floor exceeds 100
tsubo, which is very rare, and the building allows for flexible dividing of the floors.
Construction is planned to appeal to tenants in a wide range of businesses, targeting
both local companies as well as branch offices in the Kyushu area.
(Note 1)Site area is based on the lot plan dated May 8, 2019.

(Note 2)

Figures shown are current plans and subject to change until completion.

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(2) URBAN CENTER MIDOSUJI
Name of the Property
URBAN CENTER MIDOSUJI
Address
4-3-5 Awaji-cho, Osaka-shi, Osaka Prefecture (residence indication)
Access from nearby
Approximately a 4-minute walk from “Honmachi” Station on the Osaka Metro
train stations
Midosuji Line, Yotsubashi Line, and Chuo Line.
Approximately a 5-minute walk from “Yodoyabashi” Station on the Osaka Metro
Midosuji Line and Keihan Main Line.
Asset type
OfficeSite area
392.38 m2 (Note)
Total floor area
2,291.40 m2 (Note)
Structure
Steel-framed reinforced concrete (SRC) structure, 11 floors above ground.
/ Number of stories
Completion
April, 2019
Features
The Relevant Property is an office building located at approximately a 4-minute walkfrom “Honmachi” Station and approximately a 5-minute walk from “Yodoyabashi”
Station on the Osaka Metro lines. Also, the Relevant Property is in a convenientbusiness area, as it can access “Umeda” Station, the largest downtown area in thewestern Japan region, in approximately 2 minutes, and “Shin-Osaka” Station inapproximately 9 minutes by using the Shinkansen bullet train, by changing at“Yodoyabashi” Station.
The Relevant Property’s construction was completed in April 2019, and are newly
built middle size offices which are rare in the Osaka area. The external walls are
made of glass curtain walls which give an open atmosphere inside the offices. It has 2
elevators installed which is rare for a middle size property, and given its high spec
facilities such as individual air-conditioning system, security system and OA facilities,
it will have high appeal.
(Note)

Site area is based on information from the real estate registry.

(3) Nishi-Ikebukuro 1 Chome Building
Name of the Property
Nishi-Ikebukuro 1 Chome Building
Address
1-33-2 Nishi-ikebukuro, Toshima-ku, Tokyo Prefecture (residence indication)
Access from nearby
Approximately a 3-minute walk from “Ikebukuro” station various JR and Tokyo Metro
train stationslines.
Asset type
RetailSite area
264.15 m2 (Note)
Total floor area
1,497.45 m2 (Note)
Structure
Steel-framed reinforced concrete (SRC) structure, flat roof, 2 floors underground plus
/ Number of stories
8 floors above ground (Note)
Completion
November 20, 1992
Features
The Relevant Property is a commercial building located at approximately a 3-minute
walk from “Ikebukuro” Station on the JR lines and Tokyo Metro Lines. “Ikebukuro”
Station is a terminal station where 8 train lines cross over, including Tobu Railways
and Seibu Railways. Ikebukuro is a complex which has businesses, entertainment,
and sightseeing spots for foreigners traveling from abroad, which have generated an
extremely busy commercial district. The Relevant Property is located near the westside of the station where a redevelopment project is being planned, and it is an area
which is expected to prosper as a commercial area in the future as well.

4

The Relevant Property is fully leased to a single-tenant entertainment company, andis expected to bring stability of income.
(Note)

Based on information from the real estate registry.

