March 16, 2018
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 Establishment of Interest Rate Swaps
Star Asia Investment Corporation (SAR) announces today the establishment of interest rate swaps (the“Establishment of Interest Rate Swaps”) concerning a part of long-term borrowing among borrowings describedin “Notice Concerning Debt Financing” dated January 12, 2018, as described below. Moreover, please refer tothe press release mentioned above for the details of borrowing which the Establishment of Interest Rate Swaps
was made for.
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 January 31, 2018 as described in “2. Details of
the established swaps” below.
2. Details of the established swaps<Borrowings which interest rate swap agreements were concluded for>BorrowingamountInterest
Date of
Borrowing
Term
Lender(million
rateborrowing
methodyen)

Long-term
Borrowing(Note1)(Note 1)
(Note 2)

A syndicate oflenders with
Sumitomo
Mitsui Banking
Corporationand Mizuho
Bank, Ltd. asarrangers(Note 2)

4,690

Base
interest
rate +
0.60%

February 2,
2018

Borrowingbased onindividual
term loan
agreement
dated January
31, 2018
based onbasic
agreement
dated April
15, 2016
assuming
Sumitomo
MitsuiBankingCorporation
as agent

Maturity
dateRepayment
methodSecurity

February
20, 2023

Lump sumrepayment
on maturity
date

Unsecured
andunguaranteed

Long-term refers to borrowings due after one year.
The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, Aozora Bank, Ltd., Shinsei Bank, Limited, Resona Bank, Limited. , and The Bank of Fukuoka
Ltd.

1(1) Interest rate swap agreement in connection with Long-term Borrowing
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
4,690 million yen
Interest rate
Fixed interest rate payable: 0.13 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement date
March 20, 2018
Termination dateFebruary 20, 2023
Interest payment dates
The first interest payment will be April 20, 2018, and subsequent interest payments
will be the 20th of every month.
(Note 1) The interest rate for Long-term Borrowing will be effectively fixed at 0.73% with the conclusion of thisinterest rate swap agreement in connection with the Long-term Borrowing.
3. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information
In conjunction with the risks pertaining to the Early Repayment, etc. there are no changes to “Part II. Reference
Information /II. Information Supplementary to Reference Documents/3. Investment Risks, 3. Investment Risks”
stated in the Securities Registration Statement submitted on January 12, 2018.

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

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