June 30, 2022
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

Notice concerning the Acquisition of Third-Party Evaluation for Green Finance Framework
Star Asia Investment Corporation (“SAR”) announces that it has obtained third-party evaluation for its “GreenFinance Framework (hereinafter referred to as “the Framework”)” which has been formulated towards theimplementation of Green Finance (see Note). Details are as follows.
(Note) Borrowings and issuance of investment corporate bonds for the purpose of appropriating the full amount of procured funds to theacquisition of green eligible assets or the refinancing of such assets is collectively referred to as “Green Finance”.

1.

Third-party evaluation obtained
SAR has obtained from Japan Credit Rating Agency, Ltd. (hereinafter referred to as “JCR”), a third-party
evaluating institution, a “Green 1 (F)” evaluation which is the highest rank under “JCR Green Finance
Framework Evaluation” (see Note), for the Framework described below.
(Note) “JCR Green Finance Framework Evaluation” is the third-party evaluation conducted by JCR regarding compatibility with the“Green Bond Principles”, “Green Loan Principles”, “Green Bond Guideline”, and “Green Loan and Sustainability Link Loan Guideline”.
Under this evaluation, JCR conducts the “Greenness Evaluation” which is an evaluation of whether a project described in the green
finance policy of an issuer or borrower’s green finance policy falls under a green project, and “Evaluation of Management, Operations,and Transparency” which is an evaluation of the issuer or borrower’s management and operations system and transparency, and thenas comprehensive evaluation based on these evaluations, JCR determines the JCR Green Finance Framework Evaluation.
This evaluation relates to the green finance policy of the issuer etc., and is not an evaluation of the greenness or management,operations, and transparency etc. the use of funds of individual projects conducted based on such policies. A separate evaluation process
is required in order to grant green finance evaluations for individual bonds and borrowings.

Details of the JCR Green Finance

Framework Evaluation is described in JCR’s website (https://www.jcr.co.jp/greenfinance/green/ .)2.

Purpose and Background of Establishment of the Framework
SAR and Star Asia Investment Management Co. Ltd. (the “Asset Management Company”) to which SAR
entrusts the management of its assets recognize the importance of serving its role in society as a listed realestate investment corporation, as well as maximizing unitholders’ interests. Under this recognition, upon
conducting our real estate investment and management business, in order to increase corporate value bypursuing long-term sustainability and to exert comprehensive competitiveness, we are giving maximum
consideration towards the Environment, Society, and Governance.
As a part of these efforts, from 2021 SAR has participated in the GRESB Real Estate Assessment(https://gresb.com/) and has obtained a “3-Star” GRESB rating. Furthermore, we have obtained a “Green Star”
designation which indicates that a participant excels under both the “Management Component” which1

evaluates policies and organizational systems for promoting ESG as well as the “Performance Component”
which evaluates environmental performance and initiatives etc. with tenants of held properties.
Going forward, we will continue to pursue maximization of unitholders’ interest and further promote ESG
related measures, and aim to further expand the investor base as well as secure stable methods to procure
funds. We have established a green finance framework and have obtained a third-party evaluation of theframework towards the implementation of green finance, aiming to further expand the investor base andsecure stable methods of funds procurement.
3.

Overview of “Green Finance Framework”
SAR, for the purpose of green finance issuances including green bonds, has established a Green Finance
Framework which is in line with the “Green Bond Principles 2021 (Note 1)”, “Green Bond Guideline (2020)(Note 2)”, “Green Loan Principles 2021 (Note 3)”, and “Green Loan and Sustainability Link Loan Guideline(2020) (Note 4)”.
(Note 1)“Green Bond Principles 2021” is a guideline related to the issuance of green bonds developed by the Green Bond
Principles Executive Committee, a private organization in charge of administration office functions of theInternational Capital Market Association (ICMA), hereinafter referred to as the “Green Bond Principles”.

(Note 2)“Green Bond Guideline (2020)” is a guideline formulated and announced by the Ministry of the Environment in March
2017, and thereafter revised in March 2020, for the purpose of further promoting green bonds in Japan, bypresenting specific examples of handlings and interpretations in the Japanese context, while taking into
consideration the consistency with the Green Bond Principles, providing a reference for market player practitioners
upon considering specific handlings related to green bonds, hereinafter referred to as the “Green Bond guideline”.

(Note 3)“Green Loan Principles 2021” is a loan guideline formulated by the Loan Market Association(LMA), Asia-Pacific Loan
Market Association (APLMA), and Loan Syndication and Trading Association (LSTA) which limits the use of funds tothe environmental field, hereinafter referred to as the “Green Loan Principles”.