(4) Chrysantheme-ichigao
Name of the Property
Chrysantheme-ichigao
Address1170-1 Ichigao-cho, Aoba-ku, Yokohama-shi, Kanagawa Prefecture (residence
indication)
Access from nearby
Approximately a 3-minute walk from “Ichigao” Station on the Den-en-toshi Linetrain stations
Asset type
Residence
Site area
1,758.84 m2 (Note)
Total floor area
5,243.85 m2 (Note)
Structure
Reinforced Concrete (RC) structure, flat roof, 1 floor underground, 8 floors above/ Number of stories
ground (Note)
Completion
July 10, 1998
Features
The Relevant Property is located approximately a 3-minute walk from “Ichigao”
station on the Den-en-toshi Line, and is a family type apartment building consistingof 62 housing units in total, which are mainly 3LDKs. “Ichigao” station has goodaccess to main areas of central Tokyo, as “Shibuya” station is approximately 38
minutes away and also “Otemachi” Station can be accessed in approximately 1 hour
due to mutual sharing of tracks with the Hanzomon Line. Surrounding the Relevant
Property, there are administrative agencies such as the Aoba Ward Office and publichall, and there are also many parks and pedestrian paths etc., and convenient living
facilities are gathered in front of the station, and it is a highly convenient residential
area for living.
The Relevant Property is a property which has high appeal to families who tend toaspire for residential areas which combine convenience in living and naturalenvironment.
(Note)

4.

Based on information from the real estate registry.

Preferential Negotiation Rights held by SAR
As of today, SAR has entered into agreements on preferential negotiation rights for acquiring properties,
with respect to the following 10 properties in total which include the Four Properties.
Completion/No.

Name of the Property

Asset Type

Location

Value Etc.

Plannedcompletion

1
2

OHA Building
Nishi-Ikebukuro 1 Chome
Building

OfficeRetail3

Urban Park Mitsuike Koen

Residential

4

Urban Park Tokiwadai Koen

Residential

5

Chrysantheme-ichigao

Residential

Tachikawa-shi,
Tokyo
Toshima-ku,
Tokyo
Yokohama-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Yokohama-shi,
Kanagawa

5

May 1990
Total amount of thepreferential

November 1992

negotiation prices
etc.

March 1992

13.6
Billion yen

February 1994

(Note 1)
July 1998

Purpose-built
6

HAKUSAN HOUSE

student
accommodation
Purpose-built

7

Project Shimotakaido

student
accommodation

8

Project Nishi-sugamo

Residential(Tentative Name) Hakata-ku
9

Hataka-eki Minami

Office3-Chome Office Project10(Note 1)URBAN CENTER MIDOSUJI

OfficeBunkyo-ku,

February 2018

Tokyo
Suginami-ku,
Tokyo
Kita-ku, Tokyo
Fukuoka-shi,

Total amount of theappraisal values etc.

December 2019(planned)

17.6

April 2020

Billion yen(planned)(Note 2)

Fukuoka
Osaka-shi,
Osaka

September 2020
(planned)
April 2019

The total amount of the preferential negotiation prices etc. means the total amount of (1) if a preferential
negotiation price or desired purchase price is stated in the agreement on preferential negotiation rights, suchprice, and (2) if not stated, the scheduled purchase price at which Star Asia Group is expecting to purchase theproperty.

(Note 2)The total amount of the appraisal values etc. means the total amount of (1) if an appraisal value has beenobtained, such appraisal value, and (2) if not obtained, the scheduled price at which Star Asia Group is
expecting to acquire the property.

5.

Future Prospects
Signing of the above-mentioned agreements on preferential negotiation rights are not expected to have any
impact on the performance of SAR.

* SAR HP URL: http:/ / starasia-reit.com/ en/* Star Asia Group HP URL: http:/ / starasiamanagement.com/ en/* SAR official YouTube channel URL: https:/ / www.youtube.com/ channel/ UCYasJn4xrns2fhyZFKMAELw
This is an English translation of the announcement in Japanese dated August 6, 2019. However, no assurance or warranties
are given for the completeness or accuracy of this English translation.

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<Annex documents>

Photographs of properties and conceptual drawings
OHA Building

Urban Park Mitsuike Koen

Urban Park Tokiwadai Koen

Chrysantheme-ichigao

Nishi-Ikebukuro 1 Chome Building

HAKUSAN HOUSE

Project Shimotakaido

Project Nishi-sugamo

7(Note)

(Tentative Name) Hakata-ku Hataka-eki

URBAN CENTER MIDOSUJI

Minami 3-Chome Office Project(Note) Project Nishi-sugamo is the building surrounded by a red dotted line in the image above, however, it is conceptional drawing by theother operator in the project and may differ from actual interior after completion.

8