April 20, 2016
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: +81-3-5425-1340

Notice Concerning Execution of Debt Financing and Establishment of Interest Rate Swaps
Star Asia Investment Corporation (SAR) announces today that it has executed debt financing (the “Borrowings”)
and the establishment of interest rate swaps, as described below.
I. Borrowings
1. Details of Borrowings
Interest rate
Maturity
Repayment
Date of
Borrowingdate(Note 3)
methodSecurityborrowing
method(million yen)
(Note 4)(Note 6)(Note 7)
3,355
Base interest rate (JBA
April 20,
Short-term
1 month yen TIBOR)
2017+0.20%
7,300
Base interest rate (JBA
Borrowing
April 20,
A syndicate of
1 month yen TIBOR)
based on2018
lenders with
+0.30%
individual term
Sumitomo Mitsui
7,300
Base interest rate (JBA
Unsecuredloan agreement
Lump sum
April 20,
Banking
April 20,
1 month yen TIBOR)
concluded withrepayment onandCorporation and20162019+0.40% (Note 5)
lenders in thematurity date unguaranteed
Long-term Mizuho Bank, Ltd.
left column
7,300
Base interest rate (JBA
as arrangers
April 20,
dated April 15,
1 month yen TIBOR)(Note 2)2020
2016
+0.50% (Note 5)
7,300
Base interest rate (JBA
April 20,
1 month yen TIBOR)
2021+0.60% (Note 5)(Note 1) Short-term refers to borrowing due within one year, and long-term refers to borrowing due within one year or more.
The same applies hereinafter for short-term borrowings and long-term borrowings.
(Note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui TrustBank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Aozora Bank, Ltd., Shinsei Bank, Ltd. and Resona Bank, Ltd.
(Note 3) Financing fees and other charges to be paid to the lenders are not included.
(Note 4) The first interest payment date is May 20, 2016 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 date; or if such a date is in the next month, the immediately preceding business date. For borrowings withfloating interest rates, the base interest rate applicable to the calculation period for interest to be paid on each interest
payment date is the 1 month interest rate among 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. andclose to 11 a.m. as possible on the date two business days prior to the interest payment date immediately before
each interest payment date (the drawdown date for the first interest payment date). However, in case the concernedinterest rate is not announced for some reasons or in case the period corresponding to the interest rate calculation
period doesn’t exist, base rate corresponding to the concerned period and calculated based on methods determinedin the contracts will be used. Furthermore, the first interest rate calculation period is from April 20, 2016 to May 20,
Term(Note 1)

LenderBorrowingamountDisclaimer: This document is an English translation of a press release for public announcement concerning execution of debt financing andestablishment of interest rate swaps by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

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2016 and the base interest rate corresponding to the concerned period is 0.06000%. For the base interest rate
Japanese Yen TIBOR announced by the JBA TIBOR Administration, please check with the JBA TIBOR Administration
website (http://www.jbatibor.or.jp/english/rate/).
(Note 5) The interest rate for payment is fixed by interest rate swap agreements. For details, please refer to “II. Establishmentof Interest Rate Swaps” below.
(Note 6) If a repayment date is not a business day, repayment will be made on the next business day; provided, however, thatif such date falls in the next month, 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
borrowings indicated above and before the maturity date, SAR is eligible to repay the borrowed amounts either inwhole or in part prior to the maturity date. In addition, forced repayment prior to the maturity date might be madein certain cases.

2. Reason for the Debt Financing
To be allocated for partial repayment of existing borrowings and redemption of investment corporation bonds.
3. Total amount to be procured, use of funds and schedule of expenditure(1) Amount to be procured
32,555,000,000 yen in total(2) Specific use of funds to be procured
To be allocated for partial repayment of existing borrowings and redemption of investment corporation
bonds stated in “Chapter 3 Details of SAR, No. 5 Accounting situation of SAR, 2 Current situation of SAR, (2)Status of borrowings, 1) Status of borrowings and issuance of investment corporation bonds” of theSecurities Registration Statement submitted on March 16, 2016.
(3) Scheduled of expenditure
April 20, 2016
4. Status of Loans etc. after Borrowings(Unit: million yen)