(Note 4)“Green Loan and Sustainability Link Loan Guideline (2020)” is a guideline formulated and announced by the Ministryof the Environment in March 2020. For the purpose of further promoting green loans in Japan, the Guideline, while
taking into consideration consistency with the Green Loan Principles with respect to green loans, presents specificexamples of handlings and interpretations in the Japanese context, providing a reference for lenders, borrowers, andother market player practitioners upon considering specific handlings related to green loans.

(1) Use of Funds
Funds procured by green finance will be appropriated to either the acquisition of green buildings
which satisfy the following eligibility criteria-1 or conducting renovation works which satisfy theeligibility critera-2, or for refinancing either of the above.

(2) Eligibility Criteria
Eligibility Criteria-1

Properties which have obtained or renewed certification fromone of the following third-party certifying organizations, orotherwise intends to obtain or renew such certification in thefuture.
1. DBJ Green Building certification: 3-star, 4-star, or 5-star.
2. BELS assessment:：3-star, 4-star, or 5-star.
3. CASBEE certification: B+ rank, A rank, or S rank.

Eligibility Criteria-2

Facilities and equipment etc. renovation works which satisfy
one of the following criteria.
1. Renovation works which aim to improve one of theassessments or certifications under Eligibility Criteria-1 by22.

3.

at least one star or one rank.
Facilities and equipment renovation works to beconducted for managed real estate for the purpose of
making beneficial improvements from an environmental
perspective, such as energy efficiency, water consumption
capacity etc. (such works where usage volume reduction
effects of 30% or higher are anticipated compared tobefore).
Installation of or acquisition of equipment related torenewable energy.

(3) Project Selection Standards and ProcessAt the Asset Manager, the Finance Management Division selects the projects for which funds
procured by green finance is to be used, and the Sustainability Promotion Division deliberates andconfirms the compatibility with the eligibility criteria.
Thereafter, the implementation of green finance is approved by resolution in accordance with thedecision-making processes of the Asset Manager and SAR.

(4) Method of Funds Management
The procured funds are managed in cash and deposits or cash equivalents (certificates of depositsetc.) until such time they are appropriated towards the relevant project.
Even in the case where a green eligible asset for which SAR has procured funds is sold, or if forsome reason a green eligible asset fails to continue to satisfy the eligibility criteria, the total
outstanding amount of green finance will be managed so that it will not exceed the total of (i) and(ii) below, which shall be the upper limit of green finance procurement based on the Framework(hereinafter referred to as “Green Eligible Liabilities Upper Limit Amount”)(i) The liabilities amount calculated by multiplying the aggregated amount of the acquisitionprice of Eligibility Criteria-1 assets as of the end of the immediately preceding accounting
period by the LTV (see Note) as of the end of the immediately preceding accounting period.
(ii) Renovation work funds which satisfy Eligibility Criteria-2 (excluding renovation works funds
related to properties already sold).
(Note) LTV: total amount of interest-bearing debt ÷ total amount of assets(5)

Reporting(i) Reporting related to the Status of Appropriation of Funds
SAR, for so long as there are amounts outstanding of green finance procured based on theFramework exists, will continue to annually disclose the following items.
 The appropriation status of such procured funds (until such time the full amount of
the procured funds is appropriated to projects which meet the eligibility criteria.)
 Green finance outstanding amount and Green Eligible Liabilities Upper Limit Amount.
※ If for unavoidable reasons a part of the funds are note appropriated, such matter
will be disclosed on SAR’s website after receiving approval from the Asset Manager.
(ii) Impact Reporting
SAR will disclose the following indices on the SAR website to the extent practically possible, forso long as there are amounts outstanding of green finance procured based on the Framework.
<Data related to Projects which satisfy Eligibility Criteria-1>

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Energy consumption volume (MWh)Volume of greenhouse gas emissions (t-CO2)
Water usage volume (㎥)Acquisition status of environmental certifications (number of properties, gross floorarea, type of certification, certification ranking)<Data related to Projects which satisfy Eligibility Criteria-2>
 General description of the equipment etc. renovation works (Subject property,
construction works amount, timing of implementation, etc.)
 Of the following items, quantitative index (before and after the renovation) for which
reduction effects are anticipated.
・Energy consumption volume (MWh)・Volume of greenhouse gas emissions (t-CO2)・Water usage volume (㎥)*SAR HP URL: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated June 30, 2022. However, no assurance or warranties aregiven for the completeness or accuracy of this English translation.

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