April 23, 2021
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

Announcement of Signing of Preferential Negotiation Rights Agreement for the Acquisition of Assets
Star Asia Investment Corporation (“SAR”) announces today that it has entered in to a preferential negotiationrights agreement for “Rise”, a residential property located in Kawasaki-shi, Kanagawa Prefecture (the“Property”). Details are as follows.
1.

Reason for Signing of the Preferential Negotiation Rights Agreement
SAR has continued to expand its asset size based on external growth founded upon strong sponsor support
from Star Asia Group and also due to the merger with Sakura Sogo REIT Investment Corporation on August 1,
2020. Going forward, SAR will continue to secure opportunities for external growth, such as by accumulating
properties for which SAR has preferential negotiation rights, aiming to achieve the goal of asset size of JPY 300
billion which has been incorporated in the mid-term business plan.
The Property which is subject to the preferential negotiation rights agreement is a residential complex
targeting a wide range of residents from singles to DINKS and also families. It has maintained a high occupancy
rate due to the variety of floor plans offered as well as excellent traffic convenience for access to major business
districts in central Tokyo. If the Property is acquired, it is expected to contribute to the improved stability ofportfolio income.
Furthermore, SAR has already secured preferential negotiation rights for 8 properties (3 offices, 1 commercial
retail facility, 2 residences, and 2 purpose-built student accommodations) apart from the Property. The total
preferential negotiation price etc. or appraisal values etc. of the 9 properties including the Property isapproximately JPY27.7billion (see Note), and SAR will aim for further external growth by utilizing the preferential
negotiation rights for these 9 properties and also by continuing to collaborate with Star Asia Group going
forward.
(Note) Regarding the total value of the preferential negotiation prices etc. or the total value of appraisal values etc.,
please refer to the Section “4. Preferential Negotiation Rights held by SAR” below.

2.

Summary of the agreement on preferential negotiation rights with respect to the Property(1) RiseCounterparty
ML Estate Company, Limited
Description ofDuring the Subject Period (as defined below), in the case of commencing disposition
major rights
activities for the Property, the Counterparty shall first notify SAR of the fact that it willcommence such activities in writing in preference to third parties. When SAR receivessuch notice, it may consider whether or not it desires to acquire the Property, and if it1

desires to acquire it, it may consider the desired terms and conditions.
The Property
Rise
Signing Date
April 23, 2021
Subject Period
From April 23, 2021 to March 31, 2023 (Provided, however, that in the case where
either the contract counterparty or SAR requests, the parties may negotiate
extension of the term for up to 12 months.)✓ SAR has no obligation to acquire the Property. Upon deciding whether or not to purchase, it will benecessary for SAR to take necessary internal procedures such as conducting necessary due diligence
including obtaining real estate appraisals.
✓ Upon signing the preferential negotiation rights agreement, SAR will not pay any consideration to thecounterparty.
3.

General Description of the Property(1) RiseName of the Property Rise
Location
6-13-1 Futako, Takatsu-ku, Kawasaki-shi, Kanagawa (residence indication)
Nearest station
Approximate 9-minute walk from “Takatsu” station on the Tokyu Denentoshi Line
Approximate 15-minute walk from “Mizonokuchi” station on the JR Nambu Line andTokyu Denentoshi Line.
Asset typeResidence
Site area
2,624.51 ㎡ (Note)
Total floor space
5,029.52 ㎡ (Note)
Structure
Reinforced concrete structure, roofing, 1 basement floor, 5 stories (Note)/ Number of Stories
Dates of completion
Newly constructed on August 23, 1988
Building extended on March 9, 2007
Features
The Property is an apartment residence complex located within walking distance from“Takatsu” and “Mizonokuchi” stations as described above. The Tokyu Denentoshi Lineprovides good access to major business districts, taking approximately 19-minutes to“Shibuya” station and approximately 35 minutes to “Otemachi” station. Furthermore,around “Takatsu” station, there are living convenience facilities such as convenience
stores and super markets, and the area surrounding “Mizonokuchi” station is one of
the largest commercial districts of Kawasaki City, providing the Property with high life
convenience.
In 2007, the Property has implemented large-scale renovation and repair works
including in the exclusive use areas. There are a total of 76 residential units and has avariety of floor plans to accommodate varying life stages ranging from 36.55 ㎡ to91.42 ㎡ (mostly around 40 ㎡: 52 units), making the Property appealing to a wide
range of residents from singles and DINKS to families.
(Note) Figures are taken from the registry.

24.

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 9 properties in total which include the Property.
Completion/No.

Name of the Property

Asset Type

Location

Value Etc.

Plannedcompletion

1OHA Building

Tachikawa-shi,OfficeTokyo

Total amount of thepreferentialMay 1990

negotiation prices
2

Nishi-Ikebukuroetc.

Toshima-ku,

Retail1 Chome BuildingTokyo5090 million yen

November 1992

(Note 1)
Purpose-built
3

HAKUSAN HOUSE

Bunkyo-ku,

student
accommodation
Purpose-built

4

KAMIKITA HOUSE

Suginami-ku,

student

Tokyo

accommodation
56
7
89

URBAN CENTER HAKATAMIJAS Miyamaedaira WEST
MIJAS Miyamaedaira EAST
City Heim Kamezawa
Rise(the Property)

Fukuoka-shi,

OfficeURBAN CENTER MIDOSUJI

February 2018

TokyoFukuoka

December 2019
Total amount of theappraisal values etc.
(Note 2)

Osaka-shi,

OfficeOsaka

Residence

22,643million yen

June 2021

Kanagawa(planned)Tokyo
Kawasaki-shi,

Residence

April 2019

Kawasaki-shi,
Sumida-ku,

Residence

September 2020

Kanagawa

October 1997
August 1988

(Note 1) The “Total amount of the preferential negotiation prices etc.” means the total amount of the preferential
negotiation price as stated in the agreement on preferential negotiation rights.
(Note 2) The ‘Total amount of the appraisal values etc.” means the total of (i) the appraisal values in cases whereappraisals have been obtained, and (ii) the expected acquisition price by Star Asia Group in cases whereappraisals have not been obtained.

5.

Future Outlook
Signing of the above-mentioned agreement on preferential negotiation rights is not expected to have any
impact on the financial performance of SAR.

* Star Asia Investment Corporation website address:

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

This is an English translation of the announcement in Japanese dated April 23, 2021. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

3<Annex>
Photographs of properties and conceptual drawings
Rise (the Property)

OHA Building

URBAN CENTER MIDOSUJI

URBAN CENTER HAKATACity Heim Kamezawa

MIJAS Miyamaedaira WEST / MIJAS Miyamaedaira EAST(see Note)

Nishi0Ikebukuro 1 Chome Building

HAKUSAN HOUSE4

KAMIKITA HOUSE(Note) MIJAS Miyamaedaira WEST / MIJAS Miyamaedaira EAST which is subject to the preferential negotiation rights iscurrently under construction, and therefore a conceptual drawing has been inserted.

5