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds
Other liabilities
Total liabilities

BeforeBorrowings
31,756－31,756
4,574
36,330－36,330

AfterBorrowings
3,35529,200
32,555

Change32,555(-28,401)
29,200799(-4,574)(-3,775)

32,555(-3,775)－－－

II. Establishment of Interest Rate Swaps
1. Reason for establishment
SAR intends to fix interest rate payments and hedge the risk of interest rate fluctuation pertaining to theborrowings under individual term loan agreements concluded on April 15, 2016 as described in “2. Details of theestablished swaps” below.

Disclaimer: This document is an English translation of a press release for public announcement concerning execution of debt financing andestablishment of interest rate swaps by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

22. Details of the established swaps< Borrowings through the conclusion of interest rate swap agreements>
Term

BorrowingamountLenderInterest rate(million yen)

7,300
Borrowing (1) A syndicate oflenders withSumitomo
Mitsui Banking
Corporation
Borrowing (2)and Mizuho
Bank, Ltd. asarrangers(Note 2)
Borrowing (3)Base interest
rate (JBA 1
month yen) +
0.40%

7,300

Date ofborrowing

Borrowing
methodBorrowingbased onindividual termloanagreement
concluded withthe lenders in
the left column
dated April 15,
2016

Maturitydate(Note 6)

Repayment
method(Note 7)

Security

April 20,2019Base interest
Lump sum
April
Unsecured andrate (JBA 1
April 20, repayment on
unguaranteed
20,2016month yen)2020
maturity date
+0.50%
7,300
Base interest
rate (JBA 1
April 20,month yen)2021
+0.60%(Note) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Aozora Bank, Ltd., Shinsei Bank, Ltd. and Resona
Bank, Ltd.

(1) Interest rate swap agreement in connection with Borrowing (1)Counterparty
Notional principal
Interest rate
Commencement dateTermination date
Interest payment dates

SMBC Nikko Securities, Inc.
7,300 million yen
Fixed interest rate payable: -0.03600%
Floating interest rate receivable: JBA 1 month yen TIBOR
April 20, 2016
April 20, 2019
The first interest payment will be May 20, 2016, and subsequentinterest payments will be the 20th of every month.

*The interest rate for Borrowing (1) will be effectively fixed at 0.36400% with the conclusion of this interest rate swapagreement.

(2) Interest rate swap agreement in connection with Borrowing (2)Counterparty
Notional principal
Interest rate
Commencement dateTermination date
Interest payment dates

SMBC Nikko Securities, Inc.
7,300 million yen
Fixed interest rate payable: -0.01700%
Floating interest rate receivable: JBA 1 month yen TIBOR
April 20, 2016
April 20, 2020
The first interest payment will be May 20, 2016, and subsequentinterest payments will be the 20th of every month.

*The interest rate for Borrowing (2) will be effectively fixed at 0.48300% with the conclusion of this interest rate swapagreement.

Disclaimer: This document is an English translation of a press release for public announcement concerning execution of debt financing andestablishment of interest rate swaps by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

3(3) Interest rate swap agreement in connection with Borrowing (3)Counterparty
Notional principal
Interest rate
Commencement dateTermination date
Interest payment dates

SMBC Nikko Securities, Inc.
7,300 million yen
Fixed interest rate payable: 0.02500%
Floating interest rate receivable: JBA 1 month yen TIBOR
April 20, 2016
April 20, 2021
The first interest payment will be May 20, 2016, and subsequentinterest payments will be the 20th of every month.

*The interest rate for Borrowing (3) will be effectively fixed at 0.62500% with the conclusion of this interest rate swapagreement.

III. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information
In conjunction with the risks as they chiefly pertain to the repayment of the funds, there are no changes to “Part2. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the Securities Registration Statement
submitted on March 16, 2016.

* 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://starasia-reit.com/en/

Disclaimer: This document is an English translation of a press release for public announcement concerning execution of debt financing andestablishment of interest rate swaps by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

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