October 14, 2020
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 Debt Financing (Refinancing)Star Asia Investment Corporation (“SAR”) announces today that it has decided to execute debt financing (the“Debt Financing”), as described below.
1.

Details of the Debt Financing

Term(Note 1)long-term
borrowing(1)

LenderA syndicate oflenders withSumitomo MitsuiBanking
Corporation andMizuho Bank, Ltd.
as arrangers (Note2)

Borrowingamount400
million yen

Interestrate(Note 4)(Note 5)

Baseinterestrate(JapaneseYen 1M
TIBOR）

Date ofborrowing

Borrowing method

October 20,
2020

Borrowing based on
the individual termloan agreement
expected to bedated October 16,
2020 based on thebasic agreement
dated July 29, 2020
with Sumitomo
Mitsui Banking
Corporation asagent.

+0.20%

1

Principal
Repayment Date(Note 6)

Repayment
methodSecurity

October29, 2021

Lump sum
repaymentonprincipalrepayment
date(Note7)

UnsecuredandUnguaranteedlong-termborrowing(2)(Note 1)

A syndicate oflenders withSumitomo MitsuiBanking
Corporation andMizuho Bank, Ltd.
as arrangers (Note3)

3,600
million yen

Baseinterest
rate(JapaneseYen 3M
TIBOR）

October 20,
2020+0.60%

Borrowing based on
the individual termloan agreement
expected to bedated October 16,
2020 based on thebasic agreement
dated July 29, 2020
with Sumitomo
Mitsui Banking
Corporation as anagent.

October
31, 2025

Lump sum
repayment
on principal
repayment(Note7)

UnsecuredandUnguaranteed

Long-term borrowings refers to borrowings where the period up to the repayment date is one year or more. The
same applies hereinafter for long-term borrowings.

(Note 2)The syndicate of lenders arranged by Resona Bank, Limited.

(Note 3)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited and Aozora Bank, Ltd.

(Note 4)

Financing fees and other charges payable to the lenders are not included.

(Note 5)

The first interest payment date for long-term borrowing (1) is October 30, 2020, and the first interest payment
date for long-term borrowing (2) is November 30, 2020. Thereafter, interest payment dates are the last day ofeach month and the principal repayment date for loans with base interest rates of JPY 1-month TIBOR, and thelast day of every 3 months and the principal repayment date for loans with base interest rates of JPY 3-month
TIBOR. However, if such date is a non-business day, the interest payment date shall be the immediately following
business day, or if such date falls in the next month, the interest payment date shall be the immediately precedingbusiness day. For borrowings with floating interest rates, the base interest rate applicable to the calculation period
for payment of interest on any given interest payment date is, for borrowings with a base interest rate of JPY 1month TIBOR, the one month interest rate, and for borrowings with a base interest rate of JPY 3-month TIBOR,
the three month interest rate, respectively, of the Japanese Yen TIBOR as 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. and as close to 11 a.m.
as possible, on the date which is two business days prior to the immediately preceding interest payment date (ortwo business days before the drawdown date for the first interest payment date). However, for the calculation ofinterest for the first interest period (and also including the final interest period with respect to long-termborrowing (2) of the Debt Financing), the higher interest rate of either (i) the rate of interest indicated for aninterest period which is nearest to and shorter than the relevant interest calculation period, and (ii) the rate ofinterest indicated for an interest period which is nearest to and longer than the relevant interest calculation period
shall be applied. For Japanese Yen TIBOR announced by the JBA TIBOR Administration which is used as the baseinterest rate, please check with the JBA TIBOR Administration website (http://www.jbatibor.or.jp/english/rate/).

(Note 6)

If a principal repayment date is not a business day, repayment shall be made on the next business day; however,
if such date falls on the next month, repayment shall be made on the immediately preceding business day.

(Note 7)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the principal repayment date, SAR may prepay the borrowed amounts either in whole or in partprior to maturity.

(Note 8)Certain financial covenants, such as stipulating that certain financial figures should be maintained based on assets
and liabilities, are expected to be established for the Debt Financing.

2.

Reasons for Debt Financing
The proceeds from the Debt Refinancing will be appropriated to repayment of a total of JPY 4,000 million
in debt, consisting of the JPY 2,400 million long-term loan referred to in the announcement on March 30,
2017 entitled “Notice Concerning Debt Financing” due for repayment on October 20, 2020, and the JPY 1,000

2million and JPY 600 million long-term loans referred to in the announcement on April 20, 2017 entitled“Notice Concerning Debt Financing and Repayment” due for repayment on October 20, 2020. (The Debt
Refinancing and the repayment of the existing loans shall hereinafter be referred to as the “Refinancing”.)
Of the Debt Financing, with respect to long-term borrowing (2), SAR intends to fix the interest payments byentering into interest rate swap agreements etc. in order to enhance stability of its financial base.
3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditures(1) Amount of funds to be procured
4,000 million yen in total(2) Specific use of funds to be procured and schedule of expenditures4.

Specific use of funds

Amountmillion yen

Schedule ofExpenditures

To be allocated to repayment of the Existing Loans stated inSection 2 above.

4,000

October 20,2020

Status of Borrowings etc. after the Refinancing

Short-term borrowings
Long-term borrowings
Total borrowings―
Total borrowings and Investment corporation bonds―
Total interest-bearing liabilities

Before theRefinancing
2,150
81,37083,520―83,520―83,520(Unit: million yen)
After theChange
Refinancing
2,150―
81,370―83,520―――83,520―――83,520―5.

Future outlook
The impact of the Refinancing on the operating results is insignificant, and the impact on the forecast ofoperating results for the fiscal period ending January 31, 2021 (August 1, 2020 to January 31, 2021) and thefiscal period ending July 31, 2021 (February 1, 2021 to July 31, 2021) which was announced by SAR in the“(REIT) Financial Report for Fiscal Period Ended July 31, 2020” dated September 14, 2020 is minimal, andthere are no changes to the forecast.

6.

Other matters required for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to the repayment of the Debt Financing, there are no changes to “Part
1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the securities report (Japaneseonly) submitted on April 28, 2020.

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

This is an English translation of the announcement in Japanese dated October 14, 2020. However, no assurance
or warranties are given for the completeness or accuracy of this English translation.

